Crude oil futures traded higher on Thursday morning following the market speculation over possible replenishment of strategic petroleum reserves in the US.
At 9.53 am on Thursday, July Brent oil futures were at $83.95, up by 0.61 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $79.49, up by 0.62 per cent.
May crude oil futures were trading at ₹6,647 on the Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹6,622, up by 0.38 per cent, and June futures were trading at ₹6,624 against the previous close of ₹6,596, up by 0.42 per cent.
Supplies same as last year
Market reports speculated that the US government may go ahead with its plans to replenish its strategic petroleum reserves. US aims to procure crude oil at $79 a barrel or below than that level, the reports said. In 2022, US had sold crude oil from the strategic reserves to bring stability in the market.
Meanwhile, petroleum status report by the US EIA (Energy Information Administration) for the week ending April 26 said US commercial crude oil inventories (excluding those in the strategic petroleum reserve) increased by 7.3 million barrels from the previous week. At 460.9 million barrels, US crude oil inventories were about 3 per cent below the five-year average for this time of year.
Total motor gasoline inventories increased by 0.3 million barrels from last week and were about 3 per cent below the five-year average for this time of year.
Total products supplied in the US over the last four-week period averaged 19.6 million barrels a day, slightly above the same period last year.
US crude oil imports averaged 6.8 million barrels a day last week, an increase of 274,000 barrels a day from the previous week. Over the past four weeks, US crude oil imports averaged about 6.5 million barrels a day, 3.6 per cent more than the same four-week period last year.
Jeera gains, castroseed slips
In another development, US Federal Reserve kept the interest rates unchanged in its meeting on Wednesday. Policymakers felt that though inflation has moderated over the past year, it remains elevated. There has been a lack of further progress towards achieving Fed’s goal of achieving 2 per cent inflation target in recent months.
In the meantime, expectations went up in the market over a possible ceasefire deal between Israel and Hamas. Any progress in the deal would help bring stability in the West Asia region.
May mentha oil futures were trading at ₹929.10 on MCX against the previous close of ₹919.40, up by 1.06 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), May jeera contracts were trading at ₹23,700 against the previous close of ₹23,285, up by 1.78 per cent.
May castorseed futures were trading at ₹5,612 on NCDEX against the previous close of ₹5,650, down by 0.67 per cent.