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Crude oil futures traded higher on Tuesday morning as the investors in the market continued to monitor geopolitical tensions in the Middle East. Crude oil futures had suffered more than three per cent loss on Monday.
At 9.55 am on Tuesday, January Brent oil futures were at $86.60, up by 0.29 per cent; and December crude oil futures on WTI (West Texas Intermediate) were at $82.62, up by 0.38 per cent.
- Also Read: Crude oil futures trade marginally down
November crude oil futures were trading at ₹6891 on Multi Commodity Exchange (MCX) in the initial trading hour of Tuesday morning against the previous close of ₹6880, up by 0.16 per cent; and December futures were trading at ₹6863 as against the previous close of ₹6839, up by 0.35 per cent.
Meanwhile, both manufacturing and non-manufacturing PMI (purchasing managers index) showed a decline in China. China is a major consumer of crude oil in the global market and any decline in the growth would impact the demand for the commodity.
According to the National Bureau of Statistics of China, manufacturing PMI in China fell to 49.5 in October from 50.2 in September.
- Also Read: Crude oil gets a boost from US GDP data
However, the market was expecting this number to be at 50.2. This indicated that China is still struggling in its economic recovery.
Data from the National Bureau of Statistics of China showed the decline in non-manufacturing PMI to 50.6 in October from 51.70 in September. It was the lowest growth in the last 10 months.
Market is also eagerly waiting for the conclusion of the meeting of the US Federal Reserves on Wednesday. Though the market is expecting the Fed to keep the rates unchanged, there are apprehensions that the rates would remain higher for long.
US is a major consumer of crude oil and such a situation could impact the demand for the commodity.
- Also Read: Crude Check: Key supports stay valid
November natural gas futures were trading at ₹277.10 on MCX in the initial trading hour of Tuesday morning against the previous close of ₹279.70, down by 0.93 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), December jeera contracts were trading at ₹46425 in the initial trading hour of Tuesday morning against the previous close of ₹46745, down by 0.68 per cent.
November guargum futures were trading at ₹11512 on NCDEX in the initial trading hour of Tuesday morning against the previous close of ₹11575, down by 0.54 per cent.
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