India is the world's third-largest oil market. It imports nearly 85% of its crude. Petrol prices in India have crossed 100 rupees/litre. What can the govt do to help consumers? WION's Palki Sharma has the details.

Gravitas: What's India's Oil Strategy?

Is Saudi Arabia witnessing a "theological" shift? Social changes are slowly sweeping through the kingdom. After opening cinemas, allowing Christmas celebrations, letting women drive, and permitting them to attend concerts - the kingdom will now let women serve in the armed forces.

Saudi women can now join the Royal Army, the Navy, the Air Force, and the Armed Forces Medical Services.

It's a major step in the right direction for a country long curtailed by uncompromising religious police for decades. According to the Saudi Ministry of Defence, men and women can now apply for equal positions in the military through a unified admission portal.

Under this, women will be recruited as soldiers, lance corporals and sergeants. The candidates must be between the age of 21 and 40 and must be 155 centimetres tall. In addition, they must have a high school education and cannot be married to a non-Saudi man.

This move is part of Crown Prince Mohammed Bin Salman's Vision 2030 initiative where women are being allowed to advance in various fields. In the future, the Saudi establishment plans to relax the laws even further by letting women do most jobs that are reserved for men like waiting tables in restaurants and being cashiers at shopping malls.

Also read:&nbsp;<a href="http://13.235.153.162/world/us-reaffirms-defence-partnership-with-saudi-arabia-in-face-of-houthi-attacks-364791" hreflang="en">US reaffirms 'defence partnership' with Saudi Arabia in face of Houthi attacks</a>

But whether Saudi conservatives agree to such reforms is tough to determine. While Saudi Arabia embraces progressive reforms, Iran seems to be heading in a different direction. Ayatollah Khamenei, the Supreme Leader of Iran has issued a fatwa stating that women in cartoons must be depicted wearing a hijab.

Also read:&nbsp;<a href="http://13.235.153.162/opinions-blogs/opinion-what-does-it-take-to-recontextualise-islam-in-saudi-schoolbooks-364712" hreflang="en">Opinion: What does it take to recontextualise Islam in Saudi schoolbooks?</a>

"Although wearing hijab in such a hypothetical situation is not required per sat, observing hijab in animation is required due to the consequences of not wearing the hijab", he recently said.

Since Iran's Islamic Revolution 40 years ago, women have been forced to don the hijab. Even though there are no laws compelling them to do so, government officials have set certain dressing standards for women like forcing them to cover their hair for the sake of modesty. Those who don't are often reprimanded, fined, even arrested.

Is Saudi Arabia witnessing a "theological" shift? Social changes are slowly sweeping through the kingdom. After opening cinemas, allowing Christmas celebrations, letting women drive, and permitting them to attend concerts - the kingdom will now let women serve in the armed forces.

Is Saudi Arabia witnessing a "theological" shift? Social changes are slowly sweeping through the kingdom. After opening cinemas, allowing Christmas celebrations, letting women drive, and permitting them to attend concerts - the kingdom will now let women serve in the armed forces. Saudi women can now join the Royal Army, the Navy, the Air Force, and the Armed Forces Medical Services. It's a major step in the right direction for a country long curtailed by uncompromising religious police for decades. According to the Saudi Ministry of Defence, men and women can now apply for equal positions in the military through a unified admission portal. Under this, women will be recruited as soldiers, lance corporals and sergeants. The candidates must be between the age of 21 and 40 and must be 155 centimetres tall. In addition, they must have a high school education and cannot be married to a non-Saudi man. This move is part of Crown Prince Mohammed Bin Salman's Vision 2030 initiative where women are being allowed to advance in various fields. In the future, the Saudi establishment plans to relax the laws even further by letting women do most jobs that are reserved for men like waiting tables in restaurants and being cashiers at shopping malls. Also read: US reaffirms 'defence partnership' with Saudi Arabia in face of Houthi attacks But whether Saudi conservatives agree to such reforms is tough to determine. While Saudi Arabia embraces progressive reforms, Iran seems to be heading in a different direction. Ayatollah Khamenei, the Supreme Leader of Iran has issued a fatwa stating that women in cartoons must be depicted wearing a hijab. Also read: Opinion: What does it take to recontextualise Islam in Saudi schoolbooks? "Although wearing hijab in such a hypothetical situation is not required per sat, observing hijab in animation is required due to the consequences of not wearing the hijab", he recently said. Since Iran's Islamic Revolution 40 years ago, women have been forced to don the hijab. Even though there are no laws compelling them to do so, government officials have set certain dressing standards for women like forcing them to cover their hair for the sake of modesty. Those who don't are often reprimanded, fined, even arrested.

Saudi Arabian women can now join the armed forces

Oil prices rose on Monday, with Brent futures nearing $60 per barrel, leading to supply cuts among major producers and expected US economic stimulus measures to boost demand.

World Business Watch: Brent approaches $60/barrel, boosted by supply cut among key producers

Oil prices were up two per cent (2%) on Tuesday (February 02) after major producers showed that they were reining in output roughly in line with their commitments.

World Business Watch: Oil prices hit highest in a year as producers limit supply

Iraq has reduced annual supplies of Basra crude oil to several Indian refiners by up to 20% for 2021, industry sources said, in a rare move by OPEC`s second-largest producer which is trying to meet its obligations under the group`s production deal.

Iraq was the top oil supplier to India in 2020 and a reduction in long-term Basra crude supplies could erode Baghdad`s market share in the world`s third largest oil importer and consumer.

Iraq`s Oil Marketing Company (SOMO) has reduced the 2021 Basra term volumes to several Indian refiners by between 10% and 20%, the sources said.

SOMO did not immediately respond to a Reuters request for comment.

"We never expected Iraq to cut volumes. We may have to look for alternatives like tapping the spot markets," said a source at one of the Indian refiners.

"This is happening at a time when we are preparing to increase run rates as fuel demand is recovering." 
SOMO told Indian refiners that it had reduced annual contracts for all Asian buyers to compensate for higher volumes produced in the previous year, one of the sources said.

Iraq has been striving to meet its output target under an agreement between the Organization of Petroleum Exporting Countries and allies, including Russia, to limit production and support global oil prices. Baghdad is heavily reliant on oil revenues to support the country`s economy.

Iraqi Oil Minister Ihsan Abdul Jabbar said earlier in January that it will stay committed to OPEC decisions and compensate for its overproduction.

India on Tuesday complained that recent output cuts by some OPEC countries had created uncertainty for customers and led to a surge in global oil prices.

The changes in term supply volumes come as Iraq launched its new sour crude grade Basra Medium in January by splitting existing Basra Light crude production into two grades to improve the quality of its oil. SOMO also exports a third grade Basra Heavy.

The sources said SOMO cut term supplies to Indian Oil Corp, the country`s top refiner and its biggest Indian client, by 10% to about 350,000 barrels per day (bpd) for all three Basra crude grades, while the volume for Mangalore Refinery and Petrochemicals Ltd fell by 17% to 50,000 bpd.

SOMO is planning to cut the oil contract of Bharat Petroleum by about a quarter from last year`s 100,000 bpd, the sources said, adding that discussions with BPCL were still ongoing as the Indian company`s annual contract begins from April.

Hindustan Petroleum, which buys Basra Light oil, has asked SOMO to reduce its term supplies to about 50,000 bpd in 2021, down from about 80,000 bpd in 2020.

Iraq has agreed to HPCL`s request for lower supplies, while the companies are in talks about additional supply of Basra Medium grade, they said.

The annual oil contract for Reliance Industries, operator of the world`s largest refining complex, has also been changed. Reliance will get 33,000 bpd of Basra Medium grade instead of 66,000 bpd of Basra Light, the sources said.

The Indian refiners did not respond to Reuters` requests for comment.

The supply cuts to India followed a $2.5 billion oil prepayment deal between SOMO and Chinese state oil trader Zhenhua Oil Corp for 48 million barrels of Basra crude.

Iraq has reduced annual supplies of Basra crude oil to several Indian refiners by up to 20% for 2021, industry sources said, in a rare move by OPEC`s second-largest producer which is trying to meet its obligations under the group`s production deal.

Iraq has reduced annual supplies of Basra crude oil to several Indian refiners by up to 20% for 2021, industry sources said, in a rare move by OPEC`s second-largest producer which is trying to meet its obligations under the group`s production deal. Iraq was the top oil supplier to India in 2020 and a reduction in long-term Basra crude supplies could erode Baghdad`s market share in the world`s third largest oil importer and consumer. Iraq`s Oil Marketing Company (SOMO) has reduced the 2021 Basra term volumes to several Indian refiners by between 10% and 20%, the sources said. SOMO did not immediately respond to a Reuters request for comment. "We never expected Iraq to cut volumes. We may have to look for alternatives like tapping the spot markets," said a source at one of the Indian refiners. "This is happening at a time when we are preparing to increase run rates as fuel demand is recovering." SOMO told Indian refiners that it had reduced annual contracts for all Asian buyers to compensate for higher volumes produced in the previous year, one of the sources said. Iraq has been striving to meet its output target under an agreement between the Organization of Petroleum Exporting Countries and allies, including Russia, to limit production and support global oil prices. Baghdad is heavily reliant on oil revenues to support the country`s economy. Iraqi Oil Minister Ihsan Abdul Jabbar said earlier in January that it will stay committed to OPEC decisions and compensate for its overproduction. India on Tuesday complained that recent output cuts by some OPEC countries had created uncertainty for customers and led to a surge in global oil prices. The changes in term supply volumes come as Iraq launched its new sour crude grade Basra Medium in January by splitting existing Basra Light crude production into two grades to improve the quality of its oil. SOMO also exports a third grade Basra Heavy. The sources said SOMO cut term supplies to Indian Oil Corp, the country`s top refiner and its biggest Indian client, by 10% to about 350,000 barrels per day (bpd) for all three Basra crude grades, while the volume for Mangalore Refinery and Petrochemicals Ltd fell by 17% to 50,000 bpd. SOMO is planning to cut the oil contract of Bharat Petroleum by about a quarter from last year`s 100,000 bpd, the sources said, adding that discussions with BPCL were still ongoing as the Indian company`s annual contract begins from April. Hindustan Petroleum, which buys Basra Light oil, has asked SOMO to reduce its term supplies to about 50,000 bpd in 2021, down from about 80,000 bpd in 2020. Iraq has agreed to HPCL`s request for lower supplies, while the companies are in talks about additional supply of Basra Medium grade, they said. The annual oil contract for Reliance Industries, operator of the world`s largest refining complex, has also been changed. Reliance will get 33,000 bpd of Basra Medium grade instead of 66,000 bpd of Basra Light, the sources said. The Indian refiners did not respond to Reuters` requests for comment. The supply cuts to India followed a $2.5 billion oil prepayment deal between SOMO and Chinese state oil trader Zhenhua Oil Corp for 48 million barrels of Basra crude.

Iraq has cut crude oil supplies for most Indian refiners in 2021, report says

Petrol prices in India have touched an all-time high level, with a litre of the transportation fuel selling at ₹84.20 in Delhi on Thursday.

The increase in fuel prices comes after a jump in oil prices in the international market, where brent crude is currently trading at close to $55 a barrel, a $ 5 increase in just around a weeks’ time.

