Crude oil futures traded lower on January 24 morning amid an increase in the global supply of the energy commodity.

At 9.54 am on January 24, March Brent oil futures were at $79.44, down by 0.14 per cent, and March crude oil futures on WTI (West Texas Intermediate) were at $74.28, down by 0.12 per cent.

February crude oil futures were trading at ₹6,190 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹6,178, up by 0.19 per cent, and March futures were trading at ₹6,224 as against the previous close of ₹6,205, up 0.31 per cent.

Various reports showed increase in crude oil supply in the global market. There has been a gradual recovery in crude oil production in North Dakota region of the US, according to the pipeline authority of the region. North Dakota had seen a decline of around 6,50,000 barrels a day a few days ago due to severe cold weather conditions. North Dakota is one of the major oil producing regions in the US.

Sharara oilfield resumes operations

Sharara oilfield in Libya, which had stopped production a few days ago due to the protests in the region, restarted the operations on January 21. Libya’s Sharara oilfield produces around 3,00,000 barrels a day of crude oil.

Market reports also said that there was increase in crude oil output from Norway.

Meanwhile, data American Petroleum Institute (API) indicated decline in crude oil inventories in the US for the week ending January 19. According to API, crude oil inventories declined by 6.67 million barrels for the week ending January 19. Market was expecting the crude oil inventories to fall by 3 million barrels during the period.

However, the official data from the US EIA (Energy Information Administration) is expected later on January 24.

Tensions escalated in the Middle-East region on January 23. US-led forces continued to attack Houthi targets in Yemen on Tuesday in their efforts to control Houthi group’s attacks on shipping lines in Red Sea route.

Tumeric shines, natural gas loses fizz

Apart from this, US also began operations against Iran-linked militia in Turkey on January 23. This followed an attack on US forces in an Iraqi air base.

February natural gas futures were trading at ₹183.90 on MCX against the previous close of ₹178, up by 3.31 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), April turmeric (farmer polished) contracts were trading at ₹15,750 against the previous close of ₹15,598, up by 0.97 per cent.

February cottonseed oilcake futures were trading at ₹2,581 on NCDEX in the initial trading hour of Wednesday morning against the previous close of ₹2,594, down by 0.50 per cent.