Crude oil futures gain on spot demand
Crude oil futures gain on spot demand
Crude oil prices on Monday rose Rs89 to Rs5,523 per barrel in futures trade supported by fresh positions from traders.
On the Multi Commodity Exchange, crude oil for October delivery traded higher Rs89 or 1.64 per cent at Rs5,523 per barrel in 4,234 lots.
According to market experts, snapping the three-day losing streak, the WTI edged higher on Monday amid reports that the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) agreed over the weekend to raise output at a slower pace from October on expectations of weaker global demand.
They said “the escalating tensions between Russia and Ukraine have also boosted crude oil prices.” Traders are awaiting the American Petroleum Institute weekly crude oil report, which will be released on Tuesday.
“If the data shows an unexpected rise in crude inventories, this could indicate weaker demand and might weigh on the crude oil prices,” an expert said. Globally, West Texas Intermediate crude was trading 1.21 per cent higher at USD 62.62 per barrel while Brent crude rose 1.22 per cent to USD 66.30 per barrel in New York.
