Brent crude oil futures edged down, while WTI futures traded lower on Wednesday morning, despite an industry report showing a decline in crude oil inventories in the US for the week ending December 13.
At 9.58 am on Wednesday, February Brent oil futures were at $73.18, down by 0.01 per cent, and January crude oil futures on WTI (West Texas Intermediate) were at $69.66, down by 0.60 per cent.
December crude oil futures were trading at ₹5955 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of ₹5930, up by 0.42 per cent, and January futures were trading at ₹5938 against the previous close of ₹5924, up by 0.24 per cent.
According to the industry body American Petroleum Institute (API), crude oil inventories in the US declined by 4.7 million barrels for the week ending December 13. However, gasoline inventories increased by 2.9 million barrels during the period.
API’s data indicated that crude oil supplies are tightening in the US. It also indicated that demand is declining for gasoline. Market players attribute this decline in demand for gasoline to the decreased travel during the winter season.
Official data from the US EIA (Energy Information Administration) is expected later on Wednesday.
Market is also waiting for the outcome of the meeting of the US Federal Reserve later on Wednesday. A 25 basis points cut in interest rate is expected in Wednesday’s announcements. Market players are also waiting for the interest rate cut projections for 2025.
On Tuesday, the European Union adopted a 15th package of sanctions against Russia following its war with Ukraine. This sanction added additional 33 vessels for transporting crude or petroleum products from Russia. Britain also sanctioned 20 ships for transporting Russian oil. Russia is one of the major producers of crude oil in the world market.
December natural gas futures were trading at ₹284.20 on MCX during the initial hour of trading on Wednesday against the previous close of ₹270, up by 5.26 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), December guargum contracts were trading at ₹9705 in the initial hour of trading on Wednesday against the previous close of ₹9779, down by 0.76 per cent.
December turmeric (farmer polished) futures were trading at ₹13502 on NCDEX in the initial hour of trading on Wednesday against the previous close of ₹13636, down by 0.98 per cent.
