Crude oil futures traded higher on Friday ahead of the OPEC members (Organization of the Petroleum Exporting Countries) meeting and its allies, known as OPEC+, on September 5. Market players feel that there could be a probability that decision would be taken on production cut to arrest declining prices.
At 10.02 am on Friday, the November Brent oil futures were at $94.12, up by 1.91 per cent, and October crude oil futures on WTI were at $88.36, up by 2.02 per cent.
The September crude oil futures were trading at ₹7,068 on Multi Commodity Exchange (MCX) in the early trade against the previous close of ₹6,927, up by 2.04 per cent; and October futures were trading at ₹7,057 as against the previous close of ₹6,926, up by 1.89 per cent.
This proposal comes at a time when some of the OPEC+ members were not able to reach the allotted production target.
Any production cut will impact the crude oil prices with tight supplies globally.
In China, Chengdu metropolis has announced a lockdown as it reported 157 Covid infections following which a mass testing was announced.
According to reports, Chengdu is the largest Chinese city to be locked down since Shanghai in April and May.
Other cities such as Shenzhen and Dalian have imposed some Covid curbs to control the spread of the disease.
China is a major consumer of crude oil, and Covid-related lockdowns could impact the demand for the commodity in that market.
Guarseed dips
September natural gas futures were trading at ₹734 on MCX in the initial trade against the previous close of ₹740.70, down by 0.90 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), September cottonseed oilcake contracts were trading at ₹2,775 in the initial trading on Friday against the previous close of ₹2804, down by 1.03 per cent.
September guarseed futures were trading at ₹4,888 on NCDEX against the previous close of ₹4,933, down by 0.91 per cent.