Crude oil futures traded higher on Friday morning after US Vice President JD Vance declined to give a timeline for when the US-Iran conflict would end.
At 10.03 am on Friday, November Brent oil futures were at $95.85, up by 0.35 per cent, and October crude oil futures on WTI (West Texas Intermediate) were at $91.85, up by 0.60 per cent. September crude oil futures were trading at ₹8668 on Multi Commodity Exchange (MCX) during the initial hour of trading on Friday against the previous close of ₹8643, up by 0.29 per cent, and October futures were trading at ₹8364 against the previous close of ₹8355, up by 0.11 per cent.
Speaking to reporters in Washington, Vance said the US has ended major combat operations with Iran. “Right now there’s no active shooting. I recognize there’s been places where this has flared up.”
To a query on the timeline to end the war, he said an end would require a halt in Iranians shooting at commercial shipping. “When will the Iranians stop shooting at ships? I don’t know the answer to that question,” he said, adding, there would be no negotiations with Iran as long as Iran continues to target commercial shipping.
In their Commodities Feed for Friday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said oil prices remain elevated, with ICE Brent holding above $95 a barrel amid a pickup in hostilities between the US and Iran this week. This included Iran firing missiles into neighbouring Gulf countries.
Escalation is propping up crude, but the rally may lose traction if Hormuz shipments keep moving smoothly. According to reports, Iraq exported the highest amount of oil since the start of the US-Iran war in August -– a total of 2.35 million barrels a day. Of that, around 2.26 million barrels a day was exported from southern routes. This would need to eventually go through the Strait of Hormuz, they said.
Saudi Arabia kept its official selling price for its flagship Arab Light unchanged at a $2 a barrel discount for October loadings. The expectation had been for an increase, suggesting the market is not as tight as thought, they said.
September menthaoil futures were trading at ₹1225.80 on MCX during the initial hour of trading on Friday against the previous close of ₹1220.30, up by 0.45 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), September cottonseed oilcake contracts were trading at ₹2902 in the initial hour of trading on Friday against the previous close of ₹2871, up by 1.08 per cent.
October turmeric (farmer polished) futures were trading at ₹20324 on NCDEX in the initial hour of trading on Friday against the previous close of ₹20244, up by 0.40 per cent.