Crude oil futures saw a decline in trading on Thursday morning following a report indicating an increase in inventories in the US.
As of 9.41 am on Thursday, March Brent oil futures were down by 0.33 per cent at $78.74, while March crude oil futures on WTI (West Texas Intermediate) were down by 0.29 per cent at $75.22.
On the Multi Commodity Exchange (MCX), February crude oil futures were trading at ₹6513, a decrease of 0.73 per cent from the previous close, and March futures were trading at ₹6472, down by 0.68 per cent from the previous close.
The latest data from the American Petroleum Institute (API) revealed a 1 million barrel increase in crude oil inventories in the US for the week ending January 17. This marked the first increase in inventories after five consecutive weeks of decline.
The Energy Information Administration (EIA) is expected to release official data later on Thursday, providing a clearer picture of crude oil inventory levels in the US.
Market analysts are also considering the potential impact of US President Donald Trump’s decision to impose tariffs on several countries, which could affect the global economy and consequently, the demand for commodities like crude oil.
In a recent statement on social media, Trump warned Russia of tariffs and sanctions if it did not end its war with Ukraine. He also mentioned potential tariffs against the European Union, Canada, Mexico, and China.
Considering Russia’s significant role as a crude oil producer in the global market, these developments are closely watched by market participants.
On MCX, January zinc futures were trading at ₹272.90 in the early hours of Thursday, down by 0.82 per cent from the previous close of ₹275.15.
Overall, the market remains cautious as it waits for further developments and data releases to assess the impact on crude oil prices.
