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Crude oil futures traded higher on Friday morning with the market hoping for a pause in the interest rate hikes by the US Federal Reserve in its meeting next week.
At 9.57 am on Friday, September Brent oil futures were at $80.26, up by 0.78 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $76.27, up by 0.82 per cent.
August crude oil futures were trading at ₹6262 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹6211, up by 0.82 per cent, and September futures were trading at ₹6272 against the previous close of ₹6222, up by 0.80 per cent.
Inflation data pointer
It is widely expected that the two-day meeting of the US Federal Reserve next week may increase the interest rates by 25 basis points. The market is expecting that the Fed Reserve will retain the interest rates at 5.5 per cent for rest of 2023 after the likely hike of 25 basis points next week.
Meanwhile, there are also expectations of a pause in the rate hike due to US inflation data, which was weaker than the expectations of the market. Inflation data had helped in the upward movement of oil prices in July. Any pause in the rate hike could help boost the price of crude oil in the market.
The possible stimulus measures by the Chinese government to support the economy in that country also supported the price of the crude oil. Recently an official from the National Development and Reform Commission of China had stated policies would be rolled out to restore and expand consumption in the Chinese market.
Also read: China announces steps to boost sales of cars, electronics
Despite several measures by China, the second quarter GDP growth in that country was slower than the first quarter of 2023.
China saw 0.8 per cent GDP growth in the second quarter of 2023 against 2.2 per cent in Q1.This reading was below the Q1 GDP growth of 2.2 per cent.
Such economic indicators have shown weakness in the economic growth China. Being a major consumer of crude oil in the world market, slowdown in its economy impacts the prices of crude oil.
Guar gum tops ₹12,000/quintal
August natural gas futures were trading at ₹223.90 on MCX against the previous close of ₹224.60, down by 0.31 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), August guar gum contracts were trading at ₹12,010 against the previous close of ₹11,818, up by 1.62 per cent.
August jeera futures were trading at ₹61,770 on NCDEX against the previous close of ₹60,910, up by 1.41 per cent.
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