The crude oil market is trying to find direction below $90 a barrel

Crude oil was trading slightly lower in global exchanges on Wednesday morning as the market tried to find a level between falling inventories and the outlook for the economy.

Industry data showed a decline in crude oil inventories in the United States, which is a bullish factor for the energy commodity, but rising Covid cases in China capped gains.

At 10.01 am on Wednesday, January Brent crude oil futures were at $88.18, down 0.20 percent, and January crude oil futures contracts on WTI were at $80.80, down 0.19 percent.

Crude oil futures for December were trading at $6,644 on the Multi Commodity Exchange (MCX) in the first trading hour of Wednesday morning versus the previous close at $6,720, down 1.13 percent.

January futures were trading at ₹6,660 against the previous close of ₹6,730, declining by 1.04 percent.

lower than expectations

Citing data from the American Petroleum Institute (API), the market reports that crude oil inventories in the United States fell by 4.8 million barrels last week, against market expectations for a decrease of 2.2 million barrels. This indicates the demand for the commodity.

However, the market is awaiting the release of official data by the US Energy Information Administration (EIA) later today. This data will give an idea of ​​crude oil inventories in the US.

Another factor that helped crude oil prices was uncertainty about Russia’s position on the proposed Russian oil price cap by the G7 countries. Russia had said earlier that it would not sell crude to those countries that follow measures such as capping prices as proposed by the Group of Seven countries.

Meanwhile, the increase in the number of Covid cases in China and the related control measures affected the demand for the commodity in the global market. China is a major consumer of crude oil.

According to the National Health Commission of China, 29,157 new COVID-19 cases were reported in China on November 22. The number of cases is increasing in Beijing and Shanghai. After that, the authorities enforce strict measures to control the spread of the disease.

Cottonseed oil, molar seed down

December natural gas futures were trading at ₹615 on MCX in the first trading hour of Wednesday morning against the previous close at ₹596.40, an increase of 3.12 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), December cottonseed oil contracts were trading at 2,715 ₹ in the first trading hour of Wednesday morning against the previous close of 2,702 ₹, an increase of 0.48 percent.

December futures were trading at ₹5,890 on NCDEX in the first trading hour of Wednesday morning against the previous close of ₹5,976, down 1.44 percent.

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