The conflict in West Asia has intensified once again as the United States launched a fresh wave of military strikes against Iran, following Tehran's missile attacks targeting American bases in Jordan. The renewed escalation comes after nearly a week-long pause in hostilities, raising fresh concerns over regional stability. According to US Central Command (CENTCOM), the strikes were carried out in response to attempted Iranian attacks on US forces stationed across the region. Iran confirmed launching ballistic missiles toward US positions in Jordan, while the US said all incoming missiles were successfully intercepted.

US-Iran Conflict Escalates: Fresh Strikes, Missile Attacks and Rising West Asia Tensions

The Strait of Hormuz is the world’s most critical oil chokepoint, connecting the Persian Gulf to the open ocean. If Iran were to block this narrow 21-mile waterway, it would trap nearly 20 per cent of the world's daily oil supply.

What if Iran blocks the Strait of Hormuz? Understanding its impact on global markets

Strait of hormuz is a vital oil trade route between oman and iran, carrying 25 per cent of global oil. nations like China, India, Japan, and South Korea heavily depend on it. any disruption can spike prices and affect global energy security.


Strait of Hormuz: Top 5 countries that would be most impacted due to closure

US President Donald Trump said he is "Pissed off" with Russian President Vladimir Putin. He threatened to impose "secondary tariffs" on Russian oil if a truce with Ukraine is not done.<o:p></o:p>
In a telephone conversation with NBC, Trump said that if Moscow obstructs his attempts to resolve the conflict in Ukraine, he will slap secondary tariffs of 25 per cent to 50 per cent on all Russian oil within a month.<o:p></o:p>
Since Russia is among the top three oil producers in the world, penalising Moscow's supplies might significantly impact the oil market, leading to a surge in global inflationary pressures.<o:p></o:p>
The latest news comes after the US imposed 25 per cent secondary tariffs on countries buying oil from sanctioned Venezuela. Separately, Trump also hinted at "Secondary tariffs" on Iranian oil that are not yet defined.<o:p></o:p>
With the uncertainty around trade tariffs in the background, the latest threat to Russia adds a new layer of complexity to the global oil trade. The risk of higher crude prices is high, especially for major oil importers like India and China. For India, this comes at a crucial time.<o:p></o:p>
Should the US press ahead, India, which has become a key buyer of discounted Russian barrels, would face extreme pressure. Separately, in January 2024, India accounted for nearly half of Venezuela's crude exports, making it the largest buyer that month.<o:p></o:p>
<h2 class="MsoNormal">Secondary oil tariffs: Impact on India<o:p></o:p></h2>
India's energy ties have been improving with those nations, with the country eyeing long-term oil contracts. However, new secondary sanctions could disrupt supplies, increase costs, and force refiners to rethink their sourcing strategy.<o:p></o:p>
The "Secondary tariffs" are a new weapon in Trump's arsenal. Direct sanctions prohibit US entities from trading with Venezuela. Secondary tariffs penalise other countries for doing business with sanctioned nations.<o:p></o:p>
It's an indirect way to tighten economic pressure globally, without completely cutting off trade. For global markets, this escalating tariff war means uncertainty. Businesses and governments are watching this development closely.<o:p></o:p>
Trade barriers threaten to disrupt supply chains, raise costs, and impact economic growth. India depends on imports for over 85 per cent of its oil needs and has been looking to diversify its crude imports.<o:p></o:p>
With Venezuela's, Iran's and Russia's oil now under US scrutiny, Indian refiners need to rework sourcing strategies. This could push them to increase their dependence on West Asian suppliers.<o:p></o:p>
The question is: Will India risk US trade tensions to secure discounted Russian, Iranian and Venezuelan crude, or will it shift focus to other suppliers?<o:p></o:p>
(With inputs from the agencies)<o:p></o:p>

Business & Economy: In a telephone conversation with NBC, Trump said that if Moscow obstructs his attempts to resolve the conflict in Ukraine, he will slap secondary tariffs of 25 per cent to 50 per cent on all Russian oil within a month.

