Asian demand boost crude oil futures in some markets

Crude oil futures showed a mixed trend on global exchanges as the Brent crude futures traded lower, and in some other exchanges marginally higher

At 10.03 am on Friday, the September Brent oil futures were at $104.94, down by 1.85 per cent; and September crude oil futures on WTI were at $97.16, up by 0.84 per cent.

August crude oil futures were trading at ₹7782 on Multi Commodity Exchange (MCX) in early trade against the previous close of ₹7778, up by 0.05 per cent; and September futures were trading at ₹7,600 as against the previous close of ₹7601, down by 0.01 per cent.

Market reports noted that the demand for crude oil from Asia helped boost the trade in some exchanges.

Quoting analysts, a Reuters report said, the demand for gasoline and distillate fuels rose in India to record highs in June. This development has taken place in spite of higher prices. Added to this, the refineries in India are operating near their busiest levels ever, it said.

Meanwhile, the lower demand for petroleum products in the US market led crude oil futures to trade subdued in the previous session. However, the tight supply situation globally helped the market from sliding further.

The Petroleum Status Report by the US EIA (Energy Information Administration) for the week ending July 15, mentioned that the total products supplied over the last four weeks averaged 20.1 million barrels a day, down by 2.6 per cent from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 8.7 million barrels a day, down by 7.6 per cent from the same period last year.

The US President, Joe Biden, who visited Saudi Arabia recently, was not successful in getting commitments from the Arab leaders to increase the production of crude oil. In the meantime, it was reported in media that the Saudi Crown Prince, Mohammed bin Salman, and the Russian President, Vladimir Putin, discussed continued cooperation within OPEC+ in a phone call on Thursday. It may be mentioned here that Russia is a major producer of crude oil in the global market and a part of the OPEC+. The US and many other western nations have imposed a ban on the import of Russian crude oil over its war with Ukraine.

August natural gas futures were trading at ₹617.70 on MCX in early trade against the previous close of ₹631.40, down by 2.17 per cent.

NCDEX

On the National Commodities and Derivatives Exchange (NCDEX), August steel long futures were trading at ₹52,980 in the initial hours against the previous close of ₹50,500, up by 4.91 per cent.

August guargum contracts were trading at ₹9,390 on NCDEX in the initial hours against the previous close of ₹9,479, down by 0.94 per cent.

Published on

July 22, 2022

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