A softer-than-expected US inflation data helped boost the crude oil futures in the global markets on Friday morning.
At 10 am on Friday, January Brent oil futures were at $93.93, up by 0.28 per cent; and December crude oil futures on WTI were at $86.75, up by 0.32 per cent.
November crude oil futures were trading at ₹7,035 on Multi Commodity Exchange (MCX) in early trades against the previous close of ₹7,031, up by 0.06 per cent; and December futures were trading at ₹7,004 as against the previous close of ₹6,999, up by 0.07 per cent.
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US inflation data
A news release by the US Bureau of Labor Statistics said the Consumer Price Index (CPI) for All Urban Consumers (CPI-U) rose 0.4 per cent in October on a seasonally adjusted basis. Over the last year, the all-items index increased 7.7 per cent before seasonal adjustment. This was lower than expected by the market. The US CPI for September was at 8.2 per cent.
The market is now expecting that the US inflation data would lead to less aggressive interest rate hikes by the US Fed Reserve. This will help boost the economy, which will be positive for crude oil prices.
The US Fed Reserve had made some aggressive interest rate hikes in the recent past to control inflation in that country. These rate hikes had impacted the US economy.
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However, the increase in the number of Covid cases in some parts of China, and its control measures capped the crude oil prices. On Thursday, authorities in Guangzhou, a manufacturing hub of China, asked the residents to work from home to control the spread of the disease in the region.
China is a major consumer of crude oil, and any risk related to demand impacts the price of the commodity.
November zinc futures were trading at ₹264.15 on MCX in initial trade against the previous close of ₹260.40, up by 1.44 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), November dhaniya contracts were trading at ₹10348 in early trade against the previous close of ₹10170, up by 1.75 per cent.
November steel long futures were trading at ₹45180 on NCDEX in initial trading against the previous close of ₹45380, down by 0.44 per cent.