Crude oil futures traded marginally higher on Wednesday after an industry body reported a decline in crude oil inventories in the US for the week ending November 22.

At 9.56 am on Wednesday, February Brent oil futures were at $72.35, up by 0.04 per cent, and January crude oil futures on WTI (West Texas Intermediate) were at $68.81, up by 0.06 per cent.

December crude oil futures were trading at ₹5,822 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of ₹5,776, up by 0.80 per cent, and January futures were trading at ₹5,815 against the previous close of ₹5,764, up by 0.88 per cent.

According to the industry body American Petroleum Institute (API), crude oil inventories in the US declined by 5.93 million barrels for the week ending November 22. Market was expecting marginal inventory increase of 0.25 million barrels during the period.

Official data on the crude oil inventories in the US is expected from the US EIA (Energy Information Administration) later on Wednesday.

The US President, Joe Biden, said on Tuesday that both Israel and Hezbollah have accepted a peace deal brokered by the US and France. The Prime Minister of Israel, Benjamin Netanyahu, said he was ready to implement the deal. However, Israel would respond forcefully to any violation of the deal by Hezbollah, he said.

A peace deal in West Asia is crucial for the oil market. Any escalation in tensions could have impacted the crude oil supply from the region.

Meanwhile, a Reuters report, which quoted two sources from OPEC+ (Organization of the Petroleum Exporting Countries, and allies), said that OPEC+ is likely to further delay the proposed increase in crude oil production output. OPEC+ is scheduled to meet on December 1 to decide the crude oil output policy for 2025.

OPEC+ had planned to gradually roll back oil-production cuts with small increases over many months in 2024 and 2025, it said. A slowdown in Chinese and global demand, and rising output outside the group have put a dampener on that plan, it added.

December zinc futures were trading at ₹286 on MCX during the initial hour of trading on Wednesday against the previous close of ₹284.15, up by 0.65 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), December turmeric (farmer polished) contracts were trading at ₹13,676 in the initial hour of trading on Wednesday against the previous close of ₹13,608, up by 0.50 per cent.

December dhaniya futures were trading at ₹7,802 on NCDEX in the initial hour of trading on Wednesday against the previous close of ₹7,850, down by 0.61 per cent.

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