US President Donald Trump said he is "Pissed off" with Russian President Vladimir Putin. He threatened to impose "secondary tariffs" on Russian oil if a truce with Ukraine is not done. In a telephone conversation with NBC, Trump said that if Moscow obstructs his attempts to resolve the conflict in Ukraine, he will slap secondary tariffs of 25 per cent to 50 per cent on all Russian oil within a month. Since Russia is among the top three oil producers in the world, penalising Moscow's supplies might significantly impact the oil market, leading to a surge in global inflationary pressures. The latest news comes after the US imposed 25 per cent secondary tariffs on countries buying oil from sanctioned Venezuela. Separately, Trump also hinted at "Secondary tariffs" on Iranian oil that are not yet defined. With the uncertainty around trade tariffs in the background, the latest threat to Russia adds a new layer of complexity to the global oil trade. The risk of higher crude prices is high, especially for major oil importers like India and China. For India, this comes at a crucial time. Should the US press ahead, India, which has become a key buyer of discounted Russian barrels, would face extreme pressure. Separately, in January 2024, India accounted for nearly half of Venezuela's crude exports, making it the largest buyer that month. Secondary oil tariffs: Impact on India India's energy ties have been improving with those nations, with the country eyeing long-term oil contracts. However, new secondary sanctions could disrupt supplies, increase costs, and force refiners to rethink their sourcing strategy. The "Secondary tariffs" are a new weapon in Trump's arsenal. Direct sanctions prohibit US entities from trading with Venezuela. Secondary tariffs penalise other countries for doing business with sanctioned nations. It's an indirect way to tighten economic pressure globally, without completely cutting off trade. For global markets, this escalating tariff war means uncertainty. Businesses and governments are watching this development closely. Trade barriers threaten to disrupt supply chains, raise costs, and impact economic growth. India depends on imports for over 85 per cent of its oil needs and has been looking to diversify its crude imports. With Venezuela's, Iran's and Russia's oil now under US scrutiny, Indian refiners need to rework sourcing strategies. This could push them to increase their dependence on West Asian suppliers. The question is: Will India risk US trade tensions to secure discounted Russian, Iranian and Venezuelan crude, or will it shift focus to other suppliers? (With inputs from the agencies)

Trump's tariff threat shakes up global oil trade

Prime Minister Narendra Modi will interact with CEOs of leading global oil and gas companies on Monday at an annual event organised by the NITI Aayog and the Ministry of Petroleum and Natural Gas.

The Prime Minister's Office (PMO) said that this is the fifth such event organised by the NITI Aayog and Ministry of Petroleum and Natural Gas, and around 45 CEOs of major oil and gas companies will attend the roundtable this year.

The objective behind the meeting is to deliver a global platform to understand best-practices, discuss reforms, and inform strategies for accelerating investments into the Indian oil and gas value chain, the PMO said in a statement.

Also read:&nbsp;<a href="https://www.wionews.com/india-news/indias-refinery-processing-limps-to-six-month-peak-337556" hreflang="en">India's refinery processing limps to six-month peak</a>

The annual interaction has gradually become one of the most important gatherings of not only intellectual debate but also of executive action, it said.

The event also grows in stature with the rise of India, the world's third-largest energy consumer, which is likely to see investment of over USD 300 billion by 2030 in the oil and gas sector to meet the rising demand, the PMO said.

The prime minister will interact with the CEOs at 5.30 pm IST on October 26 via video conference, the statement said.

India is an important player in the global oil and gas sector, being the third-largest consumer of crude oil and the fourth-largest LNG importer, the PMO said.

Realising the need for India to graduate from a passive consumer to an active and vocal stake-holder in the global oil and gas value chain, NITI Aayog initiated the first roundtable of global oil and gas CEOs with the prime minister in 2016.

The growth of the event was apparent as around 45-50 global CEOs and key stakeholders who shape the global oil and gas sector assembled every subsequent year to interact and discuss the issues and opportunities with the prime minister, the PMO said. 
The impact of the annual global CEOs interaction can be seen in the gravity of discussion, quality of suggestions and the seriousness with which they are acted upon, it said.

Prime Minister Narendra Modi will interact with CEOs of leading global oil and gas companies on Monday at an annual event organised by the NITI Aayog and the Ministry of Petroleum and Natural Gas.

