Oil prices settled lower, retreating from a session peak above $70 a barrel after attacks on oil facilities in Saudi Arabia lifted prices that high for the first time since the COVID-19 pandemic began.

World Business Watch: Oil settles lower after attacks on oil facilities in Saudi Arabia

A decision by OPEC+ to continue with an output cut would undermine consumption-led recovery and hurt consumers in oil buying nations, Indian oil minister Dharmendra Pradhan told Reuters on Friday.

India says OPEC+ decision to hit consumption-led recovery, hurt customers

A group of major oil producers has agreed to extend production cuts for another month despite a recent price surge. OPEC and its allied producers said that they would largely roll over production cuts during the month of April.

World Business Watch: Oil prices surge as OPEC and its allies extend production cuts

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.

OPEC and its allies extends output cuts into April

Global oil prices have jumped after Iran backed Houthis in Yemen attacked Saudi targets. The growing tensions could have an impact on your petrol bills. WION's Palki Sharma tells you how you could feel the pinch.

Gravitas: Tensions spike in Yemen: How you could feel the pinch

Oil prices were up two per cent (2%) on Tuesday (February 02) after major producers showed that they were reining in output roughly in line with their commitments.

World Business Watch: Oil prices hit highest in a year as producers limit supply

Asian shares and the dollar made a cautious start to the new month on Monday as U.S. lawmakers struggled to hammer out a new stimulus plan and a global surge of new coronavirus cases showed no sign of abating.

Asia stocks off to cautious start | Oil demand suffered | Tech giants show strong results

Saudi Arabia will triple its value added tax rate and suspend a cost of living allowance for state workers, it said on Monday, seeking to shield finances hit by low oil prices and a slump in demand for its lifeline export worsened by the new coronavirus.

Saudi Arabia will triple its value added tax rate and suspend a cost of living allowance for state workers, it said on Monday, seeking to shield finances hit by low oil prices and a slump in demand for its lifeline export worsened by the new coronavirus. Historic oil output cuts agreed by Riyadh and other major producers have given only limited support to prices after they sank on oversupply caused by a war for petroleum market share between the kingdom and its fellow oil titan Russia. Saudi Arabia, the world's largest oil exporter, is also being hit hard by measures to fight the new coronavirus, which are likely to curb the pace and scale of economic reforms launched by Crown Price Mohammed bin Salman. "The cost of living allowance will be suspended as of June 1, and the value added tax will be increased to 15% from 5% as of July 1," Finance Minister Mohammed al-Jadaan said in a statement reported by the state news agency. "These measures are painful but necessary to maintain financial and economic stability over the medium to long term...and to overcome the unprecedented coronavirus crisis with the least damage possible." The austerity measures come after the kingdom posted a $9 billion budget deficit in the first quarter. The minister said non-oil revenues were affected by the suspension and decline in economic activity, while spending had risen due to unplanned strains on the healthcare sector and the initiatives taken to support the economy. "All these challenges have cut state revenues, pressured public finances to a level that is hard to deal with going forward without affecting the overall economy in the medium to long term, which requires more spending cuts and measures to support non-oil revenues stability," he added. The government has cancelled and put on hold some operating and capital expenditures for some government agencies, and cut allocations for some reform initiatives and projects worth a total 100 billion riyals ($26.6 billion), the statement said. Central bank foreign reserves fell in March at their fastest rate in at least 20 years and to their lowest since 2011, while oil revenues in the first three months of the year fell 24% from a year earlier to $34 billion, pulling total revenues down 22%. "The reforms are positive from a fiscal side as greater adjustment is essential. However, the tripling of VAT is unlikely to help that much in 2020 revenue wise with the expected fall in consumption," said Monica Malik, chief economist at Abu Dhabi Commercial Bank. She said she kept unchanged her deficit forecast of 16.3% of GDP for this year, which already factors in a greater than previously announced spending cut. About 1.5 million Saudis are employed in the government sector, according to official figures released in December. In 2018, Saudi Arabia's King Salman ordered a monthly payment of 1,000 riyals ($267) to every state employee to compensate them for the rising living costs after the government hiked domestic gas prices and introduced value-added tax.

Saudi triples VAT rate in austerity drive against oil slump, virus

The historic rout in oil markets that sent US crude prices plummeting to as much as minus USD 40 a barrel is unlikely to translate into any big reduction in petrol and diesel prices in India as domestic pricing is based on different benchmark, and refineries are already filled up to brim and cannot buy US crude just yet.

With storage capacity already overflowing amid coronavirus-induced demand collapse, traders rushed to to get rid of unwanted stocks triggering the collapse of US West Texas Intermediate (WTI) crude for May delivery.

Indian Oil Corp (IOC) Chairman Sanjiv Singh said the collapse was triggered by traders unable to take deliveries of crude they had previously booked because of a demand collapse. And so they paid the seller to keep oil in their storage.

"If you look at June futures, it is trading in positive territory... Around USD 20 per barrel," he said.

Low oil prices may seem good in short-term but in the long run it will hurt the oil economy as producers will have no surplus to invest in exploration and production which will lead to a drop in production, he said.

He did not comment on retail fuel prices that have been static since March 16.

Oil companies have not changed rates despite a fall in international prices as they first adjusted them against the increase that was warranted from a Rs 3 per litre hike in excise duty and close to Re 1 per litre additional cost of switching over to cleaner BS-VI grade fuel from April 1.

Petrol in Delhi is priced at Rs 69.59 a litre and diesel comes for Rs 62.29 per litre.

"The negative price has no direct impact on India or Indian oil prices, as this has taken place due to crude oil produced and traded within the US. India's prices are driven partly by another benchmark, the Brent, which is still trading at USD 25/barrel. Therefore, the retail price of fuels in India are unlikely to fall," said Amit Bhandari, Fellow, Energy and Environment Studies, Gateway House.

Also, Indian refineries are already overflowing as fuel demand has evaporated due to the unprecedented nationwide lockdown imposed to curb spread of COVID-19. So, they can't rush to buy US crude. 
The refineries have already cut operating rate to half because the fuel they produce has not been sold yet.

India imports 4 million barrels/day (1.4 billion barrels/year) of oil. The country has been benefitting from the falling prices of oil for the last five years, when oil dropped from a peak of USD 110/barrel to USD 50-60/barrel last year, enabling India to invest in public service programmes.

"However, the additional USD 30 fall of this week is good for India - but there is also a downside. If oil prices are too low, the economies of oil-rich gulf countries will be hurt, threatening the job prospects of the 8 million Indians working in the Gulf countries. India is the largest recipient of foreign remittances due to these workers very low oil prices will hurt this cash stream," Bhandari said. 
&nbsp;

The historic rout in oil markets that sent US crude prices plummeting to as much as minus USD 40 a barrel is unlikely to translate into any big reduction in petrol and diesel prices in India as domestic pricing is based on different benchmark, and refineries are already filled up to brim and cannot buy US crude just yet.

