Gold and other <a href="https://www.wionews.com/business-economy/gold-hits-two-month-peak-on-dollar-weakness-us-strikes-270962">safe-haven</a>&nbsp;assets including Oil prices increased over&nbsp;$2 a barrel on Friday because of&nbsp;the US&nbsp;killing of a top <a href="https://www.wionews.com/world/rocket-attack-on-baghdad-airport-top-iran-commander-killed-271756">Iranian commander</a> in an airstrike in Iraq ratcheted up tensions between the two national powers.&nbsp;

Traders were clearly spooked. The death of Iranian <a href="https://www.wionews.com/world/president-trump-ordered-action-against-irans-quds-force-commander-soleimani-us-department-of-defence-271773">Major-General Qassem Soleimani</a>, head of the elite Quds Force, prompted Iranian Supreme Leader Ayatollah Ali Khamenei to vow revenge.

Europe's <a href="https://www.wionews.com/business-economy/oil-prices-surge-after-us-strike-kills-iranian-general-271775">stock markets</a> fell 0.5 per cent&nbsp;in early trading as hopes for a lengthy New Year rally vanished. Safe havens gained, with Japan's yen rising half a per cent to the dollar to a two-month high and the Swiss franc hitting its highest against the euro since September.

The Middle East-focused oil markets saw the most dramatic moves. <a href="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/oil-prices-steady-on-track-for-biggest-yearly-rise-since-2016-271227&amp;sa=U&amp;ved=2ahUKEwiN_7-hm-fmAhU0yzgGHRcGDn8QFjACegQICBAC&amp;usg=AOvVaw0VUxWW0N1ASYhJBKQq-jha">Brent crude</a> futures jumped nearly $3 to $69.16 a barrel,&nbsp;also the highest since September,&nbsp;before easing back to $68.42.

"We are only into the third day of the new year, and a big fat dollop of geopolitical uncertainty has landed on investors' desks," said <a href="https://www.wionews.com/business-economy/gold-climbs-to-three-month-high-poised-for-best-year-since-2010-271231">Jeffrey Halley</a>, senior market analyst for Asia Pacific at broker OANDA.

"I am struggling to see how an Iranian riposte will not occur," he said. "Oil installations and tankers were my first thoughts."

Soleimani's Quds Force and its paramilitary proxies, ranging from <a href="https://www.wionews.com/opinions/the-killing-of-iranians-general-qasem-soleimani-and-its-consequences-271884">Lebanon's Hezbollah</a> to the PMF in Iraq, have ample means to mount a multi-pronged response.

In September, US&nbsp;officials blamed Iran for a missile and drone attack on oil installations of Saudi Aramco, the Saudi state energy giant and world's largest oil exporter. The Trump administration did not respond, beyond heated rhetoric and threats.

German Bunds and US&nbsp;Treasuries,&nbsp;the world's benchmark government bonds, caught a bid, too. Ten-year German yields, which move inversely to prices, fell further away from seven-month highs touched earlier in the week. US&nbsp;10-year yields fell 5 basis points to a three-week low.

The focus on geopolitics meant markets paid little attention to stronger-than-expected data from France, where inflation rose 1.6 per cent&nbsp;year-on-year in December, beating analyst expectations for a 1.4 per cent&nbsp;rise.

"Markets still remain quite thin after the holidays, but even in a regular session we would have seen a similar reaction," said Christian Lenk, a rates strategist at DZ Bank in <a href="https://www.wionews.com/business-economy/german-court-bans-uber-services-via-rental-cars-in-germany-269165">Frankfurt</a>. "The repercussions from the airstrike are not clearly forecastable and tensions remain high in the region."

The airstrikes in Iraq also killed top Iraqi militia commander Abu Mahdi al-Muhandis. They came after US&nbsp;Defense Secretary Mark Esper said on Thursday there were indications Iran or forces it backed might be planning additional attacks, after Iranian-backed demonstrators stormed the US&nbsp;embassy in Baghdad.

Gold, a traditional refuge for risk-averse investors, rose 1 per cent&nbsp;to a four-month high of $1,543.66. For the week, it has gained about 2 per cent, heading for a fourth consecutive weekly increase.

"After the recent escalations in geopolitical issues, we see a resistance level near the $1,575 level for the next week," said Jigar Trivedi, a commodities analyst at <a href="https://www.wionews.com/business-economy/indian-shares-slip-on-year-end-profit-booking-nifty-set-for-13-jump-in-2019-271230">Anand Rathi Shares</a> &amp; Stock Brokers in Mumbai.

Gold and other safe-haven assets including Oil prices increased over $2 a barrel on Friday because of the US killing of a top Iranian commander in an airstrike in Iraq ratcheted up tensions between the two national powers.

Gold and other safe-haven assets including Oil prices increased over $2 a barrel on Friday because of the US killing of a top Iranian commander in an airstrike in Iraq ratcheted up tensions between the two national powers. Traders were clearly spooked. The death of Iranian Major-General Qassem Soleimani, head of the elite Quds Force, prompted Iranian Supreme Leader Ayatollah Ali Khamenei to vow revenge. Europe's stock markets fell 0.5 per cent in early trading as hopes for a lengthy New Year rally vanished. Safe havens gained, with Japan's yen rising half a per cent to the dollar to a two-month high and the Swiss franc hitting its highest against the euro since September. The Middle East-focused oil markets saw the most dramatic moves. Brent crude futures jumped nearly $3 to $69.16 a barrel, also the highest since September, before easing back to $68.42. "We are only into the third day of the new year, and a big fat dollop of geopolitical uncertainty has landed on investors' desks," said Jeffrey Halley, senior market analyst for Asia Pacific at broker OANDA. "I am struggling to see how an Iranian riposte will not occur," he said. "Oil installations and tankers were my first thoughts." Soleimani's Quds Force and its paramilitary proxies, ranging from Lebanon's Hezbollah to the PMF in Iraq, have ample means to mount a multi-pronged response. In September, US officials blamed Iran for a missile and drone attack on oil installations of Saudi Aramco, the Saudi state energy giant and world's largest oil exporter. The Trump administration did not respond, beyond heated rhetoric and threats. German Bunds and US Treasuries, the world's benchmark government bonds, caught a bid, too. Ten-year German yields, which move inversely to prices, fell further away from seven-month highs touched earlier in the week. US 10-year yields fell 5 basis points to a three-week low. The focus on geopolitics meant markets paid little attention to stronger-than-expected data from France, where inflation rose 1.6 per cent year-on-year in December, beating analyst expectations for a 1.4 per cent rise. "Markets still remain quite thin after the holidays, but even in a regular session we would have seen a similar reaction," said Christian Lenk, a rates strategist at DZ Bank in Frankfurt. "The repercussions from the airstrike are not clearly forecastable and tensions remain high in the region." The airstrikes in Iraq also killed top Iraqi militia commander Abu Mahdi al-Muhandis. They came after US Defense Secretary Mark Esper said on Thursday there were indications Iran or forces it backed might be planning additional attacks, after Iranian-backed demonstrators stormed the US embassy in Baghdad. Gold, a traditional refuge for risk-averse investors, rose 1 per cent to a four-month high of $1,543.66. For the week, it has gained about 2 per cent, heading for a fourth consecutive weekly increase. "After the recent escalations in geopolitical issues, we see a resistance level near the $1,575 level for the next week," said Jigar Trivedi, a commodities analyst at Anand Rathi Shares & Stock Brokers in Mumbai.

Global Markets: Oil, gold, safe haven assets prices rose as US strike kills Iranian commander

<a href="https://www.wionews.com/business-economy/oil-eases-but-supported-by-trade-deal-hopes-269679">Oil&nbsp;prices</a>&nbsp;edged&nbsp;higher&nbsp;on Tuesday in thin pre-Christmas trading after Russia's energy minister said cooperation with OPEC to&nbsp;support&nbsp;the market would continue and as analysts&nbsp;forecast&nbsp;a second weekly decline in <a href="https://www.wionews.com/business-economy/oil-falls-as-us-inventories-rise-but-demand-hopes-stem-bigger-drop-268973">US&nbsp;crude inventories</a>.

Brent crude was up 5 cents at $66.44 a barrel by 0321 GMT. US&nbsp;West Texas Intermediate was 1 cent&nbsp;higher&nbsp;at $60.53 a barrel.

OPEC, Russia and other producers that have linked up to curtail production and&nbsp;support&nbsp;prices&nbsp;will continue their cooperation as long as it is "effective and brings results," Russian energy minister <a href="https://www.wionews.com/business-economy/opec-and-allies-prepare-to-deepen-oil-output-cuts-266447">Alexander Novak</a> said in an interview on Monday.

Cooperation with the Organization of the Petroleum Exporting Countries (<a href="https://www.wionews.com/business-economy/oil-slips-as-opec-gears-up-to-confirm-supply-cut-266600">OPEC</a>) would continue "until the market requires it," Novak added.

OPEC and other producers agreed in November to extend and deepen output curbs in place since 2017. The reduction of output could see as much as 2.1 million barrels per day (bpd) taken off the market, or about 2 per cent&nbsp;of global demand.

Still, OPEC needs to do more to balance out the market on a sustainable basis, Bjornar Tonhaugen, head of&nbsp;oil&nbsp;market research at Rystad Energy said in a note.

"The OPEC&nbsp;cuts&nbsp;didn't fully solve the problem&nbsp;instead they offer a light bandage to get through the first quarter of 2020," said Tonhaugen, adding "after that, we believe the market will begin to realize the looming oversupply."

US&nbsp;producers have been happy to fill any gaps in the market, pumping ever greater amounts of crude to reach a record high of around 13 million bpd in November.

That has helped swell inventories, which have been stubbornly resistant to drawdowns. US&nbsp;stocks are up around 1 per cent&nbsp;this year.

Crude stocks are, however, expected to have fallen by about 1.8 million barrels last week, a second week of declines, according to a preliminary&nbsp;poll.

Still, <a href="https://www.wionews.com/business-economy/oil-gains-on-us-crude-stocks-fall-opec-comments-on-slower-us-shale-growth-262061">gasoline stocks</a> are expected to have risen for a seventh week in a row and distillate inventories are&nbsp;forecast&nbsp;to have gained for a fifth consecutive week.

Oil prices edged higher on Tuesday in thin pre-Christmas trading after Russia's energy minister said cooperation with OPEC to support the market would continue and as analysts forecast a second weekly decline in US crude inventories.

Oil prices edged higher on Tuesday in thin pre-Christmas trading after Russia's energy minister said cooperation with OPEC to support the market would continue and as analysts forecast a second weekly decline in US crude inventories. Brent crude was up 5 cents at $66.44 a barrel by 0321 GMT. US West Texas Intermediate was 1 cent higher at $60.53 a barrel. OPEC, Russia and other producers that have linked up to curtail production and support prices will continue their cooperation as long as it is "effective and brings results," Russian energy minister Alexander Novak said in an interview on Monday. Cooperation with the Organization of the Petroleum Exporting Countries (OPEC) would continue "until the market requires it," Novak added. OPEC and other producers agreed in November to extend and deepen output curbs in place since 2017. The reduction of output could see as much as 2.1 million barrels per day (bpd) taken off the market, or about 2 per cent of global demand. Still, OPEC needs to do more to balance out the market on a sustainable basis, Bjornar Tonhaugen, head of oil market research at Rystad Energy said in a note. "The OPEC cuts didn't fully solve the problem instead they offer a light bandage to get through the first quarter of 2020," said Tonhaugen, adding "after that, we believe the market will begin to realize the looming oversupply." US producers have been happy to fill any gaps in the market, pumping ever greater amounts of crude to reach a record high of around 13 million bpd in November. That has helped swell inventories, which have been stubbornly resistant to drawdowns. US stocks are up around 1 per cent this year. Crude stocks are, however, expected to have fallen by about 1.8 million barrels last week, a second week of declines, according to a preliminary poll. Still, gasoline stocks are expected to have risen for a seventh week in a row and distillate inventories are forecast to have gained for a fifth consecutive week.

Oil prices inch higher in pre-Christmas trading

Oil jumped above $61 a barrel on Monday, supported by <a href="https://www.wionews.com/business-economy/opecs-share-of-indian-oil-imports-fell-down-43-lowest-since-2011-263065">hints that OPEC</a> and its allies may agree to deepen output cuts at a meeting this week and as rising manufacturing activity in China suggested stronger demand.

The Organization of the Petroleum Exporting Countries and allies including Russia are expected to extend output cuts this week and could increase the size of the curb by at least 400,000 barrels per day (bpd), two sources said.

"There is a discussion about a deeper cut taking place," an OPEC source said, citing forecasts of oversupply in the first six months of 2020. "There is a big stock build in the first half of the year - we need to keep an eye on that."

Brent crude, the global benchmark, rose $1.13 to $61.62 a barrel by 1426 GMT. US West Texas Intermediate (WTI) crude added $1.07 to $56.24.

The so-called OPEC+ group has coordinated output for three years to balance the market and support prices. Their current deal to cut supply by 1.2 million bpd started in January and expires at the end of March 2020.

"Any sign of discontent between the producers will send out negative signals and will put significant downward pressure on the oil price," said Tamas Varga of oil broker PVM. "We believe this is unlikely to happen."

OPEC's ministers will meet in Vienna on Thursday and the wider OPEC+ group will gather on Friday.

On Friday Brent and US crude both fell on concerns that talks to end the trade war between the United States and China, the world's two biggest oil consumers, would be disrupted by US support for protesters in Hong Kong.

Oil also rose on Monday because of an unexpected return to growth in Chinese factory activity in November as domestic demand picked up on Beijing's accelerated stimulus measures. That is supportive of the oil demand outlook.

But US production keeps rising, led by shale oil, filling the gaps left by OPEC. Output in September increased to a record 12.46 million bpd, the U.S. government said in a monthly report on Friday.

It is not certain OPEC+ will agree this week to deepen its curbs. Some in the group are wary measures to support prices will encourage more U.S. production.

"A deeper cut could boost prices, which would bring on more shale output and not help," the OPEC source said.

Oil jumped above $61 a barrel on Monday, supported by hints that OPEC and its allies may agree to deepen output cuts at a meeting this week and as rising manufacturing activity in China suggested stronger demand.

Oil jumped above $61 a barrel on Monday, supported by hints that OPEC and its allies may agree to deepen output cuts at a meeting this week and as rising manufacturing activity in China suggested stronger demand. The Organization of the Petroleum Exporting Countries and allies including Russia are expected to extend output cuts this week and could increase the size of the curb by at least 400,000 barrels per day (bpd), two sources said. "There is a discussion about a deeper cut taking place," an OPEC source said, citing forecasts of oversupply in the first six months of 2020. "There is a big stock build in the first half of the year - we need to keep an eye on that." Brent crude, the global benchmark, rose $1.13 to $61.62 a barrel by 1426 GMT. US West Texas Intermediate (WTI) crude added $1.07 to $56.24. The so-called OPEC+ group has coordinated output for three years to balance the market and support prices. Their current deal to cut supply by 1.2 million bpd started in January and expires at the end of March 2020. "Any sign of discontent between the producers will send out negative signals and will put significant downward pressure on the oil price," said Tamas Varga of oil broker PVM. "We believe this is unlikely to happen." OPEC's ministers will meet in Vienna on Thursday and the wider OPEC+ group will gather on Friday. On Friday Brent and US crude both fell on concerns that talks to end the trade war between the United States and China, the world's two biggest oil consumers, would be disrupted by US support for protesters in Hong Kong. Oil also rose on Monday because of an unexpected return to growth in Chinese factory activity in November as domestic demand picked up on Beijing's accelerated stimulus measures. That is supportive of the oil demand outlook. But US production keeps rising, led by shale oil, filling the gaps left by OPEC. Output in September increased to a record 12.46 million bpd, the U.S. government said in a monthly report on Friday. It is not certain OPEC+ will agree this week to deepen its curbs. Some in the group are wary measures to support prices will encourage more U.S. production. "A deeper cut could boost prices, which would bring on more shale output and not help," the OPEC source said.

Oil prices jump to $61 over OPEC+ supply cut reports

Oil prices pulled back from their highest levels in nearly two months on Friday amid lingering doubts on whether the United States and China will be able to reach a partial <a href="https://www.wionews.com/world/want-to-work-out-preliminary-trade-deal-with-united-states-not-afraid-of-retaliating-chinese-president-jinping-263827">trade deal </a>that would lift some pressure on the global economy.

That was more than enough to offset news of a likely extension of production cuts by major producers that drove prices higher in the previous session.

