Crude oil futures traded higher on Wednesday morning after witnessing more than 4 per cent fall on Tuesday. However, reports of an increase in crude oil inventories in the US limited the gains.
At 9.55 am on Wednesday, December Brent oil futures were at $77.46, up by 0.36 per cent, and November crude oil futures on WTI (West Texas Intermediate) were at $73.75, up by 0.24 per cent.
October crude oil futures were trading at ₹6197 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of ₹6244, down by 0.75 per cent, and November futures were trading at ₹6171 against the previous close. of ₹6208, down by 0.60 per cent.
Crude oil futures witnessed nearly 4 per cent fall in Tuesday’s session following the reports of a possible ceasefire deal between Hezbollah and Israel. This led to the hopes of a de-escalation of tensions in West Asia. Any move to de-escalate tensions will bring down fears about crude oil supply disruptions from the region.
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However, apprehensions remained over a retaliatory attack by Israel on Iran’s oil facilities. Uncertainties over the developments in West Asia helped boost the price of the commodity on Wednesday morning.
Meanwhile, the industry body American Petroleum Institute (API) indicated an increase in crude oil inventories in the US for the week ending October. According to API, crude oil inventories in the US increased by 10.9 million barrels for the week ending October 8. Market was expecting it to increase by around 1.5 million barrels.
Official data on crude oil inventories in the US is expected to be released by the US EIA (Energy Information Administration) later on Wednesday. This will give a clear picture on the crude oil inventories in the US for the week ending October 4.
October natural gas futures were trading at ₹227.90 on MCX during the initial hour of trading on Wednesday against the previous close of ₹231.80, down by 1.68 per cent.
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On the National Commodities and Derivatives Exchange (NCDEX), October dhaniya contracts were trading at ₹7316 in the initial hour of trading on Wednesday against the previous close of ₹7276, up by 0.55 per cent.
October jeera futures were trading at ₹27010 on NCDEX in the initial hour of trading on Wednesday against the previous close of ₹26770, up by 0.90 per cent.
