Crude oil futures fell on Friday morning as Hurricane Rafael led to significant disruptions in oil and gas production in the US Gulf of Mexico.
At 9:56 AM (GMT), January Brent crude oil futures were priced at $75.16, down by 0.62%, while December West Texas Intermediate (WTI) crude oil futures stood at $71.82, reflecting a 0.75% decline.
In India, November crude oil futures on the Multi Commodity Exchange (MCX) were trading at ₹6064, a 1.06% drop from the previous close of ₹6129, while December futures fell by 0.88%, trading at ₹6052 against the previous close of ₹6106.
According to the US Bureau of Safety and Environmental Enforcement (BSEE), around 22.36% of daily oil production and 9.73% of daily natural gas production in the Gulf of Mexico were shut down due to the hurricane. BSEE reported that energy companies had shut in 391,214 barrels of oil per day and nearly 181 million cubic feet of natural gas.
The decline in production was partially offset by support for oil prices after the US Federal Reserve announced a 25 basis point reduction in interest rates. This move follows a 50 basis point cut in September and aligns with market expectations of a further 25 basis point reduction in November. The decision aims to sustain economic growth in the US, a major global consumer of crude oil.
Market attention is now shifting to China, where the National People’s Congress is in session. Investors are keenly watching for potential stimulus measures to boost the country’s economic growth. As one of the world’s largest consumers of crude oil, any efforts to stimulate China’s economy could lead to increased global demand for oil.
Meanwhile, November natural gas futures were trading at ₹227.90 on the MCX, up by 0.53% from the previous close of ₹226.70.
In agricultural commodities, November jeera contracts on the National Commodities and Derivatives Exchange (NCDEX) rose by 0.59%, trading at ₹25,470, while November dhaniya futures edged down by 0.22%, trading at ₹7132.
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