The historic rout in oil markets that sent US crude prices plummeting to as much as minus USD 40 a barrel is unlikely to translate into any big reduction in petrol and diesel prices in India as domestic pricing is based on different benchmark, and refineries are already filled up to brim and cannot buy US crude just yet. With storage capacity already overflowing amid coronavirus-induced demand collapse, traders rushed to to get rid of unwanted stocks triggering the collapse of US West Texas Intermediate (WTI) crude for May delivery. Indian Oil Corp (IOC) Chairman Sanjiv Singh said the collapse was triggered by traders unable to take deliveries of crude they had previously booked because of a demand collapse. And so they paid the seller to keep oil in their storage. "If you look at June futures, it is trading in positive territory... Around USD 20 per barrel," he said. Low oil prices may seem good in short-term but in the long run it will hurt the oil economy as producers will have no surplus to invest in exploration and production which will lead to a drop in production, he said. He did not comment on retail fuel prices that have been static since March 16. Oil companies have not changed rates despite a fall in international prices as they first adjusted them against the increase that was warranted from a Rs 3 per litre hike in excise duty and close to Re 1 per litre additional cost of switching over to cleaner BS-VI grade fuel from April 1. Petrol in Delhi is priced at Rs 69.59 a litre and diesel comes for Rs 62.29 per litre. "The negative price has no direct impact on India or Indian oil prices, as this has taken place due to crude oil produced and traded within the US. India's prices are driven partly by another benchmark, the Brent, which is still trading at USD 25/barrel. Therefore, the retail price of fuels in India are unlikely to fall," said Amit Bhandari, Fellow, Energy and Environment Studies, Gateway House. Also, Indian refineries are already overflowing as fuel demand has evaporated due to the unprecedented nationwide lockdown imposed to curb spread of COVID-19. So, they can't rush to buy US crude. The refineries have already cut operating rate to half because the fuel they produce has not been sold yet. India imports 4 million barrels/day (1.4 billion barrels/year) of oil. The country has been benefitting from the falling prices of oil for the last five years, when oil dropped from a peak of USD 110/barrel to USD 50-60/barrel last year, enabling India to invest in public service programmes. "However, the additional USD 30 fall of this week is good for India - but there is also a downside. If oil prices are too low, the economies of oil-rich gulf countries will be hurt, threatening the job prospects of the 8 million Indians working in the Gulf countries. India is the largest recipient of foreign remittances due to these workers very low oil prices will hurt this cash stream," Bhandari said.

Oil price collapse in US not to lead to any big drop in fuel prices in India

US oil prices fell to an all-time low on Monday -- more than 300 per cent to the lowest price on record.&nbsp;

This comes in the wake of the coronavirus pandemic-induced lockdown restricting movement across the world, and causing the demand for oil dry up.

This also comes in the wake of the superpower that social media is --&nbsp;where every development of national or international importance is celebrated with a little humour.

So, memes hit a high on Twitter even as the demand for crude fell.

Hmmm! A sad reality!

<div class="ui-state-default" contenteditable="false">
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2020 in summary. <a href="https://twitter.com/hashtag/CoronaVirusSA?src=hash&amp;ref_src=twsrc%5Etfw">#CoronaVirusSA</a><a href="https://twitter.com/hashtag/OilCrash?src=hash&amp;ref_src=twsrc%5Etfw">#OilCrash</a> <a href="https://twitter.com/hashtag/OilPrices?src=hash&amp;ref_src=twsrc%5Etfw">#OilPrices</a> Sasol <a href="https://t.co/C0rhftJq6v">pic.twitter.com/C0rhftJq6v</a>
— Ackloyd (@AW_Chuma) <a href="https://twitter.com/AW_Chuma/status/1252483827605405696?ref_src=twsrc%5Etfw">April 21, 2020</a></blockquote>
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A happy reality?

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So now my bottle is more expensive than the low class crude oil of Arabs. <a href="https://twitter.com/hashtag/OilCrash?src=hash&amp;ref_src=twsrc%5Etfw">#OilCrash</a> <a href="https://twitter.com/hashtag/OilPrices?src=hash&amp;ref_src=twsrc%5Etfw">#OilPrices</a> <a href="https://t.co/kmd5Uflcpu">pic.twitter.com/kmd5Uflcpu</a>
— Rocket Scientist (@Rockumon) <a href="https://twitter.com/Rockumon/status/1252449252229304320?ref_src=twsrc%5Etfw">April 21, 2020</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
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Honey, here's the money!

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<a href="https://twitter.com/hashtag/OilPrices?src=hash&amp;ref_src=twsrc%5Etfw">#OilPrices</a> <a href="https://twitter.com/hashtag/OilCrash?src=hash&amp;ref_src=twsrc%5Etfw">#OilCrash</a> 
News: Crude Oil Prices fall below 0.. 
New prices are -37.63$.. 
 
Me to petrol pump attendant after filling my car's petrol tank... <a href="https://t.co/m5UJBhufxM">pic.twitter.com/m5UJBhufxM</a>
— Tweet_Bazz (@itweetbazz) <a href="https://twitter.com/itweetbazz/status/1252482184662802435?ref_src=twsrc%5Etfw">April 21, 2020</a></blockquote>
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Money Heist 2.0?

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*Me and my boys planning to get crude oil and make some money*<a href="https://twitter.com/hashtag/OilCrash?src=hash&amp;ref_src=twsrc%5Etfw">#OilCrash</a> <a href="https://t.co/VfEyAbwMMT">pic.twitter.com/VfEyAbwMMT</a>
— swarnim kumar (@iamswarnim) <a href="https://twitter.com/iamswarnim/status/1252482041737703424?ref_src=twsrc%5Etfw">April 21, 2020</a></blockquote>
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We. Cannot. Even.

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<a href="https://twitter.com/hashtag/OilCrash?src=hash&amp;ref_src=twsrc%5Etfw">#OilCrash</a> <a href="https://twitter.com/hashtag/OilPrices?src=hash&amp;ref_src=twsrc%5Etfw">#OilPrices</a> 
Cost of barrel and cost of crude oil <a href="https://t.co/lT1i6vspxk">pic.twitter.com/lT1i6vspxk</a>
— Himanshu Dixit (@Himansh84873490) <a href="https://twitter.com/Himansh84873490/status/1252467758509555712?ref_src=twsrc%5Etfw">April 21, 2020</a></blockquote>
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Like whaaattttt?

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The barrel is now more expensive than the oil inside. <a href="https://twitter.com/hashtag/OilCrash?src=hash&amp;ref_src=twsrc%5Etfw">#OilCrash</a> <a href="https://t.co/cg4tmCzZ8z">pic.twitter.com/cg4tmCzZ8z</a>
— Naresh (@naresh_jangid98) <a href="https://twitter.com/naresh_jangid98/status/1252455571803893760?ref_src=twsrc%5Etfw">April 21, 2020</a></blockquote>
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Wooohooo!

