India Crude: Up tailing NYMEX on higher-than-expected US stock fall

Wednesday, Aug 21


By Shrea Paul


MUMBAI – Crude oil contracts on the Multi Commodity Exchange of India rose, tracking the New York Mercantile Exchange, analysts said. Crude contracts rose on NYMEZ due to a higher-than-expected fall in US crude inventory.


At 1644 IST, the September contract on MCX was 1.3% higher at 4,071 rupees a barrel and the October delivery contract on NYMEX was up 1.1% at $56.77 a bbl.


US crude oil inventory fell 3.5 mln bbl to 439.8 mln in the week ended Friday, data from the American Petroleum Institute showed on Tuesday. This was higher than an expected 1.9-mln-bbl decline.


Inventory data from the US Energy Information Administration is due for release later today.


"The latest price rise is fundamentally justified, in our opinion. The oil market is currently under-supplied and will remain so for the rest of the year. We, therefore, envisage further upside potential for prices," a report by Commerzbank AG said.


Prices were also supported by data showing lower exports from Saudi Arabia in June. Saudi Arabia's oil exports declined to 6.72 mln bbl per day in June, down 220,000 bpd down from May, the report said citing data from the Joint Organisations Data Initiative.


According to reports, Saudi Arabia was likely to keep its oil exports below 7 mln bpd in August as well.


Earlier, sentiment was dampened by a bearish monthly report by the Organization of the Petroleum Exporting Countries, which slashed its forecast for 2019 demand growth for the second time in three months. It also cut its projection for global economic growth.



The MCX contract is seen at 3,920-4,120 rupees for the rest of the session, and the NYMEX contract at $54.87-$57.67, Angel Commodities said in a report.  End


US$1 = 71.53 rupees


Edited by Subham Mitra


Cogencis Tel +91 (22) 6619-0000

Send comments to


Other News

SEBI bars Fidelity Group trader from capital market for frontrunning

Friday, Dec 6 MUMBAI – The Securities and Exchange Board of India has banned a trader currently employed with foreign portfolio investor Fidelity Group, Vaibhav Dhadda, and two family members from buying or selling any securities in the capital market as they have been found prima facie involved in frontrunning of trades, the regulator said in an […]

Govt expects Central Bank to exit corrective action plan by end Mar

Friday, Dec 6 By Sagar Sen and Tushar Chakrabarty NEW DELHI – The finance ministry expects Central Bank of India to exit Reserve Bank of India's prompt corrective action framework by March, a senior ministry official said. "Out of the four PSU banks which were under the prompt corrective action framework at the beginning of the current fiscal, […]

FCI may raise 53 bln rupees more FY20 via govt-guaranteed bonds

Friday, Dec 6 By Sanjana Raina and Stuti Chawla NEW DELHI – Food Corp of India, which is aiming to raise 80 bln rupees through bonds next week, is likely to come up with another tranche of government-guaranteed bonds worth 52.62 bln rupees in the current financial year, a source told Cogencis today.  FCI had in February invited bids for […]