Crude oil futures traded lower on Thursday morning as US official data showed a higher-than-expected crude oil inventory build in the US.
At 9.52 am on Thursday, January Brent oil futures were at $80.43, down by 0.92 per cent, and December crude oil futures on WTI (West Texas Intermediate) were at $76.08, down by 0.76 per cent.
December crude oil futures were trading at ₹6,348 on the Multi Commodity Exchange (MCX) during initial trading, against the previous close of ₹6,450, down by 1.58 per cent, and November futures were trading at ₹6,320, against the previous close of ₹6,424, down by 1.62 per cent.
Indicators of demand dip?
According to the weekly petroleum status report by the US EIA (Energy Information Administration), US commercial crude oil inventories increased by 3.6 million barrels for the week ending November 10, as against market expectations for an increase of 1.8 million barrels.
The total products supplied in the US over the last four-week period averaged 20.4 million barrels a day, down by 2 per cent from the same period last year.
These factors indicated a decline in demand f in the US, a major consumer of crude oil in the world market.
Meanwhile, China’s oil refinery throughput declined to an average of 15.05 million barrels a day in October, against 15.48 million barrels a day in September. Market reports attributed the decline to weakening industrial fuel demand in China and narrowing refining margins.
However, recent data related to growth in industrial production and retail sales in China showed an improvement in economic activities in this major consumer of crude oil.
Guar gum gains, cottonseed oil cake slips
November natural gas futures were trading at ₹263.30 on MCX, against the previous close of ₹270.10, down by 2.52 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), December guar gum contracts were trading at ₹11,810, against the previous close of ₹11,707, up by 0.88 per cent.
December cottonseed oilcake futures were trading at ₹2,943 on NCDEX, against the previous close of ₹2,952, down by 0.30 per cent.