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I'm not surprised at all 👀😬<a href="https://twitter.com/hashtag/OilCrash?src=hash&amp;ref_src=twsrc%5Etfw">#OilCrash</a><a href="https://twitter.com/hashtag/OilPrice?src=hash&amp;ref_src=twsrc%5Etfw">#OilPrice</a><a href="https://twitter.com/hashtag/CrudeOil?src=hash&amp;ref_src=twsrc%5Etfw">#CrudeOil</a> <a href="https://t.co/NbDbIKT7kV">pic.twitter.com/NbDbIKT7kV</a>
— 𝓓𝓪𝓪𝓵𝓲𝓪 ❤️ (@DaaliaKazaan) <a href="https://twitter.com/DaaliaKazaan/status/1252447769912135680?ref_src=twsrc%5Etfw">April 21, 2020</a></blockquote>
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Whatte fun!

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Netflix subscription is more expensive than a barrel of oil<a href="https://twitter.com/hashtag/OilCrash?src=hash&amp;ref_src=twsrc%5Etfw">#OilCrash</a> <a href="https://t.co/8bE5gqxBqz">pic.twitter.com/8bE5gqxBqz</a>
— Becklish (@becklishoko) <a href="https://twitter.com/becklishoko/status/1252359378696466438?ref_src=twsrc%5Etfw">April 20, 2020</a></blockquote>
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Meanwhile, all is not fun in the world. The price of oil has now reached a point that it is increasingly becoming difficult for higher cost producers to remain in operation and rather look at declaring bankruptcy.&nbsp;

A lot of US shale producers are in deep trouble and analysts expect that low oil price for few more months will result in a spate of bankruptcies in US.

US oil prices fell to an all-time low on Monday -- more than 300 per cent to the lowest price on record. This comes in the wake of the coronavirus pandemic-induced lockdown restricting movement across the world, and causing the demand for oil dry up.

US oil prices fell to an all-time low on Monday -- more than 300 per cent to the lowest price on record. This comes in the wake of the coronavirus pandemic-induced lockdown restricting movement across the world, and causing the demand for oil dry up. This also comes in the wake of the superpower that social media is -- where every development of national or international importance is celebrated with a little humour. So, memes hit a high on Twitter even as the demand for crude fell. Hmmm! A sad reality! 2020 in summary. #CoronaVirusSA#OilCrash #OilPrices Sasol pic.twitter.com/C0rhftJq6v — Ackloyd (@AW_Chuma) April 21, 2020 × A happy reality? So now my bottle is more expensive than the low class crude oil of Arabs. #OilCrash #OilPrices pic.twitter.com/kmd5Uflcpu — Rocket Scientist (@Rockumon) April 21, 2020 × Honey, here's the money! #OilPrices #OilCrash News: Crude Oil Prices fall below 0.. New prices are -37.63$.. Me to petrol pump attendant after filling my car's petrol tank... pic.twitter.com/m5UJBhufxM — Tweet_Bazz (@itweetbazz) April 21, 2020 × Money Heist 2.0? *Me and my boys planning to get crude oil and make some money*#OilCrash pic.twitter.com/VfEyAbwMMT — swarnim kumar (@iamswarnim) April 21, 2020 × We. Cannot. Even. #OilCrash #OilPrices Cost of barrel and cost of crude oil pic.twitter.com/lT1i6vspxk — Himanshu Dixit (@Himansh84873490) April 21, 2020 × Like whaaattttt? The barrel is now more expensive than the oil inside. #OilCrash pic.twitter.com/cg4tmCzZ8z — Naresh (@naresh_jangid98) April 21, 2020 × Wooohooo! I'm not surprised at all 👀😬#OilCrash#OilPrice#CrudeOil pic.twitter.com/NbDbIKT7kV — 𝓓𝓪𝓪𝓵𝓲𝓪 ❤️ (@DaaliaKazaan) April 21, 2020 × Whatte fun! Netflix subscription is more expensive than a barrel of oil#OilCrash pic.twitter.com/8bE5gqxBqz — Becklish (@becklishoko) April 20, 2020 × Meanwhile, all is not fun in the world. The price of oil has now reached a point that it is increasingly becoming difficult for higher cost producers to remain in operation and rather look at declaring bankruptcy. A lot of US shale producers are in deep trouble and analysts expect that low oil price for few more months will result in a spate of bankruptcies in US.

Crude oil demand falls. But memes hit a high!

The oil producting countries have finally agreed upon a production cut. As per the historic deal signed today, 10 per cent of the global oil supply would be cut. After a lot of hiccups, Organization of Petroleum Exporting countries (OPEC), and its allies led by Russia reached this deal.&nbsp;

However, the deal got a tepid reaction. The two leading benchmarks of oil sellers and buyers, Brent Crude and West Texas Intermediate remained unmoved in trade today.&nbsp;

Watch |&nbsp;

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-opec-allies-ink-historic-oil-deal-292334/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

What is the historic deal?

As per the deal, the production cut of oil supply will be nine million barrels per day for May and June. The cut is four times more of what was undertaken post 2008 financial crisis.&nbsp;

However, this might not be enough as experts predict a drop in demand of over 30 million barrels a day just in the month of April.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/opinions-blogs/covid-19-a-crisis-manufactured-292248">COVID-19: A crisis manufactured?</a>

Why the demand of oil dropped?

During the beginning of 2020, oil prices were in between 65 to 70 dollars per barrel. When coronavirus hit China, the factories began to shut, which led to a slide in oil prices. China is the biggest consumer of oil in the world.&nbsp;

On March 13, the oil market began to witness its worst slide in over a decade when the&nbsp;World Health Organization (WHO) declared Europe as the new epicentre of the epidemic. Now, the oil market has collapsed with prices dropping to 25 dollars per barrel.&nbsp;

The hindrances in the deal

The deal came after a lot of tensions between Russia and Saudi Arabia. Initially, Russia's Vladimir Putin rejected the deal and started a price war with Saudi Arabia. The US intervened as America was also suffering from losses from Shale oil reserves. US President Donald Trump urged Putin and Saudi Crown Pricne Mohammed bin Salman to work together to strike a deal.&nbsp; 
&nbsp;

The oil producting countries have finally agreed upon a production cut. As per the historic deal signed today, 10 per cent of the global oil supply would be cut.

