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Crude oil futures traded lower on Monday morning due to concerns over demand for the commodity in China.
At 9.55 am on Monday, October Brent oil futures were at $79.59, down by 0.11 per cent, and October crude oil futures on WTI (West Texas Intermediate) were at $75.42, down by 0.16 per cent.
September crude oil futures were trading at ₹6,340 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday against the previous close of ₹6,355, down by 0.24 per cent, and October futures were trading at ₹6,292 against the previous close of ₹6,320, down by 0.44 per cent.
- Also read: Crude Check: Outlook is uncertain
Recent reports showed lack of pace in China’s economic growth. There were decline in home prices in that country, and increase in unemployment. Many refineries in that country reduced their crude oil processing.
Added to this, the recent monthly oil market reports by the Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) forecasted the decline in demand for the commodity in 2024. One of the main reasons for this forecast was the decline in demand from China. China is the second largest consumer of crude oil in the global market.
Meanwhile, efforts are on for a ceasefire deal between Israel and Hamas in West Asia region. The US Secretary of State, Antony Blinken, reached Israel on Sunday to discuss the deal. However, Hamas expressed its apprehensions over the deal, stating that Israel is undermining Blinken’s efforts.
August natural gas futures were trading at ₹178 on MCX during the initial hour of trading on Monday against the previous close of ₹179.20, down by 0.67 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), August cottonseed oilcake contracts were trading at ₹3048 in the initial hour of trading on Monday against the previous close of ₹2,945, up by 3.50 per cent.
September dhaniya futures were trading at ₹6,850 on NCDEX in the initial hour of trading on Monday against the previous close of ₹6,780, up by 1.03 per cent.
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