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Crude oil futures traded lower on Wednesday morning as an industry report showed an increase in inventories in the US.
At 9.54 am on Wednesday, November Brent oil futures were at $73.41, down by 0.39 per cent, and November crude oil futures on WTI (West Texas Intermediate) were at $69.73, down by 0.33 per cent.
September crude oil futures were trading at ₹5946 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of ₹5989, down by 0.72 per cent, and October futures were trading at ₹5863 against the previous close of ₹5902, down by 0.66 per cent.
According to the industry body American Petroleum Institute (API), crude oil inventories in the US increased by 1.96 million barrels for the week ending September 13. Market was expecting it to decline by around 1 million barrels.
- Also read: What next for crude oil?
US EIA (Energy Information Administration) is expected to release the official data on crude oil inventories later in the day. This official data will give a picture about the crude oil inventory level in the US.
Market remained cautious ahead of the interest rate decision by the US Federal Reserve on Wednesday. Market is expecting the US Fed to reduce interest rate by 25 to 50 basis points. Any reduction in interest rate will make crude oil cheaper.
Meanwhile, market reports said that US is seeking to purchase crude oil for its strategic petroleum reserve (SPR). Quoting a source, a Reuters report said that the US Government will seek up to 6 million barrels of oil for the SPR. If completed, this purchase will match its largest replenishment of the reserve after a historic sale in 2022, the report said.
September aluminium futures were trading at ₹227.70 on MCX during the initial hour of trading on Wednesday against the previous close of ₹229.95, down by 0.98 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), September castorseed contracts were trading at ₹6520 in the initial hour of trading on Wednesday against the previous close of ₹6428, up by 1.43 per cent.
October jeera futures were trading at ₹26145 on NCDEX in the initial hour of trading on Wednesday against the previous close of ₹25915, up by 0.89 per cent.
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