Oil and oilseed futures up ahead of OPEC meet
Oil & oilseed futures are trading positively on speculation that OPEC may raise crude oil production by five lakh barrel a day.
By PTI |
MUMBAI: Oil and oilseed futures are trading positively on speculation that the Organization of the Petroleum Exporting Countries (OPEC) may raise crude oil production by five lakh barrel per day, experts said on Tuesday.
Ahead of OPEC meeting, which is scheduled for tomorrow, prices of oil and oilseed are slightly under pressure, marketmen added.
"Oil and oilseed futures are trading slightly to a range -bound level as the market is waiting for tomorrow's meeting ...," Karvy Comtrade analyst Vireesh Hiremath said.
While some marketmen are anticipating that OPEC might increase the output by five lakh barrel per day, there are others who think that the oil cartel may not take any major decisions tomorrow.
Religare Commodities analyst Hanish Sinha said: "Prices of oil and oilseeds are trading at range bound levels only because of OPEC's meeting which is scheduled tomorrow. We do not think OPEC would take any major decisions on increasing crude oil output. We see crude oil to stabalise at 84 dollar per barrel."
At NCDEX, the active January 2008 contract of soyabean refined soy oil and RM seed are seeing positive trend.
Soybean is up by Rs 5 at Rs 1,801 per ton, refined soya oil (RSO) is up by Rs 2 at Rs 539.70 per ton and RM seed is up by Rs 3 at Rs 486.10 per ton.
The January 2008 future contract of RSO at MCX also moved up by Rs 2 at 538.60 per ton.
At Chicago Board of Trade (CBoT), January 2008 futures has shot up marginally by 0.46 per cent at 1,083.75 cents per bushel and soya oil is also showing a rise of 0.09 per cent at 45.88 cents per pound.
Even crude palm oil at Bursa Malaysia Derivatives has jumped over 1 per cent to 2,949 ringgit per tonne.
Oil and oilseed complex share a co-relation of more than 60 per cent with crude oil prices. Any significant development with respect to crude oil is likely to reflect on the other products.
Crude oil fell by 12 per cent to 87.14 dollars per barrel yesterday from the record high 99.29 dollar per barrel on November 21. However, it is trading up by 0.8 per cent to 89.98 dollar a barrel today.
Market experts said the upward movement in the oil and oilseed prices are for a short period. It would take a negative note after the meeting.
Ahead of OPEC meeting, which is scheduled for tomorrow, prices of oil and oilseed are slightly under pressure, marketmen added.
"Oil and oilseed futures are trading slightly to a range -bound level as the market is waiting for tomorrow's meeting ...," Karvy Comtrade analyst Vireesh Hiremath said.
While some marketmen are anticipating that OPEC might increase the output by five lakh barrel per day, there are others who think that the oil cartel may not take any major decisions tomorrow.
Religare Commodities analyst Hanish Sinha said: "Prices of oil and oilseeds are trading at range bound levels only because of OPEC's meeting which is scheduled tomorrow. We do not think OPEC would take any major decisions on increasing crude oil output. We see crude oil to stabalise at 84 dollar per barrel."
At NCDEX, the active January 2008 contract of soyabean refined soy oil and RM seed are seeing positive trend.
ADVERTISEMENT
Soybean is up by Rs 5 at Rs 1,801 per ton, refined soya oil (RSO) is up by Rs 2 at Rs 539.70 per ton and RM seed is up by Rs 3 at Rs 486.10 per ton.
The January 2008 future contract of RSO at MCX also moved up by Rs 2 at 538.60 per ton.
At Chicago Board of Trade (CBoT), January 2008 futures has shot up marginally by 0.46 per cent at 1,083.75 cents per bushel and soya oil is also showing a rise of 0.09 per cent at 45.88 cents per pound.
Even crude palm oil at Bursa Malaysia Derivatives has jumped over 1 per cent to 2,949 ringgit per tonne.
ADVERTISEMENT
Oil and oilseed complex share a co-relation of more than 60 per cent with crude oil prices. Any significant development with respect to crude oil is likely to reflect on the other products.
Crude oil fell by 12 per cent to 87.14 dollars per barrel yesterday from the record high 99.29 dollar per barrel on November 21. However, it is trading up by 0.8 per cent to 89.98 dollar a barrel today.
ADVERTISEMENT
Market experts said the upward movement in the oil and oilseed prices are for a short period. It would take a negative note after the meeting.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
