Tuesday, March 5, 2024
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Crude oil up marginally as market awaits key hints from US economy, OPEC

Crude oil futures traded marginally higher on Monday morning as the markets awaited hints from the US economic data and the OPEC (Organisation of Petroleum Exporting Countries) meeting during the week.

At 9.56 am on Monday, September Brent oil futures were at $75.46, up by 0.07 per cent, and August crude oil futures on WTI (West Texas Intermediate) were at $70.67, up by 0.04 per cent.

July crude oil futures were trading at ₹5,798 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹5,799, down by 0.02 per cent, and August futures were trading at ₹5,828 as against the previous close of ₹5,827, up by 0.020 per cent.

Also read: Crude Check: Price not trending

US economic data

Though OPEC and its allies, known as OPEC+, is not conducting any policy meeting during the week, the executives from the oil industry are meeting with the energy ministers from OPEC+ during the week. The meeting is not expected to announce any production changes. However, it is likely to offer some hints to the market, as various factors are affecting the demand for crude oil in the global markets.

Added to this, the US is expected to come out with some economic data during the week. The data may provide some hints on the demand for the commodity in the global market’s largest consumer of crude oil.

Market reports also noted that the US Energy Department is planning for more crude oil purchases during the week to replenish its strategic petroleum reserves. The US had indicated recently that it would buy 12 million barrels of crude oil to replenish its reserves.

Meanwhile, a private survey in China showed an increase in the pace of growth in manufacturing activity in June. However, the growth was still below May’s growth.

The Caixin manufacturing purchasing manufacturers index of China read 50.5 for June against 50.9 in May. June month’s reading was above the market expectations of 50.2 per cent.

Also read: Index Outlook: Nifty 50, Sensex: Can scale more peaks

Turmeric gleams, jeera dips

July natural gas futures were trading at ₹222.90 on MCX against the previous close of ₹230.40, down by 3.26 per cent.

Jatin Gohil, Technical & Derivative Analyst at Reliance Securities, said international and domestic futures natural gas rose on Friday on a daily rise in the amount of gas flowing to LNG export plants, and forecasts for hotter-than-normal US weather to continue through mid-July and boost demand. NYMEX natural gas prices have started weaker this early Monday morning in Asian trade on profit booking, he said.

On the National Commodities and Derivatives Exchange (NCDEX), August turmeric (farmer polished) contracts were trading at ₹10,110 against the previous close of ₹9,858, up by 2.56 per cent.

July jeera futures were trading at ₹53,850 on NCDEX in the initial trading hour of Monday morning against the previous close of ₹54,975, down by 2.05 per cent.



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