Comments
Crude oil futures traded higher on Wednesday morning as the industry data showed a huge decline in inventories in the US for the week ending June 28.
At 9.54 am on Wednesday, September Brent oil futures were at $86.67, up by 0.50 per cent, and August crude oil futures on WTI (West Texas Intermediate) were at $83.17, up by 0.43 per cent.
July crude oil futures were trading at ₹6946 on Multi Commodity Exchange (MCX) during initial trading on Wednesday morning against the previous close of ₹6949, down by 0.04 per cent, and August futures were trading at ₹6889 against the previous close of ₹6884, up by 0.07 per cent.
OPEC output up in June
According to the industry body American Petroleum Institute (API), crude oil inventories in the US declined by 9.16 million barrels for the week ending June 28. This was more than the market expectations of a decline of 0.15 million barrels.
The American Automobile Association had earlier expressed hopes that the summer holiday travel in the US is expected to grow by 5.2 per cent during this season. According to the association, car travel is expected to go up with US Independence Day holiday this week.
A Reuters report said the oil output by the Organization of the Petroleum Exporting Countries (OPEC) increased in June for a second consecutive month. It attributed the higher supplies from Nigeria and Iran for this. These supplies had offset the impact of voluntary supply cuts by other members of OPEC+.
Meanwhile, the Caixin China General Services PMI declined to 51.2 in June from 54 in May. June’s reading was below the forecasts of 53.4. Though June’s reading marked the 18th straight month of expansion in services activity, it remained the softest pace since last October. China is a major consumer of crude oil in the world market.
Mentha oil, guar gum gain
July mentha oil futures were trading at ₹947.50 on MCX against the previous close of ₹937.30, up by 1.09 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), July guar gum contracts were trading at ₹10,383 against the previous close of ₹10313, up by 0.68 per cent.
July dhaniya futures were trading at ₹7244 on NCDEX against the previous close of ₹7204, up by 0.56 per cent.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.