Crude oil futures saw a boost in trading on Wednesday morning following a report by the American Petroleum Institute (API) showing a decrease in inventories in the US. The report indicated a decline of 2.6 million barrels for the week ending January 10, leading to an increase in oil prices.
March Brent oil futures were up by 0.28% at $80.14, while March crude oil futures on WTI were up by 0.38% at $76.66. On the Multi Commodity Exchange (MCX), January crude oil futures were slightly down, trading at ₹6729, and February futures were also down at ₹6653.
The API report also highlighted an increase in Cushing crude oil stocks by 600,000 barrels, though inventories remain historically low. Gasoline and distillate stocks also saw increases, with gasoline up by 5.4 million barrels and distillate up by 4.9 million barrels.
The recent drop in oil prices was attributed to reports of a potential ceasefire between Israel and Hamas, as well as uncertainty surrounding the impact of US sanctions on the Russian energy sector. Despite these factors, oil prices are expected to remain relatively stable in the first quarter of the year.
Looking ahead, the Energy Information Administration (EIA) forecasted downward pressure on oil prices over the next two years due to expected growth in global oil production outpacing global oil demand. This forecast suggests that the Brent crude oil price will average $74 a barrel in 2025 and continue to decline to $66 a barrel in 2026.
In addition to oil, natural gas and agricultural commodities like dhaniya and jeera also saw fluctuations in their futures trading on Wednesday. January natural gas futures were down by 3.07% at ₹337.60 on MCX, while dhaniya and jeera futures on NCDEX were also slightly down.
Overall, the oil market continues to be influenced by a range of factors, from inventory reports to geopolitical developments and economic forecasts. Investors will be closely monitoring these developments to gauge the future direction of oil prices and commodities in general.
