MCX Share Price: Oil Inches Up amid Production Cut
MCX SHARE PRICE – On Tuesday, oil prices inched up in Asia. This followed after it made a 3% loss in the last settlement. Meanwhile, Saudi Arabia and other allies in the enlarged OPEC+ vowed to trim their production. However, the production cut failed to lift oil prices.
As of 12:37 AM ET (05:37 GMT), the January delivery of Crude Oil WTI Futures added 0.31% to $51.16 per barrel. This was based on the New York Mercantile Exchange. The WTI has remained lower close to 16% just three weeks before the year ends. Further, it is 34% down from its four-year highs of closely $77 per barrel recorded in early October.
Meanwhile, the February delivery of Brent Oil futures increased to $60.16 a barrel. This was according to London’s Intercontinental Exchange. Moreover, Brent has stayed 10% below on the year and 31% below from four-year highs of closely $87 per barrel recorded last two months ago.
On Friday, OPEC has made an announcement regarding its plans to cut the overall production among its members. In the first six months of 2019, there we will be a production cut of 1.2 million barrels per day (bpd). This aims to ward off a global glut in supplies and to support prices.
OPEC plans to limit the production to 0.8 million bpd from October levels. Meanwhile, non-OPEC members will place a further contribution of 0.4 million bpd of cuts. However, the producer club will review this move at a meeting in April.
After the release of the news, oil prices surged on Friday. But, the oil industry surrendered its gain as markets became skeptical towards the sufficiency of production cuts in ending oversupply.
MCX Share Price: Gold prices inch up on the decline of the dollar
On Tuesday, gold prices inched up in Asia amid the decline in the US dollar.
As of 1:24 AM ET (05:24 GMT), the February delivery of Gold Futures increased 0.3% at $1,252.70 a troy ounce. This was based on the Comex division of the New York Mercantile Exchange.
Since the last week of August, Gold has achieved its biggest weekly gain.
For this year, the fourth rate hike is likely to come next week. Despite this, uncertainty has remained for the said plan. Meanwhile, Fed policymakers have emphasized three hikes for next year. But the market expects only one.
Lower interest rates can bring support in lifting the gold. Further, the lower rates lessen the relative cost of holding on to the metal.
The US dollar index, which measures the greenback’s strength against a basket of other currencies, declined 0.1% to 97.058.