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Crude oil futures traded lower on Friday morning amid uncertainty over US trade tariffs after an appeals court granted temporary relief to the Trump administration.
At 9.58 am on Friday, August Brent oil futures were at $63.04, down by 0.49 per cent, and July crude oil futures on WTI (West Texas Intermediate) were at $60.65, down by 0.48 per cent. June crude oil futures were trading at ₹5,188 on Multi Commodity Exchange (MCX) during the initial hour of trading on Friday against the previous close of ₹5,215, down by 0.52 per cent, and July futures were trading at ₹5,149 against the previous close of ₹5,175, down by 0.50 per cent.
A US Federal appeals court reversed the ruling of the lower court on Thursday, temporarily reinstating tariffs imposed by US President Donald Trump. A lower court had blocked Trump’s decision to impose reciprocal tariffs. Crude oil market has been witnessing volatile moments in the past few weeks over Trump’s decision to impose reciprocal tariffs on various countries.
Market is now awaiting the outcome of the OPEC+ meeting, which is scheduled for May 31. Various market reports have indicated that the group is likely to increase the production output for July. Meanwhile, official data from the US EIA (Energy Information Administration) showed a decline in crude oil inventories in the US for the week ending May 23.
US commercial crude oil inventories decreased by 2.8 million barrels for the week ending May 23. At 440.4 million barrels, US crude oil inventories were about 6 per cent below the five-year average for this time of year. Total motor gasoline inventories decreased by 2.4 million barrels from last week and were about 3 per cent below the five-year average for this time of year.
Total products supplied in the US over the last four-week period averaged 19.9 million barrels a day, down by 0.2 per cent from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 8.9 million barrels a day, down by 1.5 per cent from the same period last year.
Distillate fuel product supplied averaged 3.7 million barrels a day over the past four weeks, down by 2.6 per cent from the same period last year. Jet fuel product supplied was up 5.3 per cent compared with the same four-week period last year.
June natural gas futures were trading at ₹301.90 on MCX during the initial hour of trading on Friday against the previous close of ₹299.40, up by 0.84 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June jeera contracts were trading at ₹20,800 in the initial hour of trading on Friday against the previous close of ₹20,680, up by 0.58 per cent.
June guargum futures were trading at ₹9,563 on NCDEX in the initial hour of trading on Thursday against the previous close of ₹9,590, down by 0.28 per cent.
Published on May 30, 2025