Crude oil futures gained on Wednesday morning after data from the American Petroleum Institute (API) showed a decline in US crude oil stock. In contrast, price of the commodity declined on Tuesday after it appeared that EU is unlikely impose a sanction on Russian oil,
At the time of filing this report, May Brent oil futures were at $117.40, up by 1.54 per cent and May crude oil futures on WTI at $110.89, up by 1.48 per cent.
April crude oil futures were trading at ₹8,443 on Multi Commodity Exchange (MCX) in the initial hour of Wednesday morning against the previous close of ₹8,409, up by 0.40 per cent; and May futures were trading at ₹8,273 against the previous close of ₹8,243, up by 0.36 per cent.
Citing latest data from API, reports said crude oil stocks in the US fell by 4.3 billion barrels for the week ended March 18. Reports said the market was expecting an increase in stocks during the period. There was an increase of around 3.8 million barrels in the previous week.
Official data on the US crude stock inventories are due from the US Energy Information Administration later in the day.
On Tuesday, it appeared that EU is not likely to impose an immediate sanction on the Russian oil as some member countries were divided on this matter. This led to the decline in futures on Tuesday.
In his crude oil outlook for the day, Rahul Kalantri, VP (Commodities) of Mehta Equities Ltd, said crude oil was very volatile on Tuesday and prices gained in the early trading session amid anticipation of sanctions on the Russian oils by the EU. But prices fell after clarification that the EU is not having any plans to ban Russian oil. Waiver on the Russian oils by the EU pushed prices lower. However, decline in the API stocks supported crude oil at lower levels.
Quoting API data, he said oil stocks in the US declined by 4.28 million barrel last week. Crude oil prices also get supports amid threats to supply as Yemen’s Iran-aligned Houthi group attacked Saudi energy and water desalination facilities, he said.
“We expect crude oil prices to remain volatile, WTI crude oil is having support at $104.5–102.50 and resistance is at $111.20–114.80. In rupee terms crude oil has support at ₹8,140-8,000, while resistance is at ₹8,550–8,740,” he added.
March nickel futures were trading at ₹2,130 on MCX in the initial hour of Wednesday morning against the previous close of ₹2,083, up by 2.26 per cent.
On MCX, March rubber contracts were trading at ₹16,702 in the initial hour of Wednesday morning against the previous close of ₹16,982, down by 1.65 per cent.
April natural gas futures were trading at ₹393.50 on MCX in the initial hour of Wednesday morning against the previous close of ₹395.90, down by 0.61 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), April jeera futures were trading at ₹21,540 in the initial hour of Wednesday morning against the previous close of ₹21270, up by 1.27 per cent.
April refined castor oil (first special grade) contracts were trading at ₹1472 in the initial hour of Wednesday morning against the previous close of ₹1463, up by 0.62 per cent.