Crude oil futures traded lower on Friday morning following weak economic signals from different countries.
August crude oil futures were trading at ₹676,7 on the Multi Commodity Exchange (MCX) during the initial hour of trading on Friday, against the previous close of ₹6,846, down by 1.15 per cent, and September futures were trading at ₹6,699, against the previous close of ₹6,723, down by 0.36 per cent.
A strong US dollar impacted the demand for commodities such as crude oil. Investors holding other currencies trade in dollars, and a strong dollar makes the commodity costlier for such investors.
Meanwhile, there was an increase in jobless claims in the US for the week ending July 13. The number of people claiming unemployment benefits in the US increased by 10,000 to 243,000 for the week ending July 13. The market was expecting it to be at around 230,000.
The third plemum of the China’s Communist Party on Thursday did not offer any specific roadmap for Chinese economy. Plenum is a meeting of the 205-member Central Committee, which is held once every five years.
Market was expecting announcements on some measures to revive the economy in China. A weak economy in that country impacts demand for commodities such as crude oil in the global market. China is the second largest consumer of crude oil globally.
In Japan, the annual inflation rate stood at 2.8 per cent in June 2024, holding steady for the second straight month. This data will be a crucial input for the policy meeting of Bank of Japan, which is scheduled for July 30-31. Market is expecting that this number could make the bank to consider interest rate hike in that country.
July natural gas futures were trading at ₹176.30 on MCX during the initial hour of trading on Friday against the previous close of ₹177.80, down by 0.84 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), August jeera contracts were trading at ₹27300 in the initial hour of trading on Friday against the previous close of ₹27030, up by 1 per cent.
August turmeric (farmer polished) futures were trading at ₹15934 on NCDEX in the initial hour of trading on Friday against the previous close of ₹16218, down by 1.75 per cent.