Crude oil prices opened with gains during the new year's trading on Thursday as the global oil market awaits the impact of additional production cuts by members of OPEC and its allies to trim the glut of oil supply around the world. While the silver prices have also risen about 1.3%, the Platinum and Palladium are no exception, they also have advanced.
If the oil price drops below the benchmark, the country may explore the further borrowing options as taxes from household incomes remain low.
Brent crude surged 4.5 percent to $69.23 per barrel and WTI rose 4.1 percent to $63.71 per barrel after worries over an escalation in tensions.
Meanwhile, cCrude oil and condensate production in Russian Federation hit a record high for the post-Soviet era in 2019, despite Moscow's key role in supporting the ongoing production cuts of the OPEC+ coalition. The surge in prices is worrying for New Delhi as India imports more than 80% of its fuel requirements.
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US crude stocks fell by their most since June, driven by a surge in USA crude exports to more than 4 million barrels per day for the first time in history, the Energy Information Administration said on Friday. But the US will remain a net importer of crude oil. However, drops in other grades of oils contributed to a cumulative dip of 2.9 million barrels of total USA petroleum stocks.
Crude inventories fell by 11.5 million barrels in the week ended December 27 to 429.9 million barrels, compared with analyst expectations in a Reuters poll for a 3.3 million-barrel drop.
Investors would now eye the weekly crude inventory data by the US Energy Information Administration due later today. However, near-term outlook of the rupee depends upon the outcome of the trade talks between the United States and China.
The ongoing conflict may disrupt oil supplies, the analysts said.. He added, despite US-China trade optimism, oil prices in Q1 of 2020 will face headwinds.
Phase One of the US-China trade deal, as said by US President Donald Trump, is to be signed on January 15 at the White House.
Maru further noted that there is also a threat of Yuan devaluation if the trade talks fail.