Crude oil up despite easing of tensions in West Asia

Crude oil futures traded higher on Tuesday morning despite easing of tension between Israel and Iran in West Asian region.

At 9.09 am on Tuesday, June Brent oil futures were at $87.43, up by 0.49 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $82.34, up by 0.54 per cent.

May crude oil futures were trading at ₹6871 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday morning against the previous close of ₹6834, up by 0.54 per cent, and June futures were trading at ₹6835 against the previous close of ₹6796, up by 0.57 per cent.

• Also Read: Crude oil down as fears of Israel-Iran tension dwindle

On Monday, market allayed fears of escalation in tension between Israel and Iran as the latter did not show any indication of immediate retaliation for Israeli attack on it on Friday. Further escalation in tension would have impacted the supplies of crude oil from West Asian region.

However, the markets moved up following the US approval of new sanctions on Iran. Market reports noted that new sanctions on Iran’s oil sector that broaden current sanctions against it. These sanctions include foreign ports, vessels and refineries that process or ship Iranian crude. It is to be noted here that Iran is one of the major producers of crude oil in the world market.

Added to this, market is also awaiting the release of US economic data during the week. These data points would help guide the US Federal Reserve outlook. Market is also expecting purchasing managers index data from some of the major economies. All these data points would give an indication about the demand outlook for crude oil in the world market.

• Also Read: Govt in a huddle over oil import options as Middle East tensions escalate

May natural gas futures were trading at ₹172.20 on MCX during the initial hour of trading on Tuesday morning against the previous close of ₹171.70, up by 0.29 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), May guarseed contracts were trading at ₹5518 in the initial hour of trading on Tuesday morning against the previous close of ₹5494, up by 0.44 per cent.

May cottonseed oilcake futures were trading at ₹2585 on NCDEX in the initial hour of trading on Tuesday morning against the previous close of ₹2581, up by 0.15 per cent.