Informist, Thursday, Oct 14, 2021

By Rahul Dhuri

MUMBAI – Crude oil prices in India and abroad rose today because of weakness in the US dollar against major currencies and a firm demand outlook for the commodity, said analysts.

* Global demand for crude oil is expected to rise sharply in Oct-Dec, supported by seasonal petrochemical and heating fuel consumption as well as the possibility of a switch to oil from natural gas in the power generation sector, the Organization of the Petroleum Exporting Countries said.

* Oil prices extended gains following a release by the International Energy Agency showing forecasts for as much as 500,000 barrels a day of extra oil demand in the coming months as a result of gas-to-oil switching.

* "An acute shortage of natural gas, LNG, and coal supply stemming from the gathering global economic recovery has sparked a precipitous run-up in prices for energy supplies and is triggering a massive switch to oil products and direct crude use for power generation," the energy agency said.

* At 1705 IST

  --The October crude oil contract on Multi Commodity Exchange of India was up 1.1% at 6,129 rupees per bbl

  --The November contract on New York Mercantile Exchange was up 1.2% at $80.77 per bbl.

End

US$1 = 75.36 rupees

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

Edited by Akul Nishant Akhoury

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