Brent crude futures dropped 34 cents, or 0.53%, to $63.63 a barrel by 0745 GMT, while West Texas Intermediate (WTI) crude futures fell 31 cents, also down 0.53%, to $58.27 per barrel.

China has invited top US&nbsp;trade negotiators for a new round of face-to-face talks in Beijing amid continued efforts to strike at least a limited deal, the Wall Street Journal reported on Thursday citing unidentified sources.

"The key factor for the demand outlook for oil is the (US-China) trade negotiation currently going on," said Michael McCarthy, chief market strategist at CMC Markets and Stockbroking in Sydney.

"With oil near the top of recent trading ranges it's no surprise to see a bit of selling pressure during the session today."

Prices had touched their highest since late September on Thursday after Reuters reported that the Organization of the Petroleum Exporting Countries (OPEC) and Russia are likely to extend existing production cuts by another three months to mid-2020 when they meet on Dec. 5.

Oil was also buoyed by comments from China's commerce ministry on Thursday that it will strive to reach an initial agreement with the United States to end the pair's long-running trade war, allaying fears that talks might be unravelling. However, the completion of a phase one deal could slide into next year.

News that last week saw the biggest drawdown in three months for US&nbsp;crude stock stockpiles at Cushing, Oklahoma also underpinned prices earlier this week. Cushing is the delivery point for WTI futures.

Elsewhere, traders are also keeping a keen eye on the impact on oil production at OPEC countries Iran and Iraq amid ongoing protests.

Several major economies - the United States, France and Germany - will release manufacturing data later today which could impact the market, McCarthy said.

Oil prices pulled back from their highest levels in nearly two months on Friday amid lingering doubts on whether the United States and China will be able to reach a partial trade deal that would lift some pressure on the global economy.

Oil prices pulled back from their highest levels in nearly two months on Friday amid lingering doubts on whether the United States and China will be able to reach a partial trade deal that would lift some pressure on the global economy. That was more than enough to offset news of a likely extension of production cuts by major producers that drove prices higher in the previous session. Brent crude futures dropped 34 cents, or 0.53%, to $63.63 a barrel by 0745 GMT, while West Texas Intermediate (WTI) crude futures fell 31 cents, also down 0.53%, to $58.27 per barrel. China has invited top US trade negotiators for a new round of face-to-face talks in Beijing amid continued efforts to strike at least a limited deal, the Wall Street Journal reported on Thursday citing unidentified sources. "The key factor for the demand outlook for oil is the (US-China) trade negotiation currently going on," said Michael McCarthy, chief market strategist at CMC Markets and Stockbroking in Sydney. "With oil near the top of recent trading ranges it's no surprise to see a bit of selling pressure during the session today." Prices had touched their highest since late September on Thursday after Reuters reported that the Organization of the Petroleum Exporting Countries (OPEC) and Russia are likely to extend existing production cuts by another three months to mid-2020 when they meet on Dec. 5. Oil was also buoyed by comments from China's commerce ministry on Thursday that it will strive to reach an initial agreement with the United States to end the pair's long-running trade war, allaying fears that talks might be unravelling. However, the completion of a phase one deal could slide into next year. News that last week saw the biggest drawdown in three months for US crude stock stockpiles at Cushing, Oklahoma also underpinned prices earlier this week. Cushing is the delivery point for WTI futures. Elsewhere, traders are also keeping a keen eye on the impact on oil production at OPEC countries Iran and Iraq amid ongoing protests. Several major economies - the United States, France and Germany - will release manufacturing data later today which could impact the market, McCarthy said.

Oil topples from two-month high on concern over US-China trade deal

Oil prices rose nearly 3 per cent on Wednesday, boosted by a wider market pickup on positive news from <a href="https://www.wionews.com/business-economy/oil-prices-pegged-back-by-mounting-concern-over-us-economy-246329">China's services sector</a>, after three days of losses due to fears about a weakening global economy.

Brent crude was up $1.55, or 2.66 per cent, at $59.81 a barrel by 1401 GMT, while US&nbsp;West Texas Intermediate futures gained $1.56, or 2.66 per cent, to $55.50 a barrel.

Global markets rebounded after a private survey showed that activity in China's services sector expanded at the fastest pace in three months in August as new orders rose, prompting the biggest increase in hiring in more than a year.

China is the world's second-largest oil consumer and largest importer.

But US&nbsp;President Donald Trump on Tuesday warned he would be "tougher" on Beijing in a second term if trade talks dragged on, compounding market fears that trade disputes between the two countries could trigger a US&nbsp;recession.

US&nbsp;data released on Wednesday showed manufacturing activity contracted in August for the first time in three years, while euro zone activity shrank for a seventh month.

Some analysts argued that the overall fundamentals of the oil market remained discouraging.

"The bullish bandwagon seen earlier this year will not be making another appearance," Stephen Brennock of oil broker PVM said.

Data due this week on US&nbsp;oil inventory levels will be delayed by a day to Wednesday and Thursday because of the US&nbsp;Labor Day holiday on Monday.

US&nbsp;crude stockpiles are expected to have declined for a third straight week, a Reuters poll showed on Tuesday.

"Crude oil remains troubled by reports that production from OPEC, Russia and the US&nbsp;all rose last month. This (comes) at a time when the strength of demand growth, due to trade war pessimism, has increasingly been called into question," Saxo Bank commodity strategist Ole Hansen said.

But supply looks set to stay constrained as Russian officials and OPEC sources indicated the countries would remain committed to their agreement to rein in production despite a shake-up in Saudi Arabia's oil industry.

In a possible sign of tension easing in the energy-rich Gulf, Iranian state television reported on Wednesday that Tehran would free seven crew members of the detained British-flagged tanker Stena Impero.

The vessel was seized two weeks after Britain detained an Iranian tanker off the territory of Gibraltar which was released in August.

Oil prices rose nearly 3 per cent on Wednesday, boosted by a wider market pickup on positive news from China's services sector, after three days of losses due to fears about a weakening global economy.

Oil prices rose nearly 3 per cent on Wednesday, boosted by a wider market pickup on positive news from China's services sector, after three days of losses due to fears about a weakening global economy. Brent crude was up $1.55, or 2.66 per cent, at $59.81 a barrel by 1401 GMT, while US West Texas Intermediate futures gained $1.56, or 2.66 per cent, to $55.50 a barrel. Global markets rebounded after a private survey showed that activity in China's services sector expanded at the fastest pace in three months in August as new orders rose, prompting the biggest increase in hiring in more than a year. China is the world's second-largest oil consumer and largest importer. But US President Donald Trump on Tuesday warned he would be "tougher" on Beijing in a second term if trade talks dragged on, compounding market fears that trade disputes between the two countries could trigger a US recession. US data released on Wednesday showed manufacturing activity contracted in August for the first time in three years, while euro zone activity shrank for a seventh month. Some analysts argued that the overall fundamentals of the oil market remained discouraging. "The bullish bandwagon seen earlier this year will not be making another appearance," Stephen Brennock of oil broker PVM said. Data due this week on US oil inventory levels will be delayed by a day to Wednesday and Thursday because of the US Labor Day holiday on Monday. US crude stockpiles are expected to have declined for a third straight week, a Reuters poll showed on Tuesday. "Crude oil remains troubled by reports that production from OPEC, Russia and the US all rose last month. This (comes) at a time when the strength of demand growth, due to trade war pessimism, has increasingly been called into question," Saxo Bank commodity strategist Ole Hansen said. But supply looks set to stay constrained as Russian officials and OPEC sources indicated the countries would remain committed to their agreement to rein in production despite a shake-up in Saudi Arabia's oil industry. In a possible sign of tension easing in the energy-rich Gulf, Iranian state television reported on Wednesday that Tehran would free seven crew members of the detained British-flagged tanker Stena Impero. The vessel was seized two weeks after Britain detained an Iranian tanker off the territory of Gibraltar which was released in August.

Oil prices rise nearly 3% on China service sector expansion

Oil prices clawed back the previous day's losses on Friday, with Brent nudging above $60 a barrel, as tighter supplies from key producers offset slowing demand growth while investors await clues from the Federal Reserve on US monetary policy.

Brent crude rose 10 cents to $60.02 a barrel by 0118 GMT, while US crude futures were at $55.38 a barrel, up 3 cents. Both contracts were on track for a second weekly gain.

"Oil is set to trade quietly today as it's all about the Jackson Hole (meeting) tonight," Jeffrey Halley, a Singapore-based senior market analyst at brokerage Oanda.

"What we're seeing is some profit-taking in Asia in very light volumes."

A speech by Federal Reserve Chair Jerome Powell later on Friday t a meeting of central bankers in Jackson Hole is expected to provide some clues on whether the Fed will cut interest rates for a second time this year to boost the US economy.

Traders' expectations of further U monetary easing were clouded by comments from two Fed officials who said on Wednesday that they do not see a case for a rate cut now.

A reduction in interest rates could strengthen the US dollar against other currencies and make dollar-denominated oil more costly for investors.

Oil prices are down for nearly two straight months after the International Energy Agency and the Organization of Petroleum Exporting Countries cut demand growth forecasts as a simmering US-China trade war hit global economic growth.

However, oil prices remained supported by production cuts from OPEC members and Russia while US sanctions have sharply reduced exports from Iran and Venezuela.

Oil prices clawed back the previous day's losses on Friday, with Brent nudging above $60 a barrel, as tighter supplies from key producers offset slowing demand growth while investors await clues from the Federal Reserve on US monetary policy.

Oil prices clawed back the previous day's losses on Friday, with Brent nudging above $60 a barrel, as tighter supplies from key producers offset slowing demand growth while investors await clues from the Federal Reserve on US monetary policy. Brent crude rose 10 cents to $60.02 a barrel by 0118 GMT, while US crude futures were at $55.38 a barrel, up 3 cents. Both contracts were on track for a second weekly gain. "Oil is set to trade quietly today as it's all about the Jackson Hole (meeting) tonight," Jeffrey Halley, a Singapore-based senior market analyst at brokerage Oanda. "What we're seeing is some profit-taking in Asia in very light volumes." A speech by Federal Reserve Chair Jerome Powell later on Friday t a meeting of central bankers in Jackson Hole is expected to provide some clues on whether the Fed will cut interest rates for a second time this year to boost the US economy. Traders' expectations of further U monetary easing were clouded by comments from two Fed officials who said on Wednesday that they do not see a case for a rate cut now. A reduction in interest rates could strengthen the US dollar against other currencies and make dollar-denominated oil more costly for investors. Oil prices are down for nearly two straight months after the International Energy Agency and the Organization of Petroleum Exporting Countries cut demand growth forecasts as a simmering US-China trade war hit global economic growth. However, oil prices remained supported by production cuts from OPEC members and Russia while US sanctions have sharply reduced exports from Iran and Venezuela.

Oil prices eke out small gains ahead of Federal Reserve Chair Jerome Powell speech

The RBI on August 7, 2019, reduced the repo rate by 35 bps from 5.75 per cent to 5.40 per cent. This is the fourth consecutive cut in a row this year. It also tempered the GDP growth estimates to 6.9 per cent in line with CRISIL.

While the rate cut is 10 bps more than street estimates, it highlights that the central bank recognises the severity of the current slowdown. Including this rate cut, RBI has reduced repo rate (the rate at which it lends to banks) by 110 bps this year (1.10 per cent), and it is at its lowest level in the last nine years.

The RBI governor in a press briefing expressed confidence that this cut would give a boost to investment, consumption and growth. While decline in rate cuts are likely to reduce EMIs for individuals and cost of borrowing for corporates, it alone is not likely to spur growth.

Firstly, the banks do not pass on the full benefits of rate cuts to consumers. Out of the 75-bps rate cut before the August announcement, banks have passed on only 29 bps benefit to end consumers, less than 40 per cent.

Generally, it takes two to three months for transmission, some could argue. Even by this logic, banks have passed on only 60 per cent&nbsp;benefit. Private banks have been laggards compared to public sector banks. Also, lenders generally pass on more benefits on new loans rather than existing ones.

Just because the EMIs have come down, people would not be tempted to invest in two-wheelers, cars and real estate as consumption depends a lot on sentiment. Consumer confidence declined in July 2019 due to deterioration in sentiments on jobs, price levels and the general economic situation, according to RBI’s own survey.

For the first time in the last decade, FMCG companies are witnessing a decline in their volumes, 5.5 per cent in Q1 FY20 versus 12 per cent in Q1 FY19, according to a Prabhudas Liladhar report. Rural demand has been badly hit due to low farm incomes and wage growth.

The real estate sector is sitting on an all-time high inventory of 12.76 lakh houses in the top 30 cities. The entire auto industry is witnessing a slowdown as never before. Maruti Suzuki reported its sixth consecutive monthly sales decline with numbers falling 33 per cent in July 2019 while TVS Motors reported a decline of 13 per cent.

Maruti for the sixth month in a row has announced production cuts of 25 per cent. As per reports, 2.3 lakh workers have been laid off. This has had a knock-on effect on OEM and auto ancillary sectors, which employ significant number of contractual workers.

Since auto and real estate sectors contribute 15 per cent-17 per cent to India’s GDP, their slowdown has had a direct impact on other sectors like metals and mining, cement and tyre manufacturing, among others.&nbsp;

The manufacturing industry is operating at a capacity utilisation of 75 per cent. Growth in eight core sectors fell to four-year low of 0.2 per cent in June 2019.&nbsp;

Until and unless the manufacturing industry sees a permanent revival in demand and reduction in idle capacity utilisations, it may not think of fresh investments.

Banks, on the other hand, are still reeling from high NPAs. The delay in IBC insolvency cases is hurting the banks, which continue to adopt a selective and cautious approach to lending. Even the retail portfolio of banks is showing signs of stress. The liquidity crunch, post the IL&amp;FS default and the NBFC crisis has not helped matters.

The Indian economy is facing an acute demand side issue and RBI cannot fix it alone. The government missed the opportunity to leave more money in the hands of people through tax cuts in Budget 2019. Instead, the finance minister increased taxes on the super-rich, which has acted as a dampener.

Since tight fiscal math prevents the government from increasing its spending, like it did, post the global financial crisis, India will need to fall back on private consumption expenditure to boost demand and growth. The new Direct Tax Code, which is expected to propose sweeping changes in tax rates should be implemented next year without fail. Till then, all eyes on the festive season! 
 
(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-are-the-rate-cuts-enough-to-boost-growth-2782948">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp;

The RBI on August 7, 2019, reduced the repo rate by 35 bps from 5.75 per cent to 5.40 per cent. This is the fourth consecutive cut in a row this year. It also tempered the GDP growth estimates to 6.

The RBI on August 7, 2019, reduced the repo rate by 35 bps from 5.75 per cent to 5.40 per cent. This is the fourth consecutive cut in a row this year. It also tempered the GDP growth estimates to 6.9 per cent in line with CRISIL. While the rate cut is 10 bps more than street estimates, it highlights that the central bank recognises the severity of the current slowdown. Including this rate cut, RBI has reduced repo rate (the rate at which it lends to banks) by 110 bps this year (1.10 per cent), and it is at its lowest level in the last nine years. The RBI governor in a press briefing expressed confidence that this cut would give a boost to investment, consumption and growth. While decline in rate cuts are likely to reduce EMIs for individuals and cost of borrowing for corporates, it alone is not likely to spur growth. Firstly, the banks do not pass on the full benefits of rate cuts to consumers. Out of the 75-bps rate cut before the August announcement, banks have passed on only 29 bps benefit to end consumers, less than 40 per cent. Generally, it takes two to three months for transmission, some could argue. Even by this logic, banks have passed on only 60 per cent benefit. Private banks have been laggards compared to public sector banks. Also, lenders generally pass on more benefits on new loans rather than existing ones. Just because the EMIs have come down, people would not be tempted to invest in two-wheelers, cars and real estate as consumption depends a lot on sentiment. Consumer confidence declined in July 2019 due to deterioration in sentiments on jobs, price levels and the general economic situation, according to RBI’s own survey. For the first time in the last decade, FMCG companies are witnessing a decline in their volumes, 5.5 per cent in Q1 FY20 versus 12 per cent in Q1 FY19, according to a Prabhudas Liladhar report. Rural demand has been badly hit due to low farm incomes and wage growth. The real estate sector is sitting on an all-time high inventory of 12.76 lakh houses in the top 30 cities. The entire auto industry is witnessing a slowdown as never before. Maruti Suzuki reported its sixth consecutive monthly sales decline with numbers falling 33 per cent in July 2019 while TVS Motors reported a decline of 13 per cent. Maruti for the sixth month in a row has announced production cuts of 25 per cent. As per reports, 2.3 lakh workers have been laid off. This has had a knock-on effect on OEM and auto ancillary sectors, which employ significant number of contractual workers. Since auto and real estate sectors contribute 15 per cent-17 per cent to India’s GDP, their slowdown has had a direct impact on other sectors like metals and mining, cement and tyre manufacturing, among others. The manufacturing industry is operating at a capacity utilisation of 75 per cent. Growth in eight core sectors fell to four-year low of 0.2 per cent in June 2019. Until and unless the manufacturing industry sees a permanent revival in demand and reduction in idle capacity utilisations, it may not think of fresh investments. Banks, on the other hand, are still reeling from high NPAs. The delay in IBC insolvency cases is hurting the banks, which continue to adopt a selective and cautious approach to lending. Even the retail portfolio of banks is showing signs of stress. The liquidity crunch, post the IL&FS default and the NBFC crisis has not helped matters. The Indian economy is facing an acute demand side issue and RBI cannot fix it alone. The government missed the opportunity to leave more money in the hands of people through tax cuts in Budget 2019. Instead, the finance minister increased taxes on the super-rich, which has acted as a dampener. Since tight fiscal math prevents the government from increasing its spending, like it did, post the global financial crisis, India will need to fall back on private consumption expenditure to boost demand and growth. The new Direct Tax Code, which is expected to propose sweeping changes in tax rates should be implemented next year without fail. Till then, all eyes on the festive season! (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Oil rises more than 1% after a drone attack on Saudi field

Oil prices rose around 1 per cent on Friday, steadying after an overnight plunge following US President Donald Trump's move to impose more tariffs on Chinese imports, intensifying a trade war that has hit global growth.

