Petroleum futures traded greater on Monday early morning following Saudi Arabia’s choice to minimize the production output by one million barrels a day from July.
At 9.55 am on Monday, August Brent oil futures were at $76.99, up by 1.13 percent; and July petroleum futures on WTI were at $72.66, up by 1.28 percent.
June petroleum futures were trading at 6,004 on Multi Product Exchange (MCX) in the preliminary trading hour of Monday early morning versus the previous close of 5,916, up by 1.49 percent; and July futures were trading at 6,027 as versus the previous close of 5,941, up by 1.45 percent.
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Revealing the choice to minimize production output at the OPEC+ conference in Vienna on Sunday, the Saudi Arabian Energy Minister, Prince Abdulaziz bin Salman, stated his nation would do whatever was needed to bring stability to the marketplace. With this statement, Saudi’s oil production level will boil down to around 9 million barrels a day from July.
Saudi Arabia is a significant member of the Organisation of Petroleum Exporting Countries (OPEC) and its allies, called OPEC+. Market fears that Saudi’s choice to minimize production output would result in a tighter market in the 2nd half of 2023.
Russia, which is another significant member of OPEC+, has actually not made any dedications on the production output cuts. Nevertheless, Sunday’s conference of OPEC+ enabled United Arab Emirates (UAE) to increase production output targets for 2024.
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June menthaoil futures were trading at 941 on MCX in the preliminary trading hour of Monday early morning versus the previous close of 950.30, down by 0.98 percent.
On the National Commodities and Derivatives Exchange (NCDEX), June isabgol seed agreements were trading at 23,800 in the preliminary trading hour of Monday early morning versus the previous close of 24,000, down by 0.83 percent.
June jeera futures were trading at 45,460 on NCDEX in the preliminary trading hour of Monday early morning versus the previous close of 44,765, up by 1.55 percent.