Crude oil futures traded higher on Monday as one of the major Chinese cities ended its Covid-related lockdown.
On Monday morning, November Brent oil futures were at $91.92, up by 0.62 per cent, and November crude oil futures on WTI were at $85.15, up by 0.46 per cent.
September crude oil futures were trading at ₹6,819 on MCX in the initial trading hour of Monday against the previous close of ₹6,816, up by 0.04 per cent; and October futures were trading at ₹6,819 as against the previous close of ₹6,810, up by 0.13 per cent.
Chinese exports up
China, which has been practising a zero-Covid policy, imposed a lockdown in the Chengdu region two weeks ago. Now, the region has lifted the lockdown paving the way for day-to-day economic activities. Being a major consumer of crude oil, any lockdown in that country brings down the demand for the commodity in the global market.
The latest data from China showed an increase in the export of petroleum products from that country.
Now, the market analysts are waiting for the decision of the US Federal Reserve, which is likely to announce some measures later this week, to control inflation in that country. Any rate hike would impact the demand for crude oil.
Meanwhile, oil and natural gas rigs by energy firms in the US have seen an increase. Market reports noted that the number of rigs increased to 763 as on September 16. They reported that this is the highest number since August. The increase in the number of rigs will help increase the output in the coming days.
In his outlook for the day, Prathamesh Mallya, AVP (Research, Non-Agri Commodities, and Currencies) of Angel One Ltd, said: “We expect crude to trade lower towards ₹6700 levels, a break of which could prompt the price to move lower to ₹6560 levels.”
Guar gum up, jeera down
September natural gas futures were trading at ₹606.60 on MCX in the initial trading hour of Monday against the previous close of ₹630.90, down by 3.85 per cent.
On the NCDEX, October guar gum contracts were trading at ₹10,311 in the initial trading hour of Monday against the previous close of ₹10,042, up by 2.68 per cent.
October jeera futures were trading at ₹24,875 on NCDEX against the previous close of ₹25,200, down by 1.29 per cent.