Crude oil prices saw a decline in futures trading on Wednesday morning following Russia’s agreement to temporarily halt attacks on Ukraine’s energy infrastructure, as proposed by the US.
As of 9.57 am on Wednesday, May Brent oil futures were down by 0.33% at $70.33, while May WTI crude oil futures were down by 0.34% at $66.52. On the Multi Commodity Exchange (MCX), March crude oil futures were trading at ₹5,766 and April futures at ₹5,789, both showing a decrease from the previous close.
Investors are optimistic that a temporary peace agreement between Russia and Ukraine could lead to the lifting of sanctions on Russian oil, potentially increasing global supply. US President Donald Trump’s social media post indicated progress towards a ceasefire on energy and infrastructure, with discussions on a larger peace agreement.
However, the American Petroleum Institute (API) reported a higher-than-expected increase in US crude oil inventories for the week ending March 14, with a rise of 4.59 million barrels. The official data from the Energy Information Administration (EIA) later in the day will provide further insight into US inventory levels.
Amidst these developments, tensions in West Asia have also impacted crude oil prices. Israel’s actions in Gaza Strip and the US’s response to Houthi attacks in the Red Sea have raised concerns about regional oil supplies to the global market.
In other commodities, March natural gas futures on MCX were trading lower at ₹353.30, while March cottonseed oilcake and April jeera futures on NCDEX showed mixed movements.
Overall, the market remains cautious as geopolitical events continue to influence oil prices, with uncertainties about supply disruptions persisting.
