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Crude oil ruled higher on Wednesday morning following the industry reports of a decline in the crude oil inventories in the US.
At 9.56 am on Wednesday, June Brent oil futures were at $85.36, up by 0.49 per cent, and May crude oil futures on WTI were at $81.09, up by 0.47 per cent.
April crude oil futures were trading at ₹6.659 on the Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹6,619, up by 0.60 per cent, and May futures were trading at ₹6,682 as against the previous close of ₹6,646, up by 0.54 per cent.
Also read: BL Explainer: What will be the impact of OPEC’s sudden oil output cut
Official data today
Market reports quoting data from the American Petroleum Institute (API) said crude oil inventories in the US came down by 4.34 million barrels for the week ending March 31. The market was expecting the decline in inventories to be around 1.8 million barrels. This more-than-expected decline in crude oil inventories indicated the demand for the commodity in that market.
The official data from the US EIA (Energy Information Administration) is expected later in the day.
However, two economic indicators from the US limited the further increase in the price of the commodity. On the manufacturing front, the factory orders in the US declined by 0.7 per cent in March. This decline was more than the market expectation. The Bureau of Labour Statistics data in the US showed the decline in job openings in the US. These two factors limited further increase in the crude oil price in the market.
Also read: Nil windfall on crude: positive for ONGC and Oil India
Jeera set to top ₹35,500
April natural gas futures were trading at ₹175 on MCX during initial trading against the previous close of ₹174, down by 0.57 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), April jeera contracts were trading at ₹35,450 during initial trading against the previous close of ₹35,055, up by 1.13 per cent.
April cottonseed oilcake futures were trading at ₹2,864 on NCDEX in the initial trading hour of Wednesday morning against the previous close of ₹2,842, up by 0.77 per cent.
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