Informist, Friday, May 14, 2021

By Sayantan Sarkar

MUMBAI – Crude oil prices in India and abroad rose over 1% today, recouping losses from Thursday, as expectations of stronger demand by the end of the year supported sentiment across the market. 

* Major energy organisations have said that they expect demand for crude oil to be significantly higher in Jul-Dec compared with the first two quarters of 2021. The International Energy Agency had even said that demand will outpace supply by December. 

* At 1740 IST

    --The May crude oil contract on Multi Commodity Exchange of India was up 1.4% at 4,737 rupees a barrel. 

    --The June delivery contract on New York Mercantile Exchange was up 1.3% at $64.63 per bbl.

* Oil prices had slumped on Thursday after the Colonial Pipeline in the US said they were restarting operations. The pipeline, which is one of the biggest in the US and ships a significant amount of crude products to the eastern part of the country, had to shut down its network after a cyberattack last week. 

* Meanwhile, US inflation data showed that consumer prices rose by the fastest pace in over 12 years in April. This led to fears that the US Federal Reserve could raise interest rates sooner rather than later, if inflation continues to rise.

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

    --The MCX contract is seen at 4,590-4,730 rupees per bbl.

    --The NYMEX contract is seen at $62-$65 per bbl. End

US$1 = 73.28 rupees

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

Edited by Snigdha Kuttikat

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