futures traded higher on Wednesday morning as industry data showed a decline in fuel inventories.
At 9.55 am on Wednesday, December Brent oil futures were at $65.96, up by 0.78 per cent, and November crude oil futures on WTI (West Texas Intermediate) were at $62.27, up by 0.87 per cent. October crude oil futures were trading at ₹5,538 on during the initial hour of trading on Wednesday against the previous close of ₹5,480, up by 1.06 per cent, and November futures were trading at ₹5,515 against the previous close of ₹5,461, up by 0.99 per cent.
According to the industry body American Petroleum Institute (API), US crude oil inventories increased by 2.78 million barrels for the week ended October 4 against the market forecast of a decline of 2.25 million barrels. However, gasoline and distillate inventories declined by 1.3 million barrels and 1.8 million barrels, respectively, during the period.
Official data on US crude oil inventories by US EIA (Energy Information Administration) is expected later on Wednesday. This will give a clear picture on US crude oil inventories.
Meanwhile, EIA’s short-term energy outlook for October said that US crude oil production will average 13.5 million barrels a day in both 2025 and 2026. EIA’s 2026 forecast increased by 0.2 million barrels a day from last month.
Mentioning that production in July was higher than previously estimated, it said this raised the starting point for EIA’s US crude oil production forecast. In addition, EIA raised forecast for crude oil production in the Gulf of America as some projects are ramping up production faster than it had expected.
On global oil production, the outlook said global liquid fuels production increases throughout the forecast, which will drive inventory accumulation. Production growth is led by countries outside of OPEC+, where production rises by 2 million barrels a day in 2025 and by 0.7 million barrels a day in 2026. OPEC+ increases total liquids production by 0.6 million barrels a day in both 2025 and 2026, as the group unwinds crude oil production cuts.
However, it said OPEC+ production will remain below announced targets, preventing inventory builds from accelerating too quickly and limiting the decrease in oil prices.
On global oil prices, EIA said the rise of global oil inventories through 2026 will put significant downward pressure on oil prices in the coming months. It said the Brent crude oil price will fall to an average of $62 per barrel in the fourth quarter of 2025 and $52 per barrel in 2026.
October natural gas futures were trading at ₹311.30 on MCX during the initial hour of trading on Wednesday against the previous close of ₹307.30, up by 1.30 per cent.
On the , November jeera contracts were trading at ₹19390 in the initial hour of trading on Wednesday against the previous close of ₹19235, up by 0.81 per cent.
November dhaniya futures were trading at ₹8,580 on NCDEX in the initial hour of trading on Wednesday against the previous close of ₹8,604, down by 0.28 per cent.