Crude oil futures traded lower on Wednesday morning as industry data showed an increase in inventories in the US affecting demand for the commodity.
At 10.02 am on Wednesday, October Brent oil futures were at $96.01, down by 0.66 per cent, and September crude oil futures on WTI were at $90.12, down by 0.42 per cent.
August crude oil futures were trading at ₹7,186 on the Multi Commodity Exchange (MCX) in the initial hour of Wednesday morning against the previous close of ₹7,224, down by 0.53 per cent, and September futures were trading at ₹7,144 as against the previous close of ₹7.184, down by 0.56 per cent.
Citing figures of the American Petroleum Institute, a Reuters report said US crude oil inventories increased by about 2.2 million barrels for the week ending August 5. It said analysts had forecast a drop of around 400,000 barrels during the period.
However, official data of the US EIA (Energy Information Administration) is expected later in the day.
Market analysts indicate that an increase in inflation and a decline in manufacturing activities can further bring down demand for crude oil in the US. This could impact prices in global markets as the US is a major consumer.
Official inflation data of the US, which is slated for later in the day, is eagerly awaited by market players now.
Cotton, castorseed up
August cotton futures were trading at ₹48,650 on MCX in the initial hour of Wednesday morning, against the previous close of ₹48,330, up by 0.66 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), August castorseed futures were trading at ₹7,318 in the initial hours of trading, against the previous close of ₹7,232, up by 1.19 per cent.
August guar gum contracts were trading at ₹8.370 on NCDEX in the initial hour of Wednesday morning, against the previous close of ₹8.497, down by 1.49 per cent.