12.5 C
New York
Monday, March 27, 2023

India Crude: Up on MCX, flat on NYMEX as OPEC sticks to output policy

Informist, Thursday, Feb 2, 2023


By Sayantan Sarkar


MUMBAI – Crude oil futures rose slightly on the Multi Commodity Exchange of India, and were flat on New York Mercantile Exchange after the Organization of the Petroleum Exporting Countries and allies stuck to their current output policy of reducing supply by 2 mln barrels per day throughout 2023.


* The cartel had been reducing supply by 2 mln bpd since November. OPEC’s Joint Ministerial Monitoring Committee had a meeting on Wednesday, in which it reaffirmed the decision taken by member countries earlier and recommended the cartel to keep the status quo on their output policy. 


* OPEC is likely to monitor the situation in China with the country reopening its borders and easing domestic COVID-19 restrictions. 


* “The price stability was supported by the OPEC+ meeting that resulted in no change to production policy and a weaker US currency,” Motilal Oswal Financial Services said in a note.  


* At 1707 IST:
 –February contract on the Multi Commodity Exchange of India was up 0.2% at 6,290 rupees per barrel.

 –March contract on the New York Mercantile Exchange was flat at $76.60 per bbl.


* Additionally, the US Federal Reserve on Wednesday slowed the pace of rate increases for the second consecutive policy, raising rates by 25 basis points. This was in line with the market expectations. 


* Slower pace of rate hike by the US central bank means that there will be more liquidity with investors, thereby boosting demand for crude. The US is the largest consumer of oil. 


* On the bearish front, the US Energy Information Administration reported that crude oil inventories in the country rose by 4.1 mln bbl in the week ended Friday, while petroleum and distillate stocks also increased significantly.  


* Outlook for the evening session by Kotak Securities:
  –MCX contract is seen at 6,108-6,523 rupees per bbl  

  –NYMEX contract is seen at $75.90–$81.50 per bbl




US$1 = 82.17 rupees

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


Edited by Maheswaran Parameswaran


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.


Informist Media Tel +91 (22) 6985-4000 /+91 (11) 4220-1000

Send comments to [email protected]


© Informist Media Pvt. Ltd. 2023. All rights reserved.


Source: Cogencis

Related Articles


Please enter your comment!
Please enter your name here

Stay Connected

- Advertisement -

Latest Articles

Popular Articles