Prime Minister Narendra Modi will interact with CEOs of leading global oil and gas companies on Monday at an annual event organised by the NITI Aayog and the Ministry of Petroleum and Natural Gas. The Prime Minister's Office (PMO) said that this is the fifth such event organised by the NITI Aayog and Ministry of Petroleum and Natural Gas, and around 45 CEOs of major oil and gas companies will attend the roundtable this year. The objective behind the meeting is to deliver a global platform to understand best-practices, discuss reforms, and inform strategies for accelerating investments into the Indian oil and gas value chain, the PMO said in a statement. Also read: India's refinery processing limps to six-month peak The annual interaction has gradually become one of the most important gatherings of not only intellectual debate but also of executive action, it said. The event also grows in stature with the rise of India, the world's third-largest energy consumer, which is likely to see investment of over USD 300 billion by 2030 in the oil and gas sector to meet the rising demand, the PMO said. The prime minister will interact with the CEOs at 5.30 pm IST on October 26 via video conference, the statement said. India is an important player in the global oil and gas sector, being the third-largest consumer of crude oil and the fourth-largest LNG importer, the PMO said. Realising the need for India to graduate from a passive consumer to an active and vocal stake-holder in the global oil and gas value chain, NITI Aayog initiated the first roundtable of global oil and gas CEOs with the prime minister in 2016. The growth of the event was apparent as around 45-50 global CEOs and key stakeholders who shape the global oil and gas sector assembled every subsequent year to interact and discuss the issues and opportunities with the prime minister, the PMO said. The impact of the annual global CEOs interaction can be seen in the gravity of discussion, quality of suggestions and the seriousness with which they are acted upon, it said.

PM Modi to interact with CEOs of leading global oil and gas firms on Monday

Oil slipped on Friday amid concerns over the outlook for the global economy, but output cuts agreed by major exporters underpinned crude prices and kept markets on track for a strong weekly climb.

International Brent crude futures were at $61.55 per barrel at 0333 GMT, down 13 cents, or 0.2 per cent, from their last close.

US West Texas Intermediate (WTI) crude futures dropped 7 cents, or 0.1 per cent, to $52.52 per barrel.

Traders said the declines came on lingering concerns over the health of the global economy.

"If we experience an economic slowdown, crude will underperform due to its correlation to growth," said Hue Frame, portfolio manager at Frame Funds in Sydney.

Most analysts have downgraded their global economic growth forecasts below 3 per cent for 2019, with some even fearing a looming recession amid trade disputes and spiralling debt.

For now, however, there is hope that the trade war between Washington and Beijing may be resolved as global markets, including oil, took heart from talks between the two sides this week.

Despite Friday's price falls, Brent and WTI are set for weekly gains of more than 7 and 8 per cent respectively.

Beyond global economics, oil markets are receiving support from supply cuts led by the Organisation of the Petroleum Exporting Countries (OPEC) aimed at reining in a glut that emerged in the second-half of 2018.

A key reason for the emerging glut was the United States where crude oil production soared by more than 2 million barrels per day (bpd) in 2018 to a record 11.7 million bpd.

Consultancy JBC Energy this week said it was likely that US crude oil production was already "significantly above 12 million bpd" by January 2019.

Given the overall supply and demand balance, Swiss bank Julius Baer said it was "price neutral" in its oil forecast.

"We see the oil market as well balanced into the foreseeable future, as the petro-nations make space for further US shale production growth," said Norbert Ruecker, head of commodity research at the bank.

Oil slipped on Friday amid concerns over the outlook for the global economy, but output cuts agreed by major exporters underpinned crude prices and kept markets on track for a strong weekly climb.

