Crude oil futures traded higher on Thursday morning as severe cold weather in the US impacted oil production in that country. Additionally, the OPEC’s latest monthly report (Organisation of the Petroleum Exporting Countries) indicated a growth in global oil demand for the next two years.

At 9.53 am on Thursday, March Brent oil futures were at $78.13, up by 0.32 per cent, and March crude oil futures on WTI (West Texas Intermediate) were at $72.84, up by 0.50 per cent.

January crude oil futures were trading at ₹6065 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹5972, up by 1.56 per cent, and February futures were trading at ₹6077 as against the previous close of ₹6005, up by 1.20 per cent.

Main drivers

Crude oil output from North Dakota in the US fell by more than 650,000 barrels a day due to severe cold weather conditions in the region. North Dakota is a major oil-producing region in the US. The US had seen record crude oil production in the past few weeks.

According to OPEC’s latest monthly report, the global oil demand growth forecast for 2024 remains unchanged at 2.2 million barrels a day. It said the global oil demand growth in 2025 is expected to grow by 1.8 million barrels a day.

OPEC report said the non-OPEC liquids production in 2024 is expected to grow by 1.3 million barrels a day. The main drivers for liquids supply growth in 2024 are expected to be the US, Canada, Guyana, Brazil, Norway and Kazakhstan. The non-OPEC liquids supply growth in 2025 is expected to stand at 1.3 million barrels a day, mainly driven by the US, Brazil, Canada, Norway, Kazakhstan and Guyana, it said.

The latest weekly data by the industry body American Petroleum Institute (API) showed increased crude oil inventories in the US. According to API, crude oil inventories increased by 0.49 million barrels for the week ending January 12. The market was expecting a decline in crude oil inventories by 2.4 million barrels. However, the official data from the US EIA (Energy Information Administration) is expected later.

Kapas, cotton oilseed cake slip

January natural gas futures were trading at ₹238.90 on MCX against the previous close of ₹236.50, up by 1.01 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), January cottonseed oilcake contracts were trading at ₹2,603 against the previous close of ₹2,621, down by 0.69 per cent.

April kapas futures were trading at ₹1523 on NCDEX in the initial trading hour of Thursday morning against the previous close of ₹1524, down by 0.10 per cent.

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