futures traded higher on Wednesday morning following concerns over a potential supply disruption due to escalating tensions in West Asia.
At 9.59 am on Wednesday, November Brent oil futures were at $67.01, up by 0.93 per cent, and October crude oil futures on WTI (West Texas Intermediate) were at $63.24, up by 0.97 per cent. September crude oil futures were trading at ₹5,578 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of ₹5,544, up by 0.61 per cent, and October futures were trading at ₹5,565 against the previous close of ₹5,532, up by 0.60 per cent.
On Tuesday, Israel attacked the Hamas leadership in Doha, Qatar. This attack came a few hours after Israel warned it was planning to attack Gaza. The latest development in West Asia has led to fears of a disruption in crude oil supplies to global markets.
In a post on the social media platform Truth Social, US President Donald Trump said: “This morning, the Trump Administration was notified by the United States Military that Israel was attacking Hamas which, very unfortunately, was located in a section of Doha, the Capital of Qatar. This was a decision made by Prime Minister Netanyahu, it was not a decision made by me. Unilaterally bombing inside Qatar, a Sovereign Nation and close Ally of the United States, that is working very hard and bravely taking risks with us to broker Peace, does not advance Israel or America’s goals. However, eliminating Hamas, who have profited off the misery of those living in Gaza, is a worthy goal.”
Stating that he spoke to Netanyahu, Trump said the Israeli Prime Minister told him that he wants to make peace. “I believe this unfortunate incident could serve as an opportunity for PEACE. I also spoke to the Emir and Prime Minister of Qatar, and thanked them for their support and friendship to our Country. I assured them that such a thing will not happen again on their soil,” Trump said.
Meanwhile, a Reuters report said Trump has asked the European Union (EU) to impose 100 per cent tariffs on China to pressurise Russian President Vladimir Putin. Quoting an unnamed official, the report said Trump also encouraged the EU to slap India with similarly expansive tariffs. Russia is one of the major producers of crude oil.
Latest data by the industry body American Petroleum Institute (API) showed an increase in crude oil inventories in the US for the week ending September 5. According to API, US crude oil inventories increased by 1.25 million barrels for the week ending September 5.
September mentha oil futures were trading at ₹976.50 on MCX during the initial hour of trading on Wednesday against the previous close of ₹981, down by 0.46 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), September cottonseed oilcake contracts were trading at ₹3,288 in the initial hour of trading on Wednesday against the previous close of ₹3,315, down by 0.81 per cent.
September dhaniya futures were trading at ₹8,014 on NCDEX in the initial hour of trading on Wednesday against the previous close of ₹8,042, down by 0.35 per cent.