Informist, Thursday, Jun 2, 2022
By Sayantan Sarkar
MUMBAI – Oil prices in India and abroad plunged on reports that the Organization of the Petroleum Exporting Countries, and its leader Saudi Arabia, may boost production to compensate for lower supply from Russia.
* According to a report by the Financial Times, Saudi Arabia is willing to boost production of oil significantly to offset lower output from Russia.
* Additionally, OPEC and its allies were reportedly mulling to leave out Russia from its output targets as Moscow's production levels have dropped significantly due to sanctions.
* "Nonetheless, it remains to be seen whether OPEC+ will be able to make considerably more oil available to the market without taking Russia into account," Commerzbank AG said in a report.
* Russia's oil production has fallen by 1 mln barrels per day since its invasion of Ukraine on Feb 24 as several countries have imposed sanctions on Moscow, while others opted to avoid supplies from the country.
* At 1631 IST:
--June contract on the Multi Commodity Exchange of India was down 3.4% at 8,996 rupees per barrel.
--July contract on the New York Mercantile Exchange was down 2.7% at $112.17 per bbl.
* OPEC and its allies are scheduled to hold a ministerial meeting later today to decide next month's production levels.
* Outlook for the evening session by HDFC Securities:
--MCX contract is seen at 8,590-9,010 rupees per bbl
--NYMEX contract is seen at $110-$116 per bbl
End
US$1 = 77.61 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Sushmita Mukherjee
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