Crude oil traded higher on Monday morning following China’s plans to relax Covid-control norms to boost its economy. Added to this, the US government’s decision to replenish its strategic petroleum reserves also helped boost the price of the commodity.
At 10.01 am, the February Brent oil futures were at $79.88, up by 1.06 per cent, and January crude oil futures on WTI were at $75.08, up by 1.06 per cent.
January crude oil futures were trading at ₹6,264 on Multi Commodity Exchange (MCX) in the early trade against the previous close of ₹6,214, up by 0.80 per cent, and February futures at ₹6,317 against the previous close of ₹6,270, up by 0.75 per cent.
Rise in fuel demand
Market reports said China has commenced relaxing the Covid-control measures to boost the economy. The recent China’s road and air transport statistics showed an increased demand for fuel.
Chinese economy was affected by Covid-related control measures since a year. China is one of the major consumers of crude oil, and any impact on the economic activities affects the global demand .
However, market reports cautioned that the increase in the number of Covid cases in China in the past few weeks may lead to volatility in the market.
The crude oil prices also got a boost from the US Energy Department’s decision to replenish its strategic petroleum reserves.
Following the US government’s decision in March to release around 180 million barrels of crude oil from the strategic petroleum reserves to combat the increase in the prices of the commodity then, the stockpile had reached the lowest level in 40 years.
The US Energy Department intends to replenish the strategic petroleum reserves when the crude prices are trading at lower levels.
Jeera flares up, dhaniya cools
December natural gas futures were trading at ₹513.50 on MCX in the initial trading hour of Monday morning against the previous close of ₹546.40, down by 6.02 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), January jeera contracts were trading at ₹27,740 in the initial trading hour of Monday morning against the previous close of ₹27,210, up by 1.95 per cent.
January dhaniya futures were trading at ₹8,222 on NCDEX in the morning trade against the previous close of ₹8,350, down by 1.53 per cent.