Crude oil traded lower on Monday morning as investors are now waiting for the demand outlook reports from major industry organisations this week.
At 10.01 am on Monday, March Brent oil futures were at $84.76, down by 0.61 per cent, and March crude oil futures on WTI were at $79.42, down by 0.86 per cent.
January crude oil futures were trading at ₹6,459 on Multi Commodity Exchange (MCX) in early trading against the previous close of ₹6,462, down by 0.05 per cent, and February futures were trading at ₹6,494 against the previous close of ₹6,497, down by 0.05 per cent.
Signs of recover
With the monthly report from the OPEC (Organization of Petroleum Exporting Countries) all set for release on Tuesday, markets are now waiting to get a cue on the possible increase in the demand for crude oil in the global markets. The market expectation is based on China’s initiatives aimed at the economic recovery in that country. China’s zero-Covid policy and strict control measures have impacted its economy.
Though China has been showing signs of recovery boosting the demand prospects for crude oil in the global markets, it is also being affected with the increase in the number of Covid cases. This outbreak of the disease is likely to impact its economic recovery.
In addition, International Energy Agency (IEA) is all set to release a report on the crude oil market on Wednesday. This report will give an idea to the market on IEA’s outlook on the prices and demand for the current year.
Cottonseed oil cake gains
January natural gas futures were trading at ₹296.10 on MCX during initial trading hours against the previous close of ₹292.40, up by 1.27 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), January cottonseed oilcake contracts were trading at ₹3,075 against the previous close of ₹3031, up by 1.45 per cent.
January dhaniya futures were trading at ₹7,502 on NCDEX against the previous close of ₹7,552, down by 0.66 per cent.