Crude Oil
WTI oil prices fell by 0.5 percent and Brent plunged by more than 2 percent on Thursday after reports surfaced that Russia had refused to cooperate with OPEC (Organization of the Petroleum Exporting Countries) in an attempt to curb production.
Also, weak Japanese data revived fears over the prospects for global growth. Japan's exports slowed a second straight month in August, a sign that China's economic slowdown could be damaging the world's third-biggest economy.
Further, investors remained cautious ahead of the Federal Reserve decision on the first US rate hike in nearly a decade.
On the MCX, oil prices traded flat to close at Rs.3097 per barrel.
Outlook
Oil prices are expected to trade sideways today as OPEC is assuming the oil price will rise gradually to $80 a barrel in 2020 as supply growth outside the group weakens, a slower recovery than several member nations have said they need. Also, industry research group Baker Hughes will release its latest estimates of the number of rigs drilling for oil in the U.S. today.
While on the other hand, weakness in the DX following Fed’s decision to hold rates steady will be supportive.
On the MCX, oil prices are expected to trade lower today owing to Rupee appreciation.
Contributed by Angel Broking
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