Oil&nbsp;prices kicked off the&nbsp;new&nbsp;year&nbsp;higher&nbsp;on Thursday as warming&nbsp;<a href="https://www.wionews.com/world/us-china-phase-one-trade-deal-to-be-signed-january-15-trump-271308">trade&nbsp;relations</a> between the United States and China eased demand concerns while rising&nbsp;tensions&nbsp;in the&nbsp;Middle&nbsp;East&nbsp;fuelled worries about supply.

Global benchmark <a href="https://www.wionews.com/business-economy/oil-prices-steady-on-track-for-biggest-yearly-rise-since-2016-271227">Brent crude</a> futures, rose 35 cents, or 0.5 per cent, to 66.35 a barrel by 0738 GMT, while US&nbsp;<a href="https://www.wionews.com/business-economy/global-markets-china-lifts-asian-shares-oil-up-on-drawdowns-mideast-tensions-270929">West Texas Intermediate</a> (WTI) crude was up 25 cents, or 0.4 per cent, at $61.31 per barrel.

<a href="https://www.wionews.com/opinions/wion-edit-oil-drives-the-global-economy-268116">Oil&nbsp;markets</a> were closed on Wednesday for&nbsp;New&nbsp;Year's Day.

Both benchmarks ended&nbsp;higher&nbsp;in 2019, posting their biggest annual gains since 2016, buoyed at the end of the&nbsp;year&nbsp;by a thaw in the prolonged&nbsp;trade&nbsp;dispute between the United States and China, the world's two largest economies and a deeper output cut pledged by the <a href="https://www.wionews.com/business-economy/oil-prices-inch-higher-amid-support-for-supply-cuts-lower-inventory-forecast-269909">Organization of Petroleum Exporting Countries</a> (OPEC) and its allies.

"Oil&nbsp;remains supported by the back-burner&nbsp;trade&nbsp;truce and the uptick in political unrest in Iraq," said <a href="https://www.wionews.com/business-economy/oil-prices-slip-as-weak-china-exports-highlights-trade-war-impact-267079">Stephen Innes</a>, chief Asia market strategist at AxiTrader.

The US&nbsp;military carried out airstrikes against Iran-backed Katib Hezbollah militia group over the weekend. Angry at the airstrikes, protesters stormed the US&nbsp;Embassy in Baghdad on Wednesday, although they withdrew after the United States deployed extra troops.

In 2020, Brent is forecast to average $63.07 a barrel, up from December's estimate of $62.50, while WTI is forecast to average $57.70 a barrel, up from December's estimate of $57.30, as the OPEC-led supply cuts and the expectations of a US-China&nbsp;trade&nbsp;deal boosted analysts' views on the prospects for the&nbsp;year, a Reuters poll showed.

US&nbsp;President Donald Trump said on Tuesday the US-China Phase One&nbsp;<a href="https://www.wionews.com/business-economy/oil-edges-up-on-trade-optimism-eyes-on-middle-east-tensions-270959">trade&nbsp;deal</a> would be signed on January&nbsp;15 at the White House.

January also marks the start of the deeper output cuts by OPEC and its partners, including Russia. OPEC and its allies have agreed to cut a further of 500,000 barrels per day (BPD) from January&nbsp;1, on top of their previous cut of 1.2 million BPD that started on January&nbsp;1&nbsp;a&nbsp;year&nbsp;ago.

A fall in US&nbsp;<a href="https://www.wionews.com/business-economy/oil-prices-inch-higher-amid-support-for-supply-cuts-lower-inventory-forecast-269909">crude inventories</a> last week also supported prices. US&nbsp;crude stocks fell 7.8 million barrels in the week ended December&nbsp;27, compared with analysts' expectations for a decrease of 3.2 million barrels, according to data from the <a href="https://www.wionews.com/business-economy/oil-falls-as-us-inventories-rise-but-demand-hopes-stem-bigger-drop-268973">American Petroleum Institute</a> (API) released on Tuesday.

Official data from the Energy Information Administration (EIA) is due on Friday as the release has been delayed by two days by the&nbsp;New&nbsp;Year's holiday.

"Traders will look towards Friday's EIA report for forwarding guidance on&nbsp;oil&nbsp;prices," said <a href="https://www.wionews.com/business-economy/oil-prices-steady-on-track-for-biggest-yearly-rise-since-2016-271227">Benjamin Lu</a>, an analyst at Singapore-based brokerage Phillip Futures.

Oil prices kicked off the new year higher on Thursday as warming trade relations between the United States and China eased demand concerns while rising tensions in the Middle East fuelled worries about supply.

Oil prices kicked off the new year higher on Thursday as warming trade relations between the United States and China eased demand concerns while rising tensions in the Middle East fuelled worries about supply. Global benchmark Brent crude futures, rose 35 cents, or 0.5 per cent, to 66.35 a barrel by 0738 GMT, while US West Texas Intermediate (WTI) crude was up 25 cents, or 0.4 per cent, at $61.31 per barrel. Oil markets were closed on Wednesday for New Year's Day. Both benchmarks ended higher in 2019, posting their biggest annual gains since 2016, buoyed at the end of the year by a thaw in the prolonged trade dispute between the United States and China, the world's two largest economies and a deeper output cut pledged by the Organization of Petroleum Exporting Countries (OPEC) and its allies. "Oil remains supported by the back-burner trade truce and the uptick in political unrest in Iraq," said Stephen Innes, chief Asia market strategist at AxiTrader. The US military carried out airstrikes against Iran-backed Katib Hezbollah militia group over the weekend. Angry at the airstrikes, protesters stormed the US Embassy in Baghdad on Wednesday, although they withdrew after the United States deployed extra troops. In 2020, Brent is forecast to average $63.07 a barrel, up from December's estimate of $62.50, while WTI is forecast to average $57.70 a barrel, up from December's estimate of $57.30, as the OPEC-led supply cuts and the expectations of a US-China trade deal boosted analysts' views on the prospects for the year, a Reuters poll showed. US President Donald Trump said on Tuesday the US-China Phase One trade deal would be signed on January 15 at the White House. January also marks the start of the deeper output cuts by OPEC and its partners, including Russia. OPEC and its allies have agreed to cut a further of 500,000 barrels per day (BPD) from January 1, on top of their previous cut of 1.2 million BPD that started on January 1 a year ago. A fall in US crude inventories last week also supported prices. US crude stocks fell 7.8 million barrels in the week ended December 27, compared with analysts' expectations for a decrease of 3.2 million barrels, according to data from the American Petroleum Institute (API) released on Tuesday. Official data from the Energy Information Administration (EIA) is due on Friday as the release has been delayed by two days by the New Year's holiday. "Traders will look towards Friday's EIA report for forwarding guidance on oil prices," said Benjamin Lu, an analyst at Singapore-based brokerage Phillip Futures.

Oil starts new year higher on trade optimism, Middle East in 'supply' tensions

The artworks by Nikolai Nasedkin are made with wide strokes and have vivid dark textures - Russian artist uses not only paint but crude oil suspensions in his creations.

Artist paints modern Russia with crude oil

Saudi Arabia is involved in several proxy wars in the region and continues to make a mockery of rights.

But even then, countries like the US, which have been directly affected by the terror exports from Saudi, continue to support Saudi Arabia.

The reason is oil and Saudi Arabia has loads of it. Simply put - it's Petro-Islam.

So, how long will Saudi Arabia get a free pass and a pat on the back for being the breeding ground of terrorism?

There is no clear answer because the world runs on oil. On Wion Edit, we discuss the need to find alternatives for oil.

Importers cannot continue to face supply disruption due to the crisis in West Asia.

Countries like India have diversified their oil procurement in an attempt to stay insulated from supply issues. But that's at best - a stop-gap solution.

If you look at the oil producers, with the exception of the US and Russia, most countries are facing turmoil.

Venezuela, Nigeria, Iran, Iraq, Qatar and now Saudi Arabia. All these countries face threats of terrorism.

And this will only intensify and&nbsp;lead to more disputes over this crucial commodity. Depending on crude, therefore, is an economic risk in the medium to long term.

Several countries are moving towards generating power entirely through renewable energy sources. Countries like Denmark, Iceland, Sweden, Nicaragua, Germany are well on course to achieving independence from oil.

That means that these countries need not worry about political disruptions in countries like Saudi Arabia.

Besides&nbsp;this, the transition is cost-effective too.

Over the last few years, India has come a long way in its push for renewable energy. Right now, the share of renewable energy in India is above 20 per cent. The government should continue this transition more aggressively.

This will help India escape the wrath of OPEC cartel.&nbsp;

The sooner&nbsp;countries find alternatives to oil, the better it will be for economic autonomy. Besides, it will help in ending the many conflicts in West Asia.

The only way to end the radical Petro-Islam is to achieve independence from oil. 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Saudi Arabia is involved in several proxy wars in the region and continues to make a mockery of rights. But even then, countries like the US, which have been directly affected by the terror exports from Saudi, continue to support Saudi Arabia.

Saudi Arabia is involved in several proxy wars in the region and continues to make a mockery of rights. But even then, countries like the US, which have been directly affected by the terror exports from Saudi, continue to support Saudi Arabia. The reason is oil and Saudi Arabia has loads of it. Simply put - it's Petro-Islam. So, how long will Saudi Arabia get a free pass and a pat on the back for being the breeding ground of terrorism? There is no clear answer because the world runs on oil. On Wion Edit, we discuss the need to find alternatives for oil. Importers cannot continue to face supply disruption due to the crisis in West Asia. Countries like India have diversified their oil procurement in an attempt to stay insulated from supply issues. But that's at best - a stop-gap solution. If you look at the oil producers, with the exception of the US and Russia, most countries are facing turmoil. Venezuela, Nigeria, Iran, Iraq, Qatar and now Saudi Arabia. All these countries face threats of terrorism. And this will only intensify and lead to more disputes over this crucial commodity. Depending on crude, therefore, is an economic risk in the medium to long term. Several countries are moving towards generating power entirely through renewable energy sources. Countries like Denmark, Iceland, Sweden, Nicaragua, Germany are well on course to achieving independence from oil. That means that these countries need not worry about political disruptions in countries like Saudi Arabia. Besides this, the transition is cost-effective too. Over the last few years, India has come a long way in its push for renewable energy. Right now, the share of renewable energy in India is above 20 per cent. The government should continue this transition more aggressively. This will help India escape the wrath of OPEC cartel. The sooner countries find alternatives to oil, the better it will be for economic autonomy. Besides, it will help in ending the many conflicts in West Asia. The only way to end the radical Petro-Islam is to achieve independence from oil. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

WION Edit: Achieving independence from oil

Union Minister of Petroleum, Dharmendra Pradhan on Monday said, top executives of Aramco have been contacted to ensure a steady supply to India,&nbsp;after an <a href="https://www.wionews.com/world/yemens-houthis-say-aramco-plants-still-a-target-report-249938">attack on Saudi Arabia's crude oil facilities</a> over the weekend.

"Following the attacks on the oil stabilisation centres of Saudi Aramco, top executives of Aramco have been contacted. Indian ambassador in Riyadh contacted the senior management of Aramco to ensure a steady supply to India," Pradhan said in a press conference.&nbsp;

"We are confident there would be no supply disruption to India. We are closely monitoring the evolving situation," Pradhan added.

Saudi Arabia is the world's biggest oil exporter and the attack on state-owned producer Saudi Aramco's crude-processing facilities at Abqaiq and Khurais has cut output by 5.7 million barrels per day. The company has not given a timeline for the resumption of full output.

Watch: Saudi Drone Attacks - how will the oil cut impact the world?

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Saudi Arabia is also India's top oil supplier after Iraq. In January-July, it supplied 788,200 barrels per day of oil to India.

Yemen's Iran-aligned Houthi group claimed responsibility for the drone attack, but the US has pointed the finger directly at Iran.

(With inputs from agencies)

Union Minister of Petroleum, Dharmendra Pradhan on Monday said, top executives of Aramco have been contacted to ensure a steady supply to India, after an attack on Saudi Arabia's crude oil facilities over the weekend.

Union Minister of Petroleum, Dharmendra Pradhan on Monday said, top executives of Aramco have been contacted to ensure a steady supply to India, after an attack on Saudi Arabia's crude oil facilities over the weekend. "Following the attacks on the oil stabilisation centres of Saudi Aramco, top executives of Aramco have been contacted. Indian ambassador in Riyadh contacted the senior management of Aramco to ensure a steady supply to India," Pradhan said in a press conference. "We are confident there would be no supply disruption to India. We are closely monitoring the evolving situation," Pradhan added. Saudi Arabia is the world's biggest oil exporter and the attack on state-owned producer Saudi Aramco's crude-processing facilities at Abqaiq and Khurais has cut output by 5.7 million barrels per day. The company has not given a timeline for the resumption of full output. Watch: Saudi Drone Attacks - how will the oil cut impact the world? × Saudi Arabia is also India's top oil supplier after Iraq. In January-July, it supplied 788,200 barrels per day of oil to India. Yemen's Iran-aligned Houthi group claimed responsibility for the drone attack, but the US has pointed the finger directly at Iran. (With inputs from agencies)

'No supply disruption to India': Union Minister Dharmendra Pradhan after attack on Saudi's oil facilities

India's current account and fiscal deficit might take a hit if oil prices continue to rise after an attack on Saudi Arabian oil facilities over the weekend, the Reserve Bank of India chief said on Monday.

"We should allow a few more days to see how the situation plays out before taking a final view...depending on how long it persists it will have some impact on the current account deficit and further perhaps on the fiscal deficit if it lasts longer," Governor Shaktikanta Das told the CNBC-TV18 news channel.

US officials blamed Iran for the attack, which damaged the world's biggest crude oil processing plant and led to a 19% surge in oil prices. Iran denied blame and said it was ready for "full-fledged war".

A jump in oil prices is negative for emerging markets such as India, which is the world's third-biggest importer of oil.

The country is already likely to miss its fiscal deficit target for the current financial year, despite receiving an additional dividend from the central bank, five government officials and advisers told Reuters earlier this month, as tax collections have sunk amid a sharp economic slowdown.

India's current account and fiscal deficit might take a hit if oil prices continue to rise after an attack on Saudi Arabian oil facilities over the weekend, the Reserve Bank of India chief said on Monday.

India's current account and fiscal deficit might take a hit if oil prices continue to rise after an attack on Saudi Arabian oil facilities over the weekend, the Reserve Bank of India chief said on Monday. "We should allow a few more days to see how the situation plays out before taking a final view...depending on how long it persists it will have some impact on the current account deficit and further perhaps on the fiscal deficit if it lasts longer," Governor Shaktikanta Das told the CNBC-TV18 news channel. US officials blamed Iran for the attack, which damaged the world's biggest crude oil processing plant and led to a 19% surge in oil prices. Iran denied blame and said it was ready for "full-fledged war". A jump in oil prices is negative for emerging markets such as India, which is the world's third-biggest importer of oil. The country is already likely to miss its fiscal deficit target for the current financial year, despite receiving an additional dividend from the central bank, five government officials and advisers told Reuters earlier this month, as tax collections have sunk amid a sharp economic slowdown.

India's current account under threat if oil surge continues: RBI Governor

<a href="https://www.wionews.com/world/oil-rises-after-iran-says-it-seized-foreign-tanker-in-gulf-236913">Crude oil prices rose</a> more than 2 per cent on Friday, recovering from two days of declines after data showing a rise in US retail sales helped to ease concerns about a recession in the world's biggest economy.

Brent crude was up 2 per cent at $59.48 a barrel at 0924 GMT, after falling 2.1 per cent on Thursday and 3 per cent the previous day.&nbsp;

US crude was also 2 per cent higher at $55.60 a barrel, having dropped 1.4 per cent in the previous session and 3.3 per cent on Wednesday.

US retail sales rose 0.7 per cent in July as consumers bought a range of goods even as they cut back on motor vehicle purchases, Thursday's data showed.

That came a day after a sell-off in world markets that followed the US Treasury yield curve's first inversion since June 2007 - a development usually seen as a reliable predictor of a looming recession.

