Oil prices crept higher on Wednesday, supported by supply cuts by <a href="https://www.wionews.com/business-economy/oil-prices-rise-on-opec-cuts-us-sanctions-against-iran-venezuela-208685">producer club OPEC and US sanctions</a> against oil exporters Iran and Venezuela, but restricted by expectations that an economic slowdown could soon dent fuel consumption.

International benchmark Brent futures were at $70.66 per barrel at 0158 GMT, up 5 cents from their last close.

US West Texas Intermediate (WTI) crude oil futures were at $64.10 per barrel, up 12 cents, or 0.2 per cent, above their last settlement.

Both benchmarks hit five-month highs on Tuesday, before easing on global growth worries.

Overall, oil markets have been tightened this year by US sanctions on oil exporters Iran and Venezuela, as well as supply cuts by the producer club of the Organization of the Petroleum Exporting Countries (OPEC) and some non-affiliated producers, a group known as OPEC+.

As a result, Brent and WTI crude oil futures have risen by around 40 per cent and 30 per cent respectively since the start of the year.

"The global oil market is clearly moving back towards balance thanks to OPEC+ production cuts. OPEC production has fallen 1.98 million barrels per day (bpd) from October levels," ING bank said in a note.

The Dutch bank said the reduction was not only down to voluntary supply cuts, which the group started this year to prop up prices.

"Venezuelan oil output is estimated to have fallen from 1.19 million bpd in October to 890,000 bpd in March, while output from Iran has fallen from 3.33 million bpd to 2.71 million bpd due to sanctions. Declines from these two exempt countries account for almost 47 percent of the reduction seen from OPEC," ING said.

Despite the OPEC-led cuts, not all regions are in tight supply.

Oil production in the United States has risen by more than 2 million barrels per day since early 2018, to a record 12.2 million bpd.

"WTI has not seen the same strength (as Brent)... given the relatively more bearish fundamentals in the US market," said ING bank.

"US crude oil inventories remain stubbornly high," it added.

US crude stocks rose by 4.1 million barrels in the week to April 5, to 455.8 million barrels, data from industry group the American Petroleum Institute showed on Tuesday.

On the demand side, there are concerns that an economic slowdown will soon hit fuel consumption.

The International Monetary Fund (IMFI warned on Tuesday that the global economy was slowing more than expected and that a sharp downturn may be looming.

In its third downgrade since October, the IMF said the global economy will likely grow 3.3 per cent this year, the slowest expansion since 2016. The forecast cut 0.2 percentage point from the IMF's outlook in January.

Oil prices crept higher on Wednesday, supported by supply cuts by producer club OPEC and US sanctions against oil exporters Iran and Venezuela, but restricted by expectations that an economic slowdown could soon dent fuel consumption.

Oil prices crept higher on Wednesday, supported by supply cuts by producer club OPEC and US sanctions against oil exporters Iran and Venezuela, but restricted by expectations that an economic slowdown could soon dent fuel consumption. International benchmark Brent futures were at $70.66 per barrel at 0158 GMT, up 5 cents from their last close. US West Texas Intermediate (WTI) crude oil futures were at $64.10 per barrel, up 12 cents, or 0.2 per cent, above their last settlement. Both benchmarks hit five-month highs on Tuesday, before easing on global growth worries. Overall, oil markets have been tightened this year by US sanctions on oil exporters Iran and Venezuela, as well as supply cuts by the producer club of the Organization of the Petroleum Exporting Countries (OPEC) and some non-affiliated producers, a group known as OPEC+. As a result, Brent and WTI crude oil futures have risen by around 40 per cent and 30 per cent respectively since the start of the year. "The global oil market is clearly moving back towards balance thanks to OPEC+ production cuts. OPEC production has fallen 1.98 million barrels per day (bpd) from October levels," ING bank said in a note. The Dutch bank said the reduction was not only down to voluntary supply cuts, which the group started this year to prop up prices. "Venezuelan oil output is estimated to have fallen from 1.19 million bpd in October to 890,000 bpd in March, while output from Iran has fallen from 3.33 million bpd to 2.71 million bpd due to sanctions. Declines from these two exempt countries account for almost 47 percent of the reduction seen from OPEC," ING said. Despite the OPEC-led cuts, not all regions are in tight supply. Oil production in the United States has risen by more than 2 million barrels per day since early 2018, to a record 12.2 million bpd. "WTI has not seen the same strength (as Brent)... given the relatively more bearish fundamentals in the US market," said ING bank. "US crude oil inventories remain stubbornly high," it added. US crude stocks rose by 4.1 million barrels in the week to April 5, to 455.8 million barrels, data from industry group the American Petroleum Institute showed on Tuesday. On the demand side, there are concerns that an economic slowdown will soon hit fuel consumption. The International Monetary Fund (IMFI warned on Tuesday that the global economy was slowing more than expected and that a sharp downturn may be looming. In its third downgrade since October, the IMF said the global economy will likely grow 3.3 per cent this year, the slowest expansion since 2016. The forecast cut 0.2 percentage point from the IMF's outlook in January.

