Crude oil futures traded higher on Tuesday morning after US President Donald Trump said the ceasefire with Iran was on ‘life support’.
At 10.01 am on Tuesday, July Brent oil futures were at $104.95, up by 0.71 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $98.96, up by 0.91 per cent. May crude oil futures were trading at ₹9,445 on the Multi Commodity Exchange (MCX) against the previous close of ₹9,376, up by 0.74 per cent, and June futures were trading at ₹9,164 against the previous close of ₹9,114, up by 0.55 per cent.
Referring to the ceasefire with Iran, Trump said: “I would call it the weakest right now, after reading that piece of garbage they (Iran) sent us. I didn’t even finish reading it.”
The US is in disagreement with Iran on its demands such as an end to hostilities on all fronts, the removal of a US blockade at the Strait of Hormuz, the resumption of oil sales from Iran, and compensation for war damage.
Meanwhile, the US Department of Energy (DoE) has announced the contract awards for the exchange of approximately 53.3 million barrels of crude from the Strategic Petroleum Reserve’s (SPR) Bayou Choctaw, Bryan Mound, Big Hill, and West Hackberry sites.
A press release by DoE said this marks the next phase of DoE’s execution of the US’ 172-million-barrel contribution to the International Energy Agency’s collective action to stabilise global oil supplies. It follows DoE’s Request for Proposal issued at the end of April. Deliveries will begin immediately as the Department continues to move swiftly to address short-term supply disruptions and strengthen US energy security, it said.
The DOE Assistant Secretary of the Hydrocarbons and Geothermal Energy Office, Kyle Haustveit, said: “With today’s announcement of contract awards, we are advancing the President’s commitment to carrying out this historic emergency exchange. These actions continue to move oil swiftly into the market, address near-term supply needs, and ensure that the Strategic Petroleum Reserve remains strong through the return of premium barrels.”
May copper futures were trading at ₹1,385.55 on MCX during the initial hour of trading on Tuesday against the previous close of ₹1,369.05, up by 1.21 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), May castor seed contracts were trading at ₹6,507 in the initial hour of trading on Tuesday against the previous close of ₹6,472, up by 0.54 per cent.
May jeera futures were trading at ₹19,605 on NCDEX in the initial hour of trading on Tuesday against the previous close of ₹19,675, down by 0.36 per cent.