Equity indices were on a weak note during early hours on Monday as global oil prices surged to a four-month high after a strike on the world`s biggest oil facility in Saudi Arabia removed about 5 per cent of global supplies.

At 10:15 am, the BSE S&amp;P Sensex was down by 175 points at 37,210 while the Nifty 50 edged lower by 51 points to 11,025.

At the National Stock Exchange, sectoral indices were mixed with Nifty auto, financial service, media, metal, bank and realty in the negative zone. Nifty FMCG, IT and pharma showed marginal gains.&nbsp;

Among stocks, oil processing and marketing firms suffered the most as the United States blamed Iran for the weekend attack on Saudi Arabia`s crude oil facilities.

Bharat Petroleum Corporation dropped by 6.1 per cent to trade at Rs 383.50 per share while IndiaOil Corporation was down by 3.3 per cent to Rs 125.80 apiece.

Index heavyweight Reliance Industries slipped by 2.2 per cent.

The other prominent losers were Tata Motors, Mahindra &amp; Mahindra, Yes Bank, State Bank of India, Bharti Infratel and Asian Paints.

However, those which traded in the green were Indiabulls Housing Finance, ONGC, GAIL, Sun Pharma and Dr Reddy.

Meanwhile, moves in Asian share markets were small with Japan shut for a public holiday.&nbsp;

MSCI`s broadest index of Asia Pacific shares outside Japan was a notch lower at 515.4 while South Korea`s KOSPI was a tad higher by 0.4 per cent. Hong Kong`s Hang Seng was down by 1 per cent.&nbsp;

Equity indices were on a weak note during early hours on Monday as global oil prices surged to a four-month high after a strike on the world`s biggest oil facility in Saudi Arabia removed about 5 per cent of global supplies.

Equity indices were on a weak note during early hours on Monday as global oil prices surged to a four-month high after a strike on the world`s biggest oil facility in Saudi Arabia removed about 5 per cent of global supplies. At 10:15 am, the BSE S&P Sensex was down by 175 points at 37,210 while the Nifty 50 edged lower by 51 points to 11,025. At the National Stock Exchange, sectoral indices were mixed with Nifty auto, financial service, media, metal, bank and realty in the negative zone. Nifty FMCG, IT and pharma showed marginal gains. Among stocks, oil processing and marketing firms suffered the most as the United States blamed Iran for the weekend attack on Saudi Arabia`s crude oil facilities. Bharat Petroleum Corporation dropped by 6.1 per cent to trade at Rs 383.50 per share while IndiaOil Corporation was down by 3.3 per cent to Rs 125.80 apiece. Index heavyweight Reliance Industries slipped by 2.2 per cent. The other prominent losers were Tata Motors, Mahindra & Mahindra, Yes Bank, State Bank of India, Bharti Infratel and Asian Paints. However, those which traded in the green were Indiabulls Housing Finance, ONGC, GAIL, Sun Pharma and Dr Reddy. Meanwhile, moves in Asian share markets were small with Japan shut for a public holiday. MSCI`s broadest index of Asia Pacific shares outside Japan was a notch lower at 515.4 while South Korea`s KOSPI was a tad higher by 0.4 per cent. Hong Kong`s Hang Seng was down by 1 per cent.

Sensex and Nifty slip, oil firms under pressure after Saudi attack

Oil prices surged more than 10 per cent Monday after <a href="https://www.wionews.com/world/saudi-races-to-restore-oil-supply-after-strike-blamed-on-iran-249851">attacks on two Saudi Arabian plants that slashed output</a> in the world's top producer by half, with <a href="https://www.wionews.com/world/iran-dismisses-us-claim-it-was-behind-saudi-oil-attacks-says-ready-for-war-249810">Donald Trump blaming Iran </a>and raising the possibility of a military strike on the country.

West Texas Intermediate jumped 10.68 per cent to $60.71 and Brent climbed 11.77 per cent to $67.31 in early Asia trading following the blasts at facilities run by state-owned giant Aramco.

The attack by Tehran-backed Huthi rebels in neighbouring Yemen, where a Saudi-led coalition is bogged down in a five-year war, effectively shut down six per cent of the global oil supply.

Brent soared almost 20 per cent at one point on Monday, while WTI surged around 15 per cent before paring the gains.

Trump said Sunday the US was "locked and loaded" to respond to the attack, while Secretary of State Mike Pompeo said,&nbsp;"The United States will work with our partners and allies to ensure that energy markets remain well supplied and Iran is held accountable for its aggression."

Tehran denies the accusations but the news has revived fears of a conflict in the tinderbox Middle East after a series of attacks on oil tankers earlier this year that were also blamed on Iran.

"Tensions in the Middle East are rising quickly, meaning this story will continue to reverberate this week even after the knee-jerk panic in oil markets this morning," said Jeffrey Halley, senior market analyst at OANDA.

Oil prices surged more than 10 per cent Monday after attacks on two Saudi Arabian plants that slashed output in the world's top producer by half, with Donald Trump blaming Iran and raising the possibility of a military strike on the country.

Oil prices surged more than 10 per cent Monday after attacks on two Saudi Arabian plants that slashed output in the world's top producer by half, with Donald Trump blaming Iran and raising the possibility of a military strike on the country. West Texas Intermediate jumped 10.68 per cent to $60.71 and Brent climbed 11.77 per cent to $67.31 in early Asia trading following the blasts at facilities run by state-owned giant Aramco. The attack by Tehran-backed Huthi rebels in neighbouring Yemen, where a Saudi-led coalition is bogged down in a five-year war, effectively shut down six per cent of the global oil supply. Brent soared almost 20 per cent at one point on Monday, while WTI surged around 15 per cent before paring the gains. Trump said Sunday the US was "locked and loaded" to respond to the attack, while Secretary of State Mike Pompeo said, "The United States will work with our partners and allies to ensure that energy markets remain well supplied and Iran is held accountable for its aggression." Tehran denies the accusations but the news has revived fears of a conflict in the tinderbox Middle East after a series of attacks on oil tankers earlier this year that were also blamed on Iran. "Tensions in the Middle East are rising quickly, meaning this story will continue to reverberate this week even after the knee-jerk panic in oil markets this morning," said Jeffrey Halley, senior market analyst at OANDA.

Oil prices soar more than 10% after attacks on two Saudi plants

Oil prices rose on Wednesday after a reported sharp drop in US&nbsp;crude stocks and <a href="https://www.wionews.com/world/oil-rises-as-saudi-signals-opec-cuts-to-continue-under-new-minister-248572">OPEC</a>&nbsp;member Iraq said the producer group would discuss deepening output cuts amid ongoing demand concerns.

Brent crude gained 52 cents, or 0.8 per cent, to $62.90 a barrel by 1027 GMT, while US&nbsp;West Texas Intermediate rose 60 cents, or 1.1 per cent, to $58 a barrel.

Oil prices have risen more than 7 per cent this&nbsp;month, supported by declines in global inventories and signs of an easing in trade tensions between the United States and China, the world's two largest economies and energy consumers.

Prices rose this week after <a href="https://www.wionews.com/world/new-saudi-energy-minister-a-royal-with-decades-of-experience-in-opec-cuts-248719">Prince Abdulaziz bin Salman</a>, Saudi Arabia's new energy minister, said oil policy would not change and said an OPEC deal with Russia and other producers to cut output by 1.2 million barrels per day (BPD) would be maintained.

Iraqi Oil Minister Thamer Ghadhban said the Organization of the Petroleum Exporting Countries would discuss whether to deepen cuts when ministers meet on Thursday.

He said OPEC had discussed cuts of 1.6 million to 1.8 million BPD when considering output curbs last year.

Russia's Energy Minister Alexander Novak said an alliance of OPEC and other producers, known as OPEC+, would discuss global oil demand, but added that there were no fresh proposals to change production cut volumes.

<a href="https://www.wionews.com/business-economy/oil-hits-six-week-high-on-hopes-of-extended-opec-output-cuts-248741">OPEC cut</a> its forecast on Wednesday for growth in world oil demand in 2020 by 60,000 BPD to 1.08 million BPD, due to an economic slowdown.

It indicated the market would be in surplus.

The US Energy Information Administration (EIA) also slashed its demand forecasts this week.

Growing signs of a slowdown were flagged by oil traders and executives attending industry gatherings in Singapore and Abu Dhabi this week.

OPEC has pointed to rising global production next year, particularly in US shale fields, while data from the American Petroleum Institute (API) showed US&nbsp;crude stocks fell last week by 7.2 million barrels, more than twice the amount analysts in a Reuters poll had forecast.

