Crude oil futures traded lower on Monday morning as China, one of the major importers of crude oil in the global market, signalled the continuation of its zero-Covid policy.

At 10.01 am on Monday, January Brent oil futures were at $97.62, down by 0.96 per cent, and December crude oil futures on WTI were at $91.48, down by 1.22 per cent.

November crude oil futures were trading at ₹7,518 on Multi Commodity Exchange (MCX) in the initial trading hour of Monday morning against the previous close of ₹7,556, down by 0.50 per cent; and December futures were trading at ₹7,447 (₹7,489), down by 0.56 per cent.

Effective measures

Indicating China’s stand on continuing with zero-Covid policy in a media conference, a disease control official from the China National Health Commission, said China’s strict Covid containment measures are still able to control the virus, despite the high transmissibility of Covid variants and asymptomatic carriers. Quoting the official, market reports said: “China’s measures are completely correct, as well as the most economical and effective.”

Last week, there were rumours in the market about a relaxation in Covid containment measures in China, as the continued zero-Covid policy and the lockdowns have impacted China’s economy.

The market expects that China’s decision to continue with zero-Covid policy will impact the demand for crude oil as it is a major importer.

Jeera crackles

November natural gas futures were trading at ₹571.30 on MCX in the initial trading hour of Monday morning against the previous close of ₹517.90, up by 10.31 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), November jeera contracts were trading at ₹25,225 in the initial trading hour of Monday morning against the previous close of ₹24,810, up by 1.67 per cent.

November steel long futures were trading at ₹46,370 on NCDEX in the initial trading hour of Monday morning against the previous close of ₹47,030, down by 1.40 per cent.

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