Informist, Monday, Jan 30, 2023
By Sayantan Sarkar
MUMBAI – Crude oil futures on the Multi Commodity Exchange of India were flat today, tracking those on New York Mercantile Exchange as the market looks for cues from a panel meeting of the Organization of the Petroleum Exporting Countries later this week.
* The OPEC panel is expected to discuss oil market dynamics, and might call for a full member meeting of OPEC and its allies if it deemed necessary.
* The cartel and its allies have been reducing oil supply by 2 mln barrels per day since November, and plans to cut output throughout 2023. Reports have suggested that OPEC and its allies are likely to stick to their current output policy, which is likely to be supportive of oil prices in the long term, according to experts.
* Also, the market will keep an eye on the outcome of the two-day policy meeting of the US Federal Reserve starting on Tuesday. US Fed is expected to slow its pace of interest-rate hikes, which is likely to be bullish for oil prices.
* Additionally, hope of a revival in China’s oil demand had also spurred oil prices last week as the country has eased restrictions and reopened its borders after three years. Investors will be monitoring the situation in China as it is the biggest importer of the commodity in the world.
* At 1747 IST:
–February contract on the Multi Commodity Exchange of India was flat at 6,511 rupees per barrel.
–March contract on the New York Mercantile Exchange was flat at $79.73 per bbl.
* The price of India’s crude oil basket rose to a 10-week high and was up by 50 cents at $84.65 a bbl on Friday, according to data from the Petroleum Planning and Analysis Cell.
* Outlook for the evening session by Angel One Commodities:
–MCX contract is seen at 6,380-6,630 rupees per bbl
–NYMEX contract is seen at $79.40–$82.30 per bbl
End
US$1 = 81.49 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Maheswaran Parameswaran
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