Crude oil futures saw an upward trend on Wednesday morning following industry reports indicating an increase in US inventory levels.
As of 9:52 am on Wednesday, September Brent oil futures rose to $81.14, marking a 0.16 per cent increase, while September crude oil futures for WTI stood at $77.11, up by 0.19 per cent.
Meanwhile, on the Multi Commodity Exchange (MCX), August crude oil futures were trading at ₹6468 during the early trading hours on Wednesday, a slight increase of 0.15 per cent from the previous close of ₹6458. September futures were at ₹6406, up by 0.06 per cent from ₹6402.
According to the American Petroleum Institute (API), crude oil inventories in the US dropped by 3.9 million barrels for the week ending July 19, surpassing market expectations of a 2.5 million barrel decline.
In a commentary, Warren Patterson, Head of Commodities Strategy, and Ewa Manthey, Commodities Strategist at ING Think, noted that early morning trading on Wednesday exhibited positive price action. They attributed this to the API data which showed larger-than-expected declines in US crude oil inventories, along with decreases in gasoline and distillate stocks.
Additionally, short-term supply disruptions, such as wildfires in Canada affecting oil production, provided further support to crude oil prices. ING Think highlighted that these fires have compelled some producers to scale back output, impacting a significant portion of supply.
On the commodity front, August natural gas futures on MCX traded at ₹183.50 during the initial trading hour on Wednesday, down by 2.29 per cent from the previous close of ₹187.80.
Elsewhere, on the National Commodities and Derivatives Exchange (NCDEX), August turmeric (farmer polished) contracts were trading at ₹16000 in early Wednesday trading, showing a gain of 0.39 per cent from the previous close of ₹15938. August guarseed futures on NCDEX were at ₹5422, down by 0.53 per cent from the previous close of ₹5451.
The market movements across various commodities indicated a mixed trend amidst ongoing dynamics in the energy sector and broader commodity markets.
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