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Crude oil futures traded lower on Wednesday morning as industry data showed an unexpected increase in the crude oil inventories in the US.
At 9.56 am on Wednesday, October Brent oil futures were at $82.92, down by 0.40 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $79.30, down by 0.41 per cent.
August crude oil futures were trading at ₹6,503 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹6,529, down by 0.40 per cent, and September futures were trading at ₹6,500 against the previous close of ₹6518, down by 0.28 per cent.
Catching market by surprise
Citing the data from the industry body American Petroleum Institute (API), market reports said crude oil inventory of the US went up by 1.31 million barrels for the week ending July 21. The market was expecting a decline of around 1.96 million barrels during the period. The latest data from API indicated that the crude oil supply in the US is not as tight as expected.
However, the official data on the crude oil inventories from the US EIA (Energy Information Administration) is expected later in the day.
Meanwhile, the market is also waiting for the outcome of the meeting of the US Federal Reserve on Wednesday. Though the market is expecting the Fed to hike the interest rates by 25 basis points, it is also hoping that the hike would put an end to the interest rate hike cycle in the US.
Also read: PSU oil marketing companies’ operating profit likely to hit ₹1-lakh crore in FY24
With the US being the major buyer of crude oil in the world market, any decision to increase the interest rate will impact the demand for the commodity.
Mentha oil down, turmeric up
August mentha oil futures were trading at ₹890 on MCX against the previous close of ₹885.40, down by 0.52 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), August turmeric (farmer polished) contracts were trading at ₹13,894 against the previous close of ₹13,584, up by 2.28 per cent.
August guar gum futures were trading at ₹12,645 on NCDEX against the previous close of ₹12,442, up by 1.63 per cent.
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