Crude oil futures traded higher on Friday morning after official data showed decrease in inventories in the US.
At 9.54 am on Friday, December Brent oil futures were at $74.60, up by 0.20 per cent, and November crude oil futures on WTI (West Texas Intermediate) were at $70.90, up by 0.33 per cent.
October crude oil futures were trading at ₹5957 on Multi Commodity Exchange (MCX) during the initial hour of trading on Friday against the previous close of ₹5897, up by 1.02 per cent, and November futures were trading at ₹5935 against the previous close of ₹5877, up by 0.99 per cent.
According to the US EIA (Energy Information Administration), US commercial crude oil inventories decreased by 2.2 million barrels for the week ending October 11. At 420.5 million barrels, US crude oil inventories were about 5 per cent below the five-year average for this time of year.
Total motor gasoline inventories decreased by 2.2 million barrels from last week and were about 4 per cent below the five-year average for this time of year.
Total products supplied in the US over the last four-week period averaged 20.8 million barrels a day, up by 2.8 per cent from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 9 million barrels a day, up by 5.4 per cent from the same period last year.
Market players are also assessing the supply risks from West Asia following the tensions in the region. On Thursday, Israeli military confirmed the killing of the Hamas leader, Yahya Sinwar. This led to concerns over the escalation of tensions in the region.
Meanwhile, the latest data from China showed GDP growth remained above the market estimates.
According to the National Bureau of Statistics of China, the Chinese economy expanded 4.6 per cent year-on-year in third quarter of 2024. Market was expecting it to grow by 4.5 per cent. Chinese GDP had witnessed a growth of 4.7 per cent in the second quarter of 2024.
Another data by the National Bureau of Statistics of China showed a growth in industrial production in September. It grew by 5.4 per cent year-on-year in September. Market was expecting it to grow by 4.6 per cent.
Data from the National Bureau of Statistics of China showed that retail sales in that country jumped by 3.2 per cent year-on-year in September from 2.1 per cent increase in August. Market was expecting it to grow by 2.5 per cent.
China is a major consumer of crude oil in the global market. Improvement in economy will help boost the demand for commodities such as crude oil in this market.
October copper futures were trading at ₹817.85 on MCX during the initial hour of trading on Friday against the previous close of ₹814.10, up by 0.46 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), December cottonseed oilcake contracts were trading at ₹3027 in the initial hour of trading on Friday against the previous close of ₹3006, up by 0.70 per cent.
November dhaniya futures were trading at ₹7384 on NCDEX in the initial hour of trading on Friday against the previous close of ₹7426, down by 0.57 per cent.