Crude oil futures traded higher on Tuesday morning as more oil tankers decided to avoid the southern Red Sea route on Monday.
At 9.54 am on Tuesday, March Brent oil futures were at $78.29, up by 0.18 per cent, and March crude oil futures on WTI (West Texas Intermediate) were at $72.66, up by 0.07 per cent.
January crude oil futures were trading at ₹6025 on the Multi Commodity Exchange (MCX) during initial trading, against the previous close of ₹6008, up by 0.28 per cent, and February futures were trading at ₹6066, as against the previous close of ₹6049, up by 0.28 per cent.
Market reports said at least six oil tankers decided to avoid the southern Red Sea route on Monday. This followed the increase in tensions in the region due to air-borne attacks by US-led forces on Houthi targets in Yemen.
A Reuters report said the US-led Combined Maritime Forces (CMF) on Friday warned all the ships to avoid the Bab al-Mandab Strait at the south end of the Red Sea. This followed the attack on Houthi targets in Yemen.
Meanwhile, a spokesperson for the Houthis told Al Jazeera that it would target US and the British ships in the Red Sea region, in addition to Israeli ships. This decision came after the US-led forces attacked Houthi targets in Yemen.
Heightened tension in the West Asia region and the decision by some oil tankers to avoid the southern Red Sea route will lead to a disruption in global oil supplies.
Dhaniya up, cottonseed oilcake down
January natural gas futures were trading at ₹256.60 on the MCX in the initial trading hour of Tuesday morning, against the previous close of ₹255.10, up by 0.59 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), April dhaniya contracts were trading at ₹7702 in the initial trading hour of Tuesday morning, against the previous close of ₹7684, up by 0.23 per cent.
February cottonseed oilcake futures were trading at ₹2698 on NCDEX in the initial trading hour of Tuesday morning, against the previous close of ₹2702, down by 0.15 per cent.