Crude oil futures traded decrease on Thursday morning after the US Federal Reserve projected a slower tempo of rate of interest cuts in 2025.
At 9.54 am on Thursday, February Brent oil futures had been at $73.01, down by 0.52 per cent, and January crude oil futures on WTI (West Texas Intermediate) had been at $69.64, down by 1.33 per cent.
January crude oil futures had been buying and selling at ₹5942 on Multi Commodity Change (MCX) throughout the preliminary hour of buying and selling on Thursday towards the earlier shut of ₹5989, down by 0.78 per cent, and February futures had been buying and selling at ₹5930 towards the earlier shut of ₹5977, down by 0.79 per cent.
- Learn additionally: WTI futures fall despite decline in US crude oil inventories
As anticipated, the US Federal Reserve carried out an rate of interest minimize of 25 foundation factors on Wednesday. On the finish of the two-day assembly on Wednesday, the US Central bankers projected they might make simply two rate of interest cuts of 25 foundation factors every in 2025.
Discount in rates of interest makes dollar-denominated commodities equivalent to crude oil cheaper, boosting its demand on the planet market. Nonetheless, US Fed’s projection of fewer price cuts created apprehensions concerning the potential influence on crude oil costs within the international market.
In the meantime, the official knowledge from the US EIA (Power Data Administration) confirmed decline in crude oil inventories within the US for the week ending December 13.
- Learn additionally: Fed lowers rates by 25 basis points, signals just two cuts in 2025
In response to US EIA, the US industrial crude oil inventories decreased by 0.9 million barrels for the week ending December 13, from the earlier week. At 421 million barrels, US crude oil inventories had been about 6 per cent under the five-year common for this time of yr.
Whole motor gasoline inventories elevated by 2.3 million barrels from final week and had been about 3 per cent under the five-year common for this time of yr.
Whole merchandise provided within the US over the past four-week interval averaged 20.4 million barrels a day, up by 1.3 per cent from the identical interval final yr. Over the previous 4 weeks, motor gasoline product provided averaged 8.7 million barrels a day, up by 2.1 per cent from the identical interval final yr.
US crude oil imports averaged 6.6 million barrels a day final week, a rise of 665,000 barrels a day from the earlier week. Over the previous 4 weeks, crude oil imports averaged about 6.5 million barrels a day, 2.1 per cent lower than the identical four-week interval final yr.
December copper futures had been buying and selling at ₹798.30 on MCX throughout the preliminary hour of buying and selling on Thursday towards the earlier shut of ₹808.45, down by 1.26 per cent.
- Learn additionally: US interest rate hike not on the horizon, says Jerome Powell
On the National Commodities and Derivatives Exchange (NCDEX), January castoseed contracts had been buying and selling at ₹6332 within the preliminary hour of buying and selling on Thursday towards the earlier shut of ₹6313, up by 0.30 per cent.
April turmeric (farmer polished) futures had been buying and selling at ₹13730 on NCDEX within the preliminary hour of buying and selling on Thursday towards the earlier shut of ₹13806, down by 0.55 per cent.
