Adversitement
Crude Oil Futures Rise as OPEC+ Extends Voluntary Cuts; Middle-East Tensions Persist
Published On : 2024-03-04T15:36:41+0530 [ IST ] |
Author : Mayur_Tembhare
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Crude oil futures saw gains on Monday morning following the announcement by several members of the Organization of Petroleum Exporting Countries and allies (OPEC+) to extend additional voluntary production cuts of 2.2 million barrels per day for the second quarter of 2024. This move is aimed at bolstering the stability and balance of oil markets.
At 9:52 am, May Brent oil futures were trading at $83.69, up by 0.17 per cent, while April crude oil futures on WTI (West Texas Intermediate) stood at $79.98, up by 0.01 per cent. On the Multi Commodity Exchange (MCX), March crude oil futures were trading at ₹6,628, down by 0.15 per cent, and April futures at ₹6,590, down by 0.15 per cent from the previous close.
The extension of voluntary cuts was announced by several OPEC+ countries, including Saudi Arabia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman. These cuts will gradually be returned, subject to market conditions, to support market stability. Additionally, Russia announced a voluntary production cut of 471,000 barrels per day for the second quarter of 2024, in addition to a previous cut of 500,000 barrels per day until the end of December 2024.
Despite efforts to stabilize markets, tensions in the Middle East persist, with the Houthis threatening to target more British ships in the Gulf of Aden. This ongoing geopolitical uncertainty continues to impact the movement of commodities such as crude oil.
In other commodity markets, March natural gas futures on MCX rose to ₹157.50, up by 2.87 per cent, while March steel long contracts on the National Commodities and Derivatives Exchange (NCDEX) surged to ₹45,150, up by 5.99 per cent from the previous close. Additionally, April dhaniya futures on NCDEX were trading at ₹8,278 in the initial trading hour of Monday morning, marking a 3.14 per cent increase from the previous close.
Source : Business Line
Tags : Brent oil , WTI , crude oil futures , dhaniya , Middle-East tensions , commodities , OPEC+ , steel , natural gas , voluntary cuts ,
Summary : Crude oil futures experienced an uptick as several OPEC+ members extended voluntary production cuts, aiming to stabilize oil markets. However, tensions in the Middle East continue to influence market sentiment. Meanwhile, other commodities like natural gas, steel, and dhaniya also witnessed notable price movements.
Adversitement