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Crude oil traded lower on Monday morning as the market was cautiously awaiting some key data from the US (a key crude oil importer) during the week.
At 9.55 am , August Brent oil futures were at $73.97, down by 1.10 per cent, and July crude oil futures on WTI were at $69.39, down by 1.11 per cent.
June crude oil futures were trading at ₹5732 on Multi Commodity Exchange (MCX) during initial against the previous close of ₹5824, down by 1.58 per cent, and July futures were trading at ₹5775 as against the previous close of ₹5866, down by 1.55 per cent.
- Also read — Crude check: Range stays intact
Rate hike impact
Market is eagerly waiting for the announcement of the US Federal Reserve on interest rates on Wednesday. The two-day monetary policy meeting of the Fed will conclude on Wednesday.
The market is expecting the interest rates to remain unchanged. Any hike in the interest rates by the US Federal Reserve will lead to the increase in the price of crude oil impacting its demand in the market. Apart from this, the US consumer inflation data will be released on Tuesday.
On Sunday, Ayatollah Ali Khamenei, supreme leader of Iran, said Iran’s nuclear deal with the west is possible, if Iran’s nuclear infrastructure remained intact. The 2015 deal made it difficult for Iran to take up uranium enrichment activity. This was a condition for the west to lift international sanctions on Iran oil exports. If sanctions are lifted on Iran, it will help increase the supply of crude oil to the market. This may lead to the decline in the price of the commodity.
Guar gum slips, castor seed gains
June natural gas futures were trading at ₹188.40 on MCX against the previous close of ₹187.20, down by 0.64 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June guar gum contracts were trading at ₹9909 against the previous close of ₹10266, down by 3.48 per cent.
June castor seed futures were trading at ₹5640 on NCDEX against the previous close of ₹5586, up by 0.97 per cent.
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