Crude oil futures traded higher on Wednesday morning as the industry data showed decline in oil inventories in the US for the week ending April 19.
At 9.52 am on Wednesday, June Brent oil futures were at $88.48, up by 0.07 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $83.45, up by 0.11 per cent.
May crude oil futures were trading at ₹6952 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday morning against the previous close of ₹6928, up by 0.35 per cent, and June futures were trading at ₹6909 against the previous close of ₹6864, up by 0.66 per cent.
According to the industry body American Petroleum Institute (API), crude oil inventories declined by 3.23 million barrels for the week ending April 19 against inventory build of 4.09 million barrels in the previous week. Market was expecting inventory to go up by 1.8 million barrels for the week ending April 19.
Official data by the US EIA (Energy Information Administration) is expected later in the day. It will give an idea about the crude oil inventory levels in a country. US is a major consumer of crude oil in the world market.
Meanwhile, market is waiting for the release of the data on GDP (gross domestic product) for the first quarter in the US, which is expected on Thursday. The US Federal Reserve will take this data into account while deciding its interest rate.
However, there was a hope in the market that the weaker-than-expected purchasing managers index data for April in the US could lead to interest rate cut by the Federal Reserve.
A Reuters report said that business activity cooled in the US in April to a four-month low with S&P Global saying on Tuesday that its flash Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to 50.9 in April from 52.1 in March.
May natural gas futures were trading at ₹176.40 on MCX during the initial hour of trading on Wednesday morning against the previous close of ₹173.40, up by 1.73 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June turmeric (farmer polished) contracts were trading at ₹19508 in the initial hour of trading on Wednesday morning against the previous close of ₹19556, down by 0.25 per cent.
May cottonseed oilcake futures were trading at ₹2589 on NCDEX in the initial hour of trading on Wednesday morning against the previous close of ₹2584, up by 0.19 per cent.