Fuel prices continued to soar on Friday, with petrol and diesel rates hiked by Rs 0.12 and 0.28 respectively in Delhi. Petrol in Delhi will be sold at Rs 82.48 per litre, diesel for the day will be at Rs 74.90 per litre.

In Mumbai, petrol and diesel prices were at Rs 87.94 per litre, an increase of Rs 0.12, and Rs 78.51 per litre, up by Rs 0.29, respectively.

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Petrol and diesel prices in <a href="https://twitter.com/hashtag/Delhi?src=hash&amp;ref_src=twsrc%5Etfw">#Delhi</a> are Rs 82.48 per litre (increase by Rs 0.12) and Rs 74.90 (increase by Rs 0.28) respectively. Petrol and diesel prices in <a href="https://twitter.com/hashtag/Mumbai?src=hash&amp;ref_src=twsrc%5Etfw">#Mumbai</a> are Rs 87.94 per litre (increase by Rs 0.12) and Rs 78.51 per litre (increase by Rs 0.29) respectively. <a href="https://t.co/a6xLXlTH6y">pic.twitter.com/a6xLXlTH6y</a>
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Fuel prices have been witnessing a steep rise since the past few months. While the Opposition has repeatedly blamed the union government for not doing enough to keep a check on prices, the latter has maintained that global crude oil prices and other international factors are causing a hike in prices of petroleum products.

On October 4, the union government had announced a cut of Rs 2.50 per litre on both petrol and diesel prices after curbing excise duty on the commodity by Rs 1.50 per litre.&nbsp;

While making the announcement, Finance Minister Arun Jaitley had also recommended all state governments to slash rates by a further Rs 2.5 to make fuel cheaper by Rs 5. 
&nbsp;

Fuel prices continued to soar on Friday, with petrol and diesel rates hiked by Rs 0.12 and 0.28 respectively in Delhi. Petrol in Delhi will be sold at Rs 82.48 per litre, diesel for the day will be at Rs 74.

Fuel prices continued to soar on Friday, with petrol and diesel rates hiked by Rs 0.12 and 0.28 respectively in Delhi. Petrol in Delhi will be sold at Rs 82.48 per litre, diesel for the day will be at Rs 74.90 per litre. In Mumbai, petrol and diesel prices were at Rs 87.94 per litre, an increase of Rs 0.12, and Rs 78.51 per litre, up by Rs 0.29, respectively. Petrol and diesel prices in #Delhi are Rs 82.48 per litre (increase by Rs 0.12) and Rs 74.90 (increase by Rs 0.28) respectively. Petrol and diesel prices in #Mumbai are Rs 87.94 per litre (increase by Rs 0.12) and Rs 78.51 per litre (increase by Rs 0.29) respectively. pic.twitter.com/a6xLXlTH6y — ANI (@ANI) October 12, 2018 × Fuel prices have been witnessing a steep rise since the past few months. While the Opposition has repeatedly blamed the union government for not doing enough to keep a check on prices, the latter has maintained that global crude oil prices and other international factors are causing a hike in prices of petroleum products. On October 4, the union government had announced a cut of Rs 2.50 per litre on both petrol and diesel prices after curbing excise duty on the commodity by Rs 1.50 per litre. While making the announcement, Finance Minister Arun Jaitley had also recommended all state governments to slash rates by a further Rs 2.5 to make fuel cheaper by Rs 5.

Fuel prices continue to rise, petrol sells at Rs 87.94 a litre in Mumbai

Prime Minister Narendra Modi is chairing a high-level meeting&nbsp;in Delhi on the state of the economy and oil sector with an agenda aimed to curb the rupee's continuous slide.

The main focus of the meeting is the rupee's continuing weakness against the dollar.

According to reports, the government could announce measures to control the current account deficit and the crude oil prices in the light of the upcoming sanctions on Iran by us. It may also announce a fresh set of measures that could include higher customs duties and import restrictions on certain non-essential items.

Finance Minister Arun Jaitley, Petroleum Minister Dharmendra Pradhan and Commerce Minister Suresh Prabhu are part of the meeting.

The government recently increased import duty on several electronic and consumer items including refrigerators, air conditioners and telecom equipment to rein in current account deficit and stabilise the rupee.

It also hiked duty on footwear, diamonds, and jet fuel as a part of its plan to get foreign funds flowing back to India recently.

According to WION's sources, there could be a new list of items that would attract higher import duty and there could be quantitative restrictions on inward shipments. &nbsp;

India's current account deficit widened to 2.4 per cent of GDP in April-June and the rupee is hovering around 74 to a dollar.

Prime Minister Narendra Modi is chairing a high-level meeting in Delhi on the state of the economy and oil sector with an agenda aimed to curb the rupee's continuous slide.

Prime Minister Narendra Modi is chairing a high-level meeting in Delhi on the state of the economy and oil sector with an agenda aimed to curb the rupee's continuous slide. The main focus of the meeting is the rupee's continuing weakness against the dollar. According to reports, the government could announce measures to control the current account deficit and the crude oil prices in the light of the upcoming sanctions on Iran by us. It may also announce a fresh set of measures that could include higher customs duties and import restrictions on certain non-essential items. Finance Minister Arun Jaitley, Petroleum Minister Dharmendra Pradhan and Commerce Minister Suresh Prabhu are part of the meeting. The government recently increased import duty on several electronic and consumer items including refrigerators, air conditioners and telecom equipment to rein in current account deficit and stabilise the rupee. It also hiked duty on footwear, diamonds, and jet fuel as a part of its plan to get foreign funds flowing back to India recently. According to WION's sources, there could be a new list of items that would attract higher import duty and there could be quantitative restrictions on inward shipments. India's current account deficit widened to 2.4 per cent of GDP in April-June and the rupee is hovering around 74 to a dollar.

PM Modi chairs high-level meeting on economy, finance & oil ministers attend

Here is why oil is burning a hole in your pocket

Petrol and diesel prices increased again on Thursday by Rs 0.10 and Rs 0.27 respectively in the national capital. Petrol in Delhi will be sold at Rs 82.36 per litre, diesel for the day will be at Rs 74.62 per litre.

In Mumbai, petrol and diesel prices were at Rs 87.82 per litre, an increase of Rs 0.9, and Rs 78.22 per litre, up by Rs 0.29, respectively.

On Wednesday petrol remained unchanged at 82.26 but diesel, however, rose to&nbsp;74.35 per litre, increased by Rs 0.24 per litre, in Delhi and Rs 77.93, up by Rs 0.25 per litre, in Mumbai.&nbsp;

Fuel prices have been rising unabated even after the Central government last Thursday announced a relief of Rs 2.50 on petrol and diesel prices. Various state governments also provided a relief of Rs 2.50 to give a &nbsp;cumulative relief of Rs 5 on fuel prices to the customers.&nbsp;

The Finance Minister in his address noted that the world crude prices this year have witnessed an all-time high. He also added that Prime Minister Narendra Modi has been concerned about the escalating fuel prices in the country.&nbsp;

&nbsp;

Petrol and diesel prices increased again on Thursday by Rs 0.10 and Rs 0.27 respectively in the national capital. Petrol in Delhi will be sold at Rs 82.36 per litre, diesel for the day will be at Rs 74.

Petrol and diesel prices increased again on Thursday by Rs 0.10 and Rs 0.27 respectively in the national capital. Petrol in Delhi will be sold at Rs 82.36 per litre, diesel for the day will be at Rs 74.62 per litre. In Mumbai, petrol and diesel prices were at Rs 87.82 per litre, an increase of Rs 0.9, and Rs 78.22 per litre, up by Rs 0.29, respectively. On Wednesday petrol remained unchanged at 82.26 but diesel, however, rose to 74.35 per litre, increased by Rs 0.24 per litre, in Delhi and Rs 77.93, up by Rs 0.25 per litre, in Mumbai. Fuel prices have been rising unabated even after the Central government last Thursday announced a relief of Rs 2.50 on petrol and diesel prices. Various state governments also provided a relief of Rs 2.50 to give a cumulative relief of Rs 5 on fuel prices to the customers. The Finance Minister in his address noted that the world crude prices this year have witnessed an all-time high. He also added that Prime Minister Narendra Modi has been concerned about the escalating fuel prices in the country.

Petrol prices up again, selling at Rs 82.36 a litre in Delhi

Executive director at Indian Oil Corp, Partha Ghosh, on Tuesday stated that crude oil demand in India is expected to grow to 500 million tonnes per year by 2040.

The demand would be equivalent to around 10 million barrels per day (bpd), up from about 4.7 million bpd in 2017, news agency Reuters reported.&nbsp;

The central government has been facing criticism over unabated escalating fuel prices in the country since the past few weeks. The BJP-led government has been blaming the rise in global crude prices for the rising fuel prices in the nation.&nbsp;

Fuel prices in Delhi and Mumbai saw a fresh hike on Tuesday with petrol selling at Rs 82.86 per litre in Delhi and diesel at Rs 74.12 per litre. Petrol prices in the national capital today witnessed a rise of 14 paise whereas diesel rose by 10 paise.&nbsp;

In Mumbai, petrol and diesel prices amounted to Rs 90.22 per litre and Rs 78.69 per litre, respectively.

Meanwhile, Department of Economic Affairs Secretary Subhash Chandra Garg on Friday said that discussions are taking place with the United States regarding the reduction of oil imports from Iran.

"We are in talks with the USA and they told us to reduce the import from Iran significantly. We have done that to some extent. As clarity in the situation emerges, steps will be taken accordingly by the government by November 4," he told ANI.

(With inputs from agencies)&nbsp;

Executive director at Indian Oil Corp, Partha Ghosh, on Tuesday stated that crude oil demand in India is expected to grow to 500 million tonnes per year by 2040.

Executive director at Indian Oil Corp, Partha Ghosh, on Tuesday stated that crude oil demand in India is expected to grow to 500 million tonnes per year by 2040. The demand would be equivalent to around 10 million barrels per day (bpd), up from about 4.7 million bpd in 2017, news agency Reuters reported. The central government has been facing criticism over unabated escalating fuel prices in the country since the past few weeks. The BJP-led government has been blaming the rise in global crude prices for the rising fuel prices in the nation. Fuel prices in Delhi and Mumbai saw a fresh hike on Tuesday with petrol selling at Rs 82.86 per litre in Delhi and diesel at Rs 74.12 per litre. Petrol prices in the national capital today witnessed a rise of 14 paise whereas diesel rose by 10 paise. In Mumbai, petrol and diesel prices amounted to Rs 90.22 per litre and Rs 78.69 per litre, respectively. Meanwhile, Department of Economic Affairs Secretary Subhash Chandra Garg on Friday said that discussions are taking place with the United States regarding the reduction of oil imports from Iran. "We are in talks with the USA and they told us to reduce the import from Iran significantly. We have done that to some extent. As clarity in the situation emerges, steps will be taken accordingly by the government by November 4," he told ANI. (With inputs from agencies)

India's crude oil demand to hit 500 million tonnes by 2040: Report

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

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

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

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

Prices for petrol and diesel were cut by nine paise on Saturday.

In Delhi, petrol now costs Rs 78.20 a litre, and diesel costs Rs 69.11 per litre.

On Friday, price for petrol was Rs 78.29 per litre, while diesel price was Rs 69.20 a litre in the national capital.

The revised petrol prices in other metro cities are - Rs 80.84 in Kolkata, Rs 86.01 in Mumbai and Rs 81.19 in Chennai.

Meanwhile, the revised diesel prices in other metro cities are - Rs 71.66 in Kolkata, Rs 73.58 in Mumbai and 72.97 in Chennai.&nbsp

In Delhi, petrol now costs Rs 78.20 a litre, and diesel costs Rs 69.11 per litre

Prices for petrol and diesel were cut by nine paise on Saturday. In Delhi, petrol now costs Rs 78.20 a litre, and diesel costs Rs 69.11 per litre. On Friday, price for petrol was Rs 78.29 per litre, while diesel price was Rs 69.20 a litre in the national capital. The revised petrol prices in other metro cities are - Rs 80.84 in Kolkata, Rs 86.01 in Mumbai and Rs 81.19 in Chennai. Meanwhile, the revised diesel prices in other metro cities are - Rs 71.66 in Kolkata, Rs 73.58 in Mumbai and 72.97 in Chennai.

Petrol, diesel prices cut by 9 paise per litre

Crude oil futures lost more ground&nbsp;on Friday, with the US&nbsp;market set for a second week of decline on pressure from record US&nbsp;production and expectations of OPEC boosting output.

US&nbsp;West Texas Intermediate crude lost 16 cents, or 0.2 per cent, to $66.88 a barrel by 0423 GMT, after falling almost 2 per cent&nbsp;on Thursday.

Global benchmark Brent crude, which was little changed in the previous session, was down 9 cents, or 0.1 per cent, to $77.47 per barrel.

For the week, WTI is on track for a 1.5 per cent fall, adding to last week's near 5 per cent decline, while Brent is set to rise 1.3 per cent, widening the spread between the two benchmarks.

US&nbsp;crude production has been rising to record-high levels since late last year. In March it jumped 215,000 barrels per day (bpd) to 10.47 million bpd, a new monthly record, the Energy Information Administration (EIA) said&nbsp;on Thursday.

"US&nbsp;production is growing, the line is growing straight up when you look at US&nbsp;production," said Tony Nunan, oil risk manager at Mitsubishi Corp in Tokyo.

"The big thing is the increasing spread between Brent and WTI. Financially it makes sense for buyers to take WTI as it is so cheap."

On Thursday, the premium for Brent over WTI surpassed $11 a barrel, the largest since early 2015. It has doubled in less than a month, as a lack of pipeline capacity in the United States has trapped a lot of output inland.

"A drop in inventories in the US&nbsp;was overshadowed by US&nbsp;output which jumped to a record-high level," ANZ said in a note.

U.S. crude stockpiles fell 3.6 million barrels last week, the EIA said, exceeding expectations for a decline of 525,000 barrels.

Brent hit a three-week low below $75 a barrel&nbsp;on Monday&nbsp;after OPEC and its allies, including Russia, indicated they could adjust their deal to curb supplies and increase production, but recovered later in the week.

OPEC and non-OPEC producers have committed to cut output by 1.8 million bpd until the end of 2018, but are ready to make gradual supply adjustments to deal with shortages, a Gulf source familiar with Saudi thinking told Reuters late&nbsp;on Wednesday.

Sources told Reuters last week that Saudi Arabia, the effective leader of OPEC, and Russia were discussing boosting output by about 1 million bpd to compensate for losses in supply from Venezuela and to address concerns about the impact of U.S. sanctions on Iranian output.

Russia would be able to raise its oil output back to pre-cut levels within months if there is a decision to unwind the price-protection deal with OPEC and other producers, a Russian energy ministry official said.

Concerns about US&nbsp;bottlenecks are contributing to the decline in US&nbsp;futures as well. Prices for physical barrels of US&nbsp;light sweet crude delivered at Midland are at their largest discount to the benchmark US&nbsp;futures price in almost four years.

