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India Crude: Up over 2% on optimism over demand improving from China

Informist, Wednesday, Nov 30, 2022

 

By Sayantan Sarkar

 

MUMBAI – Crude oil contracts in India and abroad rose for the second consecutive day on expectations of demand improving from China. International prices also got support from a weakening dollar.

 

* China reported fewer COVID-19 infections today than on Tuesday, which raised hopes that the country may ease restrictions.

 

* “Oil prices initially rose on hopes that China’s COVID situation might be improving as protests are pressuring officials to ease some rules,” Ed Moya, senior market analyst at OANDA, Americas, said in a report.

 

* “Any relaxation of quarantine rules, as well as relaxation of travel restrictions, would see demand rebound quickly,” Motilal Oswal Financial Services said in an emailed commentary.

 

* Moreover, the American Petroleum Institute reported that crude oil stockpiles in the country fell by 7.9 mln barrels last week. Official weekly data on inventories from Energy Information Administration is scheduled later today.

 

* At 1847 IST:
 –December contract on the Multi Commodity Exchange of India was up 2.5% at 6,579 rupees per bbl.

 –January contract on the New York Mercantile Exchange was up 3.1% at $80.57 per bbl.

 

* Meanwhile, reports claimed that the Organization of the Petroleum Exporting Countries and allies are likely to keep production levels unchanged at their next meeting starting Sunday. At their last meeting in October, the cartel decided to cut output by 2 mln bbl per day as crude prices declined over the previous two quarters.

 

* Outlook for the evening session by Kotak Securities:
  –MCX contract is seen at 6,301-6,681 rupees per bbl
  –NYMEX contract is seen at $75.70-$82.40 per bbl

End

 

US$1 = 81.42 rupees

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

 

Edited by Ashish Shirke

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. 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. 2022. All rights reserved.

Source: Cogencis

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