Crude Oil Today: Prices rise as industry data indicate US inventory decline

Crude oil futures traded higher on Wednesday morning as the industry data showed decline in oil inventories in the US.

At 9.56 am on Wednesday, July Brent oil futures were at $82.90, up by 0.63 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $78.57, up by 0.70 per cent.

  • Also read: Crude oil prices rise on concerns over Canadian wildfires

May crude oil futures were trading at ₹6562 on Multi Commodity Exchange (MCX) during initial trading on Wednesday morning against the previous close of ₹6512, up by 0.77 per cent, and June futures were trading at ₹6545 against the previous close of ₹ 6498, up by 0.72 per cent.

Official data later today

According to the industry body American Petroleum Institute (API), crude oil inventories in the US declined by 3.104 million barrels for the week ending May 10. The market was expecting it to decline by 1.35 million barrels during the period.

However, official data from the US EIA (Energy Information Administration) is expected later in the day. This will give a clear picture on the crude oil inventories and the fuel demand in the US.

In Canada, wildfire was approaching Fort McMurray region of Alberta, which is known for its oil-sands operations. As a precautionary measure, people in the region have been told to evacuate. This region produces around 3.3 million barrels a day of oil.

Demand forecast unchanged

Decline in crude oil inventories in the US and the potential oil supply disruptions in Canada due to wildfires are likely to lead to a tighter supply outlook for north American market.

Meanwhile, OPEC Monthly Oil Market Report released on May 14 said the global oil demand growth forecast for 2024 remains broadly unchanged from last month’s assessment at 2.2 million barrels a day.

On the world oil supply, it said the non-DoC liquids supply (liquids supply from countries not participating in OPEC’s Declaration of Cooperation) is expected to grow by 1.2 million barrels a day in 2024, unchanged from the previous month’s assessment. The main drivers for growth are expected to be the US, Canada, Brazil and Norway, it said.

Dhaniya gains, jeera slips

May copper futures were trading at ₹894.20 on MCX against the previous close of ₹884.20, up by 1.13 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), June dhaniya contracts were trading at ₹7470 against the previous close of ₹7396, up by 1 per cent.

June jeera futures were trading at ₹27,050 on NCDEX against the previous close of ₹27,315, down by 0.97 per cent.

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