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Crude oil futures traded higher on Monday morning following reports of an expansion in Chinese manufacturing activity and signs of further production cuts by the major oil-producing nations.
At 9:52 am on Monday, November Brent oil futures were at $88.56, up by 0.01 per cent, and October crude oil futures on WTI (West Texas Intermediate) were at $85.60, up by 0.06 per cent.
September crude oil futures were trading at ₹7,083 on the Multi Commodity Exchange (MCX) in the initial trading hour of Monday morning, up by 0.27 per cent against the previous close of ₹7,064, and October futures were trading at ₹7,024 as against the previous close of ₹7,002, up by 0.31 per cent.
Awaiting further booster shots
China’s Caixin Manufacturing Purchasing Managers’ Index (PMI) data for August stood at 51, against the market forecast of 49.3. Caixin Manufacturing PMI was at 49.2 in July. The recent data indicated a growth in the Chinese economy. This helped boost sentiment in the market as China has been facing difficulties in its economic recovery for the past several months.
The market is awaiting measures from the authorities to boost economic growth in that country.
US non-farm payrolls data showed a growth in jobs in August, increasing to 1,87,000 jobs, against 1,57,000 in July. The market was expecting the number to be at 1,70,000 during August. Market reports said the latest non-farm payrolls data could bring down chances of a hike in the interest rate by the US Federal Reserve.
On the supply side, major oil producers extended production cuts to October also. The intention to keep supplies tight further helped boost commodity prices.
On Thursday, the Deputy Prime Minister of Russia, Alexander Novak, said his country agreed with its OPEC partners on the parameters for continued export cuts. Market reports also said Saudi Arabia is expected to extend its voluntary 1 million barrels a day output cut to October.
Jeera hits ceiling
September natural gas futures were trading at ₹223.20 on MCX in the initial trading hour of Monday morning, against the previous close of ₹229.80, down by 2.87 per cent.
On NCDEX, jeera futures hit the upper limit for September contracts, with prices rising over ₹2,300. Jeera October futures surged by ₹2,370 to ₹61,650 a quintal. But turmeric futures lost their gleam. Turmeric December contracts slipped by ₹116 to ₹15,800 a quintal.
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