Crude oil traded higher on Friday morning as the market expected the uncertainties over the US debt ceiling to end soon.
At 9.50 am on Friday, July Brent oil futures were at $76.45, up by 0.78 per cent, and June crude oil futures on WTI were at $72.36, up by 0.70 per cent.
May crude oil futures were trading at ₹5,991 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹5,930, up by 1.03 per cent, and June futures were trading at ₹6,013 as against the previous close of ₹5957, up by 0.94 per cent.
Deal by weekend
The report that US President Joe Biden and Speaker of the House of Representatives Kevin McCarthy are hopeful of coming out with a plan to raise the $31.4 trillion federal debt ceiling enthused the crude oil market. McCarthy said a better process is now in place for further talks on increasing the debt ceiling, and expressed hopes of arriving at a deal by the end of the week. Added to this, Biden cancelled his trip to Asia to focus on debt ceiling negotiations.
The crude oil market has been awaiting the outcome of the meeting between Biden and congressional leaders on raising the debt ceiling. This meeting assumes significance as the inability to raise the debt ceiling may lead the US government into default. Moves such as a debt default could lead to a recession in the US.
Meanwhile, the weekly data from the US Department of Labour showed a dip in the US jobless claims. This also helped boost the market sentiments.
The crude oil market is now focusing on a panel discussion where US Fed Chair Jerome Powell is likely to speak on Friday. The market hopes to get some clues on US monetary policy from this panel discussion.
Castorseed gains, isabgol declines
June natural gas futures were trading at ₹224.70 on MCX in the initial trading against the previous close of ₹223.50, up by 0.54 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June castorseed contracts were trading at ₹5,867 in early trade against the previous close of ₹5,831, up by 0.62 per cent.
June isabgol seed futures were trading at ₹23,850 on NCDEX against the previous close of ₹24,305, down by 1.87 per cent.