"The rebound has a corrective look about it on thin volumes, rather than a beachhead for an impending rebound," said Jeffrey Halley, senior market analyst at OANDA.&nbsp;

"Overall, US data continues to be a bright spot in a dark economic universe."

World stocks also rose on Friday as expectations grew for further stimulus by central banks, offsetting worries about slowing economic growth.

Gains are likely to be capped after a week of data releases included a surprise drop in industrial output growth in China to a more than 17-year low and a fall in exports that sent Germany's economy into reverse in the second quarter.

"The broader story around global economic growth has been a weak one, or a weakening one, and expectations (are for) further weakening," said Phin Ziebell, senior economist at National Australia Bank.

The price of Brent is still up nearly 10 per cent this year thanks to supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, a group known as OPEC+.

In July, OPEC+ agreed to extend oil output cuts until March 2020 to prop up prices.

"At what point will further output cuts be needed at the back end of this year from OPEC and Russia to keep things going the way they are?" Ziebell said.

A Saudi official indicated this month that more steps may be coming, saying Saudi Arabia was committed to doing "whatever it takes" to keep the market balanced next year.

OPEC's efforts have been undermined by worries about a slowing global economy amid a trade dispute between the United States and China, as well as rising US stockpiles of crude and higher output of US shale oil.

Crude oil prices rose more than 2 per cent on Friday, recovering from two days of declines after data showing a rise in US retail sales helped to ease concerns about a recession in the world's biggest economy.

Crude oil prices rose more than 2 per cent on Friday, recovering from two days of declines after data showing a rise in US retail sales helped to ease concerns about a recession in the world's biggest economy. Brent crude was up 2 per cent at $59.48 a barrel at 0924 GMT, after falling 2.1 per cent on Thursday and 3 per cent the previous day. US crude was also 2 per cent higher at $55.60 a barrel, having dropped 1.4 per cent in the previous session and 3.3 per cent on Wednesday. US retail sales rose 0.7 per cent in July as consumers bought a range of goods even as they cut back on motor vehicle purchases, Thursday's data showed. That came a day after a sell-off in world markets that followed the US Treasury yield curve's first inversion since June 2007 - a development usually seen as a reliable predictor of a looming recession. "The rebound has a corrective look about it on thin volumes, rather than a beachhead for an impending rebound," said Jeffrey Halley, senior market analyst at OANDA. "Overall, US data continues to be a bright spot in a dark economic universe." World stocks also rose on Friday as expectations grew for further stimulus by central banks, offsetting worries about slowing economic growth. Gains are likely to be capped after a week of data releases included a surprise drop in industrial output growth in China to a more than 17-year low and a fall in exports that sent Germany's economy into reverse in the second quarter. "The broader story around global economic growth has been a weak one, or a weakening one, and expectations (are for) further weakening," said Phin Ziebell, senior economist at National Australia Bank. The price of Brent is still up nearly 10 per cent this year thanks to supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, a group known as OPEC+. In July, OPEC+ agreed to extend oil output cuts until March 2020 to prop up prices. "At what point will further output cuts be needed at the back end of this year from OPEC and Russia to keep things going the way they are?" Ziebell said. A Saudi official indicated this month that more steps may be coming, saying Saudi Arabia was committed to doing "whatever it takes" to keep the market balanced next year. OPEC's efforts have been undermined by worries about a slowing global economy amid a trade dispute between the United States and China, as well as rising US stockpiles of crude and higher output of US shale oil.

Oil rises 2% as recession fears recede

India's current account deficit (CAD) is expected to remain largely steady at 16 billion to 17 billion dollars or 2.3 per cent of GDP in the first quarter (April to June) of the current fiscal year 2019-20 despite the recent contraction in merchandise exports and imports, according to investment information firm ICRA.

This de-growth is likely to persist in the immediate term, given the year-on-year decline in crude oil prices and impact of recent customs duty hike on gold and precious metals.

Such factors in addition to the threat imposed by global trade wars as well as sluggish domestic demand are likely to restrict the overall growth of both merchandise exports and imports to low single digits.&nbsp;

ICRA forecasts India`s CAD to widen to 63 billion to 68 billion dollars in FY20 from 57.2 billion dollars in FY19 while remaining steady at around 2.1 per cent of GDP.

"The widening in the merchandise trade deficit is likely to be absorbed by a mildly higher services trade surplus and remittance flows in Q1 FY20," said ICRA`s Principal Economist Aditi Nayar.

&nbsp;"As a result, the CAD is expected to remain largely steady at 16 to 17 billion dollars or 2.3 per cent of GDP in the just-concluded quarter relative to 15.8 billion dollars in Q1 FY19."

Recently released data indicates that India`s merchandise exports and imports contracted by 1.7 per cent and 0.3 per cent respectively in Q1 FY20."The prevailing year-on-year decline in crude oil prices and a temporary dip in gold imports following the tax changes introduced in the Union Budget may well result in a contraction in aggregate merchandise imports as well as exports in July 2019," said Nayar.

"However, both these factors will contribute to a sizeable reduction in the size of the trade deficit in July 2019 to about 16 to 16.5 billion dollars from 18.6 billion dollars recorded on July 2018, which was the highest monthly print for FY19," she said in a statement.

An anticipated decline in the average price of the Indian basket of crude oil to 65 dollars a barrel in FY20 from 70 dollars a barrel in FY19, the risk related to global trade wars and signs of moderation in domestic consumption and industrial demand will exert a drag on the headline pace of expansion of merchandise exports and imports in the ongoing year.&nbsp;

Moreover, high gold prices may restrict growth in demand for imports of the precious metal.&nbsp;

At present, ICRA anticipates that merchandise exports and imports will grow by a low two to three per cent and four to five per cent respectively in FY20.&nbsp;

Nevertheless, with the pace of growth of inbound shipments likely to exceed that of exports.

ICRA expects the merchandise trade deficit to widen to about 193 billion to 198 billion dollars in FY20 from 180 billion dollars in FY18.&nbsp;

A revival in gold imports closer to the festive season may push up the CAD size to 28 billion to 30 billion dollars in the second half of FY20, relative to the 21.5 billion dollars recorded in the second half of FY19.

Overall, ICRA expects India`s CAD to widen at an absolute level for the third year in a row to 63 billion to 68 billion dollars in FY20 from 57.2 billion dollars in FY19 &nbsp;while remaining steady at around 2.1 per cent of the GDP.

A sustained pick-up in the price of crude oil, which appears to be an unlikely scenario at present, remains a risk to the CAD size.&nbsp;

According to ICRA, every one dollar a barrel increase in the average price of crude oil in FY20 is likely to expand the CAD by about 1.6 billion dollars.

India's current account deficit (CAD) is expected to remain largely steady at 16 billion to 17 billion dollars or 2.3 per cent of GDP in the first quarter (April to June) of the current fiscal year 2019-20 despite the recent contraction in merchandise exports and imports, according to investment information firm ICRA.

India's current account deficit (CAD) is expected to remain largely steady at 16 billion to 17 billion dollars or 2.3 per cent of GDP in the first quarter (April to June) of the current fiscal year 2019-20 despite the recent contraction in merchandise exports and imports, according to investment information firm ICRA. This de-growth is likely to persist in the immediate term, given the year-on-year decline in crude oil prices and impact of recent customs duty hike on gold and precious metals. Such factors in addition to the threat imposed by global trade wars as well as sluggish domestic demand are likely to restrict the overall growth of both merchandise exports and imports to low single digits. ICRA forecasts India`s CAD to widen to 63 billion to 68 billion dollars in FY20 from 57.2 billion dollars in FY19 while remaining steady at around 2.1 per cent of GDP. "The widening in the merchandise trade deficit is likely to be absorbed by a mildly higher services trade surplus and remittance flows in Q1 FY20," said ICRA`s Principal Economist Aditi Nayar. "As a result, the CAD is expected to remain largely steady at 16 to 17 billion dollars or 2.3 per cent of GDP in the just-concluded quarter relative to 15.8 billion dollars in Q1 FY19." Recently released data indicates that India`s merchandise exports and imports contracted by 1.7 per cent and 0.3 per cent respectively in Q1 FY20."The prevailing year-on-year decline in crude oil prices and a temporary dip in gold imports following the tax changes introduced in the Union Budget may well result in a contraction in aggregate merchandise imports as well as exports in July 2019," said Nayar. "However, both these factors will contribute to a sizeable reduction in the size of the trade deficit in July 2019 to about 16 to 16.5 billion dollars from 18.6 billion dollars recorded on July 2018, which was the highest monthly print for FY19," she said in a statement. An anticipated decline in the average price of the Indian basket of crude oil to 65 dollars a barrel in FY20 from 70 dollars a barrel in FY19, the risk related to global trade wars and signs of moderation in domestic consumption and industrial demand will exert a drag on the headline pace of expansion of merchandise exports and imports in the ongoing year. Moreover, high gold prices may restrict growth in demand for imports of the precious metal. At present, ICRA anticipates that merchandise exports and imports will grow by a low two to three per cent and four to five per cent respectively in FY20. Nevertheless, with the pace of growth of inbound shipments likely to exceed that of exports. ICRA expects the merchandise trade deficit to widen to about 193 billion to 198 billion dollars in FY20 from 180 billion dollars in FY18. A revival in gold imports closer to the festive season may push up the CAD size to 28 billion to 30 billion dollars in the second half of FY20, relative to the 21.5 billion dollars recorded in the second half of FY19. Overall, ICRA expects India`s CAD to widen at an absolute level for the third year in a row to 63 billion to 68 billion dollars in FY20 from 57.2 billion dollars in FY19 while remaining steady at around 2.1 per cent of the GDP. A sustained pick-up in the price of crude oil, which appears to be an unlikely scenario at present, remains a risk to the CAD size. According to ICRA, every one dollar a barrel increase in the average price of crude oil in FY20 is likely to expand the CAD by about 1.6 billion dollars.

Current account deficit to print at 16-17 billion dollar in Q1 FY20: ICRA

Oil prices rose 4.5 per cent a barrel on Wednesday to their highest level in more than a month after <a href="https://www.wionews.com/business-economy/oil-falls-on-trade-dispute-despite-surprise-drop-in-us-crude-inventories-217140">US crude inventories</a> shrank and as major producers cut nearly a third of offshore Gulf of Mexico production ahead of an expected storm.

Brent crude futures settled at $67.01 a barrel, up $2.85, or 4.44 percent. US <a href="https://www.wionews.com/business-economy/crude-oil-prices-fall-1-on-fears-for-global-economy-233148">West Texas Intermediate</a> (WTI) crude futures settled at $60.43 a barrel, climbing $2.60, or 4.50 percent.

Both benchmarks hit their highest prices since late-May.

US crude stocks fell 9.5 million barrels in the week to July 5, shrinking more than triple the 3.1 million-barrel draw analysts had expected as refineries ramped up output, the Energy Information Administration (EIA) said.

"The inventory draw was much stronger than expected," which helped to push oil prices higher, said Carsten Fritsch, oil analyst at Commerzbank. "Imports dropped and refinery utilization reached the highest level since the beginning of the year, contributing to the big draw."

A storm expected to form along the Gulf of Mexico also helped oil prices.

Major oil firms began evacuating and halting production in the Gulf of Mexico ahead of the storm, which is forecast to become a hurricane by the weekend.

"With the evacuation of several platforms in the Gulf of Mexico in advance of a tropical storm, that will curb production," said Andrew Lipow, president of Lipow Oil Associates.

Chevron Corp, Royal Dutch Shell, BP, Anadarko Petroleum and BHP Group &nbsp;were in the process of removing staff from 15 offshore platforms. Exxon Mobil &nbsp;said it was monitoring the weather to determine if its facilities might be affected.

The Gulf of Mexico is home to 17 per cent of US crude oil output which stands at around 12 million barrels per day.

The US and global benchmarks have gained this year as the Organisation of the Petroleum Exporting Countries (OPEC) and big producers such as Russia have curbed output to bolster prices.

The alliance, known as OPEC+, agreed last week to extend its supply-cutting deal until March 2020.

Tensions around Iran's nuclear programme and recent incidents involving oil tankers in the Gulf have also supported prices.

"The ongoing geopolitical tensions between the United States and Iran continue to add a still unquantifiable level of support," said Saxo Bank commodity strategist Ole Hansen.

A top US general said on Tuesday that Washington hopes to enlist allies over the next two weeks or so in a military coalition to safeguard strategic waters off Iran and Yemen, where the United States blames Iran and Iran-aligned fighters for attacks.

Oil prices rose 4.5 per cent a barrel on Wednesday to their highest level in more than a month after US crude inventories shrank and as major producers cut nearly a third of offshore Gulf of Mexico production ahead of an expected storm.

Oil prices rose 4.5 per cent a barrel on Wednesday to their highest level in more than a month after US crude inventories shrank and as major producers cut nearly a third of offshore Gulf of Mexico production ahead of an expected storm. Brent crude futures settled at $67.01 a barrel, up $2.85, or 4.44 percent. US West Texas Intermediate (WTI) crude futures settled at $60.43 a barrel, climbing $2.60, or 4.50 percent. Both benchmarks hit their highest prices since late-May. US crude stocks fell 9.5 million barrels in the week to July 5, shrinking more than triple the 3.1 million-barrel draw analysts had expected as refineries ramped up output, the Energy Information Administration (EIA) said. "The inventory draw was much stronger than expected," which helped to push oil prices higher, said Carsten Fritsch, oil analyst at Commerzbank. "Imports dropped and refinery utilization reached the highest level since the beginning of the year, contributing to the big draw." A storm expected to form along the Gulf of Mexico also helped oil prices. Major oil firms began evacuating and halting production in the Gulf of Mexico ahead of the storm, which is forecast to become a hurricane by the weekend. "With the evacuation of several platforms in the Gulf of Mexico in advance of a tropical storm, that will curb production," said Andrew Lipow, president of Lipow Oil Associates. Chevron Corp, Royal Dutch Shell, BP, Anadarko Petroleum and BHP Group were in the process of removing staff from 15 offshore platforms. Exxon Mobil said it was monitoring the weather to determine if its facilities might be affected. The Gulf of Mexico is home to 17 per cent of US crude oil output which stands at around 12 million barrels per day. The US and global benchmarks have gained this year as the Organisation of the Petroleum Exporting Countries (OPEC) and big producers such as Russia have curbed output to bolster prices. The alliance, known as OPEC+, agreed last week to extend its supply-cutting deal until March 2020. Tensions around Iran's nuclear programme and recent incidents involving oil tankers in the Gulf have also supported prices. "The ongoing geopolitical tensions between the United States and Iran continue to add a still unquantifiable level of support," said Saxo Bank commodity strategist Ole Hansen. A top US general said on Tuesday that Washington hopes to enlist allies over the next two weeks or so in a military coalition to safeguard strategic waters off Iran and Yemen, where the United States blames Iran and Iran-aligned fighters for attacks.

Oil prices jump 4.5 per cent on United States crude stocks draw, Gulf of Mexico storm

Canada has approved the expansion of the controversial trans mountain project, It is suspected to triple the amount of crude oil that moves from Alberta to Pacific coast. Watch this video to know more.

Canada approves controversial Trans Mountain project

Oil prices fell more than 1 per cent on Wednesday, weighed down by a weaker oil demand outlook and a rise in <a href="https://www.wionews.com/business-economy/oil-rises-as-saudi-sees-producers-sticking-with-ongoing-supply-cuts-225845">US crude inventories</a> despite growing expectations of ongoing OPEC-led supply cuts.

Brent crude futures, the international benchmark for oil prices, were down 87 cents, or 1.4 per cent, at $61.42 a barrel.

US West Texas Intermediate (WTI) crude futures were down 85 cents, or 1.6 per cent, at $52.41 per barrel.

The US Energy Information Administration (EIA) cut its forecasts for 2019 world oil demand growth and US crude oil production in a monthly report released on Tuesday.

