Crude oil declines as industry report indicates surge in US inventory

Crude oil futures traded lower on Wednesday morning as an industry report showed a significant jump in crude oil inventories in the US.

At 9.54 am on Wednesday, June Brent oil futures were at $84.96, down by 0.78 per cent, and May crude oil futures on WTI (West Texas Intermediate) were at $80.98, down by 0.78 per cent.

April crude oil futures were trading at ₹6,754 on the Multi Commodity Exchange (MCX) during initial trading on Wednesday morning, against the previous close of ₹6,817, down by 0.92 per cent, and May futures were trading at ₹6,723, against the previous close of ₹6,783, down by 0.88 per cent.

Official data later today

According to the industry body American Petroleum Institute (API), crude oil inventories in the US increased by 9.33 million barrels for the week ending March 22. Crude oil inventories had declined by 1.51 million barrels for the week ending March 15.

The latest data were contrary to market expectations for a decline in crude oil inventories for the week ending March 22.

However, official data from the US EIA (Energy Information Administration), expected later in the day, will give an idea about the crude oil scenario in the US.

Meanwhile, the markets remained cautious about tighter global supplies due to various factors. One among them is the recent drone attacks by Ukraine on Russian refineries. Market reports noted that recent attacks have impacted around 12 per cent of Russia’s crude oil processing capacity. Russia is one of the major producers of crude oil in the global market.

Jeera slips below ₹23,000

April natural gas futures were trading at ₹149.20 on MCX against the previous close of ₹150.70, down by 1 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), April guarseed contracts were trading at ₹5,057, against the previous close of ₹5,082, down by 0.49 per cent.

May jeera futures were trading at ₹22,990 on NCDEX during the initial hour of trading on Wednesday morning, against the previous close of ₹23,190, down by 0.86 per cent.