Crude oil futures decline as dollar gathers strength 

Crude oil futures traded lower due to a stronger dollar on Monday morning.

At 9.58 am on Monday, September Brent oil futures were at $84.34, down by 0.01 per cent, and August crude oil futures on WTI (West Texas Intermediate) were at $80.66, down by 0.09 per cent.

July crude oil futures were trading at ₹6742 on Multi Commodity Exchange (MCX) during initial trading on Monday morning against the previous close of ₹6746 down by 0.06 per cent, and August futures were trading at ₹6707 against the previous close of ₹6710, down by 0.04 per cent.

Signs of weakness

Dollar index rose on Monday morning as the traders became less hopeful of an early interest rate cut by the US Federal Reserve. A stronger dollar makes the commodities such as crude oil costlier in the international market.

Warren Patterson, Head of Commodities Strategy, and Ewa Manthey, Commodities Strategist, said in ING Think’s Commodities Daily that oil markets settled higher for a second consecutive week last week.

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However, the market showed some weakness towards the end of the week and this has carried through into early morning trading on Monday. “Despite this, we remain supportive towards the oil market with a deficit over the third quarter set to tighten the oil balance,” they said.

However, some geopolitical developments supported the price of the commodity. In West Asia, Israeli forces further advanced into Gaza, and drone attacks by Ukraine on Russian oil refineries are impacting the supplies from Russia.

Quoting sources, a Reuters report said that Petroecuador oil company of Ecuador has declared force majeure over deliveries of Napo heavy crude for exports following the shutdown of a key pipeline and oil wells due to heavy rains.

Jeera sizzles, turmeric fizzles

July natural gas futures were trading at ₹236.20 on MCX against the previous close of ₹237.70, down by 0.63 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), July jeera contracts were trading at ₹29,700 against the previous close of ₹28,810, up by 3.09 per cent.

August turmeric (farmer polished) futures were trading at ₹17,244 on NCDEX against the previous close of ₹17374, down by 0.75 per cent.

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