The EIA lowered its 2019 world oil demand growth forecast by 160,000 barrels per day (bpd) to 1.22 million bpd and wound back its forecast for 2019 US crude production to 12.32 million bpd, 140,000 bpd less than the May forecast.

A surprise increase in US crude stockpiles also kept oil prices under pressure.

"Investors have been concerned about the recent rise in stockpiles in the US," ANZ bank said in a note.

US crude inventories rose by 4.9 million barrels in the week ended June 7 to 482.8 million barrels, according to data from the American Petroleum Institute (API) on Tuesday. That compared with analysts' expectations for a decrease of 481,000 barrels.

Official data from the Energy Information Administration (EIA) is due at 10:30 a.m. EDT (1430 GMT) on Wednesday.

Alongside concerns about rising supply, ongoing trade tensions between the United States and China, the world's two biggest oil consumers, weighed on prices. US President Donald Trump said on Tuesday he was holding up a trade deal with China.

"Oil prices have struggled to retain bullish gains as traders stay cautious over heightened geopolitical risks and persistent weakness in the global economic backdrop," said Benjamin Lu, commodities analyst at Phillips Future in Singapore.

With the next meeting of the Organization of the Petroleum Exporting Countries (OPEC) set for the end of June, the market is eyeing whether the world's major oil producers would prolong their supply cuts.

OPEC, along with non-members including Russia in a group called OPEC+, have limited their oil output by 1.2 million bpd since the start of the year to prop up prices.

The Energy Minister for the United Arab Emirates Suhail bin Mohammed al-Mazroui said on Tuesday that OPEC members were close to reaching an agreement on continuing production cuts.

OPEC is set to meet on June 25, followed by talks with its allies led by Russia on June 26. But Russia suggested a date change to July 3 to 4, sources within the group previously told Reuters.

Oil prices fell more than 1 per cent on Wednesday, weighed down by a weaker oil demand outlook and a rise in US crude inventories despite growing expectations of ongoing OPEC-led supply cuts.

Oil prices fell more than 1 per cent on Wednesday, weighed down by a weaker oil demand outlook and a rise in US crude inventories despite growing expectations of ongoing OPEC-led supply cuts. Brent crude futures, the international benchmark for oil prices, were down 87 cents, or 1.4 per cent, at $61.42 a barrel. US West Texas Intermediate (WTI) crude futures were down 85 cents, or 1.6 per cent, at $52.41 per barrel. The US Energy Information Administration (EIA) cut its forecasts for 2019 world oil demand growth and US crude oil production in a monthly report released on Tuesday. The EIA lowered its 2019 world oil demand growth forecast by 160,000 barrels per day (bpd) to 1.22 million bpd and wound back its forecast for 2019 US crude production to 12.32 million bpd, 140,000 bpd less than the May forecast. A surprise increase in US crude stockpiles also kept oil prices under pressure. "Investors have been concerned about the recent rise in stockpiles in the US," ANZ bank said in a note. US crude inventories rose by 4.9 million barrels in the week ended June 7 to 482.8 million barrels, according to data from the American Petroleum Institute (API) on Tuesday. That compared with analysts' expectations for a decrease of 481,000 barrels. Official data from the Energy Information Administration (EIA) is due at 10:30 a.m. EDT (1430 GMT) on Wednesday. Alongside concerns about rising supply, ongoing trade tensions between the United States and China, the world's two biggest oil consumers, weighed on prices. US President Donald Trump said on Tuesday he was holding up a trade deal with China. "Oil prices have struggled to retain bullish gains as traders stay cautious over heightened geopolitical risks and persistent weakness in the global economic backdrop," said Benjamin Lu, commodities analyst at Phillips Future in Singapore. With the next meeting of the Organization of the Petroleum Exporting Countries (OPEC) set for the end of June, the market is eyeing whether the world's major oil producers would prolong their supply cuts. OPEC, along with non-members including Russia in a group called OPEC+, have limited their oil output by 1.2 million bpd since the start of the year to prop up prices. The Energy Minister for the United Arab Emirates Suhail bin Mohammed al-Mazroui said on Tuesday that OPEC members were close to reaching an agreement on continuing production cuts. OPEC is set to meet on June 25, followed by talks with its allies led by Russia on June 26. But Russia suggested a date change to July 3 to 4, sources within the group previously told Reuters.

Oil prices fall on weak demand growth, rise in US crude stocks

Oil prices stabilized on Tuesday on expectations that producer group OPEC and its allies will keep withholding supply to prevent prices from tumbling amid a broad economic slowdown which has started eating away at fuel demand growth.

Russia on Monday said it might support an extension of supply cuts that have been in place since January, <a href="https://www.wionews.com/world/russia-warns-of-great-risk-of-oil-overproduction-226037">warning oil prices</a> could fall as low as $30 per barrel if producers supply too much crude.

The Organization of the Petroleum Exporting Countries (OPEC) and some non-affiliated producers including Russia, known collectively as OPEC+, have withheld supplies since the start of the year to prop up prices.

<a href="https://www.wionews.com/world/saudi-uae-see-sufficient-oil-supplies-rising-stocks-219977">OPEC+ </a>is due to meet in late June or early July to decide output policy for the rest of the year.

“Due to the general fear of an economic downturn ... (and) the realization that demand growth is slowing ... no one will argue for abandoning (the) OPEC+ accord,” said Fereidun Fesharaki, chairman of energy consultancy FGE, in a note published on Tuesday.

FGE said global crude oil demand growth could drop below 1 million barrels per day (bpd) in 2019, down from previous expectations of 1.3 to 1.4 million bpd.

“This effectively gives us an extra 300,000-400,000 barrels per day of supply,” said Fesharaki.

Oil prices stabilized on Tuesday on expectations that producer group OPEC and its allies will keep withholding supply to prevent prices from tumbling amid a broad economic slowdown which has started eating away at fuel demand growth.

Oil prices stabilized on Tuesday on expectations that producer group OPEC and its allies will keep withholding supply to prevent prices from tumbling amid a broad economic slowdown which has started eating away at fuel demand growth. Russia on Monday said it might support an extension of supply cuts that have been in place since January, warning oil prices could fall as low as $30 per barrel if producers supply too much crude. The Organization of the Petroleum Exporting Countries (OPEC) and some non-affiliated producers including Russia, known collectively as OPEC+, have withheld supplies since the start of the year to prop up prices. OPEC+ is due to meet in late June or early July to decide output policy for the rest of the year. “Due to the general fear of an economic downturn ... (and) the realization that demand growth is slowing ... no one will argue for abandoning (the) OPEC+ accord,” said Fereidun Fesharaki, chairman of energy consultancy FGE, in a note published on Tuesday. FGE said global crude oil demand growth could drop below 1 million barrels per day (bpd) in 2019, down from previous expectations of 1.3 to 1.4 million bpd. “This effectively gives us an extra 300,000-400,000 barrels per day of supply,” said Fesharaki.

Oil stable as market eyes ongoing supply cuts amid downturn

Oil prices rose around one per cent on Friday to move further away<a href="https://www.wionews.com/business-economy/international-oil-prices-fall-below-60-per-barrel-recovers-slightly-amid-rising-us-supply-stalling-economy-224824"> from five-month lows hit earlier</a> in the week, buoyed by a report that Washington could postpone trade tariffs on Mexico and signs OPEC and other producers may extend crude supply cuts.

Brent crude futures were up 50 cents, or 0.8 per cent, at $62.17 a barrel, having risen earlier to $62.41. They gained 1.7 per cent on Thursday.

US West Texas Intermediate crude futures were up 50 cents, or one per cent, at $53.09 per barrel, after trading as high as $53.33. They finished the previous session 1.8 per cent higher.

On Wednesday, Brent and WTI sank to their lowest levels since mid-January at $59.45 and $50.60 respectively, after US crude production hit a new record-high and stockpiles climbed to their highest since July 2017.

By then, both contracts were in bear-market territory, having lost more than 20 per cent from peaks reached in late April.

But on Thursday oil prices followed US stocks higher after Bloomberg News reported the United States is considering a delay in the tariffs on Mexico as talks continue.

"After prices hit the depth of the sewer this week, and (are) arguably in oversold territory, traders were always going to be predisposed to book profits ahead of the weekend," Stephen Innes, managing partner at Vanguard Markets said in a morning note.

Nevertheless, sentiment on prices remains dim as fresh signs emerge of a stalling global economy and ongoing concerns about growing US crude supply.

Prices had been supported by supply curbs by the Organization of the Petroleum Exporting Countries (OPEC) and some allies including Russia. Supply has also been limited by US sanctions on oil exports from Iran and Venezuela.

President Vladimir Putin said on Thursday that Russia had differences with OPEC over what constituted a fair price for oil, but that Moscow would take a joint decision on output at a policy meeting in coming weeks.

Oil prices rose around one per cent on Friday to move further away from five-month lows hit earlier in the week, buoyed by a report that Washington could postpone trade tariffs on Mexico and signs OPEC and other producers may extend crude supply cuts.

Oil prices rose around one per cent on Friday to move further away from five-month lows hit earlier in the week, buoyed by a report that Washington could postpone trade tariffs on Mexico and signs OPEC and other producers may extend crude supply cuts. Brent crude futures were up 50 cents, or 0.8 per cent, at $62.17 a barrel, having risen earlier to $62.41. They gained 1.7 per cent on Thursday. US West Texas Intermediate crude futures were up 50 cents, or one per cent, at $53.09 per barrel, after trading as high as $53.33. They finished the previous session 1.8 per cent higher. On Wednesday, Brent and WTI sank to their lowest levels since mid-January at $59.45 and $50.60 respectively, after US crude production hit a new record-high and stockpiles climbed to their highest since July 2017. By then, both contracts were in bear-market territory, having lost more than 20 per cent from peaks reached in late April. But on Thursday oil prices followed US stocks higher after Bloomberg News reported the United States is considering a delay in the tariffs on Mexico as talks continue. "After prices hit the depth of the sewer this week, and (are) arguably in oversold territory, traders were always going to be predisposed to book profits ahead of the weekend," Stephen Innes, managing partner at Vanguard Markets said in a morning note. Nevertheless, sentiment on prices remains dim as fresh signs emerge of a stalling global economy and ongoing concerns about growing US crude supply. Prices had been supported by supply curbs by the Organization of the Petroleum Exporting Countries (OPEC) and some allies including Russia. Supply has also been limited by US sanctions on oil exports from Iran and Venezuela. President Vladimir Putin said on Thursday that Russia had differences with OPEC over what constituted a fair price for oil, but that Moscow would take a joint decision on output at a policy meeting in coming weeks.

Oil prices rise over possible postponement of tariffs on Mexico, OPEC cuts

Oil prices steadied on Thursday after falling to near five-month lows in the previous session, but sentiment remained weak as markets are under pressure from rising <a href="https://www.wionews.com/business-economy/oil-prices-fall-on-rise-in-united-states-inventories-supply-worries-224433">US supply and a stalling economy</a>.

Front-month Brent crude futures were at $60.78 at 0246 GMT. That was 15 cents, or 0.3%, above last session's close.

US West Texas Intermediate (WTI) crude futures were at $51.84 per barrel, 16 cents, or 0.3%, above their last settlement.

Brent and WTI on Wednesday hit their lowest levels since mid-January at $59.45 and $50.60 per barrel, respectively, amid a surge in US crude inventories and record production, and as a global economic slowdown was starting to hit energy demand.

Despite Thursday's gains, <a href="https://www.wionews.com/world/us-says-countries-buying-iranian-oil-will-be-subject-to-sanctions-223000">oil markets have moved</a> into bear territory as defined by a 20 per cent fall from recent peaks reached in late April.

US crude production rose to a record 124.4 million barrels per day (bpd) in the week to May 31, the Energy Information Administration (EIA) said on Wednesday, an increase of 1.63 million bpd since May 2018.

Amid surging output, US commercial crude inventories surged by 6.8 million in week to May 31, to 483.26 million barrels, their highest levels since July 2017.

"Rising US production is more than offsetting the efforts from the OPEC+ and if we add the negative effect a trade war could have on energy demand the result is lower prices," said Alfonso Esparza, senior analyst at futures brokerage OANDA.

The Middle East-dominated producer club of the Organization of the Petroleum Exporting Countries (OPEC) and some non-affiliated producers including Russia, known as OPEC+, have been withholding oil supply since the start of the year to prop up the market.

But outside OPEC+ supply has been&nbsp;rising, not just in the United States.&nbsp;Oil output at Kazakhstan's Kashagan field reached a record 400,000 bpd this week, industry sources said.

Output rose after completion of maintenance in May. Prior to that, production at Kashagan was about 330,000 to 340,000 bpd.

With supply ample despite the OPEC-led cuts, much will depend on demand.

Bank of America Merrill Lynch said this week "global oil demand growth is running at the weakest rate since 2012" at below 1 million bpd, and that this was "leading the selloff" in oil prices recently.

Global economic growth took a dip late last year before recovering in early 2019, but analysts now warn growth is stalling again.

"The nascent recovery has stalled amid trade tensions," Morgan Stanley said.

The US bank said it expected this downturn to result in "the lowest growth rate since global financial crisis" of 2008/2009.

Oil prices steadied on Thursday after falling to near five-month lows in the previous session, but sentiment remained weak as markets are under pressure from rising US supply and a stalling economy.

Oil prices steadied on Thursday after falling to near five-month lows in the previous session, but sentiment remained weak as markets are under pressure from rising US supply and a stalling economy. Front-month Brent crude futures were at $60.78 at 0246 GMT. That was 15 cents, or 0.3%, above last session's close. US West Texas Intermediate (WTI) crude futures were at $51.84 per barrel, 16 cents, or 0.3%, above their last settlement. Brent and WTI on Wednesday hit their lowest levels since mid-January at $59.45 and $50.60 per barrel, respectively, amid a surge in US crude inventories and record production, and as a global economic slowdown was starting to hit energy demand. Despite Thursday's gains, oil markets have moved into bear territory as defined by a 20 per cent fall from recent peaks reached in late April. US crude production rose to a record 124.4 million barrels per day (bpd) in the week to May 31, the Energy Information Administration (EIA) said on Wednesday, an increase of 1.63 million bpd since May 2018. Amid surging output, US commercial crude inventories surged by 6.8 million in week to May 31, to 483.26 million barrels, their highest levels since July 2017. "Rising US production is more than offsetting the efforts from the OPEC+ and if we add the negative effect a trade war could have on energy demand the result is lower prices," said Alfonso Esparza, senior analyst at futures brokerage OANDA. The Middle East-dominated producer club of the Organization of the Petroleum Exporting Countries (OPEC) and some non-affiliated producers including Russia, known as OPEC+, have been withholding oil supply since the start of the year to prop up the market. But outside OPEC+ supply has been rising, not just in the United States. Oil output at Kazakhstan's Kashagan field reached a record 400,000 bpd this week, industry sources said. Output rose after completion of maintenance in May. Prior to that, production at Kashagan was about 330,000 to 340,000 bpd. With supply ample despite the OPEC-led cuts, much will depend on demand. Bank of America Merrill Lynch said this week "global oil demand growth is running at the weakest rate since 2012" at below 1 million bpd, and that this was "leading the selloff" in oil prices recently. Global economic growth took a dip late last year before recovering in early 2019, but analysts now warn growth is stalling again. "The nascent recovery has stalled amid trade tensions," Morgan Stanley said. The US bank said it expected this downturn to result in "the lowest growth rate since global financial crisis" of 2008/2009.

International oil prices fall below $60 per barrel; recovers slightly amid rising US supply, stalling economy

Major crude producers are set to meet Sunday to discuss how to stabilise a volatile oil market amid rising US-Iran tensions in the Gulf, which threaten to disrupt supply.&nbsp;

Key OPEC members and other major suppliers including Russia will assess the oil market and examine compliance to production cuts agreed late last year.

But the subject of Iran, which is not present, will dominate the one-day meeting of the OPEC+ group.

It comes days after sabotage attacks against tankers in highly sensitive Gulf waters and the <a href="https://www.wionews.com/world/saudi-led-warplanes-pound-yemen-rebels-after-pipeline-attack-219178">bombing of a Saudi pipeline by Iran-aligned Yemen rebels</a>.