The oil producting countries have finally agreed upon a production cut. As per the historic deal signed today, 10 per cent of the global oil supply would be cut. After a lot of hiccups, Organization of Petroleum Exporting countries (OPEC), and its allies led by Russia reached this deal. However, the deal got a tepid reaction. The two leading benchmarks of oil sellers and buyers, Brent Crude and West Texas Intermediate remained unmoved in trade today. Watch | What is the historic deal? As per the deal, the production cut of oil supply will be nine million barrels per day for May and June. The cut is four times more of what was undertaken post 2008 financial crisis. However, this might not be enough as experts predict a drop in demand of over 30 million barrels a day just in the month of April. Also read | COVID-19: A crisis manufactured? Why the demand of oil dropped? During the beginning of 2020, oil prices were in between 65 to 70 dollars per barrel. When coronavirus hit China, the factories began to shut, which led to a slide in oil prices. China is the biggest consumer of oil in the world. On March 13, the oil market began to witness its worst slide in over a decade when the World Health Organization (WHO) declared Europe as the new epicentre of the epidemic. Now, the oil market has collapsed with prices dropping to 25 dollars per barrel. The hindrances in the deal The deal came after a lot of tensions between Russia and Saudi Arabia. Initially, Russia's Vladimir Putin rejected the deal and started a price war with Saudi Arabia. The US intervened as America was also suffering from losses from Shale oil reserves. US President Donald Trump urged Putin and Saudi Crown Pricne Mohammed bin Salman to work together to strike a deal.

EXPLAINED: What is the historic oil deal all about?

Oil prices jumped more than $1 a barrel on Monday, after major producers finally agreed their biggest-ever output cut, but gains were capped amid concern that it won’t be enough to head off oversupply with the coronavirus pandemic hammering demand.

Oil climbs more than $1 barrel

Saudi Arabia's state oil giant Aramco said on Sunday its 2019 profit fell almost 21% due to lower crude oil prices and a drop in production volumes, reported news agency Reuters.

Saudi Arabia's state oil giant Aramco said on Sunday its 2019 profit fell almost 21% due to lower crude oil prices and a drop in production volumes, reported news agency Reuters. Aramco posted a net profit of 330.69 billion Saudi riyal ($88.11 billion) after zakat and tax in the period ended Dec. 31, down from 416.52 billion riyals a year earlier, the report added. Analysts expected Aramco to post a net profit of 346.6 billion riyals ($92.35 billion) in 2019, according to an estimate of 15 analysts polled by Refinitiv. Aramco, the world's top oil-producing company, raised $29.4 billion in a record initial public offering in December last year. (With inputs from Reuters)

Saudi Aramco reports 21 per cent drop in 2019 profits

Tanker rates to ship oil in very large crude carriers (VLCCs) are surging as oil traders hunt for ships to store cheap oil in as they take advantage of a 25% plunge in prices on Monday amid a price war between top oil producers Saudi Arabia and Russia.

Shipping rates from the Middle East to Asia, for instance, have risen by more than 25% since last Friday, while several traders are making enquiries to lease tankers to temporarily store oil offshore, traders and shipping sources told Reuters on Tuesday.

The cost of renting a VLCC, which can carry 2 million barrels of crude and can be used for floating storage, was assessed Tuesday at around $38,700 per day, compared with around $30,700 per day on Friday and $14,800 a month ago, shipbroker sources said.

Also Read: <a href="https://www.wionews.com/business-economy/oil-prices-surge-after-us-strike-kills-iranian-general-271775">Oil prices surge after US strike kills Iranian general Soleimani</a> 
&nbsp;

"Tanker offers are quite high today," said a Singapore-based crude oil trader. "Now the contango market structure supports (oil storage), but shipowners are raising prices."

Oil tanker charter rates jump as traders hunt for ships to store cheap oil.

The rise in tanker chartering rates is a boon for shipowners who have seen demand walloped recently by the fast-spreading coronavirus outbreak which choked commodity and semi-finished goods imports into top consumer China.

Also Read: <a href="https://www.wionews.com/world/oil-prices-surge-after-trump-tears-up-iran-deal-135734">Oil prices surge after Trump tears up Iran deal</a>

We are seeing several deals being negotiated for short-term (6-12 months) charters, with one already concluded. The fall in oil prices has made floating storage more attractive, although the margins are still relatively thin," energy shipbroker and consultancy Poten &amp; Partners said in a research note.

A Pareto Securities shipping note to clients said: "while actual fixing activity was rather limited yesterday, the 'floating storage' interest has boosted shipowners' sentiment and rate ideas have thus been increased substantially."

Another shipbroker in Singapore said his firm had not secured any fixtures yet "but there a is huge expectation of firming of the spot market. It's the older tonnage that will be more likely to be engaged for floating storage."

Crude oil's forward curve change from backwardation to contango.

Crude oil prices suffered their biggest daily rout since the 1991 Gulf War on Monday as top producers Saudi Arabia and Russia began a price war that threatens to overwhelm global oil markets with supply.

Major milestones for big moves in light crude oil prices.

Also Read: <a href="https://www.wionews.com/videos/venezulea-crisis-crude-oil-prices-surge-195411">Venezulea Crisis: Crude oil prices surge</a>

Several refiners are already looking to maximise imports of Middle Eastern purchase to take advantage of cheap crude after the Saudis slashed their official selling prices (OSPs) for April in an attempt to lure buyers.

"The VLCC rates are climbing up but it's mainly sentiment-driven right now, it's main traders who are enquiring for storage," a Singapore-based ship broker told Reuters.

The Worldscale index rate for shipping crude on a VLCC from the Middle East to North Asia rose to 54 points on Tuesday, from 49 points on Monday, according to trade and shipping sources.

Time charter equivalent rates for a 2,70,000 deadweight tonnes tanker on the Middle East to China route increased by 27 per cent in one day on Monday, said Ralph Leszczynski, head of research at shipbroker Banchero Costa in Singapore.

The flip in the crude oil market's forward curve to a contango where deferred prices are above spot prices has been a key factor spurring demand for storage.

Also Read: <a href="https://www.wionews.com/business-%26-economy/oil-prices-fall-on-dip-in-china-demand-surging-us-output-143077">Oil prices fall on dip in China demand, surging US output</a>

The recent steep fall in spot Brent oil prices has made storing oil for later sale economical.

In the Middle East benchmark Dubai crude oil market, the April, May Dubai inter-month spread widened to 77 cents a barrel as of noon on Tuesday, making oil storage profitable. Brent crude prices are in a similar structure.

In addition to floating storage, countries like China and India could move to exploit the weak prices and increase imports for strategic reserves, boosting tanker demand, said Ralph Leszczynski, head of research at shipbroker Banchero Costa in Singapore.

"China, in particular, was the first to suffer from the coronavirus outbreak, but now also seems to be the first to put it behind them. The situation seems increasingly under control," he said.

&nbsp;

Tanker rates to ship oil in very large crude carriers (VLCCs) are surging as oil traders hunt for ships to store cheap oil in as they take advantage of a 25% plunge in prices on Monday amid a price war between top oil producers Saudi Arabia and Russia.

