Crude oil futures dominated in a range on Tuesday morning on concerns about recession and tight supply.
At 10:02 am on Tuesday, December Brent crude futures were up 0.49% at $92.07 and WTI November crude futures were up 0.59% at $85.96.
Crude oil futures for October were trading at INR 7,082 on the Multi Commodity Exchange (MCX) in the first trading hours on Tuesday morning. Futures for November have him trading at Rs 7,047 and last closed at Rs 7,039, up 0.11%.
High inflation in several economies around the world has raised concerns that it could lead to recessions in some countries. Many major economies have already hiked interest rates in the past few months to keep inflation in check, and some are considering even more hikes in the coming months. If the economy is in recession, the demand for crude oil will decrease.
Ukrainian war escalation
However, the market is also anticipating tighter oil supplies in the coming years.
OPEC (Organization of the Petroleum Exporting Countries) and its ally OPEC+ are embarking on a production cut of 2 million barrels per day from November.
An escalating war between Russia and Ukraine could further affect crude oil supplies, as Russia is one of the major producers in the global market. On top of this, European Union sanctions on Russian oil imports will start in her December.
Market analysts also feel Europe’s winter could be harsher than expected, further boosting energy demand. All these factors could support oil prices.
cotton seed oil cake gain
Natural Gas futures for October were trading at Rs 488.70 on the MCX in the first trading hours on Tuesday morning, down 1.35% from a previous close of Rs 495.40.
On the National Commodity Derivatives Exchange (NCDEX), December’s cottonseed meal contract was trading at INR 2,412 during the first trading hours on Tuesday morning.
Guar gum futures for October were trading at Rs 8,875 on NCDEX in the first trading hours on Tuesday morning, down 1.29% from a previous close of Rs 8,991.
