Crude oil futures saw modest gains on Tuesday morning, with traders closely anticipating the OPEC+ meeting scheduled for December 5.
As of 9:54 AM, February Brent crude oil futures rose by 0.15%, reaching $71.94, while January West Texas Intermediate (WTI) futures climbed 0.12% to $68.18.
In India, December crude oil futures on the Multi Commodity Exchange (MCX) were trading at ₹5791, a 0.21% increase from the previous close of ₹5779, while January futures were up by 0.22%, also priced at ₹5791.
The OPEC+ group, comprising the Organization of the Petroleum Exporting Countries (OPEC) and its allies, is set to discuss market policies for 2025 during the upcoming meeting. Market reports suggest the group may delay any production output increases due to ongoing weakness in oil prices and concerns over declining demand for the commodity.
Despite recent positive manufacturing data from China, which raised hopes for a rebound in oil demand, analysts believe that China will need to announce additional stimulus measures to further stimulate its economy.
The crude oil market has also been impacted by political developments, including comments from U.S. President-elect Donald Trump about imposing tariffs on BRICS nations. The strengthening U.S. dollar following his remarks has contributed to higher oil prices.
In addition, tensions in West Asia have added uncertainty to the oil market. Reports of ceasefire violations between Israel and Hezbollah, following a peace deal brokered by the U.S. and France, have raised concerns about potential disruptions to crude oil supplies from the region.
Other commodity markets showed mixed results on Tuesday. Zinc futures for December were down by 0.40%, trading at ₹284.50 on MCX, while castorseed contracts on the National Commodities and Derivatives Exchange (NCDEX) rose 0.31%, priced at ₹6540. Guargum futures for December on NCDEX saw a slight decline, down 0.27% at ₹9983.
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