Rising tensions between Russia and Ukraine added support to the market on Monday morning
Crude oil futures traded higher on Monday morning after Ukraine launched drone attacks on Russian airbases.
At 9.53 am on Monday, August Brent oil futures were at $64.30, up by 2.42 per cent, and July crude oil futures on WTI (West Texas Intermediate) were at $62.53, up by 2.86 per cent. June crude oil futures were trading at ₹5,349 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday against the previous close of ₹5,203, up by 2.81 per cent, and July futures were trading at ₹5,287 against the previous close of ₹5,146, up by 2.57 per cent.
A Bloomberg report said that Ukraine’s drone attacks on Russian airbases on Sunday damaged more than 40 aircraft, including the Tu-95 and Tu-22 M3 long-range bombers capable of deploying conventional and nuclear weapons as well as the A-50. Ukraine’s Security Service Chief Vasyl Malyuk led the operation.
Ukraine came under one of the longest barrages from Russian missiles and drones earlier on Sunday. Reports said that at least 12 people were killed in a strike on a military training centre, prompting Ukraine Ground Forces Commander Mykhaylo Drapatyi to announce his decision to resign due to the casualties.
In their Commodities Feed for Monday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said rising tensions between Russia and Ukraine added support to the market on Monday morning. Ukraine carried out large-scale drone attacks on several Russian airfields, which comes ahead of peace talks between Russia and Ukraine this week.
They also said that some US senators are pushing for harder sanctions against Russia, with a proposal to impose 500 per cent tariffs on imports from countries that buy Russian oil. Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal hope to have sanctions in place by the time of the G-7 summit in mid-June.
While US President Donald Trump appears to be increasingly frustrated with Russian President Vladimir Putin, he’s so far been reluctant to impose additional sanctions. Actions that successfully target Russian oil flows will change the outlook for the oil market drastically, they said.
OPEC+ meet
On Saturday, the Organisation of the Petroleum Exporting Countries and allies, known as OPEC+, decided to increase oil output by 411,000 barrels per day in July.
The virtual meeting of the eight OPEC+ countries — Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman – noted that this measure will provide an opportunity for the participating countries to accelerate their compensation. An OPEC+ media statement said that the eight countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation, including the additional voluntary production adjustments that were agreed to be monitored during the meeting held on April 3, 2024.
They also confirmed their intention to fully compensate for any overproduced volume since January 2024. The eight OPEC+ countries will hold monthly meetings to review market conditions, conformity, and compensation. The eight countries will meet on July 6 2025 to decide on August production levels, the statement said.
June natural gas futures were trading at ₹302 on MCX during the initial hour of trading on Monday against the previous close of ₹296.40, up by 1.89 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June jeera contracts were trading at ₹20750 in the initial hour of trading on Monday against the previous close of ₹21015, down by 1.26 per cent.
June guargum futures were trading at ₹9562 on NCDEX in the initial hour of trading on Monday against the previous close of ₹9598, down by 0.38 per cent.
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Published on June 2, 2025