Informist, Wednesday, May 4, 2022
By Sandeep Sinha
MUMBAI – Oil prices rose in India and abroad today as the European Union proposed a ban on Russian crude imports within six months due to Russia’s invasion of Ukraine and alleged violation of human rights.
* European Commission President Ursula von der Leyen presented the proposal to ban Russian oil import within six months and refined oil products by the end of this year, which will be taken up for discussion and vote by member nations later today.
* “EU countries imported an average of 3.5 mln barrels of crude oil and oil products per day from Russia in Oct-Dec in 2021. This quantity now has to be sourced elsewhere on the market, which is likely to tighten supply if all other things remain constant and should in turn push up prices”, Commerzbank AG said in a report.
* At 1600 IST:
–May contract on the Multi Commodity Exchange of India was up 3% at 8,122 rupees per barrel.
–June contract on the New York Mercantile Exchange was up 3.7% at $106.19 per bbl.
* Crude oil prices traded higher on bullish inventory data and expectations of tight supply with EU sanctions on Russia, said Tapan Patel, senior analyst – commodities at HDFC Securities.
* The American Petroleum Institute reported that crude oil inventories in the country fell by 3.47 mln bbl for the week ended Friday and focus will now be on the Energy Information Administration’s weekly inventory report due later in the day.
* Outlook for the evening session by HDFC Securities:
–MCX contract is seen at 7,850-8,250 rupees per bbl
–NYMEX contract is seen at $103-$110 per bbl
US$1 = 76.41 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Vidhi Verma
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