Crude oil futures closed higher in the domestic market on Monday after more oil-producing nations agreed to slash production, a move aimed at pushing the oversupplied oil market back into balance, or even a deficit, and prop up prices that have been stuck in a two-year slump.
Over the weekend, a group of heavyweight producers outside of the Organization of the Petroleum Exporting Countries, including Russia, agreed to scale back their output by 558,000 barrels a day. The move would come on top of the cut of 1.2 million barrels a day agreed to by OPEC in late November. At the MCX, crude oil futures for December 2016 contract closed at Rs 3587 per barrel, up by 3.25 per cent, after opening at Rs 3500, against a previous close of Rs 3474. It touched the intra-day high of Rs 3644.