The meeting also comes as the full impact of re-instated US sanctions against Tehran kicks in, slashing the Islamic Republic's crude exports.

Hours before the meeting in Jeddah, host Saudi Arabia said it does not seek war with Iran but is ready to defend its interests.

The meeting is set to make recommendations ahead of a key OPEC summit in late June, to be attended by Iran.

President Donald Trump said last month Saudi Arabia and other OPEC members had agreed to his request to boost oil production in order to tamp down rising prices.

Massive drops in exports by Iran and Venezuela plus output cuts of 1.2 million barrels per day, implemented by the OPEC+ group since January, have cut supply.

But UAE Energy Minister Suheil al-Mazrouei said inventories were still building up.

He told reporters Saturday that the job of balancing the market was not yet complete, a hint that any ramp-up in production could send prices crashing as they did in late 2018.

Iran exports tumble

OPEC and the International Energy Agency said earlier this month that global oil supply fell in April due to US sanctions on Iran tightened and OPEC+ production cuts.

The IEA said Iranian crude production fell in April to 2.6 million bpd, down from 3.9 million before Washington announced in May 2018 it would withdraw from the 2015 Iran nuclear deal and re-impose sanctions.

Iran's output is already at its lowest level in over five years but could tumble in May to levels not seen since the devastating 1980-1988 Iran-Iraq war.

Energy intelligence firm Kpler sees Iranian exports plunging from 1.4 million bpd in April to around half a million barrels in May -- down from 2.5 million in normal circumstances.

Venezuela's output is also tumbling, down by over half since the third quarter of last year.

Kpler data shows OPEC+ members have kept to agreed production cuts.

But exporters fear a rush to raise production to plug the gap left by Iranian exports could backfire, triggering a new supply glut.&nbsp;

Gulf tensions

Sunday's meeting comes amid soaring Gulf tensions after the mysterious sabotage of several tankers off the Emirati coast and drone attacks, claimed by Iran-aligned Yemen rebels, which shut a key Saudi crude pipeline.

Both attacks targeted routes built as alternatives to the Strait of Hormuz, the conduit for almost all Gulf exports.

Iran has repeatedly threatened to close the Strait in case of war with the US, which said this month it was sending an aircraft carrier and strike group to the region.

Saudi Arabia accused Iran of ordering the pipeline attacks, targeting "the security of oil supplies... and the global economy".

Saudi foreign affairs minister Adel al-Jubeir said Sunday his country does not want war with Iran, but was ready to defend its interests.

Riyadh "does not want a war, is not looking for it and will do everything to prevent it", he told journalists in Riyadh.

Saudi Arabia called Saturday for urgent meetings of the Gulf Cooperation Council and the Arab League to discuss escalating tensions, government news agency SPA said.

It also said Crown Prince Mohammed bin Salman had spoken with US Secretary of State Mike Pompeo about enhancing security in the region.&nbsp;

Saudi Energy Minister Khalid al-Falih said last month the kingdom was ready to boost supplies in case of any shortage due to the Iran embargo.

That is likely to infuriate Iran and raise questions over the future of OPEC, of which Iran is an influential member.&nbsp;

Iranian Oil Minister Bijan Namdar Zanganeh has said Washington's stated aim of bringing Iran's oil exports "to zero" was "an illusion".

Major crude producers are set to meet Sunday to discuss how to stabilise a volatile oil market amid rising US-Iran tensions in the Gulf, which threaten to disrupt supply.

Major crude producers are set to meet Sunday to discuss how to stabilise a volatile oil market amid rising US-Iran tensions in the Gulf, which threaten to disrupt supply. Key OPEC members and other major suppliers including Russia will assess the oil market and examine compliance to production cuts agreed late last year. But the subject of Iran, which is not present, will dominate the one-day meeting of the OPEC+ group. It comes days after sabotage attacks against tankers in highly sensitive Gulf waters and the bombing of a Saudi pipeline by Iran-aligned Yemen rebels. The meeting also comes as the full impact of re-instated US sanctions against Tehran kicks in, slashing the Islamic Republic's crude exports. Hours before the meeting in Jeddah, host Saudi Arabia said it does not seek war with Iran but is ready to defend its interests. The meeting is set to make recommendations ahead of a key OPEC summit in late June, to be attended by Iran. President Donald Trump said last month Saudi Arabia and other OPEC members had agreed to his request to boost oil production in order to tamp down rising prices. Massive drops in exports by Iran and Venezuela plus output cuts of 1.2 million barrels per day, implemented by the OPEC+ group since January, have cut supply. But UAE Energy Minister Suheil al-Mazrouei said inventories were still building up. He told reporters Saturday that the job of balancing the market was not yet complete, a hint that any ramp-up in production could send prices crashing as they did in late 2018. Iran exports tumble OPEC and the International Energy Agency said earlier this month that global oil supply fell in April due to US sanctions on Iran tightened and OPEC+ production cuts. The IEA said Iranian crude production fell in April to 2.6 million bpd, down from 3.9 million before Washington announced in May 2018 it would withdraw from the 2015 Iran nuclear deal and re-impose sanctions. Iran's output is already at its lowest level in over five years but could tumble in May to levels not seen since the devastating 1980-1988 Iran-Iraq war. Energy intelligence firm Kpler sees Iranian exports plunging from 1.4 million bpd in April to around half a million barrels in May -- down from 2.5 million in normal circumstances. Venezuela's output is also tumbling, down by over half since the third quarter of last year. Kpler data shows OPEC+ members have kept to agreed production cuts. But exporters fear a rush to raise production to plug the gap left by Iranian exports could backfire, triggering a new supply glut. Gulf tensions Sunday's meeting comes amid soaring Gulf tensions after the mysterious sabotage of several tankers off the Emirati coast and drone attacks, claimed by Iran-aligned Yemen rebels, which shut a key Saudi crude pipeline. Both attacks targeted routes built as alternatives to the Strait of Hormuz, the conduit for almost all Gulf exports. Iran has repeatedly threatened to close the Strait in case of war with the US, which said this month it was sending an aircraft carrier and strike group to the region. Saudi Arabia accused Iran of ordering the pipeline attacks, targeting "the security of oil supplies... and the global economy". Saudi foreign affairs minister Adel al-Jubeir said Sunday his country does not want war with Iran, but was ready to defend its interests. Riyadh "does not want a war, is not looking for it and will do everything to prevent it", he told journalists in Riyadh. Saudi Arabia called Saturday for urgent meetings of the Gulf Cooperation Council and the Arab League to discuss escalating tensions, government news agency SPA said. It also said Crown Prince Mohammed bin Salman had spoken with US Secretary of State Mike Pompeo about enhancing security in the region. Saudi Energy Minister Khalid al-Falih said last month the kingdom was ready to boost supplies in case of any shortage due to the Iran embargo. That is likely to infuriate Iran and raise questions over the future of OPEC, of which Iran is an influential member. Iranian Oil Minister Bijan Namdar Zanganeh has said Washington's stated aim of bringing Iran's oil exports "to zero" was "an illusion".

Oil producers meet to discuss output amid Iran tension

Saudi Arabia's Energy Minister Khalid al-Falih said on Saturday that OPEC will be responsive to the oil market's needs, but that he was not sure there is an oil shortage with data, particularly from the United States, still showing inventories building.

Speaking in Jeddah ahead of a ministerial panel gathering on Sunday by top OPEC and non-OPEC producers, including Saudi Arabia and Russia, Falih told Reuters OPEC will not decide on output until late June when the group is due to meet.

The Organization of the Petroleum Exporting Countries (OPEC), Russia and other non-OPEC producers have agreed to reduce output by 1.2 million barrels per day (bpd) from Jan. 1 for six months, a deal designed to stop inventories building up and weakening prices.

"We will be flexible. We are going to do the right thing as we always do," Falih said of any decision at the meeting in June on continuing the reductions.

Falih said OPEC is guided by two main principles: "One to keep the market in its direction towards balancing and inventories back to normal level. And two to be responsive to market needs. We will strike the right balance I am sure."

OPEC's agreed share of the cuts is 800,000 bpd, but its actual reduction is far larger due to the production losses in Iran and Venezuela. Both are under US sanctions and exempt from the voluntary reductions under the OPEC-led deal.

US President Donald Trump has called on OPEC and the group's de facto leader, Saudi Arabia, and asked them to lower oil prices. Riyadh, however, is reluctant to boost supply quickly and risk a price crash.

Sunday's ministerial panel meeting, known as the JMMC, comes amid concerns of a tight market as Iran's oil exports are likely to drop further in May, and shipments from Venezuela could fall more in coming weeks due to the sanctions by Washington.&nbsp;

Oil contamination also forced Russia to halt flows along the Druzhba pipeline - a key conduit for crude into Eastern Europe and Germany - in April. The suspension, as yet of unclear duration, left refiners scrambling to find supplies.

"I am not sure there is a supply shortage, but we will look at the (market) analysis. We will definitely be responsive and the market will be supplied," Falih said.

"All indications are that inventories are still rising. We saw the data from the US week after week, and they are massive increases, so obviously (there is) supply abundance."

US crude inventories rose unexpectedly last week to their highest since September 2017, while gasoline stockpiles decreased more than forecast, the Energy Information Administration (EIA) said on Wednesday.

An OPEC and the non-OPEC technical committee found that oil producers' compliance with the supply-reduction agreement reached 168% in April, three sources told Reuters on Saturday.

The committee known as the JTC met ahead of the JMMC gathering to discuss the oil markets.

Saudi Arabia's Energy Minister Khalid al-Falih said on Saturday that OPEC will be responsive to the oil market's needs, but that he was not sure there is an oil shortage with data, particularly from the United States, still showing inventories building.

Saudi Arabia's Energy Minister Khalid al-Falih said on Saturday that OPEC will be responsive to the oil market's needs, but that he was not sure there is an oil shortage with data, particularly from the United States, still showing inventories building. Speaking in Jeddah ahead of a ministerial panel gathering on Sunday by top OPEC and non-OPEC producers, including Saudi Arabia and Russia, Falih told Reuters OPEC will not decide on output until late June when the group is due to meet. The Organization of the Petroleum Exporting Countries (OPEC), Russia and other non-OPEC producers have agreed to reduce output by 1.2 million barrels per day (bpd) from Jan. 1 for six months, a deal designed to stop inventories building up and weakening prices. "We will be flexible. We are going to do the right thing as we always do," Falih said of any decision at the meeting in June on continuing the reductions. Falih said OPEC is guided by two main principles: "One to keep the market in its direction towards balancing and inventories back to normal level. And two to be responsive to market needs. We will strike the right balance I am sure." OPEC's agreed share of the cuts is 800,000 bpd, but its actual reduction is far larger due to the production losses in Iran and Venezuela. Both are under US sanctions and exempt from the voluntary reductions under the OPEC-led deal. US President Donald Trump has called on OPEC and the group's de facto leader, Saudi Arabia, and asked them to lower oil prices. Riyadh, however, is reluctant to boost supply quickly and risk a price crash. Sunday's ministerial panel meeting, known as the JMMC, comes amid concerns of a tight market as Iran's oil exports are likely to drop further in May, and shipments from Venezuela could fall more in coming weeks due to the sanctions by Washington. Oil contamination also forced Russia to halt flows along the Druzhba pipeline - a key conduit for crude into Eastern Europe and Germany - in April. The suspension, as yet of unclear duration, left refiners scrambling to find supplies. "I am not sure there is a supply shortage, but we will look at the (market) analysis. We will definitely be responsive and the market will be supplied," Falih said. "All indications are that inventories are still rising. We saw the data from the US week after week, and they are massive increases, so obviously (there is) supply abundance." US crude inventories rose unexpectedly last week to their highest since September 2017, while gasoline stockpiles decreased more than forecast, the Energy Information Administration (EIA) said on Wednesday. An OPEC and the non-OPEC technical committee found that oil producers' compliance with the supply-reduction agreement reached 168% in April, three sources told Reuters on Saturday. The committee known as the JTC met ahead of the JMMC gathering to discuss the oil markets.

Oil stocks still building, but OPEC to act if needed: Saudi Arabia's Energy Minister

Oil prices dropped on Thursday amid concerns over the <a href="https://www.wionews.com/world/trump-says-he-would-be-happy-to-keep-tariffs-on-chinese-imports-in-place-217051">escalating trade battle between the United States and China</a>, despite a surprise fall in US crude stockpiles.

Brent crude oil futures were at $69.92 a barrel by 0102 GMT, down 44 cents, or 0.63 per cent, from their previous settlement.

US West Texas Intermediate (WTI) crude futures were at $61.67 per barrel, down 45 cents, or 0.72 per cent, from their last close.

The Sino-US&nbsp;trade war has weighed on oil prices this week as heightened tensions between the world's two biggest economies could the global economic outlook.

US&nbsp;President Donald Trump said on Wednesday that China "broke the deal" in trade talks with Washington and would face stiff tariffs if no agreement is reached.

Higher tariffs are set to take effect on Friday, during Chinese Vice Premier Liu He's two-day visit to Washington from Thursday.

Despite this, oil prices have been supported by signs of tighter global supply on the back of production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia. Both benchmarks have risen more than 30 per cent so far this year.

Global supply has also been tightened by US sanctions on OPEC members Venezuela and Iran.

"From a fundamental point of view, OPEC supply discipline is still in check, and US supplies show tighter markets than expected while Asia demand is still robust," said Stephen Innes head of trading at SPI Asset Management.

"All of which suggests once the trade war-induced sell-offs abate conditions could settle themselves quickly," Innes said.

In a sign that Asia demand remains firm, China's crude imports in April hit a record for the month, at 10.6 million barrels per day (bpd), customs data showed on Wednesday. China is the world's biggest oil importer.

An unexpected drop in US crude inventories kept oil price declines in check. US crude inventories fell by 4 million barrels in the week to May 3, the Energy Information Administration said on Wednesday.

Oil prices dropped on Thursday amid concerns over the escalating trade battle between the United States and China, despite a surprise fall in US crude stockpiles.

Oil prices dropped on Thursday amid concerns over the escalating trade battle between the United States and China, despite a surprise fall in US crude stockpiles. Brent crude oil futures were at $69.92 a barrel by 0102 GMT, down 44 cents, or 0.63 per cent, from their previous settlement. US West Texas Intermediate (WTI) crude futures were at $61.67 per barrel, down 45 cents, or 0.72 per cent, from their last close. The Sino-US trade war has weighed on oil prices this week as heightened tensions between the world's two biggest economies could the global economic outlook. US President Donald Trump said on Wednesday that China "broke the deal" in trade talks with Washington and would face stiff tariffs if no agreement is reached. Higher tariffs are set to take effect on Friday, during Chinese Vice Premier Liu He's two-day visit to Washington from Thursday. Despite this, oil prices have been supported by signs of tighter global supply on the back of production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia. Both benchmarks have risen more than 30 per cent so far this year. Global supply has also been tightened by US sanctions on OPEC members Venezuela and Iran. "From a fundamental point of view, OPEC supply discipline is still in check, and US supplies show tighter markets than expected while Asia demand is still robust," said Stephen Innes head of trading at SPI Asset Management. "All of which suggests once the trade war-induced sell-offs abate conditions could settle themselves quickly," Innes said. In a sign that Asia demand remains firm, China's crude imports in April hit a record for the month, at 10.6 million barrels per day (bpd), customs data showed on Wednesday. China is the world's biggest oil importer. An unexpected drop in US crude inventories kept oil price declines in check. US crude inventories fell by 4 million barrels in the week to May 3, the Energy Information Administration said on Wednesday.

Oil falls on trade dispute despite surprise drop in US crude inventories

Oil prices were under pressure on Tuesday from concerns the escalating <a href="https://www.wionews.com/world/us-china-reneged-on-trade-commitments-sparking-trump-tariff-hike-216534">China-US&nbsp;trade dispute</a> could slow the global economy, while US&nbsp;sanctions on crude exporters Iran and Venezuela helped keep the market on edge.

