Crude oil up as Caixin PMI data shows pick up in China’s service activities

Crude oil futures traded higher on Friday morning as China’s services activities increased slightly in October.

At 9.52 am on Friday, January Brent oil futures were at $87.06, up by 0.24 per cent; and December crude oil futures on WTI (West Texas Intermediate) were at $82.76, up by 0.36 per cent.

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November crude oil futures were trading at ₹6,898 on the Multi Commodity Exchange (MCX) in the initial trading hour of Friday morning against the previous close of ₹6,892, up by 0.09 per cent; and December futures were trading at ₹6,882 as against the previous close of ₹6,880, up by 0.03 per cent.

The Caixin/S&P Global services purchasing managers’ index (PMI) increased to 50.4 in October from 50.2 in September. In fact, September’s PMI was the lowest in the nine months. According to market reports, the services sector provides around 48 per cent of jobs in China.

Ease of travel helped attract more foreign tourists to China as a result of which the foreign sales witnessed a growth for the second consecutive month in October. China is a major consumer of crude oil in the world market.

Meanwhile, both the US and China had recorded weaker-than-expected data earlier this week with regard to manufacturing activities. This data from two of the major crude oil consumers had made an impact on the crude oil prices in the market during the week.

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The market is also monitoring the geopolitical developments in the Middle East as the US is trying to explore pauses in the war between Israel and Hamas to help people exit Gaza safely.

November natural gas futures were trading at ₹293.10 on MCX in the initial trading hour of Friday morning against the previous close of ₹288.60, up by 1.56 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), December cottonseed oilcake contracts were trading at ₹2988 in the initial trading hour of Friday morning against the previous close of ₹2,955, up by 1.12 per cent.

November jeera futures were trading at ₹39,485 on NCDEX in the initial trading hour of Friday morning against the previous close of ₹40,515, down by 2.54 per cent.