Crude oil futures traded higher on Thursday morning despite the US Federal Reserve increasing interest rate by 75 basis points on Wednesday.
At 10.01 am on Thursday, November Brent oil futures were at $90.25, up by 0.47 per cent, and November crude oil futures on WTI were at $83.34, up by 0.48 per cent.
October crude oil futures were trading at ₹6,735 on Multi Commodity Exchange (MCX) in the initial trading hour of Thursday against the previous close of ₹6,742, down by 0.10 per cent; and November futures were trading at ₹6,725 against the previous close of ₹6,733, down by 0.12 per cent.
In order to control inflation in the US, the Fed increased the interest rate by 75 basis points on Wednesday. This is the third increase in recent months. However, the market was expecting the rate hike.
The Petroleum Status Report of the US Energy Information Administration (EIA) for the week ending September 16, which was released on September 21, mentioned an increase in crude oil inventories in that country. US commercial crude oil inventories (excluding those in the strategic petroleum reserve) increased by 1.1 million barrels from the previous week. At 430.8 million barrels, US crude oil inventories were about 2 per cent below the five-year average for this time of year.
US crude oil imports averaged 6.9 million barrels a day last week, an increase of 1.2 million barrels a day from the previous week. Crude oil refinery inputs in the US averaged 16.4 million barrels a day during the week ending September 16, which was 333,000 barrels a day more than the previous week’s average.
However, the demand for products fell in the US. Total products supplied over the last four-week period averaged 19.6 million barrels a day, down by 6.7 per cent from the same period last year.
Meanwhile, Russian President Vladimir Putin’s announcement of partial military mobilisation impacted the market, with fears of further disruption in crude oil supply if the Russia-Ukraine war escalates. There is tight supply now.
Zinc, dhania trade higher
September zinc futures were trading at ₹281.25 on MCX in the initial trading hour of Thursday against the previous close of ₹278.30, up by 1.06 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), October dhaniya contracts were trading at ₹10,800 in the initial trading hour of Thursday against the previous close of ₹10,752, up by 0.45 per cent.
October guarseed futures were trading at ₹5,209 on NCDEX in the initial trading hour of Thursday against the previous close of ₹5,228, down by 0.36 per cent.