"The API report is quite constructive for the oil market as it points to a tightening domestic oil market in the face of flat production and stronger demand," Dutch bank ING said.

The EIA's official numbers for US&nbsp;inventories will be released at 1430 GMT on Wednesday.

Oil prices rose on Wednesday after a reported sharp drop in US crude stocks and OPEC member Iraq said the producer group would discuss deepening output cuts amid ongoing demand concerns.

Oil prices rose on Wednesday after a reported sharp drop in US crude stocks and OPEC member Iraq said the producer group would discuss deepening output cuts amid ongoing demand concerns. Brent crude gained 52 cents, or 0.8 per cent, to $62.90 a barrel by 1027 GMT, while US West Texas Intermediate rose 60 cents, or 1.1 per cent, to $58 a barrel. Oil prices have risen more than 7 per cent this month, supported by declines in global inventories and signs of an easing in trade tensions between the United States and China, the world's two largest economies and energy consumers. Prices rose this week after Prince Abdulaziz bin Salman, Saudi Arabia's new energy minister, said oil policy would not change and said an OPEC deal with Russia and other producers to cut output by 1.2 million barrels per day (BPD) would be maintained. Iraqi Oil Minister Thamer Ghadhban said the Organization of the Petroleum Exporting Countries would discuss whether to deepen cuts when ministers meet on Thursday. He said OPEC had discussed cuts of 1.6 million to 1.8 million BPD when considering output curbs last year. Russia's Energy Minister Alexander Novak said an alliance of OPEC and other producers, known as OPEC+, would discuss global oil demand, but added that there were no fresh proposals to change production cut volumes. OPEC cut its forecast on Wednesday for growth in world oil demand in 2020 by 60,000 BPD to 1.08 million BPD, due to an economic slowdown. It indicated the market would be in surplus. The US Energy Information Administration (EIA) also slashed its demand forecasts this week. Growing signs of a slowdown were flagged by oil traders and executives attending industry gatherings in Singapore and Abu Dhabi this week. OPEC has pointed to rising global production next year, particularly in US shale fields, while data from the American Petroleum Institute (API) showed US crude stocks fell last week by 7.2 million barrels, more than twice the amount analysts in a Reuters poll had forecast. "The API report is quite constructive for the oil market as it points to a tightening domestic oil market in the face of flat production and stronger demand," Dutch bank ING said. The EIA's official numbers for US inventories will be released at 1430 GMT on Wednesday.

International oil prices gain after fall in US stocks

Oil prices fell on Monday after Iran described emergency talks on a multi-party nuclear agreement with a group of signatories as "constructive", suggesting an easing of tensions in the Middle East.

Brent crude futures were up 23 cents, or 0.4%, at $63.23 a barrel by 0054 GMT. Prices rose 1.6% last week.

US&nbsp;West Texas Intermediate crude was down by 12 cents, or 0.2%, at $56.08 a barrel. WTI gained 1% last week.

An emergency meeting with parties to Iran's 2015 nuclear deal was constructive but there are unresolved issues and Tehran will continue to reduce its nuclear commitments if Europeans fail to salvage the pact, Iranian official Abbas Araqchi said on Sunday.

"The atmosphere was constructive. Discussions were good. I cannot say that we resolved everything, I can say there are lots of commitments," Araqchi, the senior Iranian nuclear negotiator, told reporters after the meeting in Vienna.

The meeting did not include the United States, which pulled out of the agreement in May 2018 and slapped sanctions back on Iranian oil exports.

Still, tensions remain high around the Strait of Hormuz, the world's most important oil passageway, as Iran refused to release a British-flagged tanker it seized but granted India consular access to 18 Indian crew members.

Denmark welcomed the British government's proposal for a European-led naval mission to ensure safe shipping through the strait.

The United States is also working on a multinational maritime security initiative in the Gulf.

Traders and investors are also focussed this week on meetings of major central banks including the US&nbsp;Federal Reserve, which is expected to lower interest rates.

US&nbsp;economic growth slowed less than expected in the second quarter with a boom in consumer spending, strengthening the outlook for oil consumption.

Growth outside the United States is slowing faster due partly to the impact of the US-China trade war. Senior US&nbsp;and Chinese negotiators are meeting this week for the first time since trade talks broke down in May.

A positive outcome may boost crude prices, analysts said.

Oil prices fell on Monday after Iran described emergency talks on a multi-party nuclear agreement with a group of signatories as "constructive", suggesting an easing of tensions in the Middle East.

Oil prices fell on Monday after Iran described emergency talks on a multi-party nuclear agreement with a group of signatories as "constructive", suggesting an easing of tensions in the Middle East. Brent crude futures were up 23 cents, or 0.4%, at $63.23 a barrel by 0054 GMT. Prices rose 1.6% last week. US West Texas Intermediate crude was down by 12 cents, or 0.2%, at $56.08 a barrel. WTI gained 1% last week. An emergency meeting with parties to Iran's 2015 nuclear deal was constructive but there are unresolved issues and Tehran will continue to reduce its nuclear commitments if Europeans fail to salvage the pact, Iranian official Abbas Araqchi said on Sunday. "The atmosphere was constructive. Discussions were good. I cannot say that we resolved everything, I can say there are lots of commitments," Araqchi, the senior Iranian nuclear negotiator, told reporters after the meeting in Vienna. The meeting did not include the United States, which pulled out of the agreement in May 2018 and slapped sanctions back on Iranian oil exports. Still, tensions remain high around the Strait of Hormuz, the world's most important oil passageway, as Iran refused to release a British-flagged tanker it seized but granted India consular access to 18 Indian crew members. Denmark welcomed the British government's proposal for a European-led naval mission to ensure safe shipping through the strait. The United States is also working on a multinational maritime security initiative in the Gulf. Traders and investors are also focussed this week on meetings of major central banks including the US Federal Reserve, which is expected to lower interest rates. US economic growth slowed less than expected in the second quarter with a boom in consumer spending, strengthening the outlook for oil consumption. Growth outside the United States is slowing faster due partly to the impact of the US-China trade war. Senior US and Chinese negotiators are meeting this week for the first time since trade talks broke down in May. A positive outcome may boost crude prices, analysts said.

Oil falls after 'constructive' talks on Iran's nuclear deal

Oil prices rose on Friday and were on track for a weekly increase as geopolitical tensions over Iran remained unresolved, although flagging prospects for global economic growth amid the <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/trade-war-like-the-one-going-on-between-us-and-china-foolish-thailand-ambassador-at-wion-world-order-238434&amp;sa=U&amp;ved=2ahUKEwij9_GHsNLjAhUbHo8KHfTpAw0QFjADegQIDxAC&amp;usg=AOvVaw3q6V_pmXlrHO0FOtaqNfXk">US-China trade war</a> capped gains.

Brent crude futures were up 23 cents at $63.62 per barrel at 0922 GMT, equivalent to a weekly rise of around 1.8%. They fell 6% last week.

US West Texas Intermediate crude was 25 cents higher at $56.27 a barrel, a weekly gain of 1.1%. It fell to 7.5% last week.

Tensions remained high around the Strait of Hormuz, the world's most important oil passageway, as Iran refused to release a British-flagged tanker it seized last week in the Gulf.

US Secretary of State Mike Pompeo said Washington had asked Japan, France, Germany, South Korea, Australia, and other nations to join a maritime security initiative in the Middle East so oil and other products can flow through the strait.

However, oil prices' reaction to the strains in the Gulf has been relatively muted. "It appears that the majority of market participants do not expect a military conflict that would hamper oil shipments," Commerzbank analyst Carsten Fritsch said.

Prices also drew support from a crude inventory draw in the United States, but gains were limited as the fall appeared to have been largely anticipated. The US production in the Gulf of Mexico was still feeling the effects of Hurricane Barry.

WATCH:&nbsp;Iran-UK tanker tensions: Iran releases 9 crew members

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"Several indicators pointing to a slowdown of global oil demand growth appear to have taken over market sentiment," Jefferies analyst Jason Gammel said.

Reuters polls taken July 1-24 showed the growth outlook for nearly 90% of the more than 45 economies surveyed was downgraded or left unchanged. That applied not just to this year but also in 2020.

"Growing challenges in the macroeconomic environment have kept bullish bets in check as risk appetites remain soft over potential weakness in global fuel demand," said Benjamin Lu, commodities analyst at Singapore-based Phillip Futures.

The slowdown in global manufacturing and trade, and the associated hit to oil consumption, largely stems from a US-China trade war that has rumbled on over the last year.

