Crude oil futures traded lower on Thursday morning following reports of a likely production hike by the Organization of Petroleum Exporting Countries and its allies (OPEC+).
At 9.55 am on Thursday, November Brent oil futures were at $67.17, down by 0.64 per cent, and October crude oil futures on WTI (West Texas Intermediate) were at $63.53, down by 0.69 per cent. September crude oil futures were trading at ₹5,600 on during the initial hour of trading on Thursday against the previous close of ₹5,634, down by 0.60 per cent, and October futures were trading at ₹5,584 against the previous close of ₹5,619, down by 0.62 per cent.
Citing two unnamed sources, a Reuters report said on Wednesday that OPEC+ will consider further increases to production in October at a meeting on Sunday, as the group seeks to regain market share. OPEC+ had already agreed to raise output targets by about 2.2 million barrels per day from April to September, in addition to a 3,00,000 barrels per day quota increase for the United Arab Emirates, it said.
Another output boost would mean OPEC+, which pumps about half of the world’s oil, would be starting to unwind a second layer of cuts of about 1.65 million barrels per day, or 1.6 per cent of world demand, more than a year ahead of schedule, the report said.
Citing another unnamed source and some analysts, the Reuters report said OPEC+ could pause the increases for October. A final decision has not been made, it said quoting the OPEC+ source.
Added to this, the latest data by the industry body American Petroleum Institute (API) indicated an increase in US crude oil inventories for the week ending August 29.
According to API, crude oil inventories increased by 0.62 million barrels for the week ending August 29. Market was expecting a decline of 3.4 million barrels during the period. Official data from the US EIA (Energy Information Administration) is expected later on Thursday.
September menthaoil futures were trading at ₹999 on MCX during the initial hour of trading on Thursday against the previous close of ₹970.60, up by 2.93 per cent.
On the , September cottonseed oilcake contracts were trading at ₹3,426 in the initial hour of trading on Thursday against the previous close of ₹3,416, up by 0.29 per cent.
September guargum futures were trading at ₹9,262 on NCDEX in the initial hour of trading on Thursday against the previous close of ₹9,318, down by 0.60 per cent.