Crude oil futures traded marginally lower on Thursday morning as the market waited for the release of inflation data in the US. Added to this, there was also an increase in the crude oil inventories in the US for the week ending August 4.
At 9.54 am on Thursday, October Brent oil futures were at $87.44, down by 0.13 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $84.33, down by 0.08 per cent.
August crude oil futures were trading at ₹6,981 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹6,929, up by 0.75 per cent, and September futures were trading at ₹6,930 against the previous close of ₹6,886, up by 0.64 per cent.
Fed may maintain hawkish stance
The market is expecting stronger inflation data in the US, which is likely to be released later on Thursday. A high inflation rate may provide more support to the US Federal Reserve to maintain a hawkish stance. The market is of the opinion that such a stance can impact the economy. This, in turn, may impact the demand for commodities such as crude oil.
Meanwhile, the weekly petroleum status report by the US EIA (Energy Information Administration) showed an increase in the crude oil inventories for the week ending August 4.
US commercial crude oil inventories (excluding those in the strategic petroleum reserve) increased by 5.9 million barrels from the previous week.
However, total motor gasoline inventories decreased by 2.7 million barrels from last week and were about 7 per cent below the five-year average for this time of year.
Total products supplied over the last four-week period averaged 20.7 million barrels a day, up by 2.9 per cent from the same period last year.
Cottonseed oil cake, gur gum rise
August natural gas futures were trading at ₹245.60 on MCX during initial trading against the previous close of ₹243.70, up by 0.78 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), August guar gum contracts were trading at ₹12,612 against the previous close of ₹12,501, up by 0.89 per cent.
August cottonseed oilcake futures were trading at ₹2,613 on NCDEX against the previous close of ₹2,599, up by 0.54 per cent.