As a result of positive estimates for global demand and anticipation of ongoing supply constraints by major oil-producing countries, crude oil prices increased by 1.09% to settle at 6702 rupees per barrel. Strong growth in oil demand is anticipated in the second half of the year, according to reports from OPEC, the International Energy Agency, and the US Energy Information Administration.
This optimistic view was further supported by a more widespread increase in risky assets amid decreasing inflationary pressures, which stoked expectations of future interest rate reductions in major economies. Important OPEC+ countries like Iraq and Russia reaffirmed their commitment to production caps on the supply side, while Saudi Arabia signaled flexibility in modifying output in response to market conditions.
Following OPEC+’s unexpected agreement to increase production in October progressively, investor mood improved as expectations of increased future demand bolstered prices. In the US, petrol stockpiles soared, distillate stockpiles above consensus estimates, while crude oil stocks unexpectedly increased by 3.730 million barrels. On the other hand, following a prior build, oil stocks at the Cushing delivery hub dropped.
