Crude oil gains as official data show inventory decline in US

Crude oil futures traded higher on Thursday morning as the official data showed decline in crude oil inventories in the US for the week ending May 3.

At 9.51 am on Thursday, July Brent oil futures were at $83.92, up by 0.41 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $79.42, up by 0.54 per cent.

May crude oil futures were trading at ₹6,631 on Multi Commodity Exchange (MCX) during initial trading on Thursday morning against the previous close of ₹6,587, up by 0.67 per cent, and June futures were trading at ₹6617 against the previous close of ₹6576, up by 0.62 per cent.

Supplies tight in US market

According to the US EIA’s (Energy Information Administration) petroleum status report for the week ending May 3, US commercial crude oil inventories decreased by 1.4 million barrels from the previous week. This data indicated tighter supplies in the US market.

At 459.5 million barrels, US crude oil inventories were about 3 per cent below the five-year average for this time of year. Crude oil inventories had gone up by 7.26 million barrels for the week ending April 26.

Total motor gasoline inventories in the US increased by 0.9 million barrels for the week ending May 3, and were about 2 per cent below the five-year average for this time of year.

Total products supplied in the US over the last four-week period averaged 19.9 million barrels a day, slightly below the same period last year. Over the past four weeks, motor gasoline product supplied averaged 8.6 million barrels a day, down by 4 per cent from the same period last year.

Market is now awaiting for the release of the official trade balance data from China later in the day. This data assumes significance as it would provide more information on export and import figures of China. China’s oil import figures would give an indication about the demand prospects for the commodity in one of the major crude oil markets in the world.

Jeera sizzles, turmeric fizzles

May zinc futures were trading at ₹257.45 on MCX against the previous close of ₹258.20, down by 0.29 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), May jeera contracts were trading at ₹26,600 against the previous close of ₹26500, up by 0.38 per cent.

June turmeric (farmer polished) futures were trading at ₹18,718 on NCDEX in the initial hour of trading on Thursday morning against the previous close of ₹18,878, down by 0.85 per cent.

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