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Crude oil traded lower on Thursday morning as data from an industry body in the US showed an increase in crude oil inventory last week.
At 10 am on Thursday, March Brent oil futures were at $83.88, down by 1.29 per cent, and March crude oil futures on WTI were at $78.56, down by 1.55 per cent.
January crude oil futures were trading at ₹6,369 on Multi Commodity Exchange (MCX) during the initial hours of trading, against the previous close of ₹6,510, down by 2.17 per cent, and February futures were trading at ₹6,415 against the previous close of ₹6,550, down by 2.06 per cent.
EIA data will be key
Market reports citing data from the American Petroleum Institute (API) showed an increase of 7.61 million barrels of crude oil inventory in the US last week. The market had been expecting a decline of 1.8 million barrels during the period.
However, official data on crude oil inventories from the US EIA (Energy Information Administration) is expected later in the day.
Apart from this, data related to retail sales and industrial production in the US were below than expected. The data raised concerns over a potential slowdown in the US market and its impact on crude oil demand.
Meanwhile, the International Energy Agency’s (IEA) oil market report for January said global oil demand is set to rise by 1.9 million barrels a day in 2023, to a record 101.7 million barrels a day. Nearly half the gain will come from China, following the lifting of its Covid restrictions, it said.
World oil supply growth is set to slow to 1 million barrels a day in 2023 after last year’s growth of 4.7 million barrels a day led by the Organization of Petroleum Exporting Countries and its allies, known as OPEC+. An overall non-OPEC+ rise of 1.9 million barrels a day will be tempered by an OPEC+ drop of 870,000 barrels a day due to expected declines in Russia, it said.
Jeera crackles, guar gum cools
January copper futures were trading at ₹769.90 on MCX in the initial trading hour of Thursday morning against the previous close of ₹774.60, down by 0.61 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), March jeera contracts were trading at ₹35,340 in the initial trading hour of Thursday morning against the previous close of ₹35,100, up by 0.68 per cent.
February guar gum futures were trading at ₹13,808 against the previous close of ₹13,945, down by 0.98 per cent.
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