Crude oil futures traded higher on Monday morning as China lowered its key lending rates to boost its economy.
At 9.56 am on Monday, December Brent oil futures were at $73.45, up by 0.53 per cent, and December crude oil futures on WTI (West Texas Intermediate) were at $69.14, up by 0.66 per cent.
October crude oil futures were trading at ₹5850 on Multi Commodity Exchange (MCX) during the initial hour of Monday, down by 0.09 per cent compared to the previous close of ₹5,855, and November futures were trading at ₹5,836 compared to the previous close of ₹5,839, down by 0.05 percent.
On Monday, People’s Bank of China reduced the one-year loan prime rate (LPR) by 25 basis points to 3.1 per cent. LPR is a benchmark for most corporate and household loans.
It also reduced the five-year rate by 25 basis points to 3.6 per cent, a reference rate for property mortgages.
The reduction in interest rates is seen as a measure to boost China’s weakening economy. Lending rates in China were last cut in July. China is a major consumer of crude oil in the world market, and a weakening Chinese economy has impacted the demand for the commodity.
Meanwhile, reports said that multiple explosions were heard in Beirut, the capital of Lebanon, on Sunday.
A Reuters report said there was no immediate information on what caused the blasts or any further details of any casualties. However, it said an Israeli military spokesperson said earlier in a statement posted on social media platform X that it will begin attacking infrastructure belonging to the Hezbollah Al-Qard Al-Hassan Association.
October natural gas futures were trading at ₹188.50 on MCX during the initial hour of Monday’s trading, down by 1.26 percent from the previous close of ₹190.90.
On the National Commodities and Derivatives Exchange (NCDEX), December cottonseed oilcake contracts were trading at ₹3,040 in the initial hour of trading on Monday against the previous close of ₹3,013, up by 0.90 per cent.
November guargum futures were trading at ₹11,145 on NCDEX in the initial hour of Monday, down by 0.77 percent from the previous close of ₹11,232.