Crude oil futures traded higher following the geopolitical concerns over the developments in West Asia.
At 9.52 am on Wednesday, August Brent oil futures were at $84.19, up by 0.30 per cent, and July crude oil futures on WTI (West Texas Intermediate) were at $80.14 up by 0.39 per cent.
June crude oil futures were trading at ₹6,677 on Multi Commodity Exchange (MCX) during initial trading on Wednesday morning against the previous close of ₹6,637, up by 0.60 per cent, and July futures were trading at ₹6,663 against the previous close of ₹6,624, up by 0.59 per cent.
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Awaiting API report
Continued fighting in the West Asia region helped boost the price of crude oil. Though Israeli forces denied attacking a tent camp in Rafah on Tuesday, Gaza health officials said Israeli tank shelling had killed at least 21 people there.
ING Think’s Commodities Daily said tensions in West Asia have grown in recent days with developments between Israel and Hamas, while the Houthis have carried out another attack on a commercial vessel in the Red Sea.
The market is waiting for weekly petroleum status report by the American Petroleum Institute (API) and the US EIA (Energy Information Administration) later in the day. These reports will give an idea about the crude oil inventory levels in the US, which is a major consumer in the global market.
The start of summer season in the US is likely to boost the demand for crude oil in that market.
The market is also waiting for the outcome of the meeting of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, on June 2. This meeting assumes significance as the market feels that the group will extend the oil production output cut of 2.2 million barrels a day beyond June 30.
Two of the major producers in the OPEC+, Saudi Arabia and Russia, have opted for voluntary production output cuts to support oil prices.
Castorseed gains, turmeric loses
ING Think’s Commodities Daily said OPEC+ members are expected to fully rollover their additional voluntary cuts. High expectations of a full rollover mean that OPEC+ needs to ensure it does not disappoint the market, otherwise, it risks an aggressive pullback in prices, it said.
June zinc futures were trading at ₹278.60 on MCX during the initial hour of trading on Wednesday morning against the previous close of ₹276.65, up by 0.70 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June castorseed contracts were trading at ₹5,719 in the initial hour of trading on Wednesday morning against the previous close of ₹5700, up by 0.33 per cent.
June turmeric (farmer polished) futures were trading at ₹18,470 on NCDEX in the initial hour of trading on Wednesday morning against the previous close of ₹18,648, down by 0.95 per cent.