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Crude oil futures recovered from Wednesday’s losses to trade higher on Thursday morning.
Crude oil futures plunged more than 6 per cent on Wednesday, as official data showed a huge drop in demand for gasoline in the US.
At 9.53 am on Thursday, December Brent oil futures were at $86.43, up by 0.72 per cent, and November crude oil futures on WTI (West Texas Intermediate) were at $84.71, up by 0.58 per cent.
October crude oil futures were trading at ₹7,072 on the Multi Commodity Exchange (MCX) during initial trading, against the previous close of ₹7,064, up by 0.11 per cent; and November futures were trading at ₹6,958, as against the previous close of ₹6,955, up by 0.04 per cent.
Lowest since 1998
The weekly petroleum status report by the US EIA (Energy Information Administration) said the motor gasoline product supplied averaged 8.3 million barrels a day in the US over the past four weeks, down by 5 per cent from the same period last year. Market reports noted that this was the lowest for this time of the year since 1998, indicating a decline in demand.
Meanwhile, US commercial crude oil inventories decreased by 2.2 million barrels for the week ending September 29. At 414.1 million barrels, US crude oil inventories were about 5 per cent below the five-year average for this time of year.
In line with market expectations, Wednesday’s meeting of the ministers from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, commonly known as OPEC+, kept production output unchanged.
The meeting also expressed recognition and support for Saudi Arabia’s efforts at supporting the stability of the oil market and reiterated its appreciation for its additional voluntary cut of 1 million barrels a day and for extending it till December-end. It also acknowledged Russia for extending its additional voluntary reduction of exports by 300,000 barrels a day till the end of December.
Guar gum, jeera gain
October zinc futures were trading at ₹223.05 on MCX in the initial trading hour of Thursday morning, against the previous close of ₹222.15, up by 0.41 per cent.
On NCDEX, guar gum December contracts gained 1.37 per cent at ₹11,699 a quintal. Jeera (cumin) November futures increased by 0.75 per cent to ₹60,065 a quintal.
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