Brent crude oil futures were at $71.09 per barrel at 0341 GMT, 15 cents, or 0.2 per cent, below their last close.

US&nbsp;West Texas Intermediate (WTI) crude futures were at $62.20 per barrel, 5 cents below their last settlement.

Analysts said there were a number of factors driving oil prices.

One is a concern that <a href="https://www.wionews.com/india-news/working-with-saudi-arabia-uae-to-ensure-oil-supplies-to-india-us-216447">global economic growth</a> is threatened by the intensifying trade dispute between the United States and China.

Talks between the world's two biggest economies hit a wall over the weekend, when US&nbsp;President Donald Trump announced a raft of new import tariffs on Chinese goods.

"US-China trade tensions are set to be at the forefront of the market's collective mind this week, as any nuance out of discussions in Washington could trigger knee-jerk moves by traders," said Han Tan, analyst at futures brokerage FXTM.

Tanker brokerage Eastport said in a note that "worsening trade friction between Washington and Beijing poses a downside risk to our forecasts" for petroleum products.

On the supply-side, oil markets remain tense as the United States tightens sanctions on Iranian oil exports, saying on Monday it was boosting its military presence in the Middle East.

Iran has threatened "reciprocal actions" against US&nbsp;sanctions, which could mean restarting some of its nuclear programme.

The US&nbsp;sanctions have already halved Iranian crude oil exports over the past year to below 1 million barrels per day (bpd), and shipments to customers are expected to drop as low as 500,000 bpd in May as sanctions tighten.

Beyond Iran, the crisis in Venezuela has also disrupted oil supplies from this OPEC member, with Washington placing oil sanctions on the Venezuelan government under President Nicolas Maduro.

"As the White House raises the stakes on Iran and Venezuela, what is the oil endgame?" asked Bank of America Merrill Lynch in a note.

"The Venezuelan political situation seems untenable but oil exports could continue to contract until the industry receives a capital injection, a dim prospect for now," the bank said.

"In addition ... Iran oil exports could collapse further over the coming months. While America's maximum pressure policy on these two regimes may pay off, additional oil supply losses cannot be ruled out," it added.

Bank of America said it expected Saudi Arabia "to bring back oil production slowly as Iranian barrels exit the market", adding that overall it saw Brent crude oil prices having a floor at $70 per barrel in current market conditions.

Oil prices were under pressure on Tuesday from concerns the escalating China-US trade dispute could slow the global economy, while US sanctions on crude exporters Iran and Venezuela helped keep the market on edge.

Oil prices were under pressure on Tuesday from concerns the escalating China-US trade dispute could slow the global economy, while US sanctions on crude exporters Iran and Venezuela helped keep the market on edge. Brent crude oil futures were at $71.09 per barrel at 0341 GMT, 15 cents, or 0.2 per cent, below their last close. US West Texas Intermediate (WTI) crude futures were at $62.20 per barrel, 5 cents below their last settlement. Analysts said there were a number of factors driving oil prices. One is a concern that global economic growth is threatened by the intensifying trade dispute between the United States and China. Talks between the world's two biggest economies hit a wall over the weekend, when US President Donald Trump announced a raft of new import tariffs on Chinese goods. "US-China trade tensions are set to be at the forefront of the market's collective mind this week, as any nuance out of discussions in Washington could trigger knee-jerk moves by traders," said Han Tan, analyst at futures brokerage FXTM. Tanker brokerage Eastport said in a note that "worsening trade friction between Washington and Beijing poses a downside risk to our forecasts" for petroleum products. On the supply-side, oil markets remain tense as the United States tightens sanctions on Iranian oil exports, saying on Monday it was boosting its military presence in the Middle East. Iran has threatened "reciprocal actions" against US sanctions, which could mean restarting some of its nuclear programme. The US sanctions have already halved Iranian crude oil exports over the past year to below 1 million barrels per day (bpd), and shipments to customers are expected to drop as low as 500,000 bpd in May as sanctions tighten. Beyond Iran, the crisis in Venezuela has also disrupted oil supplies from this OPEC member, with Washington placing oil sanctions on the Venezuelan government under President Nicolas Maduro. "As the White House raises the stakes on Iran and Venezuela, what is the oil endgame?" asked Bank of America Merrill Lynch in a note. "The Venezuelan political situation seems untenable but oil exports could continue to contract until the industry receives a capital injection, a dim prospect for now," the bank said. "In addition ... Iran oil exports could collapse further over the coming months. While America's maximum pressure policy on these two regimes may pay off, additional oil supply losses cannot be ruled out," it added. Bank of America said it expected Saudi Arabia "to bring back oil production slowly as Iranian barrels exit the market", adding that overall it saw Brent crude oil prices having a floor at $70 per barrel in current market conditions.

International oil prices dip over China-US trade dispute, Iran sanctions

The United States in January imposed sanctions on Venezuela`s most important global business - producing and selling crude oil - as the Trump administration ratcheted up its bid to force socialist president <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/nicolas-maduro-open-to-adopt-a-plan-to-improve-venezuelas-condition-215356&amp;sa=U&amp;ved=2ahUKEwjGzNnJqf_hAhWBP48KHQdCBdIQFjABegQIDhAC&amp;usg=AOvVaw1hep1ar9q0MLcZH_pYf5d8">Nicolas Maduro </a>out of power.&nbsp;

Venezuela`s oil exports - accounting for more than 95 per cent of the country`s export revenue - have dropped by some 40 per cent since January.

At the same time, it has been unable to import all the fuel it needs for blending with its heavy crude, as well as for domestic consumption.&nbsp;

The United States and many Western governments have recognised Venezuelan opposition leader Juan Guaido as the country`s rightful head of state.

However, Maduro remains in power for now.

HOW MUCH OIL IS VENEZUELA CURRENTLY PRODUCING?&nbsp;

<a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/oil-pares-gains-as-fears-ease-on-venezuelan-exports-214929&amp;sa=U&amp;ved=2ahUKEwjMyszcqf_hAhXFknAKHeidBOkQFjACegQIDxAC&amp;usg=AOvVaw0w3SHSB1uQpVt91dGVLYzy">Venezuela`s crude production </a>was between 732,000 and 960,000 barrels per day (bpd) in March, according to self-reported figures and secondary sources quoted by the Organisation of the Petroleum Exporting Countries (OPEC) in its April oil market report.

That compared to the output of 3 million bpd at the turn of the century.&nbsp;

HOW MUCH CRUDE AND REFINED PRODUCTS IS IT EXPORTING?&nbsp;

Venezuela exported about 1.06 million bpd of crude and refined products in April, up slightly from 980,000 bpd in March, according to data from Refinitiv Eikon.

Exports sank 40 per cent in February, the first full month after the sanctions were imposed.

WHERE IS THAT OIL GOING?&nbsp;

The United States, India and China were Venezuela`s biggest customers prior to sanctions, with the United States the biggest cash buyer.&nbsp;

India and China have accounted for most of Venezuela`s crude exports since sanctions took effect.

Europe has also absorbed more.

Last month, more Venezuelan crude cargoes headed to China, and fewer cargoes were steaming toward India, Refinitiv Eikon data show.

Cuba remains a notable destination as well.

WHAT ABOUT US IMPORTS?

US&nbsp;imports of Venezuelan crude have collapsed to zero in the wake of sanctions.

However, 186,000 bpd was imported in the week ended April 26 - a signal, traders said, that companies were taking the last shipments allowed in a wind-down period that ended April 28.&nbsp;

In the week ended Jan. 25, just before sanctions were announced, US&nbsp;refineries imported 587,000 bpd.&nbsp;

WHY IS VENEZUELAN CRUDE SO IMPORTANT?&nbsp;

Heavy crude supplies of the kind Venezuela pumps are constrained worldwide.

Large producers, such as Canada and Mexico, are unable to lift exports to replace the lost barrels and smaller producers, including Colombia and Ecuador, simply do not pump enough to ease the global shortfall.&nbsp;

Complex US Gulf Coast refiners use heavy crude as part of a mix to create high-margin distillate products.

WHO WERE THE BIGGEST US CUSTOMERS?&nbsp;

US&nbsp;refiner Citgo Petroleum, a subsidiary of Venezuela`s state-run oil firm PDVSA, imported more than 175,800 bpd of Venezuelan oil in 2018, according to Refinitiv Eikon.&nbsp;

It was followed by Valero Energy Corp, which imported about 166,000 bpd last year, and oil major Chevron Corp, with about 83,000 bpd.&nbsp;

WHERE ARE US REFINERS FINDING REPLACEMENT BARRELS?&nbsp;

Chevron, Valero and Citgo have turned to producers of heavy crude in Colombia, Iraq, Saudi Arabia and Canada, as well as sour grades produced in the US&nbsp;Gulf Coast by BP PLC and Royal Dutch Shell PLC, traders and brokers said.

Valero has said it has used domestic blends, Canadian crude and a mix of other grades, including crude from Brazil.

The US&nbsp;refiners have also secured cruder from West Africa as a replacement, traders said.&nbsp;

WHAT WILL IT TAKE TO REPAIR THE VENEZUELAN OIL INDUSTRY?

Venezuela might open its oil industry to foreign investment and limit the role of PDVSA, which currently controls all joint ventures in the OPEC-member nation, said Ricardo Hausmann, Guaido`s representative before the Inter-American Development Bank.

WHAT ELSE IS VENEZUELA EXPORTING?&nbsp;

Venezuela has stepped up shipments of gold to other countries, sending more than $900 million to Turkey in 2018, according to Turkish government data and trade reports.&nbsp;

Caracas is using some proceeds from those sales to buy Turkish consumer goods, according to opposition legislator Carlos Paparoni.

Turkish pasta and powdered milk are now staples in Maduro`s subsidized food program.

Trade between the two nations grew eightfold last year.&nbsp;

The United States in January imposed sanctions on Venezuela`s most important global business - producing and selling crude oil - as the Trump administration ratcheted up its bid to force socialist president Nicolas Maduro out of power.

The United States in January imposed sanctions on Venezuela`s most important global business - producing and selling crude oil - as the Trump administration ratcheted up its bid to force socialist president Nicolas Maduro out of power. Venezuela`s oil exports - accounting for more than 95 per cent of the country`s export revenue - have dropped by some 40 per cent since January. At the same time, it has been unable to import all the fuel it needs for blending with its heavy crude, as well as for domestic consumption. The United States and many Western governments have recognised Venezuelan opposition leader Juan Guaido as the country`s rightful head of state. However, Maduro remains in power for now. HOW MUCH OIL IS VENEZUELA CURRENTLY PRODUCING? Venezuela`s crude production was between 732,000 and 960,000 barrels per day (bpd) in March, according to self-reported figures and secondary sources quoted by the Organisation of the Petroleum Exporting Countries (OPEC) in its April oil market report. That compared to the output of 3 million bpd at the turn of the century. HOW MUCH CRUDE AND REFINED PRODUCTS IS IT EXPORTING? Venezuela exported about 1.06 million bpd of crude and refined products in April, up slightly from 980,000 bpd in March, according to data from Refinitiv Eikon. Exports sank 40 per cent in February, the first full month after the sanctions were imposed. WHERE IS THAT OIL GOING? The United States, India and China were Venezuela`s biggest customers prior to sanctions, with the United States the biggest cash buyer. India and China have accounted for most of Venezuela`s crude exports since sanctions took effect. Europe has also absorbed more. Last month, more Venezuelan crude cargoes headed to China, and fewer cargoes were steaming toward India, Refinitiv Eikon data show. Cuba remains a notable destination as well. WHAT ABOUT US IMPORTS? US imports of Venezuelan crude have collapsed to zero in the wake of sanctions. However, 186,000 bpd was imported in the week ended April 26 - a signal, traders said, that companies were taking the last shipments allowed in a wind-down period that ended April 28. In the week ended Jan. 25, just before sanctions were announced, US refineries imported 587,000 bpd. WHY IS VENEZUELAN CRUDE SO IMPORTANT? Heavy crude supplies of the kind Venezuela pumps are constrained worldwide. Large producers, such as Canada and Mexico, are unable to lift exports to replace the lost barrels and smaller producers, including Colombia and Ecuador, simply do not pump enough to ease the global shortfall. Complex US Gulf Coast refiners use heavy crude as part of a mix to create high-margin distillate products. WHO WERE THE BIGGEST US CUSTOMERS? US refiner Citgo Petroleum, a subsidiary of Venezuela`s state-run oil firm PDVSA, imported more than 175,800 bpd of Venezuelan oil in 2018, according to Refinitiv Eikon. It was followed by Valero Energy Corp, which imported about 166,000 bpd last year, and oil major Chevron Corp, with about 83,000 bpd. WHERE ARE US REFINERS FINDING REPLACEMENT BARRELS? Chevron, Valero and Citgo have turned to producers of heavy crude in Colombia, Iraq, Saudi Arabia and Canada, as well as sour grades produced in the US Gulf Coast by BP PLC and Royal Dutch Shell PLC, traders and brokers said. Valero has said it has used domestic blends, Canadian crude and a mix of other grades, including crude from Brazil. The US refiners have also secured cruder from West Africa as a replacement, traders said. WHAT WILL IT TAKE TO REPAIR THE VENEZUELAN OIL INDUSTRY? Venezuela might open its oil industry to foreign investment and limit the role of PDVSA, which currently controls all joint ventures in the OPEC-member nation, said Ricardo Hausmann, Guaido`s representative before the Inter-American Development Bank. WHAT ELSE IS VENEZUELA EXPORTING? Venezuela has stepped up shipments of gold to other countries, sending more than $900 million to Turkey in 2018, according to Turkish government data and trade reports. Caracas is using some proceeds from those sales to buy Turkish consumer goods, according to opposition legislator Carlos Paparoni. Turkish pasta and powdered milk are now staples in Maduro`s subsidized food program. Trade between the two nations grew eightfold last year.

Explainer: US sanctions and Venezuela's exports and imports

Outside the United States, however, oil markets remained tense as exemptions to US sanctions on Iran expired, a political crisis in Venezuela escalates, and as producer club OPEC keeps withholding supply.

Spot Brent crude oil futures were at $71.91 per barrel at 0239 GMT, 27 cents, or 0.4 per cent, below their last close.

US West Texas Intermediate (WTI) crude futures were down 19 cents, or 0.3 per cent, at $63.41 per barrel.

"Crude oil prices fell sharply as stockpiles in the US rose to their highest level since 2017," ANZ bank said on Thursday.

"This comes as US refineries head into the spring maintenance period, stoking fears that crude oil demand will be soft and stockpiles will continue to rise," it added.

US crude stockpiles last week rose to their highest since September 2017, jumping by 9.9 million barrels to 470.6 barrels, as production set a record high of 12.3 million barrels per day (bpd), while refining activity rates fell, the Energy Information Administration (EIA) said on Wednesday.

Outside the United States, however, oil markets remained tight amid the political crisis in Venezuela, tighter US sanctions against Iran that allow no more exemptions from May, and as the Organization of the Petroleum Exporting Countries (OPEC) continues to withhold supply in order to prop up prices.

Oman's energy minister Mohammed bin Hamad al-Rumhy said on Wednesday it was OPEC's goal to extend the cuts, which were started in January, when they next meet in June.

Despite the desire of many OPEC members to keep withholding supply to prop up the market, the group may be forced into action.

"The Venezuelan situation will likely loom large in OPEC deliberations as ministers weigh how many additional barrels may be needed to fill an expanding supply gap that is being driven by geopolitics as opposed to geology," Canadian bank RBC Capital Markets said.

Beyond Venezuela, analysts at Fitch Solutions also warned of risks to supply from Libya, where a civil war is threatening to cut oil fields off from markets.

The risks here are not inconsiderable, in light of rising instability in a number of key producers, notably Libya and Venezuela," Fitch Solutions said.

For producers, the tight market conditions mean higher profits.

Analysts at Bernstein Energy said current price levels reflected the average marginal cost for most listed oil producers.

