Crude oil futures traded higher on Friday morning as official data from the US EIA (Energy Information Administration) showed a decline in crude oil inventories and an increase in imports. The US is a major consumer of crude oil in the global market.
At 9.49 am on Friday, September Brent oil futures were at $76.81, up by 0.38 per cent, and August crude oil futures on WTI (West Texas Intermediate) were at $72.08, up by 0.39 per cent.
July crude oil futures were trading at ₹5,963 on the Multi Commodity Exchange (MCX) during initial trading, against the previous close of ₹5,941, up by 0.37 per cent, and August futures were trading at ₹5,991 as against the previous close of ₹5,964, up by 0.45 per cent.
1% below 5-year average
According to the petroleum status report released by the US EIA for the week ending June 30, US commercial crude oil inventories (excluding those in the strategic petroleum reserve) decreased by 1.5 million barrels from the previous week. At 452.2 million barrels, US crude oil inventories were approximately 1 per cent below the five-year average for this time of year.
US crude oil imports averaged 7 million barrels a day last week, an increase of 459,000 barrels a day from the previous week. Over the past four weeks, crude oil imports averaged about 6.5 million barrels a day, 0.4 per cent more than the same four-week period last year.
Total products supplied over the last four-week period averaged 20.7 million barrels a day, up by 3.5 per cent from the same period last year. Over the past four weeks, the motor gasoline product supplied averaged 9.4 million barrels a day, up by 4.3 per cent from the same period last year.
During the week, Saudi Arabia, a major crude oil producer, announced its decision to extend its voluntary production output cut by 1 million barrels a day for August also. Algeria, another producer, said it would also cut output by an extra 20,000 barrels a day in August.
Russian Deputy Prime Minister, Alexander Novak, announced his country’s decision to bring down its oil exports by 500,000 barrels a day in August.
All these developments are likely to lead to a decline in crude oil supplies to the global market.
Jeera still hot, dhaniya cools
However, the prospects of the US Federal Reserve increasing interest rates during the year limited further gains in the prices of crude oil.
July natural gas futures were trading at ₹218.70 on MCX, against the previous close of ₹217.70, up by 0.46 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), July jeera contracts were trading at ₹57,800 against the previous close of ₹57,065, up by 1.29 per cent.
July dhaniya futures were trading at ₹6,668 on NCDEX against the previous close of ₹6,692, down by 0.36 per cent.