Crude oil futures traded lower on Monday morning as the US inflation data brought down the chances of interest rate cuts by US Federal Reserve.At 9.53 am on Monday, July Brent oil futures were at $87.54, down by 0.76 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $83.21, down by 0.76 per cent. May crude oil futures were trading at ₹6,947 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday morning against the previous close of ₹6,999, down by 0.74 per cent, and June futures were trading at ₹6,907 against the previous close of ₹6,958, down by 0.73 per cent.
Also read: Crude Check: Rally anticipated as support holdsRecent data showed that PCE Price Index in US rose 2.7 per cent in March against an increase of 2.5 per cent in February. Market was expecting 2.6 per cent increase during March. US Federal Reserve takes this data into consideration while fixing its interest rates. Data for March remains above the Fed’s target of 2 per cent. According to market reports, lower inflation would have led to interest rate cut by US Federal Reserve. A cut in interest rate would help boost the economic growth and create demand for commodities such as crude oil that are traded in dollar. Another factor that led to the decline in crude oil price was the increased efforts for a ceasefire between Israel and Hamas. A . report said that a delegation from Hamas will visit Cairo on Monday for peace talks. On Saturday, Israel’s foreign minister said that a planned incursion into Rafah could be put on hold if the proposed peace deal includes the release of Israeli hostages held by Hamas.Meanwhile, there were also reports of a possible oil supply disruption from Russia following the drone attacks by Ukraine on the Ilsky and Slavyansk oil refineries in Russia over the weekend. Reports said Slavyansk refinery had to suspend some operations after the attack. May natural gas futures were trading at ₹163 on MCX during the initial hour of trading on Monday morning against the previous close of ₹160.50, up by 1.56 per cent.On the National Commodities and Derivatives Exchange (NCDEX), June turmeric (farmer polished) contracts were trading at ₹19180 in the initial hour of trading on Monday morning against the previous close of ₹19030, up by 0.79 per cent.May castorseed futures were trading at ₹5,710 on NCDEX in the initial hour of trading on Monday morning against the previous close of ₹5,754, down by 0.76 per cent.SHARE
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