Crude oil futures traded higher on Thursday morning as the recent forecasts by the Organization of the Petroleum Exporting Countries (OPEC) and International Energy Agency (IEA) indicated tight supply in the coming months.
At 10.02 am on Thursday, November Brent oil futures were at $92.31, up by 0.47 per cent, and October crude oil futures on West Texas Intermediate (WTI) were at $88.94, up by 0.47 per cent.
September crude oil futures were trading at ₹7,374 on the Multi Commodity Exchange (MCX) in the initial trading hour of Thursday against the previous close of ₹7,338, up by 0.49 per cent; and October futures were trading at ₹7,328, as against the previous close of ₹7,291, up by 0.51 per cent.
In its monthly report on Wednesday, the IEA said the extended oil output cuts by Saudi Arabia and Russia will mean a substantial market deficit during 2023.
This report comes a day after OPEC forecast a deficit of 3.3 million barrels a day in the fourth quarter of 2023.
The latest US inflation data ignited hopes that the US Federal Reserve may not increase interest rates next week. This helped boost market sentiments as higher interest rates would make crude oil costlier.
US inflation grew by 0.6 per cent in August, which is not big enough to spark a rate hike, according to market reports.
Meanwhile, crude oil inventories in the US rose during the week ending September 8. According to the petroleum status report by the US Energy Information Administration (EIA), commercial crude oil inventories (excluding those in the strategic petroleum reserve) increased by 4 million barrels from the previous week. Total motor gasoline inventories increased by 5.6 million barrels from last week, and distillate fuel inventories increased by 3.9 million barrels.
September natural gas futures were trading at ₹226.80 on MCX in the initial trading hour of Thursday, against the previous close of ₹221.30, up by 2.49 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), October dhaniya contracts were trading at ₹7,164 in the initial trading hour of Thursday against the previous close of ₹7,130, up by 0.48 per cent.
October guargum futures were trading at ₹12,367 on NCDEX in the initial trading hour of Thursday against the previous close of ₹12,502, down by 1.08 per cent.