Petroleum futures traded lower on Wednesday early morning as market information revealed a big boost in petroleum stocks in the United States.
At 9.53 am on Wednesday, April Brent oil futures were at $82.66, down by 0.13 percent, and March petroleum futures on WTI (West Texas Intermediate) were at $77.86, down by 0.01 percent.
February petroleum futures were trading at 6,472 on the Multi Product Exchange (MCX) throughout preliminary trading versus the previous close of 6,490, down by 0.28 percent, and March futures were trading at 6,461, as versus the previous close of 6486, down by 0.39 percent.
8.52 million barrels up.
According to the American Petroleum Institute (API), petroleum stocks in the United States increased by 8.52 million barrels for the week ending February 9. The marketplace was anticipating petroleum stocks to increase by 2.60 million barrels throughout the duration.
ING Believe’s Products Feed stated the boost in petroleum stocks was balanced out by big item decreases, with fuel and extract stocks falling by 7.2 million barrels and 4 million barrels, respectively. The ongoing failure at BP’s 435,000 barrels a day Whiting refinery will have added to the unrefined builds and item draws, it stated.
On the other hand, United States customer cost index (CPI) inflation stayed above market expectations in January. Though United States CPI inflation decreased to 3.1 percent in January from 3.4 percent in December, it stayed above the marketplace projection of 2.9 percent.
Market reports kept in mind that the United States Fed Reserve might keep rates of interest greater for a longer amount of time taking this information into factor to consider. Such an advancement might affect financial activities, which, in turn, might affect need for products such as petroleum.
The current month-to-month report of the OPEC (Organisation of the Petroleum Exporting Countries) left the need projections the same, and it anticipates oil need to grow by 2.25 million barrels a day in 2024.
Kapas up, cottonseed oilcake down.
February gas futures were trading at 141.10 on MCX, versus the previous close of 139.70, up by 1 percent.
On the National Commodities and Derivatives Exchange (NCDEX), April kapas agreements were trading at 1,490 versus the previous close of 1,486, up by 0.24 percent.
February cottonseed oilcake futures were trading at 2,429 on NCDEX, versus the previous close of 2,438, down by 0.37 percent.
.