Crude oil futures traded higher on Thursday morning after a US court said that US President Donald Trump could not proceed with his plans for reciprocal trade tariffs.
At 9:58 am on Thursday, August Brent oil futures were at $65.05, up by 1.13 per cent, and July crude oil futures on WTI (West Texas Intermediate) were at $62.63, up by 1.28 per cent. June crude oil futures were trading at ₹5,363 on Multi Commodity Exchange (MCX) during the initial hour of trading on Thursday against the previous close of ₹5,306, up by 1.07 per cent, and July futures were trading at ₹5,328 against the previous close of ₹5,274, up by 1.02 per cent.
On Wednesday, the Court of International Trade said the US Constitution gives Congress exclusive authority to regulate commerce with other countries that is not overridden by the president’s emergency powers to safeguard the US economy.
In their Commodities Feed for Thursday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said the oil market is rising on news that the US Court of International Trade ruled President Trump’s ‘Liberation Day’ tariffs overstepped his authority, blocking the levies. The Trump administration said it is appealing the decision.
The reciprocal tariff plans of the Trump administration was one of the major reasons for uncertainty in the crude oil markets during the year.
ING Think’s Commodities Feed said that oil markets must contend with OPEC+ (Organisation of the Petroleum Exporting Countries and allies) coming decision on July output levels at a meeting on Saturday. “We’re assuming the group will agree on another large supply increase of 411,000 barrels a day. We expect similar increases through until the end of the third quarter, as the group increases its focus on defending market share,” the Feed said. On Wednesday, OPEC+ ratified broader group production quotas through until the end of 2026. This weekend’s decision relates to additional voluntary cuts that some members had previously made.
Meanwhile, data released by an industry body showed a decrease in crude oil inventories in the US for the week ending May 23. According to the American Petroleum Institute (API), US crude oil inventories declined by 4.24 million barrels for the week ending May 23. Market was expecting an increase in the inventory levels during the period.
June zinc futures were trading at ₹256.25 on MCX during the initial hour of trading on Thursday against the previous close of ₹255.35, up by 0.35 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June guargum contracts were trading at ₹9,680 in the initial hour of trading on Thursday against the previous close of ₹9,646, up by 0.35 per cent.
June dhaniya futures were trading at ₹7,030 on NCDEX in the initial hour of trading on Thursday against the previous close of ₹7,062,down by 0.45 per cent.
Published on May 29, 2025