As of 9:54 AM on Tuesday, crude oil futures showed a modest decline due to bearish demand sentiment. November Brent crude oil futures were trading at $71.76, marking a decrease of 0.11%, while October West Texas Intermediate (WTI) crude oil futures were at $68.61, down by 0.15%.
On the Multi Commodity Exchange (MCX), September crude oil futures were trading at ₹5772, slightly down by 0.07% from the previous close of ₹5776. Meanwhile, October futures were at ₹5740, a marginal increase of 0.02% from the previous close of ₹5739.
Commodity traders, including Gunvor and Trafigura, who participated in the Asia Pacific Petroleum Conference (APPEC) on Monday, have forecasted that oil prices may range between $60 and $70 per barrel. This outlook is driven by weakened Chinese demand and a persistent global oversupply. Ben Luckock, Global Head of Oil at Trafigura, suggested that prices might soon fall into the $60s. Torbjorn Tornqvist, Co-founder and Chairman of Gunvor, indicated that oil’s fair value is around $70 per barrel, citing an excess of production over consumption that is expected to worsen in the coming years.
Despite a bearish tone from APPEC, ING’s Warren Patterson and Ewa Manthey noted that oil prices stabilized on Monday, with Brent crude settling 1.1% higher. They pointed to Tropical Storm Francine in the Gulf of Mexico as a potential market support factor. The storm, which is expected to be upgraded to a hurricane by Wednesday upon reaching the Louisiana coast, has led to platform shutdowns and worker evacuations by major operators including Chevron, Exxon, and Shell. The storm’s impact could disrupt U.S. Gulf Coast refinery operations, adding to market concerns.
In related markets, September natural gas futures on MCX were trading at ₹180.20, up by 1.2% from the previous close of ₹182.40. On the National Commodities and Derivatives Exchange (NCDEX), September jeera contracts were trading at ₹24905, down by 0.78% from the previous close of ₹25100. October turmeric futures were at ₹14114, a decrease of 0.56% from the previous close of ₹14194.
