Home / Markets / Commodities /  Global oil prices surge over 2% ahead of Opec+ meet

NEW DELHI: International crude oil prices jumoed over 2% on Monday ahead of the meeting of ‘Opec+’, the alliance of the Organization of the Petroleum Exporting Countries (Opec) and other major oil producing countries.

Around 1415 IST, the Brent October on the Intercontinental Exchange was at $95.54, up 2.71% from its previous close. West Texas Intermediate futures on the NYMEX rose 2.56% to $89.09 a barrel.

Ravindra Rao, head of commodity research at Kotak Securities, said crude prices rose “as market players position for Opec+ production policy meeting today...There has been a lot of chatter about OPEC’s production cut, however the oil producer group is largely expected to keep productions steady today. Crude is also supported by concerns about Russian supply as G7 countries agreed to impose a price cap on Russian oil however major buyers India and China are not likely to join."

He added that demand concerns, given China’s covid-related restrictions, weighed on prices.

Sriram Iyer, senior research analyst at Reliance Securities, noted that clarity was yet to emerge on the potential nuclear deal and this “has made some investors sceptical that a deal was imminent, which supported oil prices".

“We expect crude oil prices to remain volatile as traders are looking forward to today’s meeting of the OPEC+, which is likely to discuss output cuts," said Rahul Kalantri, vice president for commodities with Mehta Equities.

Meanwhile, domestic retail prices of petrol and diesel have remained unchanged for days now. In the national capital, petrol sold for 96.72 per litre on Monday, and diesel was priced at 89.62 a litre.

Rituraj Baruah
Rituraj Baruah is a senior correspondent at Mint, reporting on housing, urban affairs, small businesses and energy. He has reported on diverse sectors over the last six years including, commodities and stocks market, insolvency and real estate. He has previous stints at Cogencis Information Services, Indo-Asian News Service (IANS) and Inc42.
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