Crude oil futures, traded marginally higher on Tuesday morning, as the market awaited data on US inflation. This data will be factored into the interest rate cut decision of the US Fed Reserve.
At 9:53 a.m. on Tuesday, April Brent oil futures, were at $82.05, up by 0.06 per cent, and March crude oil futures on WTI (West Texas Intermediate), were at $77.03, up by 0.14 per cent.
‘Inflation expectations unchanged’
The market, is now awaiting the release of US consumer price index inflation data, which is expected to be released later in the day. Market is expecting it to be, above the US Fed Reserve’s target of 2 per cent.
In its January Survey of Consumer Expectations, the Center for Microeconomic Data of the Federal Reserve Bank of New York said, median inflation expectations remained unchanged, at the one and five-year horizons ahead in January, at 3 per cent and 2.5 per cent, respectively. Median inflation expectations at the three-year ahead horizon declined to 2.4 per cent from 2.6 per cent.
Recently, US Fed Reserve had stated that the high inflation figures, could keep interest rates higher for longer. Sustained high interest rates, could put pressure on the economy, impacting the demand for commodities such as crude oil.
The market is also awaiting for the release of the monthly report of OPEC (Organization of the Petroleum Exporting Countries), later in the day. This report, will give an idea about demand prospects for crude oil.
Dhaniya down, castorseed up
Meanwhile, Israel conducted attacks in Rafah on Monday, leading to the release of two hostages held by Hamas. Market reports, also said that Houthis from Yemen, continued their attacks on merchant vessels in the Red Sea.
On the National Commodities and Derivatives Exchange (NCDEX), April dhaniya contracts were trading at ₹7,524 during initial trading, against the previous close of ₹7,552, down by 0.37 per cent.
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February castorseed futures, were trading at ₹5,778 on NCDEX against the previous close of ₹5,754, up by 0.42 per cent.