The crude oil market was set for a second straight week of decline following the weaker demand outlook for the commodity in various economies of the world. However, crude oil futures traded higher in early trade on Friday.

At 9.54 am on Friday, October Brent oil futures were at $83.62, up by 0.31 per cent, and October crude oil futures on WTI (West Texas Intermediate) were at $79.33, up by 0.35 per cent.

September crude oil futures were trading at ₹6,566 on the Multi Commodity Exchange (MCX) during initial trading, against the previous close of ₹6,520, up by 0.71 per cent, and October futures were trading at ₹6,559, against the previous close of ₹6,517, up by 0.64 per cent.

Saudi to extent output cut?

Market reports indicated that Saudi Arabia, one of the major crude oil producers in the global market, is planning to extend its production output cut by 1 million barrels a day to October. This helped boost the price of the commodity.

However, apprehensions over an increase in the interest rate in the US limited further gains.

The market now awaits remarks from the Chair of the US Federal Reserve, Jerome Powell, at the Jackson Hole Symposium today for more cues on interest rate hikes in the US. The market expects Powell to outline the Fed Reserve’s plans for interest rates to control inflation in US.

Considering the inflation in the US, the market fears that Powell may indicate a higher interest rate scenario in the US for the remaining part of the year. Market players are of the opinion that a higher interest rate scenario could strengthen the dollar even further, making crude oil more expensive in the market. Higher interest rates could also slow down economic activities. These factors could impact demand for the commodity.

Guar gum, turmeric gleam

September natural gas futures were trading at ₹218.10 on MCX against the previous close of ₹220.40, down by 1.04 per cent.

On NCDEX, guar gum October contracts increased by ₹114 to ₹13,300 a quintal. Guarseed October futures gained ₹38 at ₹6,450 a quintal. Jeera September futures declined by ₹220 to ₹56,300 a quintal, while October turmeric contracts gained ₹60 at ₹16,140 a quintal.