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Crude oil futures traded higher on Tuesday morning as the market expected stimulus measures from China to support its economic growth.
At 9.55 am on Tuesday, September Brent oil futures were at $78.77, up by 0.34 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $74.37, up by 0.39 per cent.
July crude oil futures were trading at ₹6,107 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹6,088, up by 0.31 per cent, and August futures were trading at ₹6122 against the previous close of ₹6098, up by 0.39 per cent.
Though China’s second-quarter GDP numbers disappointed the markets on Monday, the market is hoping for stimulus measures from the Chinese government to boost its economy.
Stimulus measures
Market reports citing information from Chinese media said the People’s Bank of China could cut reserve requirements in the third quarter of 2023 to infuse liquidity to boost the economy. People’s Bank of China had reduced the reserve requirement ratio from 11 per cent to 10.75 per cent in March. This was prior to relaxing most of the Covid-related restrictions in that country.
Stimulus measures to support the economy could help boost the demand for commodities such as crude oil. China is a major crude oil buyer in the world market.
Also read: Sensex, Nifty touch fresh record high levels in early trade
Meanwhile, a Reuters report said that US shale oil production could fall to nearly 9.40 million barrels a day in August. It quoted the data from the US EIA (Energy Information Administration) for this.
Jeera tops ₹60,000, turmeric closes in on ₹12,000
July mentha oil futures were trading at ₹896.70 on MCX in the initial trading hour of Tuesday morning against the previous close of ₹890.30, up by 0.72 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), July jeera contracts were trading at ₹60,940 in the initial trading hour of Tuesday morning against the previous close of ₹58,600, up by 3.99 per cent.
August turmeric (farmer polished) futures were trading at ₹11974 on NCDEX in the initial trading hour of Tuesday morning against the previous close of ₹12208, down by 1.92 per cent.
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