Informist, Monday, Oct 4, 2021
By Sayantan Sarkar
MUMBAI – Crude oil prices in India and abroad rose today as the market cautiously waits for the outcome of the ministerial meeting of the Organization of the Petroleum Exporting Countries and allies later today.
* Oil prices had corrected a little last week after reports claimed that OPEC and allies were considering raising output by more than the planned 400,000 barrels per day every month.
* Brent crude oil on the Intercontinental Exchange had hit $80 per bbl last week for the first time since October 2018 due to the supply and demand mismatch amid opening of several economies around the world, which increased fuel consumption. The supply from the US has been hit due to a hurricane, which kept a significant amount of production offline in the Gulf of Mexico region for several weeks.
* Production in the Gulf of Mexico region has still not recovered fully, according to reports.
* “Higher prices may place pressure on the group to add more supply than previously agreed upon, with the market focusing on OPEC+’s (OPEC and allies) next meeting,” HSBC Global Research said in a report.
* At 1658 IST
–The October crude oil contract on the Multi Commodity Exchange of India was up 0.5% at 5,648 rupees a bbl.
–The November contract on the New York Mercantile Exchange was up 0.2% at $76 per bbl
* “Despite the favourable market conditions, we expect that OPEC+ will stick to its plan to marginally bring back 400,000 bpd on a monthly basis, and wait until December to make any larger market disruptions,” Rystad Energy said in a note.
* Outlook for the evening session by Angel One Commodities:
–The MCX contract is seen at 5,440-5,790 rupees per bbl
–The NYMEX contract is seen at $74.75-$76.25 per bbl
US$1 = 74.31 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Rajendra Masur
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