Informist, Monday, May 30, 2022

By Sayantan Sarkar

MUMBAI – Oil prices in India and abroad rose to over two-months highs today ahead of a meeting in which European countries are expected to take a decision on banning energy supplies from Russia. 

* The European Union countries are set to meet today and Tuesday to plan a sixth package of sanction on Moscow for its invasion of Ukraine in late February. 

* European Council chief Charles Michel had reportedly said he is confident that an agreement can be reached before the council's meeting today.

* The June contract of crude oil on the Multi Commodity Exchange of India rose to 9,015 rupees per barrel, its highest level since Mar 9. The July contract on New York Mercantile Exchange had risen to $116.39 per bbl, the highest since Mar 24. 

* At 1717 IST:

 --June contract on the Multi Commodity Exchange of India was up 0.9% at 8,977 rupees per barrel. 

 --July contract on the New York Mercantile Exchange was up 0.7% at $115.84 per bbl.

* "If any such watered-down oil embargo is put in place, Russia is unlikely to find it all that difficult to sell its oil to other consumers, primarily in Asia, meaning that the effects on the oil market should be limited," Commerzbank AG said in a report. 

* "All in all, the latest price surge thus appears excessive to us," the German bank added. 

* Additionally, lifting of lockdowns in Shanghai has spurred sentiments in the market. China is the top importer of crude oil. 

* In the US, the peak driving season, which started last week, is also expected to push up demand for fuel amid record high gasoline prices in the country. 

* Outlook for the evening session by HDFC Securities: 

 --MCX contract is seen at 8,910-9,150 rupees per bbl

 --NYMEX contract is seen at $112-$120 per bbl 

End

US$1 = 77.53 rupees

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

Edited by Maheswaran Parameswaran

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