Crude oil futures saw a decline on Wednesday morning following an increase in inventories in the US for the week ending January 31, as per industry data. At 9.55 am, April Brent oil futures were at $75.82, down by 0.50 per cent, while March crude oil futures on WTI stood at $72.46, a decrease of 0.33 per cent.
On the Multi Commodity Exchange (MCX), February crude oil futures were trading at ₹6322, a drop from the previous close of ₹6343, down by 0.33 per cent. Similarly, March futures were at ₹6306, compared to the previous close of ₹6328, representing a decrease of 0.35 per cent.
The American Petroleum Institute (API) reported a 5.025 million barrels increase in crude oil inventories in the US for the week ending January 31, surpassing the market’s expectation of a 2 million barrels increase. This rise in inventories could indicate weak demand, potentially impacting the commodity’s price.
The official data from the US Energy Information Administration (EIA) is awaited and will provide a clearer picture of crude oil inventory levels in the US for the same period. This is crucial as the US is a key consumer of crude oil globally.
In a Commodities Feed for Wednesday, Warren Patterson, Head of Commodities Strategy at ING Think, highlighted the influence of China’s retaliatory tariffs against the US, impacting oil prices. He also mentioned President Trump’s directive to tighten sanctions on Iran, which could jeopardize a significant portion of Iranian oil exports, potentially affecting global supply.
Amidst these developments, February natural gas futures on the MCX were trading at ₹282, down by 1.91 per cent, while on the National Commodities and Derivatives Exchange (NCDEX), February castorseed contracts were at ₹6449, up by 0.17 per cent. Additionally, February cottonseed oilcake futures on NCDEX were trading at ₹2684, marking a 0.30 per cent decline from the previous close.
Overall, the market is closely watching these developments to gauge the impact on crude oil prices amidst geopolitical tensions and supply concerns.
