traded lower on Monday morning after some reports indicated that the proposed deal between the US and Iran to end the war could lead to the reopening of the
At 10 am on Monday, August Brent oil futures were at $94.88, down by 5.32 per cent, and July crude oil futures on WTI (West Texas Intermediate) were at $91.02, down by 5.78 per cent.
June crude oil futures were trading at ₹8719 on during the initial hour of trading on Monday against the previous close of ₹9168, down by 4.90 per cent, and July futures were trading at ₹8487 against the previous close of ₹8893, down by 4.57 per cent.
In a post on the social media platform Truth Social, US President Donald Trump said: “…The negotiations are proceeding in an orderly and constructive manner, and I have informed my representatives not to rush into a deal in that time is on our side. The Blockade will remain in full force and effect until an agreement is reached, certified, and signed. Both sides must take their time and get it right. There can be no mistakes! Our relationship with Iran is becoming a much more professional and productive one.”
In another post, he said: “If I make a deal with Iran, it will be a good and proper one, not like the one made by Obama, which gave Iran massive amounts of CASH, and a clear and open path to a Nuclear Weapon. Our deal is the exact opposite, but nobody has seen it, or knows what it is. It isn’t even fully negotiated yet.”
Warren Patterson, Head of Commodities Strategy of ING Think, said in ING Think’s Commodities Feed on Monday that the oil market sold off in early morning trading in Asia, with Brent trading back below $100 a barrel. This comes as Trump suggested over the weekend that progress has been made on a deal to end the war and reopen the Strait of Hormuz.
“We’ve been at this stage before, only for talks to break down. Therefore, the market will likely be more cautious about overreacting to these headlines. There also appears to have been some tempering of optimism. Trump has since said he’s in no ‘rush’ for a deal and that it ‘isn’t even fully negotiated yet’. The US suggests that any final deal could take several days. Meanwhile, local Iranian media claims that the US is still blocking some key Iranian demands. Obviously, the big unknown is how the US and Iran will resolve their differences on Iran’s nuclear programme,” he said.
While talks continue, vessels are still trickling through the Strait of Hormuz. A crude tanker and an LNG carrier recently navigated the strait. Iran, meanwhile, claims 33 vessels moved through the strait in a 24-hour window over the weekend after obtaining approval. This includes all commercial vessels, not just tankers, he added.
June were trading at ₹287.70 on MCX during the initial hour of trading on Monday against the previous close of ₹291.10, down by 1.17 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June cottonseed oilcake contracts were trading at ₹3538 in the initial hour of trading on Monday against the previous close of ₹3552, down by 0.39 per cent.
June dhaniya futures were trading at ₹12734 on NCDEX in the initial hour of trading on Monday against the previous close of ₹12686, up by 0.38 per cent.