Informist, Monday, May 23, 2022

By Sayantan Sarkar

MUMBAI – Oil prices in India and abroad rose today because of tight supply ahead of the peak driving season in the US. 

* Shanghai is preparing to reopen after a two-month-long lockdown, which also boosted the demand for crude today. 

* "Oil prices edged higher, as the persistent squeeze in refined petroleum products in the US, and the ever-present Ukraine-Russia risk underpinned prices, with the China slowdown and US recession noise limiting the gains," Jeffrey Haley, senior market analyst, Asia-Pacific at OANDA, said in a note. 

* At 1603 IST:

 --June contract on the Multi Commodity Exchange of India was up 0.4% at 8,655 rupees per barrel. 

 --July contract on the New York Mercantile Exchange was up 1.2% at $111.47 per bbl. 

* Recent data suggests that more people are driving in the US, with the number expected to rise further as the driving season approaches. 

* On the other hand, the European Union is facing resistance from Hungary in inking a deal, which will see Europe phase out Russian oil supply in the next six months. The upside in prices may be limited if the EU takes more time to approve the deal, according to experts.   

* Outlook for the evening session: 

 --MCX contract is seen at 8,470-8,980 rupees per bbl

 --NYMEX contract is seen at $112-$114 per bbl 

End

US$1 = 77.51 rupees

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

Edited by Namrata Rao

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