Crude oil futures traded marginally lower on Monday morning despite a tightening supply scenario in the world market with Saudi Arabia and Russia deciding to reduce production output in September also.

At 9.53 am on Monday, October Brent oil futures were at $86.14, down by 0.12 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $82.73, down by 0.11 per cent.

August crude oil futures were trading at ₹6,845 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹6,859, down by 0.20 per cent; and September futures were trading at ₹6,801 as against the previous close of ₹6,814, down by 0.19 per cent.

ALSO READ | BPCL to sell ONGC’s Mumbai Offshore crude oil

Last week, Saudi Arabia and Russia had announced their decision to reduce production output in September.

Investment banks’ view

While opting for an additional voluntary output cut of 1 million barrels a day in September, Saudi’s Energy Ministry had stated that the production output cut can be extended or extended and deepened even further.

Saudi Arabia is a major producer of crude oil in the world market. The recent announcement will bring down Saudi’s production output to around 9 million barrels a day.

Even Russia had announced last week that it would bring down crude oil exports by 3,00,000 barrels a day in September. Russia is also one of the major producers of crude oil.

These decisions of the major oil producers are leading to tightness in the crude oil supply to the global market. Following these developments, many investment banks had expressed their opinions that crude oil price may go up in the coming months.

Added to this, market reports also indicated recently that China is planning to introduce stimulus measures to boost consumption as the recent economic indicators from that country were not encouraging.

Meanwhile, the crude oil market is now waiting for the release of inflation data from China and the US during this week.

Guar gum up, turmeric down

August natural gas futures were trading at ₹214.80 on MCX against the previous close of ₹212.70, up by 0.99 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), August guar gum contracts were trading at ₹11,876 against the previous close of ₹11,409, up by 4.09 per cent.

August turmeric (farmer polished) futures were trading at ₹14,892 on NCDEX against the previous close of ₹15,120, down by 1.51 per cent.

comment COMMENT NOW