Crude oil futures are slightly ahead of China demand outlook

Crude oil futures traded marginally higher early Thursday after showing recent signs of improvement in the Chinese economy. China is one of the largest consumers of crude oil in the world.

At 9:56 am, May Brent oil futures were at $84.38, up 0.08 percent; and April crude oil futures on WTI were at $77.72, up 0.04 percent.

March crude oil futures on the Multi Commodity Exchange (MCX) traded at ₹6,429 in the first trade from the previous close of ₹6,359, up 1.10 percent; and April futures traded at ₹6,465 from the previous close of ₹6,397, up 1.06 percent.

China’s economy has long been affected by the strict Covid control measures followed in this country. Indeed, this had an impact on the demand for crude oil in the world market. China, however, showed early signs of economic improvement, posting a PMI (Purchasing Managers’ Index) of 56.4 in February, up from 52.9 in January.

However, the rise in US crude inventories limited further gains in crude oil futures.

Official US EIA (Energy Information Administration) data on the US oil status for the week ended February 24, released March 1, showed that US commercial crude stocks (excluding strategic oil reserves) were rising are up from 1.2 million barrels from the previous week.

US crude inventories were 480.2 million barrels, about 9 percent above the five-year average for this time of year.

Total product shipped in the US over the past four weeks averaged 20.1 million barrels per day, down 7.4 percent from the same period last year. US crude oil imports averaged 6.2 million barrels per day last week, down 118,000 barrels per day from the previous week.

MCX natural gas

March natural gas futures on MCX traded at ₹231.20 in the first few trades versus the previous close of ₹227.60, up 1.58 percent.

Guar gum and jeera

On the National Commodities and Derivatives Exchange (NCDEX), March guar kernel contracts traded at ₹11,945 in early trade from the previous close of ₹12,052, down 0.89 percent.

March Jeera futures on the NCDEX traded at ₹30,925 for the first hours on Thursday from the previous close of ₹31,375, down 1.43 percent.