Petroleum futures traded partially lower on Wednesday early morning after losing more than 1.5 percent on Tuesday. There was pressure on danger possessions in the market regardless of the increased stress in the Red Sea area.
At 9.51 am on Wednesday, March Brent oil futures were at $75.888, down by 0.01 percent, and February petroleum futures on WTI (West Texas Intermediate) were at $70.37, down by 0.01 percent.
January petroleum futures were trading at 5,882 on the Multi Product Exchange (MCX) throughout preliminary trading, versus the previous close of 5,943, down by 1.03 percent, and February futures were trading at 5,932 versus the previous close of 5,989, down by 0.95 percent.
No escape from wider pressure.
Warren Patterson and Ewa Manthey, authors of ING Believe’s Products Feed, stated energy markets were not able to leave the wider pressure seen on danger possessions. The weak point in oil comes regardless of a ratcheting up in stress in West Asia. Iran has actually sent out a warship to the Red Sea after the United States sunk a number of Houthi boats in the area, following a variety of attacks on business ships by the Houthis.
While the geopolitical scenario is an issue for the oil market, a relatively comfy oil balance over the very first half of 2024 does assist to reduce a few of these concerns, they stated in the Products Feed.
A Bloomberg report stated OPEC (Organisation of the Petroleum Exporting Countries) and its allies, called OPEC+, will hold a Joint Ministerial Keeping track of Committee conference in early February.
According to ING Believe’s Products Feed, OPEC+ will be eager to go over the state of the oil market, especially offered the cost action seen following the statement of much deeper cuts last month from a handful of members.
” Nevertheless, offered the scale of cuts we are currently seeing, it will be progressively hard for the group to cut more if required throughout 2024. Currently, the last couple of rounds of cuts have actually been driven by voluntary decreases from private members, instead of group-wide cuts– an indication that it is ending up being harder to get all members on board to cut,” Warren Patterson and Ewa Manthey stated in the Feed.
Jeera gains, guar gum loses.
January gas futures were trading at 215.50 on MCX in the preliminary trading hour of Wednesday early morning versus the previous close of 212.50, down by 1.41 percent.
On the National Commodities and Derivatives Exchange (NCDEX), January jeera agreements were trading at 29,885 in the preliminary trading hour of Wednesday early morning versus the previous close of 29,530, up by 1.20 percent.
January guar gum futures were trading at 10,183 on NCDEX in the preliminary trading hour of Wednesday early morning, versus the previous close of 10,326, down by 1.38 percent.
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