Crude oil futures were trading marginally lower on Wednesday morning as industry data hinted at a likely increase in inventories in the US.
At 10.02 am on Wednesday, September Brent oil futures were at $106.93, up by 0.62 per cent, and September crude oil futures on WTI were at $100.09, down by 0.65 per cent.
August crude oil futures were trading at ₹8,018 on Multi Commodity Exchange (MCX) in the initial hour of Wednesday morning against the previous close of ₹8,056, down by 0.47 per cent; and September futures were trading at ₹7,805 as against the previous close of ₹7,852, down by 0.60 per cent.
EIA report today holds the key
A Reuters report, which quoted market sources, said crude oil stock in the US increased by about 1.9 million barrels for the week ended July 15. The sources cited figures of the American Petroleum Institute.
However, the weekly petroleum status report by the US Energy Information Administration (EIA) is expected later in the day.
Another factor that affected the market were the fears of a recession in some global economies as many countries have initiated measures to control surging inflation. Market participants felt that such a measure would impact the demand for fuels. This has put pressure on the crude oil market also.
In spite of all this, Brent futures gained more than 8 per cent in the previous three sessions. A weaker dollar and tight crude oil supply in global markets were seen as the reasons for this trend.
Copper, guarseed gain
July copper futures were trading at ₹635.35 on MCX in the initial hour of Wednesday morning, against the previous close of ₹624.15, up by 1.79 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), July guarseed futures were trading at ₹5,082 in the initial hour of Wednesday morning against the previous close of ₹5,009, up by 1.46 per cent.
August jeera contracts were trading at ₹23,620 on NCDEX in the initial hour of Wednesday morning against the previous close of ₹23,695, down by 0.32 per cent.