Brent crude slumped more than 7 per cent on Thursday, its steepest drop in more than three years. US crude fell nearly 8%, posting its worst day in more than four years,

The collapse ended a fragile rally built on steady drawdowns in US inventories, even as global demand looked shaky due to the trade dispute between the world's two biggest economies.

Brent was up 67 cents, or 1.1%, at $61.17 a barrel by 0049 GMT, while US crude was up 50 cents, or 0.9%, at $54.45 a barrel.

Trump said on Thursday he would impose a 10 per cent tariff on $300 billion of Chinese imports from September 1 and could raise tariffs further if China's President Xi Jinping fails to move more quickly to strike a trade deal.

The announcement extends Trump's tariffs to nearly all China's imports into the United States and marks an abrupt end to a temporary truce in a trade war that has disrupted global supply chains and roiled financial markets.

Prices "had already been under pressure before the tariff announcement, with weak US manufacturing data raising concerns about weak demand for oil," ANZ Research said in a morning note.

US manufacturing activity slowed to a near three-year low in July and construction spending fell in June as investment in private construction projects tumbled to its lowest level in 1-1/2 years.

Total US oil demand in May fell 98,000 bpd to 20.26 million bpd, data showed earlier this week.&nbsp;

OPEC and partners including Russia, an alliance known as OPEC+, have been curbing output this year to support the market.&nbsp;

In July, OPEC production revisited a 2011 low, helped by a further cut by Saudi Arabia, a Reuters survey showed.

Oil prices rose around 1 per cent on Friday, steadying after an overnight plunge following US President Donald Trump's move to impose more tariffs on Chinese imports, intensifying a trade war that has hit global growth.

Oil prices rose around 1 per cent on Friday, steadying after an overnight plunge following US President Donald Trump's move to impose more tariffs on Chinese imports, intensifying a trade war that has hit global growth. Brent crude slumped more than 7 per cent on Thursday, its steepest drop in more than three years. US crude fell nearly 8%, posting its worst day in more than four years, The collapse ended a fragile rally built on steady drawdowns in US inventories, even as global demand looked shaky due to the trade dispute between the world's two biggest economies. Brent was up 67 cents, or 1.1%, at $61.17 a barrel by 0049 GMT, while US crude was up 50 cents, or 0.9%, at $54.45 a barrel. Trump said on Thursday he would impose a 10 per cent tariff on $300 billion of Chinese imports from September 1 and could raise tariffs further if China's President Xi Jinping fails to move more quickly to strike a trade deal. The announcement extends Trump's tariffs to nearly all China's imports into the United States and marks an abrupt end to a temporary truce in a trade war that has disrupted global supply chains and roiled financial markets. Prices "had already been under pressure before the tariff announcement, with weak US manufacturing data raising concerns about weak demand for oil," ANZ Research said in a morning note. US manufacturing activity slowed to a near three-year low in July and construction spending fell in June as investment in private construction projects tumbled to its lowest level in 1-1/2 years. Total US oil demand in May fell 98,000 bpd to 20.26 million bpd, data showed earlier this week. OPEC and partners including Russia, an alliance known as OPEC+, have been curbing output this year to support the market. In July, OPEC production revisited a 2011 low, helped by a further cut by Saudi Arabia, a Reuters survey showed.

Oil prices steady after Trump trade tariffs spark plunge

Brewing <a href="https://www.wionews.com/business-economy/asia-stocks-higher-ahead-of-fed-pound-pressured-by-fresh-brexit-pain-239341">no-deal Brexit</a> worries sent the pound sinking towards a two-year low versus the euro and roughed up Irish bonds on Tuesday, while stock markets wilted before what is expected to be the first cut in rates since the financial crisis.

Europe's markets suffered a stormy start as the pound followed its worst day of the year with another 0.5% swoon against all the major currencies.

A blizzard of fiery talk on Monday that included the new UK Prime Minister Boris Johnson called his predecessor's Brexit plans dead and its new foreign minister labelling the European Union "stubborn" kept the slide intact.

<a href="https://www.wionews.com/world/uk-plays-brexit-hardball-with-stubborn-european-union-pound-falls-to-a-two-year-low-239235">Sterling fell</a> as far as $1.2120, which was its lowest against the dollar since March 2017, and to 91.85 pence per euro, the weakest since September 2017.

Options markets were pointing to more pain too. Three-month implied volatility, a contract that expires just before the October&nbsp;31 Brexit deadline, jumped to over 11 vols, the highest since before March 29, the original date for Britain to leave the European Union.

"The pound is in a very precarious state, it is as simple as that," said TD Securities' European head of currency strategy Ned Rumpeltin.

"We are now in a different regime," he said, referring to Johnson's explicit agenda of taking Britain out of the EU, whether or not transitional trading agreements are in place.

It was not just sterling reeling either.

Irish government bond yield spreads over Germany hit their widest levels in over a month at 24 basis points, on worries about the damage a no-deal Brexit would do to Ireland's economy.

Other eurozone government bond yields were holding near recent lows ahead of the Federal Reserve meeting which is expected to deliver a 25 basis point rate cut on Wednesday and potentially signal more on the way.

Germany's 10-year government bond yield was hovering near the minus 0.40% mark.

European shares slipped as grim forecasts from German chemicals and drugs giant Bayer and airline Lufthansa soured sentiment, although the weakness of the pound kept London's blue-chip FTSE index just about out of the red.

With concerns about global growth still bubbling among investors, a GfK survey also showed German consumer morale worsening for the third month in a row heading into August as trade disputes bit in Europe's biggest exporter.

"Most markets are down this morning," said Simona Gambarini, a markets economist at Capital Economics. "The S&amp;P closed lower yesterday. We have a few data releases regarding the eurozone that could push equity prices down but I think everyone is waiting for the Fed meeting."

Aussie Gold

Asia had been a bit more positive overnight.

Japan's Nikkei rose 0.4%, showing a limited reaction to the Bank of Japan's widely anticipated decision to stand pat on monetary policy. Shanghai rose 0.3% and Hong Kong's Hang Seng edged up 0.2%.

Australian stocks stole the glory again though with another record high, as buoyant mining shares added to tech-driven gains the previous day.

The BOJ added that it would ease policy again "without hesitation" if the economy loses momentum for achieving the central bank's 2% inflation target.

Also drawing some attention were US-China trade negotiations which begin in Shanghai on Tuesday, although expectations for progress during the two-day meeting are low with the markets hoping the two sides can at least detail commitments for "goodwill" gestures.

Among commodities, crude oil prices extended the previous day's gains, with the Fed's expected easing fuelling optimism that it would boost the economy and fuel demand in the world's biggest oil consumer.

US crude futures were up 0.65% at $57.24 per barrel and Brent crude added 0.6% to $64.09. Gold was down 0.1% at $1,425 per ounce.

Brewing no-deal Brexit worries sent the pound sinking towards a two-year low versus the euro and roughed up Irish bonds on Tuesday, while stock markets wilted before what is expected to be the first cut in rates since the financial crisis.

Brewing no-deal Brexit worries sent the pound sinking towards a two-year low versus the euro and roughed up Irish bonds on Tuesday, while stock markets wilted before what is expected to be the first cut in rates since the financial crisis. Europe's markets suffered a stormy start as the pound followed its worst day of the year with another 0.5% swoon against all the major currencies. A blizzard of fiery talk on Monday that included the new UK Prime Minister Boris Johnson called his predecessor's Brexit plans dead and its new foreign minister labelling the European Union "stubborn" kept the slide intact. Sterling fell as far as $1.2120, which was its lowest against the dollar since March 2017, and to 91.85 pence per euro, the weakest since September 2017. Options markets were pointing to more pain too. Three-month implied volatility, a contract that expires just before the October 31 Brexit deadline, jumped to over 11 vols, the highest since before March 29, the original date for Britain to leave the European Union. "The pound is in a very precarious state, it is as simple as that," said TD Securities' European head of currency strategy Ned Rumpeltin. "We are now in a different regime," he said, referring to Johnson's explicit agenda of taking Britain out of the EU, whether or not transitional trading agreements are in place. It was not just sterling reeling either. Irish government bond yield spreads over Germany hit their widest levels in over a month at 24 basis points, on worries about the damage a no-deal Brexit would do to Ireland's economy. Other eurozone government bond yields were holding near recent lows ahead of the Federal Reserve meeting which is expected to deliver a 25 basis point rate cut on Wednesday and potentially signal more on the way. Germany's 10-year government bond yield was hovering near the minus 0.40% mark. European shares slipped as grim forecasts from German chemicals and drugs giant Bayer and airline Lufthansa soured sentiment, although the weakness of the pound kept London's blue-chip FTSE index just about out of the red. With concerns about global growth still bubbling among investors, a GfK survey also showed German consumer morale worsening for the third month in a row heading into August as trade disputes bit in Europe's biggest exporter. "Most markets are down this morning," said Simona Gambarini, a markets economist at Capital Economics. "The S&P closed lower yesterday. We have a few data releases regarding the eurozone that could push equity prices down but I think everyone is waiting for the Fed meeting." Aussie Gold Asia had been a bit more positive overnight. Japan's Nikkei rose 0.4%, showing a limited reaction to the Bank of Japan's widely anticipated decision to stand pat on monetary policy. Shanghai rose 0.3% and Hong Kong's Hang Seng edged up 0.2%. Australian stocks stole the glory again though with another record high, as buoyant mining shares added to tech-driven gains the previous day. The BOJ added that it would ease policy again "without hesitation" if the economy loses momentum for achieving the central bank's 2% inflation target. Also drawing some attention were US-China trade negotiations which begin in Shanghai on Tuesday, although expectations for progress during the two-day meeting are low with the markets hoping the two sides can at least detail commitments for "goodwill" gestures. Among commodities, crude oil prices extended the previous day's gains, with the Fed's expected easing fuelling optimism that it would boost the economy and fuel demand in the world's biggest oil consumer. US crude futures were up 0.65% at $57.24 per barrel and Brent crude added 0.6% to $64.09. Gold was down 0.1% at $1,425 per ounce.

Stormy sterling sinks again, stocks wilt before Fed

Oil prices rose on Friday and were on track for a weekly increase as geopolitical tensions over Iran remained unresolved, although flagging prospects for global economic growth amid the <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/trade-war-like-the-one-going-on-between-us-and-china-foolish-thailand-ambassador-at-wion-world-order-238434&amp;sa=U&amp;ved=2ahUKEwij9_GHsNLjAhUbHo8KHfTpAw0QFjADegQIDxAC&amp;usg=AOvVaw3q6V_pmXlrHO0FOtaqNfXk">US-China trade war</a> capped gains.

Brent crude futures were up 23 cents at $63.62 per barrel at 0922 GMT, equivalent to a weekly rise of around 1.8%. They fell 6% last week.

US West Texas Intermediate crude was 25 cents higher at $56.27 a barrel, a weekly gain of 1.1%. It fell to 7.5% last week.

Tensions remained high around the Strait of Hormuz, the world's most important oil passageway, as Iran refused to release a British-flagged tanker it seized last week in the Gulf.

US Secretary of State Mike Pompeo said Washington had asked Japan, France, Germany, South Korea, Australia, and other nations to join a maritime security initiative in the Middle East so oil and other products can flow through the strait.

However, oil prices' reaction to the strains in the Gulf has been relatively muted. "It appears that the majority of market participants do not expect a military conflict that would hamper oil shipments," Commerzbank analyst Carsten Fritsch said.

Prices also drew support from a crude inventory draw in the United States, but gains were limited as the fall appeared to have been largely anticipated. The US production in the Gulf of Mexico was still feeling the effects of Hurricane Barry.

WATCH:&nbsp;Iran-UK tanker tensions: Iran releases 9 crew members

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"Several indicators pointing to a slowdown of global oil demand growth appear to have taken over market sentiment," Jefferies analyst Jason Gammel said.

Reuters polls taken July 1-24 showed the growth outlook for nearly 90% of the more than 45 economies surveyed was downgraded or left unchanged. That applied not just to this year but also in 2020.

"Growing challenges in the macroeconomic environment have kept bullish bets in check as risk appetites remain soft over potential weakness in global fuel demand," said Benjamin Lu, commodities analyst at Singapore-based Phillip Futures.

The slowdown in global manufacturing and trade, and the associated hit to oil consumption, largely stems from a US-China trade war that has rumbled on over the last year.

Trade talks between the two countries broke down in May after nearing an agreement. Next week, the top US and Chinese negotiators meet for the first time since then. Any positive outcome of the meeting is expected to boost oil prices.

Oil prices rose on Friday and were on track for a weekly increase as geopolitical tensions over Iran remained unresolved, although flagging prospects for global economic growth amid the US-China trade war capped gains.

Oil prices rose on Friday and were on track for a weekly increase as geopolitical tensions over Iran remained unresolved, although flagging prospects for global economic growth amid the US-China trade war capped gains. Brent crude futures were up 23 cents at $63.62 per barrel at 0922 GMT, equivalent to a weekly rise of around 1.8%. They fell 6% last week. US West Texas Intermediate crude was 25 cents higher at $56.27 a barrel, a weekly gain of 1.1%. It fell to 7.5% last week. Tensions remained high around the Strait of Hormuz, the world's most important oil passageway, as Iran refused to release a British-flagged tanker it seized last week in the Gulf. US Secretary of State Mike Pompeo said Washington had asked Japan, France, Germany, South Korea, Australia, and other nations to join a maritime security initiative in the Middle East so oil and other products can flow through the strait. However, oil prices' reaction to the strains in the Gulf has been relatively muted. "It appears that the majority of market participants do not expect a military conflict that would hamper oil shipments," Commerzbank analyst Carsten Fritsch said. Prices also drew support from a crude inventory draw in the United States, but gains were limited as the fall appeared to have been largely anticipated. The US production in the Gulf of Mexico was still feeling the effects of Hurricane Barry. WATCH: Iran-UK tanker tensions: Iran releases 9 crew members × "Several indicators pointing to a slowdown of global oil demand growth appear to have taken over market sentiment," Jefferies analyst Jason Gammel said. Reuters polls taken July 1-24 showed the growth outlook for nearly 90% of the more than 45 economies surveyed was downgraded or left unchanged. That applied not just to this year but also in 2020. "Growing challenges in the macroeconomic environment have kept bullish bets in check as risk appetites remain soft over potential weakness in global fuel demand," said Benjamin Lu, commodities analyst at Singapore-based Phillip Futures. The slowdown in global manufacturing and trade, and the associated hit to oil consumption, largely stems from a US-China trade war that has rumbled on over the last year. Trade talks between the two countries broke down in May after nearing an agreement. Next week, the top US and Chinese negotiators meet for the first time since then. Any positive outcome of the meeting is expected to boost oil prices.

Oil prices rise as Iran tensions remain unresolved

Oil&nbsp;prices rose on Friday as tensions spiked again in the Middle East&nbsp;after&nbsp;the United States said it had destroyed an&nbsp;Iranian&nbsp;drone&nbsp;in the Strait of Hormuz, a major chokepoint for global crude flows.