Trade talks between the two countries broke down in May after nearing an agreement. Next week, the top US and Chinese negotiators meet for the first time since then. Any positive outcome of the meeting is expected to boost oil prices.

Oil prices rose on Friday and were on track for a weekly increase as geopolitical tensions over Iran remained unresolved, although flagging prospects for global economic growth amid the US-China trade war capped gains.

Oil prices rose on Friday and were on track for a weekly increase as geopolitical tensions over Iran remained unresolved, although flagging prospects for global economic growth amid the US-China trade war capped gains. Brent crude futures were up 23 cents at $63.62 per barrel at 0922 GMT, equivalent to a weekly rise of around 1.8%. They fell 6% last week. US West Texas Intermediate crude was 25 cents higher at $56.27 a barrel, a weekly gain of 1.1%. It fell to 7.5% last week. Tensions remained high around the Strait of Hormuz, the world's most important oil passageway, as Iran refused to release a British-flagged tanker it seized last week in the Gulf. US Secretary of State Mike Pompeo said Washington had asked Japan, France, Germany, South Korea, Australia, and other nations to join a maritime security initiative in the Middle East so oil and other products can flow through the strait. However, oil prices' reaction to the strains in the Gulf has been relatively muted. "It appears that the majority of market participants do not expect a military conflict that would hamper oil shipments," Commerzbank analyst Carsten Fritsch said. Prices also drew support from a crude inventory draw in the United States, but gains were limited as the fall appeared to have been largely anticipated. The US production in the Gulf of Mexico was still feeling the effects of Hurricane Barry. WATCH: Iran-UK tanker tensions: Iran releases 9 crew members × "Several indicators pointing to a slowdown of global oil demand growth appear to have taken over market sentiment," Jefferies analyst Jason Gammel said. Reuters polls taken July 1-24 showed the growth outlook for nearly 90% of the more than 45 economies surveyed was downgraded or left unchanged. That applied not just to this year but also in 2020. "Growing challenges in the macroeconomic environment have kept bullish bets in check as risk appetites remain soft over potential weakness in global fuel demand," said Benjamin Lu, commodities analyst at Singapore-based Phillip Futures. The slowdown in global manufacturing and trade, and the associated hit to oil consumption, largely stems from a US-China trade war that has rumbled on over the last year. Trade talks between the two countries broke down in May after nearing an agreement. Next week, the top US and Chinese negotiators meet for the first time since then. Any positive outcome of the meeting is expected to boost oil prices.

Oil prices rise as Iran tensions remain unresolved

Oil prices rose about 1% on Thursday after Iran said it had <a href="https://www.wionews.com/world/seized-foreign-tanker-in-strait-of-hormuz-iran-236898">seized a foreign oil tanker</a> in the Gulf amid rising tensions between Tehran and the West over the safety of shipping in the Strait of Hormuz, a vital gateway for energy exports.

Brent crude futures were up 48 cents at $64.14 a barrel by 1148 GMT after hitting a session high of $64.46.

West Texas Intermediate crude futures were up 33 cents at $57.11 after the U.S. benchmark hit a session high of $57.32.

Iran said the vessel, which it did not identify, was smuggling fuel and had been carrying 1 million litres, or around 6,200 barrels.

"The oil price reaction on Thursday shows once again that the conflict in the Middle East is far from solved and tensions could flare up at any time again. As oil keeps flowing, prices are likely to rise only temporarily," said Giovanni Staunovo, an analyst at Union Bank of Switzerland (UBS).

Iran said the vessel impounded was the same one it towed on Sunday after the ship had sent a distress call. US officials said on Wednesday they were unsure whether an oil tanker towed into Iranian waters had been seized or rescued.

Britain urged Iran to ease tensions in the Gulf while pledging to defend its shipping interests in the region.

Oil had fallen on Wednesday in response to a sharp rise in US stockpiles of products such as gasoline that pointed to weak demand during the US driving season.

WATCH: Iran says UK's seizure of oil tanker will not go unanswered

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Data from the US Energy Information Administration (EIA) showed a larger-than-expected drawdown in crude stockpiles last week, but traders focused instead on large builds in refined product inventories.

US crude inventories fell by 3.1 million barrels, the EIA said, more than analysts' forecasts for a decrease of 2.7 million barrels.

But gasoline stocks rose by 3.6 million barrels, compared with analysts' expectations in a Reuters poll for a 925,000-barrel drop. Distillate stockpiles grew by 5.7 million barrels, much more than expectations for a 613,000-barrel increase, the EIA data showed.

The gasoline inventory build in the United States was "especially remarkable in the week after the Independence Day weekend given that this is normally one of the periods of highest demand", analysts at Commerzbank wrote.

The summer driving season normally entails increased consumption of gasoline.

US President Donald Trump’s threat to impose additional tariffs on China has also pressured oil prices, with nerves on edge over when talks between the two countries will resume resolving a trade war that has slowed global economic growth.

Barclays on Thursday lowered its oil price forecasts for the second half of this year and 2020, saying it expected slower demand growth due to a weaker-than-expected global economic backdrop.

Oil prices rose about 1% on Thursday after Iran said it had seized a foreign oil tanker in the Gulf amid rising tensions between Tehran and the West over the safety of shipping in the Strait of Hormuz, a vital gateway for energy exports.

Oil prices rose about 1% on Thursday after Iran said it had seized a foreign oil tanker in the Gulf amid rising tensions between Tehran and the West over the safety of shipping in the Strait of Hormuz, a vital gateway for energy exports. Brent crude futures were up 48 cents at $64.14 a barrel by 1148 GMT after hitting a session high of $64.46. West Texas Intermediate crude futures were up 33 cents at $57.11 after the U.S. benchmark hit a session high of $57.32. Iran said the vessel, which it did not identify, was smuggling fuel and had been carrying 1 million litres, or around 6,200 barrels. "The oil price reaction on Thursday shows once again that the conflict in the Middle East is far from solved and tensions could flare up at any time again. As oil keeps flowing, prices are likely to rise only temporarily," said Giovanni Staunovo, an analyst at Union Bank of Switzerland (UBS). Iran said the vessel impounded was the same one it towed on Sunday after the ship had sent a distress call. US officials said on Wednesday they were unsure whether an oil tanker towed into Iranian waters had been seized or rescued. Britain urged Iran to ease tensions in the Gulf while pledging to defend its shipping interests in the region. Oil had fallen on Wednesday in response to a sharp rise in US stockpiles of products such as gasoline that pointed to weak demand during the US driving season. WATCH: Iran says UK's seizure of oil tanker will not go unanswered × Data from the US Energy Information Administration (EIA) showed a larger-than-expected drawdown in crude stockpiles last week, but traders focused instead on large builds in refined product inventories. US crude inventories fell by 3.1 million barrels, the EIA said, more than analysts' forecasts for a decrease of 2.7 million barrels. But gasoline stocks rose by 3.6 million barrels, compared with analysts' expectations in a Reuters poll for a 925,000-barrel drop. Distillate stockpiles grew by 5.7 million barrels, much more than expectations for a 613,000-barrel increase, the EIA data showed. The gasoline inventory build in the United States was "especially remarkable in the week after the Independence Day weekend given that this is normally one of the periods of highest demand", analysts at Commerzbank wrote. The summer driving season normally entails increased consumption of gasoline. US President Donald Trump’s threat to impose additional tariffs on China has also pressured oil prices, with nerves on edge over when talks between the two countries will resume resolving a trade war that has slowed global economic growth. Barclays on Thursday lowered its oil price forecasts for the second half of this year and 2020, saying it expected slower demand growth due to a weaker-than-expected global economic backdrop.

Oil prices rise after Iran says it seized foreign tanker in Gulf

Oil prices rose 4.5 per cent a barrel on Wednesday to their highest level in more than a month after <a href="https://www.wionews.com/business-economy/oil-falls-on-trade-dispute-despite-surprise-drop-in-us-crude-inventories-217140">US crude inventories</a> shrank and as major producers cut nearly a third of offshore Gulf of Mexico production ahead of an expected storm.

Brent crude futures settled at $67.01 a barrel, up $2.85, or 4.44 percent. US <a href="https://www.wionews.com/business-economy/crude-oil-prices-fall-1-on-fears-for-global-economy-233148">West Texas Intermediate</a> (WTI) crude futures settled at $60.43 a barrel, climbing $2.60, or 4.50 percent.

Both benchmarks hit their highest prices since late-May.

US crude stocks fell 9.5 million barrels in the week to July 5, shrinking more than triple the 3.1 million-barrel draw analysts had expected as refineries ramped up output, the Energy Information Administration (EIA) said.