Tanker rates to ship oil in very large crude carriers (VLCCs) are surging as oil traders hunt for ships to store cheap oil in as they take advantage of a 25% plunge in prices on Monday amid a price war between top oil producers Saudi Arabia and Russia. Shipping rates from the Middle East to Asia, for instance, have risen by more than 25% since last Friday, while several traders are making enquiries to lease tankers to temporarily store oil offshore, traders and shipping sources told Reuters on Tuesday. The cost of renting a VLCC, which can carry 2 million barrels of crude and can be used for floating storage, was assessed Tuesday at around $38,700 per day, compared with around $30,700 per day on Friday and $14,800 a month ago, shipbroker sources said. Also Read: Oil prices surge after US strike kills Iranian general Soleimani "Tanker offers are quite high today," said a Singapore-based crude oil trader. "Now the contango market structure supports (oil storage), but shipowners are raising prices." Oil tanker charter rates jump as traders hunt for ships to store cheap oil. The rise in tanker chartering rates is a boon for shipowners who have seen demand walloped recently by the fast-spreading coronavirus outbreak which choked commodity and semi-finished goods imports into top consumer China. Also Read: Oil prices surge after Trump tears up Iran deal We are seeing several deals being negotiated for short-term (6-12 months) charters, with one already concluded. The fall in oil prices has made floating storage more attractive, although the margins are still relatively thin," energy shipbroker and consultancy Poten & Partners said in a research note. A Pareto Securities shipping note to clients said: "while actual fixing activity was rather limited yesterday, the 'floating storage' interest has boosted shipowners' sentiment and rate ideas have thus been increased substantially." Another shipbroker in Singapore said his firm had not secured any fixtures yet "but there a is huge expectation of firming of the spot market. It's the older tonnage that will be more likely to be engaged for floating storage." Crude oil's forward curve change from backwardation to contango. Crude oil prices suffered their biggest daily rout since the 1991 Gulf War on Monday as top producers Saudi Arabia and Russia began a price war that threatens to overwhelm global oil markets with supply. Major milestones for big moves in light crude oil prices. Also Read: Venezulea Crisis: Crude oil prices surge Several refiners are already looking to maximise imports of Middle Eastern purchase to take advantage of cheap crude after the Saudis slashed their official selling prices (OSPs) for April in an attempt to lure buyers. "The VLCC rates are climbing up but it's mainly sentiment-driven right now, it's main traders who are enquiring for storage," a Singapore-based ship broker told Reuters. The Worldscale index rate for shipping crude on a VLCC from the Middle East to North Asia rose to 54 points on Tuesday, from 49 points on Monday, according to trade and shipping sources. Time charter equivalent rates for a 2,70,000 deadweight tonnes tanker on the Middle East to China route increased by 27 per cent in one day on Monday, said Ralph Leszczynski, head of research at shipbroker Banchero Costa in Singapore. The flip in the crude oil market's forward curve to a contango where deferred prices are above spot prices has been a key factor spurring demand for storage. Also Read: Oil prices fall on dip in China demand, surging US output The recent steep fall in spot Brent oil prices has made storing oil for later sale economical. In the Middle East benchmark Dubai crude oil market, the April, May Dubai inter-month spread widened to 77 cents a barrel as of noon on Tuesday, making oil storage profitable. Brent crude prices are in a similar structure. In addition to floating storage, countries like China and India could move to exploit the weak prices and increase imports for strategic reserves, boosting tanker demand, said Ralph Leszczynski, head of research at shipbroker Banchero Costa in Singapore. "China, in particular, was the first to suffer from the coronavirus outbreak, but now also seems to be the first to put it behind them. The situation seems increasingly under control," he said.

Tanker rates surge as traders hunt for ships to store cheap oil

Saudi Arabia, the world's top oil exporter, plans to raise its crude oil production significantly above 10 million barrels per day in April. After Russia walks out from OPEC deal.

WION Fineprint: Saudi Arabia plans big oil output hike

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

Stock markets in the oil-rich Gulf states plunged Sunday over fears about the impact of the coronavirus which also battered global bourses last week.

The crisis threatens to undercut Gulf economies, which are already battling a downturn and struggling to wean themselves from their decades-old addiction to energy revenues.

The Saudi bourse, the region's largest and one of the world's top 10 equity markets, closed down 3.7 per cent to its lowest level in 18 months.

Energy giant Saudi Aramco, the world's biggest listed firm, dropped 2.1 per cent to 32.65 riyals ($8.70), its worst performance since listing to much fanfare on December 11 in a record-breaking IPO.

The other five markets operating Sunday in the region, which were closed the previous two days for the Muslim weekend, were also hit badly as oil prices sagged below $50 a barrel.

The region's slide was led by the Kuwait Bourse, where the All-Share Index fell 10 per cent, triggering its automatic closure. Kuwait's bourse was closed for most of last week for national holidays.

The Dubai Financial Market dipped 4.5 per cent, while its sister market in Abu Dhabi was down 3.6 per cent at the close of trading, both one-year lows.

Bahrain's bourse ended 3.4 per cent down and the Muscat Securities Market in Oman finished down 1.2 per cent, in a dismal day for the Gulf Cooperation Council bloc.

"GCC equities witnessed a downfall as panic over coronavirus spread across the region," M.R. Raghu, head of research at Kuwait Financial Centre (Markaz), told AFP.

"Initial expectations that the outbreak would be contained within China have proved elusive," he said.

At least 115 cases of the coronavirus have been reported by the Gulf states to date, with the majority of infections among people returning from pilgrimages to Iran.

Global contagion

Global stocks slumped on Friday, marking the largest weekly drop since the 2008 global financial crisis, as concerns grew that the spread of the virus could wreak havoc on the world economy.

Crude oil prices tumbled as well and analysts said central banks, led by the US Federal Reserve, might have to shift into crisis-resolution mode with urgent interest rate cuts.

The Gulf states count China as their main trading partner and crude buyer, soaking up about a fifth of their oil, but China's energy demand has sagged as authorities lock down millions of people to prevent the spread of the virus.

All six GCC states -- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates -- have taken measures to curb the spread of the &nbsp;virus, including cutting off transport links with Iran, where some 54 people are confirmed to have died.

Saudi Arabia also banned Muslim pilgrims from travelling to perform the "umrah" to Islam's holiest sites in Mecca in the west of the kingdom.

The move is likely to deprive the kingdom of billions of dollars in spending by millions of pilgrims and also creates uncertainty over the annual hajj pilgrimage scheduled for July.

Dubai, which boasts the region's most diversified economy, is hosting the Expo 2020 global trade fair from October, with the hope of attracting around 25 million visitors.

Asked Sunday whether the Expo launch may have to be reviewed, the organisers said they were working closely with health authorities.

"Expo does not open until October this year, and we will continue to follow the situation closely. We are hopeful that global efforts will succeed in managing the virus," one official told AFP.

The Gulf equities sell-off came as China reported a fresh spike in infections and after the US reported its first death from the virus.

"The news flow today is quite negative and it will make the narrative between now and Monday morning even more important than it was on Friday," Matt Maley, an equity strategist at Miller Tabak &amp; Co, told Bloomberg News.

Stock markets in the oil-rich Gulf states plunged Sunday over fears about the impact of the coronavirus which also battered global bourses last week. The crisis threatens to undercut Gulf economies, which are already battling a downturn and struggling to wean themselves from their decades-old addiction to energy revenues.

