France confident of bringing consensus among EU members on banning Russian oil
Prospects of stronger demand for crude oil in the global market and tight supplies helped crude oil futures trade higher on Wednesday morning.
At 10:04 am on Wednesday, July Brent oil futures were at $114.88, up by 1.28 per cent, and July crude oil futures on WTI were at $111.09, up by 1.20 per cent.
June crude oil futures were trading at ₹8,612 on Multi Commodity Exchange (MCX) in the initial hour of Wednesday morning against the previous close of ₹8,512, up by 1.17 per cent, and July futures were trading at ₹8,435 against the previous close of ₹8,347, up by 1.05 per cent.
France’s Foreign Minister hoped those who opposed the EU sanctions on Russia could be convinced, and she is optimistic about it. Some member countries of the EU are opposing a complete EU ban on Russian crude oil as it would impact them. A complete EU ban on the import of Russian crude oil will further impact the already tight crude oil market across the globe.
On the demand front, China is planning to ease Covid restrictions in Shanghai from June 1. In fact, Shanghai was under lockdown for weeks impacting the demand for crude oil.
In his crude oil outlook for the day, Rahul Kalantri, VP (Commodities) of Mehta Equities Ltd, said oil prices inched lower late Tuesday after a choppy trade as tight supply worries offset concerns over a possible recession and China’s Covid curbs. In the international market, WTI crude settled at $109.77 and Brent settled at $110.95. In the domestic market, crude price settled at ₹8,512 per barrel, down by 0.36 per cent.
He said the market was down since opening but recovered early losses after the US energy secretary said Washington has not ruled out export restrictions to lower fuel prices. In other news, the American Petroleum Institute’s (API) weekly inventory unexpectedly rose by 5,67,000 barrels last week. However, gasoline inventories fell by 4.2 million barrels and distillate stocks fell by 9,49,000 barrels.
He said crude oil also gets support from the weakness in the dollar index. “We expect crude oil prices to remain strong in today’s session. Crude oil price has support at $107.20-$105.40 and resistance at $112.40-$114.95, In rupee terms, crude oil has support at ₹8,410-8,280, and resistance at ₹8,690–8,820,” he added.
June cotton futures were trading at ₹47,400 on MCX in the initial hour of Wednesday morning against the previous close of ₹47,610, down by 0.44 per cent.
Castorseed, dhaniya dip
On the National Commodities and Derivatives Exchange (NCDEX), June castor seed futures were trading at ₹7,546 in the initial hour of Wednesday morning against the previous close of ₹7,612, down by 0.87 per cent.
June dhaniya contracts were trading at ₹11,284 on NCDEX in the initial hour of Wednesday morning against the previous close of ₹11,346, down by 0.55 per cent.