Crude oil gains on better-than-expected China’s GDP numbers

BL Mangaluru Bureau Updated - April 18, 2023 at 10:19 AM.

At 4.5%, China’s GDP indicates economic recovery, driving the crude oil’s demand

April crude oil futures were trading at ₹6,647 on the MCX during the initial trade against the previous close of ₹6,632, up by 0.23 per cent, and May futures at ₹6,664 against the previous close of ₹6,646, up by 0.27 per cent.

Crude oil futures traded higher on Tuesday’s early deals with China publishing more-than-the-expected quarterly GDP numbers.

At 9.53 am, the June Brent oil futures were at $85, up by 0.28 per cent, and June crude oil futures on WTI were at $81.06, up by 0.28 per cent.

April crude oil futures were trading at ₹6,647 on the Multi Commodity Exchange (MCX) during the initial trade against the previous close of ₹6,632, up by 0.23 per cent, and May futures at ₹6,664 against the previous close of ₹6,646, up by 0.27 per cent.

Indications of recovery

According to the data published by the National Bureau of Statistics of China, the GDP of that country was at 4.5 per cent in the first quarter if 2023 against 2.9 per cent in the fourth quarter of 2022. The Q1 GDP number was more than what the market was expecting.

The strong GDP number indicated the recovery in the economic activities in that country after a long economic slowdown due to the Covid-induced lockdowns in that country.

A recent report of IEA (International Energy Agency) indicated that China will significantly contribute to the crude oil’s global demand recovery in 2023.

Jeera below ₹40,000/quintal

April lead futures were trading at ₹182.10 on MCX in early deals against the previous close of ₹181.50, up by 0.33 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), May guar gum contracts were trading at ₹11,480 against the previous close of ₹11427, up by 0.46 per cent.

April jeera futures were trading at ₹39,710 on NCDEX in the initial trading hour of Tuesday morning against the previous close of ₹40190, down by 1.19 per cent.

Published on April 18, 2023 04:49

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