Oil prices edge higher on OPEC cuts, sanctions on Iran, Venezuela

In a move aimed&nbsp;at <a href="http://www.wionews.com/world/hopefully-opec-will-be-keeping-oil-flows-as-is-world-does-not-need-higher-oil-prices-trump-181746">President Trump, Saudi Arabia's oil minister</a> said the US should not try to dictate policy to the Organisation of the Petroleum Exporting Countries OPEC.

President Trump in a tweet on <a href="http://www.wionews.com/business-economy/oil-prices-fall-on-swelling-glut-economic-growth-concerns-181652">Wednesday had said the world</a> does not want to see, or need higher oil prices.&nbsp;

OPEC ministers are meeting on Vienna today to evolve a consensus to reach oil production cuts after global oil prices fell sharply in November, however, Saudi Arabia's oil minister Khalid al Falih said his country does not need anyone's permission to cut production.

"We don't need permission from anyone to cut," Khalid Al-Falih said ahead of the OPEC meeting, adding,"the US is not in a position to tell us what to do."

The Saudi oil minister, however, added that he was looking at "sufficient cut to balance the market, equally distributed between countries".

OPEC is trying to convince Russia, a non-OPEC member to cut production in order to keep oil prices steady. &nbsp;Oman's oil minister Mohammed bin Hamad had said earlier that Russia had agreed to cut production but Kremlin hasn't confirmed it yet.

President Putin had earlier said he was comfortable with oil prices at $60 a barrel.&nbsp;

Saudi Arabia wants to curb output by at least 1.3 million barrels per day after a glut in the market led to oil prices crashing from over $80 a barrel in October to below $60 through in November. OPEC's daily output stood at 32.99 million barrels in October, according to the International Energy Agency.

Brent oil prices sank under $60 on after Saudi Arabia made remarks that were deemed overly cautious by analysts ahead of OPEC's latest output decision. London's Brent North Sea oil sank $2.94 to $58.62 per barrel.&nbsp;

OPEC's third-biggest producer Iran wants to be exempted from any output cuts. Oil minister Bijan Namdar Zanganeh said: "The Islamic republic doesn't join any agreement for cutting production because of the special situation Iran faces," referring to US oil sanctions on Iran.

Russia, Saudi Arabia and the United States are the major crude oil producing nations in the world with the US not part of any oil cartel due to its stringent anti-trust legislation.&nbsp;

Russian officials are due to meet OPEC members on Friday for a final call on production with analysts speculating that Saudi Arabia may go in for a "quite cut" to assuage its domestic economy.

In a move aimed at President Trump, Saudi Arabia's oil minister said the US should not try to dictate policy to the Organisation of the Petroleum Exporting Countries OPEC.

