Crude oil futures traded below $80 a barrel on Wednesday morning as the market feared a potential recession in the US in 2023.
At 10 am on Wednesday, February Brent oil futures were at $79.48, up by 0.16 per cent, and January crude oil futures on WTI were at $74.28, up by 0.04 per cent.
December crude oil futures were trading at ₹6,177 on Multi Commodity Exchange (MCX) in the initial trading hour of Wednesday morning against the previous close of ₹6,153, up by 0.39 per cent; and January futures were trading at ₹6,252 as against the previous close of ₹6,220, up by 0.51 per cent.
Consumer spending may be hit
Reports quoting some bankers in the US said high inflation will impact consumer spending and noted that this could lead the US economy into recession in 2023.
The US witnessed a strong services and jobs data recently. There is an apprehension in the market that these data may lead to the further monetary tightening by the US Fed Reserve.
As reported earlier, the price cap by G7 nations on the import of Russian crude oil has come into force on December 5.
Meanwhile, market reports quoting a Russian media said that Russia is considering options such as a ban on the sale of oil to the countries supporting that price cap, and setting a maximum discount at which Russia could sell crude to counter the price cap.
Jeera cools down
December natural gas futures were trading at ₹462 on MCX in the initial trading hour of Wednesday morning against the previous close of ₹453.80, up by 1.81 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), December steel long contracts were trading at ₹45,800 in the initial trading hour of Wednesday morning against the previous close of ₹45,620, up by 0.39 per cent.
December jeera futures were trading at ₹25,260 on NCDEX in the initial trading hour of Wednesday morning against the previous close of ₹25,430, down by 0.67 per cent.