Crude oil futures traded marginally higher on Tuesday morning after losing more than 6 per cent in Monday’s session. However, reports of the US planning to buy crude oil for its strategic petroleum reserve (SPR) offered some support.
At 9.54 am on Tuesday, January Brent oil futures were at $71.06, up by 0.08 per cent, and December crude oil futures on WTI (West Texas Intermediate) were at $67.43, up by 0.07 per cent.
November crude oil futures were trading at ₹5,686 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday against the previous close of ₹5,710, down by 0.42 per cent, and December futures were trading at ₹5,671 against the previous close of ₹5,699, down by 0.49 per cent.
The US government’s plans to refill its SPR offered some support to the market on Tuesday morning.
In their Commodities Daily feed, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said the US administration is looking to buy up to 3 million barrels of crude oil for the SPR for delivery at the Bryan Mound site from April-May 2025. The US Department of Energy has so far bought more than 55 million barrels of crude oil for the SPR at an average price of $76 a barrel, compared to the roughly $95 a barrel the DoE received from emergency sales in 2022.
Crude oil futures suffered a loss of more than 6 per cent in Monday’s session as Saturday’s retaliatory attack by Israel on Iran avoided the oil and nuclear facilities in that country. Israel targeted the military facilities in Iran. This eased concerns over a possible crude oil supply disruptions from the region. Iran is a major producer of crude oil in the global market.
ING Think’s Commodities Daily feed said the oil market came under significant pressure on Monday as the market digested Israel’s long-awaited response to Iran’s recent missile attack. ICE Brent settled more than 6 per cent lower on the day leaving it at just below $72 a barrel.
November copper futures were trading at ₹834.45 on MCX during the initial hour of trading on Tuesday against the previous close of ₹838.10, down by 0.44 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), December jeera contracts were trading at ₹24,245 in the initial hour of trading on Tuesday against the previous close of ₹24,200, up by 0.19 per cent.
November dhaniya futures were trading at ₹7,180 on NCDEX in the initial hour of trading on Tuesday against the previous close of ₹7,206, down by 0.36 per cent.
