MCX Crude Oil Slips 1% as OPEC+ Considers Output Increase

Mumbai, 08 May (commoditiesControl): MCX crude oil faced a 1% decline, trading at 6520, with short buildup observed in both May and June future contracts. WTI crude futures dipped towards $78 per barrel, nearing a two-month low, following hints from Russian Deputy Prime Minister Alexander Novak regarding a potential OPEC+ production increase.

The group of major producers, set to convene on June 1, will decide on output policy for the second half of the year. With the current supply agreement expiring at the end of June, discussions loom over the fate of around 2.2 million barrels per day removed from the market.

Meanwhile, US crude inventories defied expectations, increasing by 0.509 million barrels last week as per industry data, contrasting with a projected decline of 1.43 million barrels.MCX crude oil prices hover near the initial support of 6512, with the next target at 6435 in case of continued decline. On the upside, resistance levels stand at 6634-6684, setting the stage for potential price movements amidst market uncertainties.


(By Commoditiescontrol Bureau; +91-9820130172)