Crude oil traded lower on Friday morning as the market expects high consumer inflation figures in Europe will lead to an interest rate hike.
At 9.57 am on Friday, May Brent oil futures were down by 0.38 per cent at $84.43 and April crude oil futures on WTI were down by 0.38 per cent at $77.86.
March crude oil futures were trading at ₹6,422 on Multi Commodity Exchange (MCX) in the initial trading hour of Friday morning against the previous close of ₹6,437, down by 0.23 per cent, and April futures were trading at ₹6,457 against the previous close of ₹6,471, down by 0.22 per cent.
China kindles hopes
Data from France, Spain and Germany in Europe showed an increase in their inflation levels during February.
Following this, the market is now expecting the European Central Bank (ECB) to increase its interest rates in the coming days. Any aggressive interest rate hike would impact the economy reducing the demand for commodities such as crude oil.
However, the hopes of demand recovery from China prevented the prices from falling further.
Recent data on manufacturing showed an improvement in the economic recovery in China. China’s PMI (Purchasing Managers’ Index) increased to 56.4 in February against 52.9 in January.
China had witnessed an economic downturn for a long due to its strict Covid control measures. This data enthused the market as the demand for crude oil is likely to increase from the Chinese market.
Jeera slips below ₹30,000
March natural gas futures were trading at ₹230.80 on MCX during initial trading against the previous close of ₹227.40, up by 1.50 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), March jeera contracts were trading at ₹29,595 against the previous close of ₹30,020, down by 1.42 per cent.
April turmeric (farmer polished) futures were trading at ₹6,928 on NCDEX against the previous close of ₹7,042, down by 1.62 per cent.
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