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Crude oil futures traded lower on Wednesday morning following weak manufacturing data from China.
At 9.56 am on Wednesday, August Brent oil futures were at $73.52, down by 0.26 per cent, and July crude oil futures on WTI were at $69.28, down by 0.26 per cent.
June crude oil futures were trading at ₹5,749 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹5,756, down by 0.12 per cent, and July futures were trading at ₹5,780 as against the previous close of ₹5785, down by 0.09 per cent.
Demand concerns
China’s manufacturing purchasing managers index (PMI) declined to 48.8 in May against 49.2 in April. China’s manufacturing PMI in May was less than the market forecast. This decline led to concerns in the market over the demand for crude oil in that country. China is a major importer of the commodity in the global market.
However, the news on raising the US debt ceiling lifted the market sentiments on Wednesday morning limiting further fall in the price of the commodity.
As reported earlier, US President Joe Biden and Republican House Speaker Kevin McCarthy had agreed in principle to suspend the $31.4 trillion government debt ceiling for the next two years. This passed an important hurdle with the US House Rules Committee approving a debate on this. On Wednesday, the House of Representatives in the US is likely to discuss this matter and vote to pass the bill. The bill will be sent to the Senate, if approved here.
Also read: BL Explainer: What if US debt ceiling is not raised?
The US Congress needs to approve this bill before June 5. Any failure to do so will lead to a debt default.
Guar gum, cottonseed oilcake dip
June natural gas futures were trading at ₹191.50 on MCX in the initial trading hour of Wednesday morning against the previous close of ₹189.30, up by 1.16 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June cottonseed oilcake contracts were trading at ₹2,559 in early trade against the previous close of ₹2,578, down by 0.74 per cent.
Also read: Rupee falls 3 paise to 82.70 against US dollar
June guar gum futures were trading at ₹10,963 on NCDEX against the previous close of ₹11,043, down by 0.72 per cent.
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