In a move aimed at President Trump, Saudi Arabia's oil minister said the US should not try to dictate policy to the Organisation of the Petroleum Exporting Countries OPEC. President Trump in a tweet on Wednesday had said the world does not want to see, or need higher oil prices. OPEC ministers are meeting on Vienna today to evolve a consensus to reach oil production cuts after global oil prices fell sharply in November, however, Saudi Arabia's oil minister Khalid al Falih said his country does not need anyone's permission to cut production. "We don't need permission from anyone to cut," Khalid Al-Falih said ahead of the OPEC meeting, adding,"the US is not in a position to tell us what to do." The Saudi oil minister, however, added that he was looking at "sufficient cut to balance the market, equally distributed between countries". OPEC is trying to convince Russia, a non-OPEC member to cut production in order to keep oil prices steady. Oman's oil minister Mohammed bin Hamad had said earlier that Russia had agreed to cut production but Kremlin hasn't confirmed it yet. President Putin had earlier said he was comfortable with oil prices at $60 a barrel. Saudi Arabia wants to curb output by at least 1.3 million barrels per day after a glut in the market led to oil prices crashing from over $80 a barrel in October to below $60 through in November. OPEC's daily output stood at 32.99 million barrels in October, according to the International Energy Agency. Brent oil prices sank under $60 on after Saudi Arabia made remarks that were deemed overly cautious by analysts ahead of OPEC's latest output decision. London's Brent North Sea oil sank $2.94 to $58.62 per barrel. OPEC's third-biggest producer Iran wants to be exempted from any output cuts. Oil minister Bijan Namdar Zanganeh said: "The Islamic republic doesn't join any agreement for cutting production because of the special situation Iran faces," referring to US oil sanctions on Iran. Russia, Saudi Arabia and the United States are the major crude oil producing nations in the world with the US not part of any oil cartel due to its stringent anti-trust legislation. Russian officials are due to meet OPEC members on Friday for a final call on production with analysts speculating that Saudi Arabia may go in for a "quite cut" to assuage its domestic economy.

US not in a position to tell us what to do, says Saudi Arabia on oil price cut

With oil traders forecasting crude oil to rise to $100 a barrel by the end of the year, Indian refiners are considering cutting back their imports and relying more on cheaper crude already stored in inventories, according to industry executives.

Benchmark Brent crude oil futures surged 2 per cent on Monday to over $80 a barrel as markets have tightened ahead of the start of sanctions by the United States on Iran, with commodity merchants Trafigura and Mercuria predicting $100 oil by the end of 2018.

The soaring oil prices are occurring at the same time emerging market currencies, such as India's rupee, are under pressure. That combination means Indian crude imports are 47 per cent more expensive this year in rupee terms.

To cope with the higher costs, India, the world's third-biggest oil importer, is considering cutting its imports and relying on stockpiled crude, said two refinery sources with knowledge of the matter who asked to remain unidentified.

The Chairman of India's biggest oil refiner Indian Oil Corp, Sanjiv Singh, confirmed the plan to cut imports in favour of stockpiled crude was discussed at a Sept. 15 meeting attended by refinery officials.

"Apart from other options we are also considering reducing inventory to cut import costs," said Singh, adding that the refiners would also look at reviewing their crude slate and widening their crude sources.

Brent has climbed 30 per cent to $80.47 a barrel on Monday from its low for the year on February 13. However, in rupee terms, Brent has gained 47 per cent since then as the Indian currency has plunged to a record low against the dollar.

The rupee was at 72.53 to the U.S. dollar at 0822 GMT.

Indian refiners must pay for their crude in dollars and the soaring import costs are becoming a headache for Prime Minister Narendra Modi's government ahead of general elections next year.

India' petrol prices are among the highest in the world in terms of how much it costs as a portion of gross domestic product per person.

R. Ramachandran, the head of refiners at Bharat Petroleum Corp, also confirmed that the meeting, which included all of India's refinery companies, took place and that refiners may cut their imports.

"We are looking at various options to contain the costs including reducing our inventory. This will be a coordinated effort among refiners", he said. "If need be, we will talk to other countries for a coordinated effort."

Other Indian refiners including Hindustan Petroleum Corp, Reliance Industries and Nayara Energy did not respond to emailed requests for comment sent on Sunday. Mangalore Refinery and Petrochemicals Ltd declined to comment.

Shares in Indian refiners were trading lower amid a wider sell off in the markets.

India imports more than 80 per cent of its oil needs. The country imported 4.4 million barrels per day (bpd) oil in August, costing about $12 billion, according to government data.

India's crude inventory levels are not made public.

Risky strategy

aUsing up crude inventories could save Indian refiners short-term import costs but poses the risk that if prices do not ease later on the companies will have to import more later at higher prices.

Despite this, the Indian government supports the plan, the two unidentified sources said. India's Ministry of Petroleum and Natural Gas did not respond to an email from Reuters seeking comments on the plans to curtail imports.

Former BPCL Chairman R.K. Singh said India's state refiners had resorted to this strategy in the past.

