Crude oil futures traded higher on Tuesday morning as the market waits to see if the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, will extend oil production output cuts beyond June 30.

At 9.52 am on Tuesday, August Brent oil futures were at $83.10, up by 0.27 per cent, and July crude oil futures on WTI (West Texas Intermediate), were at $78.93, up by 0.48 per cent.

June crude oil futures were trading at ₹6,567 on the Multi Commodity Exchange (MCX) during initial trading on Tuesday morning, against the previous close of ₹6,547, up by 0.31 per cent, and July futures were trading at ₹6,553 against the previous close of ₹6,532, up by 0.32 per cent.

US inflation data later this week

A meeting of the OPEC+ is scheduled to be held online on June 2. Now the market is waiting to see if OPEC+ would extend the present production output cut of 2.2 million barrels a day from beyond June 30 deadline. Market players feel that further extension of production output cut for the second half of 2024, if announced, is expected to boost the price of crude oil in the global market.

In its efforts to help stabilise the price in the market, OPEC+ had announced the production output cuts last year.

Meanwhile, the market is also waiting for the release of the US inflation data, this Friday. This data, will give an idea about the future course of action of the US Federal Reserve on interest rates. Interest rates are expected to remain higher for longer, if the inflation remains above the US Fed’s target of 2 per cent.

Last week, several officials from the Federal had expressed cautions over inflation, and indicated that high inflation could bring down the chances reducing interest rates in the US.

High interest rates in the US, impact the price of the commodities, such as crude oil that are traded in dollars.

Apart from the US, the market is also waiting for the release of purchasing managers index data from China, during this week. Both US and China, are the major consumers of crude oil in the global market.

Jeera, castorseed slip

June aluminium futures were trading at ₹246 on MCX, against the previous close of ₹242.20, up by 1.57 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), June jeera contracts were trading at ₹28,425 in the initial hour of trading on Tuesday morning, against the previous close of ₹28,590, down by 0.58 per cent.

June castorseed futures, were trading at ₹5,675 on NCDEX, in the initial hour of trading on Tuesday morning against the previous close of ₹5,685, down by 0.18 per cent.

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