"We have surveyed the 50 largest listed oil and gas companies globally... Based on 2018 annual reports we estimate that the global marginal cost of oil remained stable at $71 per barrel," Bernstein said in a note on Thursday.

"This is in&nbsp;line with current spot prices but higher than the long-term oil forward strip price of $61 per barrel," the note said.

"With oil prices rising more than costs, industry margins increased by more than 200 per cent in 2018," Bernstein said, resulting in industry profitability "at the highest in the last 5 years."

Outside the United States, however, oil markets remained tense as exemptions to US sanctions on Iran expired, a political crisis in Venezuela escalates, and as producer club OPEC keeps withholding supply.

Outside the United States, however, oil markets remained tense as exemptions to US sanctions on Iran expired, a political crisis in Venezuela escalates, and as producer club OPEC keeps withholding supply. Spot Brent crude oil futures were at $71.91 per barrel at 0239 GMT, 27 cents, or 0.4 per cent, below their last close. US West Texas Intermediate (WTI) crude futures were down 19 cents, or 0.3 per cent, at $63.41 per barrel. "Crude oil prices fell sharply as stockpiles in the US rose to their highest level since 2017," ANZ bank said on Thursday. "This comes as US refineries head into the spring maintenance period, stoking fears that crude oil demand will be soft and stockpiles will continue to rise," it added. US crude stockpiles last week rose to their highest since September 2017, jumping by 9.9 million barrels to 470.6 barrels, as production set a record high of 12.3 million barrels per day (bpd), while refining activity rates fell, the Energy Information Administration (EIA) said on Wednesday. Outside the United States, however, oil markets remained tight amid the political crisis in Venezuela, tighter US sanctions against Iran that allow no more exemptions from May, and as the Organization of the Petroleum Exporting Countries (OPEC) continues to withhold supply in order to prop up prices. Oman's energy minister Mohammed bin Hamad al-Rumhy said on Wednesday it was OPEC's goal to extend the cuts, which were started in January, when they next meet in June. Despite the desire of many OPEC members to keep withholding supply to prop up the market, the group may be forced into action. "The Venezuelan situation will likely loom large in OPEC deliberations as ministers weigh how many additional barrels may be needed to fill an expanding supply gap that is being driven by geopolitics as opposed to geology," Canadian bank RBC Capital Markets said. Beyond Venezuela, analysts at Fitch Solutions also warned of risks to supply from Libya, where a civil war is threatening to cut oil fields off from markets. The risks here are not inconsiderable, in light of rising instability in a number of key producers, notably Libya and Venezuela," Fitch Solutions said. For producers, the tight market conditions mean higher profits. Analysts at Bernstein Energy said current price levels reflected the average marginal cost for most listed oil producers. "We have surveyed the 50 largest listed oil and gas companies globally... Based on 2018 annual reports we estimate that the global marginal cost of oil remained stable at $71 per barrel," Bernstein said in a note on Thursday. "This is in line with current spot prices but higher than the long-term oil forward strip price of $61 per barrel," the note said. "With oil prices rising more than costs, industry margins increased by more than 200 per cent in 2018," Bernstein said, resulting in industry profitability "at the highest in the last 5 years."

Oil prices dip on record US output as Iran oil exemption ends

The growth of eight core sectors improved marginally to 4.7 per cent in March 2019 against 4.5 per cent in the same month last year.

For the full 2018-19 fiscal, the expansion rate of eight infrastructure sectors - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - remained flat at 4.3 per cent, official data released Tuesday showed.

Coal generation growth was flat at 9.1 per cent in March 2019. Natural gas, refinery products, fertiliser, steel and cement sectors recorded positive growth rates.&nbsp;

Crude oil production, however, contracted by 6.2 per cent in March. Electricity generation declined by 1.4 per cent during the month under review.

A fall in production of crude oil and refinery products had dragged the growth of the eight core sectors to 2.1 per cent in February.&nbsp;

The infrastructure sector growth will also have an impact on the Index of Industrial Production (IIP) as these segments account for about 41 per cent of the total factory output.

The growth of eight core sectors improved marginally to 4.7 per cent in March 2019 against 4.5 per cent in the same month last year. For the full 2018-19 fiscal, the expansion rate of eight infrastructure sectors - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - remained flat at 4.

The growth of eight core sectors improved marginally to 4.7 per cent in March 2019 against 4.5 per cent in the same month last year. For the full 2018-19 fiscal, the expansion rate of eight infrastructure sectors - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - remained flat at 4.3 per cent, official data released Tuesday showed. Coal generation growth was flat at 9.1 per cent in March 2019. Natural gas, refinery products, fertiliser, steel and cement sectors recorded positive growth rates. Crude oil production, however, contracted by 6.2 per cent in March. Electricity generation declined by 1.4 per cent during the month under review. A fall in production of crude oil and refinery products had dragged the growth of the eight core sectors to 2.1 per cent in February. The infrastructure sector growth will also have an impact on the Index of Industrial Production (IIP) as these segments account for about 41 per cent of the total factory output.

Infrastructure sector growth improves to 4.7% in March

Iraq is ready to boost oil exports by 250,000 barrels a day to compensate for any shortfalls once US sanctions waivers for Iranian oil end, a government official said Monday.

The US last year reimposed tough sanctions against Iran's energy sector but granted select countries six-month waivers to continue importing oil products from Tehran.

Those exemptions will end in early May, the White House announced on Monday.

US President Donald Trump said that Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries (OPEC) would "more than make up" the resulting difference in the oil supply.

Iraq, the cartel's second-largest producer, has the capacity to increase its crude oil exports, a top government official told AFP on Monday.

"We are ready to export another quarter-million barrels daily. The market's needs will become clearer in the coming days," he said.

The official did not say whether Iraq had already discussed the increase with OPEC or with the United States.

The countries that had received exemptions in November were China, India, Japan, South Korea, Turkey, Italy, Greece and Taiwan.

Iraq received a separate waiver that would allow it to continue importing Iranian gas and electricity, crucial to stop up the widespread power shortages in Iraq.&nbsp;

That initial exemption has been extended twice, and is set to end in June.

Iraq last month exported just under 3.4 million barrels per day, after having agreed last year to trim production alongside other producers so that prices would go up.&nbsp;

Oil prices hit a five-month high earlier this month at more than $70 per barrel.&nbsp;

Iraq is ready to boost oil exports by 250,000 barrels a day to compensate for any shortfalls once US sanctions waivers for Iranian oil end, a government official said Monday.

Iraq is ready to boost oil exports by 250,000 barrels a day to compensate for any shortfalls once US sanctions waivers for Iranian oil end, a government official said Monday. The US last year reimposed tough sanctions against Iran's energy sector but granted select countries six-month waivers to continue importing oil products from Tehran. Those exemptions will end in early May, the White House announced on Monday. US President Donald Trump said that Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries (OPEC) would "more than make up" the resulting difference in the oil supply. Iraq, the cartel's second-largest producer, has the capacity to increase its crude oil exports, a top government official told AFP on Monday. "We are ready to export another quarter-million barrels daily. The market's needs will become clearer in the coming days," he said. The official did not say whether Iraq had already discussed the increase with OPEC or with the United States. The countries that had received exemptions in November were China, India, Japan, South Korea, Turkey, Italy, Greece and Taiwan. Iraq received a separate waiver that would allow it to continue importing Iranian gas and electricity, crucial to stop up the widespread power shortages in Iraq. That initial exemption has been extended twice, and is set to end in June. Iraq last month exported just under 3.4 million barrels per day, after having agreed last year to trim production alongside other producers so that prices would go up. Oil prices hit a five-month high earlier this month at more than $70 per barrel.

Iraq 'ready' to boost crude exports after Iran waivers end

A delegation from the world's largest crude oil producer, Saudi Aramco, is in <a href="https://www.google.com/url?q=https://www.wionews.com/opinions/great-game-ii-india-pakistan-china-gas-pipeline-powered-by-russia-cannot-be-discounted-196820&amp;sa=U&amp;ved=0ahUKEwjR8cOX1MzhAhUcknAKHaY5CYAQFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw1moi2pnTe5zLRpET70Ecmk">Pakistan</a> for discussions on what would be its first-ever <a href="https://www.google.com/url?q=https://www.wionews.com/south-asia/pakistan-expects-eight-investment-deals-during-saudi-princes-visit-197230&amp;sa=U&amp;ved=0ahUKEwjR8cOX1MzhAhUcknAKHaY5CYAQFggIMAE&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw3Cd9x7g5326V3FX2QJ8oWo">liquefied natural gas </a>(LNG) shipments, a top Pakistani official said on Friday.

Pakistan is facing an energy crisis with repeated power blackouts and gas supply outages that led to the sacking of the heads of two of its main gas distribution utilities in January.

The Saudi delegation, which arrived on Thursday, was discussing LNG supplies, Nadeem Babar, the head of Prime Minister Imran Khan's task force on energy reforms, told Reuters.

"They're discussing LNG sales. They're entering this business," he said. "Aramco is starting an LNG trade operation, and we are in discussion over all aspects, including terms and quantity, etc."

Aramco doesn't currently produce LNG, and any such sale would be first of its kind. Aramco didn’t immediately respond to a request for comment.

Saudi Aramco Chief Executive Amin Nasser said in February that Saudi Arabia aims to export 3 billion cubic feet per day of gas before 2030 via both pipelines and LNG tankers.

Pakistan's demand for LNG could more than triple in the next three to five years, the chief executive of Pakistan LNG said last month, adding that Islamabad was expected to negotiate a few more long-term contracts to import LNG into the country.

Last year, Pakistan imported nearly 7 tonnes of LNG, data from Refinitiv Eikon shows. This year, that could grow to as high as 15 million tonnes and to up to 25 million to 30 million tonnes over the next three to five years, said Adnan Gilani, managing director and chief executive of Pakistan LNG.

Pakistan LNG is a state-owned company that buys LNG from the international market to supply to the domestic market.

Pakistan's two import terminals have a regas capacity of 1.2 billion to 1.3 billion cubic feet of gas per day, or about 9 million to 10 million tonnes of LNG a year, according to Gilani's presentation at the LNGA 2019 conference in Singapore.

A delegation from the world's largest crude oil producer, Saudi Aramco, is in Pakistan for discussions on what would be its first-ever liquefied natural gas (LNG) shipments, a top Pakistani official said on Friday.

A delegation from the world's largest crude oil producer, Saudi Aramco, is in Pakistan for discussions on what would be its first-ever liquefied natural gas (LNG) shipments, a top Pakistani official said on Friday. Pakistan is facing an energy crisis with repeated power blackouts and gas supply outages that led to the sacking of the heads of two of its main gas distribution utilities in January. The Saudi delegation, which arrived on Thursday, was discussing LNG supplies, Nadeem Babar, the head of Prime Minister Imran Khan's task force on energy reforms, told Reuters. "They're discussing LNG sales. They're entering this business," he said. "Aramco is starting an LNG trade operation, and we are in discussion over all aspects, including terms and quantity, etc." Aramco doesn't currently produce LNG, and any such sale would be first of its kind. Aramco didn’t immediately respond to a request for comment. Saudi Aramco Chief Executive Amin Nasser said in February that Saudi Arabia aims to export 3 billion cubic feet per day of gas before 2030 via both pipelines and LNG tankers. Pakistan's demand for LNG could more than triple in the next three to five years, the chief executive of Pakistan LNG said last month, adding that Islamabad was expected to negotiate a few more long-term contracts to import LNG into the country. Last year, Pakistan imported nearly 7 tonnes of LNG, data from Refinitiv Eikon shows. This year, that could grow to as high as 15 million tonnes and to up to 25 million to 30 million tonnes over the next three to five years, said Adnan Gilani, managing director and chief executive of Pakistan LNG. Pakistan LNG is a state-owned company that buys LNG from the international market to supply to the domestic market. Pakistan's two import terminals have a regas capacity of 1.2 billion to 1.3 billion cubic feet of gas per day, or about 9 million to 10 million tonnes of LNG a year, according to Gilani's presentation at the LNGA 2019 conference in Singapore.

Saudi Aramco team in Pakistan for talks on first liquefied natural gas deals: Official

Oil prices rose to their highest level since November 2018 on Monday, <a href="https://www.wionews.com/business-economy/oil-prices-edge-lower-after-us-inventories-build-207813">driven upwards by OPEC's</a> ongoing supply cuts, US&nbsp;sanctions against Iran and Venezuela, and strong US&nbsp;jobs data.

International benchmark Brent futures were at $70.65 per barrel at 0441 GMT on Monday, up 31 cents, or 0.4 per cent from their last close.

US&nbsp;West Texas Intermediate (WTI) crude were up 31 cents, or 0.5 per cent, at $63.39 per barrel.

Brent and WTI both hit their highest since November at $70.76 and $63.48 a barrel, respectively, early on Monday.

"Brent prices increased more than 30 per cent year-to-date as OPEC+ continued to cut supply for four months in a row and optimism over US-China trade talks helped to buoy the demand outlook," US&nbsp;bank J.P. Morgan said in a note.

To prop up prices, the Organization of the Petroleum Exporting Countries (OPEC) and non-affiliated allies like Russia, known as OPEC+, have pledged to withhold around 1.2 million barrels per day (bpd) of supply this year.

Energy consultancy FGE said these cuts meant "excess inventories are disappearing," adding that "the market is poised for prices to rise to $75 per barrel or higher" for Brent.

Strong US&nbsp;jobs data on Friday also helped lift Asian markets on Monday.

"Oil bulls are drawing heart from the strong employment data in the US," said Sukrit Vijayakar, director of energy consultancy Trifecta.

"Military action in Libya, which could disrupt supply from the OPEC member, also aided prices," he said.

Crude has been driven up further by US&nbsp;sanctions against Iran and Venezuela.

"Sanctions can cut 500,000 bpd of Venezuelan exports. Add that to a cut in Iran waivers and prices can rise substantially," FGE said.

Despite the host of price drivers, there remain factors that could bring oil down later this year.

Russia is a reluctant participant in its agreement with OPEC to withhold output, and it may increase production if the deal is not extended before it expires on July 1, Energy Minister Alexander Novak said on Friday.

Russian oil output reached a national record high of 11.16 million bpd last year.

In the United States, crude production reached a global record 12.2 million bpd in late March.

US&nbsp;crude exports have also risen, breaking through 3 million bpd for the first time earlier this year.

"With the new Permian pipelines (from July), we can see a boost of 500,000 to 600,000 bpd in US&nbsp;exports," FGE said.

There also remain concerns about the health of the global economy, especially should China and the United States fail to resolve their trade dispute soon.

"Global demand has weakened, and existing tariffs on Chinese goods shipments to the US&nbsp;are providing an additional drag," rating agency Moody's said on Monday, although it added that Chinese stimulus measures would likely support growth over 2019.

Oil prices rose to their highest level since November 2018 on Monday, driven upwards by OPEC's ongoing supply cuts, US sanctions against Iran and Venezuela, and strong US jobs data.

