Crude oil traded marginally lower on Friday morning as data from China showed mixed economic activities.
At 9.54 a.m., the June Brent oil futures were trading at $78.48, down 0.15 per cent, and May crude oil futures on WTI were at $74.36, down by 0.01 per cent.
April crude oil futures were trading at ₹6,120 on the Multi Commodity Exchange (MCX) during initial trade against the previous close of ₹6093, up by 0.44 per cent, and May futures at ₹6,163 against the previous close of ₹6,136, up by 0.44 per cent.
Fears over demand
According to the National Bureau of Statistics (NBS) of China, the manufacturing purchasing managers’ index (PMI) stood at 51.9 in March against 52.6 in February. This weakness in the manufacturing activity has created some apprehensions over the demand for commodities such as crude oil in that country.
However, the non-manufacturing PMI of China increased to 58.2 in March against 56.3 in February. Market reports noted that there was a good growth in the services sector in March.
Meanwhile, there was a decline in the crude oil inventories in the US for the week ending March 24.
7.5 million barrels drop
The petroleum status report by the US EIA (Energy Information Administration) for the week ending March 24, released on March 29, showed that the US commercial crude oil inventories (excluding those in the strategic petroleum reserve) saw a decrease of 7.5 million barrels from the previous week. Market was expecting an increase in the crude oil inventories during the period.
Added to this, the supply constraints due to the halting of crude oil exports from Kurdistan region of Iraq supported the price of the commodity in the global market. According to reports, oil producers have brought down the crude oil output in many oilfield of the Kurdistan region.
The export of around 450,000 barrels a day of crude oil from Kurdistan region to Ceyhan port in Turkey came to a standstill earlier this week following an arbitration needing Iraq’s approval.
Now, the market is waiting for the outcome of the advisory committee meeting of the OPEC (Organization of the Petroleum Exporting Countries) and their allies, including Russia, a group known as OPEC+ on April 3.
Cottonseed oil cake up, dhaniya cools
April natural gas futures were trading at ₹175.50 on MCX in early deals against the previous close of ₹175.20, up 0.17 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), April cottonseed oilcake contracts traded at ₹2,818 in the early trade against the previous close of ₹2,793, up by 0.90 per cent.
April dhaniya futures were trading at ₹6,664 on NCDEX against the previous close of ₹6,700, down by 0.54 per cent.
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