Crude oil futures gained on Wednesday morning as industry data in the US showed more-than-expected decline in inventories last week.

At 10.30 am on Wednesday, October Brent oil futures were at $92.92, up 0.5 per cent, and September crude oil futures on WTI were at $87.39, up by 0.85 per cent.

August crude oil futures were trading at ₹6,931 on Multi Commodity Exchange (MCX) in the initial hour of Wednesday morning against the previous close of ₹6,870, up by 0.89 per cent; and September futures were trading at ₹6,931 as against the previous close of ₹6,883, up by 0.73 per cent.

A Reuters report, which cited market sources for the figures of the American Petroleum Institute, said crude stocks declined by around 448,000 barrels, gasoline by around 4.5 million barrels, and distillate by around 759,000 barrels for the week ending August 12.

Gaining momentum

The US, which is a major consumer in the global market, witnessed an increase in inventories over the past few weeks. The latest data showing a decline in inventories indicates demand is gaining momentum in that country.

Market players are waiting for data from the US Energy Information Administration (EIA) later in the day.

Meanwhile, the US and European Union have said they are studying the response of Iran on the proposed revival of the 2015 nuclear deal. Iran asked the US to show a realistic approach and flexibility to resolve the remaining issues in the deal.

A revival of the deal will help increase crude oil supply to the global market by ending the sanctions imposed on Iranian crude oil by western nations.

Castorseed gains

August natural gas futures were trading at ₹746.50 on MCX in the initial hour of Wednesday morning against the previous close of ₹733.10, up by 1.83 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), August castorseed futures were trading at ₹7,630 in the initial hour of Wednesday morning against the previous close of ₹7,496, up by 1.79 per cent.

September cottonseed oilcake contracts were trading at ₹2,772 on NCDEX in the initial hour of Wednesday morning against the previous close of ₹2,787, down by 0.54 per cent.

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