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Crude oil futures traded around $85 a barrel on Monday after losing around 6 per cent in the past week.
At 10.02 am, the November Brent oil futures were at $85.61, down by 0.63 per cent, and November crude oil futures on WTI were at $78.30, down by 0.56 per cent.
The October crude oil futures were trading at ₹6,428 on Multi Commodity Exchange (MCX) in early trade against the previous close of ₹6,426, up by 0.03 per cent, and November futures were trading at ₹6,428 as against the previous close of ₹6,429, down by 0.02 per cent.
A series of rate hikes to tame inflation in several economies over the past week made an impact on crude oil prices. The market feared that such rate hikes would lead to economic slowdown impacting the demand for crude oil.
OPEC likely to intervene
Given the scenario, OPEC (Organization of Petroleum Exporting Countries) and its allies, known as OPEC+, is likely to take steps to arrest fall in the prices in its next meeting scheduled early next month. This may include further reduction in the crude oil output. In its efforts to control the prices, OPEC+, which met early in September, had decided to cut the production output by 100,000 barrels a day from October, amounting to roughly 0.1 per cent of the global demand.
However, market analysts feel that the Russia’s decision to reinforce forces to intensify its fight with Ukraine would help check further fall in the prices of crude oil. Added to this, the sanction on Russia by European Union will come into affect from December. This factor would also help in checking further fall in the price.
Guar gum slips
On the National Commodities and Derivatives Exchange (NCDEX), October steel long contracts were trading at ₹49,220 in the initial trading hour of Monday morning against the previous close of ₹48,610, up by 1.25 per cent.
October guar gum futures were trading at ₹9,739 on NCDEX in the initial trading hour of Monday morning against the previous close of ₹9,995, down by 2.56 per cent.
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