Crude oil futures fell on Tuesday morning as hopes for a ceasefire between Israel and Hamas tempered supply concerns. At 9:52 a.m. ET, Brent crude for October delivery was priced at $77.05, down 0.79%, while WTI crude for the same month traded at $73.08, also down 0.79%. On the Multi Commodity Exchange (MCX), September crude oil futures were at ₹6144, a 0.74% drop from the previous close of ₹6190, and October futures were at ₹6125, down 0.65% from ₹6165.
US Secretary of State Antony Blinken announced on Monday that Israeli Prime Minister Benjamin Netanyahu had agreed to a ceasefire proposal with Hamas. ING Think’s commodities analysts, Warren Patterson and Ewa Manthey, noted that this development has alleviated some supply risk fears but emphasized that the ultimate impact on oil prices will depend on Hamas’s acceptance and the stability of any potential ceasefire.
Oil prices experienced renewed pressure on Monday, with ICE Brent crude settling over 2.5% lower. Persistent demand concerns regarding China, following recent data indicating weakened oil demand, have left market participants cautious. Despite expectations of a supply deficit for the remainder of the year, speculators remain hesitant.
In Libya, production at the Sharara oilfield has increased to approximately 85,000 barrels per day following a blockade that previously halted operations. The National Oil Corporation had declared force majeure on exports from the field earlier this month.
In other commodity markets, August natural gas futures on the MCX were trading at ₹187.70, up 0.64% from ₹186.50. August cottonseed oilcake contracts on the National Commodities and Derivatives Exchange (NCDEX) were at ₹3165, a 3.98% increase from ₹3044, while September jeera futures were at ₹25200, down 0.30% from ₹25275.
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