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Crude oil futures traded higher on Wednesday morning as the industrial production numbers from China and inflation related data from the US boosted market sentiment. China and the US are the major consumers of crude oil in the world market.
At 9.53 am on Wednesday, January Brent oil futures were at $82.69, up by 0.27 per cent, and December crude oil futures on WTI (West Texas Intermediate) were at $78.34, up by 0.28 per cent.
November crude oil futures were trading at ₹6,519 on the Multi Commodity Exchange (MCX) during initial trading, against the previous close of ₹6,508, up by 0.17 per cent; and December futures were trading at ₹6,536, as against the previous close of ₹6,525, up by 0.17 per cent.
Above market hopes
According to the National Bureau of Statistics of China, industrial production in that country recorded a growth of 4.6 per cent in October. The market was expecting growth at around 4.4 per cent. China’s industrial production had seen 4.5 per cent growth in September. Sectors such as mining and manufacturing helped boost industrial growth in October.
Added to this, retail sales in China recorded a growth of 7.6 per cent in October against market expectations of 7 per cent. Retail sales had seen a growth of 5.5 per cent in September.
Meanwhile, data from the US showed consumer inflation eased in October. US Consumer Price Index (CPI) eased to 3.2 per cent in October from 3.7 per cent in September. The market was expecting October data to be at around 3.3 per cent.
Now the market is expecting that the weaker-than-expected inflation data could deter further interest rate hikes in the US during the year.
Data by the industry body American Petroleum Institute (API) showed an increase of 1.3 million barrels in crude oil inventories in the US for the week ending November 10. However, official data from US EIA (Energy Information Administration) is expected later in the day.
Castorseed gains, jeera dips
The monthly report of the Organisation of the Petroleum Exporting Countries (OPEC) attributed the recent price drop in crude oil prices to speculators in the market. It also said fundamentals remained strong in the crude oil market. An OPEC report forecast global oil demand growth at 2.46 million barrels a day for 2023.
November natural gas futures were trading at ₹256.60 on MCX during initial trading, against the previous close of ₹259.90, down by 1.27 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), November castorseed contracts were trading at ₹6,080 in the initial trading hour of Wednesday morning, against the previous close of ₹6,005, up by 1.25 per cent.
December jeera futures were trading at ₹42,850 on NCDEX in the initial trading hour of Wednesday morning against the previous close of ₹43,155, down by 0.71 per cent.
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