Crude oil futures traded lower on Tuesday morning as reports related to crude oil supply and demand from various international agencies are scheduled for release during the week.
At 9.55 am on Tuesday, August Brent oil futures were at $81.49, down by 0.17 per cent, and July crude oil futures on WTI (West Texas Intermediate) were at $77.67, down by 0.09 per cent.
June crude oil futures were trading at ₹6487 on Multi Commodity Exchange (MCX) during initial trading on Tuesday morning against the previous close of ₹6486, up by 0.02 per cent, and July futures were trading at ₹6474 against the previous close of ₹6472, up by 0.03 per cent.
‘Market with sizeable deficit’
The market is waiting for supply and demand forecast from Organization of the Petroleum Exporting Countries and allies, known as OPEC+. The OPEC report is expected on Tuesday. International Energy Agency (IEA) is expected to release its demand and supply report on Wednesday.
Added to this, the American Petroleum Institute (API) will release the crude oil inventory data on Tuesday. The US Energy Information Administration (EIA) will release the official data on crude oil and product inventories on Wednesday.
Meanwhile, Warren Patterson, Head of Commodities Strategy, and Ewa Manthey, Commodities Strategist, said in ING Think’s Commodities Daily that oil prices moved higher on Monday as the market continued its post-OPEC+ meeting recovery. ICE Brent settled more than 2.5 per cent higher on Monday, which saw it close well above $81 a barrel.
“As we mentioned following the meeting, the action taken by the group leaves the market with a sizeable deficit in the third quarter of the year, supporting the view that prices trend higher. A recovery in refinery margins would leave us even more confident that prices move meaningfully higher from current levels. The weakness in refinery margins over the second quarter will have raised concerns over demand,” they said in the report.
Quoting the US Energy Secretary, Jennifer Granholm, a Reuters report said the US could hasten the rate of replenishing the strategic petroleum reserve as maintenance on the stockpile is completed by the end of the year. US wants to buy back oil at about $79 a barrel, it said.
Referring to the US Department of Energy’s (DoE) tender, ING Think’s Commodities Daily said on Monday that the US wants to purchase up to 6 million barrels of crude oil for its strategic petroleum reserve. The DoE announced two tenders, one for 1.5 million barrels for delivery in September, and another for 4.5 million barrels for delivery in October, November and December, it said.
Jeera, guarseed gain
US is a major consumer of crude oil in the world market. June natural gas futures were trading at ₹251.90 on MCX against the previous close of ₹242.50, up by 3.88 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June jeera contracts were trading at ₹28,835 against the previous close of ₹28,735, up by 0.35 per cent.
June guarseed futures were trading at ₹5348 on NCDEX against the previous close of ₹5337, up by 0.21 per cent.