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Crude oil ended higher on Wednesday morning following tight supply conditions in the market.
At 9.55 am on Wednesday, June Brent oil futures were at $78.35, up by 0.27 per cent, and May crude oil futures on WTI were at $73.63, up by 0.59 per cent.
April crude oil futures were trading at ₹6,065 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹6,058, up by 0.12 per cent; and May futures were trading at ₹6,096 against the previous close of ₹6,091, up by 0.08 per cent.
EIA data may hold the key
According to the American Petroleum Institute (API) report, crude oil inventories in the US fell by 6.1 million barrels for the week ending March 24. The market had been expecting an increase in inventories during the period. The decline indicated demand in the market.
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However, the US EIA (Energy Information Administration) is expected to come out with the official data on crude oil inventories later in the day.
Meanwhile, Turkey’s decision to stop pumping crude oil from Kurdistan via pipeline added to the supply worries. The export of around 450,000 barrels a day of crude oil from the Kurdistan region to Ceyhan port in Turkey came to a standstill following an arbitration that said Iraq’s approval was needed.
Quoting the statement of Russian Energy Minister Nikolai Shulginov from an energy forum, a Reuters report said India was the biggest buyer of Russia’s benchmark Urals-grade crude in March. Deliveries to India are set to account for more than 50 per cent of all seaborne Urals exports this month, he said.
Cotton counters surge
Russia needed to focus on boosting energy exports to ‘friendly’ countries and would continue developing the insurance tools needed to support this trade, Shulginov was quoted as saying.
April natural gas futures were trading at ₹179.90 on MCX in the initial trading hour of Wednesday morning against the previous close of ₹182.20, down by 1.26 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), April cottonseed oilcake contracts were trading at ₹2,741 in the initial trading hour of Wednesday morning against the previous close of ₹2,715, up by 0.96 per cent.
April kapas (raw cotton) futures were trading at ₹1,559 per maund of 20 kg on NCDEX in the initial trading hour of Wednesday morning against the previous close of ₹1,546, up by 0.81 per cent.
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