Crude Oil may open in red tracking weak overseas clues as it can move in range of 2910-3000 in MCX. Members of the Organization of Petroleum Exporting Countries during a September meeting in Algeria proposed a production ceiling aimed at propping up oil prices in a market characterized by excessive supplies. Kuwait's prime minister said Monday his government supported the deal and OPEC Secretary General Mohammad Sanusi Barkindo said support was consolidating around the proposal.
Doubts over whether or not the 14 members of OPEC could coordinate on a formal agreement dragged oil back beneath $50 per barrel and most metrics show OPEC would actually need to cut output to meet the terms of the September proposal. The rise of U.S. oil production in part from shale deposits in the Lower 48 brought oil down from $100 per barrel two years ago. Natural gas may move with sideways bias with positive bias as it can move in range of 184-190 in MCX.
Courtesy: Smc Comtrade