Oil reports weekly gain as traders await OPEC+ quarterly supply decision; Brent settles 2% higher at $83/bbl

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Also Read: US sanctions threaten Russian oil sales to India; complicate process for OMCs to secure annual deals: Report Back home, on the Multi Commodity Exchange (MCX), crude oil futures due for a March 19 expiry, last settled 0.02 per cent lower at ₹6,637 per bbl, having swung between ₹6,475 and ₹6,694 per bbl during the session, against a previous close of ₹6,638 per barrel. -A decision on extending OPEC+ cuts is expected in the first week of March, with individual countries expected to announce their decisions. Analysts said that the expectation that OPEC+ is going to continue with their voluntary production cuts well into the second quarter of 2024.

-Sticking to the voluntary production cuts until the end of the year would be a strong signal and should therefore be seen as price-positive, according to analysts. A Reuters survey showed the OPEC pumped 26.42 million barrels per day (bpd) in February, up 90,000 bpd from January. -Strong expectations of Saudi Arabia keeping term prices of crude it sells to Asian customers little changed in April from March levels also underpinned the market on Friday.

Meanwhile, geopolitical tension in the Red Sea also lifted prices on Friday. -US energy firms added oil and natural gas rigs for a second straight week, energy services firm Baker Hughes, opens new tab said in its closely followed report on Friday. The oil rig count, an early indication of future output, rose by three to 506 this week, the highest since September.