Crude oil futures traded lower on Tuesday morning following concerns over slowing demand in China.
At 9.55 am on Tuesday, December Brent oil futures were at $74.09, down by 0.27 per cent, and December crude oil futures on WTI (West Texas Intermediate) were at $69.86, down by 0.26 per cent.
November crude oil futures were trading at ₹5898 on the Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday, against the previous close of ₹5932, down by 0.57 per cent, and December futures were trading at ₹5894 against the previous close of ₹5923, down by 0.49 per cent.
In an interview to Bloomberg television on Monday, the Executive Director of International Energy Agency (IEA), Fatih Birol, said the weakness in the Chinese economy would impact demand for the commodity in the global market. His comments came after the recent forecast of IEA on fuel demand. It had cut demand growth forecast due to concerns over China.
China is a major consumer of crude oil in the global market. The Chinese economy is struggling to recover. Market players feel that weak economic growth impacts the demand for commodities such as crude oil.
Market is also cautious about a potential increase in global oil supply as the OPEC+ is planning to restore production output in December.
On Monday, the US Secretary of State, Antony Blinken, travelled to West Asia to renew efforts to push for a ceasefire in the region. Further escalation in tensions could impact the supply of the commodity from the region.
November natural gas futures were trading at ₹239.10 on MCX during the initial hour of trading on Tuesday, against the previous close of ₹235.70, up by 1.44 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), December jeera contracts were trading at ₹24,865 in the initial hour of trading on Tuesday, against the previous close of ₹24,760, up by 0.42 per cent.
November guargum futures were trading at ₹11,100 on NCDEX in the initial hour of trading on Tuesday, against the previous close of ₹11,133, down by 0.30 per cent.
