traded lower on Thursday as markets assessed the impact of US secondary tariffs on India, despite a decline in US crude oil inventories for the week ending August 22.
At 9.54 am on Thursday, November Brent oil futures were at $66.95, down by 0.39 per cent, and October crude oil futures on WTI (West Texas Intermediate) were at $63.64, down by 0.80 per cent. September crude oil futures were trading at ₹5,580 on during the initial hour of trading on Thursday against the previous close of ₹5,618, down by 0.68 per cent, and October futures were trading at ₹5,553 against the previous close of ₹5,589, down by 0.64 per cent.
In their Commodities Feed for Wednesday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said that come into effect on August 27, taking the total levy on US imports from India to 50 per cent. The secondary tariff has not been enough to stop India from buying Russian oil. Initially, secondary tariffs saw Indian refiners pause purchases. They have resumed purchases. “The market will be watching Russian oil flows to India closely going forward to gauge the impact, if any, of secondary tariffs,” they said.
According to the Weekly Petroleum Status Report by the US EIA (Energy Information Administration), US commercial crude oil inventories decreased by 2.4 million barrels for the week ending August 22. At 418.3 million barrels, US crude oil inventories were about 6 per cent below the five-year average for this time of year.
Total motor gasoline inventories decreased by 1.2 million barrels from last week and were at the five-year average for this time of year. Distillate fuel inventories decreased by 1.8 million barrels last week and were about 15 per cent below the five-year average for this time of year.
Total products supplied in the US over the last four-week period averaged 21.2 million barrels a day, up by 2.5 per cent from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 9 million barrels a day, down by 1.1 per cent from the same period last year. Distillate fuel product supplied averaged 3.9 million barrels a day over the past four weeks, up by 7.7 per cent from the same period last year. Jet fuel product supplied was up 1.7 per cent compared with the same four-week period last year.
September menthaoil futures were trading at ₹967.80 on MCX during the initial hour of trading on Thursday against the previous close of ₹960.90, up by 0.72 per cent.
On the , September dhaniya contracts were trading at ₹8,120 in the initial hour of trading on Thursday against the previous close of ₹8,090, up by 0.37 per cent.
September cottonseed oilcake futures were trading at ₹3,395 on NCDEX in the initial hour of trading on Thursday against the previous close of ₹3,420, down by 0.73 per cent.