Crude oil traded marginally higher on Wednesday morning on a report of decline in the US inventories. However, the increase in the number of Covid cases in China limited the price going up further.
At 10 am, the February Brent oil futures were at $80.10, up by 0.14 per cent, and February crude oil futures on WTI were at $76.31, up by 0.10 per cent.
In the early deas on MCX, January crude oil futures were trading at ₹6,336 against the previous close of ₹6,319, up by 0.27 per cent, and February futures at ₹6,364 against the previous close of ₹6,351, up by 0.20 per cent.
US stocks decline
Market reports citing the data from the American Petroleum Institute said the crude oil inventories in the US declined by about 3.1 million barrels for the week ended December 16 against an increase of 7.8 million barrels in the previous week. The market was expecting the inventories declining by around 0.2 million barrels.
However, the official data on the crude oil inventories is expected by US EIA (Energy Information Administration) later in the day.
The recent announcement of the US to buy crude oil to replenish the strategic petroleum reserves also helped steady the prices.
However, the further increase in price was limited on rising Covid cases in China, a major crude oil consumer globally.
Guarseed, guar gum decline
January natural gas futures were trading at ₹455.30 on MCX in the early deals against the previous close of ₹444.60, up by 2.41 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), January guar gum contracts were trading at ₹12,499 in the initial trading hours against the previous close of ₹12,783, down by 2.22 per cent.
January guarseed futures were trading at ₹5,952 on NCDEX morning deals against the previous close of ₹6,050, down by 1.62 per cent.