Crude oil futures traded lower on Wednesday morning as markets anticipated an increase in global oil supplies following a proposed peace agreement between the US and Iran.

At 10.04 am on Wednesday, August Brent oil futures were at $78.71, down by 0.32 per cent, and July crude oil futures on WTI (West Texas Intermediate) were at $75.69, down by 0.47 per cent. June crude oil futures were trading at Rs 7143 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of Rs 7175, down by 0.45 per cent, and July futures were trading at Rs 7111 against the previous close of Rs 7124, down by 0.18 per cent.

A Reuters report said that the interim peace deal, which is expected to be signed on Friday, will allow Iran to sell oil upon signing the agreement.

Under the deal, the US will end its blockade of Iran’s ports while Iran will restore the passage of oil tankers and other maritime traffic through the Strait of Hormuz, it said.

In a recent post on the social media platform Truth Social, US President Donald Trump had stated that Iran has agreed to never have a nuclear weapon. He also posted that many loaded oil ships are starting to move out of the Strait of Hormuz.

Meanwhile, Israeli Prime Minister Benajmin Netanyahu said on Monday that Israel is not bound by the proposed peace deal between the US and Iran, and his forces will not withdraw from southern Lebanon. However, US Vice President JD Vance contradicted by saying that the agreement included Israel and Lebanon.

July nickel futures were trading at Rs 1725 on MCX during the initial hour of trading on Wednesday against the previous close of Rs 1719.90, up by 0.30 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), June castor seed contracts were trading at Rs 6820 in the initial hour of trading on Wednesday against the previous close of Rs 6778, up by 0.62 per cent.

June cottonseed oilcake futures were trading at Rs 3646 on NCDEX in the initial hour of trading on Wednesday against the previous close of Rs 3683, down by 1 per cent.

Source: The Hindu Business Line 

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