futures traded lower on Tuesday morning despite uncertainty over the ceasefire talks between the US and Iran.
At 10.13 am on Tuesday, August Brent oil futures were at $94.29, down by 0.73 per cent, and July crude oil futures on WTI (West Texas Intermediate) were at $91.37, down by 0.86 per cent. June crude oil futures were trading at ₹8714 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday against the previous close of ₹8736, down by 0.25 per cent, and July futures were trading at ₹8480 against the previous close of ₹8536, down by 0.66 per cent.
In their Commodities Feed for Tuesday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said oil prices received a boost on Monday as talks between the and Iran appeared to break down — again. This has become a common pattern in recent months, and there are still plenty of mixed messages. US President says that negotiations are continuing. As a result, oil prices continue to be whipsawed by quickly changing headlines.
Iran, meanwhile, issued threats against vessels transiting the Bab el‑Mandeb, the narrow Red Sea chokepoint that carries a major share of the world’s energy shipments. This is a concern for oil markets, given that the Saudis have diverted a large amount of oil that should be exported from the Persian Gulf to the Red Sea. Any disruptions to southbound flows from the Red Sea would require vessels to travel north through the Suez Canal and around the Cape of Good Hope, they said.
The Russian government has banned jet fuel exports until the end of November amid the recent surge in Ukrainian drone attacks on energy infrastructure. Russia is a marginal exporter of jet fuel, shipping only around 30,000 barrels a day. The global impact will be limited, but it’s still an unwelcome twist for a market already stretched thin by disruptions in West Asia, they said.
The Commodities Feed said that a bigger concern for refined product markets would be if Russia moved to limit or ban diesel exports. There have been reports in recent days that Russia is considering limits on diesel exports.
June aluminium futures were trading at ₹395.25 on MCX during the initial hour of trading on Tuesday against the previous close of ₹392.15, up by 0.79 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June jeera contracts were trading at ₹18900 in the initial hour of trading on Tuesday against the previous close of ₹19050, down by 0.79 per cent.
June turmeric (farmer polished) futures were trading at ₹16080 on NCDEX in the initial hour of trading on Tuesday against the previous close of ₹16134, down by 0.33 per cent.