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India Crude:Up; NYMEX gains on report Saudi Arabia won’t raise output

Informist, Friday, Jul 15, 2022

 

By Sayantan Sarkar  

 

MUMBAI – Oil prices in India rose today, tracking benchmark international contracts after reports that the US does not expect Saudi Arabia to increase production. 

 

* US President Joe Biden is scheduled to fly to Saudi Arabia to meet leaders of Gulf countries to discuss more oil production later today. The market was expecting the US to talk Saudi Arabia and other countries in the region into pumping more oil. 

 

* According to a report by Reuters, Saudi Arabia is unlikely to raise oil production. The news comes at a time when the Organization of the Petroleum Exporting Countries and its allies have been struggling to meet their output quotas every month. 

 

* Except Saudi Arabia and the United Arab Emirates, no other members of the OPEC have any means to raise output further. 

 

* At 1801 IST:

 –July contract on the Multi Commodity Exchange of India was up 2.2% at 7,759 rupees per bbl.

 –August contract on the New York Mercantile Exchange was up 1.4% at $97.19 per bbl.

 

* The rise in crude oil prices today was also due to a technical rebound as both global and local contracts had slipped to multi-month lows on Thursday. 

 

* Investors will monitor the meeting between Biden and leaders of the Gulf countries for any developments regarding oil production from the region. 

 

* Outlook for the evening session by HDFC Securities:

 –MCX contract is seen at 7,450-7,850 rupees per bbl

 –NYMEX contract is seen at $92-$98 per bbl 

 

End

 

US$1 = 79.88 rupees

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

 

Edited by Avishek Dutta

 

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