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Crude oil futures traded higher on Thursday morning as the official data showed decline in crude oil inventories in the US.
At 9.53 am on Thursday, July Brent oil futures were at $83.08, up by 0.40 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $79.01, up by 0.48 per cent.
May crude oil futures were trading at ₹6591 on Multi Commodity Exchange (MCX) during initial trading on Thursday morning against the previous close of ₹6551, up by 0.61 per cent, and June futures were trading at ₹6566 against the previous close of ₹6535, up by 0.47 per cent.
Soft inflation data
Petroleum Status Report by the US EIA (Energy Information Administration) for the week ending May 10 showed decline in crude oil inventories in the US.
According to EIA, US commercial crude oil inventories decreased by 2.5 million barrels from the previous week. At 457 million barrels, US crude oil inventories were about 4 per cent below the five-year average for this time of year. Crude oil inventories had declined by 1.36 million barrels for the week ending May 3.
Total motor gasoline inventories decreased by 0.2 million barrels from last week and were about 1 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 20.1 million barrels a day, up by 0.7 per cent from the same period last year.
US crude oil imports averaged 6.7 million barrels a day last week, a decrease of 226,000 barrels a day from the previous week. Over the past four weeks, crude oil imports averaged about 6.7 million barrels a day, 7.1 per cent more than the same four-week period last year.
Meanwhile, soft US inflation data for the month of April led to hopes in the market that that the US Federal Reserves will begin interest rate cuts in September. Reduction in interest rate will help boost the demand for commodities such as crude oil.
According to the US Bureau of Labour Statistics, consumer price index (CPI) for April increased by 0.3 per cent against 0.4 per cent in March. Market was expecting CPI to go up by 0.4 per cent in April.
Turmeric gleams
May natural gas futures were trading at ₹201.40 on MCX against the previous close of ₹198.90, up by 1.26 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June turmeric (farmer polished) contracts were trading at ₹18,270 against the previous close of ₹18,160, up by 0.61 per cent.
June cottonseed oilcake futures were trading at ₹2,627 on NCDEX against the previous close of ₹2,618, up by 0.34 per cent.
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