Informist, Tuesday, Oct 26, 2021

By Sayantan Sarkar

MUMBAI – Crude oil prices in India and the overseas market were flat today ahead of the release of weekly inventory data from the US. Prices had been in red for most of the day, after having hit over seven-year highs on Monday due to tight supply. 

* "There was no specific reason for the price slide," Commerzbank AG said in a report. "Some observers are pointing to the possible resumption of nuclear talks with Iran, though no official announcement of this has been made as yet," the German bank added. 

* At 1650 IST

  --The November crude oil contract on the Multi commodity Exchange of India was flat at 6,311 rupees per barrel. 

  --The December contract on New York Mercantile Exchange was flat at $83.80 per bbl.

* The American Petroleum Institute will release its weekly inventory data for crude oil later today, while the official data by the US Energy Information Administration will be released on Wednesday. 

* Meanwhile, reports claimed that Iran and the European Union were likely to hold talks later this week to revive the 2015 nuclear deal. If a deal is chalked out between Iran and other world powers, it could see the return of oil supplies from the West Asian country. Tehran is not allowed to export crude oil as it is currently under US sanctions. 

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

  --The MCX contract is seen at 6,220-6,350 rupees per bbl

  --The NYMEX contract is seen at $82-$85 per bbl

End

US$1 = 74.96 rupees

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

Edited by Mainak Moitra

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