Benchmark crude prices were still on track for their biggest&nbsp;weekly&nbsp;decline in seven weeks, however, having&nbsp;fallen sharply earlier in the week on concerns over global&nbsp;oil&nbsp;demand amid slowing economic growth.

Brent crude futures were up 1.11 cents, or 1.78%, at $63.04 a barrel by 1037 GMT, having risen as high as $63.32. Brent fell 2.7% on Thursday, its fourth straight session of losses, and was&nbsp;set&nbsp;for a&nbsp;weekly&nbsp;drop of around 5%.

West Texas Intermediate crude futures were 81 cents, or 1.44%, higher at $56.11 per barrel&nbsp;after&nbsp;touching $56.36. They ended 2.6% lower in the previous session and were headed for a&nbsp;weekly&nbsp;decline of around 6%.

Indications that the&nbsp;US Federal Reserve will cut rates aggressively to support the economy were also behind Friday's gains, said Stephen Innes, managing partner at Vanguard Markets.

"The Fed backstop and the report of the&nbsp;US&nbsp;Navy&nbsp;shooting down an&nbsp;Iranian&nbsp;drone&nbsp;are providing a modicum of support for&nbsp;oil&nbsp;markets amidst a very bearish landscape," he said.

The United States said on Thursday that a&nbsp;US&nbsp;Navy&nbsp;ship had "destroyed" an&nbsp;Iranian&nbsp;drone&nbsp;in the Strait of Hormuz&nbsp;after&nbsp;the aircraft threatened the vessel, but Iran said it had no information about losing a&nbsp;drone.

Also on Thursday, two influential Federal Reserve officials sharpened the public case for acting to support the&nbsp;US economy, reviving bets the central bank may deliver a larger-than-expected cut this month.

Still, the longer-term outlook for&nbsp;oil&nbsp;has grown increasingly bearish.

The International Energy Agency (IEA) is reducing its 2019&nbsp;oil&nbsp;demand growth forecast to 1.1 million barrels per day (BPD) from 1.2 million BPD previously due to a slowing global economy amid a&nbsp;US-China trade spat, it's executive director said on Thursday.

The IEA may cut further if the global economy and especially China show further weakness, Fatih Birol told Reuters.

"Macro-economic concerns, uncertainty on trade discussions and increasing&nbsp;oil&nbsp;supply from the&nbsp;US continued to weigh on sentiments," said Warren Patterson, head of commodities at ING.

Bank of America Merrill Lynch said any start of&nbsp;US-Iran talks or a&nbsp;US-China trade deal would reduce volatility and anchor Brent&nbsp;oil&nbsp;prices in a $60-$67 per barrel range.

Oil prices rose on Friday as tensions spiked again in the Middle East after the United States said it had destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows.

Oil prices rose on Friday as tensions spiked again in the Middle East after the United States said it had destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows. Benchmark crude prices were still on track for their biggest weekly decline in seven weeks, however, having fallen sharply earlier in the week on concerns over global oil demand amid slowing economic growth. Brent crude futures were up 1.11 cents, or 1.78%, at $63.04 a barrel by 1037 GMT, having risen as high as $63.32. Brent fell 2.7% on Thursday, its fourth straight session of losses, and was set for a weekly drop of around 5%. West Texas Intermediate crude futures were 81 cents, or 1.44%, higher at $56.11 per barrel after touching $56.36. They ended 2.6% lower in the previous session and were headed for a weekly decline of around 6%. Indications that the US Federal Reserve will cut rates aggressively to support the economy were also behind Friday's gains, said Stephen Innes, managing partner at Vanguard Markets. "The Fed backstop and the report of the US Navy shooting down an Iranian drone are providing a modicum of support for oil markets amidst a very bearish landscape," he said. The United States said on Thursday that a US Navy ship had "destroyed" an Iranian drone in the Strait of Hormuz after the aircraft threatened the vessel, but Iran said it had no information about losing a drone. Also on Thursday, two influential Federal Reserve officials sharpened the public case for acting to support the US economy, reviving bets the central bank may deliver a larger-than-expected cut this month. Still, the longer-term outlook for oil has grown increasingly bearish. The International Energy Agency (IEA) is reducing its 2019 oil demand growth forecast to 1.1 million barrels per day (BPD) from 1.2 million BPD previously due to a slowing global economy amid a US-China trade spat, it's executive director said on Thursday. The IEA may cut further if the global economy and especially China show further weakness, Fatih Birol told Reuters. "Macro-economic concerns, uncertainty on trade discussions and increasing oil supply from the US continued to weigh on sentiments," said Warren Patterson, head of commodities at ING. Bank of America Merrill Lynch said any start of US-Iran talks or a US-China trade deal would reduce volatility and anchor Brent oil prices in a $60-$67 per barrel range.

Oil rises after US Navy downs Iranian drone; set for weekly fall

Oil prices rose on Friday as <a href="https://www.wionews.com/world/tropical-storm-barry-nears-new-orleans-raising-flood-threat-235161">US oil producers in the Gulf of Mexico</a> cut more than half their output in the face of a tropical storm and as tensions continued in the Middle East.

Brent crude futures were up 37 cents, or 0.6 per cent, at $66.89 per barrel by 0115 GMT. The international benchmark settled down 0.7 per cent on Thursday after hitting its highest since May 30 at $67.52 a barrel.

US West Texas Intermediate (WTI) crude futures were up 34 cents, or 0.6 per cent, at $60.54 a barrel. The US benchmark closed 0.38 per cent lower on Thursday after marking its highest since May 23 at $60.94.

By Thursday, oil companies in the Gulf of Mexico had cut more than 1 million barrels per day (bpd) of output, or 53 per cent&nbsp;of the region's production, due to Tropical Storm Barry.

The storm was forecast to become a category one hurricane with at least 74-mile-per hour (119 km-per-hour) winds.

"Brent crude oil ... extended its gains as storms in the Gulf of Mexico halted production of oil and US oil inventories continued to recede more than expected," ANZ Bank said in a note.

US crude oil inventories have decreased for four consecutive weeks. US crude stocks fell 9.5 million barrels in the week to July 5, the Energy Information Administration (EIA) said, a drop that was more than triple the 3.1 million-barrel draw expected by analysts.

Meanwhile, Iran's alleged attempt to block a British-owned tanker heightened tensions in the Middle East in the wake of attacks on tankers and the downing of US drone by Iran in June.

"While a full-scale military conflict remains the least likely scenario, the strong increases for cost of insurance will make for most costly transportation of crude and see new routes explored, delaying crude arrivals," said Edward Moya, senior market analyst at OANDA in New York.

But a lower 2020 oil demand outlook from the Organization of the Petroleum Exporting Countries kept price gains in check. OPEC said the world would need 29.27 million bpd of crude from its 14 members in 2020, down 1.34 million bpd this year.

Oil prices rose on Friday as US oil producers in the Gulf of Mexico cut more than half their output in the face of a tropical storm and as tensions continued in the Middle East.

Oil prices rose on Friday as US oil producers in the Gulf of Mexico cut more than half their output in the face of a tropical storm and as tensions continued in the Middle East. Brent crude futures were up 37 cents, or 0.6 per cent, at $66.89 per barrel by 0115 GMT. The international benchmark settled down 0.7 per cent on Thursday after hitting its highest since May 30 at $67.52 a barrel. US West Texas Intermediate (WTI) crude futures were up 34 cents, or 0.6 per cent, at $60.54 a barrel. The US benchmark closed 0.38 per cent lower on Thursday after marking its highest since May 23 at $60.94. By Thursday, oil companies in the Gulf of Mexico had cut more than 1 million barrels per day (bpd) of output, or 53 per cent of the region's production, due to Tropical Storm Barry. The storm was forecast to become a category one hurricane with at least 74-mile-per hour (119 km-per-hour) winds. "Brent crude oil ... extended its gains as storms in the Gulf of Mexico halted production of oil and US oil inventories continued to recede more than expected," ANZ Bank said in a note. US crude oil inventories have decreased for four consecutive weeks. US crude stocks fell 9.5 million barrels in the week to July 5, the Energy Information Administration (EIA) said, a drop that was more than triple the 3.1 million-barrel draw expected by analysts. Meanwhile, Iran's alleged attempt to block a British-owned tanker heightened tensions in the Middle East in the wake of attacks on tankers and the downing of US drone by Iran in June. "While a full-scale military conflict remains the least likely scenario, the strong increases for cost of insurance will make for most costly transportation of crude and see new routes explored, delaying crude arrivals," said Edward Moya, senior market analyst at OANDA in New York. But a lower 2020 oil demand outlook from the Organization of the Petroleum Exporting Countries kept price gains in check. OPEC said the world would need 29.27 million bpd of crude from its 14 members in 2020, down 1.34 million bpd this year.

Oil prices rise over Storm Barry, Middle East tensions

<a href="https://www.wionews.com/business-economy/oil-prices-fall-on-surging-us-crude-stockpiles-economic-concerns-221236">Oil prices</a> were mixed on Tuesday as supply cuts, led by producer club OPEC, and US&nbsp;sanctions on fuel exports from Iran and Venezuela supported crude, while concerns about an economic slowdown weighed on the market.

Front-month Brent crude futures, the international benchmark for oil prices, were at $69.99 at 0637 GMT, down 12 cents, or 0.2%, from the last session's close, when they rose 2.1%.

US West Texas Intermediate (WTI) crude futures were at $59.03 per barrel, up 40 cents, or 0.7%, from their last close on Friday. WTI did not trade on Monday due to a US&nbsp;public holiday.

Prices have been supported by supply cuts led by the Organisation of the Petroleum Exporting Countries (OPEC) since the start of the year, and by political tensions in the Middle East.

OPEC and some allies including Russia are due to meet on June 25 and 26 to discuss output policy.

Beyond the output cuts, US&nbsp;bank, Citi said, "Geopolitical turmoil across the Middle East ... are likely to encourage financial investors to realign with their bullish physical counterparties."

In physical oil markets, the Middle East crude premiums hit their highest levels in years earlier this month amid falling supply.

Beyond the OPEC cuts, US&nbsp;sanctions on petroleum exports from Iran and Venezuela have tightened markets.

"Iran exports remain under pressure as US sanctions bite. This comes as OPEC appears to be heading towards extending the current production cut agreement," Citi added.

Trump last year withdrew the United States from a 2015 international nuclear deal with Iran, and Washington is ratcheting up sanctions seeking to end Tehran's international sales of crude oil and strangle its economy.

Washington has also imposed sanctions on Venezuela's oil exports, in a bid to topple the government under President Nicolas Maduro there.

Despite this, markets remain cautious amid an economic slowdown as a result of the ongoing trade war between the United States and China, which is also expected to dent fuel consumption.

"We really need to see some strong demand figures, which so far this year has not happened before we can really start listening to the bulls," said Matt Stanley, a broker at Starfuels in Dubai.

Oil prices were mixed on Tuesday as supply cuts, led by producer club OPEC, and US sanctions on fuel exports from Iran and Venezuela supported crude, while concerns about an economic slowdown weighed on the market.

Oil prices were mixed on Tuesday as supply cuts, led by producer club OPEC, and US sanctions on fuel exports from Iran and Venezuela supported crude, while concerns about an economic slowdown weighed on the market. Front-month Brent crude futures, the international benchmark for oil prices, were at $69.99 at 0637 GMT, down 12 cents, or 0.2%, from the last session's close, when they rose 2.1%. US West Texas Intermediate (WTI) crude futures were at $59.03 per barrel, up 40 cents, or 0.7%, from their last close on Friday. WTI did not trade on Monday due to a US public holiday. Prices have been supported by supply cuts led by the Organisation of the Petroleum Exporting Countries (OPEC) since the start of the year, and by political tensions in the Middle East. OPEC and some allies including Russia are due to meet on June 25 and 26 to discuss output policy. Beyond the output cuts, US bank, Citi said, "Geopolitical turmoil across the Middle East ... are likely to encourage financial investors to realign with their bullish physical counterparties." In physical oil markets, the Middle East crude premiums hit their highest levels in years earlier this month amid falling supply. Beyond the OPEC cuts, US sanctions on petroleum exports from Iran and Venezuela have tightened markets. "Iran exports remain under pressure as US sanctions bite. This comes as OPEC appears to be heading towards extending the current production cut agreement," Citi added. Trump last year withdrew the United States from a 2015 international nuclear deal with Iran, and Washington is ratcheting up sanctions seeking to end Tehran's international sales of crude oil and strangle its economy. Washington has also imposed sanctions on Venezuela's oil exports, in a bid to topple the government under President Nicolas Maduro there. Despite this, markets remain cautious amid an economic slowdown as a result of the ongoing trade war between the United States and China, which is also expected to dent fuel consumption. "We really need to see some strong demand figures, which so far this year has not happened before we can really start listening to the bulls," said Matt Stanley, a broker at Starfuels in Dubai.

Oil mixed as OPEC cuts, US sanctions prop up prices while trade war weighs

Oil prices pared their gains on Tuesday, after global benchmark Brent crude rose above $73 a barrel, as the market grew less worried that a <a href="https://www.wionews.com/world/calling-on-armed-forces-to-continue-operation-freedom-venezuelas-guaido-214896">rebellion against Venezuelan President Nicolas Maduro</a> would hit the country's crude exports.

Prices rose after Venezuelan opposition leader Juan Guaido called for military backing to end Maduro's rule, but pared gains after the government said state-run oil company PDVSA's operations were not disrupted and top military leaders remained loyal.

"The possibility that Guaido will take control of the situation isn't as strong as perceived this morning," said Bob Yawger, director of energy futures at Mizuho in New York. "If Maduro hangs on, you'll see the market stay lower."

Brent crude futures hit a session high of $73.27 per barrel and settled 76 cents, or 1.1 per cent, higher at $72.80. Last week, Brent hit a six-month high above $75.

US crude futures closed at $63.91, up 41 cents, or 0.7 per cent, on the day, after hitting a session high at $64.75.

Prices pared their gains further in post-settlement trade after industry group American Petroleum Institute reported that US crude inventories rose 6.8 million barrels last week, more than analysts' forecasts for a 1.5 million-barrel build. Official government data is due on Wednesday.

OPEC member Venezuela's oil exports have already been reduced by US sanctions on PDVSA and an economic crisis, helping to curb the Organization of the Petroleum Exporting Countries' production to a four-year low, according to a Reuters survey.

If Maduro's government remains in power for much longer, Venezuela's crude exports and output will continue to decline as the OPEC producer wrestles with power outages and other problems, analysts said.

"The situation appears to be getting much worse, rather than better," said Phillip Streible, senior commodities strategist at RJO Futures in Chicago. "Their oil production is going to continue to slide."

Earlier, crude prices drew support when Saudi Arabia Energy Minister Khalid al-Falih said a deal between producers to cut output could be extended to the end of 2019. US President Donald Trump has pressured OPEC to raise output as Washington has tightened sanctions against Iran.

OPEC and other allies led by Russia have agreed to cut output by around 1.2 million bpd for six months until the end of June. The group meets in Vienna on June 25-26 to decide on next steps.

Also supporting prices was government data showing that US crude production fell in February for the second month in a row, sliding 187,000 barrels per day (bpd) to 11.7 million bpd.

"That's modestly supportive of prices," said John Kilduff, a partner at Again Capital LLC in New York. "We saw a pullback in operations in reaction to lower prices from last year. It shows the march forward to ever-higher production isn't limitless."

Rising output to record levels has made the US the top global oil producer, helping to boost domestic crude stocks to their highest since October 2017.

Oil prices pared their gains on Tuesday, after global benchmark Brent crude rose above $73 a barrel, as the market grew less worried that a rebellion against Venezuelan President Nicolas Maduro would hit the country's crude exports.

