Crude oil futures traded higher on Thursday morning as an industry report showed a decrease in the US inventories for the week ending October 11.
At 9:54 a.m. on Thursday, December Brent oil futures were at $74.37, up by 0.20 per cent, and November crude oil futures on WTI (West Texas Intermediate) were at $70.59, up by 0.28 per cent.
October crude oil futures were trading at ₹5933 on Multi Commodity Exchange (MCX) during the initial hour of trading on Thursday, up by 0.17 per cent from the previous close of ₹5923, and November futures were trading at ₹5910, up by 0.14 per cent from the previous close of ₹5902.
According to the American Petroleum Institute (API), crude oil inventories in the US declined by 1.5 million barrels for the week ending October 11, compared to an increase of around 10.9 million barrels in the previous week. The market expected an increase in the crude oil inventories for the week ending October 11. The US is a major consumer of crude oil in the world market. A decline in inventories indicates the demand for the commodity in that market.
However, the market is now expecting official data from the US EIA (Energy Information Administration). The EIA is expected to release the latest inventory numbers later on Thursday. This data will provide a clear picture of the crude oil inventory level in the US.
Crude oil prices also got support from the ongoing tensions in West Asia. Reports said that Israel intensified air strikes on Lebanon on Wednesday. Market fears that the escalation in tensions in West Asia could impact crude oil supplies from the region.
Market players are also waiting for the European Central Bank (ECB) ‘s (ECB) decision on interest rate revision. The market expects the ECB to reduce interest rates on Thursday. Such a move could help boost economic activity in the Eurozone, boosting the demand for commodities such as crude oil.
October zinc futures were trading at ₹279.65 on MCX during Thursday’s initial hour of trading, down 0.82 percent from the previous close of ₹281.95.
On the National Commodities and Derivatives Exchange (NCDEX), November castorseed contracts were trading at ₹6926 in the initial hour of trading on Thursday against the previous close of ₹6884, up by 0.61 per cent.
November jeera futures were trading at ₹24,800 on NCDEX in the initial hour of trading on Thursday, down by 0.90 per cent from the previous close of ₹25,025.