Crude oil futures traded lower on Tuesday morning as the market awaited the release of minutes of the meeting of the US Federal Reserve. This is amidst speculation of further production cuts by some members of OPEC (Organisation of the Petroleum Exporting Countries) in the coming days.
At 9.52 am on Tuesday, January Brent oil futures were at $81.92, down by 0.49 per cent, and January crude oil futures on WTI (West Texas Intermediate) were at $77.47, down by 0.46 per cent.
December crude oil futures were trading at ₹6,471 on the Multi Commodity Exchange (MCX) in the initial trading hour of Tuesday morning, against the previous close of ₹6,543, down by 1.10 per cent; and January futures were trading at ₹6,494, as against the previous close of ₹6,550, down by 0.85 per cent.
Signs of economic slowdown
Minutes of the meeting of the US Federal Reserve are expected to be released later on Tuesday. Earlier this month, the US Federal Reserve had kept the rates unchanged. Market players feel that the Fed is done with hiking interest rates and it may begin cutting rates by the first quarter of 2024. Minutes of the meeting will give a clear picture on this.
Meanwhile, signals of economic slowdown in the US next year has also kept market players on edge as they feel such a development could impact the demand for commodities such as crude oil.
The market is also awaiting the outcome of the meeting of OPEC (Organisation of the Petroleum Exporting Countries) and its allies, known as OPEC+, which is scheduled for November 26. Some market reports indicate that some major producers could announce additional production cuts considering the current situation in the market.
OPEC+ members such as Saudi Arabia and Russia have already extended their production output cuts till December-end. Market players feel that they could extend the production cuts in 2024 also.
The market is also awaiting release of the crude oil inventory data from the American Petroleum Institute (API) later in the day. The last two data releases had shown an increase in inventories in the US.
Dhaniya gains, turmeric slips
November lead futures were trading at ₹189.85 on MCX in the initial trading hour of Tuesday morning, against the previous close of ₹190.80, down by 0.50 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), December dhaniya contracts were trading at ₹8,188 in the initial trading hour of Tuesday morning, against the previous close of ₹8,156, up by 0.39 per cent.
December turmeric (farmer polished) futures were trading at ₹12,450 on NCDEX in the initial trading hour of Tuesday morning, against the previous close of ₹12,496, down by 0.37 per cent.