Crude oil futures traded higher on Tuesday morning amid market concerns over potential supply disruptions following recent Ukrainian attacks on Russian energy infrastructure.

At 9.56 am on Tuesday, December Brent oil futures were at $65.65, up by 0.27 per cent, and November crude oil futures on WTI (West Texas Intermediate) were at $61.86, up by 0.28 per cent.

October crude oil futures were trading at ?5502 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday against the previous close of ?5491, up by 0.20 per cent, and November futures were trading at ?5486 against the previous close of ?5478, up by 0.15 per cent.

In their Commodities Feed, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said Ukraine claims to have attacked one of Russia’s largest oil refineries, Kinef oil refinery.

This refinery holds an annual processing capacity of over 20 million tonnes. The attack took place over the weekend (the second time in a month), as Ukraine continues to put pressure on Russia’s energy infrastructure, they said.

Some market report said the recovery of the refinery could take about a month. This could temporarily impact the regional supply of fuel products in Russia.

ING Think’s Commodities Feed said the Organization of the Petroleum Exporting Countries and allies (OPEC+) agreed to boost crude oil production by 137,000 barrels a day in November (similar to last month), in contrast to markets expecting a more aggressive reintroduction of supply.

“The group remains cautious about increasing its production share in the global oil market on predictions of an upcoming supply surplus in the fourth quarter as well as next year. Last month, the IEA also predicted a record oil surplus for next year, primarily on rising OPEC+ supply,” the Feed said.

Meanwhile, the US government shutdown, which has been in effect since October 1, has led to fears over a major economic impact on the US.

In a post on social media platform Truth Social, US President Donald Trump said: “Democrats have SHUT DOWN the United States Government right in the midst of one of the most successful Economies, including a Record Stock Market, that our Country has ever had. This has sadly affected so many programs, services, and other elements of Society that Americans rely on — And it should not have happened. I am happy to work with the Democrats on their Failed Healthcare Policies, or anything else, but first they must allow our Government to re-open.”

October nickel futures were trading at ?1340 on MCX during the initial hour of trading on Tuesday against the previous close of ?1350, down by 0.74 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), December cottonseed oilcake contracts were trading at ?2949 in the initial hour of trading on Tuesday against the previous close of ?2941, up by 0.27 per cent.

October dhaniya futures were trading at ?8502 on NCDEX in the initial hour of trading on Tuesday against the previous close of ?8512, down by 0.12 per cent.

Source: The Hindu Business Line 

#theshippingtribune #latestnews #shippingnews #dailynews #Maritimenews #shippingindustry #news #media #newsupdate #maritime #shippingnewsworldwide