Crude oil futures traded lower on Wednesday morning as the industry data showed increase in oil inventories in the US.
At 9.56 am on Wednesday, July Brent oil futures were at $82.34, down by 0.65 per cent, and July crude oil futures on WTI (West Texas Intermediate) were at $78.09, down by 0.72 per cent.
June crude oil futures were trading at ₹6,511 on Multi Commodity Exchange (MCX) during initial trading on Wednesday morning against the previous close of ₹6,568, down by 0.87 per cent, and July futures were trading at ₹6,512 against the previous close of ₹6565, down by 0.81 per cent.
Memorial Day boost?
According to the industry body American Petroleum Institute (API), crude oil inventories increased by 2.48 million barrels in the US for the week ending May 17 against a decline of 3.10 million barrels for the week ending May 10.
This increase in inventories created apprehensions in the market over the demand for fuel in the US market. Though the memorial day holiday season in the coming days is expected to boost the demand for fuel in the US market, market players feel that the current inflation and the high interest rates scenarios could limit the demand for fuel in that market.
Official crude oil inventory data by the US EIA (Energy Information Administration) is expected later in the day. This will give an idea about the demand for crude oil in the US market. US is a major consumer in the global oil market.
The market is also waiting for the release of minutes of the meeting of the US Federal Reserve later in the day. The meeting was held in April. The minutes of meetings are likely to provide more insights into the US Federal Reserve’s plans for interest rate cuts. High interest rates impacts the demand for commodities such as crude oil.
The recent cautious statements on inflation by some US Federal Reserves officials have also impacted the crude oil prices in the market.
Jeera tops ₹30,000, turmeric ₹19,000
June natural gas futures were trading at ₹232.70 on MCX against the previous close of ₹236.80, down by 1.73 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June jeera contracts were trading at ₹30,285 against the previous close of ₹29,510, up by 2.63 per cent.
June turmeric (farmer polished) futures were trading at ₹19,196 on NCDEX against the previous close of ₹18,952, up by 1.29 per cent.