Oil prices pared their gains on Tuesday, after global benchmark Brent crude rose above $73 a barrel, as the market grew less worried that a rebellion against Venezuelan President Nicolas Maduro would hit the country's crude exports. Prices rose after Venezuelan opposition leader Juan Guaido called for military backing to end Maduro's rule, but pared gains after the government said state-run oil company PDVSA's operations were not disrupted and top military leaders remained loyal. "The possibility that Guaido will take control of the situation isn't as strong as perceived this morning," said Bob Yawger, director of energy futures at Mizuho in New York. "If Maduro hangs on, you'll see the market stay lower." Brent crude futures hit a session high of $73.27 per barrel and settled 76 cents, or 1.1 per cent, higher at $72.80. Last week, Brent hit a six-month high above $75. US crude futures closed at $63.91, up 41 cents, or 0.7 per cent, on the day, after hitting a session high at $64.75. Prices pared their gains further in post-settlement trade after industry group American Petroleum Institute reported that US crude inventories rose 6.8 million barrels last week, more than analysts' forecasts for a 1.5 million-barrel build. Official government data is due on Wednesday. OPEC member Venezuela's oil exports have already been reduced by US sanctions on PDVSA and an economic crisis, helping to curb the Organization of the Petroleum Exporting Countries' production to a four-year low, according to a Reuters survey. If Maduro's government remains in power for much longer, Venezuela's crude exports and output will continue to decline as the OPEC producer wrestles with power outages and other problems, analysts said. "The situation appears to be getting much worse, rather than better," said Phillip Streible, senior commodities strategist at RJO Futures in Chicago. "Their oil production is going to continue to slide." Earlier, crude prices drew support when Saudi Arabia Energy Minister Khalid al-Falih said a deal between producers to cut output could be extended to the end of 2019. US President Donald Trump has pressured OPEC to raise output as Washington has tightened sanctions against Iran. OPEC and other allies led by Russia have agreed to cut output by around 1.2 million bpd for six months until the end of June. The group meets in Vienna on June 25-26 to decide on next steps. Also supporting prices was government data showing that US crude production fell in February for the second month in a row, sliding 187,000 barrels per day (bpd) to 11.7 million bpd. "That's modestly supportive of prices," said John Kilduff, a partner at Again Capital LLC in New York. "We saw a pullback in operations in reaction to lower prices from last year. It shows the march forward to ever-higher production isn't limitless." Rising output to record levels has made the US the top global oil producer, helping to boost domestic crude stocks to their highest since October 2017.

Oil pares gains as fears ease on Venezuelan exports

Oil prices dipped on Tuesday on expectations rising output from the United States and producer club OPEC would offset most of the shortfall expected from US sanctions on Iran, but analysts said markets remained tight.

Brent crude futures were at $71.86 per barrel at 0103 GMT, down 18 cents, or 0.3 per cent, from their last close.

US West Texas Intermediate (WTI) crude futures were at $63.42 per barrel, down 8 cents from their previous settlement.

Oil prices surged by around 40 per cent between January and April, lifted by supply cuts led by the Middle East-dominated producer club of the Organization of the Petroleum Exporting Countries (OPEC) as well as by US&nbsp;sanctions on producers Iran and Venezuela.

But prices came under downward pressure late last week after US&nbsp;President Donald Trump openly pressured OPEC and its de-facto leader Saudi Arabia to raise output to meet the supply shortfall caused by the tightening Iran sanctions.

Stephen Innes, head of trading at SPI Asset Management, said the producer group "will want to avoid at all cost oil prices surging to levels that will trigger demand devastation, (while) it is clearly in OPEC's best interest to maintain a solid floor on prices".

Bank of America Merrill Lynch said, "Iranian oil production will fall to 1.9 million barrels per day in 2H19 from 3.6 million barrels per day in 3Q18 as US sanctions kick in and waivers eventually expire".

Despite this, the bank said it expected "a nearly balanced market in 2019" as output from OPEC and also the United States will rise.

French bank BNP Paribas said it expected oil prices "to rise in the near-term" as crude producers were "over-tightening the market in the face of unplanned supply outages and resilient oil demand".

The bank said it expected crude markets to climb until the third quarter of 2019, adding that prices would then "start to become vulnerable to a sharp rise in US exports of light crude thanks to pipeline and terminal capacity expansion".

US exports exceeded 3 million barrels per day (bpd) for the first time in early 2019 amid a more than 2 million bpd production surge over the past year, to a record of more than 12 million bpd.

BNP Paribas said it saw WTI averaging $63 per barrel in 2019, up $2 from its previous forecast, while Brent will average $71 per barrel, up $3 from an earlier estimate.

"In 2020, we see WTI averaging $64 per barrel and Brent $68 per barrel," the bank said.

Oil prices dipped on Tuesday on expectations rising output from the United States and producer club OPEC would offset most of the shortfall expected from US sanctions on Iran, but analysts said markets remained tight.

Oil prices dipped on Tuesday on expectations rising output from the United States and producer club OPEC would offset most of the shortfall expected from US sanctions on Iran, but analysts said markets remained tight. Brent crude futures were at $71.86 per barrel at 0103 GMT, down 18 cents, or 0.3 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were at $63.42 per barrel, down 8 cents from their previous settlement. Oil prices surged by around 40 per cent between January and April, lifted by supply cuts led by the Middle East-dominated producer club of the Organization of the Petroleum Exporting Countries (OPEC) as well as by US sanctions on producers Iran and Venezuela. But prices came under downward pressure late last week after US President Donald Trump openly pressured OPEC and its de-facto leader Saudi Arabia to raise output to meet the supply shortfall caused by the tightening Iran sanctions. Stephen Innes, head of trading at SPI Asset Management, said the producer group "will want to avoid at all cost oil prices surging to levels that will trigger demand devastation, (while) it is clearly in OPEC's best interest to maintain a solid floor on prices". Bank of America Merrill Lynch said, "Iranian oil production will fall to 1.9 million barrels per day in 2H19 from 3.6 million barrels per day in 3Q18 as US sanctions kick in and waivers eventually expire". Despite this, the bank said it expected "a nearly balanced market in 2019" as output from OPEC and also the United States will rise. French bank BNP Paribas said it expected oil prices "to rise in the near-term" as crude producers were "over-tightening the market in the face of unplanned supply outages and resilient oil demand". The bank said it expected crude markets to climb until the third quarter of 2019, adding that prices would then "start to become vulnerable to a sharp rise in US exports of light crude thanks to pipeline and terminal capacity expansion". US exports exceeded 3 million barrels per day (bpd) for the first time in early 2019 amid a more than 2 million bpd production surge over the past year, to a record of more than 12 million bpd. BNP Paribas said it saw WTI averaging $63 per barrel in 2019, up $2 from its previous forecast, while Brent will average $71 per barrel, up $3 from an earlier estimate. "In 2020, we see WTI averaging $64 per barrel and Brent $68 per barrel," the bank said.

Oil dips as rising OPEC, US output seen making up for Iran sanctions shortfall

Domestic equity benchmarks started on a positive note Monday led by gains in IT bellwether TCS, amid sustained foreign fund inflow and positive global cues.

After rising over 100 points in the early session, the 30-share index was trading 67.91 points or 0.18 per cent higher at 38,835.02. The NSE Nifty was trading 21.20 points, or 0.18 per cent, up at 11,664.65 in the early session.

During the past week, the Sensex fell 95.12 points or 0.24 per cent, while the Nifty shed 22.5 points or 0.19 per cent.

Top gainers in the Sensex pack include Tata Motors, TCS, Coal India, HCL Tech, Vedanta, Tata Steel, Hero MotoCorp, ITC, Kotak Bank, Asian Paints, IndusInd Bank and Axis Bank, rising up to 4.12 per cent.

TCS led the gains in early trade after the company Friday reported a 17.7 per cent growth in consolidated net profit at Rs 8,126 crore for the March 2019 quarter.

According to Rajesh Gopinathan, chief executive officer and managing director at TCS, this is the strongest revenue growth that the firm have had in the last fifteen quarters.

On the other hand, Infosys was the top loser, shedding 2.73 per cent on BSE. The IT major Friday posted a 10.5 per cent rise in consolidated net profit at Rs 4,078 crore for the March 2019 quarter and guided towards 7.5-9.5 per cent growth in revenue for FY 2019-20.

Bharti Airtel, Sun Pharma, M&amp;M, ONGC and Maruti were among the other losers on Sensex.

Meanwhile, foreign institutional investors (FIIs) purchased equity worth Rs 897.45 crore on Friday, while domestic institutional investors (DIIs) sold equities to the tune of Rs 15.99 crore, provisional data available with stock exchanges showed.

The rupee appreciated marginally to 69.17 against the US dollar in early trade.

Brent crude futures, the global oil benchmark, was 0.13 per cent lower at $71.46 per barrel.

Elsewhere in Asia, benchmark equity indices in Shanghai, Tokyo and Seoul were positive in early trade.&nbsp;

Domestic equity benchmarks started on a positive note Monday led by gains in IT bellwether TCS, amid sustained foreign fund inflow and positive global cues. After rising over 100 points in the early session, the 30-share index was trading 67.

Domestic equity benchmarks started on a positive note Monday led by gains in IT bellwether TCS, amid sustained foreign fund inflow and positive global cues. After rising over 100 points in the early session, the 30-share index was trading 67.91 points or 0.18 per cent higher at 38,835.02. The NSE Nifty was trading 21.20 points, or 0.18 per cent, up at 11,664.65 in the early session. During the past week, the Sensex fell 95.12 points or 0.24 per cent, while the Nifty shed 22.5 points or 0.19 per cent. Top gainers in the Sensex pack include Tata Motors, TCS, Coal India, HCL Tech, Vedanta, Tata Steel, Hero MotoCorp, ITC, Kotak Bank, Asian Paints, IndusInd Bank and Axis Bank, rising up to 4.12 per cent. TCS led the gains in early trade after the company Friday reported a 17.7 per cent growth in consolidated net profit at Rs 8,126 crore for the March 2019 quarter. According to Rajesh Gopinathan, chief executive officer and managing director at TCS, this is the strongest revenue growth that the firm have had in the last fifteen quarters. On the other hand, Infosys was the top loser, shedding 2.73 per cent on BSE. The IT major Friday posted a 10.5 per cent rise in consolidated net profit at Rs 4,078 crore for the March 2019 quarter and guided towards 7.5-9.5 per cent growth in revenue for FY 2019-20. Bharti Airtel, Sun Pharma, M&M, ONGC and Maruti were among the other losers on Sensex. Meanwhile, foreign institutional investors (FIIs) purchased equity worth Rs 897.45 crore on Friday, while domestic institutional investors (DIIs) sold equities to the tune of Rs 15.99 crore, provisional data available with stock exchanges showed. The rupee appreciated marginally to 69.17 against the US dollar in early trade. Brent crude futures, the global oil benchmark, was 0.13 per cent lower at $71.46 per barrel. Elsewhere in Asia, benchmark equity indices in Shanghai, Tokyo and Seoul were positive in early trade.

Sensex, Nifty start on a positive note; TCS jumps over 3%

The rupee fell 9 paise to 69.20 against the US dollar in opening trade Thursday on increased demand for the greenback from importers and banks.

Forex dealers said, strengthening of the American currency in the overseas market weighed on the domestic currency.

However, sustained foreign fund inflows supported the rupee and restricted the fall.

The rupee opened weak at 69.15 at the interbank forex market, then fell further to 69.20 down 9 paise against its last close. The local currency, however, pared the initial loss and was trading at 69.15 at 0940 hrs.

The rupee Wednesday had strengthened by 19 paise to 69.11 against the US dollar.

Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 1,429.92 crore Wednesday, as per provisional data.

Meanwhile, Brent crude futures, the global oil benchmark, fell 0.49 per cent to trade at $71.38 per barrel.

Indian bourses opened on a cautious note Thursday, with benchmark indices Sensex trading 20.31 points up at 38,605.66 and Nifty was quoted at 11,595.95 points, up 11.65 points.

The rupee fell 9 paise to 69.20 against the US dollar in opening trade Thursday on increased demand for the greenback from importers and banks. Forex dealers said, strengthening of the American currency in the overseas market weighed on the domestic currency.

The rupee fell 9 paise to 69.20 against the US dollar in opening trade Thursday on increased demand for the greenback from importers and banks. Forex dealers said, strengthening of the American currency in the overseas market weighed on the domestic currency. However, sustained foreign fund inflows supported the rupee and restricted the fall. The rupee opened weak at 69.15 at the interbank forex market, then fell further to 69.20 down 9 paise against its last close. The local currency, however, pared the initial loss and was trading at 69.15 at 0940 hrs. The rupee Wednesday had strengthened by 19 paise to 69.11 against the US dollar. Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 1,429.92 crore Wednesday, as per provisional data. Meanwhile, Brent crude futures, the global oil benchmark, fell 0.49 per cent to trade at $71.38 per barrel. Indian bourses opened on a cautious note Thursday, with benchmark indices Sensex trading 20.31 points up at 38,605.66 and Nifty was quoted at 11,595.95 points, up 11.65 points.

Rupee slips 9 paise to 69.20 against US dollar in early trade

The rupee appreciated by 9 paise to 68.65 against the US dollar in opening trade Wednesday, driven by the weakening of the greenback in overseas markets and sustained foreign inflows.

The rupee opened at 68.72 at the interbank forex market, then gained further ground and touched a high of 68.56. The local unit, however, pared some gains and was quoted at 68.65 against the American currency at 0926 hrs, displaying gains of 9 paise over its last close.

On Tuesday, the rupee had settled at 68.74 against the US dollar.

Forex dealers said, selling of the American currency by exporters, fresh foreign fund inflows and positive opening in domestic equities supported the rupee.

Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 543.36 crore on a net basis Tuesday, as per provisional data.

Brent crude futures, the global oil benchmark, rose 0.49 per cent to $69.71 per barrel.

Meanwhile, the BSE benchmark Sensex was quoted above 39,200-level and the NSE Nifty went past the key 11,700-mark in early deals Wednesday.

The rupee appreciated by 9 paise to 68.65 against the US dollar in opening trade Wednesday, driven by the weakening of the greenback in overseas markets and sustained foreign inflows.

The rupee appreciated by 9 paise to 68.65 against the US dollar in opening trade Wednesday, driven by the weakening of the greenback in overseas markets and sustained foreign inflows. The rupee opened at 68.72 at the interbank forex market, then gained further ground and touched a high of 68.56. The local unit, however, pared some gains and was quoted at 68.65 against the American currency at 0926 hrs, displaying gains of 9 paise over its last close. On Tuesday, the rupee had settled at 68.74 against the US dollar. Forex dealers said, selling of the American currency by exporters, fresh foreign fund inflows and positive opening in domestic equities supported the rupee. Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 543.36 crore on a net basis Tuesday, as per provisional data. Brent crude futures, the global oil benchmark, rose 0.49 per cent to $69.71 per barrel. Meanwhile, the BSE benchmark Sensex was quoted above 39,200-level and the NSE Nifty went past the key 11,700-mark in early deals Wednesday.

Rupee rises 9 paise to 68.65 against US dollar in early trade

The rupee appreciated by 30 paise to 69.98 against the US dollar in opening trade Thursday, driven by foreign inflows and positive opening in domestic equities.

The rupee opened strong at 70.08 at the interbank forex market and then gained further ground and touched 69.98, a gain of 30 paise over its last close.

Forex dealers said selling of the American currency by exporters supported the rupee, but rising crude prices weighed on the local unit and capped the upmove.

Besides, fresh foreign fund inflows also boosted sentiments in domestic the forex market, they added.

The rupee Wednesday had strengthened by 21 paise to close at 70.28 against the US dollar.

Meanwhile, foreign investors (FIIs) remained net buyers in the capital markets, putting in Rs 1,130.78 crore on a net basis Wednesday, as per provisional data.

Brent crude futures, the global oil benchmark, rose 0.48 per cent to trade at $66.31 per barrel.

Meanwhile, the benchmark BSE Sensex was trading higher by 49.01 points, or 0.13 per cent, to quote at 36,685.11 in early trade, while the NSE Nifty was quoted at 11,057.25, up by 4.25 points, or 0.04 per cent.

The rupee appreciated by 30 paise to 69.98 against the US dollar in opening trade Thursday, driven by foreign inflows and positive opening in domestic equities. The rupee opened strong at 70.

The rupee appreciated by 30 paise to 69.98 against the US dollar in opening trade Thursday, driven by foreign inflows and positive opening in domestic equities. The rupee opened strong at 70.08 at the interbank forex market and then gained further ground and touched 69.98, a gain of 30 paise over its last close. Forex dealers said selling of the American currency by exporters supported the rupee, but rising crude prices weighed on the local unit and capped the upmove. Besides, fresh foreign fund inflows also boosted sentiments in domestic the forex market, they added. The rupee Wednesday had strengthened by 21 paise to close at 70.28 against the US dollar. Meanwhile, foreign investors (FIIs) remained net buyers in the capital markets, putting in Rs 1,130.78 crore on a net basis Wednesday, as per provisional data. Brent crude futures, the global oil benchmark, rose 0.48 per cent to trade at $66.31 per barrel. Meanwhile, the benchmark BSE Sensex was trading higher by 49.01 points, or 0.13 per cent, to quote at 36,685.11 in early trade, while the NSE Nifty was quoted at 11,057.25, up by 4.25 points, or 0.04 per cent.

