Crude oil futures traded marginally lower on Wednesday morning as a report by an industry body indicated an increase in crude oil inventories in the US.

At 9.52 am on Wednesday, February Brent oil futures were at $79.12, down by 0.14 per cent; and February crude oil futures on WTI (West Texas Intermediate) were at $73.89, down by 0.07 per cent.

January crude oil futures were trading at ₹6,164 on the Multi Commodity Exchange (MCX) in the initial trading hour of Wednesday morning, against the previous close of ₹6,167, down by 0.05 per cent; and February futures were trading at ₹6,200, as against the previous close of ₹6,202, down by 0.03 per cent.

According to the industry body, the American Petroleum Institute (API), crude oil inventories in the US increased by 0.93 million barrels for the week ending December 15, against a decline of 2.34 million barrels in the previous week. The market was expecting crude oil inventories to decline by 2.33 million barrels during the period. Official data from the US Energy Information Administration (EIA) is expected later in the day.

Meanwhile, attacks on ships by Houthi militants in the Red Sea region led to apprehensions over supply disruptions.

Though the US on Tuesday formed a task force to protect ships from attacks in the region, the Houthis said the mission to target the ships would continue.

The recent attacks on ships has impacted international trade in various commodities, including crude oil. Some companies, including BP PLC and the oil shipping group Frontline Ltd, have decided to avoid the Red Sea route for transportation of crude oil. A longer route would lead to delays in the transportation of commodities and to cost escalation.

Market reports said the US purchased 2.1 million barrels of crude oil to replenish its strategic petroleum reserves. According to reports, the US purchased the oil at an average price of $74.23 a barrel for delivery in February.

January natural gas futures were trading at ₹202.60 on MCX in the initial trading hour of Wednesday morning, against the previous close of ₹199.10, up by 1.76 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), January jeera contracts were trading at ₹36,405 in the initial trading hour of Wednesday morning, against the previous close of ₹36,970, down by 1.53 per cent.

January guargum futures were trading at ₹10,421 on NCDEX in the initial trading hour of Wednesday morning, against the previous close of ₹10,488, down by 0.64 per cent.

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