Crude oil futures traded lower on Monday morning despite expectations of increased demand for heating oil in the US and Europe.

At 9.57 am on Monday, March Brent oil futures were at $76.33, down by 0.24 per cent, and February crude oil futures on WTI (West Texas Intermediate) were at $73.81, down by 0.20 per cent.

January crude oil futures were trading at ₹6341 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday against the previous close of ₹6373, down by 0.50 per cent, and February futures were trading at ₹6306 against the previous close of ₹6334, down by 0.44 per cent.

Cold weather in the US and Europe is likely to boost the demand for heating oil. This in turn is likely to provide support to crude oil in the market. Market reports noted that snow, ice and sub-zero temperatures are expected across the US as winter storm sweeps through the country.

The storm, which is driven by a polar vortex, is expected to lead to decline in temperature across Europe also, the reports said.

Meanwhile, China has announced that it will increase funding from ultra-long dated treasury bonds to boost business investment. In addition to this, Chinese central bank said that it will reduce banks’ reserve requirement ratio and interest rates at a proper time.

China is a major consumer of crude oil in the global market. A weak Chinese economy had made an impact on the global crude oil demand in 2024. Market players feel that China’s moves to boost the economy would help increase demand for crude oil.

A Reuters report said that Goldman Sachs expects Iran’s production and exports to fall by the second quarter of 2025. The expected policy changes and tighter sanctions from the administration of Donald Trump, who is set to assume charge later this month, could lead to a fall in Iran’s production and exports of crude oil.

The report said that Iran’s output could drop by 300,000 barrels a day to 3.25 million barrels per day by the second quarter of 2025.

January natural gas futures were trading at ₹303.40 on MCX during the initial hour of trading on Monday against the previous close of ₹289.80, up by 4.69 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), January cottonseed oilcake contracts were trading at ₹2778 in the initial hour of trading on Monday against the previous close of ₹2735, up by 1.57 per cent.

April turmeric (farmer polished) futures were trading at ₹15588 on NCDEX in the initial hour of trading on Monday against the previous close of ₹15422, up by 1.08 per cent.