Crude oil futures traded marginally higher on Wednesday morning following the escalation in tensions between Russia and Ukraine and in the West Asian region.

At 9.52 am on Wednesday, August Brent oil futures were at $85.34, up by 0.01 per cent, and August crude oil futures on WTI (West Texas Intermediate) were at $80.73, up by 0.02 per cent.

July crude oil futures were trading at ₹6,734 on the Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday morning, against the previous close of ₹6,702, up by 0.48 per cent, and August futures were trading at ₹6,710, against the previous close of ₹6,667, up by 0.64 per cent.

On Tuesday, a large fire was reported in a fuel tank at an oil terminal in Russia’s southern port of Azov. A Reuters report quoting Russian officials and a Ukrainian intelligence source, said the fire was caused by a Ukrainian drone strike.

Azov port has two oil product terminals, which handled around 2,20,000 tonnes of fuel for export from January to May.

In another development on Tuesday, the Israeli Foreign Minister, Israel Katz, warned that a decision on an all-out war with Lebanon’s Hezbollah was coming soon. Meanwhile, the US sent its envoy, Amos Hochstein, to Lebanon to try and cool tensions. This followed an increase in cross-border fire along Lebanon’s southern frontier. Media reports said Hezbollah has hinted that it could attack Israel’s Haifa city.

These developments inkey crude oil producing regions have increased concerns in the market over possible supply disruptions.

The weekly petroleum status data released by the industry body American Petroleum Institute (API) showed an increase in crude oil inventories in that country. According to API, crude oil inventories increased by 2.26 million barrels for the week ending June 14.

However, official data from the US EIA (Energy Information Administration) is expected later in the day. This will give a clear idea on crude oil inventory level in the US.

June natural gas futures were trading at ₹244 on the MCX during the initial hour of trading on Wednesday morning, against the previous close of ₹242, up by 0.83 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), July cottonseed oilcake contracts were trading at ₹2,744 in the initial hour of trading on Wednesday morning, against the previous close of ₹2,738, up by 0.22 per cent.

July guargum futures were trading at ₹10,780 on the NCDEX in the initial hour of trading on Wednesday morning, against the previous close of ₹10,816, down by 0.33 per cent.

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