Crude oil futures traded lower on Thursday morning after an industry report showed an increase in inventories in the US.
At 9.41 am on Thursday, March Brent oil futures were at $78.74, down by 0.33 per cent, and March crude oil futures on WTI (West Texas Intermediate) were at $75.22, down by 0.29 per cent.
February crude oil futures were trading at ₹6513 on Multi Commodity Exchange (MCX) during the initial hour of trading on Thursday against the previous close of ₹6561, down by 0.73 per cent, and March futures were trading at ₹6472 against the previous close of ₹6516, down by 0.68 per cent.
Latest data by the industry body American Petroleum Institute (API) showed an increase of 1 million barrels of crude oil inventories in the US for the week ending January 17. This is the first increase in crude oil inventories after five weeks of continuous decline in inventories.
Official data from the US EIA (Energy Information Administration) is expected later on Thursday. EIA data will give a clear picture on the crude oil inventory levels in the US for the week ending January 17.
Market players are also analysing the potential impacts of the decision to impose tariffs on several nations by the US President, Donald Trump. They feel that such moves could impact the global economy. This in turn could impact the demand for commodities such as crude oil.
On Wednesday, Trump warned Russia of tariffs and sanctions if it does not end war with Ukraine. In a post on the social media platform ‘Truth Social’, Trump said: “…I’m going to do Russia, whose Economy is failing, and President Putin, a very big FAVOR. Settle now, and STOP this ridiculous War! IT’S ONLY GOING TO GET WORSE. If we don’t make a “deal,” and soon, I have no other choice but to put high levels of Taxes, Tariffs, and Sanctions on anything being sold by Russia to the United States, and various other participating countries. Let’s get this war, which never would have started if I were President, over with! We can do it the easy way, or the hard way - and the easy way is always better. It’s time to “MAKE A DEAL.” NO MORE LIVES SHOULD BE LOST!!!”.
Russia is one of the major producers of crude oil in the global market.
Apart from this, Trump has warned of tariffs against European Union. He has also announced a decision to impose 25 per cent tariffs against Canada and Mexico. On Tuesday, Trump said his team was discussing a 10 per cent tariff on China.
January zinc futures were trading at ₹272.90 on MCX during the initial hour of trading on Thursday against the previous close of ₹275.15, down by 0.82 per cent.