Crude oil futures traded higher on Friday morning as demand for the commodity remained steady in the global markets.
At 10.03 am on Friday, October Brent oil futures were at $100.15, up by 0.82 per cent; and September crude oil futures on WTI were at $93.34, up by 0.89 per cent.
September crude oil futures were trading at ₹7,468 on the Multi Commodity Exchange (MCX) in the initial hour of trading on Friday morning, against the previous close of ₹7470, down by 0.03 per cent; and October futures were trading at ₹7,456 as against the previous close of ₹7460, down by 0.05 per cent.
Quoting research analysts of ANZ Research, a Reuters report pointed to demand revival in the major crude oil consuming markets. Citing Congestion Index data from TomTom, ANZ Research highlighted the growth in traffic levels in the Asia-Pacific, European and North American regions. Referring to the Baidu data, it said congestion levels in China have also rebounded.
Earlier in the week, OPEC (the Organisation of the Petroleum Exporting Countries) warned it would cut production output to control the decline in prices of crude oil. Added to this, the weekly petroleum status report in the US had shown a decline incrude oil inventories in that country.
However, the upward movement in prices was limited as the market players are awaiting the US Federal Reserve Chairman’s speech at the Jackson Hole symposium later on Friday. They feel that US Fed Chairman’s speech may give some hints on the prospects for future rate hikes and monetary tightening to control inflation in that country.
Progress in talks between Iran and the western nations on the 2015 nuclear deal also impacted the price movement.
Iranian oil is facing sanctions from western nations, and the revival of the nuclear deal will help Iran supply crude oil to the global market.
September natural gas futures were trading at ₹761 on MCX in the initial hour of trading on Friday morning against the previous close of ₹743, up by 2.42 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), September cottonseed oilcake futures were trading at ₹2773 in the initial hour of trading against the previous close of ₹2707, up by 2.44 per cent.
September guarseed contracts were trading at ₹4,616 on NCDEX in the initial trading hour of Friday morning against the previous close of ₹4554, up by 1.36 per cent.