Crude oil futures traded lower on Monday morning over slowing demand in the US and China, the two major consumers in the world market.
At 9.52 am on Monday, January Brent oil futures were at $80.64, down by 0.97 per cent; and December crude oil futures on WTI (West Texas Intermediate) at $76.40, down by 1 per cent.
November crude oil futures were trading at ₹6,379 on the Multi Commodity Exchange (MCX) in the initial hour of trading, against the previous close of ₹6,455, down by 1.18 per cent; and December futures were trading at ₹6,397, as against the previous close of ₹6,473, down by 1.17 per cent.
According to the US EIA (Energy Information Administration), oil production in the US will be less than the expected target. It also said oil demand in the country would come down.
Added to this, recent economic data from China has created apprehensions in the market over demand for commodities such as crude oil in the Chinese market. Deflationary figures from China, and a decline in exports and trade surplus have impacted demand. Apart from this, refiners in China sought lower supplies from Saudi Arabia in December.
Considering the current situation, the market is awaiting cues from the Organisation of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, later this month.
November natural gas futures were trading at ₹258.40 on MCX in the initial trading hour of Monday morning. against the previous close of ₹253.80, up by 1.81 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), December dhaniya contracts were trading at ₹7,998 in the initial hour of trading, against the previous close of ₹7,940, up by 0.73 per cent.
November jeera futures were trading at ₹43,435 on NCDEX in the initial trading hour of Monday morning, against the previous close of ₹43,915, down by 1.09 per cent.