Petroleum futures traded greater on Thursday early morning as the current projections by the Company of the Petroleum Exporting Countries (OPEC) and International Energy Firm (IEA) showed tight supply in the coming months.
At 10.02 am on Thursday, November Brent oil futures were at $92.31, up by 0.47 percent, and October petroleum futures on West Texas Intermediate (WTI) were at $88.94, up by 0.47 percent.
September petroleum futures were trading at 7,374 on the Multi Product Exchange (MCX) in the preliminary trading hour of Thursday versus the previous close of 7,338, up by 0.49 percent; and October futures were trading at 7,328, as versus the previous close of 7,291, up by 0.51 percent.
In its month-to-month report on Wednesday, the IEA stated the extended oil output cuts by Saudi Arabia and Russia will indicate a considerable market deficit throughout 2023.
This report comes a day after OPEC anticipated a deficit of 3.3 million barrels a day in the 4th quarter of 2023.
The current United States inflation information fired up hopes that the United States Federal Reserve might not increase rate of interest next week. This assisted increase market beliefs as greater rate of interest would make petroleum more expensive.
United States inflation grew by 0.6 percent in August, which is not huge enough to trigger a rate walking, according to market reports.
On the other hand, petroleum stocks in the United States increased throughout the week ending September 8. According to the petroleum status report by the United States Energy Info Administration (EIA), business petroleum stocks (omitting those in the tactical petroleum reserve) increased by 4 million barrels from the previous week. Overall motor fuel stocks increased by 5.6 million barrels from recently, and extract fuel stocks increased by 3.9 million barrels.
September gas futures were trading at 226.80 on MCX in the preliminary trading hour of Thursday, versus the previous close of 221.30, up by 2.49 percent.
On the National Commodities and Derivatives Exchange (NCDEX), October dhaniya agreements were trading at 7,164 in the preliminary trading hour of Thursday versus the previous close of 7,130, up by 0.48 percent.
October guargum futures were trading at 12,367 on NCDEX in the preliminary trading hour of Thursday versus the previous close of 12,502, down by 1.08 percent.
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