Crude oil futures traded lower on Tuesday morning due to the lack of clarity on trade talks between the US and China.
At 9.56 am on Tuesday, July Brent oil futures were at $64.34, down by 0.69 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $61.58, down by 0.76 per cent. May crude oil futures were trading at ₹5,265 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday against the previous close of ₹5,281, down by 0.30 per cent, and June futures were trading at ₹5,226 against the previous close of ₹5,247, down by 0.40 per cent.
The US Treasury Secretary Scott Bessent said on Monday that it is up to China to de-escalate trade tensions with the US.
Market players were optimistic following the US President Donald Trump’s statement last week that he had spoken to the Chinese President Xi Jinping on trade tariffs. However, Scott Bessent had said on Sunday that he was not aware of this.
This lack of clarity on trade talks is having an impact on the market. Market players feel that the trade war between the two major economies of the world could lead to a global slowdown. This could impact the demand for commodities such as crude oil.
Meanwhile, Russia has announced a three-day ceasefire with Ukraine in May. To commemorate the 80th anniversary of the Soviet Union’s victory over Nazi Germany, Russia has announced a ceasefire with Ukraine from May 8-10. Amid ongoing negotiations initiated by the US, this move is seen as an indication that Russia remains open to peace talks.
Market players feel that a ceasefire between the two countries could lead to an easing of US sanctions on Russia. Reduction in tensions between Russia and Ukraine could help improve the crude oil supplies from Russia to the world market.
The next meeting of the Organization of Petroleum Exporting Countries and allies, known as OPEC+, which is scheduled on May 5, is likely to suggest an increase in the production output for the second consecutive month. Media reports said that some OPEC+ members are expected to suggest an increase in the production output.
May natural gas futures were trading at ₹284.30 on MCX during the initial hour of trading on Tuesday against the previous close of ₹286, down by 0.59 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), May turmeric (farmer polished) contracts were trading at ₹13,914 in the initial hour of trading on Tuesday against the previous close of ₹14,004, down by 0.64 per cent.
May castorseed futures were trading at ₹6,232 on NCDEX in the initial hour of trading on Tuesday against the previous close of ₹6,252, down by 0.32 per cent.
Published on April 29, 2025