In 2013, BPCL halved its crude inventories to an average of 15 days of supply for its operations, when the rupee declined to below 68 to the dollar and oil prices were over $100 per barrel, he said.

Oil prices have steadily gained since the Organization of the Petroleum Exporting Countries (OPEC) started curtailing production together with other, non-OPEC suppliers, including top crude producer Russia.

However, prices have surged recently ahead of the start of the U.S. sanctions on Iran, OPEC's third-largest producer and a major Indian crude supplier, that is set for Nov. 4.

With oil traders forecasting crude oil to rise to $100 a barrel by the end of the year, Indian refiners are considering cutting back their imports and relying more on cheaper crude already stored in inventories, according to industry executives.

With oil traders forecasting crude oil to rise to $100 a barrel by the end of the year, Indian refiners are considering cutting back their imports and relying more on cheaper crude already stored in inventories, according to industry executives. Benchmark Brent crude oil futures surged 2 per cent on Monday to over $80 a barrel as markets have tightened ahead of the start of sanctions by the United States on Iran, with commodity merchants Trafigura and Mercuria predicting $100 oil by the end of 2018. The soaring oil prices are occurring at the same time emerging market currencies, such as India's rupee, are under pressure. That combination means Indian crude imports are 47 per cent more expensive this year in rupee terms. To cope with the higher costs, India, the world's third-biggest oil importer, is considering cutting its imports and relying on stockpiled crude, said two refinery sources with knowledge of the matter who asked to remain unidentified. The Chairman of India's biggest oil refiner Indian Oil Corp, Sanjiv Singh, confirmed the plan to cut imports in favour of stockpiled crude was discussed at a Sept. 15 meeting attended by refinery officials. "Apart from other options we are also considering reducing inventory to cut import costs," said Singh, adding that the refiners would also look at reviewing their crude slate and widening their crude sources. Brent has climbed 30 per cent to $80.47 a barrel on Monday from its low for the year on February 13. However, in rupee terms, Brent has gained 47 per cent since then as the Indian currency has plunged to a record low against the dollar. The rupee was at 72.53 to the U.S. dollar at 0822 GMT. Indian refiners must pay for their crude in dollars and the soaring import costs are becoming a headache for Prime Minister Narendra Modi's government ahead of general elections next year. India' petrol prices are among the highest in the world in terms of how much it costs as a portion of gross domestic product per person. R. Ramachandran, the head of refiners at Bharat Petroleum Corp, also confirmed that the meeting, which included all of India's refinery companies, took place and that refiners may cut their imports. "We are looking at various options to contain the costs including reducing our inventory. This will be a coordinated effort among refiners", he said. "If need be, we will talk to other countries for a coordinated effort." Other Indian refiners including Hindustan Petroleum Corp, Reliance Industries and Nayara Energy did not respond to emailed requests for comment sent on Sunday. Mangalore Refinery and Petrochemicals Ltd declined to comment. Shares in Indian refiners were trading lower amid a wider sell off in the markets. India imports more than 80 per cent of its oil needs. The country imported 4.4 million barrels per day (bpd) oil in August, costing about $12 billion, according to government data. India's crude inventory levels are not made public. Risky strategy aUsing up crude inventories could save Indian refiners short-term import costs but poses the risk that if prices do not ease later on the companies will have to import more later at higher prices. Despite this, the Indian government supports the plan, the two unidentified sources said. India's Ministry of Petroleum and Natural Gas did not respond to an email from Reuters seeking comments on the plans to curtail imports. Former BPCL Chairman R.K. Singh said India's state refiners had resorted to this strategy in the past. In 2013, BPCL halved its crude inventories to an average of 15 days of supply for its operations, when the rupee declined to below 68 to the dollar and oil prices were over $100 per barrel, he said. Oil prices have steadily gained since the Organization of the Petroleum Exporting Countries (OPEC) started curtailing production together with other, non-OPEC suppliers, including top crude producer Russia. However, prices have surged recently ahead of the start of the U.S. sanctions on Iran, OPEC's third-largest producer and a major Indian crude supplier, that is set for Nov. 4.

As oil forecasts call for $100, India considers cutting back crude imports

Crude oil futures rose sharply on Monday amid renewed speculation that major producers including Saudi Arabia and Russia could cooperate to tackle weak prices and rein in oversupply. 
 
