Norwegian offshore workers’ strike boost crude oil prices

Supply side constraints helped crude oil futures to trade higher on global exchanges on Tuesday morning.

At 10.04 am on Tuesday, September Brent oil futures were at $113.61, up by 1.77 per cent, and August crude oil futures on WTI were at $110.39, up by 1.81 per cent.

July crude oil futures were trading at ₹8,726 on Multi Commodity Exchange (MCX) in the early trade against the previous close of ₹8,722, up by 0.05 per cent; and August futures were trading at ₹8,512 against the previous close of ₹8510, up by 0.02 per cent.

The crude oil market, facing tight supply situation witnessed yet another jolt as the offshore workers in Norway began a strike on Tuesday impacting the production.

6.5% output at stake

A Reuters report said the workers are demanding an increase in their wages. This strike is expected to lead to a reduction in production by around 130,000 barrels or 6.5 per cent of the country’s daily oil production, it said.

This comes at a time when the crude oil market is affected by the supply cuts from Russia. The US and other major economies have imposed sanctions on the Russian crude oil imports due to its war with Ukraine.

Mentha oil, dhaniya gain

July mentha oil futures were trading at ₹1,012.10 on MCX in the early trade against the previous close of ₹1,005.70, up by 0.64 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), the July dhaniya futures were trading at ₹12,108 against the previous close of ₹12,026, up by 0.68 per cent.

July turmeric (farmer polished) contracts were trading at ₹8,036 on NCDEX against the previous close of ₹8,108, down by 0.89 per cent.

Published on

July 05, 2022

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