Delaying routine oil changes thickens engine oil, creating friction that lowers fuel efficiency. Fresh oil restores mileage, preventing extra petrol costs and severe mechanical damage.

‘Oil change impact’: Can delaying your regular service lower your fuel mileage?

Aggressive driving with hard braking and fast acceleration lowers fuel economy by up to 40 per cent. Smooth driving saves petrol and reduces yearly costs without affecting your total travel time.

‘Aggressive driving’: Does hard braking and fast acceleration waste your fuel?

Airlines around the world are introducing fuel surcharges as oil prices surge amid the escalating conflict involving the United States, Israel, and Iran. The sharp rise in crude oil and aviation turbine fuel prices has forced carriers to pass on higher operating costs to passengers through additional charges on flight tickets.


US-Iran War: Jet Fuel Spike Prompts Airlines to Add Surcharges

Oil rose for a fourth day as traders assessed supply risks in West Asia. The reason: Israel is expected to make a retaliatory strike against Iran following Tehran's missile barrage earlier this week. The volume of so-called Brent call options trades hit a record high today, with the majority of those bets being placed on the price of crude hitting $100 a barrel.

Oil Rises For a Fourth Day Towards $75/Barrel

As the seismic market events of the previous several years begin to fade, the world's leading commodities analysts are facing a more challenging climate when it comes to trading oil. While industry titans are profitable, these are no longer the blockbuster figures banked since 2020. Profits at top oil companies - like Glencore and Gunvor group - are down, and even hedge fund leader Pierre Andurand is feeling the effects of the downturn.

World's top oil traders see boom years fade

Oil prices rose in early Asian trading on Monday, adding to last week's gains as rescuers searched for Iran's President Ebrahim Raisi after a helicopter crash in the oil-producing nation. Watch in for more details!

Oil prices rise amid uncertainity over Iran President Ebrahim Raisi's fate

Oil prices experienced a more than 2% decline on Thursday, triggered by the OPEC+ agreement on voluntary oil output cuts for the first quarter of next year. However, these cuts fell short of market expectations.

OPEC+ extends oil production cuts

In a series of public statements, on Sunday (April 2), Saudi Arabia and other OPEC+ members announced that they would further reduce oil production amounting to around 1.16 million barrels per day. The move, according to the countries, is aimed at market stability. The announcement comes a day before a virtual meeting of an OPEC+ ministerial panel is to convene, reported Reuter

Crude prices soar after surprise output cuts

A sharp bounce in the price of oil Tuesday provided some support to under-pressure stocks in early Asian trade, a day after global equities suffered their biggest losses in more than a decade.

Also read: <a href="https://www.wionews.com/business-economy/mukesh-ambani-becomes-poorer-by-over-rs-41-700-crores-after-sensex-crash-285284" hreflang="en">Mukesh Ambani becomes poorer by over Rs 41, 700 crores after Sensex crash</a>

World stock markets had capitulated on what has become known as "Black Monday", with the Dow Jones Index in the US losing more than 2,000 points, and the crash even triggering the emergency break in early trade amid panic selling.

Also read: <a href="https://www.wionews.com/business-economy/oil-takes-biggest-daily-dive-in-over-a-decade-as-russia-opec-split-284881" hreflang="en">Oil takes biggest daily dive in over a decade as Russia, OPEC split</a>

But there was some relief on Tuesday as oil prices jumped around six per cent after plunging by a third the previous day, in their worst session since the 1991 Gulf War.

Japan's main Nikkei index opened three per cent lower following the dizzying falls on Wall Street but later pared back losses by more than half.

An hour and a half into trade, the Nikkei stood at 19,622.05 points, a loss of 0.4 per cent compared to the previous day.

The Nikkei was helped by a sell-off in the yen, which is normally heavily bought during times of market uncertainty. A weaker yen is positive for exporters on the Japanese market and usually boosts their share prices.

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="http://13.235.153.162/videos/big-blow-to-oil-industry-due-to-covid-19-outbreak-opec-announces-massive-output-cuts-284813/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The market in Seoul was down 0.4 per cent and the ASX in Australia pared losses to around one per cent after opening lower by nearly four per cent.

In China, where authorities reported the lowest number of fresh coronavirus cases since data started being reported in late January, the benchmark Shanghai Composite Index opened 0.61 per cent higher at 2,961.38 points.