While the rising petrol prices have been burning a hole in Indian consumers’ pocket, common man is now worried about the rising fuel prices with concerns that petrol prices might touch Rs 100 per litre making things worse for them.

In Delhi, petrol now costs Rs 84.20 per litre and diesel is priced at Rs 74.38. In Mumbai, petrol comes for Rs 90.83 a litre and diesel for Rs 81.07.

This is the highest ever price of petrol in Delhi, while diesel is at record high in Mumbai.

State-owned fuel retailers Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) had on Wednesday resumed daily price revision after nearly a month-long hiatus.

Price had been raised by 26 paise per litre for petrol and 25 paise on diesel on Wednesday.

The previous highest ever rate of Rs 84 a litre for petrol in Delhi was touched on October 4, 2018.

On that day, diesel too had scaled to an all-time high of Rs 75.45 a litre.

The government had responded to that situation by cutting excise duty on petrol and diesel by Rs 1.50 per litre in a bid to ease inflationary pressure and boost consumer confidence.

Alongside, state-owned fuel retailers cut prices by another Re 1 a litre, which they recouped later.

However, no tax cut is under consideration as of present, a senior government official had said on Wednesday.

Though petrol and diesel rates are to be revised on a daily basis in line with benchmark international price and foreign exchange, government-controlled fuel retailers have been moderating rates since the pandemic broke out.

They first did not pass on to the customers a reduction in price warranted from the slump in international oil rates witnessed due to demand erosion beginning March 2020.

While they promptly passed on an increase in sales tax by state governments such as the one in Delhi, they adjusted a steep increase in excise duty by the central government against the reduction in retail price warranted.

The government raised excise duty by Rs 13 per litre on petrol and by Rs 15 a litre on diesel in two instalments in March 2020 and May 2020 to garner additional revenue of Rs 1.6 lakh crore.

That adjustment of rate revision against excise duty hike resulted in a 52-day status quo in prices between March 17, 2020, and June 6, 2020.

This was followed by no change in rates between June 30, 2020, and August 15, 2020, and 58-day hiatus in petrol price revision and 48-day status quo on diesel rates from September 22, 2020, and October 2, 2020, respectively.

Rates were again frozen after the last revision on December 7, 2020.

Since May 2020, petrol price has risen by Rs 14.54 per litre and diesel by Rs 12.09 a litre, price notifications of oil companies showed. The highest level for petrol in Mumbai was on October 4, 2018 when it was Rs 91.34.

(With inputs from agencies)

Petrol prices in India have touched an all-time high level, with a litre of the transportation fuel selling at ₹84.20 in Delhi on Thursday. The increase in fuel prices comes after a jump in oil prices in the international market, where brent crude is currently trading at close to $55 a barrel, a $ 5 increase in just around a weeks’ time.

Petrol prices in India have touched an all-time high level, with a litre of the transportation fuel selling at ₹84.20 in Delhi on Thursday. The increase in fuel prices comes after a jump in oil prices in the international market, where brent crude is currently trading at close to $55 a barrel, a $ 5 increase in just around a weeks’ time. While the rising petrol prices have been burning a hole in Indian consumers’ pocket, common man is now worried about the rising fuel prices with concerns that petrol prices might touch Rs 100 per litre making things worse for them. In Delhi, petrol now costs Rs 84.20 per litre and diesel is priced at Rs 74.38. In Mumbai, petrol comes for Rs 90.83 a litre and diesel for Rs 81.07. This is the highest ever price of petrol in Delhi, while diesel is at record high in Mumbai. State-owned fuel retailers Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) had on Wednesday resumed daily price revision after nearly a month-long hiatus. Price had been raised by 26 paise per litre for petrol and 25 paise on diesel on Wednesday. The previous highest ever rate of Rs 84 a litre for petrol in Delhi was touched on October 4, 2018. On that day, diesel too had scaled to an all-time high of Rs 75.45 a litre. The government had responded to that situation by cutting excise duty on petrol and diesel by Rs 1.50 per litre in a bid to ease inflationary pressure and boost consumer confidence. Alongside, state-owned fuel retailers cut prices by another Re 1 a litre, which they recouped later. However, no tax cut is under consideration as of present, a senior government official had said on Wednesday. Though petrol and diesel rates are to be revised on a daily basis in line with benchmark international price and foreign exchange, government-controlled fuel retailers have been moderating rates since the pandemic broke out. They first did not pass on to the customers a reduction in price warranted from the slump in international oil rates witnessed due to demand erosion beginning March 2020. While they promptly passed on an increase in sales tax by state governments such as the one in Delhi, they adjusted a steep increase in excise duty by the central government against the reduction in retail price warranted. The government raised excise duty by Rs 13 per litre on petrol and by Rs 15 a litre on diesel in two instalments in March 2020 and May 2020 to garner additional revenue of Rs 1.6 lakh crore. That adjustment of rate revision against excise duty hike resulted in a 52-day status quo in prices between March 17, 2020, and June 6, 2020. This was followed by no change in rates between June 30, 2020, and August 15, 2020, and 58-day hiatus in petrol price revision and 48-day status quo on diesel rates from September 22, 2020, and October 2, 2020, respectively. Rates were again frozen after the last revision on December 7, 2020. Since May 2020, petrol price has risen by Rs 14.54 per litre and diesel by Rs 12.09 a litre, price notifications of oil companies showed. The highest level for petrol in Mumbai was on October 4, 2018 when it was Rs 91.34. (With inputs from agencies)

Petrol price at all-time high; citizens worry whether it will reach ₹ 100/litre

Saudi Arabia is facing turbulent times. Oil revenues have declined. Oil tankers have been attacked. And now, another royal purge is underway. WION's Palki tells you more about Saudi Arabia's growing challenges.

Gravitas: Turbulent times in Saudi Arabia: Shrinking Budget, Terror Attacks, Royal Purges

Crude oil processed by&nbsp;Indian refiners hit the highest in six months in September, in another sign that demand for fuel is recovering from the blow to economic activity and transportation from coronavirus restrictions.

Crude oil throughput in September rose 13.4 per cent&nbsp;from the previous month to 4.33 million barrels per day (17.71 million tonnes).

This was the highest since the onset of the country's coronavirus restrictions in March when refiners processed 5.01 million bpd of crude oil.

Fuel demand also rose for the first time since June last month, data showed earlier.

October gasoil sales rose for the first time since March, preliminary data showed, signalling a pick-up in industrial activity ahead of key festivals.

"There have been some promising signs of recovery in&nbsp;India, which in recent years has been the second demand engine after China," said UBS analyst Giovanni Staunovo.

"Despite the rising number of COVID-19 cases in the country, the removal of mobility restrictions has supported oil demand."

India&nbsp;has reported a downward trend in coronavirus infections since hitting a single-day high of 97,894 new cases on Sept. 17, although it still remains the world's second worst-affected country.

Having posted its biggest drop since at least 2003 in April, crude processing has recovered about 20 per cent in September, although it still remains 8.7 per cent lower compared to the same month a year ago, government data showed on Friday.

Indian refiners operated at about 86.22&nbsp;per cent&nbsp;of their overall capacity in September compared to 76.10&nbsp;per cent&nbsp;in August, data showed. This was the highest refinery utilization rate since March.

Indian refiners operated at about 86&nbsp;per cent&nbsp;of their overall capacity in September, the most since March.

Top refiner&nbsp;Indian Oil Corp (IOC) operated its directly owned plants at 81% capacity, the data showed.

Reliance, owner of the world's biggest refining complex, operated its plants at 89.37&nbsp;per cent&nbsp;capacity.

Crude oil production fell by 6&nbsp;per cent&nbsp;from a year earlier to 2.49 million tonnes (608,000 bpd), the monthly report showed.

Crude oil processed by Indian refiners hit the highest in six months in September, in another sign that demand for fuel is recovering from the blow to economic activity and transportation from coronavirus restrictions.

Crude oil processed by Indian refiners hit the highest in six months in September, in another sign that demand for fuel is recovering from the blow to economic activity and transportation from coronavirus restrictions. Crude oil throughput in September rose 13.4 per cent from the previous month to 4.33 million barrels per day (17.71 million tonnes). This was the highest since the onset of the country's coronavirus restrictions in March when refiners processed 5.01 million bpd of crude oil. Fuel demand also rose for the first time since June last month, data showed earlier. October gasoil sales rose for the first time since March, preliminary data showed, signalling a pick-up in industrial activity ahead of key festivals. "There have been some promising signs of recovery in India, which in recent years has been the second demand engine after China," said UBS analyst Giovanni Staunovo. "Despite the rising number of COVID-19 cases in the country, the removal of mobility restrictions has supported oil demand." India has reported a downward trend in coronavirus infections since hitting a single-day high of 97,894 new cases on Sept. 17, although it still remains the world's second worst-affected country. Having posted its biggest drop since at least 2003 in April, crude processing has recovered about 20 per cent in September, although it still remains 8.7 per cent lower compared to the same month a year ago, government data showed on Friday. Indian refiners operated at about 86.22 per cent of their overall capacity in September compared to 76.10 per cent in August, data showed. This was the highest refinery utilization rate since March. Indian refiners operated at about 86 per cent of their overall capacity in September, the most since March. Top refiner Indian Oil Corp (IOC) operated its directly owned plants at 81% capacity, the data showed. Reliance, owner of the world's biggest refining complex, operated its plants at 89.37 per cent capacity. Crude oil production fell by 6 per cent from a year earlier to 2.49 million tonnes (608,000 bpd), the monthly report showed.

India's refinery processing limps to six-month peak

After the death of Jamal Khashoggi, Saudi Arabia allegedly spent a little more than $18 million on lobbying Washington. Oil revenues have helped Riyadh win influence around the world.

Gravitas: How Oil Money Helps Saudi Arabia 'buy' influence

The pandemic has pushed the oil industry to the brink of collapse. Oil rigs are being shutdown. Big oil giants are now seriously mulling a shift to clean energy. WION's Palki brings you a report on why oil is no longer the liquid gold.

Gravitas: Oil No Longer The Liquid Gold

Brent crude ended the session up 74 cents, or 1.7%, at $45.17 a barrel, while West Texas Intermediate oil settled 49 cents, or 1.2% higher, at $42.19 a barrel.

Oil prices hit 5-month high as U.S crude stocks fall

India plans to store its crude oil in US strategic petroleum reserves for use not just during emergencies but also for trading to capture any price advantage, officials said.

Also read:&nbsp;<a href="https://www.wionews.com/india-news/biden-as-us-president-would-help-india-get-seat-on-unsc-former-american-diplomat-314422" hreflang="en">Biden as US president would help India get seat on UNSC: Former American diplomat</a>

India and the US on July 17 signed a preliminary agreement for cooperating on emergency crude oil reserves, including the possibility of India storing oil in the US emergency stockpile.

"It is a good concept but comes with a lot of riders," a senior government official said.

Also read:&nbsp;<a href="https://www.wionews.com/india-news/trump-considering-indian-american-lawyer-to-head-asia-bureau-of-usaid-314408" hreflang="en">Trump considering Indian-American lawyer to head Asia Bureau of USAID</a>

For one, India will have to pay a rental for hiring the storages in the US. This rental will be on top of the international price for oil.

