Crude oil futures traded lower on Friday morning, despite the decline in inventories in the US.

At 9.53 am on Friday, August Brent oil futures, were at $85.59, down by 0.14 per cent, and August crude oil futures, on WTI (West Texas Intermediate), were at $81.19, down by 0.12 per cent.

July crude oil futures, were trading at ₹6,793 on Multi Commodity Exchange (MCX), during initial trading on Friday morning against the previous close of ₹6,799, down by 0.09 per cent, and August futures, were trading at ₹6,752, against the previous close of ₹6,760, down by 0.12 per cent.

Import decreases

Official data released by the US EIA (Energy Information Administration), showed that the commercial crude oil inventories in the US, declined by 2.5 million barrels, for the week ending June 14. At 457.1 million barrels, US crude oil inventories, were about 4 per cent, below the five-year average for this time of year.

Total motor gasoline inventories, decreased by 2.3 million barrels, from last week, and were about 1 per cent below the five-year average for this time of year.

Total products supplied in the US, over the last four-week period, averaged 20 million barrels a day, up by 0.2 per cent, from the same period last year. Over the past four weeks, motor gasoline product, supplies averaged 9.1 million barrels a day, down by 1 per cent, from the same period, last year.

US crude oil imports, averaged 7.1 million barrels a day last week, a decrease of 1.3 million barrels a day, from the previous week. Over the past four weeks, crude oil imports, averaged about 7.3 million barrels a day, 11.6 per cent, more than the same four-week period last year.

Warren Patterson, Head of Commodities Strategy, and Ewa Manthey, Commodities Strategist, said in ING Think’s Commodities Daily, that the draw in inventories, was driven by an increase in exports, which were up 1.23 million barrels a day, week-on-week, while imports fell by 1.25 million barrels a day, week-on-week.

Refined products, also saw inventory declines, with gasoline, and distillate stocks, falling by 2.28 million barrels, and 1.73 million barrels, respectively. Part of this draw, would have been due to lower refinery run rates. However, stronger demand also played a key role, they said.

Implied demand for total refined products, increased by 1.86 million barrels a day, week-on-week, with increases in gasoline, distillate, jet, and fuel oil demand. “The four-week average, implied gasoline demand, also continues to trend higher, as we move deeper into the US summer driving season, which will ease some concerns, over gasoline demand. Demand, though, is still tracking just below levels seen last year,” they said in their report.

Cottonseed oilcake up, guar gum down

June lead futures, were trading at ₹188 on MCX, against the previous close of ₹188.80, down by 0.42 per cent.

On the National Commodities, and Derivatives Exchange (NCDEX), July cottonseed oilcake contracts, were trading at ₹2,804 against the previous close of ₹2,792, up by 0.43 per cent.

July guar gum futures were trading at ₹10,616 on NCDEX, against the previous close of ₹10,702, down by 0.80 per cent.

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