Crude oil futures traded lower on Wednesday morning as the markets awaited the release of the minutes of the June meeting of the US Federal Reserve.
At 9.55 am on Wednesday, September Brent oil futures were at $75.78, down by 0.62 per cent, and August crude oil futures on WTI (West Texas Intermediate) were at $70.87, up by 1.55 per cent.
July crude oil futures were trading at ₹5,828 on the Multi Commodity Exchange (MCX) during initial trading, against the previous close of ₹5,850, down by 0.38 per cent, and August futures were trading at ₹5,863, as against the previous close of ₹5,880, down by 0.29 per cent.
Economic indicators
The US Federal Reserve is expected to release the minutes of the June meeting later on Wednesday. Though it did not increase interest rates in its June meeting, it had indicated at least two more interest rate hikes during the year, as US inflation remained above the Fed Reserve’s target.
Any increase in the interest rate would make commodities such as crude oil costlier, impacting its demand. Market reports now indicate that the Fed Reserve may opt for an interest rate increase of 25 basis points in its July meeting.
Recent economic indicators from China showed that the economic recovery in that country was not along expected lines. Added to this, China imposed restrictions on the export of some chip-making materials to the US during the week. Market reports said the move could escalate the trade war between China and the US. This, in turn, may impact the Chinese economy, which is struggling to recover.
China is a major consumer of crude oil in the global market. A slowdown in that country will have an impact on demand in the global market.
Turmeric turns cool, jeera hot
July natural gas futures were trading at ₹227.30 on MCX, against the previous close of ₹225.90, up by 0.62 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), July jeera contracts were trading at ₹54,820, against the previous close of ₹54,035, up by 1.45 per cent.
August turmeric (farmer polished) futures were trading at ₹9,778 on NCDEX in the initial trading hour of Wednesday morning, against the previous close of ₹9,868, down by 0.91 per cent.