Crude oil futures saw an uptick in trading on Thursday morning following an announcement by Saudi Aramco regarding a price hike for March delivery to buyers in Asia.
As of 9.55 am on Thursday, April Brent oil futures were up by 0.11 per cent at $74.69, while March crude oil futures on WTI stood at $71.17, reflecting a 0.20 per cent increase.
On the Multi Commodity Exchange (MCX), February crude oil futures were trading at ₹6243 during the initial hours of Thursday, marking a 0.21 per cent increase from the previous close. Similarly, March futures were trading at ₹6233, reflecting a 0.10 per cent rise from the previous close.
Saudi Aramco’s decision to raise crude oil prices for March delivery to Asia was driven by heightened demand from major consumers like China and India. This move comes in the wake of US sanctions impacting the supply of Russian oil to the global market. Notably, the price of its Arab Light Crude to Asia for March delivery was raised by $2.40 per barrel, marking the largest increase since August 2022.
In contrast, the latest data from the US Energy Information Administration (EIA) showed a significant spike in crude oil inventories in the US for the week ending January 31. Commercial crude oil inventories in the US surged by 8.7 million barrels from the previous week to reach 423.8 million barrels, which is approximately 5 per cent below the five-year average for this time of year.
Moreover, US EIA reported that total motor gasoline inventories increased by 2.2 million barrels from the previous week, slightly surpassing the five-year average for this period. Additionally, total products supplied in the US over the last four weeks averaged 20.6 million barrels per day, reflecting a 3.3 per cent increase from the same period last year.
On the trading front, February natural gas futures were up at ₹290.50 on MCX, while on the National Commodities and Derivatives Exchange (NCDEX), April turmeric and dhaniya futures exhibited mixed trends during the initial hours of trading on Thursday.
The overall commodity market scenario remains dynamic, influenced by a combination of supply-side dynamics and global demand trends.
