Rupee below 70 mark, crude slips below $60 - Abans Group

Rupee below 70 mark, crude slips below $60 & Commodities options volume drops

24th Nov – 30th Nov

1. Rupee strengthens against dollar on Fed comments and Oil decline

November 29, 2018

The rupee recovered to a 3-month high of 69.85 per US dollar over easing crude oil prices and fresh foreign capital inflows. In a major relief to energy importers like India, oil prices slipped below the $60 mark. A bullish trend in the equity market and a weak US Dollar further pushed up the rupee. The dollar weakened after US Federal Reserve Chairman Jerome Powell said that the central bank’s benchmark interest rate is likely near a “neutral level”.

Source: Money control

2. Russia is believed to be a partner with OPEC to cut production

November 29, 2018

Oil rebounded from the recent lows after industry sources said that Russia had accepted the need to cut production, together with OPEC ahead of its meeting next week. The Russian Energy Ministry held a meeting with the heads of domestic oil producers on Tuesday. OPEC members and its allies are meeting in Vienna on December 6-7. The market now expects that a cut of 1 million barrels per day would be possible from OPEC and its allies.

Source: Reuters

3. Investors turned to equities from commodity, options turnover drops

November 30, 2018

Commodities options trading turnover dropped almost 66% in the last two months as investors are shifting to equities from commodities. MCX and NCDEX have witnessed a decline in their turnover during the last two months in the recently launched ‘Options’ segment. As per reports from markets regulator Securities and Exchange Board of India (SEBI), the turnover of all the options contracts decreased from Rs. 466.24 billion in September 2018 to Rs. 156.45 billion in October.

Source: Business Standard

4. Inventory builds in US and supply from OPEC and Non OPEC sent Oil below $60 per barrel

November 28, 2018

U.S. crude inventories rose for the 10th straight week to 3.6 million barrels against market expectations; crude inventories rose almost by 14% in last 10 weeks. US production surged to 11.7 million barrels per day, and rising production from Saudi and Russia also added to worries about a return of a worldwide supply glut.

Source: Reuters

5. Physical gold demand picks up due to stronger rupee

November 28, 2018

Gold trade is seeing a recovery, from South India, that accounts for 40 per cent of India’s annual gold consumption of 800-850 tonnes. Gold prices had touched a high of Rs 32,020 per 10 gm on October 25 and has slipped to around Rs 30,815 per 10 gm this week. This buying move is expected to continue till January-end.

Source: Economic Times

6. Investors make an exit from Gold ETF

November 27, 2018

As per AMFI data, Gold ETF investors pulled out Rs. 290 crore during the April-October period of the current fiscal, in comparison to Rs. 422 crore in the first seven months of 2017-18. Gold funds AUM dropped by 8% to Rs. 4,621 crore in comparison to last year’s AUM of Rs. 5,017 Crore.

Source: Business Line

7. Saudis daily oil output crosses 11.20 million barrels from 10.8 million barrels

November 26, 2018

Saudi Arabia is pumping more oil to 11.20 million barrels per day, which is up from 10.80 million barrels per day; it has touched the highest level in the last 80 years. Saudi is believed to be responding to pressure from U.S. President Donald Trump to keep driving oil prices lower.

Source: Bloomberg

8. Improved Indo-US relations to push for more Oil import, refiners looking for a ‘consortium’

November 25, 2018

India and US are partners in many fields, but now the new sector has opened up. India began importing oil and gas from US worth about $4 billion starting this year which has more potential to expand further in coming years. Domestic refiners are looking for ‘consortium’ arrangements to expand more possibilities to do business with US.

Source: Business Line