Informist, Monday, Sep 12, 2022
By Sayantan Sarkar
MUMBAI – Crude oil prices in India and abroad rose today extending Friday’s gains as concerns about supply after negotiations between the US and Iran stalled supported the sentiment.
* France, UK and Germany reportedly expressed serious doubts about Iran’s willingness to revive the 2015 nuclear deal, which could see the US ease sanctions on Tehran’s oil exports.
* Additionally, supply of oil is likely to be tight by the end as Europe had earlier agreed to phase out Russian energy supplies by December-end.
* However, Europe has been struggling to replace Russian energy supplies as the continent has been suffering from natural gas shortages ahead of the northern winter. Russia has also stopped supplies of natural gas from the Nord Stream 1, exacerbating further supply issues.
* “Global oil prices may rebound towards the end of the year – supply is expected to tighten further when a European Union embargo on Russian oil take effect on Dec 5,” said Tapan Patel, senior analyst at HDFC Securities.
* At 1654 IST:
–September contract on the Multi Commodity Exchange of India was up 0.6% at 6,950 rupees per barrel.
–October contract on the New York Mercantile Exchange was up 0.5% at $87.27 per bbl.
* Outlook for the evening session by HDFC Securities:
–MCX contract is seen at 6,780-7,080 rupees per bbl
–NYMEX contract is seen at $85-$89 per bbl
US$1 = 79.52 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Maheswaran Parameswaran
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