With the Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, announcing an output cut of 2 million barrels a day on Wednesday, crude oil futures traded higher on global exchanges.
At 10 am on Thursday, December Brent oil futures were at $93.49, up by 0.13 per cent, and November crude oil futures on WTI were at $87.89, up by 0.15 per cent.
October crude oil futures were trading at ₹7,178 on Multi Commodity Exchange (MCX) in the initial trading hour of Thursday morning against the previous close of ₹7,165, up by 0.18 per cent; and November futures were trading at ₹7,138 as against the previous close of ₹7,127, up by 0.15 per cent.
The OPEC+ meet in Vienna decided to reduce production from November.
Drawdown in US inventories
Saudi Arabia, a major crude oil producer, said the output cut was prompted by the weakening global economy and interest rate hikes in some western nations.
However, the US, a major consumer, was not happy with this decision. Reports said the US administration would explore options with the US Congress to reduce the influence of OPEC+ on energy prices.
The petroleum status report by the US EIA (Energy Information Administration) for the week ending September 30, which was released on October 5, reported a decrease in crude oil inventories in that country. It said that US commercial crude oil inventories (excluding those in the strategic petroleum reserve) decreased by 1.4 million barrels from the previous week. At 429.2 million barrels, US crude oil inventories were about 3 per cent below the five-year average for this time of year.
US crude oil imports averaged 5.9 million barrels a day last week, a decrease of 0.5 million barrels a day from the previous week. Total products supplied in the US over the last four-week period averaged 20 million barrels a day, down by 3.8 per cent from the same period last year.
Apart from this, Russia, a major crude oil producer, also said it may temporarily reduce output in response to a US-led plan to impose a price cap on crude oil from Russia.
Guar gum, turmeric gleam
October zinc futures were trading at ₹288.10 on MCX in the initial trading hour of Thursday morning against the previous close of ₹281.35, up by 2.40 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), October guar gum contracts were trading at ₹9,372 in the initial trading hour of Thursday morning against the previous close of ₹9,213, up by 1.73 per cent.
October turmeric (farmer polished) futures were trading at ₹7,194 on NCDEX in the initial trading hour of Thursday morning against the previous close of ₹7,078, up by 1.64 per cent.