Global oil prices jumped higher after the organisation of the petroleum exporting nation's OPEC and its allies agreed to extend most oil output cuts into April.

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Oil prices tumbled nearly 4% to a fresh seven-month low, extending recent heavy losses following an unexpected build in US&nbsp;crude supplies and fears of lower crude demand due to deepening US-China trade tensions.

Brent crude futures were down $2.17, or 3.7%, at $56.77 a barrel by 9:44 a.m. CDT (1444 GMT), setting a fresh seven-month low. Prices have lost more than 20% since hitting their 2019 peak in April.

US&nbsp;West Texas Intermediate (WTI) crude futures were down $2.06, or 3.8%, at $51.57.

Brent has plunged more than 12% after U.S. President Donald Trump said last week that he would slap a 10% tariff on a further $300 billion in Chinese imports from Sept. 1, sending global equity markets into a tailspin.

"The market continues to trade lower on concerns about demand growth and the idea that economic growth can be impacted by the trade war," said Gene McGillian, vice president of market research at Tradition Energy in Stamford Connecticut.

"The market isn't concerned about anything other than how demand is going to play out through the rest of the year," he said.

The oil markets extended losses after government data showed that U.S. crude stockpiles rose unexpectedly last week, increasing 2.4 million barrels, compared with analysts' expectations for a decrease of 2.8 million barrels.

The US&nbsp;Energy Information Administration (EIA) earlier this week reduced its forecast U.S. demand for crude and liquid fuels, expecting it to rise 210,000 barrels per day (bpd) this year - 40,000 bpd lower than its forecast last month.

The agency also cut its forecast for global crude and liquids consumption by 0.1% for both 2019 and 2020. Meanwhile, U.S. crude production was set to rise 1.28 million bpd to 12.27 million bpd this year.

"People saw those numbers and it put a negative vibe in the market," said Robert Yawger, director of energy futures at Mizuho in New York.

Trump on Tuesday dismissed fears that the trade row with China could be drawn out further. His comments failed to prevent shares in Asia from falling for an eighth straight session while London's FTSE 100 gained 0.4%.

But demand for safe-haven assets such as government debt underscored lingering anxiety over recession risks.

Tensions in the Middle East remain high after Iran seized a number of tankers in recent weeks in the Strait of Hormuz, a major chokepoint for oil shipments.

Saudi Energy Minister Khalid al-Falih and U.S. Energy Secretary Rick Perry on Tuesday expressed mutual concern over threats targeting freedom of maritime traffic in the Gulf.

Oil prices tumbled nearly 4% to a fresh seven-month low, extending recent heavy losses following an unexpected build in US crude supplies and fears of lower crude demand due to deepening US-China trade tensions.

Oil prices tumbled nearly 4% to a fresh seven-month low, extending recent heavy losses following an unexpected build in US crude supplies and fears of lower crude demand due to deepening US-China trade tensions. Brent crude futures were down $2.17, or 3.7%, at $56.77 a barrel by 9:44 a.m. CDT (1444 GMT), setting a fresh seven-month low. Prices have lost more than 20% since hitting their 2019 peak in April. US West Texas Intermediate (WTI) crude futures were down $2.06, or 3.8%, at $51.57. Brent has plunged more than 12% after U.S. President Donald Trump said last week that he would slap a 10% tariff on a further $300 billion in Chinese imports from Sept. 1, sending global equity markets into a tailspin. "The market continues to trade lower on concerns about demand growth and the idea that economic growth can be impacted by the trade war," said Gene McGillian, vice president of market research at Tradition Energy in Stamford Connecticut. "The market isn't concerned about anything other than how demand is going to play out through the rest of the year," he said. The oil markets extended losses after government data showed that U.S. crude stockpiles rose unexpectedly last week, increasing 2.4 million barrels, compared with analysts' expectations for a decrease of 2.8 million barrels. The US Energy Information Administration (EIA) earlier this week reduced its forecast U.S. demand for crude and liquid fuels, expecting it to rise 210,000 barrels per day (bpd) this year - 40,000 bpd lower than its forecast last month. The agency also cut its forecast for global crude and liquids consumption by 0.1% for both 2019 and 2020. Meanwhile, U.S. crude production was set to rise 1.28 million bpd to 12.27 million bpd this year. "People saw those numbers and it put a negative vibe in the market," said Robert Yawger, director of energy futures at Mizuho in New York. Trump on Tuesday dismissed fears that the trade row with China could be drawn out further. His comments failed to prevent shares in Asia from falling for an eighth straight session while London's FTSE 100 gained 0.4%. But demand for safe-haven assets such as government debt underscored lingering anxiety over recession risks. Tensions in the Middle East remain high after Iran seized a number of tankers in recent weeks in the Strait of Hormuz, a major chokepoint for oil shipments. Saudi Energy Minister Khalid al-Falih and U.S. Energy Secretary Rick Perry on Tuesday expressed mutual concern over threats targeting freedom of maritime traffic in the Gulf.

