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Crude oil futures traded higher on Wednesday morning as an industry report showed a decline in the US crude oil inventories, indicating the demand for the commodity in the global market.
At 10.01 am on Wednesday, January Brent oil futures were at $95.69, up by 1.10 per cent; and December crude oil futures on WTI were at $89.54, up by 1.32 per cent.
November crude oil futures were trading at ₹7408 on Multi Commodity Exchange (MCX) in the initial trading hour of Wednesday morning against the previous close of ₹7314, up by 1.29 per cent; and December futures were trading at ₹7340 as against the previous close of ₹7247, up by 1.28 per cent.
Market reports quoted data from the American Petroleum Institute (API), which showed a decline in the crude inventories last week.
According to reports, the US crude oil inventories declined by around 6.5 million barrels for the week ending October 28, against the market expectations of a decline of 0.267 million barrels. API data had showed an increase of around 4.52 million barrels of crude oil inventories for the week prior to that.
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NSE Nifty 50 was 0.05% lower at 18,135, while BSE Sensex fell 0.07% to 61,076This more-than-expected decline in the crude oil inventories showed that crude oil is gaining demand in the US, in spite of economic growth concerns.
However, the official data on weekly petroleum status is expected from the US EIA (Energy Information Administration) later in the day.
Now the market is also expecting the outcome of the US Fed Reserve meeting later in the day. According to market report, the US Fed Reserve is likely to increase the interest rate by 75 basis points to control inflation in that country. Any increase in interest rate will impact the demand for the crude oil.
Cotton, guargum up
November cotton futures were trading at ₹30370 on MCX in the initial trading hour of Wednesday morning against the previous close of ₹29740, up by 2.12 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), November guargum contracts were trading at ₹9110 in the initial trading hour of Wednesday morning against the previous close of ₹9045, up by 1.05 per cent.
November dhaniya futures were trading at ₹11,030 on NCDEX in the initial trading hour of Wednesday morning against the previous close of ₹10,930, up by 0.91 per cent.
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