The Shenzhen Composite Index, which tracks stocks on China's second exchange, opened 0.63 per cent higher, up 11.68 points, at 1,854.34.

Market panic had been driven by uncertainty over the spreading coronavirus but also a spat between Saudi Arabia and Russia over oil production that had battered prices.

Top exporter Saudi Arabia slashed the prices it charges customers following a bust-up with Russia over crude production cuts, starting a price war that sent traders into a tailspin.

Stephen Innes, the chief market strategist at AxiCorp, described Monday's market reaction as the "sum of all fears" and warned the panic had not stopped yet amid "growing evidence that an oil shock of historic proportions is now underway."

"Severe weakness in energy markets is quickly cascading into broader declines in commodity markets, high-yield credit, and equities," he said.

The panic on Monday was felt around the world, with the Dax blue-chip index in Frankfurt seeing its sharpest single fall since 2001.

London's FTSE index closed down more than seven per cent while in Paris, the CAC-40 index lost over eight per cent, its worst daily drop since the 2008 financial crisis.

"The markets have passed from panic mode into pure hysteria," said Ayush Ansal, chief investment officer at trading firm Crimson Black Capital.

"Markets were at breaking point before Saudi Arabia's decision to launch an oil price war but this latest development has taken them beyond that."

A sharp bounce in the price of oil Tuesday provided some support to under-pressure stocks in early Asian trade, a day after global equities suffered their biggest losses in more than a decade.

A sharp bounce in the price of oil Tuesday provided some support to under-pressure stocks in early Asian trade, a day after global equities suffered their biggest losses in more than a decade. Also read: Mukesh Ambani becomes poorer by over Rs 41, 700 crores after Sensex crash World stock markets had capitulated on what has become known as "Black Monday", with the Dow Jones Index in the US losing more than 2,000 points, and the crash even triggering the emergency break in early trade amid panic selling. Also read: Oil takes biggest daily dive in over a decade as Russia, OPEC split But there was some relief on Tuesday as oil prices jumped around six per cent after plunging by a third the previous day, in their worst session since the 1991 Gulf War. Japan's main Nikkei index opened three per cent lower following the dizzying falls on Wall Street but later pared back losses by more than half. An hour and a half into trade, the Nikkei stood at 19,622.05 points, a loss of 0.4 per cent compared to the previous day. The Nikkei was helped by a sell-off in the yen, which is normally heavily bought during times of market uncertainty. A weaker yen is positive for exporters on the Japanese market and usually boosts their share prices. The market in Seoul was down 0.4 per cent and the ASX in Australia pared losses to around one per cent after opening lower by nearly four per cent. In China, where authorities reported the lowest number of fresh coronavirus cases since data started being reported in late January, the benchmark Shanghai Composite Index opened 0.61 per cent higher at 2,961.38 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, opened 0.63 per cent higher, up 11.68 points, at 1,854.34. Market panic had been driven by uncertainty over the spreading coronavirus but also a spat between Saudi Arabia and Russia over oil production that had battered prices. Top exporter Saudi Arabia slashed the prices it charges customers following a bust-up with Russia over crude production cuts, starting a price war that sent traders into a tailspin. Stephen Innes, the chief market strategist at AxiCorp, described Monday's market reaction as the "sum of all fears" and warned the panic had not stopped yet amid "growing evidence that an oil shock of historic proportions is now underway." "Severe weakness in energy markets is quickly cascading into broader declines in commodity markets, high-yield credit, and equities," he said. The panic on Monday was felt around the world, with the Dax blue-chip index in Frankfurt seeing its sharpest single fall since 2001. London's FTSE index closed down more than seven per cent while in Paris, the CAC-40 index lost over eight per cent, its worst daily drop since the 2008 financial crisis. "The markets have passed from panic mode into pure hysteria," said Ayush Ansal, chief investment officer at trading firm Crimson Black Capital. "Markets were at breaking point before Saudi Arabia's decision to launch an oil price war but this latest development has taken them beyond that."

