Crude oil futures traded higher on Tuesday morning as Saudi Arabia decided to extend its voluntary production output cut to August also, and Russia decided to reduce its export in August.
At 9.53 am on Tuesday, September Brent oil futures were at $75.11, up by 0.62 per cent, and August crude oil futures on WTI (West Texas Intermediate) were at $70.25, up by 0.66 per cent.
July crude oil futures were trading at ₹5,773 on Multi Commodity Exchange (MCX) during the initial trading against the previous close of ₹5,753, up by 0.35 per cent, and August futures were trading at ₹5,806 as against the previous close of ₹5,787, up by 0.33 per cent.
Total production cut
Saudi Arabia, which is a major producer of crude oil, on Monday said it would extend its voluntary production output cut by 1 million barrels a day for August also.
Meanwhile, the Deputy Prime Minister of Russia, Alexander Novak, said his country will bring down its oil exports by 5,00,000 barrels a day in August.
Following this, Algeria said it would also cut the output by an extra 20,000 barrels a day in August. This output cut will be in addition to a 48,000 barrels a day cut announced in April.]
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With these announcements, the production output cuts by the members of OPEC (Organisation of Petroleum Exporting Countries) and its allies, known as OPEC+, will amount to 5.16 million barrels a day. These oil producers are resorting to output cuts to boost the price of the commodity in the global market.
In its efforts to boost the price of crude oil in the global market, the OPEC+ had cut production output twice in 2023. However, these announcements did not provide much support as markets were concerned over the global economic slowdown.
Jeera gains, turmeric dips
July menthaoil futures were trading at ₹902.90 on MCX against the previous close of ₹905.10, down by 0.24 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), July jeera contracts were trading at ₹54,000 against the previous close of ₹53,115, up by 1.67 per cent.
August turmeric (farmer polished) futures were trading at ₹9,920 on NCDEX in the initial trading hour of Tuesday morning against the previous close of ₹10,006, down by 0.86 per cent.