Crude oil futures were up by more than 2 per cent on Monday morning following the market forecasts of a more than 1 million barrel a day production cut by OPEC (Organization of Petroleum Exporting Countries) and its allies, known as OPEC+, this week.
At 10 am on Monday, December Brent oil futures were at $87.33, up by 2.57 per cent, and November crude oil futures on WTI were at $81.65, up by 2.72 per cent.
October crude oil futures were trading at ₹6,696 on Multi Commodity Exchange (MCX) in the initial trading hour of Monday morning against the previous close of ₹6,539, up by 2.40 per cent; and November futures were trading at ₹6,669 as against the previous close of ₹6,530, up by 2.13 per cent.
Russian pressure
OPEC+, which will meet in Vienna on October 5, is likely to take a final decision on the production cut. Quoting sources, a Reuters report said OPEC+ is planning to announce a production output cut of 1 million barrels a day in its October 5 meeting.
Recently, there were reports of Russia, a member of OPEC+, pushing for an output cut of 1 million barrels a day to stabilise the market. The September meeting of OPEC+ had announced the output cut of 100,000 barrels a day.
If announced, the 1 million barrels a day cut will be the biggest output cut by the oil cartel since the height of the Covid-19 pandemic in 2020. Any move to reduce production output by OPEC+ may not go well with the US and other consumers that are pushing for a production increase to control inflationary pressures in their economies.
Jeera, dhaniya slip
October natural gas futures were trading at ₹548.60 on MCX in the initial trading hour of Monday morning against the previous close of ₹560.90, down by 2.19 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), October dhaniya contracts were trading at ₹10,840 in the initial trading hour of Monday morning against the previous close of ₹10,976, down by 1.24 per cent.
October jeera futures were trading at ₹24,440 on NCDEX in the initial trading hour of Monday morning against the previous close of ₹24,585, down by 0.59 per cent.
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