Crude oil futures traded higher on Tuesday morning as the supply outlook remained tight amidst concerns over a slowdown in several economies across the world.
At 10 am on Tuesday, January Brent oil futures were at $93.56, up by 0.81 per cent, and December crude oil futures on WTI were at $87.12, up by 0.68 per cent.
November crude oil futures were trading at ₹7,219 on the Multi Commodity Exchange (MCX) in the initial trading hour of Tuesday morning, against the previous close of ₹7,101, up by 1.66 per cent, and December futures were trading at ₹7,163, as against the previous close of ₹7,040, up by 1.75 per cent.
Robust increase
As announced by the OPEC (Organisation of Petroleum Exporting Countries) and its allies, known as OPEC+, early in October, the 2 million barrels a day production cut begins from this month. This comes at a time when the market faces a tight supply situation.
Meanwhile, OPEC, which has released the World Oil Outlook 2022, said medium-term oil demand is projected to grow to almost 107 million barrels a day by 2027, representing a robust increase of 10 million barrels a day, compared to 2021. It said more than 5 million barrels a day will be realised in the period to 2024.
The market is also concerned over the slowdown in some economies as central banks in some countries are looking to increase interest rates to control inflation. The market fears that such interest rate hikes may impact the demand for crude oil.
Cotton, dhaniya gain
November cotton futures were trading at ₹29,000 on MCX in the initial trading hour of Tuesday morning, against the previous close of ₹28,600, up by 1.40 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), April kapas contracts were trading at ₹1,541 in the initial trading hour of Tuesday morning, against the previous close of ₹1,532, up by 0.59 per cent.
November dhaniya futures were trading at ₹11,048 on NCDEX in the initial trading hour of Tuesday morning, against the previous close of ₹11,002, up by 0.42 per cent.