Crude oil futures took a hit on Thursday morning following the release of official data showing an increase in product inventories in the US. This development caused March Brent oil futures to drop by 0.14% to $76.05, while February crude oil futures on WTI decreased by 0.16% to $73.20.
On the Multi Commodity Exchange (MCX), January crude oil futures were trading at ₹6,298 and February futures were trading at ₹6,279, both registering slight declines from the previous closing prices.
The US Energy Information Administration’s weekly petroleum status report for the week ending January 3 revealed a rise in product inventories. Motor gasoline inventories increased by 6.3 million barrels, while distillate fuel inventories saw a 6.1 million barrel increase. Total commercial petroleum inventories also went up by 5 million barrels.
This marks the eighth consecutive week of product inventory build in the US, raising concerns about demand in one of the world’s biggest consumers. US crude oil refinery inputs averaged 16.9 million barrels per day, with gasoline and distillate fuel production decreasing during the week.
However, US commercial crude oil inventories decreased by 1 million barrels, standing at 414.6 million barrels, approximately 6% below the five-year average for this time of year. Additionally, US crude oil imports saw a decrease from the previous week.
In other commodity news, January natural gas futures on MCX were trading lower at ₹313, while January guarseed and dhaniya futures on NCDEX were trading higher and lower, respectively.
Overall, the fluctuations in crude oil futures due to the rise in US petroleum product inventories underscore the ongoing challenges faced by the energy market and the importance of monitoring inventory levels to gauge demand trends. Investors and traders will likely keep a close eye on these developments to make informed decisions in the volatile commodity market.
