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Crude oil futures traded higher on Wednesday morning as the industry data showed a small increase in crude oil inventories in the US.
At 9.52 am on Wednesday, May Brent oil futures were at $82.20, up by 0.20 per cent, and April crude oil futures on WTI (West Texas Intermediate) were at $78.34, up by 0.24 per cent.
March crude oil futures were trading at ₹6,499 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹6,481, up by 0.28 per cent, and April futures were trading at ₹6,464 against the previous close of ₹6,455, up by 0.14 per cent.
Reshut refineries resume operations
According to the industry body American Petroleum Institute (API), crude oil inventories in the US increased by 0.42 million barrels for the week ending March 1 against an increase of 8.42 million barrels a week prior to that. The market was expecting an increase of 2.6 million barrels for the week ending March 1.
Small increase in inventories is attributed to the restarting of production by many refineries in the US recently. Many refineries had taken a shutdown due to winter and maintenance related issues.
Official crude oil inventory data is expected to be released by the US EIA (Energy Information Administration) later on Wednesday. This will give a clear picture about the crude oil inventories in the US.
Meanwhile, market is waiting for more signals on interest rate cuts as the US Federal Reserve Chair, Jerome Powell, will testify on the economic outlook and recent monetary policy actions before the US Joint Economic Committee on Wednesday and Thursday.
Jeera dips, kapas gains
March natural gas futures were trading at ₹161.50 on MCX against the previous close of ₹160, up by 0.94 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), March jeera contracts were trading at ₹24,910 against the previous close of ₹25,435, down by 2.06 per cent.
April kapas (unprocessed cotton) futures were trading at ₹1,649 on NCDEX in the initial trading hour of Wednesday morning against the previous close of ₹1,640, up by 0.55 per cent.
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