Informist, Wednesday, Oct 6, 2021
By Sayantan Sarkar
MUMBAI – Crude oil prices in India rose slightly as the rupee fell sharply against the dollar today. A weaker rupee makes dollar-denominated commodities more expensive for investors.
* In international markets, oil prices were lower as the American Petroleum Institute reported that stockpiles in US rose by nearly 1 mln bbl last week.
* At 1653 IST
–The October crude oil contract on the Multi Commodity Exchange of India was up 0.2% at 5,908 rupees a bbl.
–The November contract on the New York Mercantile Exchange was down 0.9% at $78.20 per bbl
* Oil prices hit multi-year highs earlier today on MCX and NYMEX with concerns over shortage of supply after the Organization of the Petroleum Exporting Countries and allies decided to stick to their existing plan of increasing output gradually every month till the end of the year.
* The MCX contract had hit 5,956 rupees per bbl, its highest level since August 2014, while the contract on NYMEX had reached $79.78 per bbl, the highest level since November 2014.
* “The 400,000 barrels per day expansion of production confirmed for November will not be nearly enough to keep the oil market balanced, especially as demand is likewise growing because of the gas shortage,” Commerzbank AG said in a report.
* The market will now wait for the release of the US Energy Information Administration’s weekly inventory data later today.
* Outlook for the evening session by Tapan Patel, senior analyst at HDFC Securities:
–The MCX contract is seen at 5,820-5,980 rupees per bbl
–The NYMEX contract is seen at $76-$80 per bbl
End
US$1 = 74.98 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Shirsha Thakur
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