Crude oil futures experienced an uptick on Wednesday morning, recovering slightly from a significant decline of over 4% on Tuesday. However, reports indicating a rise in crude oil inventories in the United States tempered these gains.
As of 9:55 AM on Wednesday, December Brent oil futures were trading at $77.46, reflecting an increase of 0.36%. Concurrently, November crude oil futures on West Texas Intermediate (WTI) rose by 0.24%, reaching $73.75.
On the Multi Commodity Exchange (MCX), October crude oil futures were priced at ₹6197 during the initial hour of trading, down 0.75% from the previous close of ₹6244. November futures also saw a decrease, trading at ₹6171 compared to the prior close of ₹6208, down by 0.60%.
The downturn on Tuesday was driven by reports of a potential ceasefire deal between Hezbollah and Israel, which fueled hopes for a de-escalation of tensions in West Asia. Such developments typically alleviate concerns regarding potential disruptions to crude oil supplies from the region. Nonetheless, fears of possible retaliatory actions by Israel against Iranian oil facilities persisted, adding to the uncertainties that bolstered crude oil prices on Wednesday morning.
In related developments, the American Petroleum Institute (API) reported a substantial increase in U.S. crude oil inventories for the week ending October 8, with a rise of 10.9 million barrels. This figure significantly surpassed market expectations, which anticipated an increase of approximately 1.5 million barrels.
The U.S. Energy Information Administration (EIA) is set to release official data on crude oil inventories later on Wednesday, which will provide a clearer picture of supply levels for the week ending October 4.
Additionally, October natural gas futures on the MCX were trading at ₹227.90, down 1.68% from the previous close of ₹231.80.
On the National Commodities and Derivatives Exchange (NCDEX), October dhaniya contracts opened at ₹7316, up 0.55% from the previous close of ₹7276. October jeera futures also saw gains, trading at ₹27010 compared to the previous close of ₹26770, an increase of 0.90%.
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