Crude oil futures traded higher on Thursday morning following the US Federal Reserve’s indications to cut interest rates in 2024. Added to this, official data from the US also showed a decline in the crude oil inventories in that country.
At 9.52 am on Thursday, February Brent oil futures were at $74.50, up by 0.32 per cent, and January crude oil futures on WTI (West Texas Intermediate) were at $69.61, up by 0.20 per cent.
December crude oil futures were trading at ₹5,798 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹5,781, up by 0.29 per cent, and January futures were trading at ₹5853 as against the previous close of ₹5824, up by 0.50 per cent.
Boosting sentiments
The Federal Open Market Committee (FOMC) meeting on Wednesday kept the interest rates unchanged at 5.50 per cent. However, the US Federal Reserve policymakers indicated they would expect to make three quarter-point interest rate cuts in 2024.
This boosted the sentiments of the crude oil market as a decrease in interest rates will help boost the economic growth thus increasing the consumption of commodities such as crude oil.
Meanwhile, petroleum status report by the US EIA (Energy Information Administration) showed a decline in the crude oil inventories in that country for the week ending December 8. According to EIA, US commercial crude oil inventories decreased by 4.3 million barrels from the previous week. At 440.8 million barrels, US crude oil inventories were about 2 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 19.9 million barrels a day, up by 0.6 per cent from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 8.5 million barrels a day, up by 2.3 per cent from the same period last year.
Turmeric, guar gum gleam
December aluminium futures were trading at ₹197.65 on MCX against the previous close of ₹195.65, up by 1.02 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), December turmeric (farmer polished) contracts were trading at ₹13,516 against the previous close of ₹12,998, up by 3.99 per cent.
January guar gum futures were trading at ₹10,970 on NCDEX against the previous close of ₹10,909, up by 0.56 per cent.