Crude oil futures traded marginally lower on Wednesday morning. This despite industry data showing a decline in oil inventories in the US. Meanwhile, October PMI data showed growth in the manufacturing and service sectors in the US.
At 9.53 am on Wednesday, December Brent oil futures were at $88.02, down by 0.06 per cent; and December crude oil futures on WTI (West Texas Intermediate) were at $83.67, down by 0.08 per cent.
November crude oil futures were trading at ₹6,966 on the Multi Commodity Exchange (MCX) in the initial trading hour of Wednesday morning, against the previous close of ₹6,974, down by 0.11 per cent; and December futures were trading at ₹6,940, as against the previous close of ₹6,938, up by 0.03 per cent.
According to the American Petroleum Institute (API) data, crude oil inventories in the US declined by 2.66 million barrels for the week ending October 30. However, the market was expecting an inventory build of more than 1.5 million barrels during the period. The latest data showed supply tightness in the US market. The US is a major consumer of crude oil in the world market.
US EIA (Energy Information Administration) is expected to release official data on crude oil inventories later in the day.
Added to this, PMI (purchasing managers index) for the US showed an improvement in manufacturing and services activities during October. However, the fear of recession in some key European economies impacted the market.
On Tuesday, crude oil prices declined by around 2 per cent as data from the euro zone indicated weakening of economic conditions in that region. Such a development could impact the demand for commodities such as crude oil.
November natural gas futures were trading at ₹276.90 on MCX in the initial trading hour of Wednesday morning, against the previous close of ₹274.80, up by 0.76 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), November guargum contracts were trading at ₹12,340 in the initial trading hour of Wednesday morning, against the previous close of ₹12,139, up by 1.66 per cent.
November jeera futures were trading at ₹50,020 on NCDEX in the initial trading hour of Wednesday morning, against the previous close of ₹50,995, down by 1.91 per cent.