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Crude oil futures traded higher on Friday morning as China’s inflation data indicated some improvement in its economy.
At 9.56 am on Friday, October Brent oil futures were at $79.26, up by 0.13 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $76.31, up by 0.16 per cent.
August crude oil futures were trading at ₹6,412 on Multi Commodity Exchange (MCX) during the initial hour of trading on Friday against the previous close of ₹6,422, down by 0.16 per cent, and September futures were trading at ₹6,332 against the previous close of ₹6,334, down by 0.03 per cent.
Consumer price index data released by the National Bureau of Statistics of China showed that July inflation was up by 0.5 per cent against 0.2 per cent in June. Market was expecting this number to be at 0.3 per cent for July. The latest data indicated an improvement in domestic demand in that country.
However, China’s producer price index declined by 0.8 per cent in July against the market forecast of a 0.9 per cent decline. China’s producer price index declined by 0.8 per cent in June also. Market reports said this was the softest decline since January following various support initiatives by the Chinese government.
China is one of the major consumers of crude oil in the global market, and an improvement in its economy boosts the demand for the commodity in the global market.
According to the US Department of Labour, the number of people claiming unemployment benefits in that country declined by 17,000 to 230,000 for the week ending August 3. Market was expecting this number to be at 240,000. The number of people claiming unemployment benefits in the US was at 250,000 in the previous week.
A positive jobs data from the US allayed apprehensions over a recession in that country. This also helped boost the price of crude oil.
August zinc futures were trading at ₹253.85 on MCX during the initial hour of trading on Friday against the previous close of ₹251.40, up by 0.97 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), August jeera contracts were trading at ₹27,080 in the initial hour of trading on Friday against the previous close of ₹26,650, up by 1.61 per cent.
August dhaniya futures were trading at ₹6,990 on NCDEX in the initial hour of trading on Friday against the previous close of ₹6,920, up by 1.01 per cent.
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