Crude oil prices decline in futures trade as OPEC+ output hike weigh on sentiment

New Delhi, Sep 30 (PTI) Crude oil prices pared early gains to trade lower at Rs 5,576 per barrel in the domestic futures trade on Tuesday, tracking weak global cues amid indications of higher output from OPEC+ nations and resumption of exports from Iraq's Kurdistan region.

On the Multi Commodity Exchange, crude oil futures for October delivery fell Rs 34 or 0.61 per cent to Rs 5,576 per barrel in a business turnover of 12,228 lots.

The November contract also declined Rs 40 or 0.72 per cent to Rs 5,553 per barrel with a turnover of 2,089 lots.

In the international market, West Texas Intermediate (WTI) crude for November delivery was trading 1.04 per cent lower at USD 62.72 per barrel, while Brent crude dropped 1 per cent to USD 67.26 a barrel in New York.

"Crude oil prices showed high volatility and slipped from seven-week highs after OPEC+ signalled plans to increase production from November," said Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd.

He added that the alliance is likely to approve an additional production output hike of 1,37,000 barrels per day from November in its upcoming meeting later this week.

Kalantri said crude oil prices also weakened after Iraq's Kurdistan region resumed oil exports over the weekend, easing supply concerns that had supported the market in recent sessions.

However, upbeat US macroeconomic data and ongoing geopolitical tensions are expected to lend support to oil prices at lower levels, he noted.

Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said that crude oil prices jumped 5 per cent last week, buoyed by Russia's ban on fuel exports until the year-end. Ukrainian attacks on Russian energy infrastructure, and diplomatic pressure from US President Donald Trump urging the European Union and Turkey to reduce their dependence on Russian energy supplies also supported the crude oil prices, she added. PTI DR HG MR