Crude oil futures traded lower on Friday morning as due to muted demand following indications of supply side boost.
At 10.03 am on Friday, October Brent oil futures were at $96.19, down by 0.41 per cent and September crude oil futures on WTI were at $90.16, down by 0.38 per cent.
September crude oil futures were trading at ₹7178 on Multi Commodity Exchange (MCX) in the initial hours today against the previous close of ₹7269, down by 1.25 per cent; and October futures were trading at ₹7140 (₹7230), down by 1.24 per cent.
The recent weekly petroleum status report by the US EIA (Energy Information Administration) showed a decline in the US commercial crude oil inventories indicating the demand revival for petroleum products in that country.
Though there is an indication of this, market analysts feel that US Federal Reserve could increase interest rates further to bring down inflation.
Market analysts opined that major producers could increase the crude oil output. A recent Reuters report said Russia has started to gradually increase oil production, in spite of sanctions from western nations. It said Russia expects earnings from energy exports to jump 38 per cent this year.
Crude oil market is also looking at the revival of the 2015 Iran nuclear deal. This followed Iran’s response to a proposal by European Union (EU) to revive the deal. In its reply, Iran had asked the US to show a ‘realistic approach and flexibility’ to resolve remaining issues. The deal, if materialised, will pave the way for lifting sanctions on Iranian oil by western nations. Any possible revival of the 2015 nuclear deal will help increase crude oil supplies to the market.
August natural gas futures were trading at ₹729.90 on MCX against the previous close of ₹742.40, down by 1.68 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), September guargum futures were trading at ₹8731 in early trades against yesterday’sclose of ₹8685, up by 0.53 per cent.
September turmeric (farmer polished) contracts were trading at ₹7330 on NCDEX in the initial hour of Friday morning against the previous close of ₹7362, down by 0.43 per cent.