Crude oil futures traded lower on Wednesday morning as the industry data showed increase in crude oil inventories in the US for the week ending May 3.

At 9.52 am on Wednesday, July Brent oil futures were at $82.78, down by 0.46 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $78.05, down by 0.42 per cent.

May crude oil futures were trading at ₹6,530 on Multi Commodity Exchange (MCX) during initial trading on Wednesday morning against the previous close of ₹6,585, down by 0.84 per cent, and June futures were trading at ₹6521 against the previous close of ₹6,577, down by 0.85 per cent.

‘Mulling output hike’

According to the industry body American Petroleum Institute (API), crude oil inventories in the US increased by 0.509 million barrels for the week ending May 3. However, the market was expecting the crude oil inventories to decline by 1.43 million barrels during the period.

Official data on crude oil inventories in the US is expected from the US EIA (Energy Information Administration) later in the day.

Meanwhile, the Russian news agency Interfax, which quoted the Russian Deputy Prime Minister Alexander Novak, said the possibility of increasing oil production within the OPEC+ framework is still being analysed.

“It always depends on the current situation; the balance of supply and demand. Everything is analysed. Now there is no need to forecast anything. We need to look at how the market is feeling,” he told the news agency.

The OPEC+ Ministerial Monitoring Committee will be held on June 1 to plan production output policy for the second half of 2024. The current supply plan for the first half of 2024 removes around 2.2 million barrels a day from the market. This plan is valid till the end of June.

A Reuters report said that the Director of the Central Intelligence Agency of the US, Bill Burns, will travel to Israel on Wednesday for talks with the Israeli Prime Minister Benjamin Netanyahu and other top officials. This visit comes amidst the continuing tensions between Israel and Hamas in West Asia.

Jeera tops ₹26,000

May natural gas futures were trading at ₹185.20 on MCX during the initial hour of trading on Wednesday morning against the previous close of ₹184.20, up by 0.54 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), May jeera contracts were trading at ₹26,310 in the initial hour of trading on Wednesday morning against the previous close of ₹26,540, down by 0.87 per cent.

May cottonseed oilcake futures were trading at ₹2,595 on NCDEX in the initial hour of trading on Wednesday morning against the previous close of ₹2,605, down by 0.38 per cent.

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