Crude oil futures dip on weak global cues, OPEC+ signals output concerns

New Delhi, Sep 4 (PTI) Crude oil prices on Thursday declined Rs 46 to Rs 5,588 per barrel in the futures trade on the MCX amid reports that OPEC+ may announce another production hike at its upcoming meetings.

On the Multi Commodity Exchange, Crude oil futures decreased Rs 46 or 0.82 per cent to Rs 5,588 a barrel in a business turnover of 11,320 lots.

In the overseas markets, West Texas Intermediate Crude Oil dipped 1.03 per cent to USD 63.31 per barrel while Brent Crude went lower by nearly 1 per cent to USD 66.94 a barrel.

"Crude oil slumped on Wednesday, giving up earlier gains, after reports suggested OPEC+ may announce another production hike at its upcoming meetings," said Rahul Kalantri, Vice-President of Commodities, Mehta Equities.

Kalantri further stated that crude oil prices were weighed down by a surprise rise in US stockpiles, with American Petroleum Institute reporting an inventory build of 0.6 million barrels for the week ending August 29, against market forecasts for a 3.4 million-barrel decline.

According to brokerage firm Axis Securities, weak US macroeconomic data weighed on demand prospects of the crude oil. However, losses were partly cushioned by a softer US dollar. PTI HG HG DR DR