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India Crude: At 1-wk high; NYMEX up as output in Libya, Iraq hit

Monday, Jan 20

 

By Roshni Devi

 

MUMBAI – Crude oil contracts on the Multi Commodity Exchange of India and the New York Mercantile Exchange rose today as production was hit in key producers Libya and Iraq, analysts said.

 

At 1730 IST, the February crude contract on MCX was 0.9% higher at 4,202 rupees a bbl, while the same-month contract on NYMEX was up 0.5% at $58.83 a bbl.

 

Iraq, the second largest producer in the Organization of the Petroleum Exporting Countries, temporarily stopped work in an oilfield on Sunday due to unrest in the country. Supply from a second site is also under risk. Iraqis have been protesting for three months against government corruption and poor services. The protests had also led to a brief production halt at the Nasiriya field and refinery in December.

 

In Libya, the National Oil Corp declared force majeure after Commander Khalifa Haftar blocked exports from ports under his control. Two big oilfields in the southwest have started a production shutdown. The country's output may fall to 72,000 barrels per day from 1.2 mln bpd if the conflict continues.

 

"We do not expect the suspension of shipments from Libya to last, and expect production and exports to stabilise soon. This appears to be supported by the moderate price response so far," a Commerzbank AG report said.

 

Market activity may remain thin on NYMEX because of Martin Luther King Jr. holiday in the US.

 

OUTLOOK

For the rest of the day, the MCX contract is seen at 4,070-4,230 rupees per bbl, and the contract on NYMEX is seen at $57.85-$60.00 a bbl, said Angel Commodities.  End

 

US$1 = 71.10 rupees

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

 

Edited by Subham Mitra

 

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