Crude Oil - June 21, 2022 - Reliance Securities

Posted On : 2022-06-21 23:17:06( TIMEZONE : IST )

Crude Oil - June 21, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

Brent Crude prices rebounded on Monday in volatile trading on Monday, as traders focused on tight supplies over slowing global economic growth.

Domestic crude oil futures ended stronger on Monday, tracking Brent Crude prices.

The market remains cautious about disruptions to Russian oil as European sanctions kick in.

However, uncertainty over global growth in the face of inflation and rising interest rates capped upside.

However, trading was muted due to the Juneteenth holiday on Monday.

Libya's oil production has remained volatile following blockades by groups in the country's east, with its output most recently pegged at 700,000 per day.

Meanwhile, prospects are dwindling for Iranian sanctions relief that could result in a meaningful increase in the country's crude exports.

International prices have started higher this early Tuesday morning in Asian trade prices rose as the focus returned to tight supply of crude and fuel products.

However, concerns about a recession hitting demand could cap upside.

Today's range for NYMEX July contract is $108.20-$112.90.

Today's range for BRENT August contract is $112.27-$115.25.

Domestic crude oil prices could start flat to higher this Tuesday morning, tracking a recovery in the overseas prices.

Today's range for MCX July contract is 8395-8570.

NYMEX Natural gas (NG) were shut on Monday due to the Juneteenth holiday on Monday.

Indian NG prices tumbled on Monday continued to be weighed down by extended shutdown of the Freeport LNG export plant in Texas.

The decline also came on forecasts calling for lower demand the week-ending June 10 and the week-ending June 17, but weather conditions could change at any time.

NYMEX NG prices have started gap down this Tuesday morning in Asian trade due to Freeport LNG surprisingly remaining shut until at least September.

However, tight US supplies and hot weather patterns could cap downside.

Today's range for NG July contract is $5.980-$7.140.

Domestic NG prices could start weaker this Tuesday morning tracking a negative start in the overseas prices.

Today's range for NG June contract is 513.67-534.47.

Source : Equity Bulls


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