Commodity Trading News

India is faced with a major issue of crude oil touching a 27-month high of $95.26 per barrel. The country�s crude oil import basket has been rising in line with the global price. This is a problem because India meets about 80 per cent of its consumption through imports. The Indian basket of crude oil has averaged $92.85 per barrel in January so far. Oil marketing companies (OMCs) are scheduled to declare their December quarter results in the last week of January, and are expected to report losses. �This is an extremely worrisome situation for the domestic economy, the industry and consumers.

This is a cause for concern for a company like ours, as the cost of oilfield services also moves up and this offsets the increase in realisation. I apprehend the rally may not halt here,� said R S Sharma, chairman and managing director, Oil and Natural Gas Corporation (ONGC). All OMCs are required to sell diesel, kerosene and liquefied petroleum gas (cooking gas) at government-set prices, resulting in losses. Presently, they are incurring under-recovery of Rs 7 per litre on diesel, Rs 19.60 per litre on kerosene and Rs 366 per cylinder on domestic LPG.

The prices of gold and silver declined as a result of the emergence of selling activity by the stockists due to the decline in the overseas trend.

The silver fell by Rs 225 to Rs 45,250 per kg due to the restricted offtake by the industrial units while gold shed Rs 10 to Rs 20,685 per 10 grams on less buying activity at increased levels.

The gold in the overseas markets fell by $4.60 to $1,383.40 an ounce while locally silver ready plunged by Rs 225 to Rs 45,250 per kg and weekly-based delivery by Rs 140 to Rs 44,980 per kg.

The silver coins fell by Rs 400 to Rs 50,500 for buying and Rs 50,600 for selling of 100 pieces.

The gold of 99.9 and 99.5 per cent purity shed Rs 10 each to Rs 20,685 and Rs 20,565 per 10 grams, respectively, in line with the general weakening trend while the sovereign remained stable at Rs 16,950 per piece of eight grams in restricted trade activity.

Moreover, the fresh selling by stockists in tandem with the decline in the overseas trend also influenced the prices.

It has been informed that the cost of cooking and daily commuting in Delhi may witness a hike during this year. The sources have said that the prices of CNG might increase by 8% periodically this year. Indraprastha Gas Ltd , which sells CNG (compressed natural gas) in the Capital and its eastern suburbs such as Ghaziabad, Noida and Greater Noida said that, “it is expected to raise retail price of the fuel sold to buses, taxis, autos and private vehicles by over Re 1 a kg every three months or so. By December, then, CNG price will go up by over Rs 4 a kg, or about 7-8%.” “The increase is inevitable because the quantity of gas under government control earmarked is insufficient to meet the growing demand,” the company said. As per the government documents, IGL is involved in buying gas imported via ships with the two fold prices when compared to the domestic fields.


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