Commodities

Crude oil futures trade lower on MCX

Our Bureau | | Updated on: Jan 13, 2022
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January crude oil futures were trading at ₹6,059 on the MCX in the initial hour of Thursday morning trade

Crude oil futures traded lower on the Multi Commodity Exchange (MCX) during the initial hours of trading on Thursday morning as production in the US is expected to hit a new record with prices ruling above $80 a barrel.

January crude oil futures were trading at ₹6,059 on the MCX in the initial hour of Thursday morning trade against the previous close of ₹6,077, down by 0.30 per cent.

March Brent oil futures were trading at $84.50, down by 0.20 per cent, and February crude oil futures on WTI at $82.50, down by 0.17 per cent.

Market reports noted that there is uncertainty over the near-term demand for fuel following the spread of the Omicron variant of coronavirus across the world, besides expectations of a rise in the US production.

Weekly status report

The January 12 weekly petroleum status report of the US Energy Information Administration said that the commercial crude oil inventories (excluding those in the strategic petroleum reserve) in the US decreased by 4.6 million barrels from the previous week. At 413.3 million barrels, US crude oil inventories are about 8 per cent below the five year average for this time of year. Total motor gasoline inventories increased by 8 million barrels last week and are about 3 per cent below the five year average for this time of year, it said.

Market reports noted that demand for gasoline in the US was still below the pre-pandemic levels and it was weaker than expected by the market. The reports highlighted that oil would not be able to continue to push higher if this becomes a trend.

January natural gas futures were trading at ₹354.70 on the MCX in the initial hour of Thursday morning against the previous close of ₹348.20, up by 1.87 per cent.

NCDEX

On the National Commodities and Derivatives Exchange (NCDEX), January dhaniya contracts were trading at ₹9,870 in the initial hour of Thursday morning against the previous close of ₹9,748, up by 1.25 per cent.

January guar gum futures were trading at ₹11,676 on the NCDEX in the initial hour of Thursday morning against the previous close of ₹11,744, down by 0.58 per cent.

Published on January 13, 2022

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