"The alternative is to build our own strategic reserves which will involve huge capital cost and will take a few years to construct. So the rental is a small fee to pay to get immediate access to a strategic reserve," the official said.

Strategic petroleum reserves (SPR) in the US are built and maintained by private companies.

The oil stored in the US reserves can be used for the nation's own needs or can be traded to capture price advantage, he said adding these two scenarios work when oil prices rise after India has bought and stored oil in US reserves.

"But if the prices fall, you will book losses," he said.

Also, if the sea route is obstructed, having a stockpile in the US will make no difference to India's energy security as the country will not be able to access them, he said. "It takes a month to ship oil from the US."

Storing oil in the US is a kind of physical hedging and all hedging comes with a cost, he said.

More importantly, storing large volumes involves paying upfront on purchase of crude oil and companies will have to block so much capital.

India had begun exploring the possibility of storing oil in the US a few months back but couldn't make much headway as COVID-19 pummelled demand, leading to excess oil around the globe that filled every inch of storage including those on ships.

Demand is returned but is less than pre-Covid levels.

In such a scenario, storing oil in the US would make a lot of sense if India were to hire a strategic facility maintained by an American oil producer.

"The commercial deal can be structured in such a way that we support the US firm to keep producing even when demand falls, and in return get access to its storage," the official said.

On July 17, India and US signed a memorandum of understanding (MoU) that will allow the US to begin sharing with India the knowhow on establishment of a strategic petroleum reserve (SPR). The pact also allows India to explore the possibility of storing its oil in US SPR, comprising underground caverns in Texas and Louisiana.

US President Donald Trump in March ordered filling the SPR to its full capacity of about 714 million barrels but Congress failed to fund a purchase. 
Speaking to reporters after signing of the MoU, US Energy Secretary Dan Brouillette had stated that the India pact could mirror a recent plan with

Australia, which in April committed to spending about USD 60 million to build an emergency oil stockpile, first by buying crude to store in the US SPR.

Global oil prices fell steeply earlier this year as shutdowns from the novel coronavirus sapped demand, but have stabilised at around USD 43 a barrel.

"We are in an advanced stage of discussions for storing crude oil US strategic petroleum reserves to increase India's strategic oil stockpile," Oil Minister Dharmendra Pradhan had said on Friday after co-chairing the second India-US Strategic Energy Partnership Ministerial with Brouillette.

The US has 714 million barrels of oil storage capacity in its strategic petroleum reserve, the world's largest supply of emergency crude oil.

In comparison, India stores 5.33 million tonnes (about 38 million barrels) of crude oil in underground storages at three locations on the east and west coast, hardly enough to meet its 9.5 days needs.

The International Energy Agency (IEA) prescribes its members to have at least 90 days of stock in the strategic reserves.

India has been looking to expand the storage capacity by another 6.5 million tonnes and is also exploring the possibility of hiring storage in the US to stock some oil that can be used in times of extreme price volatility or supply disruption.

India is the fourth-largest export destination for US crude.

"Between 2017 and last year, US crude oil exports to India rose by nearly 10-folds to almost 2,50,000 barrels per day. Between March 2016 and May of this year, 68 LNG shipments of over 234 billion cubic feet were exported to India," Brouillette had said on Friday.

The US is India's sixth-largest oil supplier.

India began importing crude oil from the US in 2017 as it looked to diversify its import basket beyond the OPEC nations. It bought 1.9 million tonnes (38,000 bpd) of crude oil from the US in 2017-18 and another 6.2 million tonnes (1,24,000 bpd) in 2018-19.

The volume that Brouillette talked about translates into 12.5 million tonnes of oil imports in a year.

India, which is 85 per cent dependent on imports to meet its oil needs, bought 101.4 million tonnes of crude oil from overseas during April 2019 to March 2020.

India plans to store its crude oil in US strategic petroleum reserves for use not just during emergencies but also for trading to capture any price advantage, officials said.

India plans to store its crude oil in US strategic petroleum reserves for use not just during emergencies but also for trading to capture any price advantage, officials said. Also read: Biden as US president would help India get seat on UNSC: Former American diplomat India and the US on July 17 signed a preliminary agreement for cooperating on emergency crude oil reserves, including the possibility of India storing oil in the US emergency stockpile. "It is a good concept but comes with a lot of riders," a senior government official said. Also read: Trump considering Indian-American lawyer to head Asia Bureau of USAID For one, India will have to pay a rental for hiring the storages in the US. This rental will be on top of the international price for oil. "The alternative is to build our own strategic reserves which will involve huge capital cost and will take a few years to construct. So the rental is a small fee to pay to get immediate access to a strategic reserve," the official said. Strategic petroleum reserves (SPR) in the US are built and maintained by private companies. The oil stored in the US reserves can be used for the nation's own needs or can be traded to capture price advantage, he said adding these two scenarios work when oil prices rise after India has bought and stored oil in US reserves. "But if the prices fall, you will book losses," he said. Also, if the sea route is obstructed, having a stockpile in the US will make no difference to India's energy security as the country will not be able to access them, he said. "It takes a month to ship oil from the US." Storing oil in the US is a kind of physical hedging and all hedging comes with a cost, he said. More importantly, storing large volumes involves paying upfront on purchase of crude oil and companies will have to block so much capital. India had begun exploring the possibility of storing oil in the US a few months back but couldn't make much headway as COVID-19 pummelled demand, leading to excess oil around the globe that filled every inch of storage including those on ships. Demand is returned but is less than pre-Covid levels. In such a scenario, storing oil in the US would make a lot of sense if India were to hire a strategic facility maintained by an American oil producer. "The commercial deal can be structured in such a way that we support the US firm to keep producing even when demand falls, and in return get access to its storage," the official said. On July 17, India and US signed a memorandum of understanding (MoU) that will allow the US to begin sharing with India the knowhow on establishment of a strategic petroleum reserve (SPR). The pact also allows India to explore the possibility of storing its oil in US SPR, comprising underground caverns in Texas and Louisiana. US President Donald Trump in March ordered filling the SPR to its full capacity of about 714 million barrels but Congress failed to fund a purchase. Speaking to reporters after signing of the MoU, US Energy Secretary Dan Brouillette had stated that the India pact could mirror a recent plan with Australia, which in April committed to spending about USD 60 million to build an emergency oil stockpile, first by buying crude to store in the US SPR. Global oil prices fell steeply earlier this year as shutdowns from the novel coronavirus sapped demand, but have stabilised at around USD 43 a barrel. "We are in an advanced stage of discussions for storing crude oil US strategic petroleum reserves to increase India's strategic oil stockpile," Oil Minister Dharmendra Pradhan had said on Friday after co-chairing the second India-US Strategic Energy Partnership Ministerial with Brouillette. The US has 714 million barrels of oil storage capacity in its strategic petroleum reserve, the world's largest supply of emergency crude oil. In comparison, India stores 5.33 million tonnes (about 38 million barrels) of crude oil in underground storages at three locations on the east and west coast, hardly enough to meet its 9.5 days needs. The International Energy Agency (IEA) prescribes its members to have at least 90 days of stock in the strategic reserves. India has been looking to expand the storage capacity by another 6.5 million tonnes and is also exploring the possibility of hiring storage in the US to stock some oil that can be used in times of extreme price volatility or supply disruption. India is the fourth-largest export destination for US crude. "Between 2017 and last year, US crude oil exports to India rose by nearly 10-folds to almost 2,50,000 barrels per day. Between March 2016 and May of this year, 68 LNG shipments of over 234 billion cubic feet were exported to India," Brouillette had said on Friday. The US is India's sixth-largest oil supplier. India began importing crude oil from the US in 2017 as it looked to diversify its import basket beyond the OPEC nations. It bought 1.9 million tonnes (38,000 bpd) of crude oil from the US in 2017-18 and another 6.2 million tonnes (1,24,000 bpd) in 2018-19. The volume that Brouillette talked about translates into 12.5 million tonnes of oil imports in a year. India, which is 85 per cent dependent on imports to meet its oil needs, bought 101.4 million tonnes of crude oil from overseas during April 2019 to March 2020.

India to store its crude oil in US' strategic petroleum reserves

Diesel price has surpassed the price of petrol for the second day in a row as fuel rate hiked for the 19th day on Thursday.

Diesel price crosses ₹80 mark in Delhi, petrol at ₹79.92

India's crude oil imports in May fell 22.6% from a year earlier, it's biggest drop since at least 2005, as fuel demand and refinery production was hurt by a country-wide lockdown to curb the spread of coronavirus.

India's crude oil imports in May fell 22.6% from a year earlier, it's biggest drop since at least 2005, as fuel demand and refinery production was hurt by a country-wide lockdown to curb the spread of coronavirus. Crude oil imports fell to 14.61 million tonnes, it's lowest since 2015, Petroleum Planning and Analysis Cell data showed on Friday. Oil products imports eased 0.8% to 3.57 million tonnes year-on-year, while exports rose by 5.9% to 5.75 million tonnes, gaining for a ninth straight month in May as slowing demand at home prompted companies to ship more oil overseas. The country has relaxed coronavirus-led restrictions in lower risk areas, which is expected to improve demand and scale up crude processing. The latest data bolstered those expectations with India's fuel demand jumping nearly 50% in May from the previous month, signalling a slow revival of economic activity. However, industry analysts expect a full-scale recovery to pre-COVID-19 consumption levels in India to be months away as the monsoon season approaches while manufacturing activities remain low and transportation demand takes a hit in some parts of the country. Diesel exports, which continued to account for a major share of exports, increased by nearly 33% to 2.79 million tonnes. India revised down its crude oil imports figure for April to 16.55 million tonnes- a decline of 16% year-on-year, from 17.28 million tonnes reported earlier, the data showed.

India's May crude oil imports post biggest decline since at least 2005

Oil prices fell significantly on Monday with the US benchmark down nearly 25 per cent amid fears over a growing scarcity of oil storage space.

The West Texas Intermediate for June delivery shed 4.16 U.S. dollars, or 24.56 per cent, to settle at 12.78 dollars a barrel on the New York Mercantile Exchange. The prices traded as low as 11.88 dollars earlier in the session.

Brent crude for June delivery dropped 1.45 dollars, or 6.76 per cent, to close at 19.99 dollars a barrel on the London ICE Futures Exchange.

Risks on the demand side amid the COVID-19 pandemic fallout have reignited fears over availability of storage capacities, experts noted.

Monday's heavy losses followed extreme volatility on the oil markets in the prior week.

Despite a period of stabilization they have been enjoying since mid-last week, US oil prices posted a record weekly loss of 32.3 per cent based on the June contract. It is the biggest weekly percentage loss on record, according to Dow Jones Market Data. June Brent declined 23.6 per cent for the week ending Friday.

Oil prices fell significantly on Monday with the US benchmark down nearly 25 per cent amid fears over a growing scarcity of oil storage space. The West Texas Intermediate for June delivery shed 4.

