Crude oil traded lower on Friday morning following conflicting views expressed by Russia and Saudi Arabia in the energy commodities market.
At 9.52 am on Friday, July Brent oil futures were at $75.99, down by 0.35 per cent, and July crude oil futures on WTI were at $71.71, down by 0.17 per cent.
June crude oil futures were trading at ₹5,947 on Multi Commodity Exchange (MCX) in the initial trading hour of Friday morning against the previous close of ₹5,946, up by 0.02 per cent, and July futures were trading at ₹5,978 as against the previous close of ₹5,977, up by 0.02 per cent.
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Crucial Vienna June 4 meet
Quoting the Deputy Prime Minister of Russia, Alexander Novak, Russian media reported that OPEC (Organization of the Petroleum Exporting Countries) and its allies, known as OPEC+, are unlikely to announce new steps on oil production output cut at its Vienna meeting on June 4.
He attributed the reasons such as high-interest rates in the US and a slow economic recovery in China. (US and China are the major consumers of crude oil).
Saudi Arabia and other OPEC producers announced a surprise production cut in April to arrest a fall in the price of crude oil in the global markets.
However, the Russian Deputy Prime Minister’s statement contradicted the recent statement by the Saudi Arabian Energy Minister Prince Abdulaziz bin Salman.
While addressing the Qatar Economic Forum in Doha this week, the Energy Minister of Saudi Arabia said: “Speculators, like in any market they are there to stay, I keep advising them that they will be touching, they did touch in April, I don’t have to show my cards, I’m not a poker player... but I would just tell them to watch out.”
The market had taken this statement as a hint towards a further production cut by OPEC+ in the coming days.
US Closing in on debt ceiling deal
Russia and Saudi Arabia are the major producers of crude oil in the global market, and the views of these nations play a major role in the crude oil market movements.
Meanwhile, a Reuters report quoting a US official said that US President Joe Biden and top congressional Republican Kevin McCarthy are closing in on a deal to increase the US debt ceiling.
The market was expecting a slowdown in the US economy if the US failed to raise the debt ceiling. Any slowdown in the economy would impact the price of the commodities such as crude oil.
Turmeric, and guar gum trade lower
June zinc futures were trading at ₹208.90 on MCX in the initial trading hour of Friday morning against the previous close of ₹206.25, up by 1.28 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June guar gum contracts were trading at ₹10,450 in the initial trading hour of Friday morning against the previous close of ₹10,669, down by 2.05 per cent.
June turmeric (farmer polished) futures were trading at ₹8,034 on NCDEX in the initial trading hour of Friday morning against the previous close of ₹8148, down by 1.40 per cent.