new Delhi. Saudi Arabia’s largest exporter of crude oil in the world agreed to make big cuts in production, the price of oil in the global market has increased strongly. The benchmark crude oil Brent crude price has crossed $ 54 a barrel and the DUTI also remains above $ 50 a barrel. Crude oil prices have moved higher for more than 10 months. Crude oil prices in the domestic and global markets continue to rise for the second consecutive day on Wednesday.
Crude prices rise in international market
On Wednesday, Brent crude on the international futures market Intercontinental Exchange ICE was trading 0.65 per cent higher at $ 53.95 a barrel in the March delivery contract, compared with a rise of $ 54.08 a barrel during the previous trade. Brent had gained 4.91 percent in the previous session. Earlier, the price of Brent crude was above $ 54 per barrel on 26 February 2020. At the same time, the West Texas Intermediate (WTI) February contract on the New York Mercantile Exchange (NIMAX) was trading at $ 50.11 a barrel, up 0.36 percent from the previous session.
Price rise in domestic futures market too
On the domestic futures market Multi Commodity Exchange (MCX), however, crude oil was trading up by Rs 4 to Rs 3668 per barrel in January contract, while the price rose to Rs 3676 per barrel during trading. MCX crude oil gained more than five per cent in the previous session.
What do you know
Market experts say that prices are seeing a rise as Saudi Arabia’s largest exporter of oil in the world agrees to cut oil production. Saudi Arabia has agreed to cut additional production by 1 million barrels per day in February and March, after the meeting of OPEC and other major products group of oil exporting countries. Anuj Gupta, deputy vice president, energy and currency, Angel Broking, said the additional cut in oil production would support prices further and the WTI price could go up further to $ 54 to $ 56 per barrel.