Crude oil up despite industry data showing US inventory increase 

BL Mangaluru Bureau Updated - August 07, 2024 at 10:22 AM.

Crude oil futures traded higher on Wednesday morning despite the industry data showing an increase in crude oil inventories in the US.

At 9.55 am on Wednesday, October Brent oil futures were at $76.69, up by 0.27 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $73.39, up by 0.26 per cent.

August crude oil futures were trading at ₹6,172 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of ₹6186, down by 0.23 per cent, and September futures were trading at ₹6,111 against the previous close of ₹6,126, down by 0.24 per cent.

According to the industry body American Petroleum Institute (API), crude oil inventories in the US increased by 0.18 million barrels for the week ending August 2. Market reports said that travel-heavy summer season had helped boost the demand for the commodity all these weeks. With the travel season coming to an end, the demand for the fuel is coming down.

However, the official data from the US EIA (Energy Information Administration) is expected later in the day. This will give an idea about the demand for the commodity in the US market.

According to the latest figures, China’s trade surplus was below the expectations of the market. China’s trade surplus increased to $84.65 billion in July 2024 against $80.22 billion in July 2023. However, it was below the market expectations of $99 billion.

China’s exports increased by 7 per cent in July against an increase of 8.6 per cent in June. Market was expecting it to grow by 9.7 per cent. China’s imports increased by 7.2 per cent in July against a decline of 2.3 per cent in June. Market was expecting imports to grow by 3.5 per cent during July.

China is the second largest consumer of crude oil in the world market.

August zinc futures were trading at ₹245.65 on MCX during the initial hour of trading on Wednesday against the previous close of ₹247.45, down by 0.73 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), August dhaniya were trading at ₹6970 in the initial hour of trading on Wednesday against the previous close of ₹6,998, down by 0.40 per cent.

August turmeric (farmer polished) futures were trading at ₹15,878 on NCDEX in the initial hour of trading on Wednesday against the previous close of ₹15,800, up by 0.49 per cent.

Published on August 7, 2024 04:52

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