Crude oil futures saw modest gains on Wednesday following a report from the American Petroleum Institute (API) revealing a significant drop in U.S. crude oil inventories for the week ending November 22.
At 9:56 a.m. ET, February Brent oil futures traded at $72.35, reflecting a 0.04% increase, while January West Texas Intermediate (WTI) crude futures rose by 0.06%, reaching $68.81. On the Multi Commodity Exchange (MCX), December crude oil futures were priced at ₹5,822, up 0.80% from the previous close of ₹5,776, while January futures stood at ₹5,815, a 0.88% increase from ₹5,764.
The API report indicated that U.S. crude oil inventories fell by 5.93 million barrels, far exceeding market expectations, which had forecast a modest increase of 0.25 million barrels. Official data from the U.S. Energy Information Administration (EIA) is expected later Wednesday to provide further insight into the inventory situation.
The oil market’s focus remains on geopolitical developments, particularly in the Middle East. U.S. President Joe Biden announced on Tuesday that Israel and Hezbollah had agreed to a peace deal mediated by the U.S. and France. Israeli Prime Minister Benjamin Netanyahu confirmed Israel’s readiness to implement the deal but warned that any violations by Hezbollah would prompt a forceful response. Given the strategic importance of the region for global oil supply, any escalation in tensions could disrupt crude oil shipments, adding volatility to prices.
Additionally, citing two OPEC+ sources indicated that the oil-producing alliance is likely to delay its planned increase in crude oil production. OPEC+ is scheduled to meet on December 1 to review its output policy for 2025. The group had initially planned to gradually reduce oil-production cuts in 2024 and 2025, but slower-than-expected global and Chinese demand, coupled with rising output from non-OPEC countries, has dampened those plans.
In other commodity markets, December zinc futures on MCX rose by 0.65%, trading at ₹286, while December turmeric contracts on the National Commodities and Derivatives Exchange (NCDEX) gained 0.50%, reaching ₹13,676. On the other hand, December dhaniya (coriander) futures fell by 0.61%, settling at ₹7,802.
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