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Despite the more-than-expected increase in the inventories in the US, crude oil traded higher on Friday morning. Prospects of tighter supplies in the coming weeks kept the energy commodity elevated.
At 9.50 am on Friday, April Brent oil futures were up by 0.81 per cent at $82.88 and April crude oil futures on WTI were up by 0.84 per cent at $76.02.
March crude oil futures were trading at ₹6,306 on the Multi Commodity Exchange (MCX) during initial trading hours against the previous close of ₹6,257, up by 0.78 per cent, and April futures were trading at ₹6,353 against the previous close of ₹6,302, up by 0.81 per cent.
Above 5-year average
The petroleum status report of the US for the week ending February 17, which was released by the US EIA (Energy Information Administration) on February 23, showed that the commercial crude oil inventories in the US (excluding those in the strategic petroleum reserve) increased by 7.6 million barrels from the previous week. At 479.0 million barrels, US crude oil inventories were about 9 per cent above the five-year average for this time of year.
The market was expecting an increase of around 2.08 million barrels for the week. However, the increase in the inventories was around 16.28 million barrels in the previous week.
Total products supplied in the US over the last four-week period averaged 20 million barrels a day, down by 8.4 per cent from the same period of last year.
Reports of Russia planning to reduce its exports further from March helped crude oil prices to go up in the market.
A recent report in Reuters, which quoted sources, said Russia could reduce oil exports from its western ports by up to 25 per cent in March. This cut is in addition to the already announced production cut of 500,000 barrels a day in March. Russia is supplying a major quantity of its production to the Asian markets.
Steel, turmeric slip
March natural gas futures were trading at ₹206.30 on MCX in early trade against the previous close of ₹199.70, up by 3.30 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), March steel contracts were trading at ₹48,850 during the initial trading hours against the previous close of ₹49240, down by 0.79 per cent.
April turmeric (farmer polished) futures were trading at ₹7,170 on NCDEX against the previous close of ₹7,204, down by 0.47 per cent.
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