Crude oil futures traded higher on Monday morning after China reported better-than-expected growth in industrial production and retail sales for the first two months of 2025.
At 9.52 am on Monday, May Brent oil futures were at $71.10, up by 0.74 per cent, and May crude oil futures on WTI (West Texas Intermediate) were at $67.40, up by 0.73 per cent. March crude oil futures were trading at ₹5879 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday against the previous close of ₹5840, up by 0.67 per cent, and April futures were trading at ₹5882 against the previous close of ₹5841, up by 0.70 per cent.
According to China’s National Bureau of Statistics (NBS), China’s industrial production witnessed a 5.9 per cent growth in January-February 2025. Market was expecting a growth of 5.3 per cent during the period.
Retail sales number for January and February also helped boost the sentiments of the markets on Monday morning. NBS data showed China’s retail sales increased by 4 per cent during January-February 2025. Market was expecting a growth of 3.8 per cent during the period.
Added to this, China announced initiatives on Sunday to revive consumption. The initiatives included plans to stabilise the stock and real estate markets, increase wages, and to boost the birth rate in China.
China is one of the major consumers of crude oil in the global market. Market players feel that these numbers and the special initiatives would help boost consumption of commodities such as crude oil in that market.
Meanwhile, military operations against Houthis by the US also supported the crude oil prices on Monday morning. The US announced that airstrikes would continue until the Houthis cease their attacks on US ships.
Backed by Iran, the Houthis have been creating problems in the Red Sea region for the past several months. Red Sea is a crucial corridor for global economy. This corridor contributes to nearly 15 per cent of the global shipping traffic. Market players feel that the US strikes on the Houthis could impact the crude oil movement in that corridor.
March manthaoil futures were trading at ₹951 on MCX during the initial hour of trading on Monday against the previous close of ₹957.70, down by 0.70 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), April turmeric (farmer polished) contracts were trading at ₹11890 in the initial hour of trading on Monday against the previous close of ₹11754, up by 1.16 per cent.
March castorssed futures were trading at ₹6082 on NCDEX in the initial hour of trading on Monday against the previous close of ₹6121, down by 0.64 per cent.
