Crude Oil Futures Fall on West Asia Diplomacy Hopes in Iran

Crude oil futures traded lower on Thursday morning, following signs of diplomatic efforts to resolve the conflict in West Asia. At 10 am on Thursday, Brent oil futures for November were at $86.59, down by 0.40 per cent, and October crude oil futures on WTI (West Texas Intermediate) were at $81.89, down 0.41 per cent. September crude oil futures were trading at ₹7838 on Multi Commodity Exchange (MCX) during the initial hour of trading on Thursday against the previous close of ₹7897, down by 0.75 per cent, and October futures were trading at ₹7735 against the previous close of ₹7794, down 0.76 per cent.

A report said that Qatari Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani will discuss the continuation of Qatar's mediation efforts and other developments in the region during his visit to Tehran on Thursday. Sheikh Mohammed would also address freedom of navigation in the Strait of Hormuz and the need to return to the status quo before February 28, the report said. Quoting an unnamed Iranian are working on finalising details of an agreement to control the Strait of Hormuz, after Iran's Revolutionary Guards said the two countries had agreed how to share the waterway.

Meanwhile, the weekly petroleum status report released by the US EIA (Energy Information Administration) showed a marginal increase in crude oil inventories. According to EIA, US commercial crude oil inventories increased by 0.1 million barrels for the week ending August 21. At 428.9 million barrels, US crude oil inventories were 1 per cent above the five-year average for this time of year. Total motor gasoline inventories decreased by 2.5 million barrels last week and were 6 per cent below the five-year average for this time of year.

Distillate fuel inventories decreased by 2.2 million barrels last week and were about 14 per cent below the five-year average for this time of year. Total products down by 3 per cent from the same period last year. Over the past four weeks, motor gasoline product last year.

Distillate fuel product ent from the same period last year. Jet fuel product September zinc futures were trading at ₹418.40 on MCX during the initial hour of trading on Thursday against the previous close of ₹413.80, up by 1.11 per cent. On the National Commodities and Derivatives Exchange (NCDEX), October turmeric (farmer polished) contracts were trading at ₹19172 in the first hour of trading on Thursday, down 1.45 per cent from the previous close of ₹19454. September guargum futures were trading at ₹11940 on NCDEX in the initial hour of trading on Thursday, down 0.78 per cent from the previous close of ₹12034.