At 10 am on Friday, July Brent oil futures were at $64.66, up by 0.20%, and June crude oil futures on WTI (West Texas Intermediate) were at $61.74, up by 0.19%
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Dado Ruvic
Crude oil futures traded higher on Friday morning, despite concerns about oversupply stemming from a probable nuclear deal between the US and Iran.
At 10 am on Friday, July Brent oil futures were at $64.66, up by 0.20 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $61.74, up by 0.19 per cent. May crude oil futures were trading at ₹5,286 on Multi Commodity Exchange (MCX) during the initial hour of trading on Friday against the previous close of ₹5,271, up by 0.28 per cent, and June futures were trading at ₹5,264 against the previous close of ₹5,257, up by 0.13 per cent.
On Thursday, US President Donald Trump said that the US was “getting close” to reaching a nuclear deal with Iran. He had also stated that Iran had “sort of” agreed to the US terms. Quoting a source familiar with the talks, a Reuters report said there were still gaps to bridge.
In their Commodities Feed for Friday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said the oil market sold off on Thursday following comments from Trump that the US and Iran were moving closer towards a nuclear deal. A nuclear deal that lifts sanctions will obviously remove a lot of the supply risk hanging over the market for some time now. In addition, it would allow Iran to increase oil output with more willing buyers for its oil. This could result in additional supply in the neighbourhood of 400,000 barrels a day, they said.
ING Think’s Commodities Feed said that there are plenty of concerns over the demand outlook for the market. This was evident in IEA’s (International Energy Agency) monthly oil market report released on Thursday.
The IEA’s Monthly Oil Market Report said that world oil supply looks on track to rise by 1.6 million barrels a day to 104.6 million barrels a day on average in 2025, and by an additional 970,000 barrels a day in 2026. Non-OPEC+ producers are set to add 1.3 million barrels a day this year and 820,000 barrels a day next year. Based on the latest plans, the Organisation of the Petroleum Exporting Countries and allies, known as OPEC+, will add 310,000 barrels a day of extra supply this year and 150,000 barrels a day in 2026.
The IEA report said that the global oil demand growth is projected to slow from 990,000 barrels a day in first quarter of 2025 to 650,000 barrels a day for the remainder of the year as economic headwinds and record EV sales curb use. Demand growth averages 740,000 barrels a day in 2025 and 760,000 barrels a day in 2026, it said.
May natural gas futures were trading at ₹288.20 on MCX during the initial hour of trading on Friday against the previous close of ₹292.10, down by 1.34 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June dhaniya contracts were trading at ₹7100 in the initial hour of trading on Friday against the previous close of ₹7066, up by 0.48 per cent.
June jeera futures were trading at ₹21730 on NCDEX in the initial hour of trading on Friday against the previous close of ₹21830, down by 0.46 per cent.
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Published on May 16, 2025