Crude oil futures traded higher on Tuesday morning as Israel continued with strikes in the southern Gaza city of Rafah.
At 9.52 am on Tuesday, July Brent oil futures were at $83.57, up by 0.29 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $78.72, up by 0.31 per cent.
May crude oil futures were trading at ₹6,583 on the Multi Commodity Exchange (MCX) during initial trading on Tuesday morning against the previous close of ₹6,542, up by 0.63 per cent, and June futures were trading at ₹6,572 against the previous close of ₹6,531, up by 0.63 per cent.
Continuing tension boosts crude oil
According to reports, Hamas agreed to a ceasefire proposal put forward by the mediators on Monday. However, Israel rejected it as the peace deal proposal terms did not meet its demands, and it continued with strikes in the southern Gaza city of Rafah. Israel also decided to continue negotiations on the ceasefire deal.
Market reports said Israeli forces struck Rafah from the air and ground, and asked residents to leave parts of the city. Many displaced Palestinians are taking refuge in Rafah.
The continued tension between Israel and Hamas has helped boost the prices of crude oil, as the market fears that escalation in tension could disrupt crude oil supplies to the world market.
The decision of Saudi Arabia to increase its official selling price of crude oil also helped boost the price of the commodity. Saudi Arabia increased the official selling price of crude oil sold to Asia, Northwest Europe and the Mediterranean in June. Saudi increased the price of Arab Light crude $2.90 a barrel above the Oman/Dubai average in June.
Jeera gains, dhaniya loses
May natural gas futures were trading at ₹181.50 on MCX against the previous close of ₹186.30, down by 2.58 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), May jeera contracts were trading at ₹25,275 in the initial hour of trading on Tuesday morning against the previous close of ₹25,060, up by 0.86 per cent.
May dhaniya futures were trading at ₹7,240 on NCDEX in the initial hour of trading on Tuesday morning against the previous close of ₹7,326, down by 1.17 per cent.