Oil slumps to seven-month low on trade tensions, surprise US stock build

Oil Minister Dharmendra Pradhan Monday had a telephonic conversation with US Secretary of Energy Rick Perry to discuss ways to enhance energy security and impact of crude oil price volatility on consuming nations.

"Discussed ways to work together to enhance energy security, further develop a gas-based economy in India &amp; expand energy and innovation linkages to bolster the India-US Strategic Energy Partnership that was launched in April last year," Pradhan tweeted after the call.

India has time and again warned oil producers that higher crude prices are hurting global economic growth and they should do more to bring down rates to reasonable levels.

"Also discussed about crude oil price volatility and its impact on the Indian consumer. I also pointed to the important role that the US plays in bringing global price stability," Pradhan said in another tweet.

Volatility in oil prices has resulted in a seesaw in retail petrol and diesel prices with rates rising on some days and falling on other.

The government is looking at private investment to raise domestic oil and gas production, which has stagnated for the last few years while fuel demand has been rising by 5-6 per cent annually.

India is dependent on imports to meet its 83 per cent of the demand and more than half of its natural gas requirements.

Prime Minister Narendra Modi in 2015 had set a target of reducing India's oil dependence by 10 per cent to 67 per cent (based on import dependence of 77 per cent in 2014-15) by 2022. Import dependence has only increased since then and the government is now looking for ways to raise domestic output.

"Had a telephonic conversation with United States Secretary of Energy, HE @SecretaryPerry. Thanked him for his good wishes on the resounding mandate for Hon. PM Sh. @narendramodi," Pradhan tweeted.&nbsp;

Oil Minister Dharmendra Pradhan Monday had a telephonic conversation with US Secretary of Energy Rick Perry to discuss ways to enhance energy security and impact of crude oil price volatility on consuming nations.

Oil Minister Dharmendra Pradhan Monday had a telephonic conversation with US Secretary of Energy Rick Perry to discuss ways to enhance energy security and impact of crude oil price volatility on consuming nations. "Discussed ways to work together to enhance energy security, further develop a gas-based economy in India & expand energy and innovation linkages to bolster the India-US Strategic Energy Partnership that was launched in April last year," Pradhan tweeted after the call. India has time and again warned oil producers that higher crude prices are hurting global economic growth and they should do more to bring down rates to reasonable levels. "Also discussed about crude oil price volatility and its impact on the Indian consumer. I also pointed to the important role that the US plays in bringing global price stability," Pradhan said in another tweet. Volatility in oil prices has resulted in a seesaw in retail petrol and diesel prices with rates rising on some days and falling on other. The government is looking at private investment to raise domestic oil and gas production, which has stagnated for the last few years while fuel demand has been rising by 5-6 per cent annually. India is dependent on imports to meet its 83 per cent of the demand and more than half of its natural gas requirements. Prime Minister Narendra Modi in 2015 had set a target of reducing India's oil dependence by 10 per cent to 67 per cent (based on import dependence of 77 per cent in 2014-15) by 2022. Import dependence has only increased since then and the government is now looking for ways to raise domestic output. "Had a telephonic conversation with United States Secretary of Energy, HE @SecretaryPerry. Thanked him for his good wishes on the resounding mandate for Hon. PM Sh. @narendramodi," Pradhan tweeted.

