Crude oil futures traded higher on Wednesday morning as an industry report mentioned a decline in crude oil inventories in the US.
At 9.54 am on Wednesday, July Brent oil futures were at $80.94, up by 0.42 per cent; and June crude oil futures on WTI were at $77.48, up by 0.53 per cent.
May crude oil futures were trading at ₹6363 on Multi Commodity Exchange (MCX) in the initial trading hour of Wednesday morning, up by 0.44 per cent; and June futures were trading at ₹6378, up by 0.35 per cent.
Quoting the data from the American Petroleum Institute (API), market reports said there was a decline of around 6.08 million barrels in the crude oil inventories in the US for the week ending April 21 against the market expectations of a decline of around 1.66 million barrels.
Added to this, there was also a decline in the gasoline inventories in the US. These data indicated a tighter supply situation in the US market.
However, the official data from the US EIA (Energy Information Administration) is expected later in the day.
Now the market is focussing on the meetings of the US Federal Reserve, the European Central Bank, and the Bank of England. Any decision by these banks to raise interest rates in their proposed meetings would impact economic growth. Market fears that this, in turn, may impact the demand for commodities, such as crude oil.
May natural gas futures were trading at ₹198.30 on MCX in the initial trading hour of Wednesday morning, down by 1.54 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), May isabgol seed contracts were trading at ₹25100 in the initial trading hour of Wednesday morning, down by 0.50 per cent.
May guargum futures were trading at ₹11152 on NCDEX in the initial trading hour of Wednesday morning, down by 1.11 per cent.