Oil prices rose to their highest level since November 2018 on Monday, driven upwards by OPEC's ongoing supply cuts, US sanctions against Iran and Venezuela, and strong US jobs data. International benchmark Brent futures were at $70.65 per barrel at 0441 GMT on Monday, up 31 cents, or 0.4 per cent from their last close. US West Texas Intermediate (WTI) crude were up 31 cents, or 0.5 per cent, at $63.39 per barrel. Brent and WTI both hit their highest since November at $70.76 and $63.48 a barrel, respectively, early on Monday. "Brent prices increased more than 30 per cent year-to-date as OPEC+ continued to cut supply for four months in a row and optimism over US-China trade talks helped to buoy the demand outlook," US bank J.P. Morgan said in a note. To prop up prices, the Organization of the Petroleum Exporting Countries (OPEC) and non-affiliated allies like Russia, known as OPEC+, have pledged to withhold around 1.2 million barrels per day (bpd) of supply this year. Energy consultancy FGE said these cuts meant "excess inventories are disappearing," adding that "the market is poised for prices to rise to $75 per barrel or higher" for Brent. Strong US jobs data on Friday also helped lift Asian markets on Monday. "Oil bulls are drawing heart from the strong employment data in the US," said Sukrit Vijayakar, director of energy consultancy Trifecta. "Military action in Libya, which could disrupt supply from the OPEC member, also aided prices," he said. Crude has been driven up further by US sanctions against Iran and Venezuela. "Sanctions can cut 500,000 bpd of Venezuelan exports. Add that to a cut in Iran waivers and prices can rise substantially," FGE said. Despite the host of price drivers, there remain factors that could bring oil down later this year. Russia is a reluctant participant in its agreement with OPEC to withhold output, and it may increase production if the deal is not extended before it expires on July 1, Energy Minister Alexander Novak said on Friday. Russian oil output reached a national record high of 11.16 million bpd last year. In the United States, crude production reached a global record 12.2 million bpd in late March. US crude exports have also risen, breaking through 3 million bpd for the first time earlier this year. "With the new Permian pipelines (from July), we can see a boost of 500,000 to 600,000 bpd in US exports," FGE said. There also remain concerns about the health of the global economy, especially should China and the United States fail to resolve their trade dispute soon. "Global demand has weakened, and existing tariffs on Chinese goods shipments to the US are providing an additional drag," rating agency Moody's said on Monday, although it added that Chinese stimulus measures would likely support growth over 2019.

Oil prices rise on OPEC cuts, US sanctions against Iran, Venezuela

Sri Lanka's state-run Board of Investment said on Thursday that Oman's government-controlled Oman Oil Co has made it clear it is interested in taking a stake of up to 30 per cent in a new oil refinery project on Sri Lanka's south coast.

"We are aware that Oman Oil Company has registered their firm intention to participate in equity up to 30%, subject to reaching an agreement between the parties," the investment board said in a statement.

The $3.85 billion projects would be Sri Lanka's largest-ever foreign direct investment.

The board also said another Oman entity, Oman Trading International, is willing to supply the entire feedstock requirement of the project, as well as to do the marketing for the resulting refined oil products, such as gasoline.

The main investor in the project - the Singaporean arm of India's Accord Group - has said as well it is fully confident the project will be implemented, according to the board.

Oman's oil ministry on Wednesday denied that it had agreed to make an investment in the refinery. That was only a day after the government in Colombo announced the Arab country's participation.

"No one on this side of the panel is aware of this investment in Sri Lanka," Salim al-Aufi, undersecretary of Oman's ministry of oil and gas, told a news conference.

"It came as news to me, I don't know who is signing the cheque for $3.8 billion," he said.

An industry source familiar with the discussions told Reuters on Wednesday that there had been talks concerning the project that involved Oman but that they were at an early stage.

Any big deal in Sri Lanka involving Indian investment will pose a challenge to China, which until recently had been on track to be the dominant foreign investor on the island.

India has become concerned in recent years about China muscling into Sri Lanka and other countries in a region where India is the traditional power.

China is the biggest buyer of Omani oil, importing about 80 per cent of the Middle Eastern nation's overall crude exports in January, according to an Oman government website.

Sri Lanka's state-run Board of Investment said on Thursday that Oman's government-controlled Oman Oil Co has made it clear it is interested in taking a stake of up to 30 per cent in a new oil refinery project on Sri Lanka's south coast.

Sri Lanka's state-run Board of Investment said on Thursday that Oman's government-controlled Oman Oil Co has made it clear it is interested in taking a stake of up to 30 per cent in a new oil refinery project on Sri Lanka's south coast. "We are aware that Oman Oil Company has registered their firm intention to participate in equity up to 30%, subject to reaching an agreement between the parties," the investment board said in a statement. The $3.85 billion projects would be Sri Lanka's largest-ever foreign direct investment. The board also said another Oman entity, Oman Trading International, is willing to supply the entire feedstock requirement of the project, as well as to do the marketing for the resulting refined oil products, such as gasoline. The main investor in the project - the Singaporean arm of India's Accord Group - has said as well it is fully confident the project will be implemented, according to the board. Oman's oil ministry on Wednesday denied that it had agreed to make an investment in the refinery. That was only a day after the government in Colombo announced the Arab country's participation. "No one on this side of the panel is aware of this investment in Sri Lanka," Salim al-Aufi, undersecretary of Oman's ministry of oil and gas, told a news conference. "It came as news to me, I don't know who is signing the cheque for $3.8 billion," he said. An industry source familiar with the discussions told Reuters on Wednesday that there had been talks concerning the project that involved Oman but that they were at an early stage. Any big deal in Sri Lanka involving Indian investment will pose a challenge to China, which until recently had been on track to be the dominant foreign investor on the island. India has become concerned in recent years about China muscling into Sri Lanka and other countries in a region where India is the traditional power. China is the biggest buyer of Omani oil, importing about 80 per cent of the Middle Eastern nation's overall crude exports in January, according to an Oman government website.

Sri Lanka investment board says Oman Oil keen on refinery project

OPEC is set to scrap its planned meeting in April and decide instead whether to extend oil output cuts in June, when the market will be able to assess the full impact of US sanctions on Iran and the crisis in Venezuela.

A ministerial panel of <a href="https://www.wionews.com/business-economy/oil-prices-rise-as-opec-resists-trump-pressure-to-ease-supply-cuts-200005">OPEC and its allies</a> recommended on Monday that they cancel the extraordinary meeting scheduled for April 17-18, which means the next regular talks would be held on June 25-26.

The energy minister of OPEC's de facto leader, Saudi Arabia, said over the weekend that the market was looking oversupplied until the end of the year but that April would be too early for any decision on output policy.

"The consensus we heard ... is that April will be premature to make any production decision for the second half," the Saudi minister, Khalid al-Falih, said on Monday.

"As long as the levels of inventories are rising and we are far from normal levels, we will stay the course, guiding the market towards balance," he added.

The United States has been increasing its own oil exports in recent months while imposing sanctions on OPEC members Venezuela and Iran in an effort to reduce those two countries' shipments to global markets.

Washington’s policies have introduced a new level of complication for the Organization of the Petroleum Exporting Countries as it struggles to predict global supply and demand.

"We are not under pressure except by the market," Falih told reporters before the Joint Ministerial Monitoring Committee (JMMC) meeting in the Azeri capital, Baku, when asked whether he was under US&nbsp;pressure to raise output.

US President Donald <a href="https://www.wionews.com/world/trump-calls-on-opec-to-relax-says-oil-prices-are-too-high-199667">Trump has been a vocal critic of OPEC</a>, blaming it for high oil prices. Many OPEC members have said Trump's sanctions policies have elevated the market.

OPEC and its allies agreed in December to cut output by 1.2 million barrels per day - 1.2 per cent of global demand - during the first half of this year in an effort to boost prices.

The JMMC, which also includes non-OPEC Russia, monitors the oil market and conformity with supply cuts.

Asked if he had been updated on whether Washington would extend its waivers for buyers of Iranian crude, which are due to end in May, Falih said: "Until we see it hurting consumers, until we see the impact on inventory, we are not going to change course."

Inventory levels and oil investments are the two main factors guiding OPEC's action, Falih said, adding that oil industry estimates show that $11 trillion of investments will be needed over the coming two decades to meet demand growth.

Oil inventories in developed countries continue to fluctuate, he said.

"Our goal is to bring global inventory levels down to more normal levels - and even more importantly, to proactively protect against a glut," he said.

"Another important metric is the state of oil investments ... we are not seeing an investment trend that will get us even closer to the required figures."

OPEC is set to scrap its planned meeting in April and decide instead whether to extend oil output cuts in June, when the market will be able to assess the full impact of US sanctions on Iran and the crisis in Venezuela.

OPEC is set to scrap its planned meeting in April and decide instead whether to extend oil output cuts in June, when the market will be able to assess the full impact of US sanctions on Iran and the crisis in Venezuela. A ministerial panel of OPEC and its allies recommended on Monday that they cancel the extraordinary meeting scheduled for April 17-18, which means the next regular talks would be held on June 25-26. The energy minister of OPEC's de facto leader, Saudi Arabia, said over the weekend that the market was looking oversupplied until the end of the year but that April would be too early for any decision on output policy. "The consensus we heard ... is that April will be premature to make any production decision for the second half," the Saudi minister, Khalid al-Falih, said on Monday. "As long as the levels of inventories are rising and we are far from normal levels, we will stay the course, guiding the market towards balance," he added. The United States has been increasing its own oil exports in recent months while imposing sanctions on OPEC members Venezuela and Iran in an effort to reduce those two countries' shipments to global markets. Washington’s policies have introduced a new level of complication for the Organization of the Petroleum Exporting Countries as it struggles to predict global supply and demand. "We are not under pressure except by the market," Falih told reporters before the Joint Ministerial Monitoring Committee (JMMC) meeting in the Azeri capital, Baku, when asked whether he was under US pressure to raise output. US President Donald Trump has been a vocal critic of OPEC, blaming it for high oil prices. Many OPEC members have said Trump's sanctions policies have elevated the market. OPEC and its allies agreed in December to cut output by 1.2 million barrels per day - 1.2 per cent of global demand - during the first half of this year in an effort to boost prices. The JMMC, which also includes non-OPEC Russia, monitors the oil market and conformity with supply cuts. Asked if he had been updated on whether Washington would extend its waivers for buyers of Iranian crude, which are due to end in May, Falih said: "Until we see it hurting consumers, until we see the impact on inventory, we are not going to change course." Inventory levels and oil investments are the two main factors guiding OPEC's action, Falih said, adding that oil industry estimates show that $11 trillion of investments will be needed over the coming two decades to meet demand growth. Oil inventories in developed countries continue to fluctuate, he said. "Our goal is to bring global inventory levels down to more normal levels - and even more importantly, to proactively protect against a glut," he said. "Another important metric is the state of oil investments ... we are not seeing an investment trend that will get us even closer to the required figures."

OPEC not to meet in April on oil output cuts

India's diesel consumption may rise to a record this year on increasing infrastructure spending by the current government as it tries to hold off challengers in general elections that will be held over April and May.

Surging diesel consumption in India, the world's third-largest oil user, underscores the country's importance as a driver of global oil demand. Amid increasing concerns that crude demand growth may slip in 2019 because of slowing economic growth, India's burgeoning fuel consumption may help underpin oil and fuel prices.

Analysts at Fitch Solutions and consultants Wood Mackenzie forecast India's diesel demand to rise in 2019 by 5.7 per cent and 6.4 per cent, respectively, from 2018. The country consumed a record 6.9 million tonnes of diesel a month in 2018, or about 1.7 million barrels per day (bpd), data from the Ministry of Petroleum showed.

"There is strong energy demand which is bound to happen because of different sectors... We are a diesel driven economy," said Sanjiv Singh, chairman of Indian Oil Corp, the country's top refiner.

"The bottom-line remains that energy demand is bound to grow. We're seeing GDP at more than 7 per cent, (and) ... a lot of urbanization," Singh added.

India's economy is expected to grow by 7.2 per cent in the 2018/2019 financial year, which runs from April to March, versus 6.7 per cent the previous year, according to government data.

"Tied to a constructive GDP outlook - and alongside the country's positive demographics, low vehicle penetration and loose monetary policy - is our forecast for rapid growth in vehicle sales, which again will be positive for diesel," said Peter Lee, an analyst at Fitch Solutions, adding that diesel cars account for nearly a quarter of new vehicles in India.

According to 2015 data, the latest available, from the International Organization of Motor Vehicle Manufacturers, India held 22 cars per 1,000 people versus 821 cars per 1,000 people in the United States.

Election boom

Election rallies, the deployment of polling officers and security officers will add to the diesel demand boost from infrastructure projects that the ruling Bharatiya Janata Party have planned ahead of the polls.

The country's interim budget unveiled earlier this month allocated 190 billion rupees ($2.67 billion) for building roads in the countryside, where two-thirds of Indians live.

"Increased travel activity for campaigning and implementation of infrastructure projects ahead of the elections will bolster diesel demand in the first half of 2019," said Aman Verma, a research analyst at Wood Mackenzie.

During the last general elections in 2014, monthly diesel sales averaged 6.2 million tonnes during the polling months, 7 per cent higher than the monthly average sales that year.

The implementation of a nationwide goods and services tax (GST) has also been beneficial for diesel demand.

"The GST has led to the removal of interstate taxes. This is a structural shift, resulting in increased demand for heavy and medium-duty trucks to achieve economies of scale and operational efficiency," Wood Mackenzie's Verma said.

The sales of commercial vehicles, which largely run on diesel, rose to a record last year, and Jan. 2019 sales climbed to 87,600, a record high for this time of the year, according to data on Refinitiv Eikon.

India's diesel expansion will likely continue despite rising air pollution concerns, especially in the capital of New Delhi. The country's fuel standards have improved, removing much of the sulphur from the diesel pool.

By April, the New Delhi capital region will adopt the so-called Bharat VI standard that is equal to the most stringent European standard, which the rest of the country will adopt next year.

Diesel consumption also faces increasing competition from electric vehicles (EV). The Indian government has set a target of EVs making up 30 per cent of new car and motorcycle sales by 2030 from less than 1 per cent today.

At the moment though EVs are not making much of an impact in India. Electric car sales actually declined by 40 per cent to a mere 1,200 units in the financial year 2018 over the financial year 2017, although electric two-wheeler sales rose 138 per cent to 54,800 units during the same period, according to Wood Mackenzie.

India's diesel consumption may rise to a record this year on increasing infrastructure spending by the current government as it tries to hold off challengers in general elections that will be held over April and May.

India's diesel consumption may rise to a record this year on increasing infrastructure spending by the current government as it tries to hold off challengers in general elections that will be held over April and May. Surging diesel consumption in India, the world's third-largest oil user, underscores the country's importance as a driver of global oil demand. Amid increasing concerns that crude demand growth may slip in 2019 because of slowing economic growth, India's burgeoning fuel consumption may help underpin oil and fuel prices. Analysts at Fitch Solutions and consultants Wood Mackenzie forecast India's diesel demand to rise in 2019 by 5.7 per cent and 6.4 per cent, respectively, from 2018. The country consumed a record 6.9 million tonnes of diesel a month in 2018, or about 1.7 million barrels per day (bpd), data from the Ministry of Petroleum showed. "There is strong energy demand which is bound to happen because of different sectors... We are a diesel driven economy," said Sanjiv Singh, chairman of Indian Oil Corp, the country's top refiner. "The bottom-line remains that energy demand is bound to grow. We're seeing GDP at more than 7 per cent, (and) ... a lot of urbanization," Singh added. India's economy is expected to grow by 7.2 per cent in the 2018/2019 financial year, which runs from April to March, versus 6.7 per cent the previous year, according to government data. "Tied to a constructive GDP outlook - and alongside the country's positive demographics, low vehicle penetration and loose monetary policy - is our forecast for rapid growth in vehicle sales, which again will be positive for diesel," said Peter Lee, an analyst at Fitch Solutions, adding that diesel cars account for nearly a quarter of new vehicles in India. According to 2015 data, the latest available, from the International Organization of Motor Vehicle Manufacturers, India held 22 cars per 1,000 people versus 821 cars per 1,000 people in the United States. Election boom Election rallies, the deployment of polling officers and security officers will add to the diesel demand boost from infrastructure projects that the ruling Bharatiya Janata Party have planned ahead of the polls. The country's interim budget unveiled earlier this month allocated 190 billion rupees ($2.67 billion) for building roads in the countryside, where two-thirds of Indians live. "Increased travel activity for campaigning and implementation of infrastructure projects ahead of the elections will bolster diesel demand in the first half of 2019," said Aman Verma, a research analyst at Wood Mackenzie. During the last general elections in 2014, monthly diesel sales averaged 6.2 million tonnes during the polling months, 7 per cent higher than the monthly average sales that year. The implementation of a nationwide goods and services tax (GST) has also been beneficial for diesel demand. "The GST has led to the removal of interstate taxes. This is a structural shift, resulting in increased demand for heavy and medium-duty trucks to achieve economies of scale and operational efficiency," Wood Mackenzie's Verma said. The sales of commercial vehicles, which largely run on diesel, rose to a record last year, and Jan. 2019 sales climbed to 87,600, a record high for this time of the year, according to data on Refinitiv Eikon. India's diesel expansion will likely continue despite rising air pollution concerns, especially in the capital of New Delhi. The country's fuel standards have improved, removing much of the sulphur from the diesel pool. By April, the New Delhi capital region will adopt the so-called Bharat VI standard that is equal to the most stringent European standard, which the rest of the country will adopt next year. Diesel consumption also faces increasing competition from electric vehicles (EV). The Indian government has set a target of EVs making up 30 per cent of new car and motorcycle sales by 2030 from less than 1 per cent today. At the moment though EVs are not making much of an impact in India. Electric car sales actually declined by 40 per cent to a mere 1,200 units in the financial year 2018 over the financial year 2017, although electric two-wheeler sales rose 138 per cent to 54,800 units during the same period, according to Wood Mackenzie.