Asian Stock Market supported after sharp bounce in Oil prices

Oil&nbsp;prices&nbsp;surged&nbsp;more&nbsp;than&nbsp;six&nbsp;per cent&nbsp;in&nbsp;Asian&nbsp;trade&nbsp;Tuesday&nbsp;following&nbsp;heavy&nbsp;losses&nbsp;a&nbsp;day&nbsp;earlier&nbsp;after&nbsp;top&nbsp;exporter&nbsp;Saudi&nbsp;Arabia&nbsp;began&nbsp;a&nbsp;price&nbsp;war&nbsp;with&nbsp;Russia.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/oil-bounce-supports-asia-stocks-after-black-monday-285351" hreflang="en">Oil bounce supports Asia stocks after 'Black Monday'</a>

West Texas Intermediate was trading up 6.1 per cent&nbsp;at&nbsp;more&nbsp;than&nbsp;$33 a barrel while Brent crude advanced 6.6 per cent&nbsp;to over $36 a barrel.&nbsp;

Prices&nbsp;had plunged by almost a third Monday, the biggest drop since the 1991 Gulf&nbsp;War&nbsp;after&nbsp;Riyadh drove through massive&nbsp;price&nbsp;cuts in a bid to win market share.

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="http://13.235.153.162/videos/wion-fineprint-saudi-arabia-plans-big-oil-output-hike-285319/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

That came&nbsp;after&nbsp;Russia&nbsp;rejected calls from&nbsp;oil-exporting group OPEC, which includes&nbsp;Saudi&nbsp;Arabia, for deeper output cuts to combat a coronavirus-fuelled slump in demand.&nbsp;

The bust-up signals the disintegration of an alliance between OPEC and&nbsp;Russia, the world's second-biggest&nbsp;oil&nbsp;producer, which sought to control supply to support&nbsp;prices.&nbsp;

"Investors are buckling in for a protracted and precarious battle of the&nbsp;oil&nbsp;mega powers for world dominance," said Stephen Innes, chief market strategist at AxiCorp.

He said it was unclear whether the&nbsp;Saudi&nbsp;move was "a short-term strategy or will be sustained for a prolonged period -- which makes the outlook for crude&nbsp;prices&nbsp;extraordinarily uncertain".

Oil prices surged more than six per cent in Asian trade Tuesday following heavy losses a day earlier after top exporter Saudi Arabia began a price war with Russia.

Oil prices surged more than six per cent in Asian trade Tuesday following heavy losses a day earlier after top exporter Saudi Arabia began a price war with Russia. Also read: Oil bounce supports Asia stocks after 'Black Monday' West Texas Intermediate was trading up 6.1 per cent at more than $33 a barrel while Brent crude advanced 6.6 per cent to over $36 a barrel. Prices had plunged by almost a third Monday, the biggest drop since the 1991 Gulf War after Riyadh drove through massive price cuts in a bid to win market share. That came after Russia rejected calls from oil-exporting group OPEC, which includes Saudi Arabia, for deeper output cuts to combat a coronavirus-fuelled slump in demand. The bust-up signals the disintegration of an alliance between OPEC and Russia, the world's second-biggest oil producer, which sought to control supply to support prices. "Investors are buckling in for a protracted and precarious battle of the oil mega powers for world dominance," said Stephen Innes, chief market strategist at AxiCorp. He said it was unclear whether the Saudi move was "a short-term strategy or will be sustained for a prolonged period -- which makes the outlook for crude prices extraordinarily uncertain".

Oil prices claw back ground post crash

Oil prices rose more than 1 per cent&nbsp;on Thursday ahead of an OPEC meeting in which Saudi Arabia is expected to push the group and its allies including Russia to agree to further output cuts to support the market.

Prices were also supported by a lower-than-expected rise in crude oil inventories in the United States, alleviating some concerns of oversupply in the world's biggest oil consumer.

Brent crude rose by 67 cents, or 1.3 per cent, to $51.80 per barrel by 0436 GMT, while the US&nbsp;West Texas Intermediate (WTI) was up by 55 cents, or 1.2 per cent, at $47.33 per barrel.

Also read: <a href="https://www.wionews.com/business-economy/opec-chops-global-oil-demand-growth-forecast-over-coronavirus-280338">OPEC chops global oil demand growth forecast over coronavirus</a>

"Crude oil prices were boosted by a broad positive sentiment overnight, and a much lower-than-expected ... crude oil inventory data," said Margaret Yang, a market analyst at CMC Markets.

