Informist, Friday, Apr 1, 2022
By Sayantan Sarkar
MUMBAI – Crude oil prices in India and abroad slumped today ahead of a meeting of the member countries of International Energy Agency, where officials are expected to discuss releasing crude oil from their strategic reserves.
* The meeting is expected to take place at a time when the US is said to be planning to release 180 mln barrels of crude oil over the next six months to cool down rising prices.
* At 1810 IST
--April contract on the Multi Commodity Exchange of India was down 2.7% at 7,551 rupees per bbl.
--May contract on the New York Mercantile Exchange was down 1.2% at $99.09 per bbl.
* According to Commezbank AG, the massive release of crude oil from the US will be enough to balance the market in the second quarter, and may also create a bit of a supply glut.
* However, experts believe this will only bring temporary relief to prices. Moreover, it will also substantially deplete US' strategic reserves, which are already at a 20-year low. A 180-mln release will drag Washington's reserves to a 40-year low.
* "That Biden felt it was necessary in the first place to release such an unprecedented amount of oil reserves was probably due in part to the behavior of OPEC+ (Organization of the Petroleum Exporting Countries and allies)," Commerzbank AG said in a release.
* OPEC and its allies stuck to their existing plan of increasing output by 400,000 bpd in May even as other countries called for more supply to balance the market and tackle higher inflation.
* Outlook for the evening session by Geojit Financial Services:
--MCX contract is seen at 7,215-8,148 rupees per bbl
--NYMEX contract is seen at $97.97-$106.11 per bbl
End
US$1 = 75.78 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
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. 2022. All rights reserved.
