Crude oil futures saw declines in early Friday trading due to subdued economic signals from various countries.
During the initial hour on Friday, August crude oil futures on the Multi Commodity Exchange (MCX) were at ₹6,767, down 1.15% from the previous close of ₹6,846. Similarly, September futures were trading at ₹6,699, a decrease of 0.36% from ₹6,723.
The strength of the US dollar contributed to decreased demand for commodities like crude oil. A robust dollar raises costs for investors holding other currencies, impacting overall demand.
In the US, jobless claims for the week ending July 13 rose unexpectedly to 243,000, up from 230,000 anticipated by the market. This increase suggests potential economic challenges ahead.
China’s Third Plenum of the Communist Party, held on Thursday, did not outline specific economic strategies, disappointing market expectations for measures to stimulate the economy. China, the world’s second largest crude oil consumer, plays a significant role in global demand dynamics.
Meanwhile, Japan reported an annual inflation rate of 2.8% in June 2024, unchanged for the second consecutive month. This data will be crucial for the upcoming policy meeting of the Bank of Japan scheduled for July 30-31, potentially influencing decisions on interest rates.
Turning to other commodities, July natural gas futures on MCX traded at ₹176.30, down 0.84% from the previous close of ₹177.80. On the National Commodities and Derivatives Exchange (NCDEX), August jeera contracts rose to ₹27,300 from ₹27,030, marking a 1% increase. August turmeric (farmer polished) futures on NCDEX declined by 1.75% to ₹15,934 from ₹16,218.
These movements reflect the complex interplay of economic indicators and market expectations influencing commodity prices globally.
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