Stock markets in the oil-rich Gulf states plunged Sunday over fears about the impact of the coronavirus which also battered global bourses last week. The crisis threatens to undercut Gulf economies, which are already battling a downturn and struggling to wean themselves from their decades-old addiction to energy revenues. The Saudi bourse, the region's largest and one of the world's top 10 equity markets, closed down 3.7 per cent to its lowest level in 18 months. Energy giant Saudi Aramco, the world's biggest listed firm, dropped 2.1 per cent to 32.65 riyals ($8.70), its worst performance since listing to much fanfare on December 11 in a record-breaking IPO. The other five markets operating Sunday in the region, which were closed the previous two days for the Muslim weekend, were also hit badly as oil prices sagged below $50 a barrel. The region's slide was led by the Kuwait Bourse, where the All-Share Index fell 10 per cent, triggering its automatic closure. Kuwait's bourse was closed for most of last week for national holidays. The Dubai Financial Market dipped 4.5 per cent, while its sister market in Abu Dhabi was down 3.6 per cent at the close of trading, both one-year lows. Bahrain's bourse ended 3.4 per cent down and the Muscat Securities Market in Oman finished down 1.2 per cent, in a dismal day for the Gulf Cooperation Council bloc. "GCC equities witnessed a downfall as panic over coronavirus spread across the region," M.R. Raghu, head of research at Kuwait Financial Centre (Markaz), told AFP. "Initial expectations that the outbreak would be contained within China have proved elusive," he said. At least 115 cases of the coronavirus have been reported by the Gulf states to date, with the majority of infections among people returning from pilgrimages to Iran. Global contagion Global stocks slumped on Friday, marking the largest weekly drop since the 2008 global financial crisis, as concerns grew that the spread of the virus could wreak havoc on the world economy. Crude oil prices tumbled as well and analysts said central banks, led by the US Federal Reserve, might have to shift into crisis-resolution mode with urgent interest rate cuts. The Gulf states count China as their main trading partner and crude buyer, soaking up about a fifth of their oil, but China's energy demand has sagged as authorities lock down millions of people to prevent the spread of the virus. All six GCC states -- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates -- have taken measures to curb the spread of the virus, including cutting off transport links with Iran, where some 54 people are confirmed to have died. Saudi Arabia also banned Muslim pilgrims from travelling to perform the "umrah" to Islam's holiest sites in Mecca in the west of the kingdom. The move is likely to deprive the kingdom of billions of dollars in spending by millions of pilgrims and also creates uncertainty over the annual hajj pilgrimage scheduled for July. Dubai, which boasts the region's most diversified economy, is hosting the Expo 2020 global trade fair from October, with the hope of attracting around 25 million visitors. Asked Sunday whether the Expo launch may have to be reviewed, the organisers said they were working closely with health authorities. "Expo does not open until October this year, and we will continue to follow the situation closely. We are hopeful that global efforts will succeed in managing the virus," one official told AFP. The Gulf equities sell-off came as China reported a fresh spike in infections and after the US reported its first death from the virus. "The news flow today is quite negative and it will make the narrative between now and Monday morning even more important than it was on Friday," Matt Maley, an equity strategist at Miller Tabak & Co, told Bloomberg News.

Gulf bourses dive as coronavirus hits oil price

Russian President Vladimir Putin said on Sunday that current oil prices were acceptable and that Russia had the tools to react to any negative effects of the spread of the coronavirus on the global economy, Russian news agencies reported.

Also Read:-<a href="https://www.wionews.com/opinions/russia-joins-gulf-states-in-coaching-sudans-military-227032">Russia joins Gulf states in coaching Sudan military</a>

Putin added that he sees the OPEC+ group as an effective mechanism to preserve long-term stability, adding that Russia had to be prepared for different scenarios on oil markets following a global fall in oil prices on coronavirus concerns.

 
&nbsp;

Russian President Vladimir Putin said on Sunday that current oil prices were acceptable and that Russia had the tools to react to any negative effects of the spread of the coronavirus on the global economy, Russian news agencies reported.

Russian President Vladimir Putin said on Sunday that current oil prices were acceptable and that Russia had the tools to react to any negative effects of the spread of the coronavirus on the global economy, Russian news agencies reported. Also Read:-Russia joins Gulf states in coaching Sudan military Putin added that he sees the OPEC+ group as an effective mechanism to preserve long-term stability, adding that Russia had to be prepared for different scenarios on oil markets following a global fall in oil prices on coronavirus concerns.

Russia's Putin says current oil prices acceptable

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

Oil prices sank about 1 per cent on Tuesday as fears that energy demand would take a long-term hit from the growing coronavirus outbreak outweighed hopes for more production cuts from OPEC and its allies.

Oil prices sank about 1 per cent on Tuesday as fears that energy demand would take a long-term hit from the growing coronavirus outbreak outweighed hopes for more production cuts from OPEC and its allies. Brent crude settled at $53.96 a barrel, sliding 49 cents, or 0.9 per cent, while US West Texas Intermediate (WTI) crude settled at $49.61 a barrel, losing 50 cents, or 1 per cent. Both benchmarks were at their lowest since January 2019. "I think the fear of demand destruction continues to have the market by its throat," said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut. Oil slid sharply over the past two weeks on concerns over the global economic impact of China's coronavirus, which by Tuesday had claimed 427 lives, infected 20,438 in mainland China and had been detected in roughly two dozen countries. Also Read: Oil prices slip over China virus fears In early trading, it bounced higher on hopes of further output cuts from OPEC+, comprising the Organization of the Petroleum Exporting Countries and allies including Russia. An OPEC+ committee weighed the impact on global oil demand and economic growth of the outbreak of the coronavirus at a meeting, hearing from China's envoy to the United Nations in Vienna and discussing how to respond. Sources close to the matter told Reuters that OPEC+ was considering cutting crude output by a further 500,000 barrels per day (BPD). However, the producer group could face an uphill battle to put more cuts in place so soon after the existing pact was agreed to and because of uncertainty over how long the virus crisis will last. Also read: Virus outbreak delays India's cotton exports to China "If the producer group believes the outbreak to be contained, with effects tapering out after a short period, like SARS, they have the option to stand pat and weather the lower price environment until demand returns," the global head of commodity strategy at BNP Paribas, Harry Tchilinguirian, told the Reuters Global Oil Forum. Price gains were also limited by Russian Energy Minister Alexander Novak's comments that he was uncertain it was time to tighten oil output curbs. BP finance chief Brian Gilvary told Reuters the economic impact of the coronavirus will reduce oil consumption for the whole year by 300,000 to 500,000 BPD, roughly 0.5 per cent of global demand. Goldman Sachs warned that the outbreak's impact on demand is likely to keep spot-price volatility elevated. "Oil prices are now at levels where we would expect a supply response from both OPEC and shale producers, and where China would likely seek to build crude inventories," Goldman said in a note.

