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Crude oil futures traded higher on Wednesday morning due to near-term supply tightness.
At 9.57 am on Wednesday, January Brent oil futures were at $72.04, up by 0.21 per cent, and December crude oil futures on WTI (West Texas Intermediate) were at $68.25, up by 0.19 per cent.
November crude oil futures were trading at ₹5763 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of ₹5776, down by 0.23 per cent, and December futures were trading at ₹5771 against the previous close of ₹5783, down by 0.21 per cent.
Quoting an ANZ analysts note, a Reuters report said that crude oil prices edged higher as tightness in the physical market offset bearish sentiment on demand. Buyers in the physical market have been particularly active, with any available cargoes being snapped up quickly, it said.
Meanwhile, the monthly oil market report by OPEC (Organization of the Petroleum Exporting Countries) forecasted a decline in demand for the commodity in the coming months.
The global oil demand growth forecast for 2024 is revised down slightly by 107,000 barrels a day from the previous month’s assessment to 1.8 million barrels a day, year-on-year.
The report said this minor adjustment is mainly due to updated data for the first, second and third quarters of 2024.
In 2025, global oil demand growth is also revised down slightly by 103,000 barrels a day from the previous month’s assessment to 1.5 million barrels a day, year-on-year.
According to market reports, US President-elect Donald Trump’s likely pick for the Secretary of State Marco Rubio’s hardline stance on China could weaken the demand for the commodity. Market reports said a tougher approach towards China could weaken the demand for crude oil. Weak economic growth in China has already impacted the demand for the commodity in the global market.
November natural gas futures were trading at ₹245.10 on MCX during the initial hour of trading on Wednesday against the previous close of ₹246.50, down by 0.57 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), November dhaniya contracts were trading at ₹6800 in the initial hour of trading on Wednesday against the previous close of ₹6892, down by 1.33 per cent.
December jeera futures were trading at ₹24775 on NCDEX in the initial hour of trading on Wednesday against the previous close of ₹24935, down by 0.64 per cent.
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