Crude oil futures declined on Tuesday morning as markets evaluated the ramifications of the Gaza peace plan announced by the United States.
As of 9:55 AM Tuesday, December Brent oil futures were priced at $66.68, reflecting a drop of 0.61 percent. Additionally, November crude oil futures for West Texas Intermediate (WTI) stood at $63.08, down by 0.58 percent. In the Multi Commodity Exchange (MCX), October crude oil futures were trading at ₹5,611 during the early trading hour, up by 0.02 percent from the previous close of ₹5,610, while November futures were at ₹5,591, a slight decrease of 0.04 percent from ₹5,593.
On Monday, U.S. President Donald Trump announced Israel’s backing for a U.S.-sponsored peace deal intended to resolve the conflict in Gaza. During a joint press conference with Israeli Prime Minister Benjamin Netanyahu at the White House, Trump claimed they were “beyond very close” to achieving a peace agreement for the Palestinian territory. He also cautioned Hamas that Israel would have the full support of the U.S. to take necessary actions should the militants reject the proposed terms.
The White House released a 20-point document outlining the peace proposal, which called for an immediate ceasefire, an exchange of hostages held by Hamas for Palestinian prisoners in Israel, a phased Israeli withdrawal from Gaza, disarmament of Hamas, and the establishment of a transitional government led by an international body.
Achieving a peace deal between Israel and Hamas is anticipated to promote stability in the oil-rich West Asia region.
Crude oil prices faced additional pressure following reports indicating a potential increase in production by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) in November.
In their Tuesday “Commodities Feed,” Warren Patterson, Head of Commodities Strategy at ING Think, along with Commodities Strategist Ewa Manthey, noted that oil prices experienced significant downward pressure on Monday, with ICE Brent falling more than 3 percent over the day. This decline was attributed to reports that OPEC+ may be considering an increase in supply by an additional 137,000 barrels per day in November.
Confirmations regarding production adjustments are expected on October 5, when OPEC+ is scheduled to convene. Their analysis indicates that additional supply is unnecessary, predicting that the market will enter a substantial surplus by the fourth quarter and maintain this trend through 2026. Consequently, they forecast further pressure on oil prices for the coming year.
In related trading, October mentha oil futures on MCX were at ₹960 during the initial trading hour, down by 0.54 percent from the previous close of ₹965.20. On the National Commodities and Derivatives Exchange (NCDEX), October turmeric (farmer polished) futures were at ₹12,246, falling 1.39 percent from the prior close of ₹12,418. October guargum futures on NCDEX were trading at ₹8,840, down by 1.02 percent compared to the previous close of ₹8,931.
This report was published on September 30, 2025.