Rupee surges 30 paise against US dollar in early trade

&nbsp;After gyrating nearly 700 points Wednesday, benchmark equity indices reversed initial losses and ended higher driven by a rebound in banking stocks amid a firming trend in the US market.

The BSE Sensex broke its three-day falling streak by ending 179.79 points, or 0.51 per cent, higher at 35,649.94. It fell to a low of 35,010.82 during afternoon trade.

The broader NSE Nifty too recovered to reclaim the 10,700 level, rising 66.35 points, or 0.62 per cent, to 10,729.85.

"Market recovered in the second half following a recovery in Dow futures. At current levels, Nifty 50 is on track to deliver nominal positive returns in CY18. Nifty is the only index among large markets that is positive for the calendar year," said Viral Berawala, CIO of Essel Mutual Fund.

The 30-share index had ended the previous session 271.92 points lower at 35,470.15, while the Nifty had lost 90.50 points.

The biggest gainers on both bourses were Bharti Airtel, HDFC duo, L&amp;T, Bajaj Auto, Kotak Bank, Reliance Industries, Axis Bank, ICICI Bank, SBI, ITC and Bajaj Finance, rising up to 4 per cent.

On the other hand, Sun Pharma, Yes Bank, TCS, NTPC, Tata Motors, Infosys and ONGC fell up to 2 per cent.

The <a href="http://www.wionews.com/business-economy/rupee-surges-19-paise-against-dollar-in-early-trade-186541">rupee, meanwhile, gained against the US dollar</a> and was trading at 70.08 per dollar.

Brent crude, the international benchmark, was up 0.73 per cent at USD 51.14 per barrel.

On a net basis, foreign portfolio investors (FPIs) sold shares worth Rs 577.10 crore Monday, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 186.14 crore, provisional data available with BSE showed.

Elsewhere in Asia, Korea's Kospi ended 1.31 per cent lower, Hong Kong's Hang Seng fell 0.40 per cent and Shanghai Composite Index slipped 0.26 per cent; while Japan's Nikkei rose 0.89 per cent.&nbsp;

After gyrating nearly 700 points Wednesday, benchmark equity indices reversed initial losses and ended higher driven by a rebound in banking stocks amid a firming trend in the US market.

After gyrating nearly 700 points Wednesday, benchmark equity indices reversed initial losses and ended higher driven by a rebound in banking stocks amid a firming trend in the US market. The BSE Sensex broke its three-day falling streak by ending 179.79 points, or 0.51 per cent, higher at 35,649.94. It fell to a low of 35,010.82 during afternoon trade. The broader NSE Nifty too recovered to reclaim the 10,700 level, rising 66.35 points, or 0.62 per cent, to 10,729.85. "Market recovered in the second half following a recovery in Dow futures. At current levels, Nifty 50 is on track to deliver nominal positive returns in CY18. Nifty is the only index among large markets that is positive for the calendar year," said Viral Berawala, CIO of Essel Mutual Fund. The 30-share index had ended the previous session 271.92 points lower at 35,470.15, while the Nifty had lost 90.50 points. The biggest gainers on both bourses were Bharti Airtel, HDFC duo, L&T, Bajaj Auto, Kotak Bank, Reliance Industries, Axis Bank, ICICI Bank, SBI, ITC and Bajaj Finance, rising up to 4 per cent. On the other hand, Sun Pharma, Yes Bank, TCS, NTPC, Tata Motors, Infosys and ONGC fell up to 2 per cent. The rupee, meanwhile, gained against the US dollar and was trading at 70.08 per dollar. Brent crude, the international benchmark, was up 0.73 per cent at USD 51.14 per barrel. On a net basis, foreign portfolio investors (FPIs) sold shares worth Rs 577.10 crore Monday, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 186.14 crore, provisional data available with BSE showed. Elsewhere in Asia, Korea's Kospi ended 1.31 per cent lower, Hong Kong's Hang Seng fell 0.40 per cent and Shanghai Composite Index slipped 0.26 per cent; while Japan's Nikkei rose 0.89 per cent.

Sensex rebounds 180 points, Nifty reclaims 10,700 mark

<a href="http://www.wionews.com/world/oil-prices-rise-as-opec-output-cuts-seen-deeper-than-previously-expected-185630">Oil prices</a> edged up on Monday after evidence that a recent fall to 15-month lows may be affecting output in the United States, the world`s largest producer, although concern about the outlook for demand tempered gains.

Brent crude futures were up 12 cents at $53.94 a barrel by 0858 GMT, while US crude futures lost 3 cents to $45.56.

Brent fell 11 per cent last week and hit its lowest since September 2017, while US&nbsp;futures slid to their lowest since July 2017, bringing the decline in the two contracts to 35 per cent so far this quarter.

The price drop has caused US&nbsp;shale oil producers to curtail drilling plans for next year.&nbsp;

The boom in shale output has made the United States the world's largest oil producer, overtaking Saudi Arabia and Russia.

Physical prices for Brent have also fallen in the last six weeks, driven by a drop in demand from Chinese refiners in particular, which has weighed on the value of barrels of anything from the North Sea to Nigerian crude.&nbsp;

"The recent weakness in the physical Brent structure can be attributed to a broader easing of purchases by Asian refiners at this point, with lower-end-Q1 intake weighing on spot assessments, and we can expect this pressure to carry through over the coming weeks," consultancy JBC Energy said in a report.&nbsp;

Still, the macroeconomic picture and its impact on oil demand continue to pressure prices. Global equities have fallen nearly 9.5 per cent so far in December, their biggest one-month slide since September 2011, when the eurozone debt crisis was unfolding.&nbsp;

The trade dispute between the United States and China and the prospect of a rapid rise in US interest rates have brought global stocks down from this year`s record highs and ignited concern that oil demand will be insufficient to soak up any excess supply.

The <a href="http://www.wionews.com/world/oil-prices-rise-on-asian-stock-rally-opec-led-cuts-183404">Organization of the Petroleum Exporting Countries</a> and allies led by Russia agreed this month to cut oil production by 1.2 million barrels per day from January.

Should that fail to balance the market, OPEC and its allies will hold an extraordinary meeting, United Arab Emirates Energy Minister Suhail al-Mazrouei said on Sunday.

"Oil ministers are already taking to the airwaves with a `price stability at all cost` mantra," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.

Oil prices edged up on Monday after evidence that a recent fall to 15-month lows may be affecting output in the United States, the world`s largest producer, although concern about the outlook for demand tempered gains.

Oil prices edged up on Monday after evidence that a recent fall to 15-month lows may be affecting output in the United States, the world`s largest producer, although concern about the outlook for demand tempered gains. Brent crude futures were up 12 cents at $53.94 a barrel by 0858 GMT, while US crude futures lost 3 cents to $45.56. Brent fell 11 per cent last week and hit its lowest since September 2017, while US futures slid to their lowest since July 2017, bringing the decline in the two contracts to 35 per cent so far this quarter. The price drop has caused US shale oil producers to curtail drilling plans for next year. The boom in shale output has made the United States the world's largest oil producer, overtaking Saudi Arabia and Russia. Physical prices for Brent have also fallen in the last six weeks, driven by a drop in demand from Chinese refiners in particular, which has weighed on the value of barrels of anything from the North Sea to Nigerian crude. "The recent weakness in the physical Brent structure can be attributed to a broader easing of purchases by Asian refiners at this point, with lower-end-Q1 intake weighing on spot assessments, and we can expect this pressure to carry through over the coming weeks," consultancy JBC Energy said in a report. Still, the macroeconomic picture and its impact on oil demand continue to pressure prices. Global equities have fallen nearly 9.5 per cent so far in December, their biggest one-month slide since September 2011, when the eurozone debt crisis was unfolding. The trade dispute between the United States and China and the prospect of a rapid rise in US interest rates have brought global stocks down from this year`s record highs and ignited concern that oil demand will be insufficient to soak up any excess supply. The Organization of the Petroleum Exporting Countries and allies led by Russia agreed this month to cut oil production by 1.2 million barrels per day from January. Should that fail to balance the market, OPEC and its allies will hold an extraordinary meeting, United Arab Emirates Energy Minister Suhail al-Mazrouei said on Sunday. "Oil ministers are already taking to the airwaves with a `price stability at all cost` mantra," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.

Oil prices inch up, but concern over demand limits gains

Oil rose further above $60 a barrel on Wednesday, supported by expectations that OPEC and its partners will next week decide to curb supply and helped by a drop in North Sea output.

The Organization of the Petroleum Exporting Countries plus Russia and other allies meet on December 6-7. Producers are discussing a supply curb of 1 to 1.4 million barrels per day and possibly more, OPEC delegates have told Reuters.

Brent crude, the global benchmark, was up 53 cents at $60.74 a barrel at 0919 GMT and traded as high as $61.27.

US crude added 41 cents to $51.97.

"OPEC needs to cut if it wants the market to be a little less over-supplied in the first half of 2019," said Olivier Jakob, analyst at Petromatrix, although he added the rally was limited. "We are not making significant moves."

Despite Wednesday's rise, Brent has slumped 30 per cent from a four-year high above $86 a barrel in early October, pressured by concerns that supply will exceed demand in 2019 as economic growth slows.

The slump since October is so far on a par with the 2008 price crash and steeper than that of 2014-2015 - both of which prompted OPEC to agree output curbs to support the market.

The OPEC meeting in Vienna will follow a gathering by the Group of 20 (G20) nations in Argentina this weekend, at which oil policy is expected to be discussed, potentially laying the groundwork for an OPEC deal.

The market also gained support from a supply outage in the North Sea, home to the crude underpinning the Brent contract.

The Buzzard oilfield, the UK's largest, has closed temporarily after the discovery of pipe corrosion. As a result, trade sources said three December cargoes of Forties crude had been cancelled.

"Few would bet against further disruptions," said Stephen Brennock of oil broker PVM, referring to the impact of the outage on cargo loadings.

A weekly report showing a rise in US crude stockpiles, the 10th consecutive week of gains, limited the rally.

The American Petroleum Institute, an industry group, said on Tuesday US crude stocks rose by 3.5 million barrels, more than analysts had forecast. The government's official supply report is due later on Wednesday at 1530 GMT.

Oil rose further above $60 a barrel on Wednesday, supported by expectations that OPEC and its partners will next week decide to curb supply and helped by a drop in North Sea output.

Oil rose further above $60 a barrel on Wednesday, supported by expectations that OPEC and its partners will next week decide to curb supply and helped by a drop in North Sea output. The Organization of the Petroleum Exporting Countries plus Russia and other allies meet on December 6-7. Producers are discussing a supply curb of 1 to 1.4 million barrels per day and possibly more, OPEC delegates have told Reuters. Brent crude, the global benchmark, was up 53 cents at $60.74 a barrel at 0919 GMT and traded as high as $61.27. US crude added 41 cents to $51.97. "OPEC needs to cut if it wants the market to be a little less over-supplied in the first half of 2019," said Olivier Jakob, analyst at Petromatrix, although he added the rally was limited. "We are not making significant moves." Despite Wednesday's rise, Brent has slumped 30 per cent from a four-year high above $86 a barrel in early October, pressured by concerns that supply will exceed demand in 2019 as economic growth slows. The slump since October is so far on a par with the 2008 price crash and steeper than that of 2014-2015 - both of which prompted OPEC to agree output curbs to support the market. The OPEC meeting in Vienna will follow a gathering by the Group of 20 (G20) nations in Argentina this weekend, at which oil policy is expected to be discussed, potentially laying the groundwork for an OPEC deal. The market also gained support from a supply outage in the North Sea, home to the crude underpinning the Brent contract. The Buzzard oilfield, the UK's largest, has closed temporarily after the discovery of pipe corrosion. As a result, trade sources said three December cargoes of Forties crude had been cancelled. "Few would bet against further disruptions," said Stephen Brennock of oil broker PVM, referring to the impact of the outage on cargo loadings. A weekly report showing a rise in US crude stockpiles, the 10th consecutive week of gains, limited the rally. The American Petroleum Institute, an industry group, said on Tuesday US crude stocks rose by 3.5 million barrels, more than analysts had forecast. The government's official supply report is due later on Wednesday at 1530 GMT.

Oil rises further above $60 as OPEC, North Sea outage support

Oil ended slightly firmer after volatile trading on Friday, supported by expectations that the Organisation of the Petroleum Exporting Countries would agree to cut output next month, though prices fell for the sixth straight week amid global oversupply concerns.

OPEC kingpin Saudi Arabia is keen for the major producers to cut output by about 1.4 million barrels per day, around 1.5 per cent of global supply, to support the market, sources told Reuters this week. But other producers, including Russia, have been reluctant to agree to a cut.

Brent settled up 14 cents, or 0.2 per cent, at $66.76 a barrel. The global benchmark fell 4.6 per cent in the week, the sixth consecutive decline.

US&nbsp;crude&nbsp;settled unchanged at $56.46 a barrel after trading between $55.89 and $57.96. The contract, which had its steepest one-day loss in more than three years on Tuesday, fell 5.6 per cent in the week, also its sixth straight weekly decline.

After Tuesday's sharp fall, the market was due for a slight correction, and was now stabilizing, said Tariq Zahir, managing member at Tyche Capital Advisors in New York.

"A relief rally was in the cards," said Bob Yawger, director of energy futures at Mizuho in New York. OPEC is likely to be spurred to action as US&nbsp;production continues to climb, he said.

Still, the day's gains were likely to be limited as traders were cautious going into the weekend, he said. "It would take a brave soul to go home really long this weekend considering the slaughter we've had in the past eight weeks."

OPEC ministers meet on December 6 in Vienna to decide on production policy for the next six months amid a growing surplus in world markets.

US&nbsp;crude production&nbsp;reached another record last week, at 11.7 million barrels per day, government data showed. The record output contributed to the biggest weekly build in US&nbsp;crude stockpiles in nearly two years.

US&nbsp;drillers added two oil rigs this week, bringing the total count to 888, still the highest level since March 2015, General Electric Co's&nbsp;Baker Hughes energy services firm said in its closely followed report.&nbsp;The rig count is seen as an indicator of future production growth.

The United States imposed sanctions on Iranian oil exports this month and Iranian crude exports have fallen sharply in recent months, although Washington cushioned the blow by granting some temporary exemptions.

Other oil producers have more than compensated for the lost Iranian oil and most analysts now see a significant supply surplus with inventories building, putting pressure on prices.

Fearing a repeat of the 2014 price rout, OPEC is widely expected to start trimming output soon.

This could produce a swift price rebound, some analysts say, especially if production falls further in Venezuela and Libya.

"We are likely from December onwards to have at least 1 million barrels per day (bpd) less of (Iranian) crude exports," Harry Tchilinguirian, global head of commodity markets strategy at BNP Paribas, told Reuters Global Oil Forum.

Tchilinguirian said he would not be surprised if Brent recovered to $80 this year.

Also supporting prices, Iraq resumed exporting oil from its northern Kirkuk oilfields on Friday, pumping 50,000-100,000 bpd, an oil ministry spokesman said. Some analysts had expected the volumes to be much higher, at closer to 300,000 bpd.

Hedge funds and other money managers cut their bullish wagers on U.S. crude futures and options in New York and London during the week ended Nov. 13 by 8,259 contracts to 165,121, the lowest since June 27, 2017, the U.S. Commodity Futures Trading Commission (CFTC) said.

Brent speculators on the Intercontinental Exchange (ICE) cut net longs by 45,216 contracts to 214,832 in the week, also the lowest since June 27, 2017.

Oil ended slightly firmer after volatile trading on Friday, supported by expectations that the Organisation of the Petroleum Exporting Countries would agree to cut output next month, though prices fell for the sixth straight week amid global oversupply concerns.

