futures traded lower on Thursday after official data showed an increase in the US gasoline and distillate fuel inventories for the week ending May 30.
At 9.54 am on Thursday, August Brent oil futures were at $64.69, down by 0.26 per cent, and July crude oil futures on WTI (West Texas Intermediate) were at $62.58, down by 0.43 per cent. June crude oil futures were trading at ₹5382 on during the initial hour of trading on Thursday against the previous close of ₹5386, down by 0.07 per cent, and July futures were trading at ₹5322 against the previous close of ₹5327, down by 0.09 per cent.
According to the US EIA (Energy Information Administration), US commercial crude oil inventories decreased by 4.3 million barrels for the week ending May 30. At 436.1 million barrels, US crude oil inventories were about 7 per cent below the five-year average for this time of year.
However, total motor gasoline inventories increased by 5.2 million barrels from last week and were about 1 per cent below the five-year average for this time of year. Both finished gasoline inventories and blending components inventories increased last week.
Distillate fuel inventories increased by 4.2 million barrels for the week ending May 30, and were about 16 per cent below the five-year average for this time of year. Total commercial petroleum inventories increased by 12.9 million barrels for the week ending May 30.
Total products supplied in the US over the last four-week period averaged 19.8 million barrels a day, down by 0.9 per cent from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 8.8 million barrels a day, down by 3.1 per cent from the same period last year. Distillate fuel product supplied averaged 3.6 million barrels a day over the past four weeks, down by 4.3 per cent from the same period last year. Jet fuel product supplied was down 2.2 per cent compared with the same four-week period last year.
Saudi Arabia, which is a major producer and oil exporter, has reduced its July crude prices for Asian buyers. The price cut follows the recent decision of the OPEC+ (Organization of the Petroleum Exporting Countries and allies) to increase the production output by 411,000 barrels a day for July.
A Reuters report said the strategy of OPEC+ group leaders such as Saudi Arabia and Russia is partly to punish over-producing countries and to wrestle back market share.
June natural gas futures were trading at ₹316.30 on MCX during the initial hour of trading on Thursday against the previous close of ₹318.30, down by 0.63 per cent.
On the , June guargum contracts were trading at ₹9592 in the initial hour of trading on Thursday against the previous close of ₹9563, up by 0.30 per cent.
June jeera futures were trading at ₹19805 on NCDEX in the initial hour of trading on Thursday against the previous close of ₹19880, down by 0.38 per cent.