The U.S.-China trade war and the growth of American oil supply will keep crude prices in check, notwithstanding Middle East tensions, according to the head of one of India’s biggest refiners.
Oil prices rose more than 2 per cent on Monday on concerns that Iran’s seizure of a British tanker last week may lead to supply disruptions in the energy-rich Gulf.
Despite competing demands for its crude oil from other countries, the Nigerian National Petroleum Corporation (NNPC) yesterday restated its commitment to sustaining the supply of 10 percent of India’s crude oil demand.
Crude oil futures fell 0.2 per cent to Rs 3,908 per barrel Thursday after participants reduced positions amid a weak trend in global markets. On the Multi Commodity Exchange, crude oil for delivery in July contracts shed Rs 8, or 0.2 per cent, to Rs 3,908 per barrel with a business volume of 19,992 lots.
The crude oil outlook released by a couple of organisations in the last few days should be a relief to India. Going by the outlook from the Organisation of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA)
Oil prices rose on Wednesday after steep falls in the previous session, although US crude trailed gains for international benchmark Brent after US crude inventories fell less than expected. West Texas Intermediate crude futures were up 6 cents at $57.68 by 0327 GMT, having fallen 3.3 per cent on Tuesday.
Last week, crude oil prices continued their upward trajectory as US oil producers in the Gulf of Mexico have cut their output by more than half as they prepare for a tropical storm.
Road Transport and Highways Minister Nitin Gadkari on Friday said the country needs to reduce its dependence on import of oil and advocated for use of ethanol to make environment pollution free.
Crude oil prices rose 0.8 per cent to Rs 4,149 per barrel in futures trade Thursday as speculators raised their exposure on positive global cues. On the Multi Commodity Exchange, crude for July delivery went up by Rs 33, or 0.8 per cent, to Rs 4,149 per barrel in a business turnover of 23,033 lots.
India’s crude oil production in May this year fell 7 per cent to 2,800 Thousand Metric Tonne (TMT) due to fall in production from fields operated by Oil and Natural Gas Corporation (ONGC), Oil India and private operators.