Crude oil futures drop as market awaits outcome of US-Russia talks

 At 9.54 am on Monday, June Brent oil futures were at $71.33, down by 0.39 per cent, and May crude oil futures on WTI (West Texas Intermediate) were at $68.02, down by 0.38 per cent. April crude oil futures were trading at ₹5,871 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday against the previous close of ₹5,900, down by 0.49 per cent, and May futures were trading at ₹5,867 against the previous close of ₹5,889, down by 0.37 per cent.

A Reuters report said that a US delegation will seek progress toward a Black Sea ceasefire and a broader cessation of violence in the war in Ukraine when it meets for talks with Russian officials on Monday. It held discussions with Ukraine diplomats on Sunday.

It is to be noted here that the US President Donald Trump has been stressing the need to end the war between Russia and Ukraine. Market players feel that a ceasefire between Russia and Ukraine could help lift sanctions on Russia. This in turn could help increase crude oil supply from Russia. Russia is one of the major producers of crude oil in the global market.

In their Commodities Feed for Monday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said crude oil saw its largest weekly increase since early January with ICE Brent settling more than 2.2 per cent higher.

Tighter sanctions on Iranian oil exports provided some support, along with compensation plans from some OPEC+ members for overproduction. “However, questions remain about whether members will actually stick to the compensation plan and cut output. Oil could receive further support this week amid reports that the Trump administration’s reciprocal tariffs set for 2 April may not be as severe as initially feared. And that they might be more targeted,” they said.

April natural gas futures were trading at ₹324.20 on MCX during the initial hour of trading on Monday against the previous close of ₹348.30, down by 1.46 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), April turmeric (farmer polished) contracts were trading at ₹13,642 in the initial hour of trading on Monday against the previous close of ₹13,394, up by 1.85 per cent.

April jeera futures were trading at ₹21,830 on NCDEX in the initial hour of trading on Monday against the previous close of ₹22,055, down by 1.02 per cent.