Crude oil futures traded higher on Thursday morning following a decline in inventories in the US.
At 9.53 am on Thursday, December Brent oil futures were at $94.94, up by 0.61 per cent, and November crude oil futures on WTI (West Texas Intermediate) were at $94.61, up by 0.99 per cent.
October crude oil futures were trading at ₹7,876 on the Multi Commodity Exchange (MCX) in the initial trading hour of Thursday morning, against the previous close of ₹7,792, up by 1.08 per cent; and November futures were trading at ₹7,691, as against the previous close of ₹7,632, up by 0.77 per cent.
A petroleum status report by the US EIA (Energy Information Administration) for the week ending September 22 showed a decline in inventories in that country. US commercial crude oil inventories (excluding those in the strategic petroleum reserve) decreased by 2.2 million barrels from the previous week. At 416.3 million barrels, US crude oil inventories were about 4 per cent below the five-year average for this time of year.
This decline in inventories was higher than the market expectations. This indicates tightness in supplies in the US market.
Added to this, there was also an increase in products supplied in the US. The total products supplied over the last four-week period averaged 20.6 million barrels a day, up by 4.2 per cent from the same period last year.
Tightness in supplies followed the decision by Saudi Arabia and Russia to extend the crude oil output cut till the year-end. In addition, Russia recently introduced temporary restrictions on the export of motor gasoline and diesel fuel. A decree to that effect was signed by Prime Minister Mikhail Mishustin to stabilise fuel prices in the Russian market.
Saudi Arabia and Russia are among the major crude oil producers in the world market.
October natural gas futures were trading at ₹242.40 on MCX in the initial trading hour of Thursday morning, against the previous close of ₹244.10, down by 0.70 per cent.