traded lower on Tuesday morning as markets continued to focus on the US-proposed plan to bring an end to the
At 9.54 am on Tuesday, February Brent oil futures were at $62.43, down by 0.46 per cent, and January crude oil futures on WTI (West Texas Intermediate) were at $58.60, down by 0.54 per cent.
December crude oil futures were trading at ₹5237 on during the initial hour of trading on Tuesday against the previous close of ₹5235, up by 0.04 per cent, and January futures were trading at ₹5231 against the previous close of ₹5232, down by 0.02 per cent.
Market reports said that the proposed peace plan, if accepted by both Russia and Ukraine, could help improve crude oil supplies to the global market.
In their Commodities Feed for Tuesday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said the oil market received a boost from a broader risk-on move, with equities rallying and the market pricing in a higher probability of the US Federal Reserve cutting interest rates on December 10. As a result, ICE Brent settled almost 1.3 per cent higher on the day.
However, the market continues to pay close attention to how peace talks to end the war in Ukraine develop. Reports suggest that there have been significant changes to the proposed peace plan, with the US and Ukraine essentially drafting a new one.
They said that the more contentious points, such as those related to territory, will need to be ironed out by the president of US and Ukraine.
“Obviously, Russia must agree on any deal. For oil markets, a deal could remove significant supply risk, leaving participants to focus on bearish supply fundamentals through 2026,” they said in the Commodities Feed.
December natural gas futures were trading at ₹414 on MCX during the initial hour of trading on Tuesday against the previous close of ₹417.20, down by 0.77 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), December cottonseed oilcake contracts were trading at ₹2935 in the initial hour of trading on Tuesday against the previous close of ₹2922, up by 0.44 per cent.
December jeera futures were trading at ₹21650 on NCDEX in the initial hour of trading on Tuesday against the previous close of ₹21745, down by 0.44 per cent.