Crude oil futures were trading higher on Friday morning following the imposition of new sanctions on Iran by the US. Additionally, the Organisation of Petroleum Exporting Countries and its allies, known as OPEC+, decided to cut output for seven of its members on Thursday.
At 9.58 am on Friday, May Brent oil futures saw a 0.35 per cent increase, trading at $72.25, while May crude oil futures on WTI (West Texas Intermediate) were up by 0.41 per cent, trading at $68.35. On the Multi Commodity Exchange (MCX), April crude oil futures were trading at ₹5918, up by 0.36 per cent from the previous close, and May futures were trading at ₹5,914, up by 0.39 per cent.
The US Treasury announced new sanctions on Iran on Thursday, targeting a Chinese refinery and some vessels involved in supplying crude oil from Iran to China. This move contributed to the rally in oil prices.
In their Commodities Feed for Friday, Warren Patterson, Head of Commodities Strategy at ING Think, and Ewa Manthey, Commodities Strategist, highlighted that oil prices surged on Thursday, with ICE Brent settling over 1.7 per cent higher at $72 a barrel, marking the highest close this month. They mentioned that the US tightened sanctions on Iranian oil exports, including sanctioning a Chinese refiner and an oil terminal in China.
OPEC+ members also announced production output cuts for some members to offset overproduction. These cuts will be in effect until June 2026 and range from 189,000 to 435,000 barrels a day. However, there are concerns about whether all members will adhere to the agreed-upon cuts.
March natural gas futures were trading at ₹344.60 on MCX, down by 2.10 per cent. On the National Commodities and Derivatives Exchange (NCDEX), April turmeric (farmer polished) contracts were up by 1.12 per cent, trading at ₹13,220, while April jeera futures saw a 0.74 per cent increase, trading at ₹21,845.
The article was last updated on March 21, 2025.
