Crude oil futures traded higher on Thursday morning as the official data showed a decrease in crude oil inventories in the US for the week ending August 2.
At 9.53 am on Thursday, October Brent oil futures were at $78.66, up by 0.42 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $75.66, up by 0.57 per cent.
August crude oil futures were trading at ₹6356 on Multi Commodity Exchange (MCX) during the initial hour of trading on Thursday against the previous close of ₹6327, up by 0.46 per cent, and September futures were trading at ₹6279 against the previous close of ₹6250, up by 0.46 per cent.
According to the US EIA (Energy Information Administration), US commercial crude oil inventories decreased by 3.7 million barrels for the week ending August 2. At 429.3 million barrels, US crude oil inventories were about 6 per cent below the five-year average for this time of year. Total motor gasoline inventories increased by 1.3 million barrels from last week and were about 2 per cent below the five-year average for this time of year.
Total products supplied in the US over the last four weeks averaged 20.3 million barrels a day, down by 2 per cent from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 9.1 million barrels a day, up by 1.5 per cent from the same period last year.
US crude oil imports averaged 6.2 million barrels a day last week, a decrease of 729,000 barrels from the previous week. Over the past four weeks, crude oil imports averaged about 6.8 million barrels daily, 0.7 per cent more than last year’s four-week period.
In their Commodities Feed, ING Think’s Warren Patterson, Head of Commodities Strategy, and Ewa Manthey, Commodities Strategist, said it is the sixth consecutive week of crude oil stock declines in the US. This leaves total commercial crude inventories at their lowest level since February. However, product numbers were less supportive. Gasoline and distillate stocks increased by 1.34 million barrels and 949,000 barrels, respectively.
They said that the latest trade data from China was relatively bearish. Chinese crude oil imports in July averaged 10.01 million barrels a day, down 3.1 per cent year-on-year and 11.8 per cent lower month-on-month. This leaves cumulative imports over the first seven months of the year down 2.4 per cent year-on-year. Weaker Chinese oil demand was a key driver behind the weakness in oil prices over much of July, they said.
August zinc futures were trading at ₹246.10 on MCX during the initial hour of trading on Thursday against the previous close of ₹244.90, up by 0.49 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), September guargum contracts were trading at ₹10620 in the initial hour of trading on Thursday against the previous close of ₹10596, up by 0.23 per cent.
August turmeric (farmer polished) futures were trading at ₹15800 on NCDEX in the initial hour of trading on Thursday against the previous close of ₹15876, down by 0.48 per cent.