US West Texas Intermediate crude lost 16 cents, or 0.2 per cent, to $66.88 a barrel

Crude oil futures lost more ground on Friday, with the US market set for a second week of decline on pressure from record US production and expectations of OPEC boosting output. US West Texas Intermediate crude lost 16 cents, or 0.2 per cent, to $66.88 a barrel by 0423 GMT, after falling almost 2 per cent on Thursday. Global benchmark Brent crude, which was little changed in the previous session, was down 9 cents, or 0.1 per cent, to $77.47 per barrel. For the week, WTI is on track for a 1.5 per cent fall, adding to last week's near 5 per cent decline, while Brent is set to rise 1.3 per cent, widening the spread between the two benchmarks. US crude production has been rising to record-high levels since late last year. In March it jumped 215,000 barrels per day (bpd) to 10.47 million bpd, a new monthly record, the Energy Information Administration (EIA) said on Thursday. "US production is growing, the line is growing straight up when you look at US production," said Tony Nunan, oil risk manager at Mitsubishi Corp in Tokyo. "The big thing is the increasing spread between Brent and WTI. Financially it makes sense for buyers to take WTI as it is so cheap." On Thursday, the premium for Brent over WTI surpassed $11 a barrel, the largest since early 2015. It has doubled in less than a month, as a lack of pipeline capacity in the United States has trapped a lot of output inland. "A drop in inventories in the US was overshadowed by US output which jumped to a record-high level," ANZ said in a note. U.S. crude stockpiles fell 3.6 million barrels last week, the EIA said, exceeding expectations for a decline of 525,000 barrels. Brent hit a three-week low below $75 a barrel on Monday after OPEC and its allies, including Russia, indicated they could adjust their deal to curb supplies and increase production, but recovered later in the week. OPEC and non-OPEC producers have committed to cut output by 1.8 million bpd until the end of 2018, but are ready to make gradual supply adjustments to deal with shortages, a Gulf source familiar with Saudi thinking told Reuters late on Wednesday. Sources told Reuters last week that Saudi Arabia, the effective leader of OPEC, and Russia were discussing boosting output by about 1 million bpd to compensate for losses in supply from Venezuela and to address concerns about the impact of U.S. sanctions on Iranian output. Russia would be able to raise its oil output back to pre-cut levels within months if there is a decision to unwind the price-protection deal with OPEC and other producers, a Russian energy ministry official said. Concerns about US bottlenecks are contributing to the decline in US futures as well. Prices for physical barrels of US light sweet crude delivered at Midland are at their largest discount to the benchmark US futures price in almost four years.

Crude oil eases on record US production, OPEC supply hopes

The Sensex and Nifty rose slightly on Tuesday, helped by index heavyweight Larsen & Toubro Ltd on strong quarterly results and oil firms on declining crude prices.

However, gains were limited as financials declined. The NSE Bank Index slipped as much as 0.7 per cent after three straight sessions of gain, with ICICI Bank shedding nearly 2 percent.

"It's the continuation of Monday`s rally," said Hitesh Agarwal, EVP and head – retail research, Religare Broking.

"Correction in oil prices in the past couple of days have been a sentiment booster. However, it still remains a concern, hovering around $75 a barrel, as fuel prices are already very high," he said, adding that corporate earnings had been pretty good so far.

The broader Nifty was up 0.2 percent at 10,709.85 as of 0606 GMT, while the Sensex rose 0.13 percent to 35,212.50.

Shares of Larsen & Toubro rose as much as 3.5 per cent to their highest since Feb. 2, after the industrial group posted a 4.7 percent rise in quarterly net profit on Monday.

Shares of oil and gas companies extended their rally, with the Nifty Energy index rising for a third session in a row.&nbsp

Oil prices remained under pressure from expectations that Saudi Arabia and Russia would pump more crude to ease a potential shortfall in supply.&nbsp

Indian Oil Corp gained 1.9 percent, while Oil India Ltd climbed 3.5 percent.

Among losers, Vedanta Ltd plunged to its lowest since June 2017 after the southern state of Tamil Nadu ordered the permanent closure of a copper smelter run by its London-listed parent Vedanta Resources.

Aurobindo Pharma Ltd posted its sharpest intraday drop since November 2017, after the drugmaker reported March-quarter results below market expectations.

The Sensex and Nifty rose slightly on Tuesday, helped by index heavyweight Larsen & Toubro Ltd on strong quarterly results and oil firms on declining crude prices

The Sensex and Nifty rose slightly on Tuesday, helped by index heavyweight Larsen & Toubro Ltd on strong quarterly results and oil firms on declining crude prices. However, gains were limited as financials declined. The NSE Bank Index slipped as much as 0.7 per cent after three straight sessions of gain, with ICICI Bank shedding nearly 2 percent. "It's the continuation of Monday`s rally," said Hitesh Agarwal, EVP and head – retail research, Religare Broking. "Correction in oil prices in the past couple of days have been a sentiment booster. However, it still remains a concern, hovering around $75 a barrel, as fuel prices are already very high," he said, adding that corporate earnings had been pretty good so far. The broader Nifty was up 0.2 percent at 10,709.85 as of 0606 GMT, while the Sensex rose 0.13 percent to 35,212.50. Shares of Larsen & Toubro rose as much as 3.5 per cent to their highest since Feb. 2, after the industrial group posted a 4.7 percent rise in quarterly net profit on Monday. Shares of oil and gas companies extended their rally, with the Nifty Energy index rising for a third session in a row. Oil prices remained under pressure from expectations that Saudi Arabia and Russia would pump more crude to ease a potential shortfall in supply. Indian Oil Corp gained 1.9 percent, while Oil India Ltd climbed 3.5 percent. Among losers, Vedanta Ltd plunged to its lowest since June 2017 after the southern state of Tamil Nadu ordered the permanent closure of a copper smelter run by its London-listed parent Vedanta Resources. Aurobindo Pharma Ltd posted its sharpest intraday drop since November 2017, after the drugmaker reported March-quarter results below market expectations.

Sensex, Nifty inch higher; L&T top boost

The Petrol and Diesel prices are soaring and they are almost at the all-time highest level. Being the most essential commodity, Petroleum has been the favourite domain for the politicians for the slugfest.

With rising price, opposition parties got a much-awaited issue to put Government of India on backfoot. Rahul Gandhi is throwing a challenge to Modi for reducing prices. On the same time BJP's media cell is active too and these days social media is full of stuff proclaiming that how prices of petroleum products surged during UPA regime (2004-2014) and how Modi has been able to rein them in.

But if you go in a bit deep in the realities of this sector, you will find that all these claims and blames are simply bereft of any logic and they are rather hilarious. Indian Oil & Gas sector is in a state currently that any government can do little to tame price in the shorter run.

With rapid economic growth, India has become an energy guzzler over the past 10-15 years and currently, it is the third largest consumer of energy after USA and China. India consumes around 200 MMT (Million Metric Tonne) of petroleum crude oil per year and around 80 per cent of this is being imported on the international price.&nbsp;

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<h5>The prices of petroleum products are done on import parity and after adding due taxes and dealer’s commissions, MRP is fixed</h5>
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The prices of petroleum products are done on import parity and after adding due taxes and dealer's commissions, MRP is fixed. Therefore MRP of Petrol and Diesel are linked with international prices of crude oil.

Since we (GOI) can't control the crude price and bound to pay it, the ways to tame MRP is either by reducing taxes or by forcing Oil PSUs to sell products with under-recoveries (basically selling with a loss). Both of these ways would be like feeding gulab jamun to a patient with diabetes. Mean, these measures will give short-term pleasure but they will inflict serious long-term complications.

Cutting taxes would disturb the fiscal discipline which Modi/GOI could bring to an extent over the past four years and would hamper GOI's huge infra push and other planned expenditure.

Forcing under-recoveries (which UPA-2 did for purely political reasons) to Oil companies would only make these companies sick for days to come, restrict the Capex infusion in this sector and of course it cannot last long.

All government can do (that too to silence opposition) in the short term is that it can give some relief by way of slashing tax but it can't make a huge impact on the selling price. Forcing under-recoveries would be the last thing, which Modi/GOI should and would exercise (in case of crude price further takes heavy jump).

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The government should work to take measures to bring strength in this sector in long run. After Modi came to power, GOI has made its oil exploration policy more transparent and business friendly but impact of this on ground would be visible only after many years and that too will not be decisive as the gap between demand and supply is huge and no way India is in the position to multiply its oil production even in the long run.&nbsp;

OPEC (Organization of Petroleum Exporting Countries) is the international body, who plays the prominent role in fixing crude oil price and country like India are bound to pay it.

So the bottom line is that let the politician enjoy the blame and claim game, the onus to live with the problem and withstand with it lies with us, the citizens only. Don't expect a miracle from anybody to get the reprieve. We need to be a judicious energy consumer and take the high petroleum prices as a hard and unavoidable reality.

We can sum up like this. If you are getting petroleum product cheap (like in 2014-16), the government is an accidental hero or otherwise it is an unlucky victim of the situation.

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

The prices of petroleum products are done on import parity and after adding due taxes and dealer's commissions, MRP is fixed

The Petrol and Diesel prices are soaring and they are almost at the all-time highest level. Being the most essential commodity, Petroleum has been the favourite domain for the politicians for the slugfest. With rising price, opposition parties got a much-awaited issue to put Government of India on backfoot. Rahul Gandhi is throwing a challenge to Modi for reducing prices. On the same time BJP's media cell is active too and these days social media is full of stuff proclaiming that how prices of petroleum products surged during UPA regime (2004-2014) and how Modi has been able to rein them in. But if you go in a bit deep in the realities of this sector, you will find that all these claims and blames are simply bereft of any logic and they are rather hilarious. Indian Oil & Gas sector is in a state currently that any government can do little to tame price in the shorter run. With rapid economic growth, India has become an energy guzzler over the past 10-15 years and currently, it is the third largest consumer of energy after USA and China. India consumes around 200 MMT (Million Metric Tonne) of petroleum crude oil per year and around 80 per cent of this is being imported on the international price. The prices of petroleum products are done on import parity and after adding due taxes and dealer’s commissions, MRP is fixed × The prices of petroleum products are done on import parity and after adding due taxes and dealer's commissions, MRP is fixed. Therefore MRP of Petrol and Diesel are linked with international prices of crude oil. Since we (GOI) can't control the crude price and bound to pay it, the ways to tame MRP is either by reducing taxes or by forcing Oil PSUs to sell products with under-recoveries (basically selling with a loss). Both of these ways would be like feeding gulab jamun to a patient with diabetes. Mean, these measures will give short-term pleasure but they will inflict serious long-term complications. Cutting taxes would disturb the fiscal discipline which Modi/GOI could bring to an extent over the past four years and would hamper GOI's huge infra push and other planned expenditure. Forcing under-recoveries (which UPA-2 did for purely political reasons) to Oil companies would only make these companies sick for days to come, restrict the Capex infusion in this sector and of course it cannot last long. All government can do (that too to silence opposition) in the short term is that it can give some relief by way of slashing tax but it can't make a huge impact on the selling price. Forcing under-recoveries would be the last thing, which Modi/GOI should and would exercise (in case of crude price further takes heavy jump). The government should work to take measures to bring strength in this sector in long run × The government should work to take measures to bring strength in this sector in long run. After Modi came to power, GOI has made its oil exploration policy more transparent and business friendly but impact of this on ground would be visible only after many years and that too will not be decisive as the gap between demand and supply is huge and no way India is in the position to multiply its oil production even in the long run. OPEC (Organization of Petroleum Exporting Countries) is the international body, who plays the prominent role in fixing crude oil price and country like India are bound to pay it. So the bottom line is that let the politician enjoy the blame and claim game, the onus to live with the problem and withstand with it lies with us, the citizens only. Don't expect a miracle from anybody to get the reprieve. We need to be a judicious energy consumer and take the high petroleum prices as a hard and unavoidable reality. We can sum up like this. If you are getting petroleum product cheap (like in 2014-16), the government is an accidental hero or otherwise it is an unlucky victim of the situation. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: Rising petrol prices - the onus is on the citizens

US&nbspstocks dropped on Thursday, but were well off the session lows hit after President Donald Trump cancelled a summit with North Korea's Kim Jong Un and threatened to impose tariffs on auto imports.

Trump cancelled the June 12 meeting citing Pyongyang's "open hostility,", even after North Korea followed through on a pledge to blow up tunnels at its nuclear test site.

The market, already lower due to a slide in oil prices and worries over Trump ordering a national security investigation into car and truck imports, dropped sharply after the meeting was called off.

The autos probe, ordered on Wednesday, could lead to new tariffs and China called the move an "abuse" of the national security clauses and said it would defend its interests.

Market participants said the drop after the summit was cancelled was a knee-jerk reaction.&nbsp

"Really not sure why people are looking at it so negatively, except when world politics is unstable, investors` knee-jerk reaction is to sell first and ask questions later," said Rick Meckler, partner, Cherry Lane Investments, a

family investment office in New Vernon, New Jersey.

"The bigger news has really been the proposed tariffs on foreign cars, the administration provides so much potential change everyday, that it's difficult for investors to see consistency to the economic future."

At 13:24 pm&nbspET, the Dow Jones Industrial Average was down 64.85 points, or 0.26 per cent, at 24,821.96, the S&P 500 was down 4.23 points, or 0.15 per cent, at 2,729.06 and the Nasdaq Composite was up 1.98 points, or 0.03 per cent, at 7,427.94.

Earlier in the session the blue chip Dow fell as much as 1.1 per cent to touch a two-week low.

Defense stocks jumped after Trump called off the North Korea meeting and warned that the US&nbspmilitary was ready in the event of any reckless acts by North Korea.

Seven of the 11 major S&P sectors were in the red, with financials dropping 0.67 per cent.

The big banks were trading lower as the minutes from the Federal Reserve`s latest meeting tempered expectations of faster interest rate hikes.

The energy sector fell 1.25 per cent alongside a slide in oil prices.

US&nbspcrude future declined about 1 per cent, with expectations building that OPEC could wind down an output deal due to concerns about supplies from Venezuela and Iran.&nbsp

Ford and General Motors gained on the possibility of tariffs on European and Asian car imports. US-listed shares of Fiat fell 1.5 per cent.

Best Buy Co tumbled 7.5 per cent after the consumer electronics retailer reported a slowdown in quarterly online sales and did not update its full-year outlook.

Advancing issues outnumbered decliners by a 1.01-to-1 ratio on the NYSE and for a 1.02-to-1 ratio on the Nasdaq.

The S&P index recorded 19 new 52-week highs and one new low, while the Nasdaq recorded 89 new highs and 37 new lows.

Trump cancelled the June 12 meeting citing Pyongyang's "open hostility,", even after North Korea followed through on a pledge to blow up tunnels at its nuclear test site

US&nbspstocks dropped on Thursday, but were well off the session lows hit after President Donald Trump cancelled a summit with North Korea's Kim Jong Un and threatened to impose tariffs on auto imports. Trump cancelled the June 12 meeting citing Pyongyang's "open hostility,", even after North Korea followed through on a pledge to blow up tunnels at its nuclear test site. The market, already lower due to a slide in oil prices and worries over Trump ordering a national security investigation into car and truck imports, dropped sharply after the meeting was called off. The autos probe, ordered on Wednesday, could lead to new tariffs and China called the move an "abuse" of the national security clauses and said it would defend its interests. Market participants said the drop after the summit was cancelled was a knee-jerk reaction. "Really not sure why people are looking at it so negatively, except when world politics is unstable, investors` knee-jerk reaction is to sell first and ask questions later," said Rick Meckler, partner, Cherry Lane Investments, a family investment office in New Vernon, New Jersey. "The bigger news has really been the proposed tariffs on foreign cars, the administration provides so much potential change everyday, that it's difficult for investors to see consistency to the economic future." At 13:24 pm&nbspET, the Dow Jones Industrial Average was down 64.85 points, or 0.26 per cent, at 24,821.96, the S&P 500 was down 4.23 points, or 0.15 per cent, at 2,729.06 and the Nasdaq Composite was up 1.98 points, or 0.03 per cent, at 7,427.94. Earlier in the session the blue chip Dow fell as much as 1.1 per cent to touch a two-week low. Defense stocks jumped after Trump called off the North Korea meeting and warned that the US&nbspmilitary was ready in the event of any reckless acts by North Korea. Seven of the 11 major S&P sectors were in the red, with financials dropping 0.67 per cent. The big banks were trading lower as the minutes from the Federal Reserve`s latest meeting tempered expectations of faster interest rate hikes. The energy sector fell 1.25 per cent alongside a slide in oil prices. US&nbspcrude future declined about 1 per cent, with expectations building that OPEC could wind down an output deal due to concerns about supplies from Venezuela and Iran. Ford and General Motors gained on the possibility of tariffs on European and Asian car imports. US-listed shares of Fiat fell 1.5 per cent. Best Buy Co tumbled 7.5 per cent after the consumer electronics retailer reported a slowdown in quarterly online sales and did not update its full-year outlook. Advancing issues outnumbered decliners by a 1.01-to-1 ratio on the NYSE and for a 1.02-to-1 ratio on the Nasdaq. The S&P index recorded 19 new 52-week highs and one new low, while the Nasdaq recorded 89 new highs and 37 new lows.