India's diesel demand to hit record high in 2019 as country goes to polls

<a href="http://www.wionews.com/world/oil-dips-on-rising-us-supply-but-opec-cuts-and-venezuela-sanctions-support-195744">Oil prices fell</a> by around 1 per cent on Monday as drilling activity in the United States, the world's largest oil producer, picked up and financial markets were pulled down by trade concerns.

A refinery fire in the US state of Illinois, which resulted in the shutdown of a large crude distillation unit, that could cause crude demand to fall also weighed on prices, traders said.

US West Texas Intermediate (WTI) crude futures were at $52.09 per barrel at 0347 GMT, down 63 cents, or 1.2 per cent, from their last settlement.

International Brent crude oil futures were down 49 cents, or 0.8 per cent, at $61.61 a barrel.

In the United States, energy firms last week increased the number of oil rigs operating for the second time in three weeks, a weekly report by Baker Hughes said on Friday.

Companies added seven oil rigs in the week to February 8, bringing the total count to 854, pointing to a further rise in US crude production, which already stands at a record 11.9 million bpd.

WTI prices were also weighed down by the closure of a 120,000-barrels-per-day (bpd) crude distillation unit (CDU) at Phillips 66's Wood River, Illinois, refinery following a fire on Sunday.

Elsewhere, the head of Russian oil giant Rosneft, Igor Sechin, has written to the Russian President Vladimir Putin saying Moscow's deal with the Organization of the Petroleum Exporting Countries (OPEC) to withhold output is a strategic threat and plays into the hands of the United States.

The so-called OPEC+ deal has been in place since 2017, aimed at reining in a global supply overhang. It has been extended several times and, under the latest deal, participants are cutting output by 1.2 million bpd until the end of June.

OPEC and its allies will meet on April 17 and 18 in Vienna to review the pact.

Analysts said economic concerns were also weighing on crude oil futures.

Vandana Hari of Vanda Insights said in a note that crude prices were dragged down "as China returned from a week-long Lunar New Year holiday and regional stock markets plunged into the red amid resurgent concerns over the US-China trade dispute."

Trade talks between the Washington and Beijing resume this week with a delegation of US officials travelling to China for the next round of negotiations. The United States has threatened to increase tariffs already imposed on goods from China on March 1 if the trade talks do not produce an agreement.

Preventing crude prices from falling further have been US sanctions on Venezuela, targeting its state-owned oil firm Petroleos de Venezuela SA (PDVSA).

"The issues in Venezuela continue to support prices. Reports are emerging that PDVSA is scrambling to secure new markets for its crude after the US placed additional sanctions on the country," ANZ bank said on Monday.

Oil prices fell by around 1 per cent on Monday as drilling activity in the United States, the world's largest oil producer, picked up and financial markets were pulled down by trade concerns.

Oil prices fell by around 1 per cent on Monday as drilling activity in the United States, the world's largest oil producer, picked up and financial markets were pulled down by trade concerns. A refinery fire in the US state of Illinois, which resulted in the shutdown of a large crude distillation unit, that could cause crude demand to fall also weighed on prices, traders said. US West Texas Intermediate (WTI) crude futures were at $52.09 per barrel at 0347 GMT, down 63 cents, or 1.2 per cent, from their last settlement. International Brent crude oil futures were down 49 cents, or 0.8 per cent, at $61.61 a barrel. In the United States, energy firms last week increased the number of oil rigs operating for the second time in three weeks, a weekly report by Baker Hughes said on Friday. Companies added seven oil rigs in the week to February 8, bringing the total count to 854, pointing to a further rise in US crude production, which already stands at a record 11.9 million bpd. WTI prices were also weighed down by the closure of a 120,000-barrels-per-day (bpd) crude distillation unit (CDU) at Phillips 66's Wood River, Illinois, refinery following a fire on Sunday. Elsewhere, the head of Russian oil giant Rosneft, Igor Sechin, has written to the Russian President Vladimir Putin saying Moscow's deal with the Organization of the Petroleum Exporting Countries (OPEC) to withhold output is a strategic threat and plays into the hands of the United States. The so-called OPEC+ deal has been in place since 2017, aimed at reining in a global supply overhang. It has been extended several times and, under the latest deal, participants are cutting output by 1.2 million bpd until the end of June. OPEC and its allies will meet on April 17 and 18 in Vienna to review the pact. Analysts said economic concerns were also weighing on crude oil futures. Vandana Hari of Vanda Insights said in a note that crude prices were dragged down "as China returned from a week-long Lunar New Year holiday and regional stock markets plunged into the red amid resurgent concerns over the US-China trade dispute." Trade talks between the Washington and Beijing resume this week with a delegation of US officials travelling to China for the next round of negotiations. The United States has threatened to increase tariffs already imposed on goods from China on March 1 if the trade talks do not produce an agreement. Preventing crude prices from falling further have been US sanctions on Venezuela, targeting its state-owned oil firm Petroleos de Venezuela SA (PDVSA). "The issues in Venezuela continue to support prices. Reports are emerging that PDVSA is scrambling to secure new markets for its crude after the US placed additional sanctions on the country," ANZ bank said on Monday.

Oil prices fall as US rig count rise, trade concerns

<a href="http://www.wionews.com/world/oil-ticks-higher-market-eyes-us-state-of-the-union-address-195511">Oil prices slipped</a> on Thursday after US crude inventories rose and the country's production held at record levels, but OPEC-led supply cuts and Washington's sanctions against Venezuela supported markets.

US West Texas Intermediate (WTI) crude futures were at $53.82 per barrel at 0607 GMT, down 19 cents, or 0.4 per cent, from their last settlement.

International Brent crude oil futures fell 25 cents, or 0.4 per cent, to $62.44 per barrel.

US crude oil inventories climbed by 1.3 million barrels in the week that ended February 1 to 447.21 million barrels, data from the Energy Information Administration (EIA) showed on Wednesday.

Meanwhile, average weekly US crude oil production remained at the record 11.9 million barrels per day (bpd) it reached in late 2018. The United States is currently the world's largest oil producer, ahead of traditional top suppliers Russia and Saudi Arabia.

Countering the rising US crude output and inventories are voluntary supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) aimed at tightening the market and propping up prices.

"The key supply story remains the ongoing OPEC production cuts," US bank Goldman Sachs said on Wednesday.

Meanwhile, US sanctions against Venezuela's oil industry are expected to freeze sales proceeds of Venezuelan crude exports to the United States.

"Around a third of Venezuela's exports head to the US as such, we expect Venezuelan exports to quickly fall by 300,000 barrels per day (bpd) to around 700,000 bpd," ANZ bank said on Thursday.

"The risks are rising that this political standoff will deepen the fall in output as funds dry up and the mass defection of workers accelerates," it added.

Washington said last week that after April 28 foreign companies will not be able to conduct business with PDVSA using the US financial system, effectively banning them from paying in US dollars.

"The ban ... dramatically ramps up the sanctions to a global level and could potentially result in a loss of most Venezuelan output," French bank Societe Generale said in a note published on Wednesday.

Oil prices slipped on Thursday after US crude inventories rose and the country's production held at record levels, but OPEC-led supply cuts and Washington's sanctions against Venezuela supported markets.

Oil prices slipped on Thursday after US crude inventories rose and the country's production held at record levels, but OPEC-led supply cuts and Washington's sanctions against Venezuela supported markets. US West Texas Intermediate (WTI) crude futures were at $53.82 per barrel at 0607 GMT, down 19 cents, or 0.4 per cent, from their last settlement. International Brent crude oil futures fell 25 cents, or 0.4 per cent, to $62.44 per barrel. US crude oil inventories climbed by 1.3 million barrels in the week that ended February 1 to 447.21 million barrels, data from the Energy Information Administration (EIA) showed on Wednesday. Meanwhile, average weekly US crude oil production remained at the record 11.9 million barrels per day (bpd) it reached in late 2018. The United States is currently the world's largest oil producer, ahead of traditional top suppliers Russia and Saudi Arabia. Countering the rising US crude output and inventories are voluntary supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) aimed at tightening the market and propping up prices. "The key supply story remains the ongoing OPEC production cuts," US bank Goldman Sachs said on Wednesday. Meanwhile, US sanctions against Venezuela's oil industry are expected to freeze sales proceeds of Venezuelan crude exports to the United States. "Around a third of Venezuela's exports head to the US as such, we expect Venezuelan exports to quickly fall by 300,000 barrels per day (bpd) to around 700,000 bpd," ANZ bank said on Thursday. "The risks are rising that this political standoff will deepen the fall in output as funds dry up and the mass defection of workers accelerates," it added. Washington said last week that after April 28 foreign companies will not be able to conduct business with PDVSA using the US financial system, effectively banning them from paying in US dollars. "The ban ... dramatically ramps up the sanctions to a global level and could potentially result in a loss of most Venezuelan output," French bank Societe Generale said in a note published on Wednesday.

International oil prices dip as US crude inventories rise

Venezulea Crisis: Crude oil prices surge

<a href="https://www.google.com/url?q=http://www.wionews.com/business-economy/oil-prices-jump-as-us-threatens-sanctions-against-venezuela-192607&amp;sa=U&amp;ved=0ahUKEwjA7sSn6ojgAhWSiXAKHTiZC0sQFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw3oBffrqBNuSAyi3_IBfrrd">Oil prices</a> edged up on Friday as turmoil in Venezuela increased the chances of tighter global supply if the United States makes good on signals that it could impose sanctions on Venezuelan exports.

But fresh data on surging US fuel stocks and worries about <a href="https://www.google.com/url?q=http://www.wionews.com/business-economy/rupee-rises-10-paise-against-us-dollar-in-early-trade-192624&amp;sa=U&amp;ved=0ahUKEwjA7sSn6ojgAhWSiXAKHTiZC0sQFggIMAE&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw32BeUu8AII9LBsZdVa4Ti4">US</a>-China trade talks weighed on prices.

Brent crude oil futures were at $61.17 a barrel at 0955 GMT, up 8 cents, or 0.13 per cent. Earlier on Friday, the international benchmark crude rose as high as $61.92.

Brent, however, has shed about 2.4 per cent since the start of trade on Monday and is on track to post its first week of losses in four weeks.

US West Texas Intermediate (WTI) crude futures were at $53.34 per barrel, up 21 cents, or 0.4 per cent.&nbsp;

Amid violent street protests, Venezuela's opposition leader Juan Guaido declared himself interim president this week, winning recognition from Washington and parts of Latin America.

Nicolas Maduro, the country's leader since 2013, responded by breaking relations with the United States.

"The oil market is partially pricing in the risk to Venezuela's crude production, which has been plummeting in recent years," Vandana Hari of Vanda Insights said.

RBC Europe predicted that sanctions could nearly double projected output shortfalls from the troubled exporter.

"Venezuelan production will decline by an additional 300,000-500,000 barrels per day (bpd) this year but such punitive measures could expand that outage by several hundred thousand barrels."

Global oil markets are still well supplied, however, thanks in part to surging output in the United States.

Record US production would likely offset any short-term disruptions to Venezuelan supply due to possible US sanctions, Britain's Barclays said in a note. The bank cut its 2019 average Brent forecast to $70 a barrel, from $72 previously.

The output surge has swollen US fuel stocks, and crude inventories rose by 8 million barrels last week, according to official data released on Thursday.

But demand may start to stutter because of a global economic slowdown, which is likely to dent fuel consumption.

A trade dispute between the United States and China and tightening financial conditions around the world have hurt manufacturing activity in most economies and dragged China's growth last year to the weakest in nearly 30 years.

According to Reuters polls of hundreds of economists worldwide, a synchronised global economic slowdown is underway and would deepen if the US-China trade war escalated.

 
&nbsp;

Oil prices edged up on Friday as turmoil in Venezuela increased the chances of tighter global supply if the United States makes good on signals that it could impose sanctions on Venezuelan exports.

Oil prices edged up on Friday as turmoil in Venezuela increased the chances of tighter global supply if the United States makes good on signals that it could impose sanctions on Venezuelan exports. But fresh data on surging US fuel stocks and worries about US-China trade talks weighed on prices. Brent crude oil futures were at $61.17 a barrel at 0955 GMT, up 8 cents, or 0.13 per cent. Earlier on Friday, the international benchmark crude rose as high as $61.92. Brent, however, has shed about 2.4 per cent since the start of trade on Monday and is on track to post its first week of losses in four weeks. US West Texas Intermediate (WTI) crude futures were at $53.34 per barrel, up 21 cents, or 0.4 per cent. Amid violent street protests, Venezuela's opposition leader Juan Guaido declared himself interim president this week, winning recognition from Washington and parts of Latin America. Nicolas Maduro, the country's leader since 2013, responded by breaking relations with the United States. "The oil market is partially pricing in the risk to Venezuela's crude production, which has been plummeting in recent years," Vandana Hari of Vanda Insights said. RBC Europe predicted that sanctions could nearly double projected output shortfalls from the troubled exporter. "Venezuelan production will decline by an additional 300,000-500,000 barrels per day (bpd) this year but such punitive measures could expand that outage by several hundred thousand barrels." Global oil markets are still well supplied, however, thanks in part to surging output in the United States. Record US production would likely offset any short-term disruptions to Venezuelan supply due to possible US sanctions, Britain's Barclays said in a note. The bank cut its 2019 average Brent forecast to $70 a barrel, from $72 previously. The output surge has swollen US fuel stocks, and crude inventories rose by 8 million barrels last week, according to official data released on Thursday. But demand may start to stutter because of a global economic slowdown, which is likely to dent fuel consumption. A trade dispute between the United States and China and tightening financial conditions around the world have hurt manufacturing activity in most economies and dragged China's growth last year to the weakest in nearly 30 years. According to Reuters polls of hundreds of economists worldwide, a synchronised global economic slowdown is underway and would deepen if the US-China trade war escalated.

Oil prices climb as US threatens sanctions against Venezuela

Fuel prices witnessed a fresh hike on Saturday, adding to commuters' woes.

In New Delhi, petrol is being sold 17 paise higher at Rs 70.72/litre, and diesel at Rs 65.16/litre after a 19 paise hike.

Also, petrol is retailing at Rs 76.35/litre (increased by 17 paise) and diesel at Rs. 68.22/litre (increased by 20 paise) in Mumbai.

The rise in prices comes amidst the revision of global crude oil prices owing to a possible stifling of supply in the near future.

In New Delhi, petrol is being sold 17 paise higher at Rs 70.72/litre, and diesel at Rs 65.16/litre after a 19 paise hike.

Fuel prices witnessed a fresh hike on Saturday, adding to commuters' woes. In New Delhi, petrol is being sold 17 paise higher at Rs 70.72/litre, and diesel at Rs 65.16/litre after a 19 paise hike. Also, petrol is retailing at Rs 76.35/litre (increased by 17 paise) and diesel at Rs. 68.22/litre (increased by 20 paise) in Mumbai. The rise in prices comes amidst the revision of global crude oil prices owing to a possible stifling of supply in the near future.

Fresh hike in fuel prices, petrol rises by 17 paise in Delhi, Mumbai

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