What to expect from OPEC meet?

Oil prices remained on tenterhooks as the oil producing cartel meets in Vienna on Wednesday, November 30 to discuss a planned production cut, in an effort to cut down on over supply, which has plagued the energy prices since more than a year.

International crude prices hovered around USD 48 in early Tuesday's trading.

The main point of disagreement between the oil producers has been as to who will cut and by how much to rein the price of crude globally. Another point of contention has been with regards to non-OPEC members like Russia, which has been ramping up its supplies over the months.

Ahead of the all-important meeting the crude futures saw big amount of volatility in trade. Internal bickering of member nations,  especially Saudi Arabia, Iran and Iraq poses a possibility of not seeing the light of day, in which case the crude could slump downwards to touch USD 40 levels.

It could come as a blessing in disguise for the Indian economy with the depreciating rupee against dollar, and rising crude prices over the past two months, which has led to increase in oil prices domestically.

India can be a beneficiary if no consensus amongst the producers is reached, as rising oil prices and falling rupee is like a worst-case scenario. Falling rupee and rising oil prices will add to increase in crude import bill.

Ahead of the meet, CNX Energy is trading with gains of 0.60 per cent.