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Crude oil futures traded lower on Thursday morning as there was an increase in crude oil inventories in the US.
At 9.51 am on Thursday, December Brent oil futures were at $89.93, down by 0.22 per cent, and December crude oil futures on WTI (West Texas Intermediate) were at $85.28, down by 0.13 per cent.
November crude oil futures were trading at ₹7,106 on Multi Commodity Exchange (MCX) during initial trading, against the previous close of ₹7,078, up by 0.40 per cent, and December futures were trading at ₹7,066 against the previous close of ₹7,039, up by 0.38 per cent.
Gasoline stocks up 0.2 m barrels
According to the petroleum status report by the US Energy Information Administration (EIA) for the week ending October 20, the US commercial crude oil inventories increased by 1.4 million barrels from the previous week.
Total motor gasoline inventories increased by 0.2 million barrels from last week and were about 1 per cent above the five-year average for this time of year.
Total products supplied in the US over the last four-week period averaged 20.2 million barrels a day, down by 0.8 per cent from the same period last year.
These numbers indicated a decline in demand for the commodity in the US.
The global market, meanwhile, is waiting for the release of the third quarter GDP data in the US later in the day.
The recent manufacturing and services data showed a growth in business activities in the US in October. The market now expects the US to register a strong GDP growth in the third quarter and boost the demand for commodities such as crude oil. The US is a major consumer of crude oil.
Market players are also monitoring the geo-political developments in West Asia as they feel that any escalation in the war between Israel and Hamas could impact crude oil supplies from the region.
Market reports noted that Israel has agreed to delay its planned invasion of Gaza to enable the US to rush its missile defence system to the region.
Guar gum down, cottonseed oilcake up
November natural gas futures were trading at ₹282.40 on MCX against the previous close of ₹279.90, up by 0.89 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), November guar gum contracts were trading at ₹12,211 against the previous close of ₹12,250, down by 0.32 per cent.
December cottonseed oilcake futures were trading at ₹2,790 on NCDEX against the previous close of ₹2,789, up by 0.04 per cent.
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