Crude oil futures fell Tuesday morning after weak economic data from China and a weakening OPEC demand outlook for 2023.
At 10:02 am on Tuesday, January Brent crude futures were down 0.25% to $92.91 and WTI December crude futures were down 0.54% to $85.41.
Crude oil futures for November were trading at INR 6,953 on the Multi Commodity Exchange (MCX) in the first trading hours on Tuesday morning. Futures for December have him trading at Rs 6,946, down 0.23% from the previous close of Rs 6,962.
Impact on market sentiment
Two sets of data released by China affected market sentiment. According to data from the National Bureau of Statistics of China, industrial production in October increased by 5% from 6.3% in September. Market expectations for October were 5.2%.
China’s retail sales fell 0.5% in October, compared with growth of 2.5% in September, according to the bureau. The market had expected growth of around 1% in October.
The data show the weakness of the Chinese economy. The country has relied on lockdowns, tests, etc. to control the spread of Covid-19. Its zero Covid policy is affecting the economy. China is a major consumer of crude oil.
The OPEC Monthly Oil Market Report, released on November 14, predicted a decline in global oil demand in 2023.
The report lowered its forecast for demand growth in 2022 by 100,000 barrels per day to 2.5 million barrels per day. He said the second quarter of this year was revised slightly higher amid better-than-expected oil demand. , revised down due to ongoing geopolitical uncertainty and weakening economic activity.
Global oil demand growth forecast for 2023 is lowered by 100,000 barrels per day to 2.2 million barrels per day. Oil demand growth is expected to be impacted by economic uncertainty, coronavirus containment measures and geopolitical developments, according to the report.
lead, steel, daniyagain
Lead futures for November were trading at Rs 186.75 on the MCX during the first trading hours on Tuesday morning, up 0.81% to a previous close of Rs 185.25.
On the National Commodities and Derivatives Exchange (NCDEX), November steel long contracts were trading at INR 45,770 in the first trading hours on Tuesday morning.
November Dhaniya futures were trading at INR 11,030 on NCDEX during the first trading hours on Tuesday morning.