"The&nbsp;market is also anticipating a decent output cut to be carried out by OPEC+, as Covid-19 has brought a significant impact on the world's energy demand. More production curb is needed to shore up crude prices."

US&nbsp;crude stocks rose modestly last week, less than what analysts had expected, while US&nbsp;oil exports surged to more than 4 million barrels per day (bpd) for the first time since December, suggesting a rise in overseas demand.

Also read: <a href="https://www.wionews.com/business-economy/world-bank-announces-up-to-12-billion-in-immediate-funds-for-coronavirus-284072">World Bank announces up to $12 billion in immediate funds for coronavirus</a>

Ministers of the Organization of the Petroleum Exporting Countries (OPEC) hold their formal meeting later on Thursday, followed by a meeting of the broader OPEC+ group including Russia on Friday.

Saudi Arabia and other OPEC members are seeking to win support from Russia to join them in additional oil output cuts to prop up prices that have tumbled by a fifth this year because of the global spread of the coronavirus outbreak.

Russia has instead proposed keeping the existing cuts by the group until the end of the second quarter, sources said.

Saudi Arabia wants extra cuts of 1 million to 1.5 million bpd for the second quarter, and to keep existing cuts of 2.1 million bpd in place until the end of 2020.

"If OPEC+ settles with something in the middle of the Russian request of no change in cuts and the 1.5 million Saudi goals, that might not be enough to keep prices supported here," said Edward Moya, senior market analyst at broker OANDA.

"OPEC+ needs to send a strong message and anything below 1 million barrels in deeper production cuts will send oil prices sharply lower."

Geopolitical tensions in the Middle East also boosted prices. The Saudi-led coalition fighting in Yemen said it had foiled an attack on an oil tanker off Yemen's coast on the Arabian Sea, the Saudi state news agency SPA reported on Wednesday.

Concerns over demand growth remained, however, with the International Monetary Fund chief saying the global spread of the virus has crushed hopes for stronger economic gains this year.

Oil prices rose more than 1 per cent on Thursday ahead of an OPEC meeting in which Saudi Arabia is expected to push the group and its allies including Russia to agree to further output cuts to support the market.

Oil prices rose more than 1 per cent on Thursday ahead of an OPEC meeting in which Saudi Arabia is expected to push the group and its allies including Russia to agree to further output cuts to support the market. Prices were also supported by a lower-than-expected rise in crude oil inventories in the United States, alleviating some concerns of oversupply in the world's biggest oil consumer. Brent crude rose by 67 cents, or 1.3 per cent, to $51.80 per barrel by 0436 GMT, while the US West Texas Intermediate (WTI) was up by 55 cents, or 1.2 per cent, at $47.33 per barrel. Also read: OPEC chops global oil demand growth forecast over coronavirus "Crude oil prices were boosted by a broad positive sentiment overnight, and a much lower-than-expected ... crude oil inventory data," said Margaret Yang, a market analyst at CMC Markets. "The market is also anticipating a decent output cut to be carried out by OPEC+, as Covid-19 has brought a significant impact on the world's energy demand. More production curb is needed to shore up crude prices." US crude stocks rose modestly last week, less than what analysts had expected, while US oil exports surged to more than 4 million barrels per day (bpd) for the first time since December, suggesting a rise in overseas demand. Also read: World Bank announces up to $12 billion in immediate funds for coronavirus Ministers of the Organization of the Petroleum Exporting Countries (OPEC) hold their formal meeting later on Thursday, followed by a meeting of the broader OPEC+ group including Russia on Friday. Saudi Arabia and other OPEC members are seeking to win support from Russia to join them in additional oil output cuts to prop up prices that have tumbled by a fifth this year because of the global spread of the coronavirus outbreak. Russia has instead proposed keeping the existing cuts by the group until the end of the second quarter, sources said. Saudi Arabia wants extra cuts of 1 million to 1.5 million bpd for the second quarter, and to keep existing cuts of 2.1 million bpd in place until the end of 2020. "If OPEC+ settles with something in the middle of the Russian request of no change in cuts and the 1.5 million Saudi goals, that might not be enough to keep prices supported here," said Edward Moya, senior market analyst at broker OANDA. "OPEC+ needs to send a strong message and anything below 1 million barrels in deeper production cuts will send oil prices sharply lower." Geopolitical tensions in the Middle East also boosted prices. The Saudi-led coalition fighting in Yemen said it had foiled an attack on an oil tanker off Yemen's coast on the Arabian Sea, the Saudi state news agency SPA reported on Wednesday. Concerns over demand growth remained, however, with the International Monetary Fund chief saying the global spread of the virus has crushed hopes for stronger economic gains this year.

