MUMBAI: Crude oil prices failed to show significant upmove after the Organization of Petroleum Exporting Countries (OPEC), responsible for more th an 30 per cent of world crude oil production, announced cut in production targets, first time in two years. Benchmark December futures on New York mercantile Exchange traded closer to $64.50 a barrel, off its day's low of $63.05 but down $3 from Thursday. MCX November futures is trading closer to Rs 3,335, down 4 per cent from previous session. The cartel of 13 nations decided to lower supply by 1.5 million barrels a day from November, and will be effective from the existing quota for 11 members of 28.8 million barrels a day. “The production cut was largely discounted in the price moves in last few sessions. While the cut of 1 million barrels per day was largely expected, the announcement has failed to bring in a surprise to the markets. Demand scenario still continues to look bleak with all major economies experiencing recession fears,” said Harish Gallipeli, research head, Karvy Comtrade. According to him, the markets could experience a significant quantity of over supply in the coming quarters. “On the down side, $60 is a strong support for near term which could correspond to Rs 3,150 for MCX November contract," he added. Strength in the US currency also seems pressuring crude oil prices lower. The dollar index--a measure of dollar's strength against a basket of major commodities like euro, sterling--is near two-year highs past 86.65. The index has gained more than 14 percent from its September low of 75.89.

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