Crude oil remained stable. Brent Crude futures showed a down move of 6 cents and touched $76.1 per barrel. Similarly, US West Texas Intermediate crude futures were down by 5 cents and reached $73.27.
There were strong expectations of increased demand for winter fuel, particularly due to colder weather in the Northern Hemisphere, that usually drives up the need for heating oil and other energy products. But this was offset by concerns about rising fuel inventories in the United States, the world’s largest oil consumer, which suggests that supply might be outpacing demand.
In the domestic market crude oil prices rose by Rs 4 to Rs 6,290 per barrel on Thursday in futures trading, as market participants increased their positions due to strong spot demand. On the Multi Commodity Exchange, crude oil for February delivery was up by Rs 4, or 0.06 per cent, trading at Rs 6,290 per barrel across 2,345 lots.
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The U.S. Energy Information Administration (EIA) recently reported an increase in gasoline and distillates stockpiles in the United States, which could ease concerns over supply constraints in the short term. On Wednesday, both benchmarks Brent crude and US WTI also moved down more than 1 per cent due to a stronger dollar and a rise in U.S fuel inventories.
Meanwhile, the U.S. dollar continues to strengthen, bolstered by rising Treasury yields. The dollar’s strength comes ahead of President-elect Donald Trump’s entry into the White House on January 20, with market participants closely monitoring potential fiscal policies and economic stimulus measures
Kaynat Chainwala, AVP-Commodity Research, Kotak Securities said,”WTI crude oil experienced volatile movements, closing 1% lower, pressured by a smaller-than-expected draw in oil stocks and a significant rise in U.S. fuel inventories. The EIA reported an estimated inventory draw of 1 million barrels for the first week of 2025, while gasoline and distillates stocks increased by 6.3 and 6.1 million barrels, respectively. Additionally, a stronger U.S. dollar weighed on oil prices, pushing them toward $73 per barrel.”
He added,”Today,
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