Crude oil futures were on a downward trend on Friday morning following a call from US President Donald Trump for Saudi Arabia to lower oil prices. At 9.59 am, March Brent oil futures stood at $78.20, down by 0.11 per cent, while March crude oil futures on WTI were at $74.50, a decrease of 0.16 per cent.
On the Multi Commodity Exchange (MCX), February crude oil futures opened lower at ₹6444 compared to the previous close of ₹6484, down by 0.62 per cent. March futures were trading at ₹6414, down by 0.56 per cent from the previous close.
During a virtual address at the World Economic Forum in Davos on Thursday, Trump urged Saudi Arabia to reduce oil prices in order to bring an end to the conflict between Russia and Ukraine. He emphasized that lower oil prices could prompt a resolution to the ongoing war. Trump also called on Saudi Arabia to increase its investment package to $1 trillion, up from the proposed $600 billion.
Warren Patterson, Head of Commodities Strategy at ING Think, noted that oil prices faced pressure following Trump’s remarks at the World Economic Forum. However, he highlighted the challenges in convincing OPEC to increase output given Russia’s alignment with OPEC members through the OPEC+ alliance.
Meanwhile, the US Energy Information Administration (EIA) reported a decline in crude oil inventories in the US for the week ending January 17. Commercial crude oil inventories decreased by 1 million barrels, with total inventories standing at 411.7 million barrels, approximately 6 per cent below the five-year average. Motor gasoline inventories increased by 2.3 million barrels, while total products supplied in the US over the last four-week period saw a 0.7 per cent increase from the previous year.
Elsewhere, February natural gas futures were trading higher at ₹300.40 on MCX, while on the National Commodities and Derivatives Exchange (NCDEX), April dhaniya contracts were up at ₹8428 and March jeera futures were down at ₹22375. The markets continue to respond to various factors influencing commodity prices amidst global economic developments.
