The crude oil market remained cautious on Monday morning following uncertainties over the US debt ceiling talks.
At 9.55 am on Monday, July Brent oil futures were at $75.04, down by 0.71 per cent, and July crude oil futures on WTI were at $71.16, down by 0.74 per cent.
June crude oil futures were trading at ₹5,911 on Multi Commodity Exchange (MCX) in the initial trading hour of Monday morning against the previous close of ₹5,929, down by 0.30 per cent, and July futures were trading at ₹5,931 as against the previous close of ₹5,948, down by 0.29 per cent.
- Also read: Why the new gas pricing policy works
Key US meet again this week
After the negotiations on increasing the spending limit failing to reach any conclusion last week, the Democrat and Republican lawmakers are likely to meet again this week to discuss the issue.
Reports said US President Joe Biden and Republican Speaker Kevin McCarthy will continue negotiations on Monday. The two leaders held an interaction over the phone as Biden flew back from Japan after attending the G7 meeting.
US Treasury Secretary Janet Yellen cautioned that the US could default on debt by June 1, if there is no deal to raise the US debt ceiling by then.
Any default by the US government could lead to a recession in that country impacting the demand for commodities such as crude oil. US is a major consumer of crude oil in the global market.
- Also read:What’s wrong with importing Russian oil?
Cotton, jeera, turmeric decline
June cotton candy futures were trading at ₹59,800 on MCX in the initial trading hour of Monday morning against the previous close of ₹60,960, down by 1.90 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June turmeric (farmer polished) contracts were trading at ₹8,040 in the initial trading hour of Monday morning against the previous close of ₹8,222, down by 2.21 per cent.
June jeera futures were trading at ₹44,800 on NCDEX in the initial trading hour of Monday morning against the previous close of ₹45,660, down by 1.88 per cent.