Crude oil futures traded lower on Monday morning as the recent data from China showed a decline in imports.
At 9.52 am on Monday, May Brent oil futures were at $81.55, down by 0.65 per cent, and April crude oil futures on WTI (West Texas Intermediate) were at $77.47, down by 0.69 per cent.
March crude oil futures were trading at ₹6414 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹6459, down by 0.70 per cent, and April futures were trading at ₹6388 against the previous close of ₹6440, down by 0.81 per cent.
Beijing’s significance
China’s crude oil imports declined during the first two months of 2024 compared with December 2023. China imported 10.74 million barrels a day of crude oil during January-February of 2024 against 10.4 million barrels a day in the corresponding period of 2023, registering a growth of 3.3 per cent. The Chinese Lunar New Year holiday and the travel associated with it helped crude oil consumption during these two months.
However, crude oil imports in the first two months of 2024 were less than December’s import. China imported 11.39 million barrels a day of crude oil in December.
China is a major consumer of crude oil in the world market, and its consumption trend is significant in determining the price of the commodity.
Meanwhile, the market is awaiting data from other sources during the week. The US consumer price index (CPI) inflation data, scheduled for release on Tuesday, will provide more insight into the likely interest rate scenario in the US in the coming months.
Apart from this, monthly reports from OPEC (Organization of the Petroleum Exporting Countries) and IEA (International Energy Agency) are also expected during the week. These reports would give an idea about the market outlook for the commodity.
Turmeric, jeera flare up
March natural gas futures were trading at ₹152.20 on MCX against the previous close of ₹151.70, up by 0.33 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), April turmeric (farmer polished) contracts were trading at ₹18,808 a quitnal against the previous close of ₹18,086, up by 3.99 per cent.
April jeera futures were trading at ₹25,895 on NCDEX against the previous close of ₹25280, up by 2.43 per cent.