Commodities

Crude oil up on Saudi decision to hike prices from January, natural gas down on MCX

Our Bureau | | Updated on: Dec 06, 2021
image caption

Riyadh thinks Omicron infection will unlikely to impact offtake

Crude oil futures opened higher on the Multi Commodity Exchange (MCX) on Monday morning in line with the global trend.

On MCX, December crude oil futures were trading at ₹5.097 during the initial hour of trading on Monday against the previous close of ₹5,032, up by 1.20 per cent.

February Brent oil futures were trading at $71.29, up by 2.02 per cent; and the January crude oil futures on WTI were trading at $67.69, up by 2.16 per cent.

The decision of Saudi Arabia, one of the major oil exporters, to increase crude oil prices for cargoes headed towards Asia and the US led to this increase in prices. Saudi Arabia has raised the price of January crude by 80 cents. Reports quoted a statement by an executive of Saudi Aramco where he had stated that there was overreaction over the omicron variant of coronavirus.

December futures of natural gas were down by 8.59 per cent in the initial hour of trading on Monday on MCX. The December natural gas futures were trading at ₹290.50 on MCX against the previous close of ₹317.80.

This follows the global trends of natural gas futures. The January futures of natural gas were trading $3.839 on NYMEX down by 6.25 per cent. This price has been attributed to the mild weather forecasts. Some media reports said that the concerns about the demand for natural gas during winter vanished because of these weather forecasts.

NCDEX

On the National Commodities and Derivatives Exchange (NCDEX), the December futures of cottonseed oilcake were trading at ₹2,816 in the initial hour of trading on Monday against the previous close of ₹2,726, up by 3.30 per cent. Some market participants felt that the increase in global demand and the tight supplies are the reasons for this.

However, the December futures of steel long were trading at ₹43,000 in the initial hour of trading on Monday morning on NCDEX against the previous close of ₹43,580, down by 1.33 per cent.

Published on December 06, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

COMMENTS
This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you