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The probable decline in the demand for crude oil following the concerns over recession in some major economies resulted in crude oil futures trading lower on Friday morning
At 10.05 am on Friday, September Brent oil futures were at $108.88, down by 3.17 per cent; and August crude oil futures on WTI were at $105.45, down by 0.29 per cent.
July crude oil futures were trading at ₹8,345 on Multi Commodity Exchange (MCX) in the initial hour of Friday morning against the previous close of ₹8,387, down by 0.50 per cent; and August futures were trading at ₹8,155 as against the previous close of ₹8,207, down by 0.63 per cent.
US Petroleum products supplies down
Market analysts feel that concerns over the recession in major economies could lead to the decline in the demand for crude oil. The weekly petroleum status report for the week ending June 24 also showed a decrease in the petroleum products supplied in the US.
Total products supplied over the last four-week period was down by 0.1 per cent from the same period last year. Of this, motor gasoline product supplied was down by two per cent and distillate fuel product supplied was down by 7.4 per cent from the same period last year.
US is one of the major global economies. Market analysts were of the opinion that the high prices for the products could have led to the decline in the consumption.
Meanwhile, the meeting of OPEC (Organization of the Petroleum Exporting Countries) and its allies, commonly known as OPEC+, decided to stick to the plan of increasing the monthly overall production by 0.648 million barrels a day for August.
Market reports noted that the proposed strike by the Norwegian offshore oil workers from July 5, could affect around 4 per cent of oil production in Norway.
July natural gas futures were trading at ₹449.60 on MCX in the initial hour of Friday morning against the previous close of ₹447.70, up by 0.42 per cent.
Guar complex trades lower
Guar complex traded lower on National Commodities and Derivatives Exchange (NCDEX) on Friday morning.
On NCDEX, July Guar Gum futures were trading at ₹9,389 in the initial hour of Friday morning against the previous close of ₹9611, down by 2.31 per cent.
July Guar Seed contracts were trading at ₹5,042 on NCDEX in the initial hour of Friday morning against the previous close of ₹5,134, down by 1.79 per cent.
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