Oil falls 1% as demand fears outweigh hopes for bigger OPEC+ cuts

Oil futures were set for a sixth day of losses as the death toll from a virus in China rose, but the heavy sell-off of recent sessions was curbed by output outages in Libya and OPEC comments designed to calm demand fears.

Oil futures were set for a sixth day of losses as the death toll from a virus in China rose, but the heavy sell-off of recent sessions was curbed by output outages in Libya and OPEC comments designed to calm demand fears. Brent crude was down 51 cents at $58.81 a barrel at 0925 GMT, having hit a three-month low of $58.50 on Monday as the virus outbreak triggered a global sell-off of riskier assets. US West Texas Intermediate was down 32 cents at $52.82 a barrel, after slipping to its lowest since early October in the previous session at $52.13. Both contracts are on track for their worst monthly falls since May. The United States and other countries warned against travel to China as the coronavirus death toll rose to more than 100 and after the virus was detected in more than a dozen countries outside China. Oil investors are concerned that travel advisories, other restrictions and any sizable impact on growth in China and elsewhere will dampen demand for crude and related products against a backdrop of plentiful supply. Also Read: Oil prices slip over China virus fears Japan, one of the world's top oil buyers, warned about the risks to its economy from the virus, and Asian stock markets continued to suffer. As the oil price fell below that seen during a December meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia, Saudi Arabia said on Monday the group could respond to any changes in demand. Saudi and other OPEC producers, however, sought to downplay demand concerns resulting from the virus outbreak. The group known as OPEC+ agreed in December to widen their supply cuts by 500,000 barrels per day (BPD) to 1.7 million BPD until the end of March. While markets wait for an update on China's oil demand, one eye is on Libya where output is down by nearly 75 per cent to just below 300,000 BPD amid the most extensive oil blockade for years. "Markets need to get a proper assessment of oil demand in China," said Olivier Jakob of consultancy Petromatrix. "And as long as Libya continues to be shut, OPEC probably does not need to do anything."

Oil rout extends to sixth day as China virus death toll rises

Barclays said on Tuesday oil prices will be impacted by $2 per barrel on the potential economic fallout from the coronavirus outbreak in China. More than 100 people have died and over 4,000 cases of the new virus have been confirmed in China, leading authorities to increase preventive measures, impose travel restrictions and also extend the Lunar New Year holidays to limit the spread of the virus.

Barclays said on Tuesday oil prices will be impacted by $2 per barrel on the potential economic fallout from the coronavirus outbreak in China. More than 100 people have died and over 4,000 cases of the new virus have been confirmed in China, leading authorities to increase preventive measures, impose travel restrictions and also extend the Lunar New Year holidays to limit the spread of the virus. The bank sees a $2 per barrel downside to their full-year Brent and WTI forecasts of $62 per barrel and $57 per barrel, respectively. Compounding the effects of the spillover to economic growth from China and the region, Barclays expects transitory oil demand erosion of about 0.6-0.8 million barrels per day (mb/d) in the first quarter of this year or 0.2 mb/d for the full year. "If air passenger traffic in China declined by half in the first quarter of 2020, it would likely lead to a 300,000 barrels per day year on year decline in jet-kerosene demand from China," the bank said adding the fall in road transport would likely be less severe than in the past given reduced reliance on buses. Also Read: Oil prices slide 2% over glut forecast, China virus worries Barclays expects the Organisation of the Petroleum Exporting Countries (OPEC) and other allies to step in and take further measures to keep the markets tight, in case the fall in demand is more acute. Oil prices have been down for the last six sessions, but the bank said that the market reaction was likely overdone. Barclays said the actual economic fallout from the coronavirus could be less severe than the 2003 SARS outbreak, given that the new virus seems less lethal than SARS so far and the measures taken by Chinese authorities. The bank said the geopolitical risks to global supplies remain high as US-Iran tensions could continue to gradually escalate and oil production in Libya could fall further if the blockade of key infrastructure facilities continues. Brent crude prices are currently trading around $59 per barrel and US WTI at around at $53 per barrel.

Barclays sees $2 per barrel impact to oil prices as virus fears threaten demand

Oil slipped below $62 a barrel on Friday and was heading for a weekly decline as concern that a <a href="https://www.wionews.com/business-economy/oil-slips-to-62-heads-for-weekly-loss-on-china-virus-concerns-276358">virus in China may spread</a>, curbing travel and oil demand, overshadowed supply cuts.

The virus has prompted the suspension of public transport in 10 Chinese cities. Health authorities fear the infection rate could accelerate over the Lunar New Year holiday this weekend when millions of Chinese travel.

Global benchmark Brent was down 28 cents to $61.76 at 1115 GMT. The contract is down almost 5 per cent this week, its <a href="https://www.wionews.com/business-economy/global-stocks-edge-up-oil-drops-as-china-virus-worries-abate-276176">third consecutive weekly drop</a>. US crude slipped 25 cents to $55.34 and was also on course for a weekly decline.

"One should be prepared for negative surprises when it comes to Chinese demand," said Eugen Weinberg, an analyst at Commerzbank. "The impact of this is all the greater because the restrictions are being imposed during the busiest travel season for the Chinese." China is the world's second-largest oil consumer so any slowdown in travel would show up on demand forecasts.

Also Read:&nbsp;<a href="https://www.wionews.com/business-economy/china-virus-could-hit-oil-prices-by-3-per-barrel-goldman-275924">China virus could hit oil prices by $3 per barrel: Goldman</a>

<img alt="Oil pumps - Representative Image" data-entity-type="file" data-entity-uuid="d2fd800a-37ba-4d4c-9158-7b2e721406fa" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20-%202020-01-24T181018.874.jpg" /> 
[ Pump jacks operate at sunset (Courtesy: Reuters) ]

Offering some support for prices was the US Energy Information Administration's latest weekly supply report, which on Thursday showed that <a href="https://www.wionews.com/business-economy/oil-slides-2-as-glut-forecast-china-virus-overshadow-libya-disruption-276174">crude inventories fell</a> 405,000 barrels in the week to Jan. 17.

Nonetheless, the upside for prices was limited. Oil inventories in the wider industrialised world are above the five-year average according to OPEC figures, which analysts say is limiting the impact on prices of supply losses.

"Such is the bearish pressure that a raft of ongoing crude supply outages is not gaining much traction," said analysts at JBC Energy in a report. Such outages include the shutdown this week of the bulk of oil supply in OPEC producer Libya.

The prospect of further steps by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, could still offer support. OPEC+ has been mostly limiting supply since 2017 and on Jan. 1 deepened a cut in output.

Saudi Arabia's energy minister said all options are open at the next OPEC+ meeting, which is scheduled for March, including further cuts, Al Arabiya television reported.

The current OPEC+ deal expires at the end of March. Russia's No. 2 oil producer Lukoil expects it to be extended, Interfax news agency cited its chief executive as saying on Thursday.

Oil slipped below $62 a barrel on Friday and was heading for a weekly decline as concern that a virus in China may spread, curbing travel and oil demand, overshadowed supply cuts.

