Crude oil futures steadied around $67 per barrel on Tuesday after a sharp 6% plunge, marking the biggest single-day drop in two years and settling at a four-week low yesterday. The decline followed reports of Israel striking Iranian military targets without impacting oil or nuclear facilities, easing fears of supply disruptions. Additionally, Israeli Prime Minister Netanyahu signaled openness to a limited truce in Gaza, further reducing geopolitical risk premiums. With tensions calming, market attention has shifted back to fundamentals, particularly subdued Chinese demand growth and potential OPEC output increases. On the domestic front, MCX crude oil futures saw a mild recovery after hitting Rs 5648 per barrel, their lowest level since October 1st. Key U.S. data releases on growth and employment will also be in focus, providing additional cues for monetary policy direction.

Powered by Commodity Insights