August 9, 2024 – Crude oil futures showed gains on Friday morning, buoyed by improving economic indicators from China and positive job data from the United States.
As of 9:56 AM, October Brent crude oil futures were trading at $79.26, up by 0.13%, while September West Texas Intermediate (WTI) crude futures were at $76.31, up by 0.16%. In the Multi Commodity Exchange (MCX), August crude oil futures were at ₹36,412, down by 0.16% from the previous close, and September futures were at ₹16,332, down by 0.03%.
China’s Economic Data
The rise in crude oil prices was supported by recent data from China, a major global consumer of crude oil. The National Bureau of Statistics of China reported that July’s Consumer Price Index (CPI) increased by 0.5%, up from 0.2% in June and surpassing market expectations of 0.3%. This uptick in inflation suggests improved domestic demand.
However, China’s Producer Price Index (PPI) showed a decline of 0.8% in July, matching the decline seen in June and slightly better than the forecasted 0.9% drop. Despite the decrease, this was the softest decline since January, reflecting the impact of various government support measures.
U.S. Economic Data
In the U.S., positive economic news also contributed to the rise in crude oil prices. The Department of Labor reported a decrease in the number of people claiming unemployment benefits to 230,000 for the week ending August 3, down by 17,000 from the previous week and better than the anticipated 240,000. This decline in claims alleviates concerns about a potential recession and bolsters optimism about the economic outlook, further supporting oil prices.
Other Commodities
In addition to crude oil, other commodities saw movement. August zinc futures were trading at ₹253.85 on MCX, up by 0.97% from the previous close. August jeera futures on the National Commodities and Derivatives Exchange (NCDEX) were at ₹27,080, up by 1.61%. August dhaniya futures on NCDEX were at ₹36,990, reflecting an increase of 1.01% from the prior close.
Overall, the positive economic indicators from China and the U.S. have helped bolster crude oil futures, reflecting increased confidence in the global economic recovery.
