Crude oil futures traded higher on Thursday morning despite deflationary figures from China, a major consumer of crude oil in the global market. However, China’s central bank governor has expressed confidence that his country will achieve its annual growth target of 5 per cent for this year.

At 9.53 am on Thursday, January Brent oil futures were at $79.67, up by 0.16 per cent, and December crude oil futures on WTI (West Texas Intermediate) were at $75.48, up by 0.20 per cent.

November crude oil futures were trading at ₹6,304 on the Multi Commodity Exchange (MCX) during initial trading, against the previous close of ₹6,274, up by 0.48 per cent, and December futures were trading at ₹6,327, as against the previous close of ₹6,305, up by 0.35 per cent.

On heels of disappointing data

Data from the National Bureau of Statistics of China showed that the consumer price index (CPI) inflation in that country shrank 0.2 per cent in October against the market expectations of a shrinking of 0.1 per cent. September saw a CPI reading of 0 per cent.

China’s producer price index (PPI) also declined in October. According to the National Bureau of Statistics of China, PPI for October shrank 2.6 per cent, as against 2.5 per cent in September. However, the October reading was expected to decline 2.7 per cent. China had also recorded disappointing trade data recently.

The demand for fuel in China grew during October due to the Golden Week holiday. However, market players think that the recent economic indicators for October may impact demand during the year.

Meanwhile, the Chinese news agency Xinhua, which quoted the Governor of People’s Bank of China, Pan Gongsheng, said China will achieve its 5 per cent growth target this year as there has been stronger economic momentum recently, with recovering production and consumption, stable employment, and improving price conditions.

A 5 per cent the annual growth rate is robust, as China’s gross domestic product (GDP) has surpassed around $16.72 trillion, Pan Gongsheng said. It is more important to achieve high quality and sustainable development and promote economic transformation than to pursue a high growth rate, the governor said.

Jeera rises

November natural gas futures were trading at ₹260 on MCX during initial trading, against the previous close of ₹257.20, up by 1.09 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), December jeera contracts were trading at ₹43,800, against the previous close of ₹43,125, up by 1.57 per cent.

November steel long futures were trading at ₹43,590 on NCDEX in the initial trading hour of Thursday morning, against the previous close of ₹43,730, down by 0.32 per cent.

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