Crude oil futures traded lower on Wednesday morning as the industry body American Petroleum Institute (API) indicated an increase in inventories in the US for the week ending January 24.

At 9.57 am on Wednesday, April Brent oil futures were at $76.33, down by 0.21 per cent, and March crude oil futures on WTI (West Texas Intermediate) were at $73.69, down by 0.11 per cent.

February crude oil futures were trading at ₹6,387 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of ₹6,340, up by 0.74 per cent, and March futures were trading at ₹6,336 against the previous close of ₹6,298, up by 0.60 per cent.

According to API, crude oil inventories in the US increased by 2.86 million barrels for the week ending January 24. However, official data from the US EIA (Energy Information Administration) later on Wednesday will give a clear picture on the inventory levels in the US.

Demand for crude oil has remained steady in the US, which is a major consumer for this commodity in the global market. Meanwhile, market players are anticipating crude oil production to go up in the US. Last week, the US President, Donald Trump, had declared national emergency to boost crude oil output in the US.

The White House has again said that Trump still wants to impose trade tariffs against Canada, Mexico and China by February 1. Earlier, Trump has threatened to impose 25 per cent duty on imports from Canada and Mexico, and 10 per cent duty on China.

Market is assessing the impact of such tariffs on oil market. Citing the EIA data, a Reuters report said the US imported 3.9 million barrels per day of crude oil from Canada, and 733,000 barrels a day from Mexico in 2023.

China is one of the major consumers of the crude oil in the global market. Market players feel that tariffs on China could impact the demand for the commodity from that country.

February natural gas futures were trading at ₹268 on MCX during the initial hour of trading on Wednesday against the previous close of ₹270.40, down by 0.89 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), February cottonseed oilcake contracts were trading at ₹2,695 in the initial hour of trading on Wednesday against the previous close of ₹2,682, up by 0.48 per cent.

April turmeric (farmer polished) futures were trading at ₹13,380 on NCDEX in the initial hour of trading on Wednesday against the previous close of ₹13,422, down by 0.31 per cent.

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