Crude oil futures traded lower on Thursday morning, as diplomatic efforts to resolve the West Asia conflict eased supply concerns, according to The Hindu BusinessLine. At 10 am, Brent oil futures for November were at $86.59, down 0.40 per cent, while October crude oil futures on the West Texas Intermediate (WTI) were at $81.89, down 0.41 per cent.
Crude Futures Slide Across Exchanges
On the Multi Commodity Exchange (MCX), September crude oil futures were trading at ₹7,838 in the initial hour of trading on Thursday, down 0.75 per cent from the previous close of ₹7,897. October futures on MCX were at ₹7,735, down 0.76 per cent from the previous close of ₹7,794.
| Contract | Price | Previous Close | Change |
|---|---|---|---|
| Brent crude futures, November | $86.59 | — | -0.40% |
| WTI crude futures, October | $81.89 | — | -0.41% |
| MCX crude futures, September | ₹7,838 | ₹7,897 | -0.75% |
| MCX crude futures, October | ₹7,735 | ₹7,794 | -0.76% |
Diplomacy in Focus: Qatar, Iran and Oman Move on Strait of Hormuz
According to a Reuters report cited by The Hindu BusinessLine, Qatari Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani will discuss the continuation of Qatar's mediation efforts and other developments in the region during his visit to Tehran on Thursday. Sheikh Mohammed would also address freedom of navigation in the Strait of Hormuz and the need to return to the status quo before February 28.
Quoting an unnamed Iranian source, Reuters reported that Iran and Oman are working on finalising details of an agreement to control the Strait of Hormuz, after Iran's Revolutionary Guards said the two countries had agreed how to share the waterway. The diplomatic push comes as markets closely watch the Strait of Hormuz, a critical chokepoint for global crude shipments.
US EIA Data: Crude Stocks Tick Up, Products Fall
The weekly petroleum status report from the US Energy Information Administration (EIA) showed a marginal increase in crude inventories, according to The Hindu BusinessLine. US commercial crude oil inventories increased by 0.1 million barrels for the week ending August 21, standing at 428.9 million barrels — 1 per cent above the five-year average for this time of year.
US commercial crude oil inventories stood at 428.9 million barrels, 1 per cent above the five-year average, according to the EIA.
- Motor gasoline inventories decreased by 2.5 million barrels last week and were 6 per cent below the five-year average.
- Distillate fuel inventories decreased by 2.2 million barrels and were about 14 per cent below the five-year average.
Demand-side data from the EIA showed total products supplied in the US over the last four-week period averaged 20.5 million barrels per day, down 3 per cent from the same period last year. Motor gasoline product supplied averaged 8.9 million barrels per day, down 1.1 per cent; distillate fuel product supplied averaged 3.8 million barrels per day, down 2.2 per cent; and jet fuel product supplied was down 2.3 per cent compared with the same four-week period last year.
Zinc, Turmeric, Guargum: Other Commodity Movers
Outside the energy complex, September zinc futures on MCX were trading at ₹418.40 against the previous close of ₹413.80, up 1.11 per cent. On the National Commodities and Derivatives Exchange (NCDEX), October turmeric (farmer polished) contracts were at ₹19,172, down 1.45 per cent from the previous close of ₹19,454. September guargum futures on NCDEX were at ₹11,940, down 0.78 per cent from the previous close of ₹12,034.
The fall in crude oil prices, combined with mixed inventory data, will be closely watched by commodity traders and procurement teams monitoring West Asia supply risks. The diplomatic signals — including Qatar's mediation and Iran-Oman discussions — are key to assessing whether the threat premium in crude continues to unwind.
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