Wall Street dips after Trump cancels North Korea summit, targets car imports

Oil&nbsp;rose&nbsp;towards&nbsp;$80 a barrel on Tuesday, supported by concern that falling Venezuelan crude output and a potential drop in Iranian exports could further tighten global supply.

Crude is trading at the highest since late 2014, underpinned by a&nbsp;supply-cutting deal among the Organization of the Petroleum Exporting Countries plus Russia and other non-members, and strong global demand.

Brent crude, the global benchmark, rose 54 cents to $79.76 a barrel by 1221 GMT. Last week, it topped $80 for the first time since November 2014.

US&nbsp;crude was up 31 cents at $72.55, having earlier traded at $72.72, its highest since November 2014.

"The solid global economy, selected&nbsp;supply&nbsp;disruptions and the upbeat market mood in particular in&nbsp;oil&nbsp;frame a positive environment," said Norbert Ruecker, head of commodities and macro research at Julius Baer.

The US&nbsp;government imposed new sanctions on Venezuela following Sunday's re-election of President Nicolas Maduro, a move that analysts say could further curb the country's&nbsp;oil&nbsp;output already at its lowest in decades.

"We can expect continued falling Venezuelan production," said Tony Nunan,&nbsp;oil&nbsp;risk manager at Mitsubishi Corporation in Tokyo.

Concern about a potential drop in Iranian&nbsp;oil&nbsp;exports following Washington's exit from a nuclear deal with Tehran and the threat of US&nbsp;sanctions is also supporting prices. On Monday, the United States hardened its approach to Iran.

Venezuela and Iran are members of OPEC, which with its allies has curbed production since January 2017 to get rid of a&nbsp;supply&nbsp;glut that in mid-2014 led to a price collapse.

Due in part to the involuntary drop in Venezuela's output, OPEC is over-delivering on the agreement. Saudi Arabia and other major OPEC producers could, in theory, add more&nbsp;supply, but have yet to do so.

The OPEC-led&nbsp;supply&nbsp;curbs have largely cleared an inventory surplus in industrialised countries based on the deal's original goals, and stocks continue to decline.

US&nbsp;crude stockpiles are forecast to have declined by 2.8 million barrels last week, a third straight weekly fall. The American Petroleum Institute's inventory report for the period is due at 2030 GMT.

Limiting the upward pressure on prices is rising&nbsp;supply&nbsp;in the United States, where shale production is forecast to hit a record high in June.

Crude oil is trading at the highest since late 2014, underpinned by a supply-cutting deal among the Organization of the Petroleum Exporting Countries plus Russia and other non-members, and strong global demand

Oil rose towards $80 a barrel on Tuesday, supported by concern that falling Venezuelan crude output and a potential drop in Iranian exports could further tighten global supply. Crude is trading at the highest since late 2014, underpinned by a supply-cutting deal among the Organization of the Petroleum Exporting Countries plus Russia and other non-members, and strong global demand. Brent crude, the global benchmark, rose 54 cents to $79.76 a barrel by 1221 GMT. Last week, it topped $80 for the first time since November 2014. US crude was up 31 cents at $72.55, having earlier traded at $72.72, its highest since November 2014. "The solid global economy, selected supply disruptions and the upbeat market mood in particular in oil frame a positive environment," said Norbert Ruecker, head of commodities and macro research at Julius Baer. The US government imposed new sanctions on Venezuela following Sunday's re-election of President Nicolas Maduro, a move that analysts say could further curb the country's oil output already at its lowest in decades. "We can expect continued falling Venezuelan production," said Tony Nunan, oil risk manager at Mitsubishi Corporation in Tokyo. Concern about a potential drop in Iranian oil exports following Washington's exit from a nuclear deal with Tehran and the threat of US sanctions is also supporting prices. On Monday, the United States hardened its approach to Iran. Venezuela and Iran are members of OPEC, which with its allies has curbed production since January 2017 to get rid of a supply glut that in mid-2014 led to a price collapse. Due in part to the involuntary drop in Venezuela's output, OPEC is over-delivering on the agreement. Saudi Arabia and other major OPEC producers could, in theory, add more supply, but have yet to do so. The OPEC-led supply curbs have largely cleared an inventory surplus in industrialised countries based on the deal's original goals, and stocks continue to decline. US crude stockpiles are forecast to have declined by 2.8 million barrels last week, a third straight weekly fall. The American Petroleum Institute's inventory report for the period is due at 2030 GMT. Limiting the upward pressure on prices is rising supply in the United States, where shale production is forecast to hit a record high in June.

Oil rises towards $80 as supply concerns mount

Even as monsoon is predicted to be normal this year, its uneven distribution could spike food prices, and inflation is likely to edge further, says a report.

According to Dun & Bradstreet, rising fuel prices in India, which touched an all-time high, is likely to feed into other segments and keep the rate of inflation higher.

D&B expects CPI inflation to be in the range of 4.6-4.7 per cent and WPI inflation around 3.6-3.8 per cent this month.

"The assumption of a normal monsoon has been one of the primary factors considered for improvement in demand in the current year.&nbsp

"However, spatial distribution of rainfall needs to be monitored carefully before setting in firm expectations as uneven distribution of rainfall could flare up food inflation," said Arun Singh, Lead Economist D&B India.

Moreover, factors like geopolitical risks, escalating tensions in global trade, volatility in international crude oil prices and sharp depreciation in rupee underline the upside risk to inflation.

"Domestically, we look forward for the government to fulfil its commitment to revive investments, execute infrastructure projects and continue the policy momentum," Singh said.

The report further said the consistent growth clocked by the capital and infrastructure goods sector is likely to support the IIP growth rates going ahead.

D&B expects Index of Industrial Production (IIP) to have grown by 6.5-7.5 per cent during April this year.

The report further said the consistent growth clocked by the capital and infrastructure goods sector is likely to support the IIP growth rates going ahead.

Even as monsoon is predicted to be normal this year, its uneven distribution could spike food prices, and inflation is likely to edge further, says a report. According to Dun & Bradstreet, rising fuel prices in India, which touched an all-time high, is likely to feed into other segments and keep the rate of inflation higher. D&B expects CPI inflation to be in the range of 4.6-4.7 per cent and WPI inflation around 3.6-3.8 per cent this month. "The assumption of a normal monsoon has been one of the primary factors considered for improvement in demand in the current year. "However, spatial distribution of rainfall needs to be monitored carefully before setting in firm expectations as uneven distribution of rainfall could flare up food inflation," said Arun Singh, Lead Economist D&B India. Moreover, factors like geopolitical risks, escalating tensions in global trade, volatility in international crude oil prices and sharp depreciation in rupee underline the upside risk to inflation. "Domestically, we look forward for the government to fulfil its commitment to revive investments, execute infrastructure projects and continue the policy momentum," Singh said. The report further said the consistent growth clocked by the capital and infrastructure goods sector is likely to support the IIP growth rates going ahead. D&B expects Index of Industrial Production (IIP) to have grown by 6.5-7.5 per cent during April this year.

Uneven monsoon could spike food prices, inflation to edge higher: Report

As the world waits for US President Donald Trump’s decision on the Iran nuclear deal, the Gulf oil diplomacy is in full play.

Reports say the Saudi Arabia is backing sanctions on Iran as it wants to push crude prices to around $100 a barrel.

Analysts believe Saudi Arabia aims to see much higher oil prices to overcome its domestic financial difficulties and raise the valuation of state oil giant Aramco ahead of a planned five-per cent IPO.

Rising crude will give a high valuation to Aramco, thereby giving more money to Saudi government. Saudi Aramco had net income of $33.8 billion in the first six months of 2017 and cash flows of $52.1 billion. Crown Prince Mohammed bin Salman, who has made the Aramco IPO a cornerstone of Saudi economic 2030 reform, wants to raise a record $100 billion by selling a five per cent stake in the company on local and foreign exchanges.

It would give Aramco a market capitalisation of $2 trillion, the biggest achieved by any company and dwarfing peers such as Exxon Mobil and Royal Dutch Shell.

After prices hit $70 a barrel, the kingdom "is thought to be unofficially gunning for $80 a barrel, with some even suggesting that it favours a return to $100 (a barrel) oil", Stephen Brennock of PVM Oil Associates said.

"As well as helping to reduce the Saudi government balance sheet, a further spike in prices would act as a boon for the impending Aramco IPO," Brennock said.

"This is why Saudi Arabia is intentionally keeping the supply of oil tight," German banking and financial services company Commerzbank said.

Iran, on the other hand, does not support the relentless rise in crude prices and has already signalled a sharp split with regional foe Saudi Arabia that wants high crude prices.

Iran believes that $60 to $65 a barrel constitutes a “suitable price” for oil. But its outlook contrasts sharply with the Saudi-led organization of the petroleum exporting countries or OPEC, which is targeting prices closer to $80 a barrel.

The OPEC, however, does not have a price target for oil. "We never have a price target ... Prices are determined by the market," said Saudi Energy Minister Khaled al-Faleh who warned against the danger of price fluctuations, saying "volatility is our enemy."

OPEC and non-OPEC producers struck a deal in late 2016 to trim production by 1.8 million barrels per day to reduce a global glut that sent prices crashing.

The deal, which is due to run out at the end of this year, has helped boost oil prices to above $70 a barrel from below $30 in early 2016.

Iran does not support the relentless rise in crude prices.

As the world waits for US President Donald Trump’s decision on the Iran nuclear deal, the Gulf oil diplomacy is in full play. Reports say the Saudi Arabia is backing sanctions on Iran as it wants to push crude prices to around $100 a barrel. Analysts believe Saudi Arabia aims to see much higher oil prices to overcome its domestic financial difficulties and raise the valuation of state oil giant Aramco ahead of a planned five-per cent IPO. Rising crude will give a high valuation to Aramco, thereby giving more money to Saudi government. Saudi Aramco had net income of $33.8 billion in the first six months of 2017 and cash flows of $52.1 billion. Crown Prince Mohammed bin Salman, who has made the Aramco IPO a cornerstone of Saudi economic 2030 reform, wants to raise a record $100 billion by selling a five per cent stake in the company on local and foreign exchanges. It would give Aramco a market capitalisation of $2 trillion, the biggest achieved by any company and dwarfing peers such as Exxon Mobil and Royal Dutch Shell. After prices hit $70 a barrel, the kingdom "is thought to be unofficially gunning for $80 a barrel, with some even suggesting that it favours a return to $100 (a barrel) oil", Stephen Brennock of PVM Oil Associates said. "As well as helping to reduce the Saudi government balance sheet, a further spike in prices would act as a boon for the impending Aramco IPO," Brennock said. "This is why Saudi Arabia is intentionally keeping the supply of oil tight," German banking and financial services company Commerzbank said. Iran, on the other hand, does not support the relentless rise in crude prices and has already signalled a sharp split with regional foe Saudi Arabia that wants high crude prices. Iran believes that $60 to $65 a barrel constitutes a “suitable price” for oil. But its outlook contrasts sharply with the Saudi-led organization of the petroleum exporting countries or OPEC, which is targeting prices closer to $80 a barrel. The OPEC, however, does not have a price target for oil. "We never have a price target ... Prices are determined by the market," said Saudi Energy Minister Khaled al-Faleh who warned against the danger of price fluctuations, saying "volatility is our enemy." OPEC and non-OPEC producers struck a deal in late 2016 to trim production by 1.8 million barrels per day to reduce a global glut that sent prices crashing. The deal, which is due to run out at the end of this year, has helped boost oil prices to above $70 a barrel from below $30 in early 2016.

Ahead of US decision on Iran deal, a look at Gulf oil diplomacy

Oil prices rose about 2 per cent on Friday with US&nbsp;crude hitting its highest in more than three years as global supplies remained tight and the market awaited news from Washington on possible new US&nbsp;sanctions against Iran.

The May 12 deadline for announcements on potential new US&nbsp;sanctions on Iran bolstered the market, said Bob Yawger, director at Mizuho.&nbsp;

"You have the May 12 Iran and Trump headlines that support the market," he said.&nbsp;

US&nbsp;light crude was $1.45 higher at $69.88 per barrel by 12:18 p.m. EDT (1718 GMT), after touching a session high of $69.97, its highest since November 2014. It was on track to gain just over 1.5 per cent on the week.

Brent crude oil was up $1.35 at $74.98 a barrel. The global benchmark hit a 3-1/2-year closing high of $75.17 on Monday. The contract was set to end the week up 0.4 per cent.

Investors are concerned that sanctions against Iran could cut oil supplies.

Iran`s foreign minister said on Thursday that US&nbsp;demands to change its 2015 nuclear agreement with world powers were unacceptable as a deadline set by President Donald Trump for Europeans to "fix" the deal loomed.

Trump has said that unless European allies rectify the "terrible flaws" in the international accord by May 12, he will refuse to extend US&nbsp;sanctions relief for the oil-producing Islamic Republic.

European powers still want to hand Trump a plan to save the Iran nuclear deal next week. But they have also started work on protecting EU-Iranian business ties if the US&nbsp;president makes good on a threat to withdraw.

Iran resumed its role as a major oil exporter in January 2016 when international sanctions against Tehran were lifted in return for curbs on Iran`s nuclear programme.

Aside from security concerns, growing US&nbsp;crude supplies are capping price gains.

Surging production in the Permian shale basin is outpacing pipeline capacity, while local refining issues have exacerbated oversupply in the region.

The United States now produces more crude oil than top exporter Saudi Arabia.

US&nbsp;inventory builds have been bearish for the past two weeks, limiting the market's upside. The weekly rig count from Baker Hughes, an indicator of forward-looking production, is scheduled to be released at 1 pm&nbsp;on Friday.&nbsp;

ANZ analysts Daniel Hynes and Soni Kumari said Brent could reach $80 a barrel by the end of this year, attributing recent strength to rising geopolitical risks and tighter global supply.

"We expect the market to tighten even further in second half 2018," they wrote in a note to clients.

Oil prices rose about 2 per cent on Friday with US crude hitting its highest in more than three years

Oil prices rose about 2 per cent on Friday with US crude hitting its highest in more than three years as global supplies remained tight and the market awaited news from Washington on possible new US sanctions against Iran. The May 12 deadline for announcements on potential new US sanctions on Iran bolstered the market, said Bob Yawger, director at Mizuho. "You have the May 12 Iran and Trump headlines that support the market," he said. US light crude was $1.45 higher at $69.88 per barrel by 12:18 p.m. EDT (1718 GMT), after touching a session high of $69.97, its highest since November 2014. It was on track to gain just over 1.5 per cent on the week. Brent crude oil was up $1.35 at $74.98 a barrel. The global benchmark hit a 3-1/2-year closing high of $75.17 on Monday. The contract was set to end the week up 0.4 per cent. Investors are concerned that sanctions against Iran could cut oil supplies. Iran`s foreign minister said on Thursday that US demands to change its 2015 nuclear agreement with world powers were unacceptable as a deadline set by President Donald Trump for Europeans to "fix" the deal loomed. Trump has said that unless European allies rectify the "terrible flaws" in the international accord by May 12, he will refuse to extend US sanctions relief for the oil-producing Islamic Republic. European powers still want to hand Trump a plan to save the Iran nuclear deal next week. But they have also started work on protecting EU-Iranian business ties if the US president makes good on a threat to withdraw. Iran resumed its role as a major oil exporter in January 2016 when international sanctions against Tehran were lifted in return for curbs on Iran`s nuclear programme. Aside from security concerns, growing US crude supplies are capping price gains. Surging production in the Permian shale basin is outpacing pipeline capacity, while local refining issues have exacerbated oversupply in the region. The United States now produces more crude oil than top exporter Saudi Arabia. US inventory builds have been bearish for the past two weeks, limiting the market's upside. The weekly rig count from Baker Hughes, an indicator of forward-looking production, is scheduled to be released at 1 pm on Friday. ANZ analysts Daniel Hynes and Soni Kumari said Brent could reach $80 a barrel by the end of this year, attributing recent strength to rising geopolitical risks and tighter global supply. "We expect the market to tighten even further in second half 2018," they wrote in a note to clients.

