Crude Oil Futures Ease On MCX As Traders Track Union Budget And Global Energy Developments

The February crude oil futures contract on MCX traded around ₹6010 per barrel in early Sunday activity. The contract was moderately lower compared with its previous close, reflecting cautious positioning ahead of the Union Budget 2026 announcement.

Traders were monitoring fiscal updates closely, as Budget decisions often influence energy demand expectations and speculative flows. Global developments also contributed to the subdued tone in the commodity’s early movement.

Crude Oil Futures Trade Softer Ahead of Budget Announcement

The February crude oil futures contract opened lower and hovered near ₹6010 per barrel during initial trading on MCX. This mild decline came as participants awaited key fiscal measures that could affect energy‑linked sectors.

Budget day typically brings heightened trading activity across commodity markets due to its potential impact on consumption and taxation. Market participants maintained a wait‑and‑watch stance, reflecting both domestic and international uncertainties.

MCX Trading Supported by Budget‑Day Operations

The session took place during a rare Sunday opening for MCX, which aligned its schedule with the Union Budget 2026 presentation. MCX began operations with a special live trading session from 8:45 am to 8:59 am (IST).

Regular trading continued from 9:00 am to 5:00 pm (IST), offering full‑day participation for crude oil and other commodity contracts. The exchange also kept its client code modification window open until 5:15 pm (IST) to facilitate end‑of‑session adjustments.

Geopolitical Factors Shape Global Crude Dynamics

Beyond domestic events, global energy markets reacted to new geopolitical developments involving the United States and Venezuela. Early today, US President Donald Trump announced an energy trade initiative that would allow India and selected nations to resume crude purchases from Venezuela.

This move followed political changes in Caracas and was positioned as a step to reduce reliance on Russian crude amid sanctions‑related tensions. The development signalled how policy decisions can rapidly alter supply routes and crude cargo flows across continents.

Potential Implications for India’s Crude Sourcing

India’s crude oil sourcing strategy has historically been influenced by geopolitical stability and pricing considerations. The resumption of Venezuelan shipments may diversify import options for Indian refiners if trade channels reopen smoothly.

Such changes often influence medium‑term supply distribution and refine purchasing patterns for state‑owned and private refiners. Market participants tracked the announcement closely to assess how evolving alliances could reshape bilateral energy trade volumes.

Read More: Are MCX and NCDEX Open or Closed on February 1, 2026.

Conclusion

Crude oil futures traded mildly lower on MCX at the start of a rare Sunday session aligned with the Union Budget 2026. The price movement reflected cautious sentiment as traders awaited fiscal announcements with potential implications for the energy sector.

Global factors, including the US‑led initiative enabling renewed crude purchases from Venezuela, added to the day’s market considerations. Together, these domestic and international developments shaped a measured start for crude oil futures trading.

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