Oil prices fell significantly on Monday with the US benchmark down nearly 25 per cent amid fears over a growing scarcity of oil storage space. The West Texas Intermediate for June delivery shed 4.16 U.S. dollars, or 24.56 per cent, to settle at 12.78 dollars a barrel on the New York Mercantile Exchange. The prices traded as low as 11.88 dollars earlier in the session. Brent crude for June delivery dropped 1.45 dollars, or 6.76 per cent, to close at 19.99 dollars a barrel on the London ICE Futures Exchange. Risks on the demand side amid the COVID-19 pandemic fallout have reignited fears over availability of storage capacities, experts noted. Monday's heavy losses followed extreme volatility on the oil markets in the prior week. Despite a period of stabilization they have been enjoying since mid-last week, US oil prices posted a record weekly loss of 32.3 per cent based on the June contract. It is the biggest weekly percentage loss on record, according to Dow Jones Market Data. June Brent declined 23.6 per cent for the week ending Friday.

US oil futures plunge nearly 25% amid fears of filled storage

Brent crude oil rebounded from 2-days of losses. Oil trading has been more volatile than ever in recent days. Watch report.

US oil jumps 20% in wild trade: Revound from 20-yr low levels

Brent crude oil plunged more than 12 per cent to below USD 17 a barrel on Wednesday even as the United States erased early gains and fell.

In another day of volatile trading, US benchmark WTI surged in early Asian deals while Brent also edged up on news that top producers had held talks -- only for prices to suddenly change course.

Consequently, Brent dropped 12.31 per cent to $16.98 a barrel, extending heavy losses from a day earlier. WTI for June delivery, which had rebounded about 20 per cent at the open, was down around 5 per cent at $11 a barrel in the afternoon.

Prices have plunged as lockdowns and travel restrictions introduced worldwide to stem the spread of the virus hammer demand.

On Monday, WTI for May delivery collapsed to an unprecedented low of minus $40.32 as traders scrambled to sell it before the contract expired Tuesday, but could find few buyers with storage capacity fast filling up.

Analysts said the morning bounce was driven by news that members of exporting group OPEC, as well as some allies in the OPEC+ grouping, held a teleconference Tuesday -- but grim reality soon returned to the markets.

US crude has been particularly hard-hit because of storage problems, as WTI is delivered at a single, inland point, although the sell-off has now spread to Brent.

The crisis was worsened by a price war between Saudi Arabia and Russia.

<a href="https://www.wionews.com/business-economy/us-oil-prices-surge-after-massive-fall-293935">Also read | US oil prices surge after massive fall</a>

Brent crude oil plunged more than 12 per cent to below USD 17 a barrel on Wednesday even as the United States erased early gains and fell. In another day of volatile trading, US benchmark WTI surged in early Asian deals while Brent also edged up on news that top producers had held talks -- only for prices to suddenly change course.

Brent crude oil plunged more than 12 per cent to below USD 17 a barrel on Wednesday even as the United States erased early gains and fell. In another day of volatile trading, US benchmark WTI surged in early Asian deals while Brent also edged up on news that top producers had held talks -- only for prices to suddenly change course. Consequently, Brent dropped 12.31 per cent to $16.98 a barrel, extending heavy losses from a day earlier. WTI for June delivery, which had rebounded about 20 per cent at the open, was down around 5 per cent at $11 a barrel in the afternoon. Prices have plunged as lockdowns and travel restrictions introduced worldwide to stem the spread of the virus hammer demand. On Monday, WTI for May delivery collapsed to an unprecedented low of minus $40.32 as traders scrambled to sell it before the contract expired Tuesday, but could find few buyers with storage capacity fast filling up. Analysts said the morning bounce was driven by news that members of exporting group OPEC, as well as some allies in the OPEC+ grouping, held a teleconference Tuesday -- but grim reality soon returned to the markets. US crude has been particularly hard-hit because of storage problems, as WTI is delivered at a single, inland point, although the sell-off has now spread to Brent. The crisis was worsened by a price war between Saudi Arabia and Russia. Also read | US oil prices surge after massive fall

Oil plunges again as US erases early gains

US oil prices jumped on Wednesday after falling below zero for the first time at the start of the week due to a coronavirus-triggered collapse in demand.

US benchmark West Texas Intermediate for June delivery was up almost 10 per cent at $12.68 a barrel, paring gains of around 20 per cent at the open in Asia.

The market has been under heavy pressure due to massive oversupply as lockdowns and travel restrictions introduced worldwide to stem the spread of the coronavirus hammer demand. US crude has been particularly hard-hit due to storage problems, as WTI is delivered at a single, inland point.

<a href="https://www.wionews.com/world/crude-oil-demand-falls-but-memes-hit-a-high-293750">Also read |&nbsp;Crude oil demand falls. But memes hit a high!</a>

WTI for May delivery on Monday collapsed to an unprecedented low of minus $40.32 as traders scrambled to sell it before the contract expired Tuesday, but could find few buyers with storage capacity fast filling up.

European benchmark Brent crude for June delivery bounced more than 2 per cent at the open, but then reversed gains and was trading around 3 per cent lower, with a barrel changing hands for $18.73.

It had tumbled to an 18-year low the previous day.&nbsp;

The oil crisis was worsened by a price war between Saudi Arabia and Russia. They drew a line under the dispute earlier this month and, along with other top producers, agreed to slash output by almost 10 million barrels a day to shore up coronavirus-hit markets.

<a href="https://www.wionews.com/business-economy/stock-markets-tumble-on-oil-market-crash-sensex-down-1000-points-293755">Also read |&nbsp;Stock markets tumble on oil market crash, Sensex down 1000 points</a>

US oil prices jumped on Wednesday after falling below zero for the first time at the start of the week due to a coronavirus-triggered collapse in demand. US benchmark West Texas Intermediate for June delivery was up almost 10 per cent at $12.

US oil prices jumped on Wednesday after falling below zero for the first time at the start of the week due to a coronavirus-triggered collapse in demand. US benchmark West Texas Intermediate for June delivery was up almost 10 per cent at $12.68 a barrel, paring gains of around 20 per cent at the open in Asia. The market has been under heavy pressure due to massive oversupply as lockdowns and travel restrictions introduced worldwide to stem the spread of the coronavirus hammer demand. US crude has been particularly hard-hit due to storage problems, as WTI is delivered at a single, inland point. Also read | Crude oil demand falls. But memes hit a high! WTI for May delivery on Monday collapsed to an unprecedented low of minus $40.32 as traders scrambled to sell it before the contract expired Tuesday, but could find few buyers with storage capacity fast filling up. European benchmark Brent crude for June delivery bounced more than 2 per cent at the open, but then reversed gains and was trading around 3 per cent lower, with a barrel changing hands for $18.73. It had tumbled to an 18-year low the previous day. The oil crisis was worsened by a price war between Saudi Arabia and Russia. They drew a line under the dispute earlier this month and, along with other top producers, agreed to slash output by almost 10 million barrels a day to shore up coronavirus-hit markets. Also read | Stock markets tumble on oil market crash, Sensex down 1000 points

US oil prices surge after massive fall

The price of a barrel of benchmark US&nbsp;oil plunged below $0 a barrel on Monday for the first time in history, a troubling sign of an unprecedented global energy glut as the coronavirus pandemic halts travel and curbs economic activity.

Such a steep drop in the oil benchmark prompted strong reactions beyond trading floors.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/amid-coronavirus-pandemic-us-benchmark-wti-oil-collapses-to-001-a-barrel-293678" hreflang="en">Amid coronavirus pandemic, US benchmark WTI oil collapses to $0.01 a barrel</a>

Here is an explanation of what negative&nbsp;crude&nbsp;prices mean in the real world:

WHAT&nbsp;DOES A NEGATIVE FUTURES PRICE MEAN?

The price of a barrel of&nbsp;crude&nbsp;varies based on factors such as supply, demand and quality. Supply of fuel has been far above demand since the coronavirus forced billions of people to stop traveling.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/oil-prices-tumble-to-11-amid-oversupply-fall-in-demand-due-to-coronavirus-293611" hreflang="en">Oil prices tumble to $11 amid oversupply, fall in demand due to coronavirus</a>

Because of oversupply, storage tanks for WTI are becoming so full it is difficult to find space. The US&nbsp;Energy Information Administration said last week that storage at Cushing, Oklahoma, the heart of the US&nbsp;pipeline network, was about 72 per cent&nbsp;full as of April 10.

"There's no available storage anymore so the price of the commodity is effectively worthless," said Bob Yawger, director of futures at Mizuho in New York. "So when it's minus a dollar, they'll pay you a dollar to get it out of there."

The price plunge was partly due to the way oil is traded. A futures contract is for 1,000 barrels of&nbsp;crude, delivered into Cushing, where energy companies own storage tanks with roughly 76 million barrels of capacity.

Each contract trades for a month, with the May contract due to expire on Tuesday. Investors holding May contracts didn't want to take delivery of the oil and incur storage costs, and in the end had to pay people to take it off their hands.

The June contract, with delivery a month away, is still trading at above $20 a barrel, but the price crash indicates that most storage space has been gobbled up.

WHAT DOES THIS MEAN FOR CONSUMERS?

The crash in&nbsp;crude&nbsp;futures prices at Cushing won't necessarily translate into a crash in prices at the gas pump, said Tom Kloza, a veteran analyst with Oil Price Information Services.

"I think it's more inside baseball," Kloza said. "We'll continue to see gasoline prices, diesel prices and jet fuel prices drift lower into May but one shouldn't conclude that we're going to see fuel given away or that we're going to match these incredible, unprecedented drops we saw in&nbsp;crude&nbsp;oil today," Kloza said.

With recent lower oil prices, the typical American family is probably going to save about $150 to $175 this month on their fuel purchases, he said.

WHAT DOES IT MEAN FOR AIRLINES?

For cash-strapped airlines, the decline in&nbsp;crude&nbsp;prices will make it cheaper to operate flights that are already nearly empty as people remain homebound due to the coronavirus.

The plunge in&nbsp;crude&nbsp;futures also indicates that the market does not expect airlines to add back many flights to their slimmed down networks any time soon, said Raymond James analyst Savanthi Syth.

WHAT DOES IT SAY ABOUT THE ECONOMIC REBOUND?

While investors and analysts wade through the technicalities of the oil markets that contributed to the crash, others are trying to glean what it might say about the economy. As much as 30 million barrels per day - what used to be 30 per cent&nbsp;of global demand - has been pumped into storage worldwide in the past two or three months.

Even if demand were to return to pre-virus levels, it would take a long time to burn off all that stored&nbsp;crude.

"What the energy market is telling you is that demand isn't coming back any time soon, and there's a supply glut," says Kevin Flanagan, head of fixed income strategy for Wisdomtree Asset Management, in New York.

The price of June&nbsp;crude&nbsp;contracts also dropped sharply on Monday, falling by 18.4 per cent&nbsp;to $20.43 a barrel. That's a more reliable view of how traders are thinking about consumer demand for energy in the immediate future. It isn't below zero, but it is falling rapidly.

The price of a barrel of benchmark US oil plunged below $0 a barrel on Monday for the first time in history, a troubling sign of an unprecedented global energy glut as the coronavirus pandemic halts travel and curbs economic activity.