Brent crude futures for November delivery were up $2.09 per barrel at $48.92 a barrel at 0902 GMT. 
 
US crude for October delivery was up $1.70 a barrel at $46.14 a barrel. 
 
Saudi Arabia and Russia later on Monday are due to make a joint statement during the G20 summit in China calling for cooperation to support oil markets, several sources with knowledge of the matter said. 
 
One of the sources added Russia would likely attend the upcoming meeting of the Organisation of the Petroleum Exporting Countries which will be held in Vienna in November. 
 
This comes after Saudi deputy crown prince told Russian President Vladimir Putin on the sidelines of the same summit that cooperation between the two countries would bring benefit to the global oil market. 
 
Saudi energy minister Khalid al-Falih will make a &quot;significant announcement&quot; at a news conference at 0930 at the summit. 
 
&quot;Verbal intervention was again needed to trigger a recovery towards $50,&quot; senior ABN Amro economist Hans van Cleef said. 
 
&quot;After all, if prices remain too low ahead of the meeting, there is a risk that at some point Russia and Saudi Arabia actually need to act. That would probably be the last thing they want as long as Iran is raising output.&quot; 
 
Brent rallied to above $50 a barrel in late August, helped by growing talk of a coordinated production freeze, but prices have since fallen as few believe OPEC will act. 
 
Russian Energy Minister Alexander Novak has said that an oil production freeze would be one of the issues discussed by crude producers later this month in Algeria. 
 
Iran, OPEC&#39;s third largest producer, has said it would only cooperate in talks to freeze output if fellow exporters recognised its right to fully regain market share. 
 
Iran is ready to raise its output to 4 million barrels per day in a couple of months depending on market demand, a senior official from the National Iranian Oil Company said. 
 
&quot;Even if successful, an OPEC freeze would likely be a short-term positive but a medium-term negative for oil prices,&quot; Morgan Stanley analysts wrote in a note. 
 
(Reuters)

Brent crude futures for November delivery were up $2.09 per barrel at $48.92 a barrel

Crude oil futures rose sharply on Monday amid renewed speculation that major producers including Saudi Arabia and Russia could cooperate to tackle weak prices and rein in oversupply. Brent crude futures for November delivery were up $2.09 per barrel at $48.92 a barrel at 0902 GMT. US crude for October delivery was up $1.70 a barrel at $46.14 a barrel. Saudi Arabia and Russia later on Monday are due to make a joint statement during the G20 summit in China calling for cooperation to support oil markets, several sources with knowledge of the matter said. One of the sources added Russia would likely attend the upcoming meeting of the Organisation of the Petroleum Exporting Countries which will be held in Vienna in November. This comes after Saudi deputy crown prince told Russian President Vladimir Putin on the sidelines of the same summit that cooperation between the two countries would bring benefit to the global oil market. Saudi energy minister Khalid al-Falih will make a "significant announcement" at a news conference at 0930 at the summit. "Verbal intervention was again needed to trigger a recovery towards $50," senior ABN Amro economist Hans van Cleef said. "After all, if prices remain too low ahead of the meeting, there is a risk that at some point Russia and Saudi Arabia actually need to act. That would probably be the last thing they want as long as Iran is raising output." Brent rallied to above $50 a barrel in late August, helped by growing talk of a coordinated production freeze, but prices have since fallen as few believe OPEC will act. Russian Energy Minister Alexander Novak has said that an oil production freeze would be one of the issues discussed by crude producers later this month in Algeria. Iran, OPEC's third largest producer, has said it would only cooperate in talks to freeze output if fellow exporters recognised its right to fully regain market share. Iran is ready to raise its output to 4 million barrels per day in a couple of months depending on market demand, a senior official from the National Iranian Oil Company said. "Even if successful, an OPEC freeze would likely be a short-term positive but a medium-term negative for oil prices," Morgan Stanley analysts wrote in a note. (Reuters)

Oil jumps amid talk of producer action to support prices

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Oil prices edge higher on OPEC cuts, sanctions on Iran, Venezuela

US not in a position to tell us what to do, says Saudi Arabia on oil price cut

As oil forecasts call for $100, India considers cutting back crude imports

Oil jumps amid talk of producer action to support prices