Crude oil futures traded lower on Monday morning as markets analysed the impact of a US military action in Venezuela and the capture of Venezuelan President Nicolas Maduro.

At 9.59 am on Monday, March Brent oil futures were at $60.61, down by 0.23 per cent, and February crude oil futures on WTI (West Texas Intermediate) were at $57.13, down by 0.33 per cent. January crude oil futures were trading at Rs  5168 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday against the previous close of Rs  5155, up by 0.25 per cent, and February futures were trading at Rs  5180 against the previous close of Rs  5165, up by 0.29 per cent.

Though Venezuela holds the world’s largest proven oil reserves, it produces less than 1 per cent of the current global output. Some market reports said that there could be limited supply disruption as the current production is less than 1 million barrels a day.

American forces captured Maduro over the weekend, and now he faces drug-trafficking charges in the US. Following this, US President Donald Trump said that US will run Venezuela until a new leader is elected.

Meanwhile, members of OPEC+ (Organization of the Petroleum Exporting Countries and allies) met virtually on January 4 and decided to pause production increments in February and March 2026.

An OPEC+ press release said that the eight participating countries reaffirmed their decision on November 2 2025 to pause production increments in February and March 2026 due to seasonality.

The eight participating countries reiterated that the 1.65 million barrels per day may be returned in part or in full subject to evolving market conditions and in a gradual manner.

“The countries will continue to closely monitor and assess market conditions, and in their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach and retaining full flexibility to continue pausing or reverse the additional voluntary production adjustments, including the previously implemented voluntary adjustments of the 2.2 million barrels per day announced in November 2023,” the release said.

January natural gas futures were trading at Rs 312.70 on MCX during the initial hour of trading on Monday against the previous close of Rs 332.80, down by 6.04 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), January cottonseed oilcake contracts were trading at Rs 3169 in the initial hour of trading on Monday against the previous close of Rs 3159, up by 0.32 per cent.

January dhaniya futures were trading at Rs 10100 on NCDEX in the initial hour of trading on Monday against the previous close of Rs 10214, down by 1.12 per cent.

Source: The Hindu Business Line 

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