Crude oil futures rose on Monday morning as markets reacted positively to the news that the U.S. had avoided a potential government shutdown. By 9:57 AM, March Brent oil futures were up 0.51%, trading at $72.93, while February West Texas Intermediate (WTI) crude oil futures gained 0.58%, reaching $69.86.
On the Multi Commodity Exchange (MCX), January crude oil futures were priced at ₹5,961, an increase of 0.39% from the previous close of ₹5,938. February futures followed suit, trading at ₹5,954, up 0.51% from ₹5,924.
Fears of a government shutdown had heightened in the U.S. after President-elect Donald Trump criticized a funding bill and proposed a revised version that included an increase in the debt ceiling. However, lawmakers rejected the proposal.
Markets were reassured on Saturday night when the U.S. Congress passed a spending bill, averting a potential shutdown. U.S. President Joe Biden approved the bill, ensuring government funding through March.
A shutdown would have disrupted U.S. travel during the holiday season, which in turn could have reduced demand for commodities like crude oil.
In addition, the U.S. Personal Consumption Expenditures (PCE) price index, a key inflation measure for the Federal Reserve, came in lower than expected for November. This fueled optimism that the Fed may implement further interest rate cuts in 2025, which could boost demand for commodities like crude oil.
Concerns also emerged about a potential trade conflict between the U.S. and the European Union (EU). President-elect Trump warned that the U.S. could impose tariffs on the EU unless it significantly increased its purchases of oil and gas from the U.S.
Meanwhile, January natural gas futures on MCX were trading at ₹298.50, up 2.54% from the previous close of ₹291.10.
On the National Commodities and Derivatives Exchange (NCDEX), January jeera futures rose 0.54%, trading at ₹24,100, up from ₹23,970. January guarseed futures also saw a slight increase, up 0.21%, trading at ₹5,283 from ₹5,272.
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