Crude oil futures traded higher on Tuesday morning following speculations of more output cuts by oil producing nations at their meeting on November 30.

At 9.52 am on Tuesday, February Brent oil futures were at $80.09, up by 0.28 per cent; and January crude oil futures on West Texas Intermediate (WTI) were at $75.05, up by 0.25 per cent.

December crude oil futures were trading at ₹6,274 on Multi Commodity Exchange (MCX) in the initial trading hour of Tuesday morning, against the previous close of ₹6,267, up by 0.11 per cent; and January futures were trading at ₹6,328 against the previous close of ₹6,309, up by 0.30 per cent.

The ministerial meeting of the Organisation of the Petroleum Exporting Countries and its allies, known as OPEC+, which was originally scheduled for November 26, was postponed amid reported disagreements over output cuts.

Some market reports noted that Saudi Arabia and Russia, which had led the OPEC+ bloc in cutting output during 2023, are likely to extend the cuts in the first quarter of 2024. The two countries are the major oil producers globally.

Saudi pressure

ING Think’s commodities feed for Tuesday said the oil market came under further pressure on Monday despite growing reports that Saudi Arabia is pressing the broader OPEC+ group to agree to deeper supply cuts on Thursday.

Brent settled just below $80 a barrel on Monday as the market increasingly focused on a looser oil balance early next year. The extension of additional voluntary cuts from Saudi Arabia should erase most of the surplus expected in the first quarter of 2024, it said.

“The Saudis and OPEC+ have made a habit of surprising markets in recent years when it comes to their meetings. However, with aggressive cuts already in place, it does leave one wondering the degree to which the group could surprise the market with deeper-than-expected cuts,” it said.

Natural gas

December natural gas futures were trading at ₹248.30 on MCX in the initial trading hour of Tuesday, against the previous close of ₹244.70, up by 1.47 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), December jeera contracts were trading at ₹46,150 in the initial trading hour of Tuesday, against the previous close of ₹45,040, up by 2.46 per cent.

December turmeric (farmer polished) futures were trading at ₹13,030 on NCDEX in the initial trading hour of Tuesday morning, against the previous close of ₹12,862, up by 1.31 per cent.

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