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Crude oil futures traded higher on Friday morning over the escalation of tensions in West Asia.
At 9.52 am on Friday, September Brent oil futures were at $85.67, up by 0.48 per cent, and August crude oil futures on WTI (West Texas Intermediate) were at $82.21, up by 0.57 per cent.
July crude oil futures were trading at ₹6,858 on the Multi Commodity Exchange (MCX) during initial trading on Friday morning, against the previous close of ₹6,804, up by 0.79 per cent, and August futures were trading at ₹6,803, against the previous close of ₹6,759, up by 0.65 per cent.
Weather-related impact
Tensions between Israel and Lebanon’s Hezbollah have increased following the latter’s rocket and drone attacks on Israel over the past few days. Israel is already at war with Hamas. Added to this, Turkey has expressed solidarity with Lebanon. All these factors have increased apprehensions over the supply of crude oil from West Asia to the world market.
Meanwhile, weather-related developments are also impacting oil supply to the market. A Reuters report quoting FGE Energy said heavy rains have reduced Ecuador’s production by 100,000 barrels a day over the past week.
Added to this, the US National Hurricane Centre is tracking a weather system that could become a cyclone and affect the US Gulf Coast, which hosts the US’ energy infrastructure.
News reports said the US Senate budget committee on Thursday launched a probe into 14 domestic oil producers over the possibility of them coordinating with the oil cartel Organization of Petroleum Exporting Countries in manipulating oil prices.
Guarseed rises, turmeric drops
July zinc futures were trading at ₹266.35 on MCX, against the previous close of ₹264.90, up by 0.55 per cent.
On the National Commodities and Derivatives Exchange (NCDEX) July guarseed contracts were trading at ₹5,337, against the previous close of ₹5,320, up by 0.32 per cent.
August turmeric (farmer polished) futures were trading at ₹17,262 on NCDEX in the initial hour of trading on Friday morning, against the previous close of ₹17,410, down by 0.85 per cent.
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