Oil hits highest since November 2014 as Iran tensions mount

The growth of eight core sectors slowed to 3-month low of 4.1 per cent in March due to weak performance in as many as six sectors including coal, crude oil and natural gas. 
 
The other sectors which showed slower growth rate were refinery products, steel and electricity. 
 
The growth rate of eight infrastructure sectors, which also include fertilisers and cement, was 5.2 per cent in March 2017, according to the data released by the commerce and industry ministry today. 
 
The previous low was in the core sectors was 3.8 per cent in December 2017. 
 
Cumulatively, the eight core sectors grew by 4.2 per cent in 2017-18, lowest in the last three financial years. Their rate of growth was 4.8 per cent in the previous fiscal and 3 per cent in 2015-16.

The&nbsp;core sector&nbsp;would have an impact on the Index of Industrial Production (IIP) data as these eight segments account for about 41 per cent of the total factory output. 
 
Output growth rate of only fertliser and cement reported healthy numbers. Both the sectors grew by 3.2 per cent and 13 per cent respectively in March.

On the other hand, coal, natural gas, refinery products and steel production growth slowed to 9.1 per cent (as against 10.6 per cent in March 2017), 1.3 per cent, 1 per cent, 4.7 per cent (as against 11 per cent a year ago) respectively during the month under review. 
 
Electricity generation growth rate too decelerated to 4.5 per cent as against 6.2 per cent in March 2017. 
 
Crude oil recorded a negative rate of growth of 1.6 per cent in March this year.

Cumulatively, the eight core sectors grew by 4.2 per cent in 2017-18, lowest in the last three financial years. Their rate of growth was 4.8 per cent in the previous fiscal

The growth of eight core sectors slowed to 3-month low of 4.1 per cent in March due to weak performance in as many as six sectors including coal, crude oil and natural gas. The other sectors which showed slower growth rate were refinery products, steel and electricity. The growth rate of eight infrastructure sectors, which also include fertilisers and cement, was 5.2 per cent in March 2017, according to the data released by the commerce and industry ministry today. The previous low was in the core sectors was 3.8 per cent in December 2017. Cumulatively, the eight core sectors grew by 4.2 per cent in 2017-18, lowest in the last three financial years. Their rate of growth was 4.8 per cent in the previous fiscal and 3 per cent in 2015-16. The core sector would have an impact on the Index of Industrial Production (IIP) data as these eight segments account for about 41 per cent of the total factory output. Output growth rate of only fertliser and cement reported healthy numbers. Both the sectors grew by 3.2 per cent and 13 per cent respectively in March. On the other hand, coal, natural gas, refinery products and steel production growth slowed to 9.1 per cent (as against 10.6 per cent in March 2017), 1.3 per cent, 1 per cent, 4.7 per cent (as against 11 per cent a year ago) respectively during the month under review. Electricity generation growth rate too decelerated to 4.5 per cent as against 6.2 per cent in March 2017. Crude oil recorded a negative rate of growth of 1.6 per cent in March this year.

Core sector growth rate slowed to 3-month low of 4.1% in March

The combined Index of Industrial Production (IIP) of Eight Core Industries stood 5.3 percent higher in February this year, compared to the same period last year, the government said on Monday.

As per official data from the Ministry of Commerce and Industry, the combined index for the core sectors stood at 123.1 in February this year, which was 5.3 percent higher as compared to the index of February last year. Furthermore, its cumulative growth during April to February 2017-18 was 4.3 percent, the data revealed.

-Coal production increased by 1.4 per cent in February, 2018 over February, 2017, and its cumulative index increased by 1.6 per cent during April to February, 2017-18 over the corresponding period of the previous year.

-Crude Oil production declined by 2.4 per cent in February, 2018 over February, 2017 and its cumulative index declined by 0.8 per cent during April to February, 2017-18 over the corresponding period last year.

-Natural Gas production declined by 1.5 per cent in February, 2018 over February, 2017, and its cumulative index increased by 3.1 per cent during April to February, 2017-18 over the corresponding period of previous year.

Among refinery products, petroleum refinery production was up by 7.8 per cent in February, 2018 over February, 2017, while its cumulative index increased by 4.9 per cent during April to February, 2017-18 over the corresponding period of previous year.

Furthermore, fertilizer production increased by 5.3 per cent in February, 2018 over February, 2017. However, the cumulative index declined by 0.2 per cent during April to February, 2017-18 over the corresponding period last year.

Steel production increased by five per cent in February, 2018 over February last year, while its cumulative index increased by 5.9 per cent during April to February 2017-18. Additionally, cement production increased by 22.9 per cent in February, 2018 over February last year. However, its cumulative index increased by 5.7 per cent during April to February, 2017-18 over the corresponding period of previous year.

Meanwhile, electricity generation increased by 4 per cent in February over the same month last year, while its cumulative index increased year-on-year by 5.2 per cent during April to February, 2017-18.&nbsp;

&nbsp;

As per official data from the Ministry of Commerce and Industry, the combined index for the core sectors stood at 123.1 in February this year, which was 5.3 percent higher as compared to the index of February last year. Furthermore, its cumulative growth during April to February 2017-18 was 4.3 percent, the data revealed.

The combined Index of Industrial Production (IIP) of Eight Core Industries stood 5.3 percent higher in February this year, compared to the same period last year, the government said on Monday. As per official data from the Ministry of Commerce and Industry, the combined index for the core sectors stood at 123.1 in February this year, which was 5.3 percent higher as compared to the index of February last year. Furthermore, its cumulative growth during April to February 2017-18 was 4.3 percent, the data revealed. -Coal production increased by 1.4 per cent in February, 2018 over February, 2017, and its cumulative index increased by 1.6 per cent during April to February, 2017-18 over the corresponding period of the previous year. -Crude Oil production declined by 2.4 per cent in February, 2018 over February, 2017 and its cumulative index declined by 0.8 per cent during April to February, 2017-18 over the corresponding period last year. -Natural Gas production declined by 1.5 per cent in February, 2018 over February, 2017, and its cumulative index increased by 3.1 per cent during April to February, 2017-18 over the corresponding period of previous year. Among refinery products, petroleum refinery production was up by 7.8 per cent in February, 2018 over February, 2017, while its cumulative index increased by 4.9 per cent during April to February, 2017-18 over the corresponding period of previous year. Furthermore, fertilizer production increased by 5.3 per cent in February, 2018 over February, 2017. However, the cumulative index declined by 0.2 per cent during April to February, 2017-18 over the corresponding period last year. Steel production increased by five per cent in February, 2018 over February last year, while its cumulative index increased by 5.9 per cent during April to February 2017-18. Additionally, cement production increased by 22.9 per cent in February, 2018 over February last year. However, its cumulative index increased by 5.7 per cent during April to February, 2017-18 over the corresponding period of previous year. Meanwhile, electricity generation increased by 4 per cent in February over the same month last year, while its cumulative index increased year-on-year by 5.2 per cent during April to February, 2017-18.

Core sectors register 5.3% IIP growth in February

Oil markets edged up on Monday on the back of a drop in the number of US rigs drilling for more production and as the US economy continued to create jobs, which industry hopes will drive higher fuel demand.

US West Texas Intermediate (WTI) crude futures were at $62.10 a barrel at 0407 GMT, up 6 cents, or 0.1 per cent.

Brent crude futures were at $65.58 per barrel, up 9 cents, or 0.1 per cent, from their previous close.

&quot;A falling rig count and the strong employment data may have helped support prices,&quot; said William O&#39;Loughlin, investment analyst at Rivkin Securities.

The US economy added the biggest number of jobs in more than 1-1/2 years in February, with non-farm payrolls jumping by 313,000 jobs last month, the Labor Department said on Friday.

In oil markets, US energy companies last week cut oil rigs for the first time in almost two months, with drillers cutting back four rigs, to 796, Baker Hughes energy services firm said on Friday.

Despite the lower rig count, which is an early indicator of future output, activity remains much higher than a year ago when, when just 617 rigs were active, and most analysts expect US crude oil production, which has already risen by over a fifth since mid-2016, to 10.37 million barrels per day (bpd), to rise further.

That&#39;s more than top exporter Saudi Arabia producers and almost as much as Russia pumps out, at nearly 11 million bpd.

Singapore-based brokerage Phillip Futures said that the oil market &quot;will focus on OPEC and IEA (monthly) reports this week for a sensing on global demand/supply levels for crude oil&quot; and that &quot;items in focus will include OECD commercial stock levels, revision in global demand and supply for crude oil and OPEC&#39;s compliance on production levels&quot;.

The Organization of the Petroleum Exporting Countries (OPEC), together with a group of other producers led by Russia, has been withholding production since the start of 2017 to prop up prices.

The US economy continued to create jobs, which industry hopes will drive higher fuel demand

Oil markets edged up on Monday on the back of a drop in the number of US rigs drilling for more production and as the US economy continued to create jobs, which industry hopes will drive higher fuel demand. US West Texas Intermediate (WTI) crude futures were at $62.10 a barrel at 0407 GMT, up 6 cents, or 0.1 per cent. Brent crude futures were at $65.58 per barrel, up 9 cents, or 0.1 per cent, from their previous close. "A falling rig count and the strong employment data may have helped support prices," said William O'Loughlin, investment analyst at Rivkin Securities. The US economy added the biggest number of jobs in more than 1-1/2 years in February, with non-farm payrolls jumping by 313,000 jobs last month, the Labor Department said on Friday. In oil markets, US energy companies last week cut oil rigs for the first time in almost two months, with drillers cutting back four rigs, to 796, Baker Hughes energy services firm said on Friday. Despite the lower rig count, which is an early indicator of future output, activity remains much higher than a year ago when, when just 617 rigs were active, and most analysts expect US crude oil production, which has already risen by over a fifth since mid-2016, to 10.37 million barrels per day (bpd), to rise further. That's more than top exporter Saudi Arabia producers and almost as much as Russia pumps out, at nearly 11 million bpd. Singapore-based brokerage Phillip Futures said that the oil market "will focus on OPEC and IEA (monthly) reports this week for a sensing on global demand/supply levels for crude oil" and that "items in focus will include OECD commercial stock levels, revision in global demand and supply for crude oil and OPEC's compliance on production levels". The Organization of the Petroleum Exporting Countries (OPEC), together with a group of other producers led by Russia, has been withholding production since the start of 2017 to prop up prices.

Oil prices rise up on reduced US drilling, job market

Iraq has overtaken Saudi Arabia by a wide margin to become India&#39;s top crude oil supplier, meeting more than a fifth of the country&#39;s oil needs in the current financial year.

Saudi Arabia traditionally has been India&#39;s top oil source but in the April-January period of 2017-18, Iraq dethroned it, supplying 38.9 million tonnes (MT) of oil, Oil Minister Dharmendra Pradhan said on Monday.

In a written reply to a question in the Lok Sabha, he said Saudi Arabia supplied 30.9 MT of crude oil in the first 10 months of the current fiscal. India imported 184.4 MT of crude oil during the period as compared to 213.9 MT in the entire 2016-17 fiscal, and 202.8 MT in 2015-16.

Despite India cutting imports over delays in award of contract for a gas field development, Iran continued to be the third largest supplier selling 18.4 MT during April-January. This is the second year in a row that Iran has occupied the third position.

Iran was India&#39;s second biggest supplier of crude oil after Saudi Arabia till 2010-11 but western sanctions over its suspected nuclear programme relegated it to the 7th spot in the subsequent years. In 2013-14 and 2014-15, India bought 11 MT and 10.95 MT respectively from it.

Sourcing from Iran increased to 12.7 MT in 2015-16, giving it the sixth spot. In the following year, the Iranian supplies jumped to 27.2 MT to catapult it to the third spot, Pradhan said. Venezuela is India&#39;s fourth largest supplier with 15.5 MT during April-January, followed by Nigeria with 14.9 MT, he said.

India is 80 per cent dependent on imports to meet its oil needs. The easing of Western sanctions in 2015 has led to the Indian refiners raising their purchase from Iran. Kuwait, which was the third largest supplier in 2013-14, has steadily slipped, supplying just 10.2 MT in the first 10 months of the current fiscal. It had in 2014-15 supplied 17.9 MT crude, which came down to 11 MT in 2015-16 and 9.8 MT in 2016-17, Pradhan said.

India&#39;s dependence on the West Asia for its crude oil needs has increased 58 percent in 2014-15 to 63.7 per cent in the April-January period of this fiscal, he said. India had imported 109.9 MT out of 189.4 MT of total crude imports in 2014-15 from the region. In the current fiscal so far, the Middle East has accounted for 117.5 MT of crude oil supplies from India.

Saudi Arabia traditionally has been India's top oil source but in the April-January period of 2017-18, Iraq dethroned it, supplying 38.9 million tonnes (MT) of oil, Oil Minister Dharmendra Pradhan said on Monday

Iraq has overtaken Saudi Arabia by a wide margin to become India's top crude oil supplier, meeting more than a fifth of the country's oil needs in the current financial year. Saudi Arabia traditionally has been India's top oil source but in the April-January period of 2017-18, Iraq dethroned it, supplying 38.9 million tonnes (MT) of oil, Oil Minister Dharmendra Pradhan said on Monday. In a written reply to a question in the Lok Sabha, he said Saudi Arabia supplied 30.9 MT of crude oil in the first 10 months of the current fiscal. India imported 184.4 MT of crude oil during the period as compared to 213.9 MT in the entire 2016-17 fiscal, and 202.8 MT in 2015-16. Despite India cutting imports over delays in award of contract for a gas field development, Iran continued to be the third largest supplier selling 18.4 MT during April-January. This is the second year in a row that Iran has occupied the third position. Iran was India's second biggest supplier of crude oil after Saudi Arabia till 2010-11 but western sanctions over its suspected nuclear programme relegated it to the 7th spot in the subsequent years. In 2013-14 and 2014-15, India bought 11 MT and 10.95 MT respectively from it. Sourcing from Iran increased to 12.7 MT in 2015-16, giving it the sixth spot. In the following year, the Iranian supplies jumped to 27.2 MT to catapult it to the third spot, Pradhan said. Venezuela is India's fourth largest supplier with 15.5 MT during April-January, followed by Nigeria with 14.9 MT, he said. India is 80 per cent dependent on imports to meet its oil needs. The easing of Western sanctions in 2015 has led to the Indian refiners raising their purchase from Iran. Kuwait, which was the third largest supplier in 2013-14, has steadily slipped, supplying just 10.2 MT in the first 10 months of the current fiscal. It had in 2014-15 supplied 17.9 MT crude, which came down to 11 MT in 2015-16 and 9.8 MT in 2016-17, Pradhan said. India's dependence on the West Asia for its crude oil needs has increased 58 percent in 2014-15 to 63.7 per cent in the April-January period of this fiscal, he said. India had imported 109.9 MT out of 189.4 MT of total crude imports in 2014-15 from the region. In the current fiscal so far, the Middle East has accounted for 117.5 MT of crude oil supplies from India.

