Crude oil futures traded lower on Wednesday morning after Russia agreed to a proposal by the US to halt attacks on Ukraine’s energy infrastructure temporarily.

At 9.57 am on Wednesday, May Brent oil futures were at $70.33, down by 0.33 per cent, and May crude oil futures on WTI (West Texas Intermediate) were at $66.52, down by 0.34 per cent. March crude oil futures were trading at ₹5,766 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of ₹5,796, down by 0.52 per cent, and April futures were trading at ₹5,789 against the previous close of ₹5,808, down by 0.33 per cent.

Market is hopeful that a temporary peace deal between Russia and Ukraine on stop attacking each other’s energy infrastructure would pave the way for lifting sanctions on Russian oil. This in turn could boost supplies to the global market. Russia is one of the major producers of crude oil in the global market.

A post by the US President Donald Trump on the social media platform Truth Social said: “My phone conversation today with President Putin of Russia was a very good and productive one. We agreed to an immediate Ceasefire on all Energy and Infrastructure, with an understanding that we will be working quickly to have a Complete Ceasefire and, ultimately, an END to this very horrible War between Russia and Ukraine. This War would have never started if I were President! Many elements of a Contract for Peace were discussed, including the fact that thousands of soldiers are being killed, and both President Putin and President Zelenskyy would like to see it end. That process is now in full force and effect, and we will, hopefully, for the sake of Humanity, get the job done!”

Added to this, the data released by the industry body American Petroleum Institute (API) showed an increase in crude oil inventory level in the US for the week ending March 14. According to API, crude oil inventories in the US increased by 4.59 million barrels for the week ending March 14. Market was expecting the inventories to increase by 1.17 million barrels during the period.

The US EIA (Energy Information Administration) is expected to release the official data on crude oil inventories later on Wednesday. This will give a clear idea on the inventory levels in the US.

Crude oil prices got some support from the developments in West Asia. According to reports, Israel targeted Gaza Strip on Wednesday resulting in many fatalities. The US has also announced that it would continue to attack on the Houthis until they end their attacks on US ships and drones in Red Sea.

Market players feel that the increase in tensions in West Asia could impact the crude oil supplies from the region to the world market.

March natural gas futures were trading at ₹353.30 on MCX during the initial hour of trading on Wednesday against the previous close of ₹355.40, down by 0.59 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), March cottonseed oilcake contracts were trading at ₹2,748 in the initial hour of trading on Wednesday against the previous close of ₹2,740, up by 0.29 per cent.

April jeera futures were trading at ₹21,515 on NCDEX in the initial hour of trading on Wednesday against the previous close of ₹21,550, down by 0.16 per cent.