Crude oil futures traded higher on Thursday morning after the Chinese President, Xi Jinping, expressed hopes for better economic progress in 2025.
At 9.52 am on Thursday, March Brent oil futures were at $74.86, up by 0.29 per cent, and February crude oil futures on WTI (West Texas Intermediate) were at $71.95, up by 0.32 per cent.
January crude oil futures were trading at ₹6183 on the Multi Commodity Exchange (MCX) during the initial hour of trading on Thursday, against the previous close of ₹6171, up by 0.19 per cent, and February futures were trading at ₹6181, against the previous close of ₹6164, up by 0.28 per cent.
Xi Jinping’s televised New Year address acknowledged that the current economic operation faces new challenges, including challenges of uncertainties in the external environment and pressure of transformation from old growth drivers to new ones.
However, a Reuters report, which quoted the Chinese president, said: “But we can prevail with our hard work. As always, we grow in the wind and rain, and we get stronger through hard times. We must be confident.”
Participating in a New Year event, he said China’s GDP is estimated to have grown by 5 per cent in 2024.
His statements assume significance as China’s economic recovery would help boost the demand for commodities such as crude oil in the global market. China is one of the major consumers of crude oil.
Meanwhile, the Caixin China General Manufacturing PMI stood at 50.5 in December 2024 against 51.5 in November. However, the market was expecting it to be around 51.7 for December.
January natural gas futures were trading at ₹310.20 on MCX during the initial hour of trading on Thursday against the previous close of ₹315.20, down by 1.59 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), January cottonseed oilcake contracts were trading at ₹2,714 in the initial hour of trading on Thursday, against the previous close of ₹2,708, up by 0.22 per cent.
April turmeric (farmer polished) futures were trading at ₹15,168 on NCDEX in the initial hour of trading on Thursday, against the previous close of ₹15,364, down by 1.28 per cent.