The price of a barrel of benchmark US oil plunged below $0 a barrel on Monday for the first time in history, a troubling sign of an unprecedented global energy glut as the coronavirus pandemic halts travel and curbs economic activity. Such a steep drop in the oil benchmark prompted strong reactions beyond trading floors. Also read: Amid coronavirus pandemic, US benchmark WTI oil collapses to $0.01 a barrel Here is an explanation of what negative crude prices mean in the real world: WHAT DOES A NEGATIVE FUTURES PRICE MEAN? The price of a barrel of crude varies based on factors such as supply, demand and quality. Supply of fuel has been far above demand since the coronavirus forced billions of people to stop traveling. Also read: Oil prices tumble to $11 amid oversupply, fall in demand due to coronavirus Because of oversupply, storage tanks for WTI are becoming so full it is difficult to find space. The US Energy Information Administration said last week that storage at Cushing, Oklahoma, the heart of the US pipeline network, was about 72 per cent full as of April 10. "There's no available storage anymore so the price of the commodity is effectively worthless," said Bob Yawger, director of futures at Mizuho in New York. "So when it's minus a dollar, they'll pay you a dollar to get it out of there." The price plunge was partly due to the way oil is traded. A futures contract is for 1,000 barrels of crude, delivered into Cushing, where energy companies own storage tanks with roughly 76 million barrels of capacity. Each contract trades for a month, with the May contract due to expire on Tuesday. Investors holding May contracts didn't want to take delivery of the oil and incur storage costs, and in the end had to pay people to take it off their hands. The June contract, with delivery a month away, is still trading at above $20 a barrel, but the price crash indicates that most storage space has been gobbled up. WHAT DOES THIS MEAN FOR CONSUMERS? The crash in crude futures prices at Cushing won't necessarily translate into a crash in prices at the gas pump, said Tom Kloza, a veteran analyst with Oil Price Information Services. "I think it's more inside baseball," Kloza said. "We'll continue to see gasoline prices, diesel prices and jet fuel prices drift lower into May but one shouldn't conclude that we're going to see fuel given away or that we're going to match these incredible, unprecedented drops we saw in crude oil today," Kloza said. With recent lower oil prices, the typical American family is probably going to save about $150 to $175 this month on their fuel purchases, he said. WHAT DOES IT MEAN FOR AIRLINES? For cash-strapped airlines, the decline in crude prices will make it cheaper to operate flights that are already nearly empty as people remain homebound due to the coronavirus. The plunge in crude futures also indicates that the market does not expect airlines to add back many flights to their slimmed down networks any time soon, said Raymond James analyst Savanthi Syth. WHAT DOES IT SAY ABOUT THE ECONOMIC REBOUND? While investors and analysts wade through the technicalities of the oil markets that contributed to the crash, others are trying to glean what it might say about the economy. As much as 30 million barrels per day - what used to be 30 per cent of global demand - has been pumped into storage worldwide in the past two or three months. Even if demand were to return to pre-virus levels, it would take a long time to burn off all that stored crude. "What the energy market is telling you is that demand isn't coming back any time soon, and there's a supply glut," says Kevin Flanagan, head of fixed income strategy for Wisdomtree Asset Management, in New York. The price of June crude contracts also dropped sharply on Monday, falling by 18.4 per cent to $20.43 a barrel. That's a more reliable view of how traders are thinking about consumer demand for energy in the immediate future. It isn't below zero, but it is falling rapidly.

What is a negative crude future and does it mean anything for consumers?

WION in an exclusive conversation spoke to independent strategist Andrew KP Leung from Hong Kong on major fall in the oil prices. Watch report.

WION exclusive with Independent strategist Andrew KP Leung on oil markets crash

US oil prices fell to an all-time low on Monday -- more than 300 per cent to the lowest price on record.&nbsp;

This comes in the wake of the coronavirus pandemic-induced lockdown restricting movement across the world, and causing the demand for oil dry up.

This also comes in the wake of the superpower that social media is --&nbsp;where every development of national or international importance is celebrated with a little humour.

So, memes hit a high on Twitter even as the demand for crude fell.

Hmmm! A sad reality!

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2020 in summary. <a href="https://twitter.com/hashtag/CoronaVirusSA?src=hash&amp;ref_src=twsrc%5Etfw">#CoronaVirusSA</a><a href="https://twitter.com/hashtag/OilCrash?src=hash&amp;ref_src=twsrc%5Etfw">#OilCrash</a> <a href="https://twitter.com/hashtag/OilPrices?src=hash&amp;ref_src=twsrc%5Etfw">#OilPrices</a> Sasol <a href="https://t.co/C0rhftJq6v">pic.twitter.com/C0rhftJq6v</a>
— Ackloyd (@AW_Chuma) <a href="https://twitter.com/AW_Chuma/status/1252483827605405696?ref_src=twsrc%5Etfw">April 21, 2020</a></blockquote>
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A happy reality?

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So now my bottle is more expensive than the low class crude oil of Arabs. <a href="https://twitter.com/hashtag/OilCrash?src=hash&amp;ref_src=twsrc%5Etfw">#OilCrash</a> <a href="https://twitter.com/hashtag/OilPrices?src=hash&amp;ref_src=twsrc%5Etfw">#OilPrices</a> <a href="https://t.co/kmd5Uflcpu">pic.twitter.com/kmd5Uflcpu</a>
— Rocket Scientist (@Rockumon) <a href="https://twitter.com/Rockumon/status/1252449252229304320?ref_src=twsrc%5Etfw">April 21, 2020</a></blockquote>
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Honey, here's the money!

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<a href="https://twitter.com/hashtag/OilPrices?src=hash&amp;ref_src=twsrc%5Etfw">#OilPrices</a> <a href="https://twitter.com/hashtag/OilCrash?src=hash&amp;ref_src=twsrc%5Etfw">#OilCrash</a> 
News: Crude Oil Prices fall below 0.. 
New prices are -37.63$.. 
 
Me to petrol pump attendant after filling my car's petrol tank... <a href="https://t.co/m5UJBhufxM">pic.twitter.com/m5UJBhufxM</a>
— Tweet_Bazz (@itweetbazz) <a href="https://twitter.com/itweetbazz/status/1252482184662802435?ref_src=twsrc%5Etfw">April 21, 2020</a></blockquote>
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Money Heist 2.0?

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*Me and my boys planning to get crude oil and make some money*<a href="https://twitter.com/hashtag/OilCrash?src=hash&amp;ref_src=twsrc%5Etfw">#OilCrash</a> <a href="https://t.co/VfEyAbwMMT">pic.twitter.com/VfEyAbwMMT</a>
— swarnim kumar (@iamswarnim) <a href="https://twitter.com/iamswarnim/status/1252482041737703424?ref_src=twsrc%5Etfw">April 21, 2020</a></blockquote>
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We. Cannot. Even.

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<a href="https://twitter.com/hashtag/OilCrash?src=hash&amp;ref_src=twsrc%5Etfw">#OilCrash</a> <a href="https://twitter.com/hashtag/OilPrices?src=hash&amp;ref_src=twsrc%5Etfw">#OilPrices</a> 
Cost of barrel and cost of crude oil <a href="https://t.co/lT1i6vspxk">pic.twitter.com/lT1i6vspxk</a>
— Himanshu Dixit (@Himansh84873490) <a href="https://twitter.com/Himansh84873490/status/1252467758509555712?ref_src=twsrc%5Etfw">April 21, 2020</a></blockquote>
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Like whaaattttt?

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The barrel is now more expensive than the oil inside. <a href="https://twitter.com/hashtag/OilCrash?src=hash&amp;ref_src=twsrc%5Etfw">#OilCrash</a> <a href="https://t.co/cg4tmCzZ8z">pic.twitter.com/cg4tmCzZ8z</a>
— Naresh (@naresh_jangid98) <a href="https://twitter.com/naresh_jangid98/status/1252455571803893760?ref_src=twsrc%5Etfw">April 21, 2020</a></blockquote>
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Wooohooo!

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I'm not surprised at all 👀😬<a href="https://twitter.com/hashtag/OilCrash?src=hash&amp;ref_src=twsrc%5Etfw">#OilCrash</a><a href="https://twitter.com/hashtag/OilPrice?src=hash&amp;ref_src=twsrc%5Etfw">#OilPrice</a><a href="https://twitter.com/hashtag/CrudeOil?src=hash&amp;ref_src=twsrc%5Etfw">#CrudeOil</a> <a href="https://t.co/NbDbIKT7kV">pic.twitter.com/NbDbIKT7kV</a>
— 𝓓𝓪𝓪𝓵𝓲𝓪 ❤️ (@DaaliaKazaan) <a href="https://twitter.com/DaaliaKazaan/status/1252447769912135680?ref_src=twsrc%5Etfw">April 21, 2020</a></blockquote>
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Whatte fun!

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Netflix subscription is more expensive than a barrel of oil<a href="https://twitter.com/hashtag/OilCrash?src=hash&amp;ref_src=twsrc%5Etfw">#OilCrash</a> <a href="https://t.co/8bE5gqxBqz">pic.twitter.com/8bE5gqxBqz</a>
— Becklish (@becklishoko) <a href="https://twitter.com/becklishoko/status/1252359378696466438?ref_src=twsrc%5Etfw">April 20, 2020</a></blockquote>
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Meanwhile, all is not fun in the world. The price of oil has now reached a point that it is increasingly becoming difficult for higher cost producers to remain in operation and rather look at declaring bankruptcy.&nbsp;

A lot of US shale producers are in deep trouble and analysts expect that low oil price for few more months will result in a spate of bankruptcies in US.

US oil prices fell to an all-time low on Monday -- more than 300 per cent to the lowest price on record. This comes in the wake of the coronavirus pandemic-induced lockdown restricting movement across the world, and causing the demand for oil dry up.

US oil prices fell to an all-time low on Monday -- more than 300 per cent to the lowest price on record. This comes in the wake of the coronavirus pandemic-induced lockdown restricting movement across the world, and causing the demand for oil dry up. This also comes in the wake of the superpower that social media is -- where every development of national or international importance is celebrated with a little humour. So, memes hit a high on Twitter even as the demand for crude fell. Hmmm! A sad reality! 2020 in summary. #CoronaVirusSA#OilCrash #OilPrices Sasol pic.twitter.com/C0rhftJq6v — Ackloyd (@AW_Chuma) April 21, 2020 × A happy reality? So now my bottle is more expensive than the low class crude oil of Arabs. #OilCrash #OilPrices pic.twitter.com/kmd5Uflcpu — Rocket Scientist (@Rockumon) April 21, 2020 × Honey, here's the money! #OilPrices #OilCrash News: Crude Oil Prices fall below 0.. New prices are -37.63$.. Me to petrol pump attendant after filling my car's petrol tank... pic.twitter.com/m5UJBhufxM — Tweet_Bazz (@itweetbazz) April 21, 2020 × Money Heist 2.0? *Me and my boys planning to get crude oil and make some money*#OilCrash pic.twitter.com/VfEyAbwMMT — swarnim kumar (@iamswarnim) April 21, 2020 × We. Cannot. Even. #OilCrash #OilPrices Cost of barrel and cost of crude oil pic.twitter.com/lT1i6vspxk — Himanshu Dixit (@Himansh84873490) April 21, 2020 × Like whaaattttt? The barrel is now more expensive than the oil inside. #OilCrash pic.twitter.com/cg4tmCzZ8z — Naresh (@naresh_jangid98) April 21, 2020 × Wooohooo! I'm not surprised at all 👀😬#OilCrash#OilPrice#CrudeOil pic.twitter.com/NbDbIKT7kV — 𝓓𝓪𝓪𝓵𝓲𝓪 ❤️ (@DaaliaKazaan) April 21, 2020 × Whatte fun! Netflix subscription is more expensive than a barrel of oil#OilCrash pic.twitter.com/8bE5gqxBqz — Becklish (@becklishoko) April 20, 2020 × Meanwhile, all is not fun in the world. The price of oil has now reached a point that it is increasingly becoming difficult for higher cost producers to remain in operation and rather look at declaring bankruptcy. A lot of US shale producers are in deep trouble and analysts expect that low oil price for few more months will result in a spate of bankruptcies in US.

