Crude oil futures have rebounded ahead of the OPEC meet. Global stocks are seeing a mixed to weak activity as traders eyed the recent developments on the economic front following the US-China trade spat. Commodities remained slippery and DOW dropped for eighth session yesterday. However, the WTI Crude is well supported and currently trades at $ 66.38 per barrel, up more than 1% on the day. MCX Crude oil futures closed at Rs 4493 per barrel yesterday, up 0.16% on the day. The rebound in global futures should provide an early boost to the domestic futures.
Local Crude oil production during May, 2018 was 3007.84 TMT which is 1.38% lower than target and 2.95% lower when compared with May 2017. Cumulative crude oil production during April-May, 2018 was 5922.84 TMT which is 0.61% lower than target for the period and 1.92% lower than production during corresponding period of last year.
The US Conference Board said its leading economic index edged up by 0.2% in May after rising by 0.4 in April. Bank of England decided to keep the key interest rate unchanged, in a split vote, and stood unanimous on quantitative easing. At the Monetary Policy Committee meeting, members voted 6-3 to maintain the benchmark rate at 0.50%. All members agree that any future increases in Bank Rate are likely to be at a gradual pace and to a limited extent. All nine members voted to maintain quantitative easing at GBP 435 billion. The MPC said it intends not to reduce the current stock of purchased assets until Bank Rate reaches around 1.5% compared to the previous guidance of around 2%. Any reduction in the stock of purchased assets will be conducted at a gradual and predictable pace, the bank said.