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Crude oil futures traded lower on Thursday morning as the official data showed a huge increase in the crude oil inventories in the US.
At 9.52 am on Thursday, April Brent oil futures were at $81.21, down by 0.48 per cent; and March crude oil futures on WTI (West Texas Intermediate) were at $76.22, down by 0.55 per cent.
February crude oil futures were trading at ₹6329 on Multi Commodity Exchange (MCX) in the initial trading hour of Thursday morning against the previous close of ₹6397, down by 1.06 per cent; and March futures were trading at ₹6,324 as against the previous close of ₹6,378, down by 0.85 per cent.
Petroleum status report by the US EIA (Energy Information Administration) for the week ending February 9 showed a huge increase in the crude oil inventories. The increase was much above the market forecasts.
According to EIA, commercial crude oil inventories increased by 12 million barrels from the previous week. Market was forecasting the crude oil inventories to go up by 2.60 million barrels during the week.
Total motor gasoline inventories decreased by 3.7 million barrels from last week and were about two per cent below the five-year average for this time of year. This decline was attributed to maintenance shutdowns by some refineries in the US.
Crude oil production remained at 13.3 million barrels during the week. US has been witnessing increase in crude oil production in the recent weeks.
Added to this, Japan’s gross domestic product (GDP) data showed that it entered recession in the fourth quarter of 2023 due to weakness in private consumption. Private consumption accounts for nearly half of the Japanese economy.
Japan’s GDP shrank 0.1 per cent in fourth quarter of 2023. Market was forecasting a growth of 0.3 per cent during the quarter. Japan entered recession for the first time in five years.
February lead futures were trading at ₹178 on MCX in the initial trading hour of Thursday morning against the previous close of ₹176.80, up by 0.68 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), April kapas contracts were trading at ₹1,529 in the initial trading hour of Thursday morning against the previous close of ₹1,508, up by 1.36 per cent.
March jeera futures were trading at ₹24,715 on NCDEX in the initial trading hour of Thursday morning against the previous close of ₹25,150, down by 1.73 per cent.
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