Crude oil futures fell slightly on Tuesday morning following a recent increase driven by production disruption fears in Libya. At 9:57 AM, November Brent oil futures were priced at $80.17, down 0.24%, while October WTI crude futures were at $77.16, a decrease of 0.34%.
On the Multi Commodity Exchange (MCX), September crude oil futures were trading at ₹6485, a marginal rise of 0.03% from the previous close of ₹6483. In contrast, October futures were at ₹6396, down 0.05% from ₹6399.
This decline is attributed to a technical correction after prices had risen due to concerns about potential production halts in Libya. ING’s Warren Patterson and Ewa Manthey noted that oil prices surged above $81 a barrel on Monday, driven by fears of halted Libyan production amid political turmoil. The Tripoli-based government aims to replace the central bank governor, opposed by the Eastern Libyan government, which has threatened to halt oil production in response.
Libya’s output of 1.1-1.2 million barrels per day makes it a significant player in the market, and any prolonged disruption could deepen market deficits. Additionally, tensions in West Asia, including a pre-emptive strike by Israel against Lebanon and ongoing conflicts with Hezbollah and Hamas, contributed to the oil price surge on Monday.
Other commodities also saw movement: September natural gas futures were at ₹178.70 on MCX, down 0.94% from ₹180.40. On the National Commodities and Derivatives Exchange (NCDEX), September cottonseed oilcake contracts rose to ₹3557, up 0.51% from ₹3539, while October turmeric futures fell to ₹13904, down 0.52% from ₹13976.
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