Informist, Monday, May 16, 2022
By Sayantan Sarkar
MUMBAI – Oil prices in India were largely unchanged today even as benchmark contracts on international bourses traded in the red due to poor economic data from China.
* China’s retail sales dropped 11% on year in April, while factory production fell nearly 3% on year. This stoked concern over a possible global recession, and lower demand for crude oil. The Asian giant is the top importer of crude oil.
* At 1733 IST:
–May contract on the Multi Commodity Exchange of India was flat at 8,527 rupees per barrel.
–June contract on the New York Mercantile Exchange was down 0.8% at $107.78 per bbl.
* Also, data showed that China processed 11% less crude last month as lockdowns in the country weighed on demand for oil. Shanghai and Beijing had been under strict lockdowns to curb the spread of COVID-19 virus.
* “The prospect of initial relaxations in Shanghai does not appear to be having any impact on the oil market in view of these significant falls (poor economic data),” Commerzbank AG said in a report.
* However, prospect of a European Union ban on Russian crude supplies has limited the fall in oil prices. The likes of Austria and Germany expect the proposal to be approved in the coming days.
* Outlook for the evening session by HDFC Securities:
–MCX contract is seen at 8,250-8,670 rupees per bbl
–NYMEX contract is seen at $105-$110 per bbl
US$1 = 77.45 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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