Crude oil futures traded higher on Thursday morning as the official data from the US indicated a decline in the inventories.
At 10.02 am on Thursday, October Brent oil futures were at $93.63, up by 1.39 per cent; and September crude oil futures on WTI were at $88.03, up by 0.09 per cent.
August crude oil futures were trading at ₹7,023 on the Multi Commodity Exchange (MCX) in the early deals against the previous close of ₹6,996, up by 0.39 per cent; and September futures were trading at ₹7,016 against the previous close of ₹6,994, up by 0.31 per cent.
According to the petroleum status report by the US EIA (Energy Information Administration) for the week ending August 12, which was released on August 17, the US commercial crude oil inventories (excluding those in the strategic petroleum reserve) decreased by 7.1 million barrels from the previous week. At 425 million barrels, the US crude oil inventories were about 6 per cent below the five-year average for this time of a year. Total motor gasoline inventories decreased by 4.6 million barrels last week and were about 8 per cent below the five-year average for this time of year.
Even the recent data by the US industry body American Petroleum Institute had indicated a decline in the crude oil stocks.
Being a major consumer, a decline in the crude oil inventories indicate the revival of demand for petroleum products in that country.
Meanwhile, a Reuters report said that Russia, a major crude oil producer facing sanctions, has started gradually increasing production citing increased purchases from Asian the countries.
Russia expects its earnings from energy exports to jump 38 per cent this year beating the market analysts expectations of declining output on economic sanctions.
August zinc futures were trading at ₹313.10 on MCX in the early trade against the previous close of ₹317.40, down by 1.35 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), the August guarseed futures were trading at ₹4,750 in the initial hour of Thursday against the previous close of ₹4,773, down by 0.48 per cent.
September turmeric (farmer polished) contracts were trading at ₹7,322 on NCDEX in early trade against the previous close of ₹7,378, down by 0.76 per cent.