Informist, Friday, Oct 29, 2021
By Sayantan Sarkar
MUMBAI – Crude oil prices in India and abroad rose today ahead of the ministerial meeting of the Organization of the Petroleum Exporting Countries and allies next week.
* The market expects the cartel to stick to their existing plan of gradual increase in oil output every month, which has supported prices today.
* The Algerian oil minister reportedly spoke out on Thursday against raising oil production by more than the agreed amount in December. “It is therefore likely that a decision will be taken to expand supply by 400,000 barrels per day as planned when the OPEC+ oil ministers meet for discussions next Thursday,” Commerzbank AG said in a report.
* At 1617 IST
–The November crude oil contract on the Multi Commodity Exchange of India was up 0.9% at 6,241 rupees per bbl
–The December contract on New York Mercantile Exchange was up 0.4% at $83.16 per bbl.
* The oil market is currently under supplied as global demand has surged in recent months, while supply has remained subdued with OPEC being cautious about raising output sharply. The coal and natural gas shortages have hit power generators, and many have been forced to switch to oil-based fuel, which sharply increased demand for oil.
* However, oil prices are set to end the week with losses after an unexpected jump in US inventories hit sentiment.
* Outlook for the evening session by Tapan Patel, senior analyst at HDFC Securities:
–The MCX contract is seen at 6,150-6,320 rupees per bbl
–The NYMEX contract is seen at $81-$85 per bbl. End
US$1 = 74.87 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Michael Correya
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