Oil slipped on Friday amid concerns over the outlook for the global economy, but output cuts agreed by major exporters underpinned crude prices and kept markets on track for a strong weekly climb. International Brent crude futures were at $61.55 per barrel at 0333 GMT, down 13 cents, or 0.2 per cent, from their last close. US West Texas Intermediate (WTI) crude futures dropped 7 cents, or 0.1 per cent, to $52.52 per barrel. Traders said the declines came on lingering concerns over the health of the global economy. "If we experience an economic slowdown, crude will underperform due to its correlation to growth," said Hue Frame, portfolio manager at Frame Funds in Sydney. Most analysts have downgraded their global economic growth forecasts below 3 per cent for 2019, with some even fearing a looming recession amid trade disputes and spiralling debt. For now, however, there is hope that the trade war between Washington and Beijing may be resolved as global markets, including oil, took heart from talks between the two sides this week. Despite Friday's price falls, Brent and WTI are set for weekly gains of more than 7 and 8 per cent respectively. Beyond global economics, oil markets are receiving support from supply cuts led by the Organisation of the Petroleum Exporting Countries (OPEC) aimed at reining in a glut that emerged in the second-half of 2018. A key reason for the emerging glut was the United States where crude oil production soared by more than 2 million barrels per day (bpd) in 2018 to a record 11.7 million bpd. Consultancy JBC Energy this week said it was likely that US crude oil production was already "significantly above 12 million bpd" by January 2019. Given the overall supply and demand balance, Swiss bank Julius Baer said it was "price neutral" in its oil forecast. "We see the oil market as well balanced into the foreseeable future, as the petro-nations make space for further US shale production growth," said Norbert Ruecker, head of commodity research at the bank.

Oil slips on economic worries, but still set for strong weekly gain

Nepal&rsquo;s state-owned oil monopoly Nepal Oil Corporation (NOC) has not been implementing the automated pricing system -- under which fuel prices in the domestic market are revised in line with the price list sent by its sole supplier Indian Oil Corporation -- it launched two and a half years ago, The Kathmandu Post reports. 
&nbsp; 
As a result, oil prices in Nepal are higher despite a sharp fall in global prices, forcing consumers to pay more. 
&nbsp; 
NOC has also set up a price stabilisation fund to implement the auto pricing mechanism, but it has not been implementing the system fully. 
&nbsp; 
The corporation says it does not slash fuel prices in line with global trends is because of the price difference in Nepal and in Indian towns across the border. According to NOC, the price difference encourages cross-border smuggling from Nepal to India. 
&nbsp; 
NOC currently makes a profit of Rs 5.69 (Nepalese) per litre on petrol, Rs 1.47 per litre on diesel and Rs 17.47 per litre on kerosene, according to The Kathmandu Post. 
&nbsp; 
Last week, NOC reduced petrol, diesel and kerosene prices by Rs 1.50 per litre despite a sharp fall in oil prices. The corporation&rsquo;s projected profit stands at Rs800 million per month following the price revision. 
&nbsp; 
&nbsp; 
&nbsp;

Nepal?s state-owned oil monopoly Nepal Oil Corporation (NOC) has not been implementing the automated pricing system it launched in 2014

Nepal’s state-owned oil monopoly Nepal Oil Corporation (NOC) has not been implementing the automated pricing system -- under which fuel prices in the domestic market are revised in line with the price list sent by its sole supplier Indian Oil Corporation -- it launched two and a half years ago, The Kathmandu Post reports. As a result, oil prices in Nepal are higher despite a sharp fall in global prices, forcing consumers to pay more. NOC has also set up a price stabilisation fund to implement the auto pricing mechanism, but it has not been implementing the system fully. The corporation says it does not slash fuel prices in line with global trends is because of the price difference in Nepal and in Indian towns across the border. According to NOC, the price difference encourages cross-border smuggling from Nepal to India. NOC currently makes a profit of Rs 5.69 (Nepalese) per litre on petrol, Rs 1.47 per litre on diesel and Rs 17.47 per litre on kerosene, according to The Kathmandu Post. Last week, NOC reduced petrol, diesel and kerosene prices by Rs 1.50 per litre despite a sharp fall in oil prices. The corporation’s projected profit stands at Rs800 million per month following the price revision.

Nepal: Fuel prices higher despite fall in global prices

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

The oil market is now in balance thanks to unplanned outages and robust demand, particularly from emerging economies, but this equilibrium will tilt into surplus again early next year, the International Energy Agency (IEA) said today. 
 
The agency said in its monthly report that demand growth in 2017 is likely to reach 1.3 million barrels per day (bpd), the same level at which it estimates growth for this year, having revised up its May 2016 forecast of 1.2 million bpd. 
 
&quot;Again, on the planning assumption that OPEC oil production grows modestly in 2017, we expect to see global oil stocks build slightly in the first half of 2017 before falling slightly more in the second half of 2017. For the year as a whole, there will be a very small stock draw of 0.1 million bpd,&quot; &nbsp; said&nbsp;the IEA. 
 
