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Crude oil futures traded marginally lower on Friday morning as the markets waited for the release of a US payroll report later in the day.
At 10.04 am on Friday, December Brent oil futures were at $94.23, down by 0.20 per cent, and November crude oil futures on WTI were at $88.31, down by 0.16 per cent.
October crude oil futures were trading at ₹7,263 on the Multi Commodity Exchange (MCX) in the initial trading hour of Friday morning, against the previous close of ₹7,266, down by 0.04 per cent, and November futures were trading at ₹7,220 as against the previous close of ₹7222, down by 0.03 per cent.
Interest rate hikes in the past by the Fed have impacted the demand for crude oil in the market. The US has been resorting to interest rate hikes to control inflation in that country.
Added to this, the decision of OPEC (Organization of Petroleum Exporting Countries) and its allies, known as OPEC+, to cut production by 2 million barrels a day was not welcomed by the US.
Expressing his unhappiness over the announcement, US President Joe Biden said the US was looking at all possible alternatives -- including the option to release more oil from the strategic petroleum reserve or imposing controls on energy exports by US companies – to check the increase in the price of the commodity.
The production cut by OPEC+ members is expected to start from November. According to the major oil producer Saudi Arabia, this move was taken in view of the weakening global economy and interest rate hikes by some western nations.
October cotton futures were trading at ₹33,000 on MCX in the initial trading hour of Friday morning, against the previous close of ₹32,720, up by 0.86 per cent.
NCDEX
On the National Commodities and Derivatives Exchange (NCDEX), December cottonseed oilcake contracts were trading at ₹2,422 in the initial trading hour of Friday morning, against the previous close of ₹2,392, up by 1.25 per cent.
October guargum futures were trading at ₹9,310 on the NCDEX in the initial trading hour of Friday morning, against the previous close of ₹9,336, down by 0.28 per cent.
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