Crude oil futures traded higher on Monday morning as the International Energy Agency (IEA) reiterated that China will boost the demand for crude oil in the global markets.
At 10 am on Monday, April Brent oil futures were at $80.16, up by 0.28 per cent; and March crude oil futures on WTI were at $73.53, up by 0.19 per cent.
February crude oil futures were trading at ₹6081 on Multi Commodity Exchange (MCX) in the initial trading hour of Monday morning against the previous close of ₹6097, down by 0.26 per cent; and March futures were trading at ₹6143 as against the previous close of ₹6159, down by 0.26 per cent.
Also read:Govt hikes windfall tax on crude oil, export of diesel, ATF
Quoting the Executive Director of IEA, Fatih Birol, a Reuters report said, “We expect about half of the growth in global oil demand this year will come from China.” He said China’s jet fuel demand is exploding, putting upward pressure on demand.
“If demand goes up very strongly, if the Chinese economy rebounds, then there will be a need, in my view, for the OPEC+ countries to look at their (output) policies,” he said.
Another factor that helped in boosting the prices was the price cap on Russian oil products. The price cap on Russian oil products by the G7 countries, the European Union, and Australia came into effect on February 5. Russia is one of the major producers of oil in the global market.
Also read:Indian refiners to maintain import momentum on Russian crude as new trade dynamic emerges
February natural gas futures were trading at ₹205.20 on MCX in the initial trading hour of Monday morning against the previous close of ₹201.30, up by 1.94 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), February guargum contracts were trading at ₹12589 in the initial trading hour of Monday morning against the previous close of ₹12815, down by 1.76 per cent.
March jeera futures were trading at ₹33600 on NCDEX in the initial trading hour of Monday morning against the previous close of ₹34205, down by 1.77 per cent.
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