As of 9:54 AM on Monday, Brent crude oil futures traded at $71.83, reflecting a 0.41% increase. West Texas Intermediate (WTI) crude oil futures for November were priced at $68.50, up by 0.47%.
In India, October crude oil futures on the Multi Commodity Exchange (MCX) opened at ₹5,753, a rise of 1.04% from the previous close of ₹5,694. November futures also increased, trading at ₹5,740 compared to the last close of ₹5,679, marking a 1.07% gain.
Tensions in West Asia escalated over the weekend as Israel intensified its attacks on Houthi positions in Yemen and conducted airstrikes in Lebanon. This surge in military action followed the recent killing of Hezbollah leader Sayyed Hassan Nasrallah.
Reports indicate that airstrikes on the Hodeidah port in Yemen were retaliation for missile strikes launched by Houthi forces against Israel earlier this month.
The growing unrest in the region has raised market concerns about the potential involvement of the United States and Iran. The US is a key ally of Israel, while Iran supports the Houthis.
Iran is a significant oil producer and a member of the Organization of the Petroleum Exporting Countries (OPEC). Market fears suggest that if Iran gets involved, it could disrupt global crude oil supplies.
In response to these tensions, the US is preparing for possible escalations. Pentagon spokesperson Major General Patrick Ryder stated that the US aims to prevent Iran and its allies from exploiting the situation. He emphasized that if Iranian-backed groups target American personnel or interests, the US will take all necessary steps to protect its people. “We will enhance our defensive air support capabilities in the coming days,” he added.
Despite these tensions, crude oil prices remain under pressure due to Saudi Arabia’s plans to increase oil production this year. Additionally, OPEC+ plans to raise crude oil output by 180,000 barrels per day in December.
In other markets, October natural gas futures on the MCX traded at ₹242 during Monday’s early trading, down by 0.86% from the previous close of ₹244.10.
On the National Commodities and Derivatives Exchange (NCDEX), October turmeric (farmer polished) contracts opened at ₹14,250, a decrease of 0.78% from the previous close of ₹14,362. Meanwhile, October guargum futures traded at ₹11,450, down 0.65% from the last close of ₹11,525.
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