India Crude: MCX, NYMEX fall 1%as IMF trims global growth forecast

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India Crude: , NYMEX fall 1%as IMF trims global growth

Tuesday, Jan 21

 

By Roshni Devi

 

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MUMBAI – Forecast of a slowdown in global dragged down crude oil contracts on the Multi Commodity Exchange of India and the Mercantile Exchange by over 1% today, analysts said.

 

At 1700 IST, the February crude oil contract on MCX was down 1.3% at 4,127 rupees a bbl and the February delivery contract on NYMEX was down 1.2% at $57.85 a bbl.

 

The International Monetary Fund shaved its outlook for global growth in 2020 to 3.3% from 3.4% projected in October, mostly due to a sharper-than-expected slowdown in India and other emerging markets. It also cut the forecast for 2021 to 3.4% from 3.6%.

 

“The underlying causes of trade and the fundamental issues of reform of the trade system are still with us,” the IMF said.

 

Easing supply concern after worry over disruption to production in and Iraq were also a negative for crude oil prices.

 

“OPEC (and its allies) can quickly meet production losses from Libya and potentially Iraq. OPEC+ is much more poorly equipped to deal with a loss on the demand-side of the equation, should Asian requirements take a sudden negative hit,” a report by OANDA said.

 

Fatih Birol, executive director of the , said he did not regard the present supply disruptions in Libya as a serious problem for the oil .

 

Prices had risen on Monday after Iraq temporarily stopped work in an oilfield on Sunday due to unrest in the country, and Libya blocked exports from some ports.

 

OUTLOOK

For the rest of the day, the MCX contract is seen at 4,070-4,230 rupees per bbl, and the contract on NYMEX is seen at $57.00-$59.30 a bbl, said Angel .  End

 

US$1 = 71.20 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Subham Mitra

 

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