Crude oil futures get a booster from US demand revival

Crude oil futures traded higher on major global exchanges on Thursday morning as the US reported an increase in the demand for petroleum products. US is a major consumer of crude oil in the global market.

At 10.04 am on Thursday, August Brent oil futures were at $123.99, up by 2.83 per cent, and July crude oil futures on WTI were at $122.31, up by 0.16 per cent.

June crude oil futures were trading at ₹94,96 on Multi Commodity Exchange (MCX) in the initial hour of Thursday morning against the previous close of ₹9,524, down by 0.29 per cent, and July futures were trading at ₹9,342 as against the previous close of ₹9,351, down by 0.10 per cent.

Refinery inputs average up

The petroleum status report of the US Energy Information Administration (EIA) for the week ending June 3, which was released on June 8, showed an increase in the products supplied in the US during the four-week period indicating a revival of demand in that market.

It said total products supplied over the last four-week period averaged 19.8 million barrels a day, up by 3.9 per cent from the same period last year. Over the past four weeks, motor gasoline products supplied averaged 9 million barrels a day, and distillate fuel product supplied averaged 3.8 million barrels a day.

It said the US crude oil refinery inputs averaged 16.4 million barrels a day during the week ending June 3, which was 355,000 barrels more than the previous week’s average. Refineries operated at 94.2 per cent of their operable capacity last week. Both gasoline and distillate production increased averaging about 10 million barrels a day and 5 million barrels a day, respectively.

US crude oil imports averaged 6.2 million barrels a day last week, down by 64,000 barrels a day from the previous week. Over the past four weeks, crude oil imports averaged about 6.4 million barrels a day, 1.9 per cent more than the same four-week period last year.

The weekly petroleum status report of US EIA said the US commercial crude oil inventories (excluding those in the strategic petroleum reserve) increased by 2 million barrels from the previous week. At 416.8 million barrels, US crude oil inventories were about 15 per cent below the five-year average for this time of year, it said.

Meanwhile, UAE Energy Minister Suhail al-Mazrouei said on Wednesday that efforts by OPEC (Organization of the Petroleum Exporting Countries) and its allies to boost output are “not encouraging”. He said OPEC+ group was currently 2.6 million barrels a day short of its target.

June aluminium futures were trading at ₹239.50 on MCX in the initial hour of Thursday morning against the previous close of ₹238.40, up by 0.46 per cent.

Guar gum gains

On the National Commodities and Derivatives Exchange (NCDEX), June steel long futures were trading at ₹47850 in the initial hour of Thursday morning against the previous close of ₹46800, up by 2.24 per cent.

June guargum contracts were trading at ₹11,290 on NCDEX in the initial hour of Thursday morning against the previous close of ₹11,174, up by 1.04 per cent.

Published on

June 09, 2022

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