Crude oil traded lower on Tuesday morning following the US government’s decision to release crude oil from the strategic petroleum reserve (SPR).
At 9.51 am on Tuesday, April Brent oil futures were down by 0.73 per cent at $85.98 and March crude oil futures on WTI were at $79.23, down by 1.14 per cent.
February crude oil futures were trading at ₹6,550 on Multi Commodity Exchange (MCX) in the initial trading hour of Tuesday morning against the previous close of ₹6,646, down by 1.44 per cent, and March futures were trading at ₹6,590 against the previous close of ₹6,682, down by 1.38 per cent.
Lowest since 1983?
On Monday, the US government said that around 26 million barrels of crude oil will be sold from the SPRs in the US. The bids for sale will be opened on February 28. Crude oil from the SPR is likely be delivered from April 1 to June 30.
Market reports estimated that this sale would bring down the crude oil stock to the lowest level since 1983.
The market is now waiting for the release of the US consumer price index (CPI) data for January. The data, which is scheduled to be released on Tuesday, is likely to set the tone for the monetary policy of the US Fed Reserve. Any aggressive increase in the interest rate could impact the price of crude oil in the market.
Jeera, castorseed drop
February natural gas futures were trading at ₹202.30 on MCX in the initial trading hour of Tuesday morning against the previous close of ₹201.20, up by 0.50 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), February castorseed contracts were trading at ₹6,700 in the initial trading hour of Tuesday morning against the previous close of ₹6,834, down by 1.96 per cent.
March jeera futures were trading at ₹31,215 on NCDEX in the initial trading hour of Tuesday morning against the previous close of ₹31,545, down by 1.05 per cent.