Oil slipped below $62 a barrel on Friday and was heading for a weekly decline as concern that a virus in China may spread, curbing travel and oil demand, overshadowed supply cuts. The virus has prompted the suspension of public transport in 10 Chinese cities. Health authorities fear the infection rate could accelerate over the Lunar New Year holiday this weekend when millions of Chinese travel. Global benchmark Brent was down 28 cents to $61.76 at 1115 GMT. The contract is down almost 5 per cent this week, its third consecutive weekly drop. US crude slipped 25 cents to $55.34 and was also on course for a weekly decline. "One should be prepared for negative surprises when it comes to Chinese demand," said Eugen Weinberg, an analyst at Commerzbank. "The impact of this is all the greater because the restrictions are being imposed during the busiest travel season for the Chinese." China is the world's second-largest oil consumer so any slowdown in travel would show up on demand forecasts. Also Read: China virus could hit oil prices by $3 per barrel: Goldman [ Pump jacks operate at sunset (Courtesy: Reuters) ] Offering some support for prices was the US Energy Information Administration's latest weekly supply report, which on Thursday showed that crude inventories fell 405,000 barrels in the week to Jan. 17. Nonetheless, the upside for prices was limited. Oil inventories in the wider industrialised world are above the five-year average according to OPEC figures, which analysts say is limiting the impact on prices of supply losses. "Such is the bearish pressure that a raft of ongoing crude supply outages is not gaining much traction," said analysts at JBC Energy in a report. Such outages include the shutdown this week of the bulk of oil supply in OPEC producer Libya. The prospect of further steps by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, could still offer support. OPEC+ has been mostly limiting supply since 2017 and on Jan. 1 deepened a cut in output. Saudi Arabia's energy minister said all options are open at the next OPEC+ meeting, which is scheduled for March, including further cuts, Al Arabiya television reported. The current OPEC+ deal expires at the end of March. Russia's No. 2 oil producer Lukoil expects it to be extended, Interfax news agency cited its chief executive as saying on Thursday.

Oil falls below $62, weekly loss on China virus concerns imminent

<a href="https://www.wionews.com/business-economy/oil-gains-on-us-crude-stocks-fall-opec-comments-on-slower-us-shale-growth-262061">Oil</a> slipped towards $62 a barrel on Friday and was heading for a weekly decline as concern that a virus in China may spread, curbing travel and oil demand, overshadowed supply cuts.

The <a href="https://www.wionews.com/world/china-virus-us-confirms-first-case-of-coronavirus-death-toll-reaches-nine-275853">virus</a> has prompted the suspension of public transport in 10 Chinese cities. Health authorities fear the infection rate could accelerate over the Lunar New Year holiday this weekend when millions of Chinese travel to their homes and abroad.

Global benchmark Brent fell 2 cents to $62.02 by 0951 GMT. Brent was down about 4 per cent&nbsp;this week, its third consecutive weekly drop. US&nbsp;crude rose 6 cents to $55.65 but was also on course for a weekly decline.

"One should be prepared for negative surprises when it comes to Chinese demand," said Eugen Weinberg, analyst at Commerzbank.

"The impact of this is all the greater because the restrictions are being imposed during the busiest travel season for the Chinese."

China is the world's second-largest oil consumer so any slowdown in travel would show up on demand forecasts.

Offering some support for prices was the <a href="https://www.wionews.com/business-economy/oil-prices-fall-on-weak-demand-growth-rise-in-us-crude-stocks-226381">US&nbsp;Energy Information Administration</a>'s latest weekly supply report, which on Thursday showed that crude inventories fell 405,000 barrels in the week to January&nbsp;&nbsp;17.

Nonetheless, the upside for prices was limited. Oil inventories in the wider industrialised world are above the five-year average according to OPEC figures, which analysts say is limiting the impact on prices of supply losses.

"Such is the bearish pressure that a raft of ongoing crude supply outages are not gaining much traction," said analysts at JBC Energy in a report.

Such outages include the shutdown this week of the bulk of oil supply in <a href="https://www.wionews.com/business-economy/opecs-share-of-indian-oil-imports-fell-down-43-lowest-since-2011-263065">OPEC</a> producer Libya.

The prospect of further steps by the Organization of the Petroleum Exporting Countries and its allies, known as <a href="https://www.wionews.com/business-economy/oil-slips-as-opec-gears-up-to-confirm-supply-cut-266600">OPEC+</a>, could still offer support. OPEC+ has been mostly limiting supply since 2017 and on January&nbsp;&nbsp;1 deepened a cut in output.

Saudi Arabia's energy minister said all options are open at the next OPEC+ meeting, which is scheduled for March, including further cuts, Al Arabiya television reported.

The current OPEC+ deal expires at the end of March. Russia's No. 2 oil producer Lukoil expects it to be extended, Interfax news agency cited its chief executive as saying on Thursday.

Oil slipped towards $62 a barrel on Friday and was heading for a weekly decline as concern that a virus in China may spread, curbing travel and oil demand, overshadowed supply cuts.

Oil slipped towards $62 a barrel on Friday and was heading for a weekly decline as concern that a virus in China may spread, curbing travel and oil demand, overshadowed supply cuts. The virus has prompted the suspension of public transport in 10 Chinese cities. Health authorities fear the infection rate could accelerate over the Lunar New Year holiday this weekend when millions of Chinese travel to their homes and abroad. Global benchmark Brent fell 2 cents to $62.02 by 0951 GMT. Brent was down about 4 per cent this week, its third consecutive weekly drop. US crude rose 6 cents to $55.65 but was also on course for a weekly decline. "One should be prepared for negative surprises when it comes to Chinese demand," said Eugen Weinberg, analyst at Commerzbank. "The impact of this is all the greater because the restrictions are being imposed during the busiest travel season for the Chinese." China is the world's second-largest oil consumer so any slowdown in travel would show up on demand forecasts. Offering some support for prices was the US Energy Information Administration's latest weekly supply report, which on Thursday showed that crude inventories fell 405,000 barrels in the week to January 17. Nonetheless, the upside for prices was limited. Oil inventories in the wider industrialised world are above the five-year average according to OPEC figures, which analysts say is limiting the impact on prices of supply losses. "Such is the bearish pressure that a raft of ongoing crude supply outages are not gaining much traction," said analysts at JBC Energy in a report. Such outages include the shutdown this week of the bulk of oil supply in OPEC producer Libya. The prospect of further steps by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, could still offer support. OPEC+ has been mostly limiting supply since 2017 and on January 1 deepened a cut in output. Saudi Arabia's energy minister said all options are open at the next OPEC+ meeting, which is scheduled for March, including further cuts, Al Arabiya television reported. The current OPEC+ deal expires at the end of March. Russia's No. 2 oil producer Lukoil expects it to be extended, Interfax news agency cited its chief executive as saying on Thursday.

Oil prices slip over China virus fears

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