Crude oil declines despite China data showing improved export, import trade

Crude oil futures traded lower on Thursday morning despite China witnessing growth in exports and imports during January and February.

At 9.54 am on Thursday, May Brent oil futures were at $82.89, down by 0.08 per cent, and April crude oil futures on WTI (West Texas Intermediate) were at $79.08, down by 0.06 per cent.

• Also read: Crude oil gains as industry data shows rise in US inventories below market expectations

March crude oil futures were trading at ₹6,547 on Multi Commodity Exchange (MCX) during trading against the previous close of ₹6,600, down by 0.80 per cent, and April futures were trading at ₹6,517 against the previous close of ₹6,569, down by 0.79 per cent.

Higher than expected

Data from General Administration of Customs of China showed that trade surplus of China increased to $125.16 billion during January-February 2024 against $104.42 billion during the corresponding period of 2023. Market was expecting this to be around $103.7 billion during January-February of this year.

Exports from China went up by 7.1 per cent during January-February 2024, and imports went by 3.5 per cent. The market was expecting exports to go up by 1.9 per cent, and imports by 1.5 per cent during the period.

China is a major consumer of crude oil in the world market, and the latest export-import data plays significant role in boosting the demand for the commodity.

Meanwhile, data from the petroleum status report by the US EIA (Energy Information Administration) indicated that increase in crude oil inventories was below the market expectations for the week ending March 1.

US commercial crude oil inventories increased by 1.4 million barrels from the previous week. At 448.5 million barrels, US crude oil inventories were about 1 per cent below the five-year average for this time of year. Market was expecting inventory increase of 2.11 million barrels during the period.

Total motor gasoline inventories decreased by 4.5 million barrels from last week and were about 2 per cent below the five-year average for this time of year.

Crude oil imports in the US averaged 7.2 million barrels a day last week, an increase of 837,000 barrels a day from the previous week. Over the past four weeks, crude oil imports averaged about 6.7 million barrels per day, 6.8 per cent more than the same four-week period last year.

Turmeric turns hot, dhaniya cool

March lead futures were trading at ₹180.15 on MCX against the previous close of ₹179.25, up by 0.50 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), April turmeric (farmer polished) contracts were trading at ₹17,638 against the previous close of ₹17,386, up by 1.45 per cent.

April dhaniya futures were trading at ₹8,140 on NCDEX against the previous close of ₹8,176, down by 0.44 per cent.