Crude oil demand falls. But memes hit a high!

Winners and losers from oil's historic plunge

Oil prices rallied Monday after top producers agreed to slash output and shore up coronavirus-ravaged energy markets, but some analysts were concerned the cuts did not go far enough.

US benchmark West Texas Intermediate was up 7.7 percent at $24.52 a barrel in Asian trade while Brent crude, the international benchmark, put on 5.0 percent to $33.08 a barrel.&nbsp;

OPEC producers dominated by Saudi Arabia and allies led by Russia met via videoconference for an hour Sunday in a last effort to cement a deal struck early Friday.&nbsp;

It still required Mexico's agreement and in a compromise reached Sunday they agreed to a cut of 9.7 million barrels per day from May, according to its Energy Minister Rocio Nahle, down slightly from 10 million barrels per day envisioned earlier.&nbsp;

OPEC Secretary General Mohammad Barkindo called the cuts "historic".&nbsp;

Oil markets have been in turmoil for weeks as lockdowns and travel restrictions imposed worldwide to combat the virus outbreak strangle demand, with a price war between Russia and Saudi Arabia compounding the crisis.

While Monday's price rises were healthy, they were not as strong as the double-digit jumps and falls of recent weeks in a highly volatile market, and analysts were sceptical the deal went far enough.&nbsp;

The amount being cut was slightly lower than had been expected, and observers said it would not make up for expected demand loss due to the virus outbreak. Some analysts are putting this at about 25 million barrels per day in April.&nbsp;

In addition, storage tanks worldwide are rapidly filling up.&nbsp;

"The deal is a little less than the market expected given that Mexico has gotten off easy," Andy Lipow, president of Lipow Oil Associates LLC in Houston, told Bloomberg News.

"The hard work lies ahead given that the market is very sceptical that OPEC+ are actually going to be able to come up with their near 10 million barrels a day of production cuts."

AxiCorp's Stephen Innes added that "there remain concerns the agreement could be a day late and a 'barrel short' to prevent a decline in prices in the coming weeks as storage capacity brims".&nbsp;

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Oil prices rallied Monday after top producers agreed to slash output and shore up coronavirus-ravaged energy markets, but some analysts were concerned the cuts did not go far enough.

Oil prices rallied Monday after top producers agreed to slash output and shore up coronavirus-ravaged energy markets, but some analysts were concerned the cuts did not go far enough. US benchmark West Texas Intermediate was up 7.7 percent at $24.52 a barrel in Asian trade while Brent crude, the international benchmark, put on 5.0 percent to $33.08 a barrel. OPEC producers dominated by Saudi Arabia and allies led by Russia met via videoconference for an hour Sunday in a last effort to cement a deal struck early Friday. It still required Mexico's agreement and in a compromise reached Sunday they agreed to a cut of 9.7 million barrels per day from May, according to its Energy Minister Rocio Nahle, down slightly from 10 million barrels per day envisioned earlier. OPEC Secretary General Mohammad Barkindo called the cuts "historic". Oil markets have been in turmoil for weeks as lockdowns and travel restrictions imposed worldwide to combat the virus outbreak strangle demand, with a price war between Russia and Saudi Arabia compounding the crisis. While Monday's price rises were healthy, they were not as strong as the double-digit jumps and falls of recent weeks in a highly volatile market, and analysts were sceptical the deal went far enough. The amount being cut was slightly lower than had been expected, and observers said it would not make up for expected demand loss due to the virus outbreak. Some analysts are putting this at about 25 million barrels per day in April. In addition, storage tanks worldwide are rapidly filling up. "The deal is a little less than the market expected given that Mexico has gotten off easy," Andy Lipow, president of Lipow Oil Associates LLC in Houston, told Bloomberg News. "The hard work lies ahead given that the market is very sceptical that OPEC+ are actually going to be able to come up with their near 10 million barrels a day of production cuts." AxiCorp's Stephen Innes added that "there remain concerns the agreement could be a day late and a 'barrel short' to prevent a decline in prices in the coming weeks as storage capacity brims".

Oil rallies as top producers agree massive output cuts

US gasoline refining margins have also fallen whopping 95% amid the coronavirus outbreak. The cost of gasoline plunging fast than crude oil indicates that coronavirus will keep off the people off roads. Watch report:

WION Wallet: US gasoline refining margins at lowest since 2009 | Coronavirus Pandemic

Tanker rates to ship oil in very large crude carriers (VLCCs) are surging as oil traders hunt for ships to store cheap oil in as they take advantage of a 25% plunge in prices on Monday amid a price war between top oil producers Saudi Arabia and Russia.

Shipping rates from the Middle East to Asia, for instance, have risen by more than 25% since last Friday, while several traders are making enquiries to lease tankers to temporarily store oil offshore, traders and shipping sources told Reuters on Tuesday.

The cost of renting a VLCC, which can carry 2 million barrels of crude and can be used for floating storage, was assessed Tuesday at around $38,700 per day, compared with around $30,700 per day on Friday and $14,800 a month ago, shipbroker sources said.

Also Read: <a href="https://www.wionews.com/business-economy/oil-prices-surge-after-us-strike-kills-iranian-general-271775">Oil prices surge after US strike kills Iranian general Soleimani</a> 
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"Tanker offers are quite high today," said a Singapore-based crude oil trader. "Now the contango market structure supports (oil storage), but shipowners are raising prices."

Oil tanker charter rates jump as traders hunt for ships to store cheap oil.

The rise in tanker chartering rates is a boon for shipowners who have seen demand walloped recently by the fast-spreading coronavirus outbreak which choked commodity and semi-finished goods imports into top consumer China.

Also Read: <a href="https://www.wionews.com/world/oil-prices-surge-after-trump-tears-up-iran-deal-135734">Oil prices surge after Trump tears up Iran deal</a>

We are seeing several deals being negotiated for short-term (6-12 months) charters, with one already concluded. The fall in oil prices has made floating storage more attractive, although the margins are still relatively thin," energy shipbroker and consultancy Poten &amp; Partners said in a research note.

A Pareto Securities shipping note to clients said: "while actual fixing activity was rather limited yesterday, the 'floating storage' interest has boosted shipowners' sentiment and rate ideas have thus been increased substantially."

Another shipbroker in Singapore said his firm had not secured any fixtures yet "but there a is huge expectation of firming of the spot market. It's the older tonnage that will be more likely to be engaged for floating storage."

Crude oil's forward curve change from backwardation to contango.

Crude oil prices suffered their biggest daily rout since the 1991 Gulf War on Monday as top producers Saudi Arabia and Russia began a price war that threatens to overwhelm global oil markets with supply.

Major milestones for big moves in light crude oil prices.

Also Read: <a href="https://www.wionews.com/videos/venezulea-crisis-crude-oil-prices-surge-195411">Venezulea Crisis: Crude oil prices surge</a>

Several refiners are already looking to maximise imports of Middle Eastern purchase to take advantage of cheap crude after the Saudis slashed their official selling prices (OSPs) for April in an attempt to lure buyers.

"The VLCC rates are climbing up but it's mainly sentiment-driven right now, it's main traders who are enquiring for storage," a Singapore-based ship broker told Reuters.

The Worldscale index rate for shipping crude on a VLCC from the Middle East to North Asia rose to 54 points on Tuesday, from 49 points on Monday, according to trade and shipping sources.

Time charter equivalent rates for a 2,70,000 deadweight tonnes tanker on the Middle East to China route increased by 27 per cent in one day on Monday, said Ralph Leszczynski, head of research at shipbroker Banchero Costa in Singapore.

The flip in the crude oil market's forward curve to a contango where deferred prices are above spot prices has been a key factor spurring demand for storage.

Also Read: <a href="https://www.wionews.com/business-%26-economy/oil-prices-fall-on-dip-in-china-demand-surging-us-output-143077">Oil prices fall on dip in China demand, surging US output</a>

The recent steep fall in spot Brent oil prices has made storing oil for later sale economical.

In the Middle East benchmark Dubai crude oil market, the April, May Dubai inter-month spread widened to 77 cents a barrel as of noon on Tuesday, making oil storage profitable. Brent crude prices are in a similar structure.

In addition to floating storage, countries like China and India could move to exploit the weak prices and increase imports for strategic reserves, boosting tanker demand, said Ralph Leszczynski, head of research at shipbroker Banchero Costa in Singapore.

"China, in particular, was the first to suffer from the coronavirus outbreak, but now also seems to be the first to put it behind them. The situation seems increasingly under control," he said.

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Tanker rates to ship oil in very large crude carriers (VLCCs) are surging as oil traders hunt for ships to store cheap oil in as they take advantage of a 25% plunge in prices on Monday amid a price war between top oil producers Saudi Arabia and Russia.

