Informist, Tuesday, Mar 22, 2022
By Sandeep Sinha
MUMBAI – Crude oil prices gained for the fourth successive day of trade on the Multi Commodity Exchange of India due to prospects of a possible embargo by the European Union on oil from Russia for its invasion of Ukraine. Officials from the EU are scheduled to meet on Thursday to discuss sanctions on Russian oil.
Meanwhile, concerns over supply worsened over the weekend after attacks by Yemen’s Iran-aligned Houthi group led to a temporary drop in output at a Saudi Aramco refinery.
“Crude has bounced back sharply from recent lows and may remain higher unless there is more clarity about EU stance on Russian energy exports, although there is a good possibility that EU may avoid such a scenario due to high reliance on Russian supply”, said Ravindra Rao, vice-president-head commodity research at Kotak Securities.
* At 1720 IST
–April crude oil contract on the Multi Commodity Exchange of India was up 0.3% at 8,354 rupees per barrel.
–May contract on the New York Mercantile Exchange was up 0.2% at $110.20 per bbl.
* The trend has become positive as the price moved above major simple and exponential moving averages on the daily charts. The 14-period Relative Strength Index is sustaining above the mid-level of 50, indicating further upside.
* Market participants will look for cues from inventory data this week, starting with private forecaster American Petroleum Institute’s data later today, and sata by the Energy Information Administration on Wednesday.
* Outlook for the evening session:
–MCX contract is seen at 8,240-8,900 rupees per bbl
–NYMEX contract is seen at $107.81-$115.18 per bbl
End
US$1 = 76.18 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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