Crudeoil futures traded higher on Thursday morning following talks between Saudi Arabia and Russia on cooperation on oil prices, during Russian President Vladimir Putin’s visit to Saudi on Wednesday. Both nations are important members of OPEC (the Organisation of Petroleum Exporting Countries) and its allies, known as OPEC+.
At 9.52 am on Thursday, February Brent oil futures were at $74.65, up by 0.47 per cent; and January crude oil futures on WTI (West Texas Intermediate) were at $69.78, up by 0.58 per cent.
December crude oil futures were trading at ₹5,839 on the Multi Commodity Exchange (MCX) in the initial trading hour of Thursday morning, against the previous close of ₹5,820, up by 0.33 per cent; and January futures were trading at ₹5,900 as against the previous close of ₹5,874, up by 0.44 per cent.
An Interfax news agency report quoting Putin on his meeting with the Saudi Crown Prince Mohammed bin Salman, said: “We have stable and very good relations in the sphere of political interaction, on the economy, [and] in humanitarian areas. Naturally, it’s very important for all of us to exchange information and assessments regarding what is going on in the region.”
A Reuters report citing Russian news agencies said OPEC+ members would cooperate on crude oil production cuts as decided in a recent meeting.
A Reuters report quoting a Russian spokesperson said Putin and the Saudi Crown Prince discussed further cooperation on oil prices on Wednesday during the Russian President’s visit to Saudi Arabia.
The parties agreed that both the countries bore a responsibility to maintain the international energy market at the proper level, in a stable, predictable state, the spokesperson was quoted as saying.
The decision of OPEC+ to announce voluntary production cuts by some of its members in its November 30 meeting had impacted crude oil prices. OPEC+ had decided to go in for voluntary production cuts than distributing it among its members. Some members of OPEC+ said they would increase their production of crude oil.
In such a situation, a meeting between the two leaders of the major oil producing nations holds significance.
December menthaoil futures were trading at ₹945 on MCX in the initial trading hour of Thursday morning, against the previous close of ₹939.20, up by 0.62 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), December turmeric (farmer polished) contracts were trading at ₹12,614 in the initial trading hour of Thursday morning, against the previous close of ₹12,836, down by 1.73 per cent.
April kapas futures were trading at ₹1,567.5 on NCDEX in the initial trading hour of Thursday mornin,g against the previous close of ₹1,573, down by 0.35 per cent.