Friday, June 3, 2016

Commodity Tips: Crude oil gains 0.15% after OPEC meeting
Commodity Tips: Crude oil prices rose by 0.15% on Friday following an OPEC meeting that failed to agree on output targets, but which was seen as supportive as Saudi Arabia pledged not to flood the market with more fuel. The Organization of the Petroleum Exporting Countries failed to agree to a clear oil-output strategy on Thursday as Iran insisted on raising production to regain market share lost during years of sanctions, which were lifted in January. At the MCX, crude oil futures for June 2016 agreement were trading at Rs. 3,319 per barrel, up by 0.15 per cent, after opening at Rs. 3,312 against the previous closing price of Rs. 3,314. It touched the intra-day high of Rs. 3,320 till the trading.

Further, strong demand in Asia was also reflected by a jump in refining margins especially for diesel and jet fuel. Overall Asian refining margins have not been doing well this year, due to oversupply of products and the rising price of crude, but diesel and jet fuel production profits have jumped.