Share markets in India are presently trading marginally higher. Sectoral indices are trading on a mixed note with stocks in the energy sector and telecom sector witnessing maximum buying interest. IT stocks are trading in the red.

The BSE Sensex is trading up 31 points (up 0.1%) and the NSE Nifty is trading up by 16 points (up 0.2%). The BSE Mid Cap index is trading up by 0.5%, while the BSE Small Cap index is trading up by 0.2%. The rupee is trading at 64.49 to the US$.

In the news from commodity markets, crude oil is witnessing buying interest today. Most of the gains are seen as the US government cut its crude production outlook for the next year. Also, the fall in fuel inventories aided the rally in crude oil prices.

The Energy Information Agency (EIA) cut next year’s crude production forecast for US, while US crude inventories fell by 8.1 million barrels in the week to July 7.

The U.S. Energy Information Administration said late on Tuesday that it expected 2018 crude oil output to rise to 9.9 million barrels per day (bpd) from 9.3 million bpd this year, a 570,000-bpd increase. This was down from last month’s forecast 680,000 bpd YoY increase.

While the above gains come as a welcome breather, crude oil has been witnessing losses lately on concerns regarding the rising output from OPEC.

Owing to the supply glut, crude oil prices have been remarkably silent over the last two years. Prices have remained within a tight range, rarely dropping below US$40 or rising above US$60. Volatility has crashed. And if you are trading in crude oil, it’s critical to understand why this has occurred.

To keep a tab on the movements in crude oil and other commodities, you can read the stock market commentary from the Daily Profit Hunter team. Their commentary tracks the developments in the global economy as well as stock, currency and commodity markets.