"The inventory draw was much stronger than expected," which helped to push oil prices higher, said Carsten Fritsch, oil analyst at Commerzbank. "Imports dropped and refinery utilization reached the highest level since the beginning of the year, contributing to the big draw."

A storm expected to form along the Gulf of Mexico also helped oil prices.

Major oil firms began evacuating and halting production in the Gulf of Mexico ahead of the storm, which is forecast to become a hurricane by the weekend.

"With the evacuation of several platforms in the Gulf of Mexico in advance of a tropical storm, that will curb production," said Andrew Lipow, president of Lipow Oil Associates.

Chevron Corp, Royal Dutch Shell, BP, Anadarko Petroleum and BHP Group &nbsp;were in the process of removing staff from 15 offshore platforms. Exxon Mobil &nbsp;said it was monitoring the weather to determine if its facilities might be affected.

The Gulf of Mexico is home to 17 per cent of US crude oil output which stands at around 12 million barrels per day.

The US and global benchmarks have gained this year as the Organisation of the Petroleum Exporting Countries (OPEC) and big producers such as Russia have curbed output to bolster prices.

The alliance, known as OPEC+, agreed last week to extend its supply-cutting deal until March 2020.

Tensions around Iran's nuclear programme and recent incidents involving oil tankers in the Gulf have also supported prices.

"The ongoing geopolitical tensions between the United States and Iran continue to add a still unquantifiable level of support," said Saxo Bank commodity strategist Ole Hansen.

A top US general said on Tuesday that Washington hopes to enlist allies over the next two weeks or so in a military coalition to safeguard strategic waters off Iran and Yemen, where the United States blames Iran and Iran-aligned fighters for attacks.

Oil prices rose 4.5 per cent a barrel on Wednesday to their highest level in more than a month after US crude inventories shrank and as major producers cut nearly a third of offshore Gulf of Mexico production ahead of an expected storm.

Oil prices rose 4.5 per cent a barrel on Wednesday to their highest level in more than a month after US crude inventories shrank and as major producers cut nearly a third of offshore Gulf of Mexico production ahead of an expected storm. Brent crude futures settled at $67.01 a barrel, up $2.85, or 4.44 percent. US West Texas Intermediate (WTI) crude futures settled at $60.43 a barrel, climbing $2.60, or 4.50 percent. Both benchmarks hit their highest prices since late-May. US crude stocks fell 9.5 million barrels in the week to July 5, shrinking more than triple the 3.1 million-barrel draw analysts had expected as refineries ramped up output, the Energy Information Administration (EIA) said. "The inventory draw was much stronger than expected," which helped to push oil prices higher, said Carsten Fritsch, oil analyst at Commerzbank. "Imports dropped and refinery utilization reached the highest level since the beginning of the year, contributing to the big draw." A storm expected to form along the Gulf of Mexico also helped oil prices. Major oil firms began evacuating and halting production in the Gulf of Mexico ahead of the storm, which is forecast to become a hurricane by the weekend. "With the evacuation of several platforms in the Gulf of Mexico in advance of a tropical storm, that will curb production," said Andrew Lipow, president of Lipow Oil Associates. Chevron Corp, Royal Dutch Shell, BP, Anadarko Petroleum and BHP Group were in the process of removing staff from 15 offshore platforms. Exxon Mobil said it was monitoring the weather to determine if its facilities might be affected. The Gulf of Mexico is home to 17 per cent of US crude oil output which stands at around 12 million barrels per day. The US and global benchmarks have gained this year as the Organisation of the Petroleum Exporting Countries (OPEC) and big producers such as Russia have curbed output to bolster prices. The alliance, known as OPEC+, agreed last week to extend its supply-cutting deal until March 2020. Tensions around Iran's nuclear programme and recent incidents involving oil tankers in the Gulf have also supported prices. "The ongoing geopolitical tensions between the United States and Iran continue to add a still unquantifiable level of support," said Saxo Bank commodity strategist Ole Hansen. A top US general said on Tuesday that Washington hopes to enlist allies over the next two weeks or so in a military coalition to safeguard strategic waters off Iran and Yemen, where the United States blames Iran and Iran-aligned fighters for attacks.

Oil prices jump 4.5 per cent on United States crude stocks draw, Gulf of Mexico storm

<a href="https://www.wionews.com/business-economy/oil-prices-fall-on-surging-us-crude-stockpiles-economic-concerns-221236">Oil prices</a> were mixed on Tuesday as supply cuts, led by producer club OPEC, and US&nbsp;sanctions on fuel exports from Iran and Venezuela supported crude, while concerns about an economic slowdown weighed on the market.

Front-month Brent crude futures, the international benchmark for oil prices, were at $69.99 at 0637 GMT, down 12 cents, or 0.2%, from the last session's close, when they rose 2.1%.

US West Texas Intermediate (WTI) crude futures were at $59.03 per barrel, up 40 cents, or 0.7%, from their last close on Friday. WTI did not trade on Monday due to a US&nbsp;public holiday.

Prices have been supported by supply cuts led by the Organisation of the Petroleum Exporting Countries (OPEC) since the start of the year, and by political tensions in the Middle East.

OPEC and some allies including Russia are due to meet on June 25 and 26 to discuss output policy.

Beyond the output cuts, US&nbsp;bank, Citi said, "Geopolitical turmoil across the Middle East ... are likely to encourage financial investors to realign with their bullish physical counterparties."

In physical oil markets, the Middle East crude premiums hit their highest levels in years earlier this month amid falling supply.

Beyond the OPEC cuts, US&nbsp;sanctions on petroleum exports from Iran and Venezuela have tightened markets.

"Iran exports remain under pressure as US sanctions bite. This comes as OPEC appears to be heading towards extending the current production cut agreement," Citi added.

Trump last year withdrew the United States from a 2015 international nuclear deal with Iran, and Washington is ratcheting up sanctions seeking to end Tehran's international sales of crude oil and strangle its economy.

Washington has also imposed sanctions on Venezuela's oil exports, in a bid to topple the government under President Nicolas Maduro there.

Despite this, markets remain cautious amid an economic slowdown as a result of the ongoing trade war between the United States and China, which is also expected to dent fuel consumption.

"We really need to see some strong demand figures, which so far this year has not happened before we can really start listening to the bulls," said Matt Stanley, a broker at Starfuels in Dubai.

Oil prices were mixed on Tuesday as supply cuts, led by producer club OPEC, and US sanctions on fuel exports from Iran and Venezuela supported crude, while concerns about an economic slowdown weighed on the market.

Oil prices were mixed on Tuesday as supply cuts, led by producer club OPEC, and US sanctions on fuel exports from Iran and Venezuela supported crude, while concerns about an economic slowdown weighed on the market. Front-month Brent crude futures, the international benchmark for oil prices, were at $69.99 at 0637 GMT, down 12 cents, or 0.2%, from the last session's close, when they rose 2.1%. US West Texas Intermediate (WTI) crude futures were at $59.03 per barrel, up 40 cents, or 0.7%, from their last close on Friday. WTI did not trade on Monday due to a US public holiday. Prices have been supported by supply cuts led by the Organisation of the Petroleum Exporting Countries (OPEC) since the start of the year, and by political tensions in the Middle East. OPEC and some allies including Russia are due to meet on June 25 and 26 to discuss output policy. Beyond the output cuts, US bank, Citi said, "Geopolitical turmoil across the Middle East ... are likely to encourage financial investors to realign with their bullish physical counterparties." In physical oil markets, the Middle East crude premiums hit their highest levels in years earlier this month amid falling supply. Beyond the OPEC cuts, US sanctions on petroleum exports from Iran and Venezuela have tightened markets. "Iran exports remain under pressure as US sanctions bite. This comes as OPEC appears to be heading towards extending the current production cut agreement," Citi added. Trump last year withdrew the United States from a 2015 international nuclear deal with Iran, and Washington is ratcheting up sanctions seeking to end Tehran's international sales of crude oil and strangle its economy. Washington has also imposed sanctions on Venezuela's oil exports, in a bid to topple the government under President Nicolas Maduro there. Despite this, markets remain cautious amid an economic slowdown as a result of the ongoing trade war between the United States and China, which is also expected to dent fuel consumption. "We really need to see some strong demand figures, which so far this year has not happened before we can really start listening to the bulls," said Matt Stanley, a broker at Starfuels in Dubai.

Oil mixed as OPEC cuts, US sanctions prop up prices while trade war weighs

Oil&nbsp;prices dropped on Thursday, extending falls from the previous session amid surging US&nbsp;crude inventories and weak demand from refineries.

