Crude oil futures traded marginally higher on Monday morning as the April Oil Market Report of the International Energy Agency (IEA) indicated a tightening of global supplies in 2023.
At 9.56 am on Monday, June Brent oil futures were at $86.35, up by 0.05 per cent, and June crude oil futures on WTI were at $82.45, up by 0.02 per cent.
April crude oil futures were trading at ₹6,764 on the Multi Commodity Exchange (MCX) during initial trading, against the previous close of ₹6,767, down by 0.04 per cent, and May futures were trading at ₹6,771, as against the previous close of ₹6,770, up by 0.01 per cent.
Prices may spike
The IEA report, which was released on Friday, said global oil demand would increase by 2 million barrels a day in 2023 to a record 101.9 million barrels a day.
The recent surprise production cut announced by OPEC (Organisation of the Petroleum Exporting Countries) and its allies, a group known as OPEC+, would lead to a further tightening of the crude oil market. It was also of the opinion that this may push oil prices higher.
The market is awaiting China’s first quarter GDP data, which is expected this week. Economic growth is expected to bounce back after the removal of Covid-related restrictions in that country.
April natural gas futures were trading at ₹178.40 on the MCX during initial trading, against the previous close of ₹172.90, up by 3.18 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), April guar gum contracts were trading at ₹11,420 during initial trading, against the previous close of ₹11,267, up by 1.36 per cent.
April jeera futures were trading at ₹40,505 on NCDEX during initial trading, against the previous close of ₹41,369, down by 2.07 per cent.