Crude oil futures traded lower on Monday morning following a weak demand outlook due to monetary tightening by some economies.
At 10.01 am on Monday, December Brent oil futures were at $96.91, down by 1.03 per cent, and November crude oil futures on WTI were at $91.69, down by 1.03 per cent.
October crude oil futures were trading at ₹7,554 on the Multi Commodity Exchange (MCX) in the initial trading hour of Monday morning against the previous close of ₹7,627, down by 0.96 per cent; and November futures were trading at ₹7,463 as against the previous close of ₹7,549, down by 1.14 per cent.
More hikes on cards?
Market is expecting a further increase in interest rates by the US Federal Reserve as the recent data indicated a still-tight job market in the US. Further increase in the interest rates is likely to impact the demand for commodities thus impacting the US and other economies.
Last week, crude oil prices witnessed an uptrend as the October 5 meeting of the OPEC (Organization of Petroleum Exporting Countries) and its allies, known as OPEC+, decided to cut production output by 2 million barrels a day.
Justifying this decision, OPEC member Saudi Arabia stated that this move was taken in view of the weakening global economy and the interest rate hikes by some western nations.
In his daily market outlook, Prathamesh Mallya, AVP (Research, Non-Agri Commodities, and Currencies) of Angel One Ltd, said: “Crude prices might remain elevated post the OPEC+ cuts the output, however, a strong dollar index might cap the gains on the upside.”
Cotton, cottonseed oilcake gain
October cotton futures were trading at ₹33,600 on MCX in the initial trading hour of Monday morning against the previous close of ₹33,340, up by 0.78 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), October dhaniya contracts were trading at ₹11,676 in the initial trading hour of Monday morning against the previous close of ₹11,016, up by 5.99 per cent.
December cottonseed oilcake futures were trading at ₹2,466 on NCDEX in the initial trading hour of Monday morning against the previous close of ₹2,420, up by 1.90 per cent.