Crude oil futures traded lower on Friday morning as the oil market report by the IEA (International Energy Agency) indicated a decline in global oil demand during 2024.

At 9.57 am on Friday, April Brent oil futures were at $82.75, down by 0.13 per cent, and March crude oil futures on WTI (West Texas Intermediate) were at $78.06, up by 0.04 per cent.

February crude oil futures were trading at ₹6,480 on the Multi Commodity Exchange (MCX) during initial trading, against the previous close of ₹6,483, down by 0.05 per cent, and March futures were trading at ₹6,448, as against the previous close of ₹6,458, down by 0.15 per cent.

Ease in annual gains

IEA’s February oil market report said global demand growth is losing momentum, with annual gains easing from 2.8 million barrels-a-day in the third quarter of 2023 to 1.8 million barrels-a-day in the fourth quarter of 2023. A sharp drop in China underpinned an 830,000 barrels-a-day decline in global oil demand to 102.1 million barrels a day in the last quarter of 2023.

“The pace of expansion is set to decelerate further to 1.2 million barrels-a-day in 2024, compared with 2.3 million barrels-a-day last year. China, India and Brazil will continue to dominate gains,” the report said.

World oil supply posted a sharp decline of 1.4 million barrels-a-day month-on-month in January after an Arctic blast shut production in North America and as OPEC (Organization of the Petroleum Exporting Countries) and its allies, known as the OPEC+, deepened output cuts.

The report said record output from the US, Brazil, Guyana and Canada will help boost non-OPEC+ supply by 1.6 million barrels annually.

Mentha oil tops ₹900, kapas gains

Latest GDP (gross domestic product) data showed Japan and the UK, two of the major global economies, entered a technical recession in the fourth quarter of 2023. This development created apprehensions over the demand for crude oil in the world market.

February mentha oil futures were trading at ₹901.90 on MCX, against the previous close of ₹898.70, up by 0.36 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), March cottonseed oilcake contracts were trading at ₹2,540, against the previous close of ₹2,534, up by 0.24 per cent.

April kapas futures were trading at ₹1,544 on NCDEX, against the previous close of ₹1,546, down by 0.13 per cent.

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