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Crude oil futures traded lower on Thursday morning as the OPEC (Organization of Petroleum Exporting Countries) has forecast a decline in demand during 2022 and 2023.
At 10 am, December Brent oil futures were at $92.58, down by 0.14 per cent, and November crude oil futures on WTI were at $87.25, down by 0.02 per cent.
October crude oil futures were trading at ₹7,189 on Multi Commodity Exchange (MCX) in the early deals against the previous close of ₹7,194, down by 0.07 per cent, and November futures were trading at ₹7,120 against the previous close of ₹7117, up by 0.04 per cent.
Reflecting macro trends
The OPEC’s monthly oil market report, released on October 12, revised the global oil demand growth by 0.5 million barrels a day in 2022, reflecting the recent macroeconomic trends and oil demand developments in various regions.
These developments include the extension of China's zero-Covid restrictions in some regions, economic challenges in OECD Europe, and inflationary pressures in other key economies, which have weighed on oil demand, especially in the second half of 2022.
With this, global oil demand for 2022 is expected to grow by about 2.6 million barrels a day. In the OECD, oil demand growth is estimated at 1.4 million barrels a day, with the non-OECD at about 1.3 million barrels daily, it said.
“For 2023, world oil demand growth is revised down to stand at about 2.3 million barrels a day. The OECD is projected to grow by about 0.4 million barrels a day, and the non-OECD by about 2 million barrels a day,” the report said.
Considering the weakening of the global economy and the interest rate hikes by some western nations, the recent meeting of OPEC and its allies, known as OPEC+, had taken a decision last week to cut production output by 2 million barrels a day.
Quoting market sources, a Reuters report said worsening demand for crude oil contributes to inventory builds, and the US crude oil stockpiles rose by about 7.1 million barrels for the week ending October 7.
Cotton, tumeric drop
October cotton futures were trading at ₹32,270 on MCX in the initial trading hour of Thursday morning against the previous close of ₹32,900, down by 1.91 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), October turmeric (farmer polished) contracts were trading at ₹6,910 in the initial trading hour of Thursday morning against the previous close of ₹6996, down by 1.23 per cent.
October steel long futures were trading at ₹49,970 on NCDEX in the initial trading hour of Thursday morning against the previous close of ₹50,330, down by 0.72 per cent.
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