Pradhan speaks to US Energy Secretary, raises issues of volatility in oil prices

Oil futures were steady on Monday following comments from the Saudi energy minister that the market was heading towards balance, even if signs of slowing demand in Asia weighed. 
 
Brent crude futures were trading at $50.31 per barrel at 0441 GMT, almost unchanged from their last settlement. US crude oil were down 5 cents at $48.94. 
 
There will be no West Texas Intermediate crude settlement on Monday as US financial and commodity markets are closed for the US Independence Day holiday. 
 
&quot;Fundamentals offer limited scope for further price gains and we expect Brent to trade broadly sideways over the coming months,&quot; said analysts at BMI Research. 
 
The energy minister of Saudi Arabia, the world&#39;s top crude exporter, and the secretary general of producer club OPEC agreed that global oil markets were heading towards balance and that prices reflect this. 
 
Crude futures are drawing some support from concerns over output in Nigeria, where a militant group has been carrying out attacks on oil facilities over the past months. 
 
Attacks in the Niger Delta have pushed Nigerian crude production to 30-year lows, although the Nigerian National Petroleum Corporation said last week that output was rising following repairs. 
 
&quot;After another counter-seasonal summer build, gasoline cracks now trade below diesel, which should force refiners to act. The end result is likely to be run cuts, with some signs already emerging for 3Q,&quot; Morgan Stanley said on Monday. 
 
&quot;Asia refiners have already started to pull back ... and there are reports of cargoes struggling to sell,&quot; it added. 
 
Higher oil output is another factor that could cap prices. 
 
In the United States, drillers last week added oil rigs for a fourth week in five, in the best month of producers returning to the&nbsp;well pad since August 2016. 
 
Also, Russian oil output stood at 10.84 million barrels per day (bpd) in June, up from 10.83 bpd in May. 
 
In Norway, oil workers signed a deal on Saturday, avoiding a strike that would have cut output from western Europe&#39;s top oil producer by about 6 per cent. 
 
Money managers cut their net long US crude futures and options positions in the week to June 28, the US Commodity Futures Trading Commission said on Friday. 
 
(Reuters)

Fundamentals offer limited scope for further price gains and Brent is expected to trade broadly sideways over the coming months

Oil futures were steady on Monday following comments from the Saudi energy minister that the market was heading towards balance, even if signs of slowing demand in Asia weighed. Brent crude futures were trading at $50.31 per barrel at 0441 GMT, almost unchanged from their last settlement. US crude oil were down 5 cents at $48.94. There will be no West Texas Intermediate crude settlement on Monday as US financial and commodity markets are closed for the US Independence Day holiday. "Fundamentals offer limited scope for further price gains and we expect Brent to trade broadly sideways over the coming months," said analysts at BMI Research. The energy minister of Saudi Arabia, the world's top crude exporter, and the secretary general of producer club OPEC agreed that global oil markets were heading towards balance and that prices reflect this. Crude futures are drawing some support from concerns over output in Nigeria, where a militant group has been carrying out attacks on oil facilities over the past months. Attacks in the Niger Delta have pushed Nigerian crude production to 30-year lows, although the Nigerian National Petroleum Corporation said last week that output was rising following repairs. "After another counter-seasonal summer build, gasoline cracks now trade below diesel, which should force refiners to act. The end result is likely to be run cuts, with some signs already emerging for 3Q," Morgan Stanley said on Monday. "Asia refiners have already started to pull back ... and there are reports of cargoes struggling to sell," it added. Higher oil output is another factor that could cap prices. In the United States, drillers last week added oil rigs for a fourth week in five, in the best month of producers returning to the well pad since August 2016. Also, Russian oil output stood at 10.84 million barrels per day (bpd) in June, up from 10.83 bpd in May. In Norway, oil workers signed a deal on Saturday, avoiding a strike that would have cut output from western Europe's top oil producer by about 6 per cent. Money managers cut their net long US crude futures and options positions in the week to June 28, the US Commodity Futures Trading Commission said on Friday. (Reuters)

