Crude oil futures traded lower on Tuesday morning after US President Donald Trump said the US was engaged in ‘good talks’ with Iran to end the conflict in West Asia, according to The Hindu BusinessLine. At 10.02 am on Tuesday, October Brent oil futures on ICE were at $84.94, down by 1.08%, and September crude oil futures on NYMEX (WTI) were at $81.67, down by 1.14%. On the Multi Commodity Exchange (MCX), August crude oil futures traded at ₹7,840, down 1.47% from the previous close of ₹7,957, and September futures at ₹7,670, down 0.94%.
Geopolitical Trigger: Trump’s ‘Good Talks’ Comment
The price decline followed comments from US President Donald Trump, who said the US is in “good talks” with Iran. According to a Reuters report cited by The Hindu BusinessLine, Trump stated: “We’re having good talks. I think there’s a good chance that something could happen, and if it does, good, if it doesn’t, we go back to doing what we were doing two days ago.” Speaking at a campaign rally in Michigan on Monday, he also said: “You can’t bribe them (Iran). You’ve got to beat them, and we’ll beat the hell out of them. But we’ll see how it turns out. Right now, there are very friendly negotiations going on.”
Supply-Side Development: CPC Resumes Oil Lifting
In a separate supply-side development, the Caspian Pipeline Consortium (CPC) announced that it had resumed oil lifting on July 27 at its Marine Terminal, with two tankers berthed at single point moorings. The CPC facilities are now operating in standard mode, according to a media statement. However, further loading operations will be carried out subject to emerging circumstances and tanker positions confirmed by shippers. This major oil export terminal for Kazakhstan had faced disruptions following drone attacks by Ukraine.
Key Details of the CPC Pipeline
- Length: 1,511 km (Tengiz-Novorossiysk pipeline)
- Capacity: Transports over two-thirds of all Kazakhstan export oil, plus crude from Russian oil fields in the Caspian region.
- Terminal: CPC Marine Terminal is equipped with three single point moorings (SPMs) enabling safe tanker loading at a significant distance offshore.
Price Snapshot
The following table summarises the key commodity futures prices on Tuesday morning:
| Contract | Exchange | Price | Change |
|---|---|---|---|
| October Brent | ICE | $84.94 | -1.08% |
| September WTI | NYMEX | $81.67 | -1.14% |
| August Crude Oil | MCX | ₹7,840 | -1.47% |
| September Crude Oil | MCX | ₹7,670 | -0.94% |
| August Natural Gas | MCX | ₹265.50 | -1.12% |
Other Commodities
On the National Commodities and Derivatives Exchange (NCDEX), July Mumbai rainfall contracts traded at ₹2,637, down 0.57% from the previous close of ₹2,652. August turmeric (farmer polished) futures were at ₹20,480, down 1.95% from ₹20,888.
Outlook
Market participants are likely to monitor further developments in US-Iran talks, as well as the operational status of the CPC terminal. Any escalation or de-escalation in West Asia tensions will directly influence crude price trajectories.
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