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Crude oil futures traded lower on Monday morning as the market is cautiously waiting for the release of the inflation data in the US later this week. Added to this, concerns over the economic recovery in China also impacted the prices of the commodity.
At 9.51 a.m. on Monday, November Brent oil futures were at USD 90.45, down by 0.22 per cent, and October crude oil futures on WTI (West Texas Intermediate) were at USD 87.01, down by 0.57 per cent.
September crude oil futures were trading at Rs. 7213 on Multi Commodity Exchange (MCX) during initial against the previous close of Rs. 7258, down by 0.62 per cent, and October futures were trading at Rs. 7171 as against the previous close of Rs. 7198, down by 0.38 per cent.
Also Read | Crude Check: Will Crude oil price hit $100 per barrel?
Other market concerns
The US Bureau of Labour Statistics will be releasing the August inflation data later this week. This data assumes significance, as the US Federal Reserve has been increasing the interest rate for the past several months to control inflation in that country. Any increase in the interest rate will make the commodities such as crude oil costlier in the dollar-denominated market.
The market is also concerned over the economic recovery in China. Though there were expectations in the market over some measures to support the economic growth in China, the authorities are yet to come out with such measures. China is a major consumer of crude oil in the global market, and a slowdown in the economy will impact the demand for crude oil also.
Meanwhile, OPEC (Organization of the Petroleum Exporting Countries) and IEA (International Energy Agency) will be releasing their oil market forecast during this week. While expecting a tighter supply situation in the oil market during the year in their earlier reports, these organisations had expressed hopes of a strong demand from China during this year.
Jeera loses steam
September natural gas futures were trading at Rs. 212.10 on MCX in the initial trading hour of Monday morning against the previous close of Rs. 215.90, down by 1.76 per cent.
On NCDEX, cottonseed oil cake September contracts were up by 1.75 per cent at Rs. 2,790 a quintal. Jeera (cumin) October futures declined by 1.7 per cent to Rs. 64,150 a quintal.
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