Crude oil futures traded lower on Thursday morning as data showed economic growth is losing momentum in the US.
At 9.55 am on Thursday, September Brent oil futures were at $86.86, down by 0.55 per cent, and August crude oil futures on WTI (West Texas Intermediate) were at $83.33, down by 0.66 per cent.
July crude oil prices were trading at ₹6960 on the Multi Commodity Exchange (MCX) during initial trading on Thursday morning, against the previous close of ₹6951, up by 0.13 per cent, and August futures were trading at ₹6912, against the previous close of ₹6902, up by 0.14 per cent.
The ISM Services PMI declined to 48.8 in the US in June against 53.8 in May. Market was expecting it to be at 52.5 in June.
Huge drop in inventories
Added to this, there was increase in the number of applications for unemployment benefits in the US. According to the US Labour Department data, initial claims for unemployment benefits rose 4,000 to a seasonally adjusted 238,000 for the week ended June 29. Market reports said the number of people on jobless rolls increased to a two-and-a-half year high in the US by the end of June.
Meanwhile, data released by the US EIA (Energy Information Administration) showed a huge decline in crude oil inventories for the week ending June 28.
According to the EIA, US commercial crude oil inventories decreased by 12.2 million barrels from the previous week. At 448.5 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 2.2 million barrels from last week and were 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 20.5 million barrels a day, down by 1 per cent from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 9.2 million barrels a day, down by 1.7 per cent from the same period last year.
Turmeric, jeera lose lustre
US crude oil imports averaged 6.5 million barrels per day last week, a decrease of 65,000 barrels a day from the previous week. Over the past four weeks, crude oil imports averaged about 7.1 million barrels a day, 9 per cent more than the same four-week period last year.
July mentha oil futures were trading at ₹957 on MCX against the previous close of ₹960.70, down by 0.39 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), August turmeric (farmer polished) contracts were trading at ₹16,100 against the previous close of ₹16,168, down by 0.42 per cent.
July jeera futures were trading at ₹28,755 on NCDEX against the previous close of ₹28,930, down by 0.60 per cent.