Crude oil futures saw an increase in trading on Wednesday morning following the release of the US EIA’s monthly report, which projected a decrease in global inventories in the first half of 2025.
As of 9:56 am on Wednesday, May Brent oil futures were up by 0.75% at $70.08, while April crude oil futures on WTI were trading at $66.79, up by 0.82%. On the Multi Commodity Exchange (MCX), March crude oil futures were trading at ₹5827, a 0.64% increase from the previous close, and April futures were at ₹5821, up by 0.55%.
According to the EIA report, global oil markets will remain tight until mid-2025 before transitioning to inventory builds later in the year. The report cited decreasing crude oil production in Iran and Venezuela as contributing factors to the expected decline in global oil inventories. As a result, the Brent crude oil spot price is forecasted to rise to $75 per barrel by the third quarter of 2025.
However, the report also predicts that oil inventories will start to build up later in 2025 and into 2026, leading to a decrease in crude oil prices. The Brent crude oil price is expected to average $68 per barrel in 2026.
On the commodities front, oil prices rose on Tuesday due to a weaker US dollar, with the market largely overlooking the Ukraine ceasefire agreement brokered by the US. Data from the American Petroleum Institute (API) showed a bearish trend, with US crude oil inventories increasing by 4.2 million barrels. Despite this build-up, draws in Cushing crude oil inventories and gasoline stocks helped offset some of the negativity.
In other commodity news, March natural gas futures were down by 2.67% on MCX, while April dhaniya contracts on NCDEX saw a 0.38% increase. April cottonseed oilcake futures on NCDEX were down by 0.11%.
Overall, the oil market continues to show resilience amidst various geopolitical and economic factors, with prices responding to supply and demand dynamics as well as market sentiment.
