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Tight global supplies and the increase in demand helped crude oil futures trade higher in the global markets on Wednesday morning.
At 10.03 am on Wednesday, August Brent oil futures were at $120.87, up by 1.13 per cent; and July crude oil futures on WTI were at $119.77, up by 0.30 per cent.
June crude oil futures were trading at ₹9,305 on the Multi Commodity Exchange (MCX) in early trade against the previous close of ₹9,169, up by 1.48 per cent, and July futures were trading at ₹9,143 as against the previous close of ₹9,032, up by 1.23 per cent.
The tight supply situation in the global market for crude oil and products helped boost the refiners in Asia to increase their margin for diesel. With the US, the UK and many western nations imposing sanctions on Russia following its war with Ukraine, supplies of crude oil to the already tight global market were further hit. Russia is one of the major producers of crude oil.
US inventories rise
The weekly petroleum status report of the US Energy Information Administration (EIA) is scheduled to be released later in the day. Citing the data of American Petroleum Institute, some news agency reports said the US crude and oil products inventories increased last week.
On the demand front, the easing of Covid related restrictions in China helped boost the market. Beijing and Shanghai regions of China were under lockdown for almost two months affecting the demand for crude oil. However, Beijing opened the restaurants for dine-in service from Monday. After the opening up of cities in China, traffic restrictions have been eased in many parts of that country. China is a major consumer of crude oil in the global market.
June copper futures were trading at ₹793.80 on MCX in the initial hour of Wednesday morning against the previous close of ₹795.35, down by 0.19 per cent.
Guarseed, gum gain
On the National Commodities and Derivatives Exchange (NCDEX), June guar gum futures were trading at ₹11,226 in the initial hour of Wednesday morning against the previous close of ₹11,117, up by 0.98 per cent.
June guarseed contracts were trading at ₹5,816 on NCDEX in the initial hour of Wednesday morning against the previous close of ₹5,770, up by 0.80 per cent.
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