Tanker rates to ship oil in very large crude carriers (VLCCs) are surging as oil traders hunt for ships to store cheap oil in as they take advantage of a 25% plunge in prices on Monday amid a price war between top oil producers Saudi Arabia and Russia. Shipping rates from the Middle East to Asia, for instance, have risen by more than 25% since last Friday, while several traders are making enquiries to lease tankers to temporarily store oil offshore, traders and shipping sources told Reuters on Tuesday. The cost of renting a VLCC, which can carry 2 million barrels of crude and can be used for floating storage, was assessed Tuesday at around $38,700 per day, compared with around $30,700 per day on Friday and $14,800 a month ago, shipbroker sources said. Also Read: Oil prices surge after US strike kills Iranian general Soleimani "Tanker offers are quite high today," said a Singapore-based crude oil trader. "Now the contango market structure supports (oil storage), but shipowners are raising prices." Oil tanker charter rates jump as traders hunt for ships to store cheap oil. The rise in tanker chartering rates is a boon for shipowners who have seen demand walloped recently by the fast-spreading coronavirus outbreak which choked commodity and semi-finished goods imports into top consumer China. Also Read: Oil prices surge after Trump tears up Iran deal We are seeing several deals being negotiated for short-term (6-12 months) charters, with one already concluded. The fall in oil prices has made floating storage more attractive, although the margins are still relatively thin," energy shipbroker and consultancy Poten & Partners said in a research note. A Pareto Securities shipping note to clients said: "while actual fixing activity was rather limited yesterday, the 'floating storage' interest has boosted shipowners' sentiment and rate ideas have thus been increased substantially." Another shipbroker in Singapore said his firm had not secured any fixtures yet "but there a is huge expectation of firming of the spot market. It's the older tonnage that will be more likely to be engaged for floating storage." Crude oil's forward curve change from backwardation to contango. Crude oil prices suffered their biggest daily rout since the 1991 Gulf War on Monday as top producers Saudi Arabia and Russia began a price war that threatens to overwhelm global oil markets with supply. Major milestones for big moves in light crude oil prices. Also Read: Venezulea Crisis: Crude oil prices surge Several refiners are already looking to maximise imports of Middle Eastern purchase to take advantage of cheap crude after the Saudis slashed their official selling prices (OSPs) for April in an attempt to lure buyers. "The VLCC rates are climbing up but it's mainly sentiment-driven right now, it's main traders who are enquiring for storage," a Singapore-based ship broker told Reuters. The Worldscale index rate for shipping crude on a VLCC from the Middle East to North Asia rose to 54 points on Tuesday, from 49 points on Monday, according to trade and shipping sources. Time charter equivalent rates for a 2,70,000 deadweight tonnes tanker on the Middle East to China route increased by 27 per cent in one day on Monday, said Ralph Leszczynski, head of research at shipbroker Banchero Costa in Singapore. The flip in the crude oil market's forward curve to a contango where deferred prices are above spot prices has been a key factor spurring demand for storage. Also Read: Oil prices fall on dip in China demand, surging US output The recent steep fall in spot Brent oil prices has made storing oil for later sale economical. In the Middle East benchmark Dubai crude oil market, the April, May Dubai inter-month spread widened to 77 cents a barrel as of noon on Tuesday, making oil storage profitable. Brent crude prices are in a similar structure. In addition to floating storage, countries like China and India could move to exploit the weak prices and increase imports for strategic reserves, boosting tanker demand, said Ralph Leszczynski, head of research at shipbroker Banchero Costa in Singapore. "China, in particular, was the first to suffer from the coronavirus outbreak, but now also seems to be the first to put it behind them. The situation seems increasingly under control," he said.

Tanker rates surge as traders hunt for ships to store cheap oil

Saudi Arabia, the world's top oil exporter, plans to raise its crude oil production significantly above 10 million barrels per day in April. After Russia walks out from OPEC deal.

WION Fineprint: Saudi Arabia plans big oil output hike

India wants Qatar to delink the price of its imported gas from that of oil under long-term deals, India's oil minister said on Monday, to make supplies cheaper for price-sensitive customers after a sharp fall in spot prices of the cleaner fuel.

Liquefied natural gas (LNG) sourced from the spot market costs about half of that under the long-term deals.

India in 1999 signed a long-term LNG deal with Qatar for supplies from 2004, with volumes gradually rising to 7.5 million tonnes per annum (mtpa).

The price of gas under the long-duration deal was linked to the price of crude, as oil markets were well developed compared with that of gas.

The deal was, however, renegotiated in 2015 leading to about a 50% cut in prices for India, which agreed to buy an extra 1 million tonnes per annum (mtpa) of the super-cooled gas from Qatar.

"The current formula of benchmarking gas prices with crude oil is not correct," the minister, Dharmendra Pradhan, said after meeting industry officials including Qatar's energy minister, Saad Sherida al-Kaabi, and Indian state-owned oil company officials.

"India believes that there should be independent pricing formula for gas ... We have to find a formula between the current practices and other international prices," Pradhan told reporters.

Kaabi said Qatar would not renegotiate pricing under the existing contracts and was ready to supply more gas to meet India's growing demand for gas.

"We are not renegotiating contracts, we stick with contracts - both sides - and we look for additional new contacts and volumes to comply with requirements from India," Kaabi told reporters.

Prime Minister Narendra Modi has said India needed to increase the share of natural gas in its energy mix to 15% by 2030 from 6.5% now.

Indian officials at the meeting said the negotiations had only started and could go on for some time.

"There is a plenty of gas supplies in the market and India is a big market, where demand for gas will continue to rise," said one gas firm official.

"Our negotiations continued for about a year before they agreed on changing the formula in 2015."

This official said India wanted prices to be brought down to about $5 per million British thermal unit compared with about $8-$8.5 per unit currently sourced under the long-term Qatari deals.

India is a leading buyer of Qatari LNG. Supplies from Qatar under the long-term deals account for about 40% of overall Indian gas imports.

Pradhan said the government and Indian state-owned companies had put forward their views to the visiting Qatar delegation highlighting "availability, accessibility and affordability" of natural gas.

Kaabi, who is also the chief executive of Qatar Petroleum, was accompanied by the chief executive of Qatar Gas, Sheikh Khalid bin Khalifa Al Thani.

Qatar is the world's largest supplier of liquefied natural gas (LNG) and wants to boost its production of LNG to 126 mtpa by 2027.

India wants Qatar to delink the price of its imported gas from that of oil under long-term deals, India's oil minister said on Monday, to make supplies cheaper for price-sensitive customers after a sharp fall in spot prices of the cleaner fuel.

India wants Qatar to delink the price of its imported gas from that of oil under long-term deals, India's oil minister said on Monday, to make supplies cheaper for price-sensitive customers after a sharp fall in spot prices of the cleaner fuel. Liquefied natural gas (LNG) sourced from the spot market costs about half of that under the long-term deals. India in 1999 signed a long-term LNG deal with Qatar for supplies from 2004, with volumes gradually rising to 7.5 million tonnes per annum (mtpa). The price of gas under the long-duration deal was linked to the price of crude, as oil markets were well developed compared with that of gas. The deal was, however, renegotiated in 2015 leading to about a 50% cut in prices for India, which agreed to buy an extra 1 million tonnes per annum (mtpa) of the super-cooled gas from Qatar. "The current formula of benchmarking gas prices with crude oil is not correct," the minister, Dharmendra Pradhan, said after meeting industry officials including Qatar's energy minister, Saad Sherida al-Kaabi, and Indian state-owned oil company officials. "India believes that there should be independent pricing formula for gas ... We have to find a formula between the current practices and other international prices," Pradhan told reporters. Kaabi said Qatar would not renegotiate pricing under the existing contracts and was ready to supply more gas to meet India's growing demand for gas. "We are not renegotiating contracts, we stick with contracts - both sides - and we look for additional new contacts and volumes to comply with requirements from India," Kaabi told reporters. Prime Minister Narendra Modi has said India needed to increase the share of natural gas in its energy mix to 15% by 2030 from 6.5% now. Indian officials at the meeting said the negotiations had only started and could go on for some time. "There is a plenty of gas supplies in the market and India is a big market, where demand for gas will continue to rise," said one gas firm official. "Our negotiations continued for about a year before they agreed on changing the formula in 2015." This official said India wanted prices to be brought down to about $5 per million British thermal unit compared with about $8-$8.5 per unit currently sourced under the long-term Qatari deals. India is a leading buyer of Qatari LNG. Supplies from Qatar under the long-term deals account for about 40% of overall Indian gas imports. Pradhan said the government and Indian state-owned companies had put forward their views to the visiting Qatar delegation highlighting "availability, accessibility and affordability" of natural gas. Kaabi, who is also the chief executive of Qatar Petroleum, was accompanied by the chief executive of Qatar Gas, Sheikh Khalid bin Khalifa Al Thani. Qatar is the world's largest supplier of liquefied natural gas (LNG) and wants to boost its production of LNG to 126 mtpa by 2027.

India wants to delink Qatar gas supply deals from crude

India on Wednesday expressed interest in raising the import of crude oil from<a href="https://www.wionews.com/india-news/with-focus-on-trade-brazillian-president-jair-bolsonaro-to-arrive-in-india-on-friday-275818"> Brazil</a> as the world's third-largest oil consumer is looking at diversifying its import basket beyond the highly volatile Middle East region.

Oil Minister Dharmendra Pradhan met visiting Brazilian Minister for Mines and Energy Bento Albuqueroque to review cooperation between the two countries.

"India is diversifying its crude oil supply and our oil companies have expressed interest in sourcing more crude from Brazil if offered favourable commercial terms," Pradhan tweeted after the meeting.

India imports 84 per cent of its oil needs and two-thirds of its import come from the Middle East with Iraq and Saudi Arabia being the top suppliers.

Pradhan said he also sought intervention for the early monetization of India's existing investments in the Brazilian energy sector.

ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), has two exploration blocks in Brazil - BC-10 and BM Seal-4 and is looking at monetizing discoveries made there.

Pradhan said during the meeting the agreements/MoUs to be signed in bioenergy and oil &amp; gas sector during the Summit level meeting with the visiting Brazilian President were also reviewed.

Separately, the Union Cabinet, chaired by Prime Minister Narendra Modi, has given its approval for the signing of the Memorandum of Understanding (MoU) with Brazil on cooperation in the field of oil and natural gas.

"The MoU will enhance cooperation between the two sides in the oil and natural gas sector. Under the MoU, both sides will work towards establishing cooperation in the exploration and production (E&amp;P) initiatives in Brazil and India, research &amp; development in this sector, explore collaboration in Liquefied Natural Gas projects in Brazil, India and third countries, and also encourage collaboration in oil energy and environmental issues, including energy policies such as energy efficiency, energy research development and expansion of the regional energy infrastructure networks," an official statement said.

The MoU will be signed during the visit of the Brazilian President.

"We further discussed to collaborate our efforts in the field of Biofuels. We are targeting to achieve 20% ethanol blending in petrol &amp; 5% bio-diesel blending capacity by 2030. In this regard expressed India's interest to work with Brazil in the field of Bioenergy," Pradhan tweeted after meeting his Brazilian counterpart.

Also discussed was developing cooperation in technologies, particularly in the areas of mining and pelletization, he added.

India on Wednesday expressed interest in raising the import of crude oil from Brazil as the world's third-largest oil consumer is looking at diversifying its import basket beyond the highly volatile Middle East region.

India on Wednesday expressed interest in raising the import of crude oil from Brazil as the world's third-largest oil consumer is looking at diversifying its import basket beyond the highly volatile Middle East region. Oil Minister Dharmendra Pradhan met visiting Brazilian Minister for Mines and Energy Bento Albuqueroque to review cooperation between the two countries. "India is diversifying its crude oil supply and our oil companies have expressed interest in sourcing more crude from Brazil if offered favourable commercial terms," Pradhan tweeted after the meeting. India imports 84 per cent of its oil needs and two-thirds of its import come from the Middle East with Iraq and Saudi Arabia being the top suppliers. Pradhan said he also sought intervention for the early monetization of India's existing investments in the Brazilian energy sector. ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), has two exploration blocks in Brazil - BC-10 and BM Seal-4 and is looking at monetizing discoveries made there. Pradhan said during the meeting the agreements/MoUs to be signed in bioenergy and oil & gas sector during the Summit level meeting with the visiting Brazilian President were also reviewed. Separately, the Union Cabinet, chaired by Prime Minister Narendra Modi, has given its approval for the signing of the Memorandum of Understanding (MoU) with Brazil on cooperation in the field of oil and natural gas. "The MoU will enhance cooperation between the two sides in the oil and natural gas sector. Under the MoU, both sides will work towards establishing cooperation in the exploration and production (E&P) initiatives in Brazil and India, research & development in this sector, explore collaboration in Liquefied Natural Gas projects in Brazil, India and third countries, and also encourage collaboration in oil energy and environmental issues, including energy policies such as energy efficiency, energy research development and expansion of the regional energy infrastructure networks," an official statement said. The MoU will be signed during the visit of the Brazilian President. "We further discussed to collaborate our efforts in the field of Biofuels. We are targeting to achieve 20% ethanol blending in petrol & 5% bio-diesel blending capacity by 2030. In this regard expressed India's interest to work with Brazil in the field of Bioenergy," Pradhan tweeted after meeting his Brazilian counterpart. Also discussed was developing cooperation in technologies, particularly in the areas of mining and pelletization, he added.

