The re-emergence of the Covid pandemic in China continued to play a significant role in the price movements of crude oil . At 10.03 am on Tuesday, September Brent oil futures were at $105.61, down by 1.31 per cent, and August crude oil futures on WTI were at $102.41, down by 1.61 per cent.
Similarly, July crude oil futures were trading at ₹8,150 on Multi Commodity Exchange (MCX) in the initial hour of Tuesday morning against the previous close of ₹8,254, down by 1.26 per cent, and August futures were trading at ₹7,953 as against the previous close of ₹8,044, down by 1.13 per cent.
Impact of Covid spread in China
Many Chinese cities have initiated steps to control the spread of Covid, including lockdowns and halting of business activities. Being a major consumer of crude oil in the global market, Covid-induced restrictions in China will impact the consumption of the commodity.
The other factor driving the oil prices down is the fear of recession in major economies across the world which in turn affecting the prices of crude oil.
However, market analysts estimate the downside in the prices will be limited due to the tight supply situation in the global crude oil market.
July natural gas futures were trading at ₹517.60 on MCX in the initial hour of Tuesday morning against the previous close of ₹512.70, up by 0.96 per cent.
Dhaniya up, castorseed down
On the National Commodities and Derivatives Exchange (NCDEX), July dhaniya futures were trading at ₹12,198 in the initial hour of Tuesday morning against the previous close of ₹12,178, up by 0.16 per cent.
July castorseed contracts were trading at ₹7,304 on NCDEX in the initial hour of Tuesday morning against the previous close of ₹7,356, down by 0.71 per cent.