Crude oil futures traded higher on Monday morning as markets breathed a sigh of relief after the US avoided a possible government shutdown this weekend.
At 9:57 a.m. on Monday, March, Brent crude futures were at $72.93, up 0.51 percent, and February WTI (West Texas Intermediate) crude futures were at $69.86, up 0.58 percent .
January crude oil futures traded at ₹5,961 on the Multi Commodity Exchange (MCX) during the first hour of trading on Monday against the previous close of ₹5,938, up 0.39 per cent, and February futures traded at ₹5,954 compared to the previous closing price. from ₹5,924, an increase of 0.51 percent.
Fears of a shutdown rose in the US after newly-elected President Donald Trump criticized a funding bill. He also proposed a revised bill that aimed to increase the debt limit. The revised bill was rejected by lawmakers.
However, market players were relieved after the US Congress passed a spending bill late on Saturday evening that avoids the possibility of a weekend shutdown in the US. US President Joe Biden has approved the spending bill that provides government funding until March.
A US shutdown would have affected holiday travel in the US. This in turn would have affected demand for raw materials such as crude oil.
Meanwhile, the latest US PCE price index data also supported crude oil prices. This favorite inflation gauge of the US Federal Reserve was lower than expected for November. This raised hopes of further interest rate cuts in 2025. A cut in interest rates would help boost demand for commodities such as crude oil.
Fears of a possible trade war between the US and the European Union (EU) surfaced after newly-elected US President Donald Trump warned of tariffs on the EU if it does not make large-scale purchases of oil and gas from the US. .
January natural gas futures were trading at ₹298.50 on MCX during the first hour of trading on Monday, against the previous close of ₹291.10, up 2.54 per cent.
At the National Commodities and Derivatives Exchange (NCDEX), January jeera contracts traded at ₹24,100 in the first hour of trading on Monday, against the previous close of ₹23,970, up 0.54 per cent.
January Guarseed futures traded at ₹5,283 on NCDEX during the first hour of trading on Monday, against the previous close of ₹5,272, up 0.21 per cent.
