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Saturday, August 6, 2022

India Crude: Down on MCX, NYMEX flat on short covering; US data eyed

Informist, Friday, Aug 5, 2022


By Chinmay Mungse


MUMBAI – Crude oil prices in India were trading lower today, pressured by a stronger rupee against the US dollar. A stronger rupee makes the greenback-denominated commodity cheaper for the Indian investors.


* Benchmark crude oil contracts on the New York Mercantile Exchange were flat today as investors covered their short positions after prices hit a six-month low on Thursday.


* Rise in the US crude oil inventories and demand concerns pressure the most active September crude oil contract on the NYMEX to a six-month low of $87.55 per barrel.


* “Crude oil prices fall due to demand concerns and rising US stocks. Prices corrected in this week and finding support at lower levels,” said Manoj Jain, research head at Prithvi Finmart.


* Crude oil prices came under pressure as talks to revive the nuclear deal between Iran and world powers. The European Union, US and Iran are holding talks in Vienna to revive Iran’s nuclear program and bring their oil production back to global markets.


* “The resumption of talks between the EU, the US and Iran put pressure on crude oil prices as the supply might increase if the deal materializes,” said Ajay Kedia, research head at Kedia Comtrade.


* Further, Libya has resolved the domestic political tensions and might resume oil production which could spur the global oil supply by 1 mln barrel per day.


* At 1619 IST:
 –August contract on the Multi Commodity Exchange of India was down 0.3% at 7,016 rupees per bbl.

 –September contract on the NYMEX was flat at $88.47 per bbl.


* Investors are now eyeing the US non-farm payrolls data which is scheduled to release later today. Analysts are expecting the non-farm payrolls in the US to increase by 200,000 for July, lower than the 372,000 increase in June. 


* Outlook for the evening session:
 –MCX contract is seen at 6,900-7,100 rupees per bbl
 –NYMEX contract is seen at $87.50-$89.00 per bbl





US$1 = 79.23 rupees

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


Edited by Sushmita Mukherjee



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Source: Cogencis

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