traded lower on Tuesday morning as traders focussed on developments related to proposed peace talks between Russia and Ukraine to end the war.
At 9.57 am on Tuesday, February Brent oil futures were at $62.38, down by 0.18 per cent, and January crude oil futures on WTI (West Texas Intermediate) were at $58.74, down by 0.24 per cent.
December crude oil futures were trading at ₹5305 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday against the previous close of ₹5334, down by 0.54 per cent, and January futures were trading at ₹5310 against the previous close of ₹5330, down by 0.38 per cent.
On Monday, Ukrainian President Volodymyr Zelenskiy met British Prime Minister Keir Starmer, French President Emmanuel Macron, German Chancellor Friedrich Merz in London to discuss the US-proposed peace plan with Russia.
Zelenskiy told reporters after the meeting that the revised plan included 20 points. However, there was no agreement on the issue of giving up territory that Russia has pushed for.
In their recent analysis, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist of ING Think, said the developments related to Russia-Ukraine peace talks will be important to watch in 2026, with any progress towards ending the war likely to put further pressure on energy markets.
“For 2026, we remain bearish towards energy markets, with the global oil market set to be in large surplus, following OPEC+ rapidly ramping up output as it shifts policy, while demand growth remains modest. There is plenty of uncertainty about Russian oil supply following US sanctions, but as we move through 2026, markets will get a clearer picture of the full impact. For now, we believe the impact will be limited in the medium to long term. However, there is potential for greater volatility, given that OPEC’s spare production capacity has shrunk as the group has increased output,” they said.
Meanwhile, Iraq’s plan to restore production at Lukoil’s West Qurna 2 oilfield also put pressure on oil prices. Quoting two unnamed Iraqi energy officials, a Reuters report said Iraq restored production at West Qurna 2 oilfield, one of the world’s largest, after a leak on an export pipeline slashed its output.
With output of around 460,000 barrels a day, this oil field accounts for about 0.5 per cent of world oil supply and 9 per cent of total output in Iraq, the Reuters report said.
December natural gas futures were trading at ₹438 on MCX during the initial hour of trading on Tuesday against the previous close of ₹448.90, down by 2.43 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), December jeera contracts were trading at ₹20870 in the initial hour of trading on Tuesday against the previous close of ₹20810, up by 0.29 per cent.
December dhaniya futures were trading at ₹10480 on NCDEX in the initial hour of trading on Tuesday against the previous close of ₹10638, down by 1.49 per cent.