Commodities

Crude oil futures down by 2 per cent on MCX as US inventories rise

BL Mangaluru Bureau | | Updated on: Jan 21, 2022
FILE PHOTO

FILE PHOTO | Photo Credit: ANGUS MORDANT

Investors resort to profit-booking

Crude oil futures fell by more than 2 per cent on the Multi Commodity Exchange (MCX) during the initial hours of trading on Friday, as global prices declined on higher US inventories leading to profit-booking

February crude oil futures were trading at ₹6,257 on MCX, against the previous close of ₹6,397, down by 2.19 per cent.

March Brent oil futures were at $86.84, down by 1.74 per cent; and March crude oil futures on WTI at $83.91, down by 1.92 per cent.

The weekly petroleum status report of the US Energy Information Administration (EIA), which was released on Thursday, said that US commercial crude oil inventories (excluding those in the strategic petroleum reserve) increased by 0.5 million barrels from the previous week.

Reports said investors made short-term adjustments in their positions after an increase in the US inventory.

The EIA report also noted that the US crude oil refinery inputs averaged 15.5 million barrels per day during the week ending January 14, which was 120,000 barrels per day less than the previous week’s average. Market reports said that the decline in refinery inputs indicated a lower demand for crude oil.

February natural gas futures were trading at ₹279 on MCX in the initial hour of trading on Friday morning as against the previous close of ₹276.50, up by 0.90 per cent.

NCDEX

On the National Commodities and Derivatives Exchange (NCDEX), February steel long futures were trading at ₹46,700 in the initial hour of trading on Friday morning against the previous close of ₹46,200, up by 1.08 per cent.

February cottonseed oilcake contracts were trading at ₹3,219 on NCDEX in the initial hour of trading on Friday morning as against the previous close of ₹3,235, down by 0.49 per cent.

Published on January 21, 2022
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