Crude oil futures traded higher on Tuesday morning after Brent crude hit a low of $82.31 on Monday following a media report that the oil cartel, OPEC+, was mulling to increase production.

At 10.01 am on Tuesday, January Brent oil futures were at $87.87, up by 0.48 per cent, and January crude oil futures on WTI were at $80.33, up by 0.36 per cent.

December crude oil futures were trading at ₹6,600 on Multi Commodity Exchange (MCX) in the initial trading hour of Tuesday morning against the previous close of ₹6,581, up by 0.29 per cent; and January futures were trading at ₹6,614 against the previous close of ₹6,599, up by 0.23 per cent.

The benchmark Brent crude had declined to $82.31 on Monday following a report in the  Wall Street Journal that the Organisation of Petroleum Exporting Countries and its allies, known as OPEC+, were considering increasing the production of crude oil. The report said the December 4 meeting of the OPEC+ is likely to discuss this issue.

No discussions at meet

However, the prices bounced back quickly after the Saudi Arabian news agency SPA denied the report. It quoted Saudi Arabian energy minister as saying that it is sticking with output cuts and not discussing a potential oil output increase with other OPEC oil producers.

Reports quoting the Saudi Arabian Energy Minister said the OPEC+ will commit to its 2 million barrel a day supply cut till end-2023, and it is also ready to support prices with more cuts.

Though this statement helped boost the prices of crude oil on Tuesday morning, concerns over the increase in the number of Covid-19 cases in China and a likely recession in the US limited further increases in the price of the commodity.

Cottonseed oil cake gains, guarseed slips

December natural gas futures were trading at ₹578.30 on MCX in the initial trading hour of Tuesday morning against the previous close of ₹586.90, down by 1.47 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), December cottonseed oilcake contracts were trading at ₹2,690 in the initial trading hour of Tuesday morning against the previous close of ₹2,669, up by 0.79 per cent.

December guarseed futures were trading at ₹6,090 on NCDEX in the initial trading hour of Tuesday morning against the previous close of ₹6,357, down by 4.20 per cent.

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