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Crude oil futures traded lower on Friday morning following the concerns over interest rate hikes by major economies.
August Brent oil futures were at $75.49, down by 0.24 per cent, at 9.55 am on Friday, while July crude oil futures on WTI were at $70.47, down by 0.21 per cent.
June crude oil futures were trading at ₹5,770 on Multi Commodity Exchange (MCX) in the initial trading hour against the previous close of ₹5796, down by 0.45 per cent, while July futures were trading at ₹5,813 against the previous close of ₹5835, down by 0.38 per cent.
On Thursday, European Central Bank (ECB) increased interest rates by 25 basis points in its effort to control inflation. ECB’s current interest rate stands at 4 per cent. This is the eighth successive interest rate increase by ECB since last July.
Though the US Federal Reserve paused interest rate hikes in its June meeting on Wednesday, it had indicated two more interest rate hikes by the end of the year.
According to market analysts, interest hikes may impact the demand for crude oil.
On the other hand, China is likely to reduce the benchmark loan prime rate next week to boost the economy. The proposed move will increase the demand for commodities such as crude oil.
China’s industrial production and retail sales data for May were below the market expectations, resulting in apprehensions in the market over the country’s economic recovery.
Other commodities
June aluminium futures were trading at ₹205.40 on MCX in the initial trading hour against the previous close of ₹204.55, up by 0.42 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), July guargum contracts were trading at ₹9,915 in the initial trading hour against the previous close of ₹9850, up by 0.66 per cent.
July jeera futures were trading at ₹48,800 on NCDEX in the initial trading hour of Friday morning against the previous close of ₹49265, down by 0.94 per cent.
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