Crude oil futures traded lower on Wednesday morning as data from an industry body showed a massive increase in crude oil inventories in the US for the week ending November 17.
At 9.52 am on Wednesday, January Brent oil futures were at $82.35, down by 0.12 per cent, and January crude oil futures on WTI (West Texas Intermediate) were at $77.69, down by 0.10 per cent.
December crude oil futures were trading at ₹6483 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹6468, up by 0.23 per cent, and January futures were trading at ₹6515 as against the previous close of ₹6497, up by 0.28 per cent.
Steady rise in stocks
According to the American Petroleum Institute (API), crude oil inventories in the US increased by around 9 million barrels for the week ending November 17. The market was expecting this growth to be around 1.4 million barrels. According to API data, crude oil inventories went up by around 1.33 million barrels for the week ending November 10.
There has been a steady increase in the US crude oil inventories over the past few weeks indicating a decline in the demand for the commodity in one of the major consumers of crude oil in the global market.
Official data on crude oil inventories from the US EIA (Energy Information Administration) is expected later in the day.
As the meeting of the OPEC (Organisation of the Petroleum Exporting Countries) and its allies, known as OPEC+, scheduled for November 26, now the market is waiting for more cues from this group.
Recent market reports forecasted that some of the major producers in the group are likely to extend their production output cuts in 2024. In the past, Saudi Arabia and Russia from OPEC+ had announced production output cuts till December-end.
Market reports noted the recent inventory reports from the US and slowing economic growth in some major economies indicated that crude oil market was not tight as expected earlier. These factors are impacting the crude oil prices in the world market.
Turmeric, guar gum lose gleam
December natural gas futures were trading at ₹250.10 on MCX against the previous close of ₹252.50, down by 0.95 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), December guar gum contracts were trading at ₹11,390 against the previous close of ₹11452, down by 0.54 per cent.
December turmeric (farmer polished) futures were trading at ₹12,284 on NCDEX against the previous close of ₹12,338, down by 0.44 per cent.