COMMODITY MARKET:OIL PRICES FALL AS SURGING VIRUS CASES FORCE MORE LOCKDOWNS

Commodity prices traded weak on Monday with bullion and energy commodities trading lower. Base metals witnessed mix trading with Zinc and Lead prices rising on demand growth optimism.

In commodity’s basket, CPO Dec future future stood as top gainer, gained by 0.49% at Rs.898.70 Per 10 kg. Natural Gas, Silver, Cotton, Copper, Aluminium, MCXBULLDEX, GOLDPETAL, Crude oil, GOLDM, GOLDGUINEA, Nickel, Mentha oil, MCXMELTDEX, Gold were trading negatively.

Bullion prices continued its downside in after opened with positive note. Gold prices declined Rs 298 on today and touched low of Rs 49172 per 10 gram in the national capital in line with weak global prices of the precious metal. Silver also trading down by 1.35% to 62949 per kg.

Crude oil futures traded lower as participants reduced their positions on low demand. On the Multi Commodity Exchange, crude oil for December delivery dipped by 0.35 per cent, to Rs 3395 per barrel. Crude oil futures slide as participants increased their short position as seen by the open interest. Crude oil prices slipped on a continued surge in COVID-19 cases forcing a series of fresh lockdowns and increasing tension between the US and China. Natural Gas continued its bearish trend. Natural gas futures plunged to Rs 179.30 per mmBtu after hitting a December series low of Rs 177.20 during the intraday trading as participants piled up short positions as seen by the open interest. The price of natural gas had fallen 11.44 percent last week on the MCX.

Base metals prices traded mixed. Copper, Aluminium and Nickel futures were trading lower due to weak demand whereas Lead and Zinc were trading positively.