Informist, Tuesday, Dec 7, 2021

By Sayantan Sarkar

MUMBAI – Crude oil prices rose sharply in India and abroad for the second consecutive session as optimism that the new strain of COVID-19 may not lead to travel bans, raised demand prospects. 

* According to Commerzbank, prices are continuing recovery after an almost 5% rebound on Monday, with Omicron, the new COVID-19 strain, appearing to be less severe than the previously dominant variant.

* "If this is confirmed, the effects on oil demand are likely to be far less severe than suggested by the dramatic collapse in price," the bank said in a report.

* At 1732 IST

  --The December crude oil contract on the Multi Commodity Exchange of India was up 4.3% at 5,422 rupees per bbl.

  --The January contract on the New York Mercantile Exchange was up 3.4% at $71.81 per bbl. 

* Meanwhile, an impasse in nuclear talks between Iran, and the US and other world powers boosted market sentiment further as likelihood of oil supply from Tehran in the coming months dwindled. 

* "Western officials are increasingly concerned that Iran's advancing nuclear activities will scuttle hopes of reviving the 2015 nuclear deal, a top foreign policy goal of the Biden administration," Dow Jones wire said in a report. 

* Outlook for the evening session by Kotak Securities:

  --The MCX contract is seen at 5,161-5,456 rupees per bbl

  --The NYMEX contract is seen at $68.35-$73.40 per bbl.  End 

US$1 = 75.44 rupees

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

Edited by Aditya Sakorkar

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