Crude oil futures experienced an uptick on Monday morning, driven by heightened concerns over escalating conflict in the West Asia region.
As of 9:56 a.m. on Monday, October Brent crude oil futures were trading at $80.61, reflecting a 0.41% increase. Meanwhile, September West Texas Intermediate (WTI) crude oil futures were priced at $77.39, marking a 0.30% rise.
On the Multi Commodity Exchange (MCX), August crude oil futures were trading at ₹6492, up 0.22% from the previous close of ₹6478. September futures were at ₹6416, showing a 0.11% increase from the prior close of ₹6409.
Reports indicate that Hezbollah, which is backed by Iran, launched a rocket strike in the Israeli-occupied Golan Heights on Saturday, resulting in the deaths of 12 children and teenagers. In response, Israel’s security cabinet convened on Sunday and authorized the government to determine the appropriate response to the attack. Despite Hezbollah’s denial of involvement, Israel retaliated with strikes in southern Lebanon on Sunday.
Market participants are concerned that increased tensions in West Asia might disrupt crude oil supplies from the region. The rising conflict has also diminished hopes for a ceasefire between Israel and Hamas.
In addition, the market is awaiting the outcome of the upcoming meeting of the US Federal Reserve later this week. The prevailing expectation is that the Federal Reserve will maintain current interest rates, with a potential reduction anticipated in the September meeting.
In other commodities, August natural gas futures on MCX were trading at ₹176, up 1.32% from the previous close of ₹173.70. On the National Commodities and Derivatives Exchange (NCDEX), August guargum contracts were at ₹10815, a 0.81% increase from ₹10728. August jeera futures were trading at ₹26600, up 0.43% from ₹26485.
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