Oil steady as market moves towards balance, but slow Asian demand hurts

Oil prices rose in Asian trading on Thursday, shrugging off a smaller-than-expected decline in US stockpiles, as the market nervously awaited the result of Britain&#39;s &quot;Brexit&quot; vote. 
 
Trading has been choppy in the run-up to Thursday&#39;s vote on whether Britain leaves or stays in the European Union (EU), although markets appear to have largely priced in a &quot;Remain&quot; vote. 
&nbsp; 
Brent&#39;s August front-month contract was up 40 cents at $50.28 a barrel at 0217 GMT. It closed down 74 cents, or 1.5 per cent, at $49.88 a barrel on Wednesday. 
 
Prices for US oil were also higher, rising 43 cents to $49.56 a barrel. 
 
Once the Brexit vote is out of the way the oil market is likely to switch its focus to fundamentals, turning its attention to more potential supply disruptions that have sent prices higher this year. 
 
The worsening crisis in Venezuela, the country with the highest oil reserves, may be the next source of supply concern, said Tony Nunan, oil risk manager at Mitsubishi Corp in Tokyo. 
 
&quot;There is a cloud hanging over the market from the Brexit vote, which is keeping prices down a bit,&quot; he said. &quot;If the vote comes off, we could go up,&quot; Nunan said, referring to a vote to remain in the EU. 
 
US crude inventories fell less than expected last week, while product inventories were up slightly, the US Energy Information Administration said on Wednesday. 
 
Crude inventories dropped 917,000 barrels in the week ended June 17, compared with expectations for a decrease of 1.7 million barrels. It was the fifth consecutive week of drawdowns for crude inventories. 
 
The Pound rose to a six-month high against the Dollar early on Thursday. 
 
The Yen, often a safe-haven currency for risk-averse investors, was down about 0.25 per cent, while the Nikkei rose by slightly more than that.

The Pound rose to a six-month high against the Dollar early on Thursday

Oil prices rose in Asian trading on Thursday, shrugging off a smaller-than-expected decline in US stockpiles, as the market nervously awaited the result of Britain's "Brexit" vote. Trading has been choppy in the run-up to Thursday's vote on whether Britain leaves or stays in the European Union (EU), although markets appear to have largely priced in a "Remain" vote. Brent's August front-month contract was up 40 cents at $50.28 a barrel at 0217 GMT. It closed down 74 cents, or 1.5 per cent, at $49.88 a barrel on Wednesday. Prices for US oil were also higher, rising 43 cents to $49.56 a barrel. Once the Brexit vote is out of the way the oil market is likely to switch its focus to fundamentals, turning its attention to more potential supply disruptions that have sent prices higher this year. The worsening crisis in Venezuela, the country with the highest oil reserves, may be the next source of supply concern, said Tony Nunan, oil risk manager at Mitsubishi Corp in Tokyo. "There is a cloud hanging over the market from the Brexit vote, which is keeping prices down a bit," he said. "If the vote comes off, we could go up," Nunan said, referring to a vote to remain in the EU. US crude inventories fell less than expected last week, while product inventories were up slightly, the US Energy Information Administration said on Wednesday. Crude inventories dropped 917,000 barrels in the week ended June 17, compared with expectations for a decrease of 1.7 million barrels. It was the fifth consecutive week of drawdowns for crude inventories. The Pound rose to a six-month high against the Dollar early on Thursday. The Yen, often a safe-haven currency for risk-averse investors, was down about 0.25 per cent, while the Nikkei rose by slightly more than that.

Oil prices go up ahead of Brexit vote

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