Crude oil futures traded lower on early Thursday as the Chinese PMI (purchasing managers’ index) witnessed a slow growth. The data related to crude oil situation in the US market also played a role in the futures prices.
At 10.03 am on Thursday, November Brent oil futures were at $95.32, down by 0.33 per cent, and October crude oil futures on WTI were at $89.25, down by 0.34 per cent.
The September crude oil futures were trading at ₹7,117 on Multi Commodity Exchange (MCX) in the early trade against the previous close of ₹7,197, down by 1.11 per cent; and October futures were trading at ₹7,105 as against the previous close of ₹7,173, down by 0.95 per cent.
In China, data from the National Bureau of Statistics revealed that the Chinese PMI increased to 49.4 in August from 49.0 in July. Though there was a slight increase, it was below the 50-point mark, indicating acontinued weakness.
EIA status report
Market players attribute factors such as new Covid cases and worst heatwaves as reasons for the lack o growth momentum in China.
Meanwhile, the petroleum status report of the US EIA (Energy Information Administration) for the week ending August 26, released on August 31, showed a decline in the US commercial crude oil inventories (excluding those in the strategic petroleum reserve) by 3.3 million barrels from the previous week. At 418.3 million barrels, the US crude oil inventories are about 6 per cent below the five-year average for this time of a year.
Total products supplied over the last four-week period averaged 20 million barrels a day, down by 6.4 per cent from the same period last year.
The US crude oil refinery inputs averaged 16.2 million barrels a day during the week ending August 26, which was 17,000 barrels a day less than the previous week’s average.
According to some media reports, the members of the OPEC (Organization of the Petroleum Exporting Countries) members and its allies, known as OPEC+, are yet to start discussions on the potential production output cut.
It may be mentioned here that some OPEC+ members, including the major producer Saudi Arabia, has expressed their intention to cut crude oil output to arrest declining prices.
Jeera trades lower, guar gum gains
The September zinc futures were trading at ₹303.65 on MCX in the early trade against the previous close of ₹309.90, down by 2.02 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), September guar gum futures were trading at ₹9,124 in the initial trading hours against the previous close of ₹8,906, up by 2.45 per cent.
The September jeera contracts were trading at ₹24,880 on the NCDEX against the previous close of ₹25,155, down by 1.09 per cent.
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