Informist, Thursday, Oct 28, 2021

By Sayantan Sarkar

MUMBAI – Crude oil contracts on the Multi Commodity Exchange of India fell to a one-week low today tracking global prices, as inventories in the US rose sharply last week, dampening sentiment. 

* The US Energy Information Administration said oil inventories in the country rose by 4.3 mln barrels for the week ended Friday. Analysts had expected a much smaller increase. 

* At 1943 IST

  --The November crude oil contract on the MCX was down 1.8% at 6,108 rupees per bbl, and had hit a one-week low of 6,081        rupees per bbl earlier today. 

  --The December contract on New York Mercantile Exchange was down 1.6% at $81.33 per bbl, and had fallen to a two-week low      of $80.58 per bbl.

* However, petrol stocks declined last week, while inventories at Cushing, Oklahoma in the US were at their lowest level in more than three years, which indicated that supply was going to remain low in the months to come.

* "All of this shows that the US inventory data were not bearish enough to justify the price plunge," Commerzbank AG said in a report. "It is possible that one role was played by the news that Iran expects the nuclear talks to be resumed by the end of November," the German bank said. 

* Outlook for the evening session by Tapan Patel, senior analyst at HDFC Securities:

  --The MCX contract is seen at 6,050-6,240 rupees per bbl

  --The NYMEX contract is seen at $81-$85 per bbl. End

US$1 = 74.92 rupees

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

Edited by Snigdha Kuttikat

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