India keen on importing more oil from Brazil: Minister Dharmendra Pradhan

Minister of Petroleum and Natural Gas <a href="https://www.wionews.com/india-news/government-approves-funding-of-774-million-for-northeastern-gas-pipeline-272999">Dharmendra Pradhan</a> on Saturday said that there was no dearth of crude oil in the global market and the government was keeping a sharp eye on the global developments.

Speaking to reporters on the sidelines of an event, Pradhan said, "Due to geopolitical situation, conflict in the <a href="https://www.wionews.com/world/us-iran-tensions-washington-turns-down-iraqi-request-to-remove-troops-273509">Middle East</a> there was a spike in the price of crude oil. It is subdued in the last two weeks. Let us wait and watch, let's not create panic. Things are under control. Government of India (GoI) has kept a sharp eye on global development."

He also appealed to oil-producing countries and their leadership for peace and stability in the global economy.

"There is no dearth of crude oil in the global market. We are taking it from <a href="https://www.wionews.com/business-economy/oil-edges-above-65-as-middle-east-concerns-support-273441">OPEC</a>, OPEC+, non-OPEC countries. The issue is&nbsp;price. We are appealing to oil-producing countries and responsible leaderships that there should be peace and stability in the global economy", he added.

Earlier in the day, Pradhan had launched PURVODAYA: Accelerated development of eastern India through an integrated steel hub in Kolkata.

Minister of Petroleum and Natural Gas Dharmendra Pradhan on Saturday said that there was no dearth of crude oil in the global market and the government was keeping a sharp eye on the global developments.

Minister of Petroleum and Natural Gas Dharmendra Pradhan on Saturday said that there was no dearth of crude oil in the global market and the government was keeping a sharp eye on the global developments. Speaking to reporters on the sidelines of an event, Pradhan said, "Due to geopolitical situation, conflict in the Middle East there was a spike in the price of crude oil. It is subdued in the last two weeks. Let us wait and watch, let's not create panic. Things are under control. Government of India (GoI) has kept a sharp eye on global development." He also appealed to oil-producing countries and their leadership for peace and stability in the global economy. "There is no dearth of crude oil in the global market. We are taking it from OPEC, OPEC+, non-OPEC countries. The issue is price. We are appealing to oil-producing countries and responsible leaderships that there should be peace and stability in the global economy", he added. Earlier in the day, Pradhan had launched PURVODAYA: Accelerated development of eastern India through an integrated steel hub in Kolkata.

No dearth of crude oil in global market: Union Minister Dharmendra Pradhan

A dramatic escalation came in US-Iran tensions after the United States killed<a href="https://www.wionews.com/world/iran-other-free-nations-will-take-revenge-for-soleimanis-killing-from-criminal-america-iran-president-hassan-rouhani-271885"> Qasem Soleimani</a>, the head of the elite Quds Force in a strike at Iraq's Baghdad airport&nbsp;on Friday. An advisor to Soleimani, Muhandis was killed in the strike.

The Soleimani's killing&nbsp;triggered <a href="https://www.wionews.com/world/twitterati-fear-world-war-iii-coming-after-irans-soleimani-killed-in-us-strike-271940">various reactions from across the world</a> and while some Republicans lauded the move other world leaders&nbsp;warned of danger and urged US and Iran&nbsp;for restraint.

So what does this escalation of tensions mean for India?

India heavily depends on crude imports from West Asian nations and the country's&nbsp;slowing economy could be further dented by the spike in crude oil prices owing to the instability.

US-Iran tensions have the potential to heavily and adversely affect stability in the region. The region supplies to a third of the world's oil demand. But while it is not just Iraq, but experts opine that most of the West-Asian nations will either align for or against the United States if the situation does not de-escalate.

According to a report, a 10 dollar rise in crude oil prices will increase India's import bill by 15 billion dollars . a confrontation of this nature has the potential to drag down other such oil-producing countries. &nbsp;

Also, India is one of the world's top recipients of external remittances. Looking at 2017 figures from the reserve bank of India, India received 69 billion US dollars worth remittances.

What can be concerning for India, owing to the escalation of tensions, is that over 50% of the remittances come from countries like Saudi Arabia, United Arab Emirates, Qatar and Oman, countries that could potentially be affected by the developing situation.

Substantial population from Indian states like Kerala, Maharashtra, Karnataka and Tamil Nadu look to West Asian countries for better job opportunities. The tensions could affect the prospects of aspiring and existing Indian migrant workers.

A dramatic escalation came in US-Iran tensions after the United States killed Qasem Soleimani, the head of the elite Quds Force in a strike at Iraq's Baghdad airport on Friday.

A dramatic escalation came in US-Iran tensions after the United States killed Qasem Soleimani, the head of the elite Quds Force in a strike at Iraq's Baghdad airport on Friday. An advisor to Soleimani, Muhandis was killed in the strike. The Soleimani's killing triggered various reactions from across the world and while some Republicans lauded the move other world leaders warned of danger and urged US and Iran for restraint. So what does this escalation of tensions mean for India? India heavily depends on crude imports from West Asian nations and the country's slowing economy could be further dented by the spike in crude oil prices owing to the instability. US-Iran tensions have the potential to heavily and adversely affect stability in the region. The region supplies to a third of the world's oil demand. But while it is not just Iraq, but experts opine that most of the West-Asian nations will either align for or against the United States if the situation does not de-escalate. According to a report, a 10 dollar rise in crude oil prices will increase India's import bill by 15 billion dollars . a confrontation of this nature has the potential to drag down other such oil-producing countries. Also, India is one of the world's top recipients of external remittances. Looking at 2017 figures from the reserve bank of India, India received 69 billion US dollars worth remittances. What can be concerning for India, owing to the escalation of tensions, is that over 50% of the remittances come from countries like Saudi Arabia, United Arab Emirates, Qatar and Oman, countries that could potentially be affected by the developing situation. Substantial population from Indian states like Kerala, Maharashtra, Karnataka and Tamil Nadu look to West Asian countries for better job opportunities. The tensions could affect the prospects of aspiring and existing Indian migrant workers.

How rising tension between US-Iran after Soleimani's killing will affect India

<a href="https://www.wionews.com/business-economy/indias-economy-seen-growing-at-47-per-cent-in-september-quarter-265058">India Ratings and Research</a> (Ind-Ra) said on Thursday that domestic steel demand showed improvement in the third quarter of the current fiscal year and can further pick up in the fourth quarter (January to March). 
 
However, the possible disruption in iron ore supplies, in case of delays in the auction of iron ore mines, continues to be a key monitorable. 
 
With the possible disruption, steel players will look to increase production levels over the remaining <a href="https://www.wionews.com/business-economy/india-fiscal-slippage-likely-in-2020-as-tax-revenue-growth-stumbles-262544">FY20</a> and also capitalize on improved gross spreads, said Ind-Ra. This is likely to contribute towards higher inventory levels with improved steel prices.

India's <a href="https://www.wionews.com/business-economy/asia-stocks-frustrated-as-trade-doubts-resurface-260494">crude steel</a> production was at 72.41 million tonnes in the eight months ended November 2019 from 106.44 million tonnes in <a href="https://www.wionews.com/opinions/economy-debate-narendra-modis-nda-versus-manmohan-singhs-upa-267271">FY19</a>. To make domestic steel players more cost-competitive, the government is likely to come out with a white paper in the next three to four months. 
 
The gross spread per tonne (realization per tonne of steel by raw material cost) within the hot-rolled coil product segment improved by Rs 2,200 per tonne in mid-December 2019 from the end of first-half FY20. This can be largely attributed to an increase in steel realizations clubbed with a simultaneous fall in coking coal prices. 
 
The domestic demand for steel showed signs of improvement in Q3 FY20 and can further pick-up in Q4 FY20 and is a key driver of improved domestic steel realizations. The demand in H2 FY20 is however not likely to witness the same levels as in FY19. 
 
Within the construction segment, the demand pick-up for long steel products was slightly delayed post the conclusion of monsoon season with the ban on construction activities to address pollution levels in the <a href="https://www.wionews.com/india-news/severe-cold-continues-in-delhi-dense-fog-hampers-visibility-270958">Delhi-NCR</a> region in November. 
 
However, steel consumption is expected to improve in December with the <a href="https://www.wionews.com/india-news/tata-sons-moves-supreme-court-over-nclat-order-to-reinstate-cyrus-mistry-as-chairman-271594">Supreme Court</a> partially lifting the ban on construction activities. 
 
On the global front, China's crude steel output fell by around 2 per cent month-on-month in November 2019 which was the lowest output since February. 
 
China crude steel production may remain low over December 2019 to January 2020 with the onset of winter season and aid in sustaining the current price levels, said Ind-Ra.

India Ratings and Research (Ind-Ra) said on Thursday that domestic steel demand showed improvement in the third quarter of the current fiscal year and can further pick up in the fourth quarter (January to March).

India Ratings and Research (Ind-Ra) said on Thursday that domestic steel demand showed improvement in the third quarter of the current fiscal year and can further pick up in the fourth quarter (January to March). However, the possible disruption in iron ore supplies, in case of delays in the auction of iron ore mines, continues to be a key monitorable. With the possible disruption, steel players will look to increase production levels over the remaining FY20 and also capitalize on improved gross spreads, said Ind-Ra. This is likely to contribute towards higher inventory levels with improved steel prices. India's crude steel production was at 72.41 million tonnes in the eight months ended November 2019 from 106.44 million tonnes in FY19. To make domestic steel players more cost-competitive, the government is likely to come out with a white paper in the next three to four months. The gross spread per tonne (realization per tonne of steel by raw material cost) within the hot-rolled coil product segment improved by Rs 2,200 per tonne in mid-December 2019 from the end of first-half FY20. This can be largely attributed to an increase in steel realizations clubbed with a simultaneous fall in coking coal prices. The domestic demand for steel showed signs of improvement in Q3 FY20 and can further pick-up in Q4 FY20 and is a key driver of improved domestic steel realizations. The demand in H2 FY20 is however not likely to witness the same levels as in FY19. Within the construction segment, the demand pick-up for long steel products was slightly delayed post the conclusion of monsoon season with the ban on construction activities to address pollution levels in the Delhi-NCR region in November. However, steel consumption is expected to improve in December with the Supreme Court partially lifting the ban on construction activities. On the global front, China's crude steel output fell by around 2 per cent month-on-month in November 2019 which was the lowest output since February. China crude steel production may remain low over December 2019 to January 2020 with the onset of winter season and aid in sustaining the current price levels, said Ind-Ra.

Ind-Ra: Higher gross spreads expected in steel sector over H2 FY20

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