Crude oil prices trade 1 pc lower amid US-Iran negotiation uncertainty
New Delhi, June 2
Global crude oil prices traded lower on Tuesday after posting sharp gains in the previous session as markets continued to assess uncertainty surrounding US-Iran negotiations.
International benchmark Brent crude was trading around 1 per cent lower at $94.04 per barrel. Similarly, US West Texas Intermediate (WTI) crude declined more than 1 per cent to $91.14 per barrel.
In the domestic market, crude oil futures for June delivery were trading at Rs 8,708, down Rs 28 or 0.32 per cent on the Multi Commodity Exchange (MCX). The commodity touched an intraday high of Rs 8,751 and a low of Rs 8,690 as of 10:30 am.
In the previous session, both benchmarks had surged around 5 per cent before paring some gains as traders weighed conflicting signals surrounding negotiations between Washington and Tehran.
US President Donald Trump said he had not been informed that Iran had suspended talks with Washington and maintained that discussions were continuing.
However, reports suggested that Tehran had halted indirect negotiations with the US.
Trump also said he expected an agreement to extend the ceasefire and reopen the Strait of Hormuz within the next week, while adding that he would not mind if negotiations ended.
Meanwhile, Lebanon announced a partial ceasefire between Hezbollah and Israel.
In the currency market, the Indian rupee opened at 95.05 against the US dollar compared to Monday's close of 95.
Domestic equity markets also opened lower on Tuesday amid geopolitical tensions and concerns over a weak monsoon forecast.
The Sensex opened at 73,945.20, down 322 points or 0.43 per cent from the previous close, while the Nifty started the session at 23,229.15, lower by 153.45 points or 0.65 per cent.
Asia stocks showed a mixed trend, with the Nikkei trading 2 per cent lower, while South Korea's KOSPI slipped nearly 3 per cent. Hong Kong's Hang Seng, however, was trading about 1 per cent higher.
— IANS
Reader Comments
Interesting how the rupee is also sliding alongside crude. 95 vs dollar? That's brutal for imports. We need to push harder for electric vehicles and renewable energy to reduce this dependency. At this rate, commuting is going to become a luxury! 🚗💨
I'm from Canada and we're feeling it too. Gas prices up 15% in a month. Everyone's worried about inflation. The US-Iran thing is a rollercoaster - one day they talk, next day they don't. Trump's "I wouldn't mind if talks end" attitude isn't helping anyone.
The Lebanon-Hezbollah ceasefire is actually a positive in all this mess. If that holds, it might calm some nerves in the region. But domestic markets down, monsoon weak forecast, rupee falling - feels like a perfect storm brewing for our economy. Need strong leadership in these times. 💪
I work in the energy sector in the UK and the volatility is insane. Brent swinging from 5% up to 1% down in two days? Oil traders must be having heart attacks. The Strait of Hormuz reopening could be a gamechanger, but Trump's unpredictability doesn't inspire confidence. Let's see what happens.
As someone who drives 50 km daily to work in Bangalore traffic, this is frustrating. My fuel bill has gone up by Rs 2000 per month compared to last year. The government should consider reducing excise duty temporarily to give us some relief. Petrol at Rs 110+ per litre is not sustainable for the common man. 🛣️
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