Informist, Wednesday, Feb 9, 2022
By Sayantan Sarkar
MUMBAI – Crude oil prices in India and abroad fell today as traders await the conclusion of US-Iran negotiations to revive a 2015 nuclear deal later today. If both countries reach an agreement, Washington might lift sanctions on Tehran’s oil exports.
* Iran currently has capacity to produce 1 mln barrels of oil per day, and if sanctions are lifted, prices will decline further, according to analysts.
* “The high price level could make the negotiation partners (Iran and US) more willing to compromise,” Commerzbank AG said in a report.
* Oil prices have surged nearly 20% since the beginning of 2020.
* At 1656 IST
–February crude oil contract on the Multi Commodity Exchange of India was down 0.9% at 6,640 rupees per barrel.
–March contract on the New York Mercantile Exchange was down 0.7% at $88.78 per bbl.
* The American Petroleum Institute reported that oil stockpiles in the US fell by 2 mln bbl in the week ended Friday, which supported prices briefly in the morning.
* Investors will now await the release of the US Energy Information Administration’s weekly inventory data, due later today. Also, the Organization of the Petroleum Exporting Countries will release its monthly report on Thursday.
* The Energy Information Administration raised its forecast for global crude oil prices this year by 11% from its previous estimate in January and now sees West Texas Intermediate crude averaging $79.35 per bbl in 2022, according to the agency’s Short Term Energy Outlook.
* Outlook for the evening session:
–MCX contract is seen at 6,630-6,874 rupees per bbl
–NYMEX contract is seen at $86.89-$94.40 per bbl
End
US$1 = 74.81 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Vipul Vivek
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