Iraq pips Saudi Arabia to become India's top crude oil supplier, meets more than a fifth of country's needs

Till 1974, the reputation of United States Dollar as a global currency was not so established. It was considered at par with Japanese Yen and Pound Sterling. However, an oil pact between Saudi Arabia and the US changed the entire scenario and made US Dollar as the most dominating world currency as on date.&nbsp;

&nbsp;

Today, out of over 700 Billion Dollar of global oil trade, more than 95% happens in US Dollar and every country desirous of buying oil from its producers, such as ex-Russian Federation countries, Middle East or Latin America must first accumulate its dollars.&nbsp;

&nbsp;

China has strong reasons to start this initiative as they import over 18% of the world oil and, in the last one decade itself, their crude oil requirements have risen by more than 235%. In 2010, China used to import little less than 4 million barrels of crude oil a day which is now touching over 9.5 million barrels per day, currently the highest in the world. This trend is likely to continue as China is primarily a manufacturing based economy and crude oil is an essential item for them. Being the biggest importer and considering the current global scenario where China is engaged in a kind of muscle flexing with the United States, Dragon is trying to work out new ways to reduce its dependence on the US Currency.&nbsp;

&nbsp;

As per recent reports, China is planning to cover its future oil contracts under &ldquo;Shanghai International Energy Exchange Program&rdquo; and going to launch it on 26th March 2018. The &ldquo;Shanghai International Energy Exchange Program&rdquo; is named by its acronym INE and will include seven kinds of global crude oils. These are primarily from the Middle East and almost all Chinese companies are expected to use INE for their purchase of oil from that region.&nbsp;

&nbsp;

It will help Chinese buyers to lock the future oil prices and pay in their local currency, giving an answer to Uncle Sam by pitching of Petro-Yuan against Petro- Dollar. The most important part of the Chinese strategy is that they have located this &ldquo;Shanghai International Energy Exchange Program&rdquo; in their Free Trade Zone which will facilitate foreign traders also to invest.&nbsp;

&nbsp;

It did not come suddenly but China had been preparing for it since long. Recently, some of the global economies decided to keep Chinese Yuan in their foreign currency stockpile after IMF decided to designate Chinese Yuan as a global currency in 2015. The main agencies which are keeping Renminbi as forex reserve are Deutsche Bundesbank, the German Central Bank, European Central Bank (ECB) and International Monetary Fund (IMF) too. And recently our neighbour Pakistan also decided to make Yuan as a primary Foreign currency. But China has a long way to go. Currently, the share of Renminbi in the global forex reserves is just 1.08% with US Dollar dominating at 63.5% of all reserves. Euro is next with 20%.&nbsp;

&nbsp;

In the current scenario, the use of Chinese Yuan is increasing rapidly due to their export-based economy and this is the main reason why China could take the initiative of launching Petro-Yuan. If we take the global trade, The Renminbi is third largest circulated currency in the world after US Dollar (39%) and Euro (33%) with 28% of the world trade. However, in case of crude and petroleum products, US Dollar is still strong with more than 95% of global trade happening through this.&nbsp;

&nbsp;

So, what is the Chinese stake In this? They have a long and ambitious plan for this. Let&rsquo;s see how China expects to be benefitted out of this:

&nbsp;

&bull;&nbsp; &nbsp; Firstly, to dominate global oil market, China would promote its currency in global oil trade.&nbsp;

&nbsp;

&bull;&nbsp; &nbsp; Secondly, since it will involve future price trading and benchmarking, it will protect them from higher price surges and they will be able to affect global oil prices in the long term. As oil prices are rising once again, the biggest importer of oil will have the future assurance of prices.&nbsp;

&nbsp;

&bull;&nbsp; &nbsp; Thirdly, many Chinese industries are using a different kind of crude grades for their various applications. And, since, they are having different pricing for these types of crudes they can effectively benchmark the same in the international market and, hence, get benefitted.

&nbsp;

China&rsquo;s previous experience in this regard had been good. In 2015, when they endorsed Nickel as one of the community to be traded in Yuan, it crossed all benchmarks of London Metal Exchange within a short time span of six months. But the stakes are high this time.&nbsp;

&nbsp;

China was ready to launch their INE or &ldquo;Shanghai International Energy Exchange Program&rdquo; in 2016 itself but the sudden dip in global oil prices forced them to postpone this move and wait for a right opportunity. With the improvement in global oil index, they are ready to start it.&nbsp;

&nbsp;

So, who will participate in this program and make it a success?&nbsp;

&nbsp;

&bull;&nbsp; &nbsp; As mentioned earlier, China already has a sizeable share of global trade, including that with the oil-producing nations. China will try to replicate some of it in its energy exchange.&nbsp;

&nbsp;

&bull;&nbsp; &nbsp; Also, there are many countries like Pakistan who do import oil and are under the influence of China. They will certainly form part of the future trade in INE. Though the value will be small, it will give a push to the program.&nbsp;

&nbsp;

&bull;&nbsp; &nbsp; Chinese &lsquo;Belt and Road Initiative&rdquo; is aimed at connecting countries to create a Eurasian Trade corridor. Some of these countries, especially erstwhile Russian Federation, are producers and exporters of crude too. They are likely to join INE to form a syndicate against the global monopoly of US Dollar. Russia has already started by selling some part of its oil to China against Renminbi.&nbsp;

&nbsp;

&bull;&nbsp; &nbsp; For Middle Eastern countries who are still the biggest producers of oil, the risks caused by the dominance of United States will reduce. This resulted in the fall of global oil prices in the last few years.&nbsp;

&nbsp;

&bull;&nbsp; &nbsp; Global oil traders see China as the fastest growing market for their oil products.&nbsp;

&nbsp;

Analysts say unanimously that it is an ambitious start for China but it is a highly risky option, keeping in view of the volatility in the global oil trade. It may take years, if not decades, to even establish Renminbi as a global oil currency. Dollar is a fully established and stable currency and it is unlikely that oil traders will put their investments at stake for trying out new ventures.&nbsp;

&nbsp;

The global oil market is controlled by the Middle Eastern countries and their reliance on the United States are much higher than China. Since the number of countries is small, the risks involving the prices are high and, last but not the least, breaking the monopoly of US Dollar is extremely difficult, especially where such unpredictable commodity is involved.

&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Analysts say unanimously that it is an ambitious start for China but it is a highly risky option, keeping in view of the volatility in the global oil trade.

Till 1974, the reputation of United States Dollar as a global currency was not so established. It was considered at par with Japanese Yen and Pound Sterling. However, an oil pact between Saudi Arabia and the US changed the entire scenario and made US Dollar as the most dominating world currency as on date. Today, out of over 700 Billion Dollar of global oil trade, more than 95% happens in US Dollar and every country desirous of buying oil from its producers, such as ex-Russian Federation countries, Middle East or Latin America must first accumulate its dollars. China has strong reasons to start this initiative as they import over 18% of the world oil and, in the last one decade itself, their crude oil requirements have risen by more than 235%. In 2010, China used to import little less than 4 million barrels of crude oil a day which is now touching over 9.5 million barrels per day, currently the highest in the world. This trend is likely to continue as China is primarily a manufacturing based economy and crude oil is an essential item for them. Being the biggest importer and considering the current global scenario where China is engaged in a kind of muscle flexing with the United States, Dragon is trying to work out new ways to reduce its dependence on the US Currency. As per recent reports, China is planning to cover its future oil contracts under “Shanghai International Energy Exchange Program” and going to launch it on 26th March 2018. The “Shanghai International Energy Exchange Program” is named by its acronym INE and will include seven kinds of global crude oils. These are primarily from the Middle East and almost all Chinese companies are expected to use INE for their purchase of oil from that region. It will help Chinese buyers to lock the future oil prices and pay in their local currency, giving an answer to Uncle Sam by pitching of Petro-Yuan against Petro- Dollar. The most important part of the Chinese strategy is that they have located this “Shanghai International Energy Exchange Program” in their Free Trade Zone which will facilitate foreign traders also to invest. It did not come suddenly but China had been preparing for it since long. Recently, some of the global economies decided to keep Chinese Yuan in their foreign currency stockpile after IMF decided to designate Chinese Yuan as a global currency in 2015. The main agencies which are keeping Renminbi as forex reserve are Deutsche Bundesbank, the German Central Bank, European Central Bank (ECB) and International Monetary Fund (IMF) too. And recently our neighbour Pakistan also decided to make Yuan as a primary Foreign currency. But China has a long way to go. Currently, the share of Renminbi in the global forex reserves is just 1.08% with US Dollar dominating at 63.5% of all reserves. Euro is next with 20%. In the current scenario, the use of Chinese Yuan is increasing rapidly due to their export-based economy and this is the main reason why China could take the initiative of launching Petro-Yuan. If we take the global trade, The Renminbi is third largest circulated currency in the world after US Dollar (39%) and Euro (33%) with 28% of the world trade. However, in case of crude and petroleum products, US Dollar is still strong with more than 95% of global trade happening through this. So, what is the Chinese stake In this? They have a long and ambitious plan for this. Let’s see how China expects to be benefitted out of this: • Firstly, to dominate global oil market, China would promote its currency in global oil trade. • Secondly, since it will involve future price trading and benchmarking, it will protect them from higher price surges and they will be able to affect global oil prices in the long term. As oil prices are rising once again, the biggest importer of oil will have the future assurance of prices. • Thirdly, many Chinese industries are using a different kind of crude grades for their various applications. And, since, they are having different pricing for these types of crudes they can effectively benchmark the same in the international market and, hence, get benefitted. China’s previous experience in this regard had been good. In 2015, when they endorsed Nickel as one of the community to be traded in Yuan, it crossed all benchmarks of London Metal Exchange within a short time span of six months. But the stakes are high this time. China was ready to launch their INE or “Shanghai International Energy Exchange Program” in 2016 itself but the sudden dip in global oil prices forced them to postpone this move and wait for a right opportunity. With the improvement in global oil index, they are ready to start it. So, who will participate in this program and make it a success? • As mentioned earlier, China already has a sizeable share of global trade, including that with the oil-producing nations. China will try to replicate some of it in its energy exchange. • Also, there are many countries like Pakistan who do import oil and are under the influence of China. They will certainly form part of the future trade in INE. Though the value will be small, it will give a push to the program. • Chinese ‘Belt and Road Initiative” is aimed at connecting countries to create a Eurasian Trade corridor. Some of these countries, especially erstwhile Russian Federation, are producers and exporters of crude too. They are likely to join INE to form a syndicate against the global monopoly of US Dollar. Russia has already started by selling some part of its oil to China against Renminbi. • For Middle Eastern countries who are still the biggest producers of oil, the risks caused by the dominance of United States will reduce. This resulted in the fall of global oil prices in the last few years. • Global oil traders see China as the fastest growing market for their oil products. Analysts say unanimously that it is an ambitious start for China but it is a highly risky option, keeping in view of the volatility in the global oil trade. It may take years, if not decades, to even establish Renminbi as a global oil currency. Dollar is a fully established and stable currency and it is unlikely that oil traders will put their investments at stake for trying out new ventures. The global oil market is controlled by the Middle Eastern countries and their reliance on the United States are much higher than China. Since the number of countries is small, the risks involving the prices are high and, last but not the least, breaking the monopoly of US Dollar is extremely difficult, especially where such unpredictable commodity is involved. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: Chinese Petro-Yuan is the answer to Petro- Dollar but will it succeed?

President Rouhani&rsquo;s maiden visit to India can be perceived as a response to India&rsquo;s West Asia overreach under the present Indian dispensation. The visit comes at a time when Indian government has been actively reaching out to various regional players trying to bolster bilateral ties and economic cooperation. The West Asian region hosts about 7 million expatriate Indians, and is a source of valuable foreign remittances and energy for India. The region also carries strategic significance for India.

&nbsp;

The Iranian president&rsquo;s visit comes in the backdrop of the emergence of new fault lines in the region with Saudi Arabia, the United Arab Emirates (UAE) and others like Bahrain and Kuwait seen ranged against Iran&mdash;in tandem with Israel. For India, Israel is a key partner in its counter-terrorism initiatives as well as its efforts to attract innovation and sophisticated technology to boost manufacturing. Countries such as Saudi Arabia and the UAE are crucial sources of energy for India, providing counter-terror cooperation and who also host a large number of expatriate Indians.&nbsp;

&nbsp;

According to the MEA officials, during the course of the visit, deliberations are likely to be held on the &ldquo;progress achieved in bilateral relations and also exchange views on regional and international issues of mutual interest.&quot; In addition, discussions on &quot;the latest regional and global developments and the finalisation and exploitation of Chabahar port as soon as possible,&quot; are also expected to take place.&nbsp;

&nbsp;

President Rouhani is coming with a big business agenda to expand economic ties with India. A delegation from the National Iranian Oil Company is expected to hold talks with Indian authorities to see whether a pact could be reached on developing Iran&rsquo;s Farzad-B gas field. Incidentally, Iran has been shifting the goalposts since 2007 when the first round of talks began. But things are different now.

&nbsp;

&nbsp;Iran has been trying to reach a better bargain with India after crippling economic sanctions against it were eased following the signing of Joint Comprehensive Plan of Action (JCPOA) or nuclear deal with six world powers&mdash;the US, UK, Russia, France, China, and Germany. Iran also wants to expedite the whole process as they are apprehensive of present US administrations and their commitment to the nuclear deal.&nbsp;

&nbsp;

There are some major irritants as well as opportunities for both the countries. India and Iran have strong economic and commercial ties covering many sectors though it has traditionally been dominated by the import of Iranian crude oil by India, which India continued with even at the time of sanctions. According to MEA, bilateral trade with Iran in 2017-18 stood at USD 12.89 billion, with India importing USD 10.5 billion worth of goods, mainly crude oil, and exporting commodities worth USD 2.4 billion.&nbsp;

&nbsp;

When the sanctions were lifted, India announced that its firms could spend as much as USD 20 billion on not just the port but also petrochemical plants, railway lines and other industries in the areas. But progress has only been made on the port. India has committed USD 85 million in investment for the development of the Shahid Beheshti Port in Chabahar. To show its commitment to the port project India signed the Trilateral Transit Agreement (Chabahar Agreement) between India, Iran and Afghanistan when PM Modi visited Tehran in May 2016. India recently became a signatory to the Ashgabat Agreement and wants to utilise the port to its full potential. The port opens a new strategic transit route between Iran, India, Afghanistan and other Central Asian nations bypassing Pakistan.&nbsp;

&nbsp;

The visit is significant for both the nations, especially for Iran. President Rouhani has been facing growing discontent domestically over the falling promises and a brighter future which was shown to the people of Iran when the nuclear deal was signed. The people of Iran have been demanding greater personal freedoms and more opportunities for quite some time. According to estimates, nearly 60 percent of Iran&#39;s population of 82 million is under the age of 35, and nearly 70 per cent of Iranians were not yet born when the Islamic republic was established in 1979.

