Crude oil futures traded higher on Tuesday morning as the markets cautiously awaited the inflation numbers and the outcome of Central bank meetings in several countries during this week.

At 9.52 am on Tuesday, February Brent oil futures were at $76.37, up by 0.45 per cent, and January crude oil futures on WTI (West Texas Intermediate) were at $71.69, up by 0.52 per cent.

December crude oil futures were trading at ₹5,983 on the Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹5,969, up by 0.23 per cent, and January futures were trading at ₹6,026 as against the previous close of ₹6,012, up by 0.23 per cent.

Above Fed target?

The US consumer price index (CPI) inflation data is expected to be released later in the day. Though the market is expecting CPI inflation numbers to come down a bit, it is expected to be above the US Federal Reserve’s annual target of 2 per cent.

The US inflation data is expected a day before the announcement of the interest rate decision from the US Federal Reserve on Wednesday. The market is expecting the Fed to keep the interest rates unchanged at 5.50 per cent.

US is a major consumer of crude oil in the world market, and the economic indicators from the US play significant role in determining the price of the commodity.

Meanwhile, India’s inflation numbers for November are also expected later in the day. India’s CPI inflation was at 4.87 per cent in October. The market is expecting it to be near 6 per cent in November due to the higher food prices. India is the third major crude oil consumer in the world after US and China.

The National Bureau of Statistics of China’s data showed that China has been witnessing disinflationary trend now. China’s CPI fell 0.5 per cent month-on-month in November. China’s CPI had seen a decline of 0.1 per cent in October.

There were also reports of an increase in the crude oil inventories in China, and a decline in the crude oil imports by that country. Being one of the major consumers of crude oil in the world market, these indicators play a major role in determining the price of the commodity.

Castorseed, cottonseed oil cake dip

Market is also waiting for the outcome of the meeting of the Central banks in Europe and the UK later this week.

December natural gas futures were trading at ₹202.20 on MCX against the previous close of ₹198.90, up by 1.66 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), December cottonseed oilcake contracts were trading at ₹2,930 against the previous close of ₹2,920, up by 0.34 per cent.

January castorseed futures were trading at ₹5,880 on NCDEX in the initial trading hour of Tuesday morning against the previous close of ₹5,913, down by 0.56 per cent.

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