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Crude oil futures traded marginally higher on Friday morning despite the demand outlook being clouded by developments such as a likely monetary tightening by the US Fed Reserve next week and fears of a recession in some economies.
At 10.04 am on Friday, November Brent oil futures were at $91.20, up by 0.40 per cent, and October crude oil futures on WTI were at $85.34, up by 0.28 per cent.
September crude oil futures were trading at ₹6,815 on Multi Commodity Exchange (MCX) during the initial hours of trading against the previous close of ₹6,831, down by 0.23 per cent, and October futures were trading at ₹6,810 against the previous close of ₹6,822, down by 0.18 per cent.
Referring to the recent figures related to inflation in the US, market analysts opined that the US Federal Reserve can increase the interest rates by 75 basis points next week. This could impact the price of crude oil in the global market, making it more expensive for buyers holding other currencies.
Chinese fuel exports
Crude oil prices fell on Thursday after the reports of US Energy Department backtracking its earlier statements of filling its strategic petroleum reserves (SPRs). Earlier reports had mentioned that US would start filling its SPRs once WTI crude prices trade below $80 a barrel.
Market analysts also noted that China is planning to take up more fuel exports. They felt that this could be an indication of decline inpetroleum products demand in the Chinese market.
September menthaoil futures were trading at ₹969 on MCX in the initial trading hour of Friday morning against the previous close of ₹963.40, up by 0.58 per cent.
Jeera, cottonseed oilcake slip
On the National Commodities and Derivatives Exchange (NCDEX), September cottonseed oilcake contracts were trading at ₹2,850 against the previous close of ₹2,900, down by 1.72 per cent.
September jeera futures were trading at ₹24,760 on NCDEX in the initial trading hour of Friday morning against the previous close of ₹24,900, down by 0.56 per cent.
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