Comments
Expectations of an increase in demand from China in 2023 buoyed crude oil futures higher on Monday morning.
At 10.01 am on Monday, April Brent oil futures were up by 0.67 per cent at $84.56 and April crude oil futures on WTI were up by 0.63 per cent at $77.03.
March crude oil futures were trading at ₹6,395 on the Multi Commodity Exchange (MCX) during the initial hours of trading against the previous close of ₹6,317, up by 1.23 per cent, and April futures were trading at ₹6,441 as against the previous close of ₹6,364, up by 1.21 per cent.
Also read: NSE, CME Group ink pact for rupee-denominated WTI crude oil and natural gas contracts
OPEC forecast
A Reuters report quoting market analysts said crude oil import in China may rise between 500,000 barrels per day and 1 million barrels per day to as high as 11.8 million barrels per day in 2023, reversing previous two years’ decline.
Forecasting the increase in global demand in 2023, the monthly oil market report by OPEC (Organisation of Petroleum Exporting Countries), which was released last week, stated that the key to oil demand growth in 2023 will be the return of China from its mandated mobility restrictions and the effect this will have on the country, the region and the world.
Also read: India, China to command big chunk of energy resources, including oil, by 2045: OPEC
In fact, the report of the International Energy Agency (IEA) that was released last week also highlighted the likely increase in demand from China for the demand growth during 2023.
Market reports also indicated that any aggressive increase in the interest rates by the US Federal Reserves could lead to a slowdown in the demand for crude oil. The minutes of the Fed meeting are expected to be released on Wednesday.
February aluminium futures were trading at ₹211.90 on MCX in the initial trading hour of Monday morning against the previous close of ₹210.45, up by 0.69 per cent.
Also read: ONGC to drill for oil & gas in Cauvery ultra deep waters in FY24
On the National Commodities and Derivatives Exchange (NCDEX), March steel long contracts were trading at ₹49,150 in the initial trading hour of Monday morning against the previous close of ₹48,520, up by 1.30 per cent.
April dhaniya futures were trading at ₹6,50 on NCDEX during initial hours against the previous close of ₹7,246, down by 4.09 per cent.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.