Crude oil up as OPEC keeps output policy unchanged
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.
