Back

India Crude: Down on MCX, NYMEX flat on short covering; US data eyed

Informist, Friday, Aug 5, 2022

 

By Chinmay Mungse

 

MUMBAI – Crude oil prices in India were trading lower today, pressured by a stronger rupee against the US dollar. A stronger rupee makes the greenback-denominated commodity cheaper for the Indian investors.

 

* Benchmark crude oil contracts on the New York Mercantile Exchange were flat today as investors covered their short positions after prices hit a six-month low on Thursday.

 

* Rise in the US crude oil inventories and demand concerns pressure the most active September crude oil contract on the NYMEX to a six-month low of $87.55 per barrel.

 

* "Crude oil prices fall due to demand concerns and rising US stocks. Prices corrected in this week and finding support at lower levels," said Manoj Jain, research head at Prithvi Finmart.

 

* Crude oil prices came under pressure as talks to revive the nuclear deal between Iran and world powers. The European Union, US and Iran are holding talks in Vienna to revive Iran’s nuclear program and bring their oil production back to global markets.

 

* "The resumption of talks between the EU, the US and Iran put pressure on crude oil prices as the supply might increase if the deal materializes," said Ajay Kedia, research head at Kedia Comtrade.

 

* Further, Libya has resolved the domestic political tensions and might resume oil production which could spur the global oil supply by 1 mln barrel per day.

 

* At 1619 IST:
 –August contract on the Multi Commodity Exchange of India was down 0.3% at 7,016 rupees per bbl.

 –September contract on the NYMEX was flat at $88.47 per bbl.

 

* Investors are now eyeing the US non-farm payrolls data which is scheduled to release later today. Analysts are expecting the non-farm payrolls in the US to increase by 200,000 for July, lower than the 372,000 increase in June. 

 

* Outlook for the evening session:
 –MCX contract is seen at 6,900-7,100 rupees per bbl
 –NYMEX contract is seen at $87.50-$89.00 per bbl

 

 

End

 

US$1 = 79.23 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Sushmita Mukherjee

 

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2022. All rights reserved.

 

Other News

Ernst & Young renews Mumbai office lease at 6.7 mln rupees a month

Informist, Saturday, Sep 24, 2022 Janaki Krishnan  MUMBAI – Accounting and consultancy services firm Ernst & Young has renewed the lease of its office premises in central Mumbai for 30 months, at a monthly rent of 6.65 mln rupees.  The office is located on the 17th floor of 'The Ruby' building in Dadar area. The total carpet area the company […]

Indonesia may double subsidy for CPO farmers to boost productivity

Informist, Friday, Sep 23, 2022 –Indonesia official: To double CPO subsidy to farmers–To double farmer CPO subsidy to 60 mln rupiah/ha–CPO output seen up at 49 mln tn in 2023 By Puja Das NEW DELHI – Indonesia is likely to double the subsidy given to crude palm oil growers to 60 mln rupiah (323,545.1 rupees) per ha for 2023 as […]

Banks want bond forwards, RBI mulling it over, sources say

Informist, Friday, Sep 23, 2022 By T. Bijoy Idicheriah and Pratigya Vajpayee MUMBAI – Some banks have urged the Reserve Bank of India to allow bond forward contracts, a fixed income derivative that is also being increasingly sought out by various categories of bond investors, sources said. A bond forward is a derivative contract to buy or sell […]