Crude oil gains as US inventories dip 3% below 5-year average

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 March 15.

At 9.52 am on Thursday, May Brent oil futures were at $86.51, up by 0.65 per cent, and May crude oil futures on WTI (West Texas Intermediate) were at $81.75, up by 0.59 per cent.

April crude oil futures were trading at ₹6796 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹6748, up by 0.71 per cent, and May futures were trading at ₹6778 against the previous close of ₹6734, up by 0.65 per cent.

Gasoline stocks down by 3.3 million barrels

Data released by the US EIA (Energy Information Administration) showed decline in crude oil inventories in the US for the week ending March 15. US commercial crude oil inventories decreased by 2 million barrels from the previous week. At 445.0 million barrels, US crude oil inventories were about 3 per cent below the five-year average for this time of year.

Total motor gasoline inventories decreased by 3.3 million barrels from last week and were about 2 per cent below the five-year average for this time of year.

Also read: Rupee rebounds 14 paise to 83.05 against dollar as US Fed indicates 3 rate cuts

Total products supplied in the US over the last four-week period averaged 20.1 million barrels a day, up by 2.2 per cent from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 8.8 million barrels a day, up by 0.3 per cent from the same period last year.

Meanwhile, the meeting of US Federal Reserve on Wednesday kept the interest rates unchanged. However, it indicated three rate cuts during 2024. Reduction in interest rates will help boost the demand for commodities such as crude oil in the global market.

Turmeric shines, dhaniya slips

March copper futures were trading at ₹760.65 on MCX against the previous close of ₹753.60, up by 0.94 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), April turmeric (farmer polished) contracts were trading at ₹17,860 against the previous close of ₹17736, up by 0.70 per cent.

April dhaniya futures were trading at ₹7,678 on NCDEX against the previous close of ₹7,740, down by 0.80 per cent.

COMMENT NOW