Crude oil futures traded higher on Monday morning following the decision of the OPEC (Organization of Petroleum Exporting Countries) and its allies, known as OPEC+, to maintain the production of crude oil at the current level.
At 10 am on Monday, February Brent oil futures were at $86.28, up by 0.83 per cent, and January crude oil futures on WTI were at $80.68, up by 0.88 per cent.
December crude oil futures were trading at ₹6,594 on Multi Commodity Exchange (MCX) in the initial trading hour of Monday morning against the previous close of ₹6,548, up by 0.70 per cent, and January futures were trading at ₹6,630 as against the previous close of ₹6,581, up by 0.74 per cent.
OPEC+, which met on December 4, took stock of the developments in the global market and decided to maintain its existing policy of reducing oil output by 2 million barrels a day.
Cap on Russian oil
Market was expecting this decision as some of the major oil-producing nations in the OPEC+ wanted to see the impact of a ban on Russian oil by the European Union. OPEC+ also wanted to see the impact of the $60 a barrel price cap on the Russian oil imports by the G7 nations. Russia has threatened to cut the supply to those nations that follow the price cap.
Another factor that boosted the crude oil markets was China’s decision to relax Covid-related restrictions in some regions.
The market felt that such relaxation would help boost economic activities in China boosting the demand for crude oil. China is a major consumer of crude oil, and the recent Covid-related restrictions in that country had affected the economy of the nation.
Jeera flares up, guarseed cools
December natural gas futures were trading at ₹481.80 on MCX in the initial trading hour of Monday morning against the previous close of ₹523.90, down by 8.04 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), December jeera contracts were trading at ₹25,560 in the initial trading hour of Monday morning against the previous close of ₹25,120, up by 1.75 per cent.
December guarseed futures were trading at ₹5,920 on NCDEX in the initial trading hour of Monday morning against the previous close of ₹5,965, down by 0.75 per cent.