Oil ended slightly firmer after volatile trading on Friday, supported by expectations that the Organisation of the Petroleum Exporting Countries would agree to cut output next month, though prices fell for the sixth straight week amid global oversupply concerns. OPEC kingpin Saudi Arabia is keen for the major producers to cut output by about 1.4 million barrels per day, around 1.5 per cent of global supply, to support the market, sources told Reuters this week. But other producers, including Russia, have been reluctant to agree to a cut. Brent settled up 14 cents, or 0.2 per cent, at $66.76 a barrel. The global benchmark fell 4.6 per cent in the week, the sixth consecutive decline. US crude settled unchanged at $56.46 a barrel after trading between $55.89 and $57.96. The contract, which had its steepest one-day loss in more than three years on Tuesday, fell 5.6 per cent in the week, also its sixth straight weekly decline. After Tuesday's sharp fall, the market was due for a slight correction, and was now stabilizing, said Tariq Zahir, managing member at Tyche Capital Advisors in New York. "A relief rally was in the cards," said Bob Yawger, director of energy futures at Mizuho in New York. OPEC is likely to be spurred to action as US production continues to climb, he said. Still, the day's gains were likely to be limited as traders were cautious going into the weekend, he said. "It would take a brave soul to go home really long this weekend considering the slaughter we've had in the past eight weeks." OPEC ministers meet on December 6 in Vienna to decide on production policy for the next six months amid a growing surplus in world markets. US crude production reached another record last week, at 11.7 million barrels per day, government data showed. The record output contributed to the biggest weekly build in US crude stockpiles in nearly two years. US drillers added two oil rigs this week, bringing the total count to 888, still the highest level since March 2015, General Electric Co's Baker Hughes energy services firm said in its closely followed report. The rig count is seen as an indicator of future production growth. The United States imposed sanctions on Iranian oil exports this month and Iranian crude exports have fallen sharply in recent months, although Washington cushioned the blow by granting some temporary exemptions. Other oil producers have more than compensated for the lost Iranian oil and most analysts now see a significant supply surplus with inventories building, putting pressure on prices. Fearing a repeat of the 2014 price rout, OPEC is widely expected to start trimming output soon. This could produce a swift price rebound, some analysts say, especially if production falls further in Venezuela and Libya. "We are likely from December onwards to have at least 1 million barrels per day (bpd) less of (Iranian) crude exports," Harry Tchilinguirian, global head of commodity markets strategy at BNP Paribas, told Reuters Global Oil Forum. Tchilinguirian said he would not be surprised if Brent recovered to $80 this year. Also supporting prices, Iraq resumed exporting oil from its northern Kirkuk oilfields on Friday, pumping 50,000-100,000 bpd, an oil ministry spokesman said. Some analysts had expected the volumes to be much higher, at closer to 300,000 bpd. Hedge funds and other money managers cut their bullish wagers on U.S. crude futures and options in New York and London during the week ended Nov. 13 by 8,259 contracts to 165,121, the lowest since June 27, 2017, the U.S. Commodity Futures Trading Commission (CFTC) said. Brent speculators on the Intercontinental Exchange (ICE) cut net longs by 45,216 contracts to 214,832 in the week, also the lowest since June 27, 2017.

Oil edges up in volatile session but falls for sixth straight week

Oil rose about 1 per cent on Wednesday, recouping some of the <a href="http://www.wionews.com/world/oil-markets-struggle-to-find-footing-after-seven-per-cent-slump-177187">previous session's heavy sell-off</a>, on growing prospects that the Organization of the Petroleum Exporting Countries and allied producers would cut output at a meeting next month to prop up prices.

After a record 12 straight days of losses and the steepest one-day loss in more than three years, the oil market reversed course after Reuters reported that OPEC and its partners were discussing a proposal to cut output by up to 1.4 million barrels per day (bpd), more than officials had mentioned previously.

Brent crude settled up 65 cents, or 1 per cent, at $66.12 a barrel, after hitting a session high of $67.63.

US crude futures rose 56 cents, or 1.01 per cent, to settle at $56.25 a barrel, after sliding for 12 straight sessions to the lowest since November 2017.

Prices pared gains in a post-settlement trade as the American Petroleum Institute said crude inventories rose by 8.8 million barrels in the week to November 9 to 440.7 million, compared with analysts' expectations for an increase of 3.2 million barrels.

Oil markets are being pressured by surging supply from OPEC, Russia, the United States and other producers and worries that a global economic slowdown could cut into energy demand.

This has pushed the price of global benchmark Brent down more than 20 per cent since early October, one of the biggest declines since a price collapse in 2014.

"The market has cratered over the last few weeks and the pop today is related to the chatter that producers could cut up to 1.4 million bpd in 2019," said Gene McGillian, vice president of market research for Tradition Energy in Stamford, Connecticut.

"Maybe some of the fears of extra supplies and reduced demand have finally been priced into the market, but I wouldn't say that a bottom has set in yet."

As oil has crashed from its October high, natural gas futures soared as much as 56 per cent during that time to a 4-1/2 year high. Oil's latest sell-off was exacerbated as traders unwound long oil-short natural gas trades, market participants said.

The relative strength index (RSI) for both Brent and U.S. crude remained below 30, a technical level often regarded as signalling a market that has fallen too far.

Financial firms hedging the risk incurred by selling put options to oil producers generated added downward pressure when prices fell toward option strikes, Goldman Sachs said in a note.

"This market is attempting to find a price bottom following an unprecedented 12 consecutive days of decline," Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.

"Although the supply surplus is still relatively modest, the market is focusing on the dynamic of expansion in the overhang that will need to show signs of reversal before a price bottom can be established."

In its monthly report, the Paris-based International Energy Agency (IEA) said the implied stock build for the first half of 2019 is 2 million bpd.

The IEA left its forecast for global demand growth for 2018 and 2019 unchanged from last month, but cut its forecast for non-OECD demand growth, the engine of expansion in world consumption.

US crude output from its seven major shale basins was expected to hit a record 7.94 million bpd in December, the U.S. Energy Information Administration (EIA) said on Tuesday.

The surge in onshore output has helped overall US crude production hit a record 11.6 million bpd, making the United States the world's biggest oil producer ahead of Russia and Saudi Arabia.

Most analysts expect US output to climb above 12 million bpd in the first half of 2019.

The rise in US production is contributing to higher stockpiles. Storage data from the US government is due on Thursday.&nbsp;

Oil rose about 1 per cent on Wednesday, recouping some of the previous session's heavy sell-off, on growing prospects that the Organization of the Petroleum Exporting Countries and allied producers would cut output at a meeting next month to prop up prices.

Oil rose about 1 per cent on Wednesday, recouping some of the previous session's heavy sell-off, on growing prospects that the Organization of the Petroleum Exporting Countries and allied producers would cut output at a meeting next month to prop up prices. After a record 12 straight days of losses and the steepest one-day loss in more than three years, the oil market reversed course after Reuters reported that OPEC and its partners were discussing a proposal to cut output by up to 1.4 million barrels per day (bpd), more than officials had mentioned previously. Brent crude settled up 65 cents, or 1 per cent, at $66.12 a barrel, after hitting a session high of $67.63. US crude futures rose 56 cents, or 1.01 per cent, to settle at $56.25 a barrel, after sliding for 12 straight sessions to the lowest since November 2017. Prices pared gains in a post-settlement trade as the American Petroleum Institute said crude inventories rose by 8.8 million barrels in the week to November 9 to 440.7 million, compared with analysts' expectations for an increase of 3.2 million barrels. Oil markets are being pressured by surging supply from OPEC, Russia, the United States and other producers and worries that a global economic slowdown could cut into energy demand. This has pushed the price of global benchmark Brent down more than 20 per cent since early October, one of the biggest declines since a price collapse in 2014. "The market has cratered over the last few weeks and the pop today is related to the chatter that producers could cut up to 1.4 million bpd in 2019," said Gene McGillian, vice president of market research for Tradition Energy in Stamford, Connecticut. "Maybe some of the fears of extra supplies and reduced demand have finally been priced into the market, but I wouldn't say that a bottom has set in yet." As oil has crashed from its October high, natural gas futures soared as much as 56 per cent during that time to a 4-1/2 year high. Oil's latest sell-off was exacerbated as traders unwound long oil-short natural gas trades, market participants said. The relative strength index (RSI) for both Brent and U.S. crude remained below 30, a technical level often regarded as signalling a market that has fallen too far. Financial firms hedging the risk incurred by selling put options to oil producers generated added downward pressure when prices fell toward option strikes, Goldman Sachs said in a note. "This market is attempting to find a price bottom following an unprecedented 12 consecutive days of decline," Jim Ritterbusch, president of Ritterbusch and Associates, said in a note. "Although the supply surplus is still relatively modest, the market is focusing on the dynamic of expansion in the overhang that will need to show signs of reversal before a price bottom can be established." In its monthly report, the Paris-based International Energy Agency (IEA) said the implied stock build for the first half of 2019 is 2 million bpd. The IEA left its forecast for global demand growth for 2018 and 2019 unchanged from last month, but cut its forecast for non-OECD demand growth, the engine of expansion in world consumption. US crude output from its seven major shale basins was expected to hit a record 7.94 million bpd in December, the U.S. Energy Information Administration (EIA) said on Tuesday. The surge in onshore output has helped overall US crude production hit a record 11.6 million bpd, making the United States the world's biggest oil producer ahead of Russia and Saudi Arabia. Most analysts expect US output to climb above 12 million bpd in the first half of 2019. The rise in US production is contributing to higher stockpiles. Storage data from the US government is due on Thursday.

Oil rebounds from steep sell-off as OPEC, partners discuss supply cut

Oil prices steadied on Friday after a market rout driven by sharp falls in equity markets and indications that supply concerns have been overblown, but were still on track for a fall or more than 4 per cent for the week.

Brent crude futures edged up 13 cents to $80.39 a barrel by 0042 GMT. The contract fell 3.4 per cent on Thursday, after hitting a low of $79.80, its weakest since September 24.

US West Texas Intermediate (WTI) crude futures were up 11 cents at $71.08 a barrel, after falling 3 per cent in the previous session to the lowest since Sept. 21.

Wall Street extended its slide into a sixth session and a global equity index fell to a 1-year low on Thursday as investors feared an escalating US trade war with China and risks from a recent climb in interest rates.

Japan's Nikkei was slightly lower in early trading on Friday.

On the oil front, US crude inventories rose by 6 million barrels last week, the Energy Information Administration said, more than double analysts' expectations of a 2.6 million-barrel increase.

The Organization of the Petroleum Exporting Countries cut its forecast of global demand growth for oil next year for a third straight month, citing headwinds facing the broader economy from trade disputes and volatile emerging markets.

OPEC sees the oil market as well supplied and is wary of creating a glut next year, the group's secretary-general said on Thursday.

In the US Gulf of Mexico, producers had cut output by 40 per cent on Thursday due to Hurricane Michael, according to the Bureau of Safety and Environmental Enforcement, even as some operators began returning crews to offshore platforms.

The cuts represent 680,107 barrels per day of oil production, the bureau said, citing reports from 30 companies.

Michael crashed ashore Florida on Wednesday as the third most powerful hurricane to strike the US mainland, leaving seven people least. It has since weakened to a tropical storm.

Oil prices steadied on Friday after a market rout driven by sharp falls in equity markets and indications that supply concerns have been overblown, but were still on track for a fall or more than 4 per cent for the week.

Oil prices steadied on Friday after a market rout driven by sharp falls in equity markets and indications that supply concerns have been overblown, but were still on track for a fall or more than 4 per cent for the week. Brent crude futures edged up 13 cents to $80.39 a barrel by 0042 GMT. The contract fell 3.4 per cent on Thursday, after hitting a low of $79.80, its weakest since September 24. US West Texas Intermediate (WTI) crude futures were up 11 cents at $71.08 a barrel, after falling 3 per cent in the previous session to the lowest since Sept. 21. Wall Street extended its slide into a sixth session and a global equity index fell to a 1-year low on Thursday as investors feared an escalating US trade war with China and risks from a recent climb in interest rates. Japan's Nikkei was slightly lower in early trading on Friday. On the oil front, US crude inventories rose by 6 million barrels last week, the Energy Information Administration said, more than double analysts' expectations of a 2.6 million-barrel increase. The Organization of the Petroleum Exporting Countries cut its forecast of global demand growth for oil next year for a third straight month, citing headwinds facing the broader economy from trade disputes and volatile emerging markets. OPEC sees the oil market as well supplied and is wary of creating a glut next year, the group's secretary-general said on Thursday. In the US Gulf of Mexico, producers had cut output by 40 per cent on Thursday due to Hurricane Michael, according to the Bureau of Safety and Environmental Enforcement, even as some operators began returning crews to offshore platforms. The cuts represent 680,107 barrels per day of oil production, the bureau said, citing reports from 30 companies. Michael crashed ashore Florida on Wednesday as the third most powerful hurricane to strike the US mainland, leaving seven people least. It has since weakened to a tropical storm.

Oil prices hold ground, but set for 4 per cent weekly fall

Here is why oil is burning a hole in your pocket

The rupee slumped by 33 paise to finish at a fresh lifetime low of 74.39 against the US dollar Tuesday on high crude oil prices, strengthening of the greenback and unabated foreign fund outflows.

At the Interbank Foreign Exchange (Forex), the rupee made a cautious recovery of 18 paise to 73.88 against the US dollar in early trade on fresh selling of the American currency by banks and exporters.

However, the domestic currency failed to sustain the momentum after Brent crude breached the USD 84 per barrel-mark again and the US dollar strengthened overseas.

It finally closed at 74.39 against the US dollar, down by 33 paise, marking its sixth straight session of decline.

On Monday, the domestic unit plummeted by 30 paise to close at record low of 74.06.

The rupee slumped by 33 paise to finish at a fresh lifetime low of 74.39 against the US dollar Tuesday on high crude oil prices, strengthening of the greenback and unabated foreign fund outflows.

The rupee slumped by 33 paise to finish at a fresh lifetime low of 74.39 against the US dollar Tuesday on high crude oil prices, strengthening of the greenback and unabated foreign fund outflows. At the Interbank Foreign Exchange (Forex), the rupee made a cautious recovery of 18 paise to 73.88 against the US dollar in early trade on fresh selling of the American currency by banks and exporters. However, the domestic currency failed to sustain the momentum after Brent crude breached the USD 84 per barrel-mark again and the US dollar strengthened overseas. It finally closed at 74.39 against the US dollar, down by 33 paise, marking its sixth straight session of decline. On Monday, the domestic unit plummeted by 30 paise to close at record low of 74.06.

Rupee slumps 33 paise to close at record low of 74.39

Domestic stock markets started Thursday's session on a negative note, with the BSE benchmark Sensex cracking over 850 points in early session Thursday as <a href="http://www.wionews.com/business-economy/rupee-continues-slide-against-dollar-hits-new-low-7377-169314">the rupee hit another low</a> amid weak global cues and fears of widening current account deficit.

The 50-share Nifty tumbled nearly 250 points to test the 10,600-mark.&nbsp;

Reliance Industries and Eicher Motors were the biggest losers among Nifty50 stocks, sinking 6.5 per cent each.

HDFC Bank, TCS, Infosys, HDFC, ITC, Bajaj Finance, HUL, ICICI Bank, Bajaj Finserv and IndusInd Bank were down 1-4 percent while L&amp;T, Bharti Infratel and Yes Bank gained more than 1 percent.

Meanwhile, international benchmark Brent crude breached the $86 per barrel level, nearing its four-year high.

Brokers said weakness was seen in most Asian markets as high US yield and good economic data led to fear that investors would move to the US, dampened trading sentiments here.

The rupee's plunge to a new record low of 73.72 against the dollar in early trade, too, weighed on investor mood.

Commerce and Industry Minister Suresh Prabhu will hold an inter-ministerial meeting later in the day to discuss trade deficit and its impact on rupee as well as ways to boost exports, an official told PTI.&nbsp;

Representatives from the department of economic affairs, coal ministry, steel ministry, oil ministry and department of pharmaceuticals are expected to attend the meeting.

Foreign portfolio investors (FPIs) bought shares worth a net of Rs 1,550 crore, while domestic institutional investors (DIIs) made purchases to the tune of Rs 1,402 crore Wednesday.

Elsewhere in Asia, Hong Kong's Hang Seng, Japan, Singapore and Taiwan were trading sharply lower by falling over 1 per cent.

The US Dow Jones Industrial Average, however, ended 0.20 per cent higher Wednesday.&nbsp;

(With inputs&nbsp;from PTI)

Domestic stock markets started Thursday's session on a negative note, with the BSE benchmark Sensex cracking over 850 points in early session Thursday as the rupee hit another low amid weak global cues and fears of widening current account deficit.

