Crude Oil Values Register Decrease Amid Heightened Focus on Upcoming US Inflation Data

Crude oil futures displayed a slight downward trend on the morning of Thursday, influenced by the anticipation surrounding the imminent release of US inflation data. Simultaneously, the United States experienced a rise in crude oil inventories for the week concluding on August 4.

As the clock ticked to 9:54 am on Thursday, the market observed October Brent oil futures at $87.44, registering a nominal decline of 0.13 percent. Similarly, September crude oil futures for WTI (West Texas Intermediate) stood at $84.33, reflecting a minor dip of 0.08 percent.

During the initial trading phase, August crude oil futures on the Multi Commodity Exchange (MCX) were traded at $84.4, showing an increase of 0.75 percent from the previous closing rate of $83.92. Correspondingly, September futures were being traded at $84.63, a 0.64 percent upturn from the previous close of $83.13.

Market analysts anticipate the release of robust US inflation data later in the day. The possibility of an elevated inflation rate could lend further impetus to the US Federal Reserve's inclination to uphold a hawkish stance. Speculation within the market suggests that such a stance could potentially influence the broader economy and consequently impact the demand dynamics for commodities such as crude oil.

In parallel, the weekly petroleum status report by the US Energy Information Administration (EIA) unveiled an augmentation in crude oil inventories for the week culminating on August 4. The commercial crude oil inventories in the US, excluding those within the strategic petroleum reserve, exhibited an increase of 5.9 million barrels compared to the preceding week.

Conversely, the collective motor gasoline inventories underwent a reduction of 2.7 million barrels compared to the previous week's records. This reduction placed the inventories approximately 7 percent below the five-year average for the corresponding period of the year.

Reflecting upon the broader consumption trends, the aggregate products supplied over the preceding four-week duration recorded an average of 20.7 million barrels per day. This figure manifested an upward trajectory of 2.9 percent in comparison to the equivalent period from the previous year.

About Crude Oil: Crude oil comprises a blend of liquid hydrocarbons, which are chemical compounds primarily composed of hydrogen and carbon atoms. Additionally, traces of nitrogen, sulfur, and oxygen are present within this mixture. These elements give rise to a diverse array of intricate molecular configurations, some of which remain challenging to distinctly identify. Despite these variations, the carbon content in crude oil typically ranges from 82 to 87 percent by weight, accompanied by a hydrogen content of 12 to 15 percent by weight. Distinguishing characteristics of crude oils commonly stem from the dominant hydrocarbon compound type they exhibit. These types include paraffins, naphthenes, and aromatics.