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Crude oil and natural gas futures traded higher on the Multi Commodity Exchange (MCX) during the initial hours trading on Monday morning as energy commodities prices are seen gaining on supply weakness and demand strength.

February crude oil futures were trading at ₹6,204 on the MCX in the initial hour of Monday morning against the previous close of ₹6,182, up by 0.36 per cent. March Brent oil futures were trading at $86.21, up by 0.17 per cent and March crude oil futures on WTI were trading at $83.56, up by 0.31 per cent.

Tighter supply conditions

Market reports said that tighter supply condition in some oil-producing nations is fuelling the demand for crude oil.

Though the January 4 meeting of OPEC (Organization of the Petroleum Exporting Countries) and its allies decided to increase the supply to 4,00,000 barrels a day for February, some smaller nations are not in a position to meet the agreed demand.

Reports noted that some other major producers are cautious about supplying too much of oil as the Covid spread might affect demand.

January natural gas futures were trading at ₹321 on the MCX in the initial hour of Monday morning trade against the previous close of ₹316, up by 1.55 per cent. January rubber contracts were trading at₹16,150 on MCX on Monday morning against the previous clsoe of ₹16,255, down by 0.65 per cent.

NCDEX

On the National Commodities and Derivatives Exchange (NCDEX), February guar gum futures were trading at ₹11,787 in the initial hour of Monday morning against the previous close of ₹11,675, up by 0.96 per cent. February cottonseed oil cake futures were trading at ₹3,320 on the NCDEX on Monday morning against the previous close of ₹3,326, down by 0.18 per cent.

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