Informist, Wednesday, Nov 17, 2021
By Chinmay Mungse
MUMBAI – Crude oil prices in India and abroad were in the red today, as reports claimed that US and China may release oil from their respective strategic reserves to cool the rising prices.
* Following a recent spike in inflation, the US government is facing mounting public pressure to release strategic oil reserves, said experts. “President Joe Biden is evaluating the tools he has available, including releasing crude from the strategic reserves,” said US Energy Secretary Jennifer Granholm on Monday.
* The International Energy Agency said that a rise in oil production from the US, Saudi Arabia and Russia in the next few weeks will ease supply.
* The Paris-based energy agency predicted that worldwide oil output would increase by 1.5 mln barrels per day for the remainder of the year, with the US accounting for 400,000 barrels of that increase.
* According to media reports, Organisation of Petroleum Exporting Countries Secretary-General Mohammad Barkindo said on Tuesday that he expects an oil supply surplus as early as December and the market to remain oversupplied next year.
* “The surplus is already beginning in December. These are signals that we have to be very, very careful,” said Barkindo.
* “Rising COVID-19 cases in Europe could dampen sentiments and hamper recovery,” said Sriram Iyer, senior analyst at Reliance Securities.
* At 1657 IST
–The November crude oil contract on the Multi Commodity Exchange of India was down 2% at 5,919 rupees per bbl.
–The December contract on New York Mercantile Exchange was down 1.3% at $79.68 per bbl.
* Crude oil inventories showed a rise of 655,000 bbl for the week ended Friday, reported the American Petroleum Institute. Traders now await the Energy Information Administration’s inventory statistics scheduled for release today.
* Outlook for the evening session by Sriram Iyer:
–The MCX contract is seen at 5,969-6,159 rupees per bbl
–The NYMEX contract is seen at $79.9-$81.7 per bbl. End
US$1 = 74.27 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Pranav S. Joshi
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