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Crude oil futures traded lower on Friday morning despite a reduction in inventories in the US. However, the decline in China’s exports and imports during August kept the market under pressure.
At 9.54 am on Friday, November Brent oil futures were at $89.33, down by 0.66 per cent, and October crude oil futures on WTI (West Texas Intermediate) were at $86.19, down by 0.78 per cent.
September crude oil futures were trading at ₹7,170 on the Multi Commodity Exchange (MCX) during initial trading, against the previous close of ₹7,227, down by 0.79 per cent, and October futures were trading at ₹7,119, as against the previous close of ₹7,175, down by 0.78 per cent.
4% below 5-year average
Petroleum status data released by the US EIA (Energy Information Administration) for the week ending September 1 showed that US commercial crude oil inventories had decreased by 6.3 million barrels from the previous week. At 416.6 million barrels, US crude oil inventories were about 4 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 21.1 million barrels a day, up by 4.9 per cent from the same period last year.
US crude oil imports averaged 6.8 million barrels a day last week, an increase of 154,000 barrels a day from the previous week. Over the past four weeks, crude oil imports have averaged about 6.9 million barrels a day, 9.7 per cent more than the same four-week period last year.
As reported earlier, data from China’s General Administration of Customs showed an 8.8 per cent decline in exports, and a 7.3 per cent decline in imports during August. China is a major consumer of crude oil in the world market, and economic recovery in that country is essential to create demand in the global market.
Jeera turns hot
Meanwhile, Saudi Arabia and Russia’s decision to extend the oil production output cut till the end of 2023 is likely to lead to a tight supply situation in the world market.
September zinc futures were trading at ₹219.60 on MCX, against the previous close of ₹221.95, down by 1.06 per cent.
On NCDEX, jeera futures (cumin) gained over 2 per cent. Jeera October contracts were up by ₹1,690 or 2.69 per cent at ₹64,550 a quintal. Cottonseed oil cake futures were down 0.5 per cent with September contracts declining by ₹18 to ₹2,662 a quintal.
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