Informist, Tuesday, Nov 9, 2021

By Chinnay Mungse

MUMBAI – Crude oil prices in India and abroad rose today as better than expected export data from China and the passage of the $1-trln infrastructure bill by the US Congress painted a positive picture for global economic growth, said analysts.

* Exports from China increased 20.3% on year in October, well above analysts' expectations of 17%. "China's positive economic statistics are expected to boost energy consumption, which will be bullish for the crude oil prices," said Mahesh Kumar, head of commodities at Abans Group.

* China is the top importer of crude oil in the world, while the US is the largest producer of the commodity. 

* The oil market is currently under supplied amid rising demand. Consumption will increase as winter approaches. The Organization of the Petroleum Exporting Countries and allies' has been unwilling to raise output beyond 400,000 bbl per day every month, leading to a rise in prices.

* The US President Joe Biden had reportedly said that the cartel was responsible for higher petrol prices in the country, and his administration may have to take steps such as releasing oil from its strategic petroleum reserves to cool prices.

* However, there is very little Biden can do to arrest rising oil prices, even if he authorises releases from the Strategic Petroleum Reserves, according Jeffrey Halley, senior market analyst at OANDA. 

* At 1810 IST

  --The November crude oil contract on the Multi Commodity Exchange of India was up 0.8% at 6,105 rupees per bbl

  --The December contract on New York Mercantile Exchange was up 0.7% at $82.49 per bbl.

* "However, worries over the return of Iranian oil in the global markets, increasing US crude stocks and a hike in prices by Saudi Arabia might turn out to be a setback for crude prices," said Angel One Commodities.

* Outlook for the evening session:

  --The MCX contract is seen at 6,050-6,170 rupees per bbl

  --The NYMEX contract is seen at $81-$85 per bbl.

End

US$1 = 74.03 rupees

Edited by Pranav S. Joshi

Cogencis news is now Informist. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2021. All rights reserved.