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After witnessing a significant fall last week, crude oil futures traded higher on Monday morning following the easing of the dollar and the Chinese government’s statement on “accommodative policies” on the economy.
At 10 am on Monday, December Brent oil futures were at $92.31, up by 0.74 per cent, and November crude oil futures on WTI were at $86.19, up by 0.68 per cent.
October crude oil futures were trading at ₹7,109 on Multi Commodity Exchange (MCX) in the initial trading hour of Monday morning against the previous close of ₹7,071, up by 0.54 per cent; and November futures were trading at ₹7,056 as against the previous close of ₹7,019, up by 0.53 per cent.
Can buoy demand
Market reports noted that a lower US dollar index on Monday helped boost the crude oil markets. While a stronger dollar makes oil costlier for people holding other currencies, a weaker dollar helps them. This helps in increasing the demand for the commodity.
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Considerable long liquidation seen over the past weekMarket reports also noted the statement of Chinese President Xi Jinping on the Chinese economy at the Communist Party Congress. Quoting a market analyst, a Reuters report said the Chinese President’s comments at the meeting reassured accommodative policies for the economy. The report termed it as a positive sign for demand outlook.
Market is expecting further volatility in oil prices in the coming days as OPEC (Organization of Petroleum Exporting Countries) and its allies, known as OPEC+, is getting ready to reduce the production output by 2 million barrels a day in November. Added to this, sanctions by European Union on the import of Russian crude oil will come into effect in December.
Dhaniya turns hot, guar gum cool
October natural gas futures were trading at ₹520.40 on MCX in the initial trading hour of Monday morning against the previous close of ₹534, down by 2.55 per cent.
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NSE Nifty was 0.15% lower at 17,159, while BSE Sensex fell 0.19% to 57,808 in early tradeOn the National Commodities and Derivatives Exchange (NCDEX), October dhaniya contracts were trading at ₹11,600 in the initial trading hour of Monday morning against the previous close of ₹11,448, up by 1.33 per cent.
October guar gum futures were trading at ₹9,015 on NCDEX in the initial trading hour of Monday morning against the previous close of ₹9,081, down by 0.73 per cent.
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