Crude oil on the boil, Indian Aluminium exports sour & looming US sanctions on Iran

21st July – 27th July

1. The rupee is a relative outperformer among emerging market peers

June 27, 2018

The rupee is a relative outperformer among emerging-market peers in the past one month, signalling that the worst might be over for the local unit that has fallen less than the currencies of competing major economies against the dollar.

Lower crude oil prices and the weakening dollar index have helped turn the sentiment in favour of the rupee, which is otherwise the worst performing Asian currency this year. The rupee has fallen 7.2% in 2018.

Source: ET

2. Iran sanctions and its consequences

June 27, 2018

Iran extends shipping, insurance cover to keep oil flowing to India , India may use an Iranian bank to channel payment for oil NSE 1.87 % import from the Islamic republic after the US sanctions against buyers of Iranian crude take effect in November even as India hopes to receive US waiver of sanctions. Indian and US officials recently met in New Delhi and shared their concerns and constraints with respect to the implementation of the Iran sanctions and its consequences.

Source: ET

3. Saudi Arabia halts oil exports in the red sea lane

June 27, 2018

Saudi Arabia halts oil exports in red sea lane after Houthi attacks, Saudi Arabia said on Thursday it was suspending oil shipments through the Red Sea’s Bab al-Mandeb Strait, one of the world’s most important tanker routes, after Yemen’s Iran-aligned Houthis attacked two ships in the waterway. Brent futures rose 19 cents to $74.12 a barrel by 1305 GMT, extending their rally into the third day but slipping from a 10-day high in earlier trading.


4. India’s 2018-19 Sugar production could touch an all-time high of 355 lakh tonnes

June 27, 2018

Higher minimum selling price (MSP) and lower sugar release quota for the month of July have seen prices firming up and millers are unwilling to export at lower realisations in another year of surplus production. India’s 2018-19 production could touch an all-time high of 355 lakh tonnes, a 10% jump from 2017-18, when the country’s expected production will be 322.5 lakh tonnes, according to estimates of Indian Sugar Mills Association (ISMA).


5. Higher MSP, good rains may raise gold demand in h2

June 25, 2018

Higher minimum support (MSP) for Kharif (summer) crops and good rains across the country have raised hopes for a better second half for the gold trade. Though demand in the first half of 2018 has been tepid, the trade is expecting a 25% growth in the second half compared to H2 of 2017. The growth will be largely driven by rural India that accounts for 60% of the country’s total annual gold consumption of 800-850 tonnes.

Source: ET

6. Trump may kill the global recovery

June 24, 2018

How does the current global economic outlook compare to that of a year ago? In 2017, the world economy was undergoing a synchronized expansion, with growth accelerating in both advanced economies and emerging markets. Moreover, despite stronger growth, inflation was tame – if not falling – even in economies like the United States, where goods and labour markets were tightening.

Source: project-syndicate

7. Iran Replaces Saudi Arabia As 2nd Largest Oil Supplier To India

June 24, 2018

Iran was the second-biggest oil supplier to Indian state refiners between April and June, India's oil minister Dharmendra Pradhan said today, replacing Saudi Arabia as companies took advantage of steeper discounts offered by Tehran. India, Iran's top oil client after China, shipped in 5.67 million tonnes or about 457,000 barrels per day (bpd) of oil from the country in the first three months of this fiscal year, Mr Pradhan told lawmakers in a written reply.

Source: NDTV

8. Saudi Aramco is winning thanks to U.S. President Donald Trump’s trade war

June 21, 2018

Saudi Aramco is winning thanks to U.S. President Donald Trump’s trade war with China. Sales of liquefied petroleum gas by the state-run producer to China -- one of its biggest Asian customers -- this year have already reached 90 per cent of all shipments in 2017, according to data from tanker-tracking and intelligence firm Kepler. That’s because buyers in the Asian nation are seeking alternatives to American cargoes as a trade war between the world’s two biggest economies escalates with tariffs targeting billions of dollars worth of products.

Source: Bloomberg