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Crude oil futures remained steady on Friday morning following strong demand for gasoline in the US market.
At 9.56 am on Friday, July Brent oil futures were at $81.39, up by 0.04 per cent, and July crude oil futures on WTI (West Texas Intermediate) were at $76.88, up by 0.01 per cent.
June crude oil futures were trading at ₹6410 on Multi Commodity Exchange (MCX) during the initial hour of trading on Friday morning against the previous close of ₹6397, up by 0.20 per cent, and July futures were trading at ₹6404 against the previous close of ₹6394, up by 0.16 per cent.
Demand for gasoline has reached its highest level in the US since November. This helped support the prices on Friday morning.
According to the US EIA (Energy Information Administration), gasoline production in the US increased during the week ending May 17, averaging 10 million barrels a day. Total motor gasoline inventories decreased by 0.9 million barrels from last week and were about 2 per cent below the five-year average for this time of year. It said that motor gasoline product supplied in the US averaged 8.9 million barrels a day over the past four weeks.
Market players are of the opinion that the forthcoming US summer driving season would help boost the demand for gasoline in the US market, helping support crude oil prices. US is a major consumer of gasoline in the world market.
Meanwhile, market is now waiting for the meeting of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, on June 1. Market players are waiting to see if the meeting further extends the oil production cuts beyond June, as further extension would lead to the increase in the price of the commodity in the global market.
May menthaoil futures were trading at ₹931.40 on MCX during the initial hour of trading on Friday morning against the previous close of ₹927, up by 0.47 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June jeera contracts were trading at ₹29230 in the initial hour of trading on Friday morning against the previous close of ₹29330, down by 0.34 per cent.
June dhaniya futures were trading at ₹7662 on NCDEX in the initial hour of trading on Friday morning against the previous close of ₹7682, down by 0.26 per cent.
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