Crude oil futures traded lower on major global exchanges early today despite the Organization of Petroleum Exporting Countries (OPEC) coming out with a solid crude oil demand outlook for 2022 and 2023.
At 10.01 am on Wednesday, the November Brent oil futures were at $92.59, down by 0.62 per cent, and October crude oil futures on WTI were at $86.74, down by 0.65 per cent.
September crude oil futures were trading at ₹6,900 on Multi Commodity Exchange (MCX) in the initial trading hour against the previous close of ₹6,928, down by 0.40 per cent; and October futures were trading at ₹6,887 as against the previous close of ₹6920, down by 0.48 per cent.
The OPEC’s monthly oil market report released on September 13 revealed a solid demand outlook. The report said the global demand remained unchanged in 2022 from the previous month’s assessment at a healthy 3.1 million barrels a day. This includes the recent trend for additional oil demand growth due to fuel switching in power generation.
Reduced geopolitical risks
For 2023, the forecast for world oil demand remained unchanged from the previous month’s assessment to 2.7 million barrels a day, it said.
“Oil demand in 2023 is expected to be supported by a still-solid economic performance in major consuming countries, as well as potential improvements in Covid restrictions and reduced geopolitical uncertainties,” the report said.
Meanwhile, the US consumer price index went up by 0.1 per cent in August. Market analysts feel that this may lead to a 75 basis points hike in the interest rates by the US Federal Reserve to control inflation in that country. Such a move may affect the demand outlook in that market.
September natural gas futures were trading at ₹666.90 on MCX in the initial trading hour of Wednesday morning against the previous close of ₹655.10, up by 1.80 per cent.
Guarseed gains, dhaniya cools
On the National Commodities and Derivatives Exchange (NCDEX), September guarseed contracts were trading at ₹4,960 in the initial trading hour of Wednesday morning against the previous close of ₹4,916, up by 0.90 per cent.
September dhaniya futures were trading at ₹10,850 on NCDEX in the initial trading hour of Wednesday morning against the previous close of ₹10,978, down by 1.17 per cent.