Crude oil futures experienced gains on Friday morning, following encouraging inflation figures from China that suggested a slight rebound in the country’s economy.
As of 9:56 AM ET, October Brent crude oil futures were trading at $79.26, marking a 0.13% increase. Similarly, September West Texas Intermediate (WTI) crude oil futures were up 0.16% at $76.31.
On the Multi Commodity Exchange (MCX), August crude oil futures were priced at ₹6,412, down by 0.16% from the previous close of ₹6,422. September futures were slightly lower at ₹6,332, compared to ₹6,334 previously, reflecting a 0.03% decrease.
China’s National Bureau of Statistics released data showing a 0.5% increase in the consumer price index (CPI) for July, up from 0.2% in June. This figure exceeded market expectations of a 0.3% rise and indicates stronger domestic demand in China.
However, China’s producer price index (PPI) fell by 0.8% in July, matching the decline seen in June and slightly better than the anticipated 0.9% drop. This modest decline is the smallest since January, attributed to recent government support measures.
As a major global consumer of crude oil, China’s economic improvements can boost global oil demand, positively impacting oil futures.
In the United States, the Department of Labor reported a decrease of 17,000 in initial unemployment claims for the week ending August 3, bringing the total to 230,000. This figure was below the expected 240,000 and down from 250,000 the previous week. The positive jobs data helped alleviate recession concerns, contributing to the rise in crude oil prices.
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