Crude oil traded higher on Thursday morning following a decrease in the fuel inventories in the US, a major consumer of the energy commodity.
At 9.55 am on Thursday, July Brent oil futures were at $77.01, up by 0.79 per cent, and June crude oil futures on WTI were at $73.12, up by 0.77 per cent.
May crude oil futures traded at ₹6003 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹5,931, up by 1.21 per cent, and June futures were trading at ₹6,025 against the previous close of ₹5,954, up by 1.19 per cent.
Indications of demand
The petroleum status data report published by the US EIA (Energy Information Administration) for the week ending May 5 showed a decrease in the motor gasoline inventories in the US. This indicated the demand for fuel in that country.
Total motor gasoline inventories decreased by 3.2 million barrels from last week and were about 7 per cent below the five-year average for this time of year.
Total petroleum products supplied in the US over the last four-week period averaged 19.9 million barrels a day, up by 2.5 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 2.2 per cent from the same period last year.
However, the US commercial crude oil inventories (excluding those in the strategic petroleum reserve) increased by 3 million barrels from the previous week. At 462.6 million barrels, US crude oil inventories were about 1 per cent below the five-year average for this time of year.
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Chinese data limit gains
Meanwhile, latest data on Chinese economy limited further increase in the price of crude oil. China is a major consumer of crude oil in the global market.
The consumer price index (CPI) in China went up by just 0.1 per cent in April against 0.7 per cent in March. Market was expecting CPI to go up by 0.4 per cent during April.
Producer price index (PPI) in China declined by 3.6 per cent in April against a decline of 2.5 per cent in March. PPI in China declined to the level of 2020. In the pandemic-affected 2020, China’s PPI declined by 3.1 per cent May and 3.7 per cent in June.
Isabgol tops ₹25,000, castorseed ₹6,000
May natural gas futures were trading at ₹179.50 on MCX during initial trading against the previous close of ₹180.70, down by 0.66 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June isabgol seed contracts were trading at ₹25,000 against the previous close of ₹24,770, up by 0.93 per cent.
May castorseed futures were trading at ₹6,000 on NCDEX against the previous close of ₹5,959, up 0.69 per cent.
- Also read: Crude Check: Hovering near a support