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India Crude:Rebounds tracking NYMEX as Biden signs infra bill into law

Informist, Tuesday, Nov 16, 2021

 

By Chinmay Mungse

 

MUMBAI – Crude oil prices in India and abroad rebounded today, from the previous session, after US President Joe Biden signed into law the $1 trln infrastructure bill on Monday.

 

* With the passage of the bill, the Biden government is expected to pour in billions of dollars into the development of ports, roads and power lines, while also increasing demand for oil, said experts. 

 

* “The bill has been in talks for a while and the market had factored that in,” said Madhavi Mehta, research analyst at Kotak Securities. “The expected social spending bill will impact the markets more.” 

 

* However, the rise in crude oil prices was restricted by a stronger dollar. “Higher US output expectations and signs of weakening demand due to fresh COVID-19 outbreaks in certain parts of Europe and China,” said Sriram Iyer, senior analyst at Reliance Securities.

 

* In addition, the International Energy Agency said in its oil market monthly report today that supply is expected to rise by 1.5 mln barrels per day for the remainder of 2021. It also expects the pressure on the supply side of the market to ease in the coming weeks as production from the US, Saudi Arabia and Russia seen higher.  

 

* At 1722 IST

  –The November crude oil contract on the Multi Commodity Exchange of India was up 1.3% at 6042 rupees per bbl

  –The December contract on New York Mercantile Exchange was up 0.5% at $81.26 per bbl.

 

* Outlook for the evening session by Manoj Jain, head of commodity research at Prithvi Finmart:

  –The MCX contract is seen at 5,950-6,166 rupees per bbl

  –The NYMEX contract is seen at $79.4-$81.8 per bbl. End 

 

US$1 = 74.37 rupees

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

 

Edited by Aditya Sakorkar

 

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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© Informist Media Pvt. Ltd. 2021. All rights reserved.

Source: Cogencis

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