Crude oil futures traded higher on Friday because of positive economic data from China.

At 9.56 am on Friday, March Brent oil futures were at $81.70, up by 0.5 per cent, and March crude oil futures on WTI (West Texas Intermediate) were at $78.38, up by 0.68 per cent.

January crude oil futures were trading at ₹6,866 on Multi Commodity Exchange (MCX) during the initial hour of trading on Friday against the previous close of ₹6,833; up by 0.48 per cent, and February futures were trading at ₹6,801 against the previous close of ₹6,760; up by 0.61 per cent.

Data released by the National Bureau of Statistics of China showed that the Chinese GDP witnessed a growth of 5.4 per cent in the fourth quarter of 2024 against 4.6 per cent in the third quarter of 2024. Market was expecting it to grow by 5 per cent. This was the strongest annual growth rate in the last one-and-a-half years. Chinese economy had witnessed 6.3 per cent growth in the second quarter of 2023.

Market players observed that a series of stimulus measures introduced in September helped boost the Chinese economy.

Industrial production in China witnessed a growth of 6.2 per cent in December 2024 against 5.4 per cent in November. Retail sales in China grew by 3.7 per cent in December 2024 against 3 per cent in November.

China is one of the major consumers of crude oil in the global market. Market players feel that the latest Chinese economic numbers would help boost the demand for the commodity in the global market.

Meanwhile, a Reuters report said that Houthi militia is expected to announce a halt in its attacks on ships in the Red Sea, after a ceasefire deal between Israel and Hamas. The attacks on ships had disrupted the global shipping activities impacting the movement of commodities such as crude oil.

In their Commodities Feed for Friday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said that oil prices traded weaker on Thursday with ICE Brent falling back below $82 a barrel. Mounting supply risks continue to provide broad support to oil prices.

Citing reports, they said the incoming Trump administration is looking at how to approach the recent sanctions placed against Russia and how they could be used as a tool to try to push Russia and Ukraine towards a peace deal. There are also suggestions that the incoming administration will take an aggressive approach towards Iran and Venezuela. The market should get more clarity following the inauguration next week, they said.

January natural gas futures were trading at ₹367 on MCX during the initial hour of trading on Friday against the previous close of ₹356.30; up by 3 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), March jeera contracts were trading at ₹22,500 in the initial hour of trading on Friday against the previous close of ₹22,355; up by 0.65 per cent.

April turmeric (farmer polished) futures were trading at ₹14,190 on NCDEX in the initial hour of trading on Friday against the previous close of ₹14,216; down by 0.18 per cent.

Published on January 17, 2025