From crude oil perspective, a depreciating rupee would lead to more pressure on crude oil prices, said Faiyaz Hudani, Deputy VP Research, Kotak Commodity Services.

"Historically OPEC has never stood by its word; this was the first time when they actually came together and they stood by it and they ensured that the production was down. But again it seems that there is a fallout within their team and I think crude oil prices would decline. $64-67 is the broad band. Once this OPEC meeting is over and then probably market settles down we will have more clear view but as of now the market looks more or less on the sell side,” said Hudani.

Speaking on OPEC meet Thomas Pugh, Commodities Economist at Capital Economics said, “There is some sort of agreement to increase production between 0.5-1 million barrels. However the growing risk is that there really just isn’t an agreement, Iran, Venezuela, Iraq just refuse to sign any sort of agreement which increases oil, Saudi Arabia and its allies then will just go ahead and increase oil unilaterally and the whole deal framework falls apart."

It is also becoming clear that Russia is intending to more or less increase oil production regardless of what OPEC agrees. So, definitely risk to the prices are to the downside, he said.

First Published:Jun 20, 2018 7:49 PM IST