Crude oil down amidst mixed inflation data from China

Crude oil futures traded lower on Monday morning amidst mixed inflation data from China.

At 9.52 am on Monday, July Brent oil futures were at $82.53, down by 0.31 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $78.08, down by 0.23 per cent.

May crude oil futures were trading at ₹6,528 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹6,551, down by 0.35 per cent, and June futures were trading at ₹6,510 against the previous close of ₹6,535, down by 0.38 per cent.

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Awaiting US price index data

According to the National Bureau of Statistics of China, consumer price index inflation of China increased to 0.3 per cent in April against 0.1 per cent in March. This was the third month of recovery in consumer price index inflation.

At the same time, data released by the National Bureau of Statistics of China showed a decline in producer price index inflation in China. It declined by 2.5 per cent in April against a decrease of 2.8 per cent in March. It was the 19th straight month of decline.

China is a major consumer of crude oil in the world market. Recovery in economy in China is important for boosting the demand for commodities such as crude oil.

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Meanwhile, the market is awaiting consumer price index and producer price index inflation data from the US during the week. Market will watch out for any signal on cooling of inflation in the US. Market reports said that any signals on cooling of inflation could help the US Federal Reserve in taking a decision on interest rate cuts in that country.

US is also a major consumer of crude oil in the world market, and a reduction in interest rate would help boost the demand for crude oil.

Jeera futures top ₹28,000

May natural gas futures were trading at ₹187.30 on MCX against the previous close of ₹189.40, down by 1.11 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), May jeera contracts were trading at ₹28,100 against the previous close of ₹27,050, up by 3.88 per cent.

May cottonseed oilcake futures were trading at ₹2,608 on NCDEX against the previous close of ₹2,572, up by 1.40 per cent.

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