traded lower on Wednesday morning after industry data showed an increase in crude oil inventories in the US.
At 10 am on Wednesday, November Brent oil futures were at $107.84, down by 0.84 per cent, and October crude oil futures on WTI (West Texas Intermediate) were at $104.61, down by 1.15 per cent. September crude oil futures were trading at ₹10023 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of ₹10209, down by 1.82 per cent, and October futures were trading at ₹9552 against the previous close of ₹9739, down by 1.92 per cent.
According to the industry body American Petroleum Institute (API), crude oil inventories in the US increased by 7.14 million barrels for the week ending September 11. Market was expecting a decline of around 1.8 million barrels during the period.
Market reports noted that the increase in crude oil inventories could be the result of continued releases from the US strategic petroleum reserves.
Official data from the US EIA (Energy Information Administration) is expected later on Wednesday. This will give a clear picture on crude oil inventory levels in the US.
A Reuters report said that oil loadings at Saudi Arabia’s Yanbu port had been suspended after its East-West pipeline was shutdown following an attack by the Houthis on Friday.
Citing unnamed sources, Reuters gave varying estimates of how long the pipeline could remain offline. Quoting one unnamed source, it said repairs could take five to six weeks. Another source said the pipeline could resume partial pumping sooner as repairs continue.
September zinc futures were trading at ₹419.45 on MCX during the initial hour of trading on Wednesday against the previous close of ₹417.20, up by 0.54 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), September cottonseed oilcake contracts were trading at ₹2560 in the initial hour of trading on Wednesday against the previous close of ₹2527, up by 1.31 per cent.
September jeera futures were trading at ₹20915 on NCDEX in the initial hour of trading on Wednesday against the previous close of ₹21025, down by 0.52 per cent.