Crude oil futures traded lower on Wednesday morning despite US President Donald Trump’s continued threats of fresh tariffs on European nations over the Greenland issue, as markets fear that such a move could slow global economic growth.

At 9.59 am on Wednesday, March Brent oil futures were at $64.22, down by 1.08 per cent, and March crude oil futures on WTI (West Texas Intermediate) were at $59.79, down by 0.94 per cent. February crude oil futures were trading at Rs 5,488 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of Rs 5,517, down by 0.53 per cent, and March futures were trading at Rs 5,498 against the previous close of Rs 5,520, down by 0.40 per cent.

In a post on social media platform Truth Social on Tuesday, Trump said Greenland is imperative for national and world security. “There can be no going back — On that, everyone agrees! The United States of America is the most powerful Country anywhere on the Globe, by far,” he said, adding, “We are the only POWER that can ensure PEACE throughout the World — And it is done, quite simply, through STRENGTH!”

Criticising the NATO ally the United Kingdom in another post, he said: “Shockingly, our “brilliant” NATO Ally, the United Kingdom, is currently planning to give away the Island of Diego Garcia, the site of a vital U.S. Military Base, to Mauritius, and to do so FOR NO REASON WHATSOEVER. There is no doubt that China and Russia have noticed this act of total weakness.”

He said the UK giving away extremely important land is an act of ‘great stupidity’, and is another in a very long line of national security reasons why Greenland has to be acquired. Denmark and its European allies have to ‘do the right things’, he added.

Meanwhile, latest reports indicate that the resumption of oil production from Kazakhstan’s Tengiz and Korolevskoye fields may take some more days.

A Reuters report, which quoted three unnamed industry sources, said oil production at Kazakhstan’s vast Tengiz oilfield, one of the world’s largest, could be halted for another 7-10 days after shutting down on Sunday, cutting crude exports via the Caspian Pipeline Consortium. On Monday, the operator Tengizchevroil had stated that production at the Tengiz and Korolevskoye fields had been stopped because of power supply problems.

February natural gas futures were trading at Rs 293.50 on MCX during the initial hour of trading on Wednesday against the previous close of Rs 290.30, up by 1.10 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), April dhaniya contracts were trading at Rs 12,038 in the initial hour of trading on Wednesday against the previous close of Rs 11,884, up by 1.30 per cent.

April turmeric (farmer polished) futures were trading at Rs 17,662 on NCDEX in the initial hour of trading on Wednesday against the previous close of Rs 17,780, down by 0.66 per cent. 

Source: The Hindu Business Line 

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