The Organisation of the Petroleum Exporting Countries (OPEC) has agreed to increase crude oil output by 0.4 million barrels from the month of March. OPEC and allies are in process of unwinding the record supply cut of 10 million barrels per day that was seen in 2021.

The crude oil price is off the 7-year high. It seems to be facing some resistance at USD 90 per barrel, but the markets are also taking support from the fact that the US crude inventories have declined and there is a winter storm forecasted for the US northeast that is expected to support demand.

Also Read: Oil prices ease as OPEC+ sticks to output plans

There was a cold blast this week in the US, Canada and in the western world and that has led to natural gas price gain by 15 percent overnight. Natural gas prices are now up 40 percent this year. The markets believe that with the kind of demand that is estimated for the next three weeks, further gains will continue in natural gas and there will be a spillover of that in crude oil as well.

So energy as a pack is expected to be quite positive for the month of February as well.

Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.

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