Oil rises more than 1% ahead of OPEC meeting to discuss supply cuts

Oil prices jumped about 2 per cent on Wednesday on media reports that suggested scientists were developing a vaccine for the fast-spreading coronavirus, even as world health experts said treatments have not yet been found.

Oil prices jumped about 2 per cent on Wednesday on media reports that suggested scientists were developing a vaccine for the fast-spreading coronavirus, even as world health experts said treatments have not yet been found. Also supporting oil was news that the Organization of the Petroleum Exporting Countries (OPEC) and its producer allies were considering further output cuts to counter a potential squeeze on global oil demand. The outbreak has killed nearly 500 people and is weighing on global economic activity and oil demand. The World Health Organization played down the media reports, saying there was "no known effective therapeutics" against the virus. Brent crude oil futures ended the session up $1.32, or 2.5 per cent, at $56.46 a barrel while US West Texas Intermediate (WTI) crude gained $1.14, or 2.3 per cent, to settle at $50.75. Both contracts rose more than 4 per cent during the session. Prices held gains after data showed US crude inventories rose by 3.4 million barrels in the week to January 31, compared with expectations in a poll for a rise of 2.8 million barrels. "The report probably had nothing shocking enough to ruin the momentum of the big crude comeback that we are seeing today," said Phil Flynn, an analyst at Price Futures Group in Chicago. Also Read: Oil falls 1% as demand fears outweigh hopes for bigger OPEC+ cuts "The main reason oil sold off as hard as it did wasn't because of what we knew; it was what we didn't know. Now, it seems like we can quantify the demand destruction and look ahead." China's Changjiang Daily newspaper reported on Tuesday that a team of researchers led by Zhejiang University Professor Li Lanjuan had found that drugs Abidol and Darunavir can inhibit the virus in vitro cell experiments. Separately, Sky News reported that a British scientist has made a significant breakthrough in the race for a vaccine by reducing part of the normal development time from two to three years to only 14 days. [ Oil Pump (Courtesy: Reuters) ] Still, refineries including China's Sinopec, Asia's top refiner, have slashed throughput as the virus cuts demand for refined fuels. Fears of a slump in global oil demand had pushed US crude and Brent futures into contango this week - a structure in which longer-dated oil futures trade at a premium that encourages traders to keep crude in storage for more profitable resale in the future. "Based on our forecast that China's GDP growth will slow to just 3 per cent year-over-year in Q1 2020 and assuming that the virus is brought under control relatively quickly, we have tentatively pencilled in a 10 per cent drop in the country's oil consumption in Q1," Capital Economics analysts said in a note on Wednesday. Falling demand for jet fuel worldwide because of the deadly coronavirus has also hit US prices for the product, which dropped to their lowest seasonally in five years, market participants said. Companies including Royal Dutch Shell and Phillips have limited business travel to China. Demand Impacted A slowdown in the global economy resulting from the outbreak is expected to reduce 2020 worldwide oil demand growth by 300,000-500,000 barrels per day (BPD), roughly 0.5 per cent of total demand, BP's Chief Financial Officer Brian Gilvary said. "The (Chinese) economy will be weakened for some time to come as quarantines, social distancing and travel restrictions remain in place," BNP Paribas analyst Harry Tchilinguirian stated. "But as financial markets are anticipatory, one can see how favourable news with potential medical solutions, or indications that we have reached a turning point in the progress of the virus outbreak, are likely to be interpreted positively." OPEC and allies led by Russia, a group known as OPEC+, considered the impact on global oil demand and economic growth from the coronavirus at a meeting on Wednesday. According to reports, Russia was not supporting a deeper oil output cut and was suggesting an extension of the current pact.

Oil prices jump 2 per cent as virus vaccine reports spur hope

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

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

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

Oil producers meet to discuss output amid Iran tension

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