Crude oil futures traded lower on Monday morning despite OPEC+ deciding to extend production output cuts into 2025. At 9.55 am on Monday, August Brent oil futures were at $81.03, down by 0.10 per cent, and July crude oil futures on WTI (West Texas Intermediate) were at $76.94, down by 0.06 per cent. June crude oil futures were trading at ₹6404 on Multi Commodity Exchange (MCX) against the previous close of ₹6453, down by 0.76 per cent, and July futures were trading at ₹6397 against the previous close of ₹6450, down by 0.82 per cent. Also read: Oil producers led by Saudis face a decision on production cuts as oil prices lagThe Organization of the Petroleum Exporting Countries and allies, known as OPEC+, which met on Sunday, announced a production output cut of around 5.8 million barrels a day till 2025. This cut included 3.66 million barrels a day of voluntary cuts that were set to expire at the end of 2024. Another round of around 2.2 million barrels a day cuts till September-end were part of the 5.8 million barrels a day announcement. The production output cut of 5.8 million barrels a day constitutes around 5.7 per cent of the global oil demand.
Chinese PMI index up
While the OPEC+ decided to maintain the production output cut of 3.6 million barrels a day till the end of 2024, it also decided to phase out the 2.2 million barrels a day cut between October 2024 and September 2025. However, a press statement by OPEC+ also said, “This monthly increase can be paused or reversed subject to market conditions.” Also read: Crude Check: Struggles to Find DirectionMeanwhile, the Caixin China General Manufacturing PMI rose to 51.7 in May 2024 from 51.4 in April. Market was expecting it to be around 51.5. June natural gas futures were trading at ₹224.20 on MCX during the initial hour of trading on Monday morning against the previous close of ₹215.20, up by 4.18 per cent.SHARE
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