Informist, Thursday, Apr 28, 2022
By Sayantan Sarkar
MUMBAI – Oil prices in India were flat today, while those in international markets fell due to concerns about lower demand from China.
* Authorities have been conducting mass tests for COVID-19 cases in Beijing, and are trying to avert a situation like Shanghai. Demand for oil in Shanghai has been hit as the city has been under a lockdown for over a month now.
* Though there are indications of an easing og the outbreak, fuel demand in the world’s top crude importer is still expected to take a big hit this month, analysts said.
* The dollar’s surge against a basket of major currencies also weighed on the prices of oil. The greenback has been rallying on expectation of the US Federal Reserve raising interest rates at its upcoming meeting in May.
* Also, media reports claimed that major European companies may comply with the Russian demand of paying for oil and gas shipments in rubles, which further weighed on sentiments.
* “I have some doubts as to whether Europe’s politicians will allow its private energy companies to capitulate to the Kremlin,” Jeffrey Halley, senior market analyst, Asia Pacific at OANDA, said in a report. “That may bring forward more weaponizing of gas supplies by Russia. In this case, any retreat in oil prices could be the eye of the hurricane.”
* At 1650 IST:
–May contract on the Multi Commodity Exchange of India was flat at 7,795 rupees per barrel.
–June contract on the New York Mercantile Exchange was down 0.5% at $101.55 per bbl.
* Outlook for the evening session by Angel One Commodities:
–MCX contract is seen at 7,520-7,960 rupees per bbl
–NYMEX contract is seen at $100.15-$101.65 per bbl
End
US$1 = 76.48 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Pranav S. Joshi
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