Brent crude futures, the international benchmark for&nbsp;oil&nbsp;prices, were at $70.62 per barrel at 0109 GMT, down 37 cents, or 0.5 per cent, from their last close.

US West Texas Intermediate (WTI) crude futures were down by 31 cents, or 0.5 per cent, at $61.11 per barrel.

Crude futures already fell by around 2 per cent the previous day.

"Rising inventories and a slowdown with refined product demand could suggest we could see further pressure (on&nbsp;prices)," said Edward Moya, senior analyst at futures brokerage OANDA.

The<a href="https://www.wionews.com/world/oil-prices-fall-on-surging-us-crude-stockpiles-economic-concerns-220779"> US&nbsp;crude&nbsp;oil&nbsp;</a>inventories rose last week, hitting their highest levels since July 2017, due to weak refinery demand, the Energy Information Administration said on Wednesday.

Commercial US&nbsp;crude inventories rose by 4.7 million barrels in the week ended May 17, to 476.8 million barrels, their highest since July 2017, the EIA data showed.

Beyond weak refinery demand for feedstock crude&nbsp;oil, the increase in commercial inventories also came on the back of planned sales of US&nbsp;strategic petroleum reserves (SPR) into the commercial market.

The US&nbsp;crude&nbsp;oil&nbsp;production climbed by 100,000 barrels per day (bpd) to 12.2 million bpd, putting output near its record of 12.3 million bpd reached late last month.

Ole Hansen, head of the commodity strategy at Saxo Bank, said "concerns about slowing (oil) demand growth due to the negative impact on the global economy of the US-China&nbsp;trade war" were also weighing on&nbsp;oil&nbsp;prices.

Countering these bearish&nbsp;price&nbsp;factors have been escalating political tensions between the United States and Iran, as well as ongoing supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) that started in January in an effort to prop up the market.

"Large but opposing forces have kept Brent in a $70-$75 per barrel range in recent weeks," Morgan Stanley said in a note on&nbsp;oil&nbsp;markets published this week.

"Macroeconomic data has rapidly deteriorated, and this is reflected in weaker&nbsp;oil&nbsp;demand. At the same time, the downside risk to supply is materialising in key countries (adding to OPEC's production cuts)," the US bank said.

"On balance, however, we still see tightness in 2H19," Morgan Stanley said, adding it expected Brent to trade in the $75-$80 per barrel range in the second half of 2019.

French bank BNP Paribas said high inventories meant that OPEC would likely keep its voluntary supply cuts in place. "Supply management is here to stay," the bank said.

Oil prices dropped on Thursday, extending falls from the previous session amid surging US crude inventories and weak demand from refineries. Brent crude futures, the international benchmark for oil prices, were at $70.

Oil prices dropped on Thursday, extending falls from the previous session amid surging US crude inventories and weak demand from refineries. Brent crude futures, the international benchmark for oil prices, were at $70.62 per barrel at 0109 GMT, down 37 cents, or 0.5 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were down by 31 cents, or 0.5 per cent, at $61.11 per barrel. Crude futures already fell by around 2 per cent the previous day. "Rising inventories and a slowdown with refined product demand could suggest we could see further pressure (on prices)," said Edward Moya, senior analyst at futures brokerage OANDA. The US crude oil inventories rose last week, hitting their highest levels since July 2017, due to weak refinery demand, the Energy Information Administration said on Wednesday. Commercial US crude inventories rose by 4.7 million barrels in the week ended May 17, to 476.8 million barrels, their highest since July 2017, the EIA data showed. Beyond weak refinery demand for feedstock crude oil, the increase in commercial inventories also came on the back of planned sales of US strategic petroleum reserves (SPR) into the commercial market. The US crude oil production climbed by 100,000 barrels per day (bpd) to 12.2 million bpd, putting output near its record of 12.3 million bpd reached late last month. Ole Hansen, head of the commodity strategy at Saxo Bank, said "concerns about slowing (oil) demand growth due to the negative impact on the global economy of the US-China trade war" were also weighing on oil prices. Countering these bearish price factors have been escalating political tensions between the United States and Iran, as well as ongoing supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) that started in January in an effort to prop up the market. "Large but opposing forces have kept Brent in a $70-$75 per barrel range in recent weeks," Morgan Stanley said in a note on oil markets published this week. "Macroeconomic data has rapidly deteriorated, and this is reflected in weaker oil demand. At the same time, the downside risk to supply is materialising in key countries (adding to OPEC's production cuts)," the US bank said. "On balance, however, we still see tightness in 2H19," Morgan Stanley said, adding it expected Brent to trade in the $75-$80 per barrel range in the second half of 2019. French bank BNP Paribas said high inventories meant that OPEC would likely keep its voluntary supply cuts in place. "Supply management is here to stay," the bank said.

Oil prices fall on surging US crude stockpiles, economic concerns

<a href="https://www.wionews.com/business-economy/oil-slides-on-rising-us-crude-stockpiles-saudi-arabia-vow-to-keep-market-balanced-220549">Oil&nbsp;prices</a>&nbsp;dropped on Thursday, extending&nbsp;falls from the previous&nbsp;session amid&nbsp;surging&nbsp;US&nbsp;crude&nbsp;inventories and weak demand from refineries.

Brent&nbsp;crude&nbsp;futures, the international benchmark for&nbsp;oil&nbsp;prices, were at $70.62 per barrel at 0109 GMT, down 37 cents, or 0.5 per cent, from their last close.

The US&nbsp;West Texas Intermediate (WTI)&nbsp;crude&nbsp;futures were down by 31 cents, or 0.5 per cent, at $61.11 per barrel.

Crude&nbsp;futures already fell by around 2 per cent the previous&nbsp;day.

"Rising inventories and a slowdown with refined product demand could suggest we could see further pressure (on&nbsp;prices)," said Edward Moya, senior analyst at futures brokerage OANDA.

US crude&nbsp;oil&nbsp;inventories rose last week, hitting their highest levels since July 2017, due to weak refinery demand, the Energy Information Administration said on Wednesday.

Commercial US&nbsp;crude&nbsp;inventories rose by 4.7 million barrels in the week ended May 17, to 476.8 million barrels, their highest since July 2017, the EIA data showed.

Beyond weak refinery demand for feedstock&nbsp;crude&nbsp;oil, the increase in commercial inventories also came on the back of planned sales of US&nbsp;strategic petroleum reserves (SPR) into the commercial market.

US crude&nbsp;oil&nbsp;production climbed by 100,000 barrels per day (bpd) to 12.2 million bpd, putting output near its record of 12.3 million bpd reached late last month.

Ole Hansen, head of the commodity strategy at Saxo Bank, said "concerns&nbsp;about slowing (oil) demand growth due to the negative impact on the global economy of the <a href="https://www.wionews.com/business-economy/wall-street-shudders-as-us-china-trade-war-intensifies-218493">US-China&nbsp;trade war</a>" were also weighing on&nbsp;oil&nbsp;prices.

Countering these bearish price factors have been escalating political tensions between the United States and Iran, as well as ongoing supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) that started in January in an effort to prop up the market.

"Large but opposing forces have kept Brent in a $70-$75 per barrel range in recent weeks," Morgan Stanley said in a note on&nbsp;oil&nbsp;markets published this week.

"Macroeconomic&nbsp;data has rapidly deteriorated, and this is reflected in weaker&nbsp;oil&nbsp;demand. At the same time, the downside risk to supply is materialising in key countries (adding to OPEC's production cuts)," the US&nbsp;bank said.

"On balance, however, we still see tightness in 2H19," Morgan Stanley said, adding it expected Brent to trade in the $75-$80 per barrel range in the second half of 2019.

French bank BNP Paribas said high inventories meant that OPEC would likely keep its voluntary supply cuts in place.

"Supply management is here to stay," the bank said.