&quot;At halfway in 2016, the oil market looks to be balancing; but we must not forget that there are large volumes of shut-in production, mainly in Nigeria and Libya, that could return to the market, and the strong start for oil demand growth seen this year might not be maintained,&quot; said&nbsp;the Paris-based agency . 
 
Most of the anticipated demand growth this year and in 2017 is expected to come from nations that are not part of the Organisation for Economic Cooperation and Development (OECD), the agency said. 
 
&quot;We must stress that this is our first look at 2017 and the huge number of moving parts will see us amend our numbers accordingly. However ... the direction of travel seems to be clear,&quot; said&nbsp;the IEA. 
 
The IEA&#39;s latest demand estimate for the first three months of this year shows global oil deliveries rising by 1.6 million bpd to 95.2 million bpd, with nine out of every 10 extra barrels going to a non-OECD economy. 
 
On the supply side, the IEA said output fell by 590,000 bpd year-on-year to 95.4 million bpd in May, the first major decline since the start of 2013, as spending cuts and outages reduced non-OPEC production by 1.3 million bpd from a year earlier. 
 
Having fallen by 900,000 bpd in 2016, non-OPEC supply growth is expected to rise by 200,000 bpd in 2017, lifting output to 57 million bpd, the IEA said. 
 
Crude output from the Organization of the Petroleum Exporting Countries fell by 100,000 bpd in May to 32.61 million bpd, after a spate of attacks on oil infrastructure in Nigeria offset higher output from the Middle East. Production was still 500,000 bpd higher than in May last year. 
 
&quot;Iran has clearly emerged as OPEC&#39;s fastest source of supply growth this year, with an anticipated annual gain of nearly 700,000 bpd,&quot; the IEA said. 
 
The only other substantial increase from OPEC in 2017 could be from Nigeria, should security issues in the Niger Delta be resolved. 
(Reuters)

Large volumes of shut-in production from Nigeria and Libya can return to the market and that may change oil demand growth

The oil market is now in balance thanks to unplanned outages and robust demand, particularly from emerging economies, but this equilibrium will tilt into surplus again early next year, the International Energy Agency (IEA) said today. The agency said in its monthly report that demand growth in 2017 is likely to reach 1.3 million barrels per day (bpd), the same level at which it estimates growth for this year, having revised up its May 2016 forecast of 1.2 million bpd. "Again, on the planning assumption that OPEC oil production grows modestly in 2017, we expect to see global oil stocks build slightly in the first half of 2017 before falling slightly more in the second half of 2017. For the year as a whole, there will be a very small stock draw of 0.1 million bpd," said the IEA. "At halfway in 2016, the oil market looks to be balancing; but we must not forget that there are large volumes of shut-in production, mainly in Nigeria and Libya, that could return to the market, and the strong start for oil demand growth seen this year might not be maintained," said the Paris-based agency . Most of the anticipated demand growth this year and in 2017 is expected to come from nations that are not part of the Organisation for Economic Cooperation and Development (OECD), the agency said. "We must stress that this is our first look at 2017 and the huge number of moving parts will see us amend our numbers accordingly. However ... the direction of travel seems to be clear," said the IEA. The IEA's latest demand estimate for the first three months of this year shows global oil deliveries rising by 1.6 million bpd to 95.2 million bpd, with nine out of every 10 extra barrels going to a non-OECD economy. On the supply side, the IEA said output fell by 590,000 bpd year-on-year to 95.4 million bpd in May, the first major decline since the start of 2013, as spending cuts and outages reduced non-OPEC production by 1.3 million bpd from a year earlier. Having fallen by 900,000 bpd in 2016, non-OPEC supply growth is expected to rise by 200,000 bpd in 2017, lifting output to 57 million bpd, the IEA said. Crude output from the Organization of the Petroleum Exporting Countries fell by 100,000 bpd in May to 32.61 million bpd, after a spate of attacks on oil infrastructure in Nigeria offset higher output from the Middle East. Production was still 500,000 bpd higher than in May last year. "Iran has clearly emerged as OPEC's fastest source of supply growth this year, with an anticipated annual gain of nearly 700,000 bpd," the IEA said. The only other substantial increase from OPEC in 2017 could be from Nigeria, should security issues in the Niger Delta be resolved. (Reuters)

IEA sees oil market balance in 2016, surplus to re-emerge next year

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