Domestic stock markets started Thursday's session on a negative note, with the BSE benchmark Sensex cracking over 850 points in early session Thursday as the rupee hit another low amid weak global cues and fears of widening current account deficit. The 50-share Nifty tumbled nearly 250 points to test the 10,600-mark. Reliance Industries and Eicher Motors were the biggest losers among Nifty50 stocks, sinking 6.5 per cent each. HDFC Bank, TCS, Infosys, HDFC, ITC, Bajaj Finance, HUL, ICICI Bank, Bajaj Finserv and IndusInd Bank were down 1-4 percent while L&T, Bharti Infratel and Yes Bank gained more than 1 percent. Meanwhile, international benchmark Brent crude breached the $86 per barrel level, nearing its four-year high. Brokers said weakness was seen in most Asian markets as high US yield and good economic data led to fear that investors would move to the US, dampened trading sentiments here. The rupee's plunge to a new record low of 73.72 against the dollar in early trade, too, weighed on investor mood. Commerce and Industry Minister Suresh Prabhu will hold an inter-ministerial meeting later in the day to discuss trade deficit and its impact on rupee as well as ways to boost exports, an official told PTI. Representatives from the department of economic affairs, coal ministry, steel ministry, oil ministry and department of pharmaceuticals are expected to attend the meeting. Foreign portfolio investors (FPIs) bought shares worth a net of Rs 1,550 crore, while domestic institutional investors (DIIs) made purchases to the tune of Rs 1,402 crore Wednesday. Elsewhere in Asia, Hong Kong's Hang Seng, Japan, Singapore and Taiwan were trading sharply lower by falling over 1 per cent. The US Dow Jones Industrial Average, however, ended 0.20 per cent higher Wednesday. (With inputs from PTI)

Bloodbath in markets, Sensex nosedives over 850 points

The BSE benchmark Sensex cracked over 750&nbsp;points in early session Thursday as the <a href="http://www.wionews.com/business-economy/rupee-continues-slide-against-dollar-hits-new-low-7377-169314">rupee hit another low</a> amid weak global cues and fears of widening current account&nbsp;deficit.

The international benchmark Brent crude breached the $86 per barrel level, nearing its four-year high.

The 30-share Sensex was down as much as 634 points at 35,341.68 while the 50-share Nifty tumbled over 150 points to 10,663.65.&nbsp;

The laggards include Reliance Industries, Hero MotoCorp, Maruti Suzuki, Bharti Airtel, HDFC, Infosys, Coal India, SBI, HDFC Bank, M&amp;M, IndusInd Bank, Adani Ports, Axis Bank, NTPC, and PowerGrid, falling up to 4.75 per cent.

The gauge had lost nearly 550 points in the previous session Wednesday.

Brokers said weakness was seen in most Asian markets as high US yield and good economic data led to fear that investors would move to the US, dampened trading sentiments here.

The rupee's plunge to a new record low of 73.77 against the dollar by falling 44 paise in early trade, too, weighed on investor mood.

Commerce and Industry Minister Suresh Prabhu will hold an inter-ministerial meeting later in the day to discuss trade deficit and its impact on rupee as well as ways to boost exports, an official told PTI.&nbsp;

Representatives from the department of economic affairs, coal ministry, steel ministry, oil ministry and department of pharmaceuticals are expected to attend the meeting.

Foreign portfolio investors (FPIs) bought shares worth a net of Rs 1,550 crore, while domestic institutional investors (DIIs) made purchases to the tune of Rs 1,402 crore Wednesday.

Elsewhere in Asia, Hong Kong's Hang Seng, Japan, Singapore and Taiwan were trading sharply lower by falling over 1 per cent.

The US Dow Jones Industrial Average, however, ended 0.20 per cent higher Wednesday.&nbsp;

The BSE benchmark Sensex cracked over 750 points in early session Thursday as the rupee hit another low amid weak global cues and fears of widening current account deficit.

The BSE benchmark Sensex cracked over 750 points in early session Thursday as the rupee hit another low amid weak global cues and fears of widening current account deficit. The international benchmark Brent crude breached the $86 per barrel level, nearing its four-year high. The 30-share Sensex was down as much as 634 points at 35,341.68 while the 50-share Nifty tumbled over 150 points to 10,663.65. The laggards include Reliance Industries, Hero MotoCorp, Maruti Suzuki, Bharti Airtel, HDFC, Infosys, Coal India, SBI, HDFC Bank, M&M, IndusInd Bank, Adani Ports, Axis Bank, NTPC, and PowerGrid, falling up to 4.75 per cent. The gauge had lost nearly 550 points in the previous session Wednesday. Brokers said weakness was seen in most Asian markets as high US yield and good economic data led to fear that investors would move to the US, dampened trading sentiments here. The rupee's plunge to a new record low of 73.77 against the dollar by falling 44 paise in early trade, too, weighed on investor mood. Commerce and Industry Minister Suresh Prabhu will hold an inter-ministerial meeting later in the day to discuss trade deficit and its impact on rupee as well as ways to boost exports, an official told PTI. Representatives from the department of economic affairs, coal ministry, steel ministry, oil ministry and department of pharmaceuticals are expected to attend the meeting. Foreign portfolio investors (FPIs) bought shares worth a net of Rs 1,550 crore, while domestic institutional investors (DIIs) made purchases to the tune of Rs 1,402 crore Wednesday. Elsewhere in Asia, Hong Kong's Hang Seng, Japan, Singapore and Taiwan were trading sharply lower by falling over 1 per cent. The US Dow Jones Industrial Average, however, ended 0.20 per cent higher Wednesday.

With rupee in freefall, Sensex tanks over 750 points

Oil prices hit their highest since <a href="http://www.wionews.com/business-economy/rupee-sinks-new-low-over-trumps-iran-oil-sanctions-fear-spike-crude-167524">November 2014 on Tuesday</a>, topping four-year highs from the previous day, as looming US sanctions against Iran and reluctance by the Organization of the Petroleum Exporting Countries to raise output supported markets.

<a href="http://www.wionews.com/business-economy/indias-crude-oil-demand-hit-500-million-tonnes-2040-report-167517">Also Read: India's crude oil demand to hit 500 million tonnes by 2040</a>

Brent crude futures rose to $81.62 a barrel around 0600 GMT, levels not seen since November 2014. They were still at $81.61 at 0610 GMT, up 41 cents, or 0.5 per cent from their last close.

US West Texas Intermediate (WTI) crude futures were at $72.37 a barrel, up 29 cents, or 0.4 per cent from their last settlement.

The United States from November 4 will target Iran's oil exports with sanctions, and Washington is putting pressure on governments and companies around the world to fall in line and cut purchases from Tehran.

"Iran will lose sizeable export volumes, and given OPEC's reluctance to raise output, the market is ill-equipped to fill the supply gap," Harry Tchilinguirian, global head of commodity markets strategy at French bank BNP Paribas, told the Reuters Global Oil Forum on Tuesday.

OPEC is the name given to the group of oil producers, including non-OPEC supplier Russia, that agreed to curtail output starting in 2017.

While Britain, China, France, Germany, Russia and Iran on Tuesday said they were determined to develop payment mechanisms to continue trading despite the sanctions by the United States, most analysts expect Washington's actions to knock between 1 million and 1.5 million barrels per day (bpd) of crude oil supplies out of markets.

US President Donald Trump has demanded that OPEC and Russia increase their supplies to make up for the expected fall in Iranian exports. Iran is the third-largest producer in OPEC.

OPEC and Russia, however, have so far rebuffed such calls.

"Any formal decision on oil output by the producer group, barring an extraordinary meeting, will only take place at the December meeting. Thus the window period for oil prices to potentially extend gains is quite wide as Iran loses exports and OPEC remains on standby," Tchilinguirian said.

Ashley Kelty, oil analyst at financial services firm Cantor Fitzgerald said crude could soon hit $90 per barrel.

"We don't believe OPEC can actually raise output significantly in the near term, as the physical spare capacity in the system is not that high," Kelty said.

"If OPEC is physically unable to ramp up production, then Oil prices do indeed have much further to run," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore.

Bank of America Merrill Lynch lifted its average Brent price forecast for 2019 from $75 per barrel to $80, and increased its WTI forecast by $2 to $71 per barrel.

It said "the Iran factor may dominate the market near-term and cause a (crude price) spike," although it added that emerging market "demand concerns could reappear thereafter."

Indian refiners, hit by high crude prices and a sliding rupee, are planning to reduce oil imports in what could be a sign that high prices are starting to hurt demand.

Despite the bullish sentiment, commodity merchant Vitol said current prices already reflected the tighter market, and that more oil would be coming in 2019.

Vitol also said that non-OPEC producers, especially the United States, may insert up to 2 million bpd of new crude into the market in 2019.

To reflect rising US oil exports, CME Group Inc said on Monday it will launch a WTI Houston crude futures contract in the fourth quarter.

CME's announcement comes after rival Intercontinental Exchange said in July it would offer a Houston crude futures contract.

Oil prices hit their highest since November 2014 on Tuesday, topping four-year highs from the previous day, as looming US sanctions against Iran and reluctance by the Organization of the Petroleum Exporting Countries to raise output supported markets.

Oil prices hit their highest since November 2014 on Tuesday, topping four-year highs from the previous day, as looming US sanctions against Iran and reluctance by the Organization of the Petroleum Exporting Countries to raise output supported markets. Also Read: India's crude oil demand to hit 500 million tonnes by 2040 Brent crude futures rose to $81.62 a barrel around 0600 GMT, levels not seen since November 2014. They were still at $81.61 at 0610 GMT, up 41 cents, or 0.5 per cent from their last close. US West Texas Intermediate (WTI) crude futures were at $72.37 a barrel, up 29 cents, or 0.4 per cent from their last settlement. The United States from November 4 will target Iran's oil exports with sanctions, and Washington is putting pressure on governments and companies around the world to fall in line and cut purchases from Tehran. "Iran will lose sizeable export volumes, and given OPEC's reluctance to raise output, the market is ill-equipped to fill the supply gap," Harry Tchilinguirian, global head of commodity markets strategy at French bank BNP Paribas, told the Reuters Global Oil Forum on Tuesday. OPEC is the name given to the group of oil producers, including non-OPEC supplier Russia, that agreed to curtail output starting in 2017. While Britain, China, France, Germany, Russia and Iran on Tuesday said they were determined to develop payment mechanisms to continue trading despite the sanctions by the United States, most analysts expect Washington's actions to knock between 1 million and 1.5 million barrels per day (bpd) of crude oil supplies out of markets. US President Donald Trump has demanded that OPEC and Russia increase their supplies to make up for the expected fall in Iranian exports. Iran is the third-largest producer in OPEC. OPEC and Russia, however, have so far rebuffed such calls. "Any formal decision on oil output by the producer group, barring an extraordinary meeting, will only take place at the December meeting. Thus the window period for oil prices to potentially extend gains is quite wide as Iran loses exports and OPEC remains on standby," Tchilinguirian said. Ashley Kelty, oil analyst at financial services firm Cantor Fitzgerald said crude could soon hit $90 per barrel. "We don't believe OPEC can actually raise output significantly in the near term, as the physical spare capacity in the system is not that high," Kelty said. "If OPEC is physically unable to ramp up production, then Oil prices do indeed have much further to run," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore. Bank of America Merrill Lynch lifted its average Brent price forecast for 2019 from $75 per barrel to $80, and increased its WTI forecast by $2 to $71 per barrel. It said "the Iran factor may dominate the market near-term and cause a (crude price) spike," although it added that emerging market "demand concerns could reappear thereafter." Indian refiners, hit by high crude prices and a sliding rupee, are planning to reduce oil imports in what could be a sign that high prices are starting to hurt demand. Despite the bullish sentiment, commodity merchant Vitol said current prices already reflected the tighter market, and that more oil would be coming in 2019. Vitol also said that non-OPEC producers, especially the United States, may insert up to 2 million bpd of new crude into the market in 2019. To reflect rising US oil exports, CME Group Inc said on Monday it will launch a WTI Houston crude futures contract in the fourth quarter. CME's announcement comes after rival Intercontinental Exchange said in July it would offer a Houston crude futures contract.

International oil prices hit four-year high as OPEC, Russia resist output rise

Oil prices eased&nbsp;on Friday&nbsp;as Russia hinted it may gradually increase output, after having withheld supplies in concert with producer cartel OPEC since 2017.

Brent crude futures were at $78.63 per barrel at 0534 GMT, down 16 cents from their last close, and more than 2.2 percent below the $80.50 multi-year high they reached on May 17. Brent broke through $80 for the first time in more than three years earlier in May.

US&nbsp;West Texas Intermediate (WTI) crude futures were at $70.60 a barrel, down 11 cents from their last settlement.

"Oil prices are now starting to drift a little," said Greg McKenna,&nbsp;chief&nbsp;market strategist at futures brokerage AxiTrader, adding that this was due to OPEC's and Russia's "moves toward an increase in production" at a meeting scheduled for next month.

The Middle East dominated Organization of the Petroleum Exporting Countries (OPEC), as well as a group of non-OPEC producers led by Russia, started withholding output in 2017 to tighten the market and prop up prices.

But Russia, in particular, has been floating a potential end to the production cuts, with energy minister Alexander Novak saying&nbsp;on Thursday&nbsp;that restrictions on oil production could be eased "softly" if OPEC and non-OPEC countries see the oil market balancing in June.

"The Russians have always struck me as production cut tourists keen to get off the boat and crank up production as soon as inventories were stabilised and prices once again elevated ... That possibility is top of the mind for traders and as result&nbsp;oil prices are slipping," McKenna said.

Still, the downside risk to oil prices could be limited by geopolitical factors.&nbsp;

"Oil prices, however, look primed to withstand the slip as heightened geopolitical risks from the Middle East, (and) raised prospects of a supply squeeze in Venezuela and Iran permeates global market sentiment," Benjamin Lu, an investment analyst at Phillip Futures in Singapore said in a note to clients.

While Russia and OPEC benefit from higher oil prices, which have risen by almost 20 percent since the end of last year, their voluntary output cuts have opened the door to other producers to ramp up output and gain market share.

US&nbsp;crude oil production has risen by more than a quarter in the last two years, to 10.73 million barrels per day (bpd). Only Russia produces more, at around 11 million bpd.

Output by producers like the United States, Canada or Brazil which are not bound by the OPEC/Russian led agreement to cut, will likely rise further as higher crude prices improve their profitability.

"With oil prices rising more than costs, average industry profitability has turned positive this year," Bernstein Energy said in a note this week, adding that the 50 largest listed oil companies globally "need $47 per barrel oil prices to break even in aggregate".

US West Texas Intermediate (WTI) crude futures were at $70.60 a barrel, down 11 cents from their last settlement

Oil prices eased on Friday as Russia hinted it may gradually increase output, after having withheld supplies in concert with producer cartel OPEC since 2017. Brent crude futures were at $78.63 per barrel at 0534 GMT, down 16 cents from their last close, and more than 2.2 percent below the $80.50 multi-year high they reached on May 17. Brent broke through $80 for the first time in more than three years earlier in May. US West Texas Intermediate (WTI) crude futures were at $70.60 a barrel, down 11 cents from their last settlement. "Oil prices are now starting to drift a little," said Greg McKenna, chief market strategist at futures brokerage AxiTrader, adding that this was due to OPEC's and Russia's "moves toward an increase in production" at a meeting scheduled for next month. The Middle East dominated Organization of the Petroleum Exporting Countries (OPEC), as well as a group of non-OPEC producers led by Russia, started withholding output in 2017 to tighten the market and prop up prices. But Russia, in particular, has been floating a potential end to the production cuts, with energy minister Alexander Novak saying on Thursday that restrictions on oil production could be eased "softly" if OPEC and non-OPEC countries see the oil market balancing in June. "The Russians have always struck me as production cut tourists keen to get off the boat and crank up production as soon as inventories were stabilised and prices once again elevated ... That possibility is top of the mind for traders and as result oil prices are slipping," McKenna said. Still, the downside risk to oil prices could be limited by geopolitical factors. "Oil prices, however, look primed to withstand the slip as heightened geopolitical risks from the Middle East, (and) raised prospects of a supply squeeze in Venezuela and Iran permeates global market sentiment," Benjamin Lu, an investment analyst at Phillip Futures in Singapore said in a note to clients. While Russia and OPEC benefit from higher oil prices, which have risen by almost 20 percent since the end of last year, their voluntary output cuts have opened the door to other producers to ramp up output and gain market share. US crude oil production has risen by more than a quarter in the last two years, to 10.73 million barrels per day (bpd). Only Russia produces more, at around 11 million bpd. Output by producers like the United States, Canada or Brazil which are not bound by the OPEC/Russian led agreement to cut, will likely rise further as higher crude prices improve their profitability. "With oil prices rising more than costs, average industry profitability has turned positive this year," Bernstein Energy said in a note this week, adding that the 50 largest listed oil companies globally "need $47 per barrel oil prices to break even in aggregate".

Oil prices fall as Russia warns of gradual output increase

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