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Crude oil traded higher on Monday morning with the Chinese data showing an increase in crude oil imports in July. However, fears of a global economic slowdown continue to limit further increase in prices.
At 10.01 am on Monday, October Brent oil futures were at $95.66, up by 0.78 per cent; and September crude oil futures on WTI were at $89.25, up by 0.27 per cent.
August crude oil futures were trading at ₹7,132 on Multi Commodity Exchange (MCX) in the initial hour of Monday morning against the previous close of ₹7,086, up by 0.65 per cent, and September futures were trading at ₹7,083 as against the previous close of ₹7043, up by 0.57 per cent.
China, a major importer of crude oil in the global market, witnessed a growth in the crude oil imports during July due to the rebound in the economic activities in that country after a series of lockdowns in the previous months.
Chinese customs data showed that it imported 8.79 million barrels a day of crude oil in July, up from a four-year low in June. However, the import was still 9.5 per cent lower than a year ago.
Another US hike on cards?
Meanwhile, the US came out with a stronger-than-expected payrolls data on Friday. Market analysts feel that this could lead to another round of interest rate increase by the US Federal Reserve next month. Such a move could further impact the demand for oil in the markets.
The analysts also opine that a further fall in the prices of crude oil could help ease inflationary pressure. An increase in crude oil prices is one of the major contributors for inflation in the economy.
August natural gas futures were trading at ₹626.90 on MCX in the initial hour of Monday morning against the previous close of ₹642.30, down by 2.40 per cent.
Dhaniya, cottonseed oilcale slip
On the National Commodities and Derivatives Exchange (NCDEX), August dhaniya futures were trading at ₹11,380 in the initial hour of Monday morning against the previous close of ₹11,474, down by 0.82 per cent. Similarly, August cottonseed oilcake contracts were trading at ₹2,648 against the previous close of ₹2,669, down by 0.79 per cent.
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