Crude oil futures traded lower on Thursday morning as the official data showed an increase in inventories in the US.
At 9.52 am on Thursday, September Brent oil futures were at $84.28, down by 0.22 per cent, and August crude oil futures on WTI (West Texas Intermediate) were at $80.68, down by 0.27 per cent.
July crude oil futures were trading at ₹6,743 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹6,805, down by 0.91 per cent, and August futures were trading at ₹6,708 against the previous close of ₹6,761, down by 0.78 per cent.
Data by the US EIA (Energy Information Administration) showed that crude oil inventories increased by 3.6 million barrels for the week ending June 21. The market was expecting it to decline by 3 million barrels during the period.
Won’t help ease gasoline demand
Total motor gasoline inventories also increased by 2.7 million barrels in the US for the week ending June 21.
Warren Patterson, Head of Commodities Strategy, and Ewa Manthey, Commodities Strategist, said in ING Think’s Commodities Daily that gasoline stocks still increased in the US despite lower refinery activity. Stating that implied gasoline demand was weaker over the period, they said: “This will not help ease gasoline demand concerns as we move deeper into the summer.”
However, some geopolitical developments supported crude oil prices. News report said that Israeli forces attacked some areas across Gaza on Wednesday. Quoting the residents, the reports said there was a fierce fighting overnight in Rafah in the south of the Palestinian enclave.
Reports noted that the recent drone attacks by Ukraine on oil infrastructure in Russia have led to supply disruption fears in the market. Russia is a major supplier of oil to the global market.
Dhaniya, turmeric slip
July zinc futures were trading at ₹266.05 on MCX against the previous close of ₹265.25, up by 0.30 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), July dhaniya contracts were trading at ₹7332 against the previous close of ₹7378, down by 0.62 per cent.
August turmeric (farmer polished) futures were trading at ₹17,390 on NCDEX against the previous close of ₹17512, down by 0.70 per cent.