Home Commodities Crude oil up as OPEC keeps output policy unchanged

Crude oil up as OPEC keeps output policy unchanged

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Crude oil futures traded higher on Friday morning as OPEC (Organization of the Petroleum Exporting Countries) and its allies, known as OPEC+, decided to keep its production output policy unchanged.

At 9.53 am on Friday, April Brent oil futures were at $79.10, up by 0.51 per cent, and March crude oil futures on WTI (West Texas Intermediate) were at $74.14, up by 0.43 per cent.

February crude oil futures were trading at ₹6,157 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹6,06, down by 0.79 per cent; and March futures were trading at ₹6,179 as against the previous close of ₹6,204, down by 0.40 per cent.

2.2 million barrels cut

A Reuters report quoting OPEC+ sources said production output cuts will be reviewed in March and an announcement will be made when they are up for renewal as has been customary with OPEC+ voluntary cuts so far.

OPEC+ had agreed for voluntary output cuts in November. This voluntary output cuts totalled around 2.2 million barrels a day for the first quarter of 2024. Of the voluntary output cuts, Saudi Arabia’s share was around 1 million barrels a day.

Reuters report said Algeria, which is an OPEC+ member, is ready to carry on with its voluntary cut beyond March, if needed. Kuwait said it is committed to the curbs.

Some market reports indicated at a potential ceasefire between Israel and Hamas. However, there were also reports of denial of any ceasefire by an official from Qatar.

Market reports said that a ceasefire in Middle East region could bring down the attacks on merchant vessels by Houthis in the Red Sea route.

Turmeric, kapas shine

February natural gas futures were trading at ₹172.60 on MCX against the previous close of ₹171.30, up by 0.76 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), April turmeric (farmer polished) contracts were trading at ₹14,798 against the previous close of ₹14,568, up by 1.58 per cent.

April kapas (unprocessed cotton) futures were trading at ₹1,484 on NCDEX against the previous close of ₹1,477.50, up by 0.44 per cent.

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