Crude oil futures traded lower on Friday morning despite fading prospects for a Russia-Ukraine peace deal.
At 9.57 am on Friday, October Brent oil futures were at $67.56, down by 0.16 per cent, and October crude oil futures on WTI (West Texas Intermediate) were at $63.45, down by 0.11 per cent. September crude oil futures were trading at ₹5,555 on Multi Commodity Exchange (MCX) during the initial hour of trading on Friday against the previous close of ₹5,563, down by 0.14 per cent, and October futures were trading at ₹5,544 against the previous close of ₹5,546, down by 0.04 per cent.
There were reports of airstrikes by Russia near the EU border, and strikes by Ukraine on a Russian oil refinery. This follows a recent US-brokered initiative to end the conflict between two nations.
In their Commodities Feed for Friday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said oil prices moved higher on Thursday as the initial enthusiasm over progress towards a ceasefire between Russia and Ukraine continues to fade.
It’s proving difficult to set up a Putin-Zelensky summit, while discussions around potential security guarantees face obstacles. Russia suggests, for example, that it should be part of any security guarantees for Ukraine. Not helping matters is Russia launching its largest strike on Ukraine in over a month. The less likely a ceasefire looks, the more likely the risk of tougher sanctions, they said.
Meanwhile, US President Donald Trump’s trade advisor, Peter Navarro, said he expects that secondary tariffs on India for its purchases of Russian oil to go ahead next week. An additional 25 per cent tariff is set to come into effect on August 27.
“While Indian refiners initially took a step back from buying Russian crude when these tariffs were announced, reports are that attractive discounts have Indian refiners showing increased interest once again. This poses upside risk for the oil market. If tariffs push India away from buying Russian oil, and Russia can’t divert this supply to other buyers, domestic producers would be forced to reduce supply. However, this is less of a concern if India continues with its Russian crude purchases,” they said.
September natural gas futures were trading at ₹254.60 on MCX during the initial hour of trading on Friday against the previous close of ₹256.50, down by 0.74 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), September dhaniya contracts were trading at ₹7,932 in the initial hour of trading on Friday against the previous close of ₹7,954, down by 0.28 per cent.
September jeera futures were trading at ₹19,370 on NCDEX in the initial hour of trading on Friday against the previous close of ₹19,420, down by 0.26 per cent.
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Published on August 22, 2025