Brent crude futures traded below $100 a barrel on Tuesday as manufacturing data from some countries showed a weaker economic outlook.
At 10.02 am, the October Brent oil futures were at $99.27, down by 4.52 per cent, and September crude oil futures on WTI were at $93.25, down by 0.68 per cent.
August crude oil futures were trading at ₹7,379 on the Multi Commodity Exchange (MCX) in early trade against the previous close of ₹7,426, down by 0.63 per cent, and September futures were trading at ₹7,290 as against the previous close of ₹7,326, down by 0.49 per cent.
The JP Morgan Global Manufacturing purchasing managers’ index (PMI) — a composite index produced by JP Morgan and S&P Global in association with ISM and IFPSM — fell to a 22-month low of 52.2 in June, from 52.3 in May, but remained above the neutral mark of 50.0 for the 24th successive month.
US, Japan, UK growth slows
A news release by JP Morgan said, 24 out of the 29 nations covered by the survey registered PMI readings above the no-change level, with the Czech Republic, Myanmar, Poland, Taiwan and Turkey signalling contractions.
The release said growth slowed in the US, Japan, India, the UK and Brazil. The Eurozone and South Korea saw output decline.
This fear of global economic slowdown impacted the demand for commodities, including crude oil.
The meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, scheduled for August 3 will decide the crude oil output for September. The market analysts are expecting OPEC+ to decide on modest supply increases in the coming days.
According to a Reuters report, two of the eight OPEC+ sources informed it of a modest increase for September could be discussed in Wednesday’s meeting, while the remaining for it holding steady.
Guar gum up, castorseed down
August zinc futures were trading at ₹294.75 on MCX in the early trade against the previous close of ₹298.45, down by 1.24 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), the August guar gum futures were trading at ₹9,018 in the initial hour of Tuesday morning against the previous close of ₹8,913, up by 1.18 per cent.
August castorseed contracts were trading at ₹7,182 on NCDEX against the previous close of ₹7,242, down by 0.83 per cent.