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Approval by the US House of Representatives to suspend the US debt ceiling for two years helped boost the price of crude oil futures on Thursday morning.
At 9.53 am on Thursday, August Brent oil futures were at $72.98, up by 0.52 per cent, and July crude oil futures on WTI were at $68.42, up by 0.48 per cent.
June crude oil futures were trading at ₹5,657 on Multi Commodity Exchange (MCX) in early trade against the previous close of ₹5,690, down by 0.58 per cent; and July futures were trading at ₹5689 as against the previous close of ₹5,726, down by 0.65 per cent.
Crucial approval
On Wednesday, the US House of Representatives passed a bill to suspend the $31.4 trillion debt ceiling. Now, this bill needs the approval of the US Senate before being sent to the President. The bill needs to get the approval of the US President before June 5 to avert any debt default by the government.
The crucial approval enthused the market sentiments, as any failure to get approval here would have led the US to a debt default. Such a development would have impacted the US economy, thus affecting the demand for commodities such as crude oil.
Also read: India slashes base import price of palm oil, gold
However, a reported build in the crude oil inventories in the US limited further increase in the price of crude oil. Market reports quoting the American Petroleum Institute said that crude oil inventories went up by 5.2 million barrels in the US for the week ending May 26.
However, the market was expecting a decline in crude oil inventories during the period. The official data from the US EIA (Energy Information Administration) is expected later in the day.
Natural gas, turmeric down
June natural gas futures were trading at ₹187.90 on MCX in initial trading against the previous close of ₹190, down by 1.11 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June guargum contracts were trading at ₹10,815 in early trade against the previous close of ₹10,908, down by 0.85 per cent.
Also read: Core industries growth hits a six-month low at 3.5% in April
June turmeric (farmer polished) futures were trading at ₹7900 on NCDEX against the previous close of ₹7,974, down by 0.93 per cent.
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