&nbsp;

Iran had hoped for swift reintegration into the global trade after the easing of sanctions in 2016 but its failure to persuade Western banks to accept Iranian business has been the main roadblock to rehabilitation. For instance, India plans to equip and operate two berths at Chabahar port with a capital investment of USD 85.21 million on a 10-year lease. But the uncertainty over U.S. policies has cast a shadow over the project. India is struggling to get equipment such as cranes for the port because Western banks were not ready to facilitate transactions.&nbsp;

&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp; &nbsp;

President Rouhani is coming with a big business agenda to expand economic ties with India

President Rouhani’s maiden visit to India can be perceived as a response to India’s West Asia overreach under the present Indian dispensation. The visit comes at a time when Indian government has been actively reaching out to various regional players trying to bolster bilateral ties and economic cooperation. The West Asian region hosts about 7 million expatriate Indians, and is a source of valuable foreign remittances and energy for India. The region also carries strategic significance for India. The Iranian president’s visit comes in the backdrop of the emergence of new fault lines in the region with Saudi Arabia, the United Arab Emirates (UAE) and others like Bahrain and Kuwait seen ranged against Iran—in tandem with Israel. For India, Israel is a key partner in its counter-terrorism initiatives as well as its efforts to attract innovation and sophisticated technology to boost manufacturing. Countries such as Saudi Arabia and the UAE are crucial sources of energy for India, providing counter-terror cooperation and who also host a large number of expatriate Indians. According to the MEA officials, during the course of the visit, deliberations are likely to be held on the “progress achieved in bilateral relations and also exchange views on regional and international issues of mutual interest." In addition, discussions on "the latest regional and global developments and the finalisation and exploitation of Chabahar port as soon as possible," are also expected to take place. President Rouhani is coming with a big business agenda to expand economic ties with India. A delegation from the National Iranian Oil Company is expected to hold talks with Indian authorities to see whether a pact could be reached on developing Iran’s Farzad-B gas field. Incidentally, Iran has been shifting the goalposts since 2007 when the first round of talks began. But things are different now. Iran has been trying to reach a better bargain with India after crippling economic sanctions against it were eased following the signing of Joint Comprehensive Plan of Action (JCPOA) or nuclear deal with six world powers—the US, UK, Russia, France, China, and Germany. Iran also wants to expedite the whole process as they are apprehensive of present US administrations and their commitment to the nuclear deal. There are some major irritants as well as opportunities for both the countries. India and Iran have strong economic and commercial ties covering many sectors though it has traditionally been dominated by the import of Iranian crude oil by India, which India continued with even at the time of sanctions. According to MEA, bilateral trade with Iran in 2017-18 stood at USD 12.89 billion, with India importing USD 10.5 billion worth of goods, mainly crude oil, and exporting commodities worth USD 2.4 billion. When the sanctions were lifted, India announced that its firms could spend as much as USD 20 billion on not just the port but also petrochemical plants, railway lines and other industries in the areas. But progress has only been made on the port. India has committed USD 85 million in investment for the development of the Shahid Beheshti Port in Chabahar. To show its commitment to the port project India signed the Trilateral Transit Agreement (Chabahar Agreement) between India, Iran and Afghanistan when PM Modi visited Tehran in May 2016. India recently became a signatory to the Ashgabat Agreement and wants to utilise the port to its full potential. The port opens a new strategic transit route between Iran, India, Afghanistan and other Central Asian nations bypassing Pakistan. The visit is significant for both the nations, especially for Iran. President Rouhani has been facing growing discontent domestically over the falling promises and a brighter future which was shown to the people of Iran when the nuclear deal was signed. The people of Iran have been demanding greater personal freedoms and more opportunities for quite some time. According to estimates, nearly 60 percent of Iran's population of 82 million is under the age of 35, and nearly 70 per cent of Iranians were not yet born when the Islamic republic was established in 1979. Iran had hoped for swift reintegration into the global trade after the easing of sanctions in 2016 but its failure to persuade Western banks to accept Iranian business has been the main roadblock to rehabilitation. For instance, India plans to equip and operate two berths at Chabahar port with a capital investment of USD 85.21 million on a 10-year lease. But the uncertainty over U.S. policies has cast a shadow over the project. India is struggling to get equipment such as cranes for the port because Western banks were not ready to facilitate transactions. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: Why Iranian President Rouhani's visit is important for PM Modi

A day after Arun Jaitley tabled the Economic Survey in parliament ahead of the Union Budget, Chief economic advisor Arvind Subramanian spoke about various topics namely GST, oil prices and gender&nbsp;inequality.

India&#39;s chief economic advisor said that there is a recovery in the economy of the country and hoped for further growth. However, growth depends on various other factors, he said.

Arvind Subramanian on Economy

- Recovery is underway in the economy.

- We hope that growth will get a boost.

- Growth depends on many factors.

- Export can get a boost.

- GST is no longer bearing the burden of note ban.

Arvind Subramanian on Petroleum Products

- Petroleum products need to be brought under GST.

- Oil prices are increasing steadily.

- Demand for bringing GST in prices increased due to rising prices.

- Oil prices will come down after coming into GST

- When petroleum comes into GST, the government&#39;s revenue will decrease.

Arvind Subramanian on GST

-Revenue growth from GST has been quite good.

- The picture will be clear&nbsp;in one or two quarters.

- Further changes in GST expected.

- Power, oil may be brought under GST.

- Will consider simplifying the GST rate structure.

Arvind Subramanian on Gender Issue

- Gender inequality is very high in society

- In the love of sons, people keep having daughters

- Because of this, 21 million unwanted daughters were born

- There is an environment of discrimination against girls in society

Arvind Subramanian on &quot;Ease of Doing Business&quot;

- There will be more work in many areas.

- The judicial system needs to improve.

- There are too many cases pending in the court today.

- It directly has an impact on the &quot;ease of doing business&quot;.

- There are many cases of income tax pending in court.

Arvind Subramanian on private&nbsp;investment

- There are several reasons why private investment does not grow.

- Many private companies borrowed a lot.

- Government is taking several steps to improve it.

- Many cases of non-repayment of loans were sent to NCLT.

- The government also focused on the recap of banks.

Arvind Subramanian on Growth

- GDP growth is expected to be 7-7.5% in FY19.

- A lot depends on world growth.

- Crude prices upsetting equation.

Arvind Subramanian on Agriculture

- Our focus will be on the betterment of the agriculture sector.

- It is important to improve the condition of farmers.

Subramanian said the that there is a recovery in the economy of the country and hoped for further growth

A day after Arun Jaitley tabled the Economic Survey in parliament ahead of the Union Budget, Chief economic advisor Arvind Subramanian spoke about various topics namely GST, oil prices and gender inequality. India's chief economic advisor said that there is a recovery in the economy of the country and hoped for further growth. However, growth depends on various other factors, he said. Arvind Subramanian on Economy - Recovery is underway in the economy. - We hope that growth will get a boost. - Growth depends on many factors. - Export can get a boost. - GST is no longer bearing the burden of note ban. Arvind Subramanian on Petroleum Products - Petroleum products need to be brought under GST. - Oil prices are increasing steadily. - Demand for bringing GST in prices increased due to rising prices. - Oil prices will come down after coming into GST - When petroleum comes into GST, the government's revenue will decrease. Arvind Subramanian on GST -Revenue growth from GST has been quite good. - The picture will be clear in one or two quarters. - Further changes in GST expected. - Power, oil may be brought under GST. - Will consider simplifying the GST rate structure. Arvind Subramanian on Gender Issue - Gender inequality is very high in society - In the love of sons, people keep having daughters - Because of this, 21 million unwanted daughters were born - There is an environment of discrimination against girls in society Arvind Subramanian on "Ease of Doing Business" - There will be more work in many areas. - The judicial system needs to improve. - There are too many cases pending in the court today. - It directly has an impact on the "ease of doing business". - There are many cases of income tax pending in court. Arvind Subramanian on private investment - There are several reasons why private investment does not grow. - Many private companies borrowed a lot. - Government is taking several steps to improve it. - Many cases of non-repayment of loans were sent to NCLT. - The government also focused on the recap of banks. Arvind Subramanian on Growth - GDP growth is expected to be 7-7.5% in FY19. - A lot depends on world growth. - Crude prices upsetting equation. Arvind Subramanian on Agriculture - Our focus will be on the betterment of the agriculture sector. - It is important to improve the condition of farmers.

Chief economic advisor Arvind Subramanian on GST, oil prices & ease of doing business

The spill from a sunken Iranian tanker off China&#39;s east coast has spawned four oil slicks as authorities prepared to send robots to the wreckage to assess the environmental damage.

The Sanchi, which was carrying 136,000 tonnes of light crude oil from Iran, sank in a ball of flames in the East China Sea on Sunday, a week after colliding with Hong Kong-registered bulk freighter the CF Crystal.

The bodies of only three out of 30 Iranian and two Bangladeshi crew members have been found.

The State Oceanic Administration of China said late Wednesday that it was monitoring four slicks with a total area of almost 101 square kilometres (39 square miles), roughly the same size as Paris.

The office is attempting to &quot;control the spread of the oil spill and is carrying out work to estimate its impact on the marine ecological environment&quot;, it said on its website.

The type of condensate oil carried by the Sanchi does not form a traditional surface slick when spilt, but is nonetheless highly toxic to marine life and much harder to separate from water. The cargo amounted to nearly one million barrels (bbl) of oil.

Japan&#39;s coast guard said Thursday a patrol ship and plane examined the oil spill and found that it was spreading 30 kilometres east and eight kilometres northwest from the wreck, with a maximum width of 800 metres.

&quot;The swathe of oil slick is being diffused and disappearing,&quot; the coast guard said in a statement. &quot;Chinese and other patrol ships continue to look for missing (crew) members and carrying out oil removal missions.&quot;

On Tuesday, China had reported two slicks measuring about 69 square kilometres and an additional 40-square-kilometre area of &quot;scattered&quot; oil.

The transport ministry said late Wednesday the vessel lay at a depth of around 115 metres (50 feet) and that robots would be deployed to explore the shipwreck.

Sea life at risk&nbsp;

The area where the ship went down is an important spawning ground for species like the swordtip squid and wintering ground for species like the yellow croaker fish and blue crab, among many others, according to Greenpeace.&nbsp;

It is also on the migratory pathway of numerous marine mammals, such as humpback and gray whales.&nbsp;

In addition to the light crude oil, the Sanchi also carried a fuel tank able to accommodate some 1,000 tonnes of heavy diesel.

If all of the Sanchi&#39;s cargo spills into the sea, it would be the biggest oil slick from a ship in decades.

By comparison, in the sixth-worst spill since the 1960s, the Odyssey dumped 132,000 tonnes some 700 nautical miles off Canada&#39;s Nova Scotia in 1988, according to figures from the International Tanker Owners Pollution Federation website.

Richard Steiner, an Alaska-based oil spill consultant, called on the Chinese government to conduct a survey of the sunken vessel as soon as possible, citing concerns about the possibility of continued leakage.

&quot;It is critical to know if any condensate remains on board,&quot; he said in an email, adding that instead of evaporating it could create a &quot;more concentrated toxic underwater plume.&quot;

&quot;If the entire 1 million bbl cargo is released (which seems likely at this point), this will be the largest condensate spill in history.&quot;

 
&nbsp;

The Sanchi, which was carrying 136,000 tonnes of light crude oil from Iran, sank in a ball of flames in the East China Sea on Sunday, a week after colliding with Hong Kong-registered bulk freighter the CF Crystal

The spill from a sunken Iranian tanker off China's east coast has spawned four oil slicks as authorities prepared to send robots to the wreckage to assess the environmental damage. The Sanchi, which was carrying 136,000 tonnes of light crude oil from Iran, sank in a ball of flames in the East China Sea on Sunday, a week after colliding with Hong Kong-registered bulk freighter the CF Crystal. The bodies of only three out of 30 Iranian and two Bangladeshi crew members have been found. The State Oceanic Administration of China said late Wednesday that it was monitoring four slicks with a total area of almost 101 square kilometres (39 square miles), roughly the same size as Paris. The office is attempting to "control the spread of the oil spill and is carrying out work to estimate its impact on the marine ecological environment", it said on its website. The type of condensate oil carried by the Sanchi does not form a traditional surface slick when spilt, but is nonetheless highly toxic to marine life and much harder to separate from water. The cargo amounted to nearly one million barrels (bbl) of oil. Japan's coast guard said Thursday a patrol ship and plane examined the oil spill and found that it was spreading 30 kilometres east and eight kilometres northwest from the wreck, with a maximum width of 800 metres. "The swathe of oil slick is being diffused and disappearing," the coast guard said in a statement. "Chinese and other patrol ships continue to look for missing (crew) members and carrying out oil removal missions." On Tuesday, China had reported two slicks measuring about 69 square kilometres and an additional 40-square-kilometre area of "scattered" oil. The transport ministry said late Wednesday the vessel lay at a depth of around 115 metres (50 feet) and that robots would be deployed to explore the shipwreck. Sea life at risk The area where the ship went down is an important spawning ground for species like the swordtip squid and wintering ground for species like the yellow croaker fish and blue crab, among many others, according to Greenpeace. It is also on the migratory pathway of numerous marine mammals, such as humpback and gray whales. In addition to the light crude oil, the Sanchi also carried a fuel tank able to accommodate some 1,000 tonnes of heavy diesel. If all of the Sanchi's cargo spills into the sea, it would be the biggest oil slick from a ship in decades. By comparison, in the sixth-worst spill since the 1960s, the Odyssey dumped 132,000 tonnes some 700 nautical miles off Canada's Nova Scotia in 1988, according to figures from the International Tanker Owners Pollution Federation website. Richard Steiner, an Alaska-based oil spill consultant, called on the Chinese government to conduct a survey of the sunken vessel as soon as possible, citing concerns about the possibility of continued leakage. "It is critical to know if any condensate remains on board," he said in an email, adding that instead of evaporating it could create a "more concentrated toxic underwater plume." "If the entire 1 million bbl cargo is released (which seems likely at this point), this will be the largest condensate spill in history."

China spots four oil slicks from sunken tanker

Reliance&nbsp;Industries&nbsp;Ltd has&nbsp;purchased&nbsp;crude oil cargoes from the United States for the&nbsp;first&nbsp;time, drawn by the lower price for US&nbsp;oil versus global benchmarks, three trade&nbsp;sources&nbsp;said on Tuesday.

Reliance, the owner of the world&rsquo;s biggest refining complex at Jamnagar, is joining state-run refiners Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp in importing US&nbsp;crude. The&nbsp;purchase&nbsp;illustrates the vast reach of US&nbsp;oil exports since the government rescinded a decades-long ban at the end of 2015.

For this&nbsp;purchase,&nbsp;Reliance&nbsp;bought 1 million barrels of West Texas Intermediate (WTI) Midland and a similar-sized cargo of Eagle Ford&nbsp;crude, both of which are expected to arrive in November, the&nbsp;sources&nbsp;said.

US&nbsp;producer Occidental Petroleum Corp sold the WTI Midland cargo, they said.

Reliance&nbsp;did not respond to Reuters&#39; email seeking comments.

There was also no reply to an emailed request for comment from Occidental sent outside of US&nbsp;business hours.

Opportunities for Indian refiners to import more US&nbsp;crude&nbsp;increased after the discount for West Texas Intermediate, the benchmark for US&nbsp;crude, to global benchmark Brent stretched to its widest since 2015 during September.

State-run Indian refiners have bought a total 7.85 million barrels of oil from the United States so far.

India&#39;s imports of US&nbsp;oil follows Indian Prime Minister Narendra Modi&#39;s visit to Washington in June when President Donald Trump said his country looked forward to exporting more energy products to India.

On Monday, Indian Oil, the country&#39;s top refiner, received its parcel of the US&nbsp;crude&nbsp;at the eastern port of Paradip, the company said in a statement.

Including the US&nbsp;as a source for&nbsp;crude&nbsp;imports for refiners will go a long way in mitigating the risk arising from geopolitical disruptions, Sanjay Sudhir, the joint secretary for international cooperation at the oil ministry, said in the Indian Oil statement.

US&nbsp;crude&nbsp;oil shipments to India have the potential to boost bilateral trade by up to $2 billion, the US&nbsp;embassy in India said in a statement on Monday.

