Crude oil futures traded lower on Tuesday morning, despite China’s plan to introduce policy stimulus measures to boost its economy.
At 9.53 am on Tuesday, February Brent oil futures were at $71.88, down by 0.36 per cent, and January crude oil futures on WTI (West Texas Intermediate) were at $68.06, down by 0.45 per cent.
December crude oil futures were trading at ₹5,783 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday against the previous close of ₹5,825, down by 0.72 per cent, and January futures were trading at ₹5,782 against the previous close of ₹5,825, down by 0.74 per cent.
Citing a report from the Chinese media Xinhua, news reports said China will step up ‘unconventional’ counter-cyclical adjustments, focusing on expanding domestic demand and boosting consumption. Xinhua cited a readout of a meeting of top Communist Party officials. “A more proactive fiscal policy and an appropriately loose monetary policy should be implemented, enhancing and refining the policy toolkit, strengthening extraordinary counter-cyclical adjustments,” the readout said.
The annual Central Economic Work Conference is scheduled to be held in the coming days in China to set targets and policy intentions for next year.
A policy stimulus would help boost economic activities in that country. Market players opine that this would help boost the demand for commodities such as crude oil also.
In Syria, the ousted President Bashar al-Assad’s Prime Minister has agreed to hand over power to the rebel-led Salvation Government. Assad had fled to Russia following the capture of the Syrian capital Damascus by the rebels.
Though Syria is not a major oil producer in West Asia, it is strategic located. Added to this, the previous Assad regime had good relations with Russia and Iran. Market players believe that a regime change could lead to instability in the region.
December natural gas futures were trading at ₹270.30 on MCX during the initial hour of trading on Tuesday against the previous close of ₹271.50, down by 0.44 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), December turmeric (farmer polished) contracts were trading at ₹13,004 in the initial hour of trading on Tuesday against the previous close of ₹12,944, up by 0.46 per cent.
January jeera futures were trading at ₹24,020 on NCDEX in the initial hour of trading on Tuesday against the previous close of ₹24,130, down by 0.46 per cent.