Crude Oil Today: Prices rise as China reports higher-than-expected exports growth

Crude oil futures traded higher on Friday morning as the trade data from China showed improvement in its economy.

At 9.52 am on Friday, July Brent oil futures were at $84.36, up by 0.57 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $79.79, up by 0.67 per cent.

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May crude oil futures were trading at ₹6,663 on Multi Commodity Exchange (MCX) during initial trading on Friday morning against the previous close of ₹6,606, up by 0.86 per cent, and June futures were trading at ₹6,645 against the previous close of ₹6,587, up by 0.88 per cent.

Uncertainty over rate cut

Data released by China’s General Administration of Customs showed a 1.5 per cent growth in exports during April against a decline of 7.5 per cent in March. The market expected growth to be around 1 per cent in April.

China’s imports went up by 8.5 per cent in April against a decline of 1.9 per cent in March. Market was expecting China’s imports to grow by 5.4 per cent in April.

Growth in imports in China, which was seen in the latest trade data, boosted the hopes for increase in demand for commodities such as crude oil from that country. China is a major consumer of crude oil in the world market.

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At a time when the market is eagerly waiting for an interest rate cut in the US, San Francisco Federal Reserve President Mary Daly said on Thursday that there is considerable uncertainty about where inflation will head in coming months.

A Reuters report said Daly did not say if she felt the US Federal Reserve was likely or not to cut interest rates this year.

A reduction in interest rate will help boost the demand for commodities such as crude oil.

Turmeric loses sheen, castorseed shines

Meanwhile, Israel announced its decision to go ahead with the plans to invade Rafah and other parts of Gaza. The latest round of peace deal negotiations with Hamas in Egypt failed to make any progress. The Israeli Prime Minister, Benjamin Netanyahu, dismissed the threat of the US President, Joe Biden, to withhold weapons to Israel if it invades Rafah.

May natural gas futures were trading at ₹195.10 on MCX during the initial hour of trading on Friday morning against the previous close of ₹191.10, up by 2.09 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), May castorseed contracts were trading at ₹5,590 in the initial hour of trading on Friday morning against the previous close of ₹5,563, up by 0.49 per cent.

June turmeric (farmer polished) futures were trading at ₹18,300 on NCDEX in the initial hour of trading on Friday morning against the previous close of ₹18,730, down by 2.30 per cent.