Crude oil futures recovered on Tuesday morning after witnessing heavy sell-offs in the recent sessions. Fears about an escalation in US-led trade wars had impacted the market sentiments, as market players felt that these trade wars would lead to a global recession and reduce demand for commodities such as crude oil.
At 9.57 am on Tuesday, June Brent oil futures were at $65.14, up by 1.45 per cent, and May crude oil futures on WTI (West Texas Intermediate) were at $61.66, up by 1.58 per cent. April crude oil futures were trading at ₹5,300 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday against the previous close of ₹5,293, up by 0.13 per cent, and May futures were trading at ₹5,300 against the previous close of ₹5,298, up by 0.04 per cent.
On Monday, the US President Donald Trump threatened China with additional 50 per cent tariff from Wednesday, if it fails to withdraw it retaliatory tariffs on imports from the US.
In their Commodities Feed for Tuesday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said oil prices witnessed something of a relief rally on Tuesday morning. Yet risks are still skewed to the downside as Trump threatens an additional 50 per cent tariff on Chinese goods if it doesn’t lift its 34 per cent retaliatory tariff.
“It’s unlikely that China will reverse the policy. As such, we’re likely to see further escalation, which will only exacerbate growth concerns and worries over oil demand,” they said.
The scale of recent sell-off will worry OPEC+, which last week surprised the market with a larger-than-expected supply hike for May. If downward pressure continues, the OPEC+ move could be very short-lived. “We could see OPEC+ pause or even reverse supply increases,” they said.
April natural gas futures were trading at ₹316.30 on MCX during the initial hour of trading on Tuesday against the previous close of ₹322.60, down by 1.95 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), May guargum contracts were trading at ₹10,193 in the initial hour of trading on Tuesday against the previous close of ₹10,101, up by 0.91 per cent.
April turmeric (farmer polished) futures were trading at ₹14,438 on NCDEX in the initial hour of trading on Tuesday against the previous close of ₹14,090, up by 2.47 per cent.
Published on April 8, 2025
