Crude oil futures traded marginally higher on Wednesday morning as an industry data showed a decline in inventory levels in the US.

At 9.57 am on Wednesday, May Brent oil futures were by 0.18 per cent at $83.44 and April crude oil futures on WTI were up by 0.01 per cent at $77.59.

March crude oil futures were trading lower by 0.33 per cent at ₹6,388 on the Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹6,409 and April futures were trading down by 0.34 per cent at ₹6,424 against the previous close of ₹6446.

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Powell’s testimony a pointer

Quoting market sources for the data from American Petroleum Institute, a Reuters report said there was a decline of around 3.8 million barrels in the crude oil inventory levels in the US for the week ending March 3. The market was expecting an increase in crude oil inventories in the US. However, the US EIA (Energy Information Administration) is expected to release the official data on petroleum status in the US later in the day.

However, prospects of an increase in the interest rates in the US limited gains in crude oil futures.

Also read: Fed seen delivering half-point rate hike this month

On Tuesday, Brent and WTI crude oil futures witnessed a decline of more than 3 per cent following the testimony of the Chair of the US Federal Reserve, Jerome Powell, before the Senate Banking Committee.

In his testimony, Powell said, “The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated.”

This had created apprehensions in the market about a slowdown in the economy impacting the demand for commodities, such as crude oil.

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Jeera, dhaniya turn hot

March natural gas futures were trading at ₹219.10 on MCX in the initial trading hour of Wednesday morning against the previous close of ₹218.20, up by 0.41 per cent.

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On the National Commodities and Derivatives Exchange (NCDEX), March jeera contracts were trading at ₹30,545 in the initial trading hour against the previous close of ₹29,985, up by 1.87 per cent.

April dhaniya futures traded at ₹7,052 on NCDEX during initial trading against the previous close of ₹7,016, up by 0.51 per cent.

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