Crude oil futures traded higher on Wednesday morning as the data published by the American Petroleum Institute (API) showed a decline in crude oil inventories in the US.
At 9.54 am on Wednesday, March Brent oil futures were at $77.89, up by 0.39 per cent; and February crude oil futures on WTI (West Texas Intermediate) were at $72.56, up by 0.44 per cent.
January crude oil futures were trading at ₹6,041 on Multi Commodity Exchange (MCX) in the initial trading hour of Wednesday morning against the previous close of ₹6,034, up by 0.12 per cent; and February futures were trading at ₹6,074 as against the previous close of ₹6,062, up by 0.20 per cent.
The API data showed that crude oil inventories in the US declined by 5.21 million barrels for the week ending January 5 against a decline of 7.41 million barrels in the previous week. The market was expecting a decline of around 1.2 million barrels for the week ending January 5. US EIA (Energy Information Administration) will release official data on crude oil inventories later on Wednesday.
Meanwhile, continued tensions in the Middle East region also supported the price of crude oil. The Israel-Hamas war and the attacks on the merchant ships by the Houthis in the Red Sea region have created apprehensions in the market over the crude oil supply disruption to the world market.
A Reuters report said that the US Secretary of State, Antony Blinken, who was in Israel on Tuesday, asked it to make ‘hard choices’ to normalise relations with more of its neighbours. It was the fourth visit of the US Secretary of State to the Middle East region since the war started between Israel and Hamas.
January natural gas futures were trading at ₹267.70 on MCX in the initial trading hour of Wednesday morning against the previous close of ₹271.60, down by 1.44 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), March jeera contracts were trading at ₹27,100 in the initial trading hour of Wednesday morning against the previous close of ₹26815, up by 1.06 per cent.
February castor seed futures were trading at ₹5,650 on NCDEX in the initial trading hour of Wednesday morning against the previous close of ₹5,671, down by 0.37 per cent.