Crude oil futures traded higher on Wednesday morning following reports that Iran would not hold direct talks with US representatives in Doha, according to The Hindu BusinessLine. At 10.02 am on Wednesday, September Brent oil futures on ICE were at $73.22 per barrel, up by 0.37%, and August crude oil futures on WTI (West Texas Intermediate) on NYMEX were at $69.74 per barrel, up by 0.35%. On the Multi Commodity Exchange (MCX), July crude oil futures were trading at ₹6,632 against the previous close of ₹6,617, up by 0.23%, and August futures were at ₹6,642 against the previous close of ₹6,627, up by 0.23%.
Price Moves and Geopolitical Trigger
| Contract | Exchange | Price | Change |
|---|---|---|---|
| September Brent | ICE | $73.22/barrel | +0.37% |
| August WTI | NYMEX | $69.74/barrel | +0.35% |
| July MCX Crude | MCX | ₹6,632 | +0.23% |
| August MCX Crude | MCX | ₹6,642 | +0.23% |
The climb followed reports that Iran will not hold direct talks with US representatives in Doha. The US team, represented by Jared Kushner (son-in-law of US President Donald Trump) and Steve Witkoff, is in Doha now. However, Iran and the host Qatar said the US representatives would meet the mediators, and not the Iranian team.
Iran’s Stance on Negotiations
Earlier this week, Iran’s Foreign Ministry spokesperson Esmaeil Baghaei stated that Iran will not have any negotiation meetings at any level with the American side in the coming days. He added that though Iran is sending its technical delegation to Qatar, this had no relation to the visit of the US team to Doha.
Supply: Strait of Hormuz Tanker Movements and US Record Output
In their Commodities Feed for Wednesday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said tanker vessel movements in the Strait of Hormuz still appear limited. Total tanker crossings, which include both inbound and outbound movements, are estimated at around 11 on Tuesday, down from a peak of 24 last Wednesday. There has been a slight pickup in inbound tanker traffic, suggesting that shipowners are becoming increasingly confident about moving vessels into the Persian Gulf, they said.
“Total tanker crossings, which include both inbound and outbound movements, are estimated at around 11 on Tuesday, down from a peak of 24 last Wednesday.” — Warren Patterson and Ewa Manthey, ING Think
Meanwhile, the latest data from the US Energy Information Administration (EIA) shows that the US boosted crude oil production to a record level in April. Supply climbed to a record 13.93 million barrels a day, up 1.6% month-on-month and 3.5% higher year-on-year. The monthly figures also show total crude and petroleum product exports surging to a new record 13.61 million barrels a day in April, up 1.74 million barrels a day month-on-month and 3.26 million barrels a day year-on-year. According to ING Think, the surge in US oil exports has helped the market offset some of the supply losses from the Persian Gulf.
| Metric | Value | M/M Change | Y/Y Change |
|---|---|---|---|
| US crude oil production (April) | 13.93 million bpd | +1.6% | +3.5% |
| US crude & product exports (April) | 13.61 million bpd | +1.74 million bpd | +3.26 million bpd |
Other Commodities Update
In other markets tracked by The Hindu BusinessLine, July nickel futures on MCX were trading at ₹1,576.90, down by 1.05% from the previous close of ₹1,593.60. On the National Commodities and Derivatives Exchange (NCDEX), July jeera contracts were at ₹20,455, down 0.51% from ₹20,560, and August turmeric (farmer polished) futures were at ₹17,082, down 0.58% from ₹17,182.
The geopolitical uncertainty around Iran-US talks and the limited Strait of Hormuz traffic provide a floor for crude prices, while record US production and exports help balance the market, according to ING Think’s analysis. Traders now await further developments from Doha and the next weekly EIA inventory report for additional direction.
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