Oil prices dropped on Thursday, extending falls from the previous session amid surging US crude inventories and weak demand from refineries. Brent crude futures, the international benchmark for oil prices, were at $70.62 per barrel at 0109 GMT, down 37 cents, or 0.5 per cent, from their last close. The US West Texas Intermediate (WTI) crude futures were down by 31 cents, or 0.5 per cent, at $61.11 per barrel. Crude futures already fell by around 2 per cent the previous day. "Rising inventories and a slowdown with refined product demand could suggest we could see further pressure (on prices)," said Edward Moya, senior analyst at futures brokerage OANDA. US crude oil inventories rose last week, hitting their highest levels since July 2017, due to weak refinery demand, the Energy Information Administration said on Wednesday. Commercial US crude inventories rose by 4.7 million barrels in the week ended May 17, to 476.8 million barrels, their highest since July 2017, the EIA data showed. Beyond weak refinery demand for feedstock crude oil, the increase in commercial inventories also came on the back of planned sales of US strategic petroleum reserves (SPR) into the commercial market. US crude oil production climbed by 100,000 barrels per day (bpd) to 12.2 million bpd, putting output near its record of 12.3 million bpd reached late last month. Ole Hansen, head of the commodity strategy at Saxo Bank, said "concerns about slowing (oil) demand growth due to the negative impact on the global economy of the US-China trade war" were also weighing on oil prices. Countering these bearish price factors have been escalating political tensions between the United States and Iran, as well as ongoing supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) that started in January in an effort to prop up the market. "Large but opposing forces have kept Brent in a $70-$75 per barrel range in recent weeks," Morgan Stanley said in a note on oil markets published this week. "Macroeconomic data has rapidly deteriorated, and this is reflected in weaker oil demand. At the same time, the downside risk to supply is materialising in key countries (adding to OPEC's production cuts)," the US bank said. "On balance, however, we still see tightness in 2H19," Morgan Stanley said, adding it expected Brent to trade in the $75-$80 per barrel range in the second half of 2019. French bank BNP Paribas said high inventories meant that OPEC would likely keep its voluntary supply cuts in place. "Supply management is here to stay," the bank said.

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

Oil edged higher to $73 a barrel on Friday, supported by a host of supply cuts and concern of further disruption to Middle East shipments as tensions rise, and was heading for a weekly gain.

<a href="https://www.wionews.com/world/iran-urges-china-russia-concrete-action-to-save-nuclear-deal-219407">US sanctions on Iran</a> have cut the OPEC member's crude exports further in May, adding to supply curbs resulting from an OPEC-led pact. Meanwhile, rising tension in the Middle East this week has raised a concern about additional supply disruption.

Brent crude was up 43 cents to $73.05 a barrel at 1101 GMT. The global benchmark is up about 3 per cent this week, having ended last week steady and fallen the week before. US West Texas Intermediate crude added 60 cents to $63.47.

"The Middle East is acting as a tinderbox for conflict," said Stephen Brennock of oil broker PVM. "So long as this remains the case, the energy complex will continue to be supported by bullish supply-side signals."

The mounting tension overshadowed bearish developments for oil prices this week, such as an unexpected increase in US crude inventories.

A Saudi-led military coalition in Yemen carried out several air strikes on the Houthi-held capital Sanaa on Thursday after the Iranian-aligned movement claimed responsibility for drone attacks on two Saudi oil pumping stations.

Earlier this week, staff were evacuated from the US embassy in Baghdad, while US President Donald Trump ordered the deployment of an aircraft carrier group, B-52 bombers and Patriot missiles to the Middle East.

"When tensions are this high, with the US deploying a sizable military force, even a mistake or a tactical error by Iran could ignite the Middle East powder keg," Stephen Innes, head of trading and market strategy at SPI Asset Management, told Reuters by email.

"There are lots of supply risks with tensions this high."

Besides the drop in Iranian exports, Russian shipments have been disrupted and the North Sea - home to the crude underpinning Brent futures - is seeing tighter supply due to oilfield maintenance and outages.

The market is also awaiting a decision from the Organization of the Petroleum Exporting Countries (OPEC) and other producers over whether to continue with supply cuts that have boosted prices more than 30% so far this year.

A meeting of an OPEC-led ministerial committee in Saudi Arabia this weekend will assess member states' commitment to their deal reducing oil production and may make a recommendation on whether to extend or adjust the pact.

Oil edged higher to $73 a barrel on Friday, supported by a host of supply cuts and concern of further disruption to Middle East shipments as tensions rise, and was heading for a weekly gain.

Oil edged higher to $73 a barrel on Friday, supported by a host of supply cuts and concern of further disruption to Middle East shipments as tensions rise, and was heading for a weekly gain. US sanctions on Iran have cut the OPEC member's crude exports further in May, adding to supply curbs resulting from an OPEC-led pact. Meanwhile, rising tension in the Middle East this week has raised a concern about additional supply disruption. Brent crude was up 43 cents to $73.05 a barrel at 1101 GMT. The global benchmark is up about 3 per cent this week, having ended last week steady and fallen the week before. US West Texas Intermediate crude added 60 cents to $63.47. "The Middle East is acting as a tinderbox for conflict," said Stephen Brennock of oil broker PVM. "So long as this remains the case, the energy complex will continue to be supported by bullish supply-side signals." The mounting tension overshadowed bearish developments for oil prices this week, such as an unexpected increase in US crude inventories. A Saudi-led military coalition in Yemen carried out several air strikes on the Houthi-held capital Sanaa on Thursday after the Iranian-aligned movement claimed responsibility for drone attacks on two Saudi oil pumping stations. Earlier this week, staff were evacuated from the US embassy in Baghdad, while US President Donald Trump ordered the deployment of an aircraft carrier group, B-52 bombers and Patriot missiles to the Middle East. "When tensions are this high, with the US deploying a sizable military force, even a mistake or a tactical error by Iran could ignite the Middle East powder keg," Stephen Innes, head of trading and market strategy at SPI Asset Management, told Reuters by email. "There are lots of supply risks with tensions this high." Besides the drop in Iranian exports, Russian shipments have been disrupted and the North Sea - home to the crude underpinning Brent futures - is seeing tighter supply due to oilfield maintenance and outages. The market is also awaiting a decision from the Organization of the Petroleum Exporting Countries (OPEC) and other producers over whether to continue with supply cuts that have boosted prices more than 30% so far this year. A meeting of an OPEC-led ministerial committee in Saudi Arabia this weekend will assess member states' commitment to their deal reducing oil production and may make a recommendation on whether to extend or adjust the pact.

Oil lifted to $73 by real and threatened supply cuts

<a href="https://www.wionews.com/business-economy/oil-prices-rise-as-middle-east-tanker-attack-increases-supply-concerns-218303">Oil&nbsp;prices&nbsp;rose</a> on Tuesday after the world's top&nbsp;oil&nbsp;exporter&nbsp;Saudi&nbsp;Arabia said explosive-laden&nbsp;drones had attacked two pumping stations belonging to state&nbsp;oil&nbsp;company&nbsp;Aramco.

Brent crude futures were at $70.79 a barrel at 1035 GMT, up 56 cents or 0.80%.

The US&nbsp;West Texas Intermediate (WTI) crude futures were at $61.35 per barrel, up 31 cents or 0.51%.

The&nbsp;Saudi&nbsp;state news agency quoted Energy Minister Khalid al-Falih as saying that&nbsp;Aramco&nbsp;had halted pumping on the East-West pipeline until the damage was evaluated, but that production and exports were continuing without disruptions.

Falih said the&nbsp;attack&nbsp;was an "act of terrorism" that targeted the world's global&nbsp;oil&nbsp;supply.

Saudi&nbsp;Arabia said earlier that two of its&nbsp;oil&nbsp;tankers were among those&nbsp;attacked off the coast of the United Arab Emirates on Sunday, incidents which ratcheted up tensions in the world's top&nbsp;oil&nbsp;exporting region.

A US&nbsp;official said Iran was the likely culprit, but Iranian officials denied responsibility for the incident.

A television station run by Yemen's Houthi group said on Tuesday the Iran-aligned movement had launched&nbsp;drone&nbsp;attacks on Saudi installations, without identifying the targets or time of the&nbsp;attacks.

Tehran has been embroiled in an escalating war of words with the United States over stricter US&nbsp;sanctions, which have cut its oil exports and tightened global supply.

A fifth of global&nbsp;oil&nbsp;consumption passes through the Strait of Hormuz from the Middle East crude producers to global markets.

The market was also holding out some hope for flagging <a href="https://www.wionews.com/business-economy/wall-street-shudders-as-us-china-trade-war-intensifies-218493">US-China trade talks</a> as both sides expressed positive sentiments which may signal that the negotiations are not yet dead.

"The brinkmanship between Washington and Beijing is now seen as a significant hurdle to the growth in global&nbsp;oil&nbsp;demand. Meanwhile, rising geopolitical tensions in the Middle East will further promote volatility."

The negotiations between the United States and China appeared headed towards success last week but have largely unravelled over US&nbsp;accusations that Beijing sought vast, last-minute changes.

China on Monday ignored a warning from US&nbsp;President Donald Trump and moved to impose higher tariffs on a range of US&nbsp;goods including frozen vegetables and liquefied natural gas.

