Crude oil futures fell on Monday morning following reports that Israel and Hezbollah are close to reaching a peace agreement to end hostilities in the region.
As of 9:56 a.m., February Brent oil futures were priced at $74.34, down 0.39%, while January West Texas Intermediate (WTI) crude oil futures were at $70.95, declining by 0.41%.
On the Multi Commodity Exchange (MCX), December crude oil futures were trading at ₹5998, down 0.50% from the previous close of ₹6028. January futures were priced at ₹5981, down 0.45% from ₹6008.
Axios reported on Sunday that Israel and Hezbollah are nearing a peace deal, citing officials from Israel and the U.S. The Times of Israel also noted that Israeli Prime Minister Benjamin Netanyahu was involved in high-level discussions about the deal, which was reportedly facilitated by U.S. officials. Market participants are hopeful that this deal will reduce tensions and ease concerns about disruptions to crude oil supplies from the region.
Meanwhile, Iran has decided to boost its nuclear fuel production capacity after receiving censure from the UN’s International Atomic Energy Agency (IAEA). Some market analysts believe this could lead to further sanctions on Iran, particularly under former U.S. President Donald Trump’s administration. If sanctions are imposed, they could reduce Iran’s daily crude oil output of 1 million barrels.
In other commodity trading, December natural gas futures on MCX were up 6.60% at ₹297.10, compared to the previous close of ₹278.70.
On the National Commodities and Derivatives Exchange (NCDEX), April dhaniya futures rose 0.66%, trading at ₹8510, up from ₹8454.
Meanwhile, December cottonseed oilcake futures on NCDEX were down 0.52%, trading at ₹2,690, compared to the previous close of ₹2,704.
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