Reliance?bought 1 million barrels of West Texas Intermediate Midland and a similar-sized cargo of Eagle Ford?crude, both of which are expected to arrive in November

Reliance Industries Ltd has purchased crude oil cargoes from the United States for the first time, drawn by the lower price for US oil versus global benchmarks, three trade sources said on Tuesday. Reliance, the owner of the world’s biggest refining complex at Jamnagar, is joining state-run refiners Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp in importing US crude. The purchase illustrates the vast reach of US oil exports since the government rescinded a decades-long ban at the end of 2015. For this purchase, Reliance bought 1 million barrels of West Texas Intermediate (WTI) Midland and a similar-sized cargo of Eagle Ford crude, both of which are expected to arrive in November, the sources said. US producer Occidental Petroleum Corp sold the WTI Midland cargo, they said. Reliance did not respond to Reuters' email seeking comments. There was also no reply to an emailed request for comment from Occidental sent outside of US business hours. Opportunities for Indian refiners to import more US crude increased after the discount for West Texas Intermediate, the benchmark for US crude, to global benchmark Brent stretched to its widest since 2015 during September. State-run Indian refiners have bought a total 7.85 million barrels of oil from the United States so far. India's imports of US oil follows Indian Prime Minister Narendra Modi's visit to Washington in June when President Donald Trump said his country looked forward to exporting more energy products to India. On Monday, Indian Oil, the country's top refiner, received its parcel of the US crude at the eastern port of Paradip, the company said in a statement. Including the US as a source for crude imports for refiners will go a long way in mitigating the risk arising from geopolitical disruptions, Sanjay Sudhir, the joint secretary for international cooperation at the oil ministry, said in the Indian Oil statement. US crude oil shipments to India have the potential to boost bilateral trade by up to $2 billion, the US embassy in India said in a statement on Monday.

Reliance, state-run oil cos buy US crude for first time

Oil prices rose to near eight-week highs on Wednesday, with Brent crude futures at over $50 a barrel, as a fall in US&nbsp;inventories bolstered expectations that the long-oversupplied market was moving toward balance.

Brent crude futures&nbsp;were up 58 cents or 1.2 per cent to $50.78 a barrel by 1:59 p.m. EDT (1759 GMT).

US&nbsp;West Texas Intermediate futures rose 68 cents or 1.4 per cent to $48.57 a barrel.

US&nbsp;crude stocks fell last week as refineries hiked output and imports dropped, while gasoline stocks decreased and distillate inventories fell, the Energy Information Administration said on Wednesday.

Crude inventories fell 7.2 million barrels in the week ending July 21, more than the expected decrease of 2.6 million barrels. The decline was the fourth consecutive drop, giving support to the market.

This added to hopes a long-awaited rebalancing was underway in the oil market. Saudi Arabia said on Monday it would limit oil exports to 6.6 million barrels per day (bpd) in August, down nearly 1 million bpd from a year earlier.

&quot;Today&rsquo;s report has strengthened the bullish sentiment already prevailing in the market, although the longevity of the move remains in doubt,&quot; said Abhishek Kumar, Senior Energy Analyst at Interfax Energy&rsquo;s Global Gas Analytics in London. &quot;Nevertheless, the country&rsquo;s crude and gasoline stockpiles remain above their five-year averages, which will cap price gains.&quot;

The drawdown was a combination of higher exports from the United States, marginal decline in oil output and a rise in the refinery utilization rate, he said.

&quot;The market has been tightening and the refinery margins are strong,&quot; said PetroMatrix managing director Olivier Jakob, saying the US&nbsp;stock draw offered a boost to prices. &quot;You add geopolitical risk premium for Venezuela, and you&#39;ve got a strong market.&quot;

Venezuela, an OPEC member producing about 2 million bpd of oil, faces deepening economic woes and protests.

President Nicolas Maduro&#39;s opponents launched a two-day national strike on Wednesday to push him to abandon a weekend election. The United States is considering financial sanctions to halt dollar payments for Venezuelan oil.&nbsp;

Nigerian output slipped this week as leaks forced Shell to shut a pipeline exporting some 180,000 bpd of oil. Nigeria, which has been exempted from OPEC-led production curbs, has agreed to cap or cut output when it stabilised at 1.8 million bpd.

But analysts said the current oil price rally could encourage more production, particularly from the United States.

&quot;Relieved bulls should be careful what they wish for. Any price rebound will only embolden US&nbsp;shale producers at a time when rumours have started to emerge that the US&nbsp;shale boom is slowing,&quot; PVM oil analyst Stephen Brennock said in a note.

US?West Texas Intermediate futures rose 68 cents or 1.4 per cent to $48.57 a barrel

Oil prices rose to near eight-week highs on Wednesday, with Brent crude futures at over $50 a barrel, as a fall in US inventories bolstered expectations that the long-oversupplied market was moving toward balance. Brent crude futures were up 58 cents or 1.2 per cent to $50.78 a barrel by 1:59 p.m. EDT (1759 GMT). US West Texas Intermediate futures rose 68 cents or 1.4 per cent to $48.57 a barrel. US crude stocks fell last week as refineries hiked output and imports dropped, while gasoline stocks decreased and distillate inventories fell, the Energy Information Administration said on Wednesday. Crude inventories fell 7.2 million barrels in the week ending July 21, more than the expected decrease of 2.6 million barrels. The decline was the fourth consecutive drop, giving support to the market. This added to hopes a long-awaited rebalancing was underway in the oil market. Saudi Arabia said on Monday it would limit oil exports to 6.6 million barrels per day (bpd) in August, down nearly 1 million bpd from a year earlier. "Today’s report has strengthened the bullish sentiment already prevailing in the market, although the longevity of the move remains in doubt," said Abhishek Kumar, Senior Energy Analyst at Interfax Energy’s Global Gas Analytics in London. "Nevertheless, the country’s crude and gasoline stockpiles remain above their five-year averages, which will cap price gains." The drawdown was a combination of higher exports from the United States, marginal decline in oil output and a rise in the refinery utilization rate, he said. "The market has been tightening and the refinery margins are strong," said PetroMatrix managing director Olivier Jakob, saying the US stock draw offered a boost to prices. "You add geopolitical risk premium for Venezuela, and you've got a strong market." Venezuela, an OPEC member producing about 2 million bpd of oil, faces deepening economic woes and protests. President Nicolas Maduro's opponents launched a two-day national strike on Wednesday to push him to abandon a weekend election. The United States is considering financial sanctions to halt dollar payments for Venezuelan oil. Nigerian output slipped this week as leaks forced Shell to shut a pipeline exporting some 180,000 bpd of oil. Nigeria, which has been exempted from OPEC-led production curbs, has agreed to cap or cut output when it stabilised at 1.8 million bpd. But analysts said the current oil price rally could encourage more production, particularly from the United States. "Relieved bulls should be careful what they wish for. Any price rebound will only embolden US shale producers at a time when rumours have started to emerge that the US shale boom is slowing," PVM oil analyst Stephen Brennock said in a note.

Oil jumps to near 8-week high after big draw in US crude stocks

The government has ordered state-run oil companies to raise cooking gas(LPG) prices by Rs 4 per cylinder every month.

Oil minister Dharmendra Pradhan intends to eliminate all subsidies on cooking gas by March next year.

The government had previously asked Indian Oil (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) to raise rates of subsidised domestic LPG (liquefied petroleum gas) by Rs 2 per 14.2-kg cylinder per month (excluding VAT).

Now, the quantum has been doubled to bring down the subsidy to zero, Dharmendra Pradhan told the Lok Sabha today.

&quot;Public sector oil marketing companies (OMCs) were authorised to increase price of subsidised domestic LPG cylinder by Rs 2 per cylinder (14.2-kg) per month (excluding VAT) with effect from July 1, 2016,&quot; he said.

&quot;The government in its order dated May 30, 2017, has again authorised OMCs to continue to increase the effective price of subsidised domestic LPG by Rs 4 per cylinder effective June 1, 2017, per month (excluding VAT) till the reduction of government subsidy to &#39;nil&#39;, or till March 2018, or till further orders, whichever is earliest, &quot;&nbsp;he said.

Subsidised LPG now costs Rs 477.46 per 14.2-kg cylinder in Delhi. It was priced at Rs 419.18 in June last year.

Every household in India is entitled to 12 cylinders of 14.2-kg each at subsidised rates in a year. Any requirement beyond that is to be purchased at market price.

There are as many as 18.11 crore customers of subsidised LPG in the country. These include 2.5 crore poor women who were given free connections during the last one year under the Pradhan Mantri Ujjwala Yojna.

There are another 2.66 crore users of non-subsidised cooking gas.

Oil minister Dharmendra Pradhan intends to eliminate all subsidies on cooking gas by March next year.

The government has ordered state-run oil companies to raise cooking gas(LPG) prices by Rs 4 per cylinder every month. Oil minister Dharmendra Pradhan intends to eliminate all subsidies on cooking gas by March next year. The government had previously asked Indian Oil (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) to raise rates of subsidised domestic LPG (liquefied petroleum gas) by Rs 2 per 14.2-kg cylinder per month (excluding VAT). Now, the quantum has been doubled to bring down the subsidy to zero, Dharmendra Pradhan told the Lok Sabha today. "Public sector oil marketing companies (OMCs) were authorised to increase price of subsidised domestic LPG cylinder by Rs 2 per cylinder (14.2-kg) per month (excluding VAT) with effect from July 1, 2016," he said. "The government in its order dated May 30, 2017, has again authorised OMCs to continue to increase the effective price of subsidised domestic LPG by Rs 4 per cylinder effective June 1, 2017, per month (excluding VAT) till the reduction of government subsidy to 'nil', or till March 2018, or till further orders, whichever is earliest, " he said. Subsidised LPG now costs Rs 477.46 per 14.2-kg cylinder in Delhi. It was priced at Rs 419.18 in June last year. Every household in India is entitled to 12 cylinders of 14.2-kg each at subsidised rates in a year. Any requirement beyond that is to be purchased at market price. There are as many as 18.11 crore customers of subsidised LPG in the country. These include 2.5 crore poor women who were given free connections during the last one year under the Pradhan Mantri Ujjwala Yojna. There are another 2.66 crore users of non-subsidised cooking gas.

LPG prices to be hiked by Rs 4 per month: Government

Oil extended falls on Friday after tumbling in the previous session when OPEC and allied producers extended output cuts but disappointed investors betting on longer or larger supply curbs.

At Thursday&#39;s meeting in Vienna, the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers agreed to extend a pledge to cut around 1.8 million barrels per day (bpd) until the end of the first quarter of 2018. The initial agreement would have expired in June this year.

Crude oil plunged 5 per cent following the announcement, and held its losses early on Friday.

Brent crude futures were at $51.26 per barrel at 0500 GMT, down 20 cents, or 0.4 per cent, from their last close.

US&nbsp;West Texas Intermediate (WTI) crude futures were back below $50, at $48.61, down 29 cents, or 0.6 per cent.

&quot;With Russia and Saudi announcing nine months (of extended cuts) a week before, this was already priced in, so the market wanted the &quot;over-and-above&quot; which didn&#39;t come &ndash; hence the sell-off,&quot; said Virendra Chauhan, oil analyst at Energy Aspects in Singapore, referring to a statement by Saudi Arabia and Russia earlier in May that a none months extension to the cut was needed.

Britain&#39;s Barclays bank said the ongoing production cut would result in a drawdown of bloated fuel inventories, but added that OPEC&#39;s goal of bringing stocks down to their five-year average would not be reached within the timeframe of the production cut.

Other analysts, including at Goldman Sachs and Jefferies bank said a normalisation of oil inventories could occur in early 2018.

Analysts also said that the OPEC-led production cuts would support a further rise in US&nbsp;output.

Ann-Louise Hittle, vice president at energy consultancy Wood Mackenzie said that the &quot;decision in Vienna sends a signal of continued support for oil prices from OPEC which helps US&nbsp;onshore drillers make plans&quot; to further increase their production.

US&nbsp;oil production has already risen by 10 per cent since mid-2016 to over 9.3 million bpd, close to the output of top producers Russia and Saudi Arabia.

&quot;OPEC agreeing to nine months without deeper cuts leaves prices at the mercy of inventories and US&nbsp;production and demand,&quot; said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

Goldman Sachs warned that the biggest risk to oil markets was what would happen next year, at the end of the OPEC-led production cut.

With US&nbsp;output rising steadily and OPEC and its allies potentially ramping up production in 2018 to regain lost market share, many traders are already expect another price slump.

(Reuters)

Crude oil plunged 5 per cent following the announcement

Oil extended falls on Friday after tumbling in the previous session when OPEC and allied producers extended output cuts but disappointed investors betting on longer or larger supply curbs. At Thursday's meeting in Vienna, the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers agreed to extend a pledge to cut around 1.8 million barrels per day (bpd) until the end of the first quarter of 2018. The initial agreement would have expired in June this year. Crude oil plunged 5 per cent following the announcement, and held its losses early on Friday. Brent crude futures were at $51.26 per barrel at 0500 GMT, down 20 cents, or 0.4 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were back below $50, at $48.61, down 29 cents, or 0.6 per cent. "With Russia and Saudi announcing nine months (of extended cuts) a week before, this was already priced in, so the market wanted the "over-and-above" which didn't come – hence the sell-off," said Virendra Chauhan, oil analyst at Energy Aspects in Singapore, referring to a statement by Saudi Arabia and Russia earlier in May that a none months extension to the cut was needed. Britain's Barclays bank said the ongoing production cut would result in a drawdown of bloated fuel inventories, but added that OPEC's goal of bringing stocks down to their five-year average would not be reached within the timeframe of the production cut. Other analysts, including at Goldman Sachs and Jefferies bank said a normalisation of oil inventories could occur in early 2018. Analysts also said that the OPEC-led production cuts would support a further rise in US output. Ann-Louise Hittle, vice president at energy consultancy Wood Mackenzie said that the "decision in Vienna sends a signal of continued support for oil prices from OPEC which helps US onshore drillers make plans" to further increase their production. US oil production has already risen by 10 per cent since mid-2016 to over 9.3 million bpd, close to the output of top producers Russia and Saudi Arabia. "OPEC agreeing to nine months without deeper cuts leaves prices at the mercy of inventories and US production and demand," said Greg McKenna, chief market strategist at futures brokerage AxiTrader. Goldman Sachs warned that the biggest risk to oil markets was what would happen next year, at the end of the OPEC-led production cut. With US output rising steadily and OPEC and its allies potentially ramping up production in 2018 to regain lost market share, many traders are already expect another price slump. (Reuters)

Oil drops after OPEC-led output cut extension falls below expectations

Oil prices rose slightly after reports Saudi Arabia had started talks with customers about a reduction of up to 7 per cent in crude sales in February to support an attempt by OPEC to reduce global supply.

The Organization of the Petroleum Exporting Countries (OPEC) promised in November to cut output to help prop up prices.&nbsp;Under the deal, Saudi Arabia agreed to cut output by 486,000 barrels per day (bpd), or 4.61 per cent of its October output of 10.544 million bpd.

&quot;Aramco (Saudi Arabia&#39;s state oil company)&nbsp;is approaching all its customers for possible cuts from February and discussing likely (supply) scenarios,&quot; a source said. &quot;Nothing is confirmed yet,&quot; the source said, adding the scenarios were for cuts of 3-7 per cent.

Investors have been suspicious that OPEC may not cut as much as promised, but several sources have expressed&nbsp;that they believe&nbsp;the world&#39;s biggest oil exporter would comply with the OPEC cuts.

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<h5>&quot;There remains a question mark over whether OPEC, with a long history of non-compliance, will actually follow through with the cuts. Very few respondents expect full compliance,&quot; Singapore Exchange (SGX) said, citing results from a survey.</h5>
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Benchmark Brent crude oil was up 20 cents a barrel at $56.66 in mid-day trade.&nbsp;US light crude oil was up 20 cents a barrel at $53.46.&nbsp;

&quot;There remains a question mark over whether OPEC, with a long history of non-compliance, will actually follow through with the cuts. Very few respondents expect full compliance,&quot; Singapore Exchange (SGX) said, citing results from a survey. &quot;Three-quarters of those surveyed went for crude&nbsp;prices averaging within the current $50-$60 a barrel range for 2017,&quot; SGX added.

Analysts at US bank Goldman Sachs&nbsp;said even if OPEC reduced production as promised, there was &quot;only moderate oil spot price upside given the expected supply response to higher oil prices and new production&quot;.

The US bank said it expected Brent prices to peak at $59 a barrel by mid-2017.

In another sign of compliance with the cuts, Abu Dhabi National Oil Company&nbsp;has scheduled maintenance at oilfields for March and April, although it was not immediately clear how much exports might fall.

