Crude oil markets are expected to post a second straight week of losses amid a weaker demand outlook for the commodity from economies around the world. Crude oil futures, however, were higher in early trade on Friday.
As of 9.54 am on Friday, Brent October crude oil futures were at $83.62, up 0.31%; WTI (West Texas Intermediate) October crude oil futures were at $79.33, up 0.35%.
Crude oil futures for September on Multi Commodity Exchange (MCX) first traded at Rs 6,566, up 0.71% from previous close of Rs 6,520; October futures traded at Rs 6,559, up 6,517, or 0.64% from previous close of Rs 6,520 .
Will Saudi Arabia expand production cuts?
Market reports said that Saudi Arabia, one of the major crude oil producers in the global market, is planning to extend production cuts of 1 million barrels per day until October. That helps drive up commodity prices.
However, concerns about higher U.S. interest rates limited further gains.
Markets are now awaiting Fed Chairman Jerome Powell’s speech at the Jackson Hole Symposium today for more clues on US interest rate hikes. Markets expect Powell to outline the Fed’s interest rate plans to keep U.S. inflation in check.
Given the inflation situation in the United States, the market is worried that Powell may signal that the United States will raise interest rates for the rest of this year. Market participants believe that rising interest rates may further strengthen the dollar, making crude oil more expensive in the market. Higher interest rates could also slow economic activity. These factors may affect the demand for the commodity.
Guar Gum, Turmeric Light
MCX September natural gas futures traded at Rs 218.10, down 1.04 percent, from the previous close of Rs 220.40.
On NCDEX, the October contract for guar gum was up Rs 114 at Rs 13,300 per quintal. Guarseed October futures settled up Rs 38 at Rs 6,450 per quintal. Jeera September futures fell by Rs 220 to Rs 56,300 per quintal while the October turmeric contract gained Rs 60 to Rs 16,140 per quintal.