Crude oil futures are trading higher on Friday morning. However, the market is set to end the week lower as the weakening demand outlook for the commodity overtook tight supply concerns.
At 10.04 am on Friday, January Brent oil futures were at $90.63, up by 0.95 per cent; and December crude oil futures on WTI were at $82.64, up by 1.22 per cent.
November crude oil futures were trading at ₹6,738 on Multi Commodity Exchange (MCX) in the initial trading hour of Friday morning against the previous close of ₹6692, up by 0.69 per cent; and December futures were trading at ₹6755 against the previous close of ₹6720, up by 0.52 per cent.
Market reports noted that the crude oil prices were up on Friday morning as there was a slight fall in the dollar. While a strong dollar makes the commodity expensive for people holding other currencies, a weak dollar makes it cheaper for them.
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However, the crude oil was set to end the week lower. Some market reports noted that aggressive monetary tightening by some major economies could result in recession impacting the demand for crude oil.
Data by the National Health Commission of China showed the number of new Covid cases are at 25,353 on November 17 against 23,276 new cases on November 16. China has been reporting more than 20,000 new cases every day for the past few days.
There is an apprehension that China, which is a leading consumer of crude oil, would take aggressive measures to control the spread of the disease.
China has been imposing stringent measures such as lockdowns, intensive sample testing, etc. that adversely affect the demand for the commodity.
Tight supply conditions persist in the global market as the European Union ban on Russian crude oil imports will be effective from December.
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Dollar index fell 0.17 per cent to 106.51
November natural gas futures were trading at ₹515.90 on MCX in the initial trading hour of Friday morning against the previous close of ₹527.30, down by 2.16 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), December guargum contracts were trading at ₹11955 in the initial trading hour of Friday morning against the previous close of ₹11734, up by 1.88 per cent.
December steel long futures were trading at ₹43270 on NCDEX in the initial trading hour of Friday morning against the previous close of ₹43990, down by 1.64 per cent.