Crude Oil Futures Fall Despite US Sanctions on Iranian Oil Network

Crude oil futures fell on Friday morning, despite reports that the U.S. had imposed sanctions on around 100 individuals, entities, and vessels connected to Iran’s oil network.

At 9.57 am on Friday, December Brent oil futures were at $64.97, down by 0.38 per cent, and November crude oil futures on WTI (West Texas Intermediate) were at $61.30, down by 0.34 per cent, The Caspian Post reports citing foreign media.

October crude oil futures were trading at ₹5,451 on Multi Commodity Exchange (MCX) during the initial hour of trading on Friday against the previous close of ₹5,462, down by 0.20 per cent, and November futures were trading at ₹5,431 against the previous close of ₹5,438, down by 0.13 per cent.

A Reuters report said that the US on Thursday imposed sanctions on around 100 individuals, entities and vessels, including a Chinese independent refinery and terminal, that helped Iran’s oil and petrochemicals trade.

According to the report, the US Treasury Department sanctioned the Shandong Jincheng Petrochemical Group, which it said, is an independent teapot refinery in Shandong Province that has purchased millions of barrels of Iranian oil since 2023.

The report said that the US also sanctioned China-based Rizhao Shihua Crude Oil Terminal, which operates a terminal at Lanshan Port. Apart from this, several vessels carrying crude oil were also sanctioned.

Meanwhile, the recent peace deal between Israel and Hamas helped lift sentiments in oil markets. The two-year conflict between Israel and Hamas had helped boost the crude oil prices. Any escalation in the conflict would have led to crude oil supply disruption in the oil rich West Asia region.

October natural gas futures were trading at ₹287.90 on MCX during the initial hour of trading on Friday against the previous close of ₹290.60, down by 0.93 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), October guarseed contracts were trading at ₹4,797 in the initial hour of trading on Friday against the previous close of ₹4,778, up by 0.40 per cent.

November jeera futures were trading at ₹19,310 on NCDEX in the initial hour of trading on Friday against the previous close of ₹19,280, up by 0.16 per cent.