But the Chinese government's top diplomat, State Councillor Wang Yi, indicated on Monday that Beijing hoped for a compromise: "Both countries' negotiating teams have the ability and wisdom to resolve each other's reasonable demands."

Trump on Monday said he expected to speak to Chinese President Xi Jinping at a G20 summit in late June and have "probably a very fruitful meeting".

"The US president's comments likely tilted the balance in favour of the optimists, who continue to expect a rapprochement despite last week's major setback in trade negotiations," analyst Vandana Hari of Vanda Insights said.

Oil prices rose on Tuesday after the world's top oil exporter Saudi Arabia said explosive-laden drones had attacked two pumping stations belonging to state oil company Aramco.

Oil prices rose on Tuesday after the world's top oil exporter Saudi Arabia said explosive-laden drones had attacked two pumping stations belonging to state oil company Aramco. Brent crude futures were at $70.79 a barrel at 1035 GMT, up 56 cents or 0.80%. The US West Texas Intermediate (WTI) crude futures were at $61.35 per barrel, up 31 cents or 0.51%. The Saudi state news agency quoted Energy Minister Khalid al-Falih as saying that Aramco had halted pumping on the East-West pipeline until the damage was evaluated, but that production and exports were continuing without disruptions. Falih said the attack was an "act of terrorism" that targeted the world's global oil supply. Saudi Arabia said earlier that two of its oil tankers were among those attacked off the coast of the United Arab Emirates on Sunday, incidents which ratcheted up tensions in the world's top oil exporting region. A US official said Iran was the likely culprit, but Iranian officials denied responsibility for the incident. A television station run by Yemen's Houthi group said on Tuesday the Iran-aligned movement had launched drone attacks on Saudi installations, without identifying the targets or time of the attacks. Tehran has been embroiled in an escalating war of words with the United States over stricter US sanctions, which have cut its oil exports and tightened global supply. A fifth of global oil consumption passes through the Strait of Hormuz from the Middle East crude producers to global markets. The market was also holding out some hope for flagging US-China trade talks as both sides expressed positive sentiments which may signal that the negotiations are not yet dead. "The brinkmanship between Washington and Beijing is now seen as a significant hurdle to the growth in global oil demand. Meanwhile, rising geopolitical tensions in the Middle East will further promote volatility." The negotiations between the United States and China appeared headed towards success last week but have largely unravelled over US accusations that Beijing sought vast, last-minute changes. China on Monday ignored a warning from US President Donald Trump and moved to impose higher tariffs on a range of US goods including frozen vegetables and liquefied natural gas. But the Chinese government's top diplomat, State Councillor Wang Yi, indicated on Monday that Beijing hoped for a compromise: "Both countries' negotiating teams have the ability and wisdom to resolve each other's reasonable demands." Trump on Monday said he expected to speak to Chinese President Xi Jinping at a G20 summit in late June and have "probably a very fruitful meeting". "The US president's comments likely tilted the balance in favour of the optimists, who continue to expect a rapprochement despite last week's major setback in trade negotiations," analyst Vandana Hari of Vanda Insights said.

Oil prices jump on drone attack on Saudi Aramco facilities

Oil prices were moving higher on Tuesday, though gains were checked amid an escalation in the trade war between the United States and China.

Brent crude futures were at $70.30 a barrel at 0318 GMT, up 7 cents, or 0.1%, from their last close. Brent ended the previous session down 0.6%.

The US&nbsp;West Texas Intermediate (WTI) crude futures were at $61.11 per barrel, up 7 cents, or 0.1%, from their previous settlement. WTI closed down 1% on Monday.

Headlines from the Middle East grabbed attention early in the session after Saudi Arabia said two of its oil tankers were among those attacked off the coast of the United Arab Emirates, describing it as an attempt to undermine the security of supply amid United States-Iran tensions.

But analysts said the US-China trade war continued to cast a pall on the market as a whole.

"This ramp-up in trade tensions, which I don't really think people saw coming, is going to have an impact, a broad impact," Phin Ziebell, senior economist at National Australia Bank said by phone. "You can't avoid the impact on the oil market."

China on Monday ignored a warning from US&nbsp;President Donald Trump and moved to impose higher tariffs on a range of US goods including frozen vegetables and liquefied natural gas

The US&nbsp;Energy Department said on Monday that it was confident global oil markets are well supplied.

But that may change by the end of the year as oil production capacity could drop to under 1% of global supply-demand by the end of the year after the US&nbsp;imposed sanctions on Iran and Venezuela, the analyst said.

Saudi Arabia, the world's biggest oil exporter, is likely to raise its production much more cautiously than last year when production from the Kingdom rose to record highs above 11 million bpd in November after calls from Trump to replace Iranian barrels.

Riyadh, for now, is reluctant to boost oil supply too quickly and risk a price crash and a build-up in inventories, despite pressure from the Trump administration to reduce oil prices.

Oil prices were moving higher on Tuesday, though gains were checked amid an escalation in the trade war between the United States and China. Brent crude futures were at $70.

Oil prices were moving higher on Tuesday, though gains were checked amid an escalation in the trade war between the United States and China. Brent crude futures were at $70.30 a barrel at 0318 GMT, up 7 cents, or 0.1%, from their last close. Brent ended the previous session down 0.6%. The US West Texas Intermediate (WTI) crude futures were at $61.11 per barrel, up 7 cents, or 0.1%, from their previous settlement. WTI closed down 1% on Monday. Headlines from the Middle East grabbed attention early in the session after Saudi Arabia said two of its oil tankers were among those attacked off the coast of the United Arab Emirates, describing it as an attempt to undermine the security of supply amid United States-Iran tensions. But analysts said the US-China trade war continued to cast a pall on the market as a whole. "This ramp-up in trade tensions, which I don't really think people saw coming, is going to have an impact, a broad impact," Phin Ziebell, senior economist at National Australia Bank said by phone. "You can't avoid the impact on the oil market." China on Monday ignored a warning from US President Donald Trump and moved to impose higher tariffs on a range of US goods including frozen vegetables and liquefied natural gas The US Energy Department said on Monday that it was confident global oil markets are well supplied. But that may change by the end of the year as oil production capacity could drop to under 1% of global supply-demand by the end of the year after the US imposed sanctions on Iran and Venezuela, the analyst said. Saudi Arabia, the world's biggest oil exporter, is likely to raise its production much more cautiously than last year when production from the Kingdom rose to record highs above 11 million bpd in November after calls from Trump to replace Iranian barrels. Riyadh, for now, is reluctant to boost oil supply too quickly and risk a price crash and a build-up in inventories, despite pressure from the Trump administration to reduce oil prices.

Oil prices rise, gains tempered by US-China trade tensions

Oil futures rose on Monday on increasing concerns about supply disruptions in the crucial producing region of the Middle East even as investors and traders fretted over global economic growth prospects amid a standoff in the <a href="https://www.wionews.com/business-economy/oil-falls-on-trade-dispute-despite-surprise-drop-in-us-crude-inventories-217140">Sino-US&nbsp;trade talks</a>.

Brent crude futures were at $71.00 a barrel, up 38 cents, or 0.5%, from their last close by 0624 GMT.

The US&nbsp;West Texas Intermediate (WTI) futures were at $61.73 per barrel, up 7 cents, or 0.1%, from their previous settlement.

Saudi Arabia said on Monday that two Saudi oil tankers were among vessels targeted by a<a href="https://www.wionews.com/world/two-saudi-tankers-came-under-sabotage-attack-off-uae-no-casualties-218248"> "sabotage attack"</a> off the coast of the United Arab Emirates, condemning it as an attempt to undermine the security of global crude supplies.

Saudi Arabia and the UAE are the largest and third-largest producers, respectively, in the Organisation of the Petroleum Exporting Countries (OPEC), according to the latest survey by Reuters.

"Rising geopolitical tensions in the Middle East, together with sharply declining oil supplies from Venezuela and Iran, will remain bullish for prices," said Abhishek Kumar, head of analytics at Interfax Energy in London.

Markets have been supported by Washington's bid to cut Iran's oil exports to zero and reduce exports from Venezuela, where infrastructure problems have also cut output.

The United States reimposed sanctions on Iran in November after pulling out of a 2015 nuclear accord between Tehran and world powers last year.

Investors are also focused on tightened supplies following OPEC-led production cuts since the start of the year. There is a consensus that OPEC and its producer allies will extend the six-month output-cut agreement when they meet in June.

But the trade friction between Washington and China, which intensified last week will keep a lid on prices, said Kumar.

The United States and China together accounted for 34% of global oil consumption in the first quarter of 2019, data from the International Energy Agency showed.