(Reuters)

Saudi Arabia is mulling over a 7% cut in oil prices, but some analysts fear they will not follow through

Oil prices rose slightly after reports Saudi Arabia had started talks with customers about a reduction of up to 7 per cent in crude sales in February to support an attempt by OPEC to reduce global supply. The Organization of the Petroleum Exporting Countries (OPEC) promised in November to cut output to help prop up prices. Under the deal, Saudi Arabia agreed to cut output by 486,000 barrels per day (bpd), or 4.61 per cent of its October output of 10.544 million bpd. "Aramco (Saudi Arabia's state oil company) is approaching all its customers for possible cuts from February and discussing likely (supply) scenarios," a source said. "Nothing is confirmed yet," the source said, adding the scenarios were for cuts of 3-7 per cent. Investors have been suspicious that OPEC may not cut as much as promised, but several sources have expressed that they believe the world's biggest oil exporter would comply with the OPEC cuts. "There remains a question mark over whether OPEC, with a long history of non-compliance, will actually follow through with the cuts. Very few respondents expect full compliance," Singapore Exchange (SGX) said, citing results from a survey. × Benchmark Brent crude oil was up 20 cents a barrel at $56.66 in mid-day trade. US light crude oil was up 20 cents a barrel at $53.46. "There remains a question mark over whether OPEC, with a long history of non-compliance, will actually follow through with the cuts. Very few respondents expect full compliance," Singapore Exchange (SGX) said, citing results from a survey. "Three-quarters of those surveyed went for crude prices averaging within the current $50-$60 a barrel range for 2017," SGX added. Analysts at US bank Goldman Sachs said even if OPEC reduced production as promised, there was "only moderate oil spot price upside given the expected supply response to higher oil prices and new production". The US bank said it expected Brent prices to peak at $59 a barrel by mid-2017. In another sign of compliance with the cuts, Abu Dhabi National Oil Company has scheduled maintenance at oilfields for March and April, although it was not immediately clear how much exports might fall. (Reuters)

Oil prices rise as Saudi Arabia eyes supply cut

Oil prices rallied for their best week in at least five years on Friday, steadying above $51 a barrel, following OPEC&#39;s decision to cut crude output to rein in a global glut that has weighed on prices for more than two years.

After the deal was announced on Wednesday, the market focused on the implementation and impact of OPEC&#39;s first output cuts since 2008, to be joined by Russia and possibly other non-OPEC producers.

Crude prices were pressured by data showing oil output in Russia rose in November to a post-Soviet high and Moscow&#39;s plan to use its record November oil production as its baseline when it cuts output.

With cuts being implemented next year only against end-2016 levels, analysts said there was still a possibility that oversupply, which has halved oil prices since 2014, remains a factor next year.

&quot;Global, and especially US, crude oil inventories are currently at extremely high levels after two years of massive oversupply,&quot; Societe Generale analysts said.

&quot;While the OPEC agreement is very significant and will result in some moderate global stock draws next year, it is likely to take more than one year for crude inventory levels to return to more normal levels.&quot;

Front-month Brent crude futures ended the session up at $54.46 a barrel, up 52 cents, 0.96 per cent. The contract rose more than 15 per cent for the week, its biggest gain since early 2009.

US&nbsp;crude&nbsp;settled at $51.68 per barrel, up 62 cents or 1.21 per cent and notched its biggest weekly gain since early 2011, with a rise of 12 per cent.

Oil drew support from a weak dollar, which slipped against a basket of currencies. Still, traders said profit-taking ahead of the weekend limited crude&#39;s price gains.

&quot;The petroleum markets have settled into quieter mixed flows as the waves created by Wednesday&#39;s OPEC announcement gradually dissipate, with some light profit taking emerging in crude oil,&quot; said Tim Evans, energy futures specialist at Citigroup.

&quot;A weaker US&nbsp;dollar is typically supportive for commodity prices and may have helped steady crude oil from the lows in today&#39;s trade.&quot;

Prices rose to session highs after the White House said it expects US&nbsp;President Barack Obama to sign US&nbsp;legislation extending sanctions against Iran for 10 years into law.

Iran is also seen as a wild card in the execution of the OPEC deal.

US&nbsp;President-elect Donald Trump&#39;s transition team is examining proposals for new non-nuclear sanctions on Iran, the Financial Times reported on Friday.

Iran had threatened on Friday to retaliate against the US&nbsp;Senate&#39;s vote to extend the Iran Sanctions Act (ISA) for 10 years, saying it violated last year&#39;s deal with six major powers that curbed its nuclear programme.

The sanctions were first adopted in 1996 to punish investments in Iran&#39;s energy industry and deter its pursuit of nuclear weapons.

Meanwhile, US&nbsp;energy companies extended their recovery in oil drilling into a seventh month this week, data from energy services firm Baker Hughes Inc&nbsp;showed on Friday.

(Reuters)

US crude settled at $51.68 per barrel, up 62 cents or 1.21 per cent and notched its biggest weekly gain since early 2011

Oil prices rallied for their best week in at least five years on Friday, steadying above $51 a barrel, following OPEC's decision to cut crude output to rein in a global glut that has weighed on prices for more than two years. After the deal was announced on Wednesday, the market focused on the implementation and impact of OPEC's first output cuts since 2008, to be joined by Russia and possibly other non-OPEC producers. Crude prices were pressured by data showing oil output in Russia rose in November to a post-Soviet high and Moscow's plan to use its record November oil production as its baseline when it cuts output. With cuts being implemented next year only against end-2016 levels, analysts said there was still a possibility that oversupply, which has halved oil prices since 2014, remains a factor next year. "Global, and especially US, crude oil inventories are currently at extremely high levels after two years of massive oversupply," Societe Generale analysts said. "While the OPEC agreement is very significant and will result in some moderate global stock draws next year, it is likely to take more than one year for crude inventory levels to return to more normal levels." Front-month Brent crude futures ended the session up at $54.46 a barrel, up 52 cents, 0.96 per cent. The contract rose more than 15 per cent for the week, its biggest gain since early 2009. US crude settled at $51.68 per barrel, up 62 cents or 1.21 per cent and notched its biggest weekly gain since early 2011, with a rise of 12 per cent. Oil drew support from a weak dollar, which slipped against a basket of currencies. Still, traders said profit-taking ahead of the weekend limited crude's price gains. "The petroleum markets have settled into quieter mixed flows as the waves created by Wednesday's OPEC announcement gradually dissipate, with some light profit taking emerging in crude oil," said Tim Evans, energy futures specialist at Citigroup. "A weaker US dollar is typically supportive for commodity prices and may have helped steady crude oil from the lows in today's trade." Prices rose to session highs after the White House said it expects US President Barack Obama to sign US legislation extending sanctions against Iran for 10 years into law. Iran is also seen as a wild card in the execution of the OPEC deal. US President-elect Donald Trump's transition team is examining proposals for new non-nuclear sanctions on Iran, the Financial Times reported on Friday. Iran had threatened on Friday to retaliate against the US Senate's vote to extend the Iran Sanctions Act (ISA) for 10 years, saying it violated last year's deal with six major powers that curbed its nuclear programme. The sanctions were first adopted in 1996 to punish investments in Iran's energy industry and deter its pursuit of nuclear weapons. Meanwhile, US energy companies extended their recovery in oil drilling into a seventh month this week, data from energy services firm Baker Hughes Inc showed on Friday. (Reuters)

Oil rallies to best week in years after OPEC output deal

Iranian oil minister, Bijan Zanganeh said today, that the country wants its pre-sanctions share of the crude oil market. 
 
This dampens the prospects of agreement on an output freeze at an Organization of the Petroleum Exporting Countries (OPEC) meeting next month.&nbsp; 
 
&quot;Iran had no role in disrupting the stability of the oil market and after the (lifting of) sanctions we seek to revive our share in the global crude market,&quot; the ministry&#39;s SHANA news service quoted him as saying.&nbsp; 
 
On Thursday, he had announced he would attend the informal OPEC meeting in Algiers in late September, on a possible output freeze with Russia. 
 
But today he insisted Iran would not be abandoning its ambitions to restore its market share after the nuclear agreement with world powers led to the&nbsp;lifting of sanctions on its oil exports last year. 
 
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<h5>&quot;Iran will cooperate with OPEC on improving prices and the state of the crude market, but we expect our right to restore our lost market share in the market to be considered,&quot; Iran&#39;s oil minister said.</h5>
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&quot;Iran will cooperate with OPEC on improving prices and the state of the crude market, but we expect our right to restore our lost market share in the market to be considered,&quot; Zanganeh said. 
 
&quot;Iran has made its sacrifices for the market and it`s no longer the time for Iran,&quot; &nbsp;Iranian website, Mizan Online, reported him saying. 
 
Iran has doubled its exports of oil and gas to 2.7 million barrels per day (bpd) since signing the nuclear deal. 
The total output has risen from 2.7 million bpd to 3.85 million bpd. It is close to the level before international sanctions were imposed in 2012.&nbsp; 
 
&quot;When the instability occurred in the market, ... Iran&#39;s oil exports were less than one million bpd,&quot; Bijan Zanganeh said.&nbsp; 
 
&quot;We expect those who disrupted the market&#39;s stability to take the highest responsibility in restoring stability&quot; he said. 
 
Earlier on Friday, prices fell in Asian trade after Saudi energy minister Khalid Al-Falih played down prospects of any major move on output. 
 
&quot;I don&#39;t believe that an intervention of significance is required. I certainly don&#39;t advocate a cut,&quot; he told Bloomberg News. 
 
In April, OPEC&#39;s attempt to freeze output collapsed due to Iran&#39;s refusal to join talks. 
 
(WION with inputs from AFP)

This could dampen the prospects of agreement on an output freeze at an OPEC meeting in September

Iranian oil minister, Bijan Zanganeh said today, that the country wants its pre-sanctions share of the crude oil market. This dampens the prospects of agreement on an output freeze at an Organization of the Petroleum Exporting Countries (OPEC) meeting next month. "Iran had no role in disrupting the stability of the oil market and after the (lifting of) sanctions we seek to revive our share in the global crude market," the ministry's SHANA news service quoted him as saying. On Thursday, he had announced he would attend the informal OPEC meeting in Algiers in late September, on a possible output freeze with Russia. But today he insisted Iran would not be abandoning its ambitions to restore its market share after the nuclear agreement with world powers led to the lifting of sanctions on its oil exports last year. "Iran will cooperate with OPEC on improving prices and the state of the crude market, but we expect our right to restore our lost market share in the market to be considered," Iran's oil minister said. "Iran will cooperate with OPEC on improving prices and the state of the crude market, but we expect our right to restore our lost market share in the market to be considered," Zanganeh said. "Iran has made its sacrifices for the market and it`s no longer the time for Iran," Iranian website, Mizan Online, reported him saying. Iran has doubled its exports of oil and gas to 2.7 million barrels per day (bpd) since signing the nuclear deal. The total output has risen from 2.7 million bpd to 3.85 million bpd. It is close to the level before international sanctions were imposed in 2012. "When the instability occurred in the market, ... Iran's oil exports were less than one million bpd," Bijan Zanganeh said. "We expect those who disrupted the market's stability to take the highest responsibility in restoring stability" he said. Earlier on Friday, prices fell in Asian trade after Saudi energy minister Khalid Al-Falih played down prospects of any major move on output. "I don't believe that an intervention of significance is required. I certainly don't advocate a cut," he told Bloomberg News. In April, OPEC's attempt to freeze output collapsed due to Iran's refusal to join talks. (WION with inputs from AFP)

Iran wants pre-sanctions crude oil market share

Iran&#39;s oil minister said today the oil market was oversupplied but predicted balance between demand and supply will be restored, Iranian state television reported on Monday. 
 
&quot;The oil market is oversupplied now but there are expectations that there will be balance between demand and supply in the market,&quot; Bijan Namdar Zanganeh was quoted as saying by Iran&#39;s state TV, without saying when that may happen. 
 
A Reuters survey on Friday showed the Organization of the Petroleum Exporting Countries&#39; (OPEC) oil output was likely to reach its highest in recent history in July as Iraq pumps more and Nigeria manages to export additional crude despite militant attacks. 
 
Supply from OPEC rose to 33.41 million barrels per day (bpd) in July from a revised 33.31 million bpd in June, according to the survey based on shipping data and information from industry sources. 
 
Iran planning to raise crude production&nbsp; 
 
Since a landmark nuclear deal was reached with major powers in 2015 leading to lifting of sanctions, Iran has been planning to raise its crude production to the pre-sanctions level of four million barrels per day (bpd). 
 
To regain the production level, Iran has sweetened the terms it offers on oil development contracts to draw the interest of foreign investors. Iran needs $200 billion in foreign money to reach its goal. 
 
Zanganeh said that the first of Iran&#39;s new oil and gas investment contracts for international companies will be launched this week. 
 
&quot;The government will approve the new contracts on Wednesday,&quot; Zanganeh told reporters, state TV reported. 
 
The launch of Iran&#39;s new oil contracts, the Iran Petroleum Contract (IPC) has been postponed several times as hardline rivals of pragmatist President Hassan Rouhani resisted any deal that could end the buy-back system. 
 
Iran&#39;s top authority supreme leader Ayatollah Ali Khamenei said last month that no new oil and gas contracts for international companies will be awarded without necessary reforms. 
 
&quot;Iran&#39;s priority is developing jointly owned oil and gas fields, as well as those in which we are after improved oil recovery.&quot; Zanganeh said 
 
Oil majors have said they would only go back to Iran if it made major changes to the buy-back contracts of the 1990s, which companies such as France&#39;s Total or Italy&#39;s Eni, said made them no money or even incurred losses. 
 
Under Iran&#39;s buy-back system foreign firms have been banned from booking reserves or taking equity stakes in Iranian companies. 
 
(Reuters)

A recent survey showed OPEC output was likely to reach its highest in recent history

Iran's oil minister said today the oil market was oversupplied but predicted balance between demand and supply will be restored, Iranian state television reported on Monday. "The oil market is oversupplied now but there are expectations that there will be balance between demand and supply in the market," Bijan Namdar Zanganeh was quoted as saying by Iran's state TV, without saying when that may happen. A Reuters survey on Friday showed the Organization of the Petroleum Exporting Countries' (OPEC) oil output was likely to reach its highest in recent history in July as Iraq pumps more and Nigeria manages to export additional crude despite militant attacks. Supply from OPEC rose to 33.41 million barrels per day (bpd) in July from a revised 33.31 million bpd in June, according to the survey based on shipping data and information from industry sources. Iran planning to raise crude production Since a landmark nuclear deal was reached with major powers in 2015 leading to lifting of sanctions, Iran has been planning to raise its crude production to the pre-sanctions level of four million barrels per day (bpd). To regain the production level, Iran has sweetened the terms it offers on oil development contracts to draw the interest of foreign investors. Iran needs $200 billion in foreign money to reach its goal. Zanganeh said that the first of Iran's new oil and gas investment contracts for international companies will be launched this week. "The government will approve the new contracts on Wednesday," Zanganeh told reporters, state TV reported. The launch of Iran's new oil contracts, the Iran Petroleum Contract (IPC) has been postponed several times as hardline rivals of pragmatist President Hassan Rouhani resisted any deal that could end the buy-back system. Iran's top authority supreme leader Ayatollah Ali Khamenei said last month that no new oil and gas contracts for international companies will be awarded without necessary reforms. "Iran's priority is developing jointly owned oil and gas fields, as well as those in which we are after improved oil recovery." Zanganeh said Oil majors have said they would only go back to Iran if it made major changes to the buy-back contracts of the 1990s, which companies such as France's Total or Italy's Eni, said made them no money or even incurred losses. Under Iran's buy-back system foreign firms have been banned from booking reserves or taking equity stakes in Iranian companies. (Reuters)

Iran says crude market oversupplied but balance will be restored

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