Crude oil futures prices dipped on Monday morning following reports indicating a potential resumption of oil exports from Kurdistan. As of 9.59 am, May Brent oil futures were down 0.23% to $73.88, while April WTI crude oil futures stood at $70.18, a decrease of 0.31%.
Multi Commodity Exchange (MCX) saw March crude oil futures trading at ₹6099 and April futures at ₹6111, both lower by around 0.80% to 0.84% from their previous close.
According to a report by Reuters citing an official from Iraq’s Oil Ministry, Iraq would begin exporting 185,000 barrels a day from Kurdistan through the Iraq-Turkey pipeline once oil shipments resume. The necessary procedures have been completed to facilitate the resumption of exports through the pipeline.
Market participants are closely monitoring developments on the US administration’s efforts to engage Russia in peace talks to end the ongoing conflict with Ukraine, now in its fourth year. The decision by US President Donald Trump to explore a peace deal with Russia has drawn mixed reactions, including concerns from Ukraine. Talks between Russian and US officials are expected to continue this week, with the potential for a peace deal to lead to the lifting of US sanctions on Russia and consequently impacting crude oil supply from the region.
In a Commodities Feed for Monday, analysts from ING Think highlighted that recent oil price weakness stemmed from uncertainty surrounding OPEC+ supply levels. The group, currently cutting supply by 2.2 million barrels a day, plans to gradually increase supply starting in April, although there are discussions about potentially delaying this move. Such a delay could tighten the oil market further and may not align with Trump’s calls for increased supply.
Trade and tariff concerns, as well as efforts towards a Russia-Ukraine peace deal, are also factors dampening the market sentiment.
On the commodities front, March natural gas futures on MCX were down by 4.55% to ₹346.40, while March jeera and April turmeric futures on NCDEX traded lower by 0.29% and 0.91%, respectively.
Leaders from the European Union are expected to convene in March to discuss additional support for Ukraine amidst ongoing geopolitical tensions.
