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India Crude: Down tailing NYMEX as Hurricane Ian may lower US demand

Informist, Friday, Sep 30, 2022

 

By Sayantan Sarkar

 

MUMBAI – Crude oil prices fell in India tracking those on New York Mercantile Exchange as Hurricane Ian is expected to lower demand for oil in the US Gulf region. 

 

* Hurricane Ian, which is headed for South Carolina in the US, is likely to cause widespread damage in the region. This will depress demand for oil. 

 

* Additionally, operations in refiners have already been hit, which means stockpiles of crude oil are likely to increase, weighing on overall demand. 

 

* At 2009 IST:
 –October contract on the Multi Commodity Exchange of India was down 2.0% at 6,563 rupees per bbl.

 –November contract on the New York Mercantile Exchange was down 1.1% at $80.28 per bbl.

 

* Meanwhile, investors are likely to shift their focus onto next week's ministerial meeting of the Organization of the Petroleum Exporting Countries and allies. The cartel is expected to cut supply of oil as prices have fallen sharply over the course of this month. 

 

* Meanwhile, according to reports, Russia is likely to urge OPEC to cut output by 1 mln bbl per day for November. "This would not come as a surprise given that the price of Russian Urals oil has tumbled this week to $61 per barrel," Commerzbank AG said in a report. 

 

* Outlook for the evening session:
 –MCX contract is seen at 6,390-6,990 rupees per bbl
 –NYMEX contract is seen at $80-$87 per bbl

 

End

 

US$1 = 81.34 rupees

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

 

Edited by Maheswaran Parameswaran

 

 

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