Informist, Friday, Jan 7, 2022
By Sayantan Sarkar
MUMBAI – Crude oil prices in India and abroad continued to rise amid unrest in West Asia, which stoked fears of supply among investors.
* Political unrest in Kazakhstan has raised fears that oil supply from the country may be affected. It is one of the prolific producers within the Organization of the Petroleum Exporting Countries.
* “The unrest in Kazakhstan has fuelled fears that oil production there could likewise be hampered,” Commerzbank AG said in a report. “And indeed production at the country’s largest oilfield was adjusted yesterday, as the operator reported.”
* Libya’s National Oil Co has already said that production has dropped to 729,000 bpd due to upstream shut-ins and unplanned maintenance of pipelines. According to Rystad Energy, if political tensions increase in the country, oil output is likely to be further affected. This would support prices next week.
* At 1921 IST
–January crude oil contract on Multi Commodity Exchange of India was up 0.9% at 5,953 rupees per barrel.
–February contract on the New York Mercantile Exchange was up 0.9% at $80.17 per bbl.
* In addition, production from the OPEC countries rose less than agreed by the cartel in December. This supported oil prices today and propelled West Texas Intermediate crude to over $80 per bbl for the first time since mid-November.
* Outlook for the evening session by Angel One Broking:
–MCX contract is seen at 5,660-6,100 rupees per bbl
–NYMEX contract is seen at $79.80-$80.85 per bbl.
End
US$1 = 74.31 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited Ashish Shirke
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