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Crude oil futures traded higher on Friday morning as data indicated a growth in China’s industrial production and retails sales in August.
At 10.05 am on Friday, November Brent oil futures were at $94.56, up by 0.92 per cent; and October crude oil futures on WTI (West Texas Intermediate) were at $91.08, up by 1.02 per cent.
September crude oil futures were trading at ₹7,562 on the Multi Commodity Exchange (MCX) in the initial trading hour of Friday morning, against the previous close of ₹7,501, up by 0.81 per cent; and October futures were trading at ₹7,510 as against the previous close of ₹7,453, up by 0.76 per cent.
The latest economic data from China showed an improvement in economic growth in that country.
According to China’s National Bureau of Statistics, industrial production in that country grew by 4.5 per cent in August, against 3.7 per cent in July. The market was expecting a growth of 3.9 per cent in August.
China’s retail sales also witnessed 4.6 per cent growth in August, against 2.5 per cent in July. The market was expecting a growth of around 3 per cent.
Added to this, China’s central bank has also announced a 25 basis points cut in the cash reserve requirement for banks. This will help release more liquidity into the economy.
Recent forecasts by OPEC (Organization of the Petroleum Exporting Countries) and IEA (International Energy Agency) also indicated tightness in the crude oil market during the fourth quarter of 2023. This follows the decision by Saudi Arabia and Russia, two of the major oil producers, to extend their oil production output cuts till the end of 2023. China is a major consumer of crude oil in the world market.
September natural gas futures were trading at ₹224.90 on MCX in the initial trading hour of Friday morning, against the previous close of ₹225.60, down by 0.31 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), October turmeric (farmer polished) contracts were trading at ₹15,202 in the initial trading hour of Friday morning, against the previous close of ₹14,830, up by 2.51 per cent.
October jeera futures were trading at ₹63,500 on NCDEX in the initial trading hour of Friday morning, against the previous close of ₹63,175, up by 0.51 per cent.
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