traded lower on Monday morning as markets priced in a reduced risk of supply disruptions due to the potential secondary sanctions on Russian crude oil.
At 9.57 am on Monday, November Brent oil futures were at $67.18, down by 0.44 per cent, and October crude oil futures on WTI (West Texas Intermediate) were at $63.75, down by 0.41 per cent. September crude oil futures were trading at ₹5,634 on during the initial hour of trading on Monday against the previous close of ₹5,654, down by 0.35 per cent, and October futures were trading at ₹5,603 against the previous close of ₹5,619, down by 0.28 per cent.
In their Commodities Feed for Monday, Warren Patterson, Head of Commodities Strategy at ING Think, and Ewa Manthey, Commodities Strategist, said oil prices settled lower last week despite growing European calls for secondary sanctions on buyers of Russian oil and gas.
“The mild reaction may suggest the market is becoming increasingly numb towards sanction risks. And that to be effective, sanctions would likely need US backing. Up until now, the US has only imposed secondary tariffs on India for its purchases of Russian oil, not other key players like China. While some leaders in Europe are pushing for sanctions on buyers of Russian energy, the EU remains a significant buyer of natural gas from Russia, both in the form of pipeline gas via TurkStream, as well as LNG shipments,” they said.
Mentioning that Ukraine continues to target Russian energy infrastructure, they said it claims to have struck refineries in Krasnodar and Syzran. Ukrainian drone attacks on Russian energy infrastructure through August led to a spike in domestic fuel prices and saw the government extend a ban on gasoline exports.
“If these attacks intensify, it could support product cracks. This could potentially lead to lower export volumes of refined products and increased exports of crude oil, resulting from lower domestic refinery runs,” they added.
September nickel futures were trading at ₹1,380.60 on MCX during the initial hour of trading on Monday against the previous close of ₹1,338.30, up by 3.16 per cent.
On the , September jeera contracts were trading at ₹19,445 in the initial hour of trading on Monday against the previous close of ₹19,250, up by 1.01 per cent.
September dhaniya futures were trading at ₹7,800 on NCDEX in the initial hour of trading on Monday against the previous close of ₹7,838, down by 0.48 per cent.