Comments
Crude oil futures traded higher on Wednesday morning as the US Energy Information Administration (EIA) has forecast growth in oil demand during 2024.
At 9.55 am on Wednesday, August Brent oil futures were at $82.28, up by 0.44 per cent, and July crude oil futures on WTI (West Texas Intermediate) were at $78.35, up by 0.58 per cent.
June crude oil futures were trading at ₹6547 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday morning against the previous close of ₹6526, up by 0.32 per cent, and July futures were trading at ₹6530 against the previous close of ₹6517, up by 0.20 per cent.
US EIA’s its short-term energy outlook said that global consumption would increase by 1.1 million barrels a day in 2024 and 1.5 million barrels a day in 2025. Most of the expected growth is from non-OECD countries, which increase their liquid fuels consumption by 1.1 million barrels a day in 2024 and 1.3 million barrels a day in 2025. “The growth in non-OECD consumption is led by China and India, which we expect will increase consumption by a combined 0.6 million barrels a day in 2024 and 0.7 million barrels a day in 2025,” it said.
EIA’s short-term energy outlook said global production of petroleum and other liquid fuels will increase by 0.8 million barrels a day in 2024, which is 0.2 million barrels a day less than in last month’s short-term energy outlook because of the extension of voluntary OPEC+ production cuts through the third quarter of 2024. “We now expect OPEC+ liquid fuels production to decrease by 1.2 million barrels a day in 2024,” it said.
Meanwhile, Monthly Oil Market Report of the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, said that the global oil demand growth forecast for 2024 remained unchanged from last month’s estimates at 2.2 million barrels a day. In 2025, global oil demand is expected to see robust growth of 1.8 million barrels a day, year on year, unchanged from the previous month’s assessment.
On the weekly crude oil inventories in the US, the industry body American Petroleum Institute (API) estimated a decline in inventories for the week ending June 7. According to API, crude oil inventories in the US declined by 2.42 million barrels for the week ending June 7. Market was expecting a decline of 1.75 million barrels during the period.
US EIA is expected to release the official data on weekly crude oil inventories later in the day. June natural gas futures were trading at ₹259.40 on MCX during the initial hour of trading on Wednesday morning against the previous close of ₹256.40, up by 1.17 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June guarseed contracts were trading at ₹5383 in the initial hour of trading on Wednesday morning against the previous close of ₹5350, up by 0.62 per cent.
July jeera futures were trading at ₹26780 on NCDEX in the initial hour of trading on Wednesday morning against the previous close of ₹26940, down by 0.59 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.