Crude oil futures traded higher on Friday morning following reports of a disruption in the Canada-US crude pipeline.
At 10 am on Friday, February Brent oil futures were at $76.73, up by 0.76 per cent, and January crude oil futures on WTI were at $72, up by 0.76 per cent.
December crude oil futures were trading at ₹5,961 on Multi Commodity Exchange (MCX) in the initial trading hour of Friday morning against the previous close of ₹5,968, down by 0.12 per cent; and January futures were trading at ₹6,021 as against the previous close of ₹6,023, down by 0.03 per cent.
One of the largest spillage
According to news reports, there was an accident in Canada’s Keystone pipeline in the US, and this led to the closure of the pipeline. Following the accident, around 14,000 barrels of crude oil spilled into a creek in Kansas. Reports said it is one of the largest crude spills in the US in the past 10 years.
However, market analysts felt that the closure of the pipeline would be brief. This limited further rally in the price of crude oil.
Market also welcomed the relaxation of Covid-related restrictions in China, which is a major crude oil consumer in the global market. The relaxation in the restrictions will help boost the economy of that nation and boost demand for crude oil in the global market.
One of the factors that impacted the price of crude oil was the likely hike in interest rates by the US Federal Reserve in the coming days.
Jeera turns cool
December natural gas futures were trading at ₹486.20 on MCX in the Friday morning trade against the previous close of ₹503.70, down by 3.47 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), December steel long contracts were trading at ₹47,300 on Friday against the previous close of ₹46,700, up by 1.28 per cent.
December jeera futures were trading at ₹25,800 on NCDEX in early trading on Friday against the previous close of ₹25,995, down by 0.75 per cent.