futures traded lower on Tuesday morning amid reports that (Organization of Petroleum Exporting Countries and allies) may increase production in December.
At 9.59 am on Tuesday, January Brent oil futures were at $64.76, down by 0.22 per cent, and December crude oil futures on WTI (West Texas Intermediate) were at $61.17, down by 0.23 per cent.
A Reuters report, which cited four unnamed sources, said OPEC+ is leaning towards a modest output boost in December, as the group pushes on with monthly increases aimed at clawing back its market share.
Citing two of the four sources, the report said the eight OPEC+ members are likely to agree on Sunday to increase December output targets by another 1,37,000 barrels per day. It said the other two sources gave no estimate.
In their Commodities Feed for Tuesday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said the initial positive sentiment around US-China trade talks faded as the oil market progressed through Monday’s trading session, with ICE Brent settling almost 0.5 per cent lower. Meanwhile, the market continues to digest the impact of US sanctions on Russian oil flows on Rosneft and Lukoil. And for now, a comfortable supply outlook continues to support the market, they said.
Stating that the latest sanctions on Russia threaten diesel flows as it exports around 1 million barrels a day of diesel, they said a significant amount of supply is at risk.
“Furthermore, there is also the risk that Indian refiners reduce run rates if they stop buying Russian oil. This would lead to lower middle distillate export volumes from India. In addition, the Ukrainian president has said that Ukraine will increase the scale of attacks on Russian refineries, posing further supply risks to the middle distillate market. There have been concerns about tightness in the middle distillate market for several months now, and the potential impact of these sanctions will do little to ease them,” they said.
On the , December turmeric (farmer polished) contracts were trading at ₹15,110 in the initial hour of trading on Tuesday against the previous close of ₹14,530; up by 3.99 per cent.
November jeera futures were trading at ₹20,350 on NCDEX in the initial hour of trading on Tuesday against the previous close of ₹20,190; up by 0.79 per cent.