Despite a surprise increase in crude oil inventories in the US, crude oil futures traded higher on Thursday morning as the Houthis continued their attacks on merchant vessels in the Red Sea region on Tuesday.

At 9.54 am on Thursday, March Brent oil futures were at $77.09, up by 0.38 per cent, and February crude oil futures on WTI (West Texas Intermediate) were at $71.63, up by 0.36 per cent.

January crude oil futures were trading at ₹5,955 on Multi Commodity Exchange (MCX)during initial trading against the previous close of ₹5,931, up by 0.40 per cent, and February futures were trading at ₹5,985 against the previous close of ₹5957, up by 0.47 per cent.

21 drones, missiles downed

According to reports, the US and the British forces shot down 21 drones and missiles fired by the Houthis in Red Sea on Tuesday. Quoting the British Defence Secretary, Grant Shapps, a Reuters report said it was the largest attack in Red Sea region by the Houthis to date.

Meanwhile, Israel continued its attack in southern and central Gaza on Wednesday. Rising tensions in the Middle East region is creating apprehensions over the disruption in the crude oil supplies to the world market.

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Contrary to the expectations of the market and an industry report, crude oil inventories in the US saw an increase for the week ending January 5.

According to the petroleum status report by the US EIA (Energy Information Administration) for the week ending January 5, US commercial crude oil inventories increased by 1.3 million barrels from the previous week. However, the market was expecting a decline in the inventories during the period.

The industry body American Petroleum Institute (API) had estimated a decline in the crude oil inventories to the tune of 5.21 million barrels for the week ending January 5 against a decline of 7.41 million barrels in the previous week.

According to the US EIA report, total motor gasoline inventories increased by 8 million barrels for the week ending January 5 against a build of 10.9 million barrels in the previous week.

Sunflower oil up, castorseed down

Increase in gasoline inventories in the last two weeks has created concerns over the demand for fuel in the US market.

January natural gas futures were trading at ₹249.90 on MCX against the previous close of ₹248.80, up by 0.44 per cent.

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On the National Commodities and Derivatives Exchange (NCDEX), January crude sunflower oil contracts were trading at ₹845 against the previous close of ₹843, up by 0.24 per cent.

January castorseed futures were trading at ₹5537 on NCDEX against the previous close of ₹5552, down by 0.27 per cent.

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