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India Crude:Hits 12-week high on NYMEX cues over supply crunch in US

Informist, Tuesday, Sep 28, 2021

 

By Sayantan Sarkar

 

MUMBAI – Oil prices in India jumped to a 12-week-high earlier today, tracking prices in the international markets that rose due to a supply crunch from US producers. 

 

* The October crude oil contract on the Multi Commodity Exchange of India touched a 12-week high of 5,675 rupees per barrel, while the West Texas Intermediate crude price on the New York Mercantile Exchange also hit a 12-week high of $76.67 per barrel earlier today. 

 

* A stronger dollar, however, weighed on international prices as oil becomes expensive to holders of other currencies when the greenback appreciates, limiting demand.

 

* At 2022 IST

  –The October crude oil contract on the Multi Commodity Exchange of India was up 0.3% at 5,588 rupees a bbl.

  –The November contract on the New York Mercantile Exchange was down 0.3% at $75.20 per bbl

 

* Crude oil prices have surged in the last few weeks after Hurricane Ida shut down operations in the US Gulf of Mexico nearly a month ago. Regional production has still not fully recovered, according to reports. 

 

* Goldman Sachs has also scaled up its forecast for Brent crude oil on the Intercontinental Exchange by $10 per bbl to $90 per bbl for Oct-Dec due to global supply-demand mismatch. 

 

* Outlook for the evening session:

  –The MCX contract is seen at 5,420-5,680 rupees per bbl

  –The NYMEX contract is seen at $74.90-$76.00 per bbl

End

 

US$1 = 74.04 rupees

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

 

Edited by Michael Correya

 

 

Cogencis news is now Informist. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

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Source: Cogencis

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