Crude oil traded higher on Friday morning as Saudi Arabia and Russia discussed the plans of OPEC (Organization of Petroleum Exporting Countries) and its allies, commonly known as OPEC+, to maintain balance in the crude oil market.
At 9.51 am on Friday, May Brent oil futures were at $75.52, up by 1.10 per cent, and April crude oil futures on WTI were at $69.12, up by 1.13 per cent.
March crude oil futures were trading at ₹5,706 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹5,695, up by 0.19 per cent, and April futures were trading at ₹5,757 against the previous close of ₹5,748, up by 0.16 per cent.
Discussing next move
Market reports said the Energy Minister of Saudi Arabia, Prince Abdulaziz bin Salman, and the Russian Deputy Prime Minister, Alexander Novak, discussed the measures of the OPEC+ to maintain the balance in the market.
This meeting assumes significance due to the proposed meeting of the OPEC+ next month. Though the next policy meeting of OPEC is scheduled for June, an advisory panel of some ministers from OPEC+ will meet on April 3.
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OPEC+ reduced its output target by 2 million barrels a day in its November meeting. This has been the largest output cut by OPEC+ since Covid pandemic. The meeting had then decided to maintain this reduction in output for 2023.
Crude oil prices fell sharply in the last few sessions due to the failure of a few banks in the US. However, the intervention by the governments in the US and Europe avoided the immediate collapse of the banking system in these regions.
However, there are apprehensions in the market over a slowdown in the economy impacting the demand for crude oil.
Dhaniya, jeera sizzle
March zinc futures were trading at ₹258.20 on MCX during initial trading against the previous close of ₹255.40, up by 1.10 per cent.
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On the National Commodities and Derivatives Exchange (NCDEX), April dhaniyacontracts were trading at ₹6,928 against the previous close of ₹6,846, up by 1.20 per cent.
April jeera futures were trading at ₹32,725 on NCDEX against the previous close of ₹32,140, up by 1.82 per cent.