"The US-China trade war is set to intensify, which will limit gains in prices," Kumar said.

"Market participants will closely watch China's retaliatory steps in response to the imposition of additional US tariffs on Chinese goods," Kumar said, adding the dispute "could be particularly detrimental to the growth in global oil demand".

The trade turmoil has prompted hedge funds to cut their bullish wagers on US crude oil to the lowest level in a month and raised their bets on Brent crude to the highest in nearly seven months, US&nbsp;government data showed on Friday.

Separately, in an early indicator of future output, US&nbsp;energy companies last week reduced the number of oil rigs operating for the third time in four weeks, cutting them by two and bringing the count down 805.

Oil futures rose on Monday on increasing concerns about supply disruptions in the crucial producing region of the Middle East even as investors and traders fretted over global economic growth prospects amid a standoff in the Sino-US trade talks.

Oil futures rose on Monday on increasing concerns about supply disruptions in the crucial producing region of the Middle East even as investors and traders fretted over global economic growth prospects amid a standoff in the Sino-US trade talks. Brent crude futures were at $71.00 a barrel, up 38 cents, or 0.5%, from their last close by 0624 GMT. The US West Texas Intermediate (WTI) futures were at $61.73 per barrel, up 7 cents, or 0.1%, from their previous settlement. Saudi Arabia said on Monday that two Saudi oil tankers were among vessels targeted by a "sabotage attack" off the coast of the United Arab Emirates, condemning it as an attempt to undermine the security of global crude supplies. Saudi Arabia and the UAE are the largest and third-largest producers, respectively, in the Organisation of the Petroleum Exporting Countries (OPEC), according to the latest survey by Reuters. "Rising geopolitical tensions in the Middle East, together with sharply declining oil supplies from Venezuela and Iran, will remain bullish for prices," said Abhishek Kumar, head of analytics at Interfax Energy in London. Markets have been supported by Washington's bid to cut Iran's oil exports to zero and reduce exports from Venezuela, where infrastructure problems have also cut output. The United States reimposed sanctions on Iran in November after pulling out of a 2015 nuclear accord between Tehran and world powers last year. Investors are also focused on tightened supplies following OPEC-led production cuts since the start of the year. There is a consensus that OPEC and its producer allies will extend the six-month output-cut agreement when they meet in June. But the trade friction between Washington and China, which intensified last week will keep a lid on prices, said Kumar. The United States and China together accounted for 34% of global oil consumption in the first quarter of 2019, data from the International Energy Agency showed. "The US-China trade war is set to intensify, which will limit gains in prices," Kumar said. "Market participants will closely watch China's retaliatory steps in response to the imposition of additional US tariffs on Chinese goods," Kumar said, adding the dispute "could be particularly detrimental to the growth in global oil demand". The trade turmoil has prompted hedge funds to cut their bullish wagers on US crude oil to the lowest level in a month and raised their bets on Brent crude to the highest in nearly seven months, US government data showed on Friday. Separately, in an early indicator of future output, US energy companies last week reduced the number of oil rigs operating for the third time in four weeks, cutting them by two and bringing the count down 805.

Oil prices rise as Middle East tanker attack increases supply concerns

Oil prices tumbled by more than 2 per cent on Monday after US President Donald Trump on Sunday said he would <a href="https://www.wionews.com/world/trump-announces-higher-us-tariffs-on-china-goods-216186">sharply hike tariffs on Chinese goods</a> this week, risking derailing months of trade talks between the world's two biggest economies.

US West Texas Intermediate (WTI) crude futures were at $60.44 per barrel at 0032 GMT on Monday, down $1.50 per barrel, or 2.4 per cent, from their last settlement.

Brent crude oil futures were at $69.34 per barrel, down $1.51 per barrel, or 2.1 per cent, from their last close.

Trump on Sunday said on Twitter he would drastically hike US tariffs on Chinese goods this week, pulling down global financial markets, including crude oil futures.

The Wall Street Journal reported that Beijing is considering cancelling all trade talks with Washington.

"Trump has taken the proverbial sledgehammer to the walnut this morning ... by threatening to slap a 25 per cent tariff on a mind-boggling $525 billion of Chinese goods by this Friday," said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore.

Within the oil industry, there are signs of a further rise in output from the United States, where crude production has already surged by more than 2 million barrels per day (bpd) since early 2018, to a record 12.3 million bpd. That has made the United States the world's biggest producer ahead of Russia and Saudi Arabia.

The number of rigs drilling for gas in the United States fell by 3 to 183 in the week to May 3, while oil-directed drilling rigs rose by 2 to 807, data from oil services firm Baker Hughes showed on Friday.

Oil prices tumbled by more than 2 per cent on Monday after US President Donald Trump on Sunday said he would sharply hike tariffs on Chinese goods this week, risking derailing months of trade talks between the world's two biggest economies.

Oil prices tumbled by more than 2 per cent on Monday after US President Donald Trump on Sunday said he would sharply hike tariffs on Chinese goods this week, risking derailing months of trade talks between the world's two biggest economies. US West Texas Intermediate (WTI) crude futures were at $60.44 per barrel at 0032 GMT on Monday, down $1.50 per barrel, or 2.4 per cent, from their last settlement. Brent crude oil futures were at $69.34 per barrel, down $1.51 per barrel, or 2.1 per cent, from their last close. Trump on Sunday said on Twitter he would drastically hike US tariffs on Chinese goods this week, pulling down global financial markets, including crude oil futures. The Wall Street Journal reported that Beijing is considering cancelling all trade talks with Washington. "Trump has taken the proverbial sledgehammer to the walnut this morning ... by threatening to slap a 25 per cent tariff on a mind-boggling $525 billion of Chinese goods by this Friday," said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore. Within the oil industry, there are signs of a further rise in output from the United States, where crude production has already surged by more than 2 million barrels per day (bpd) since early 2018, to a record 12.3 million bpd. That has made the United States the world's biggest producer ahead of Russia and Saudi Arabia. The number of rigs drilling for gas in the United States fell by 3 to 183 in the week to May 3, while oil-directed drilling rigs rose by 2 to 807, data from oil services firm Baker Hughes showed on Friday.

Oil prices tumble by more than 2% after Trump announces new tariffs on Chinese goods

Asian markets limped into the weekend Friday with energy firms again taking a hit from a plunge in <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/oil-prices-dip-on-record-us-output-as-iran-oil-exemption-ends-215229&amp;sa=U&amp;ved=2ahUKEwi9i4fpyP7hAhVP6nMBHXwkC70QFjAEegQIBRAC&amp;usg=AOvVaw3MwaD7oiX8HCsPd61LWwAe">oil prices</a>, while investors look ahead to the release of key US jobs data later in the day.

Observers said there may have been some caution setting in after a report suggesting the long-running trade talks between China and the United States had hit a snag.

With optimism fuelled by a broadly strong earnings season beginning to fade, dealers are taking their cash off the table after a strong start to the year, while analysts noted May is a traditionally weak month for equities.

Energy firms were once again in the firing line, dropping in tandem with crude prices owing to worries about rising supplies and falling demand.

Brent has tumbled around 6.5 per cent and WTI is off more than seven per cent from six-month highs touched just last week, taking another hit Thursday from data showing a surge in US stockpiles and output.

The commodity had been rallying in recent weeks on the back of output cuts led by OPEC and Russia (OPEC+) unrest in Libya, the political crisis in Venezuela and hopes for the China-US trade talks.

But analysts pointed out that a would-be coup in Caracas has fizzled,<a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/pope-francis-urges-libya-peace-return-of-refugees-to-syria-212319&amp;sa=U&amp;ved=2ahUKEwiu87Cgyf7hAhWKiXAKHZj0ADEQFjADegQIEBAC&amp;usg=AOvVaw1iXxQDDcSjHcT--QBUxI0I"> tensions in Libya</a> have eased and the major producing countries appear to be rolling back on commitments to turn off the taps.

"Expectations are dwindling that OPEC+ will be able to deliver on any extension on production cuts," said Edward Moya, senior market analyst at OANDA.

"Even if they do show optimism at the next... meeting on May 17th, many will not expect an extended cut agreement to have the same effect as the first one.

Right now the path of least resistance for oil remains to the downside."

Trade talks questions&nbsp;

Hong Kong-listed CNOOC dived more than two per cent and PetroChina almost one per cent, while Woodside Petroleum shed 1.1 per cent in Sydney and Santos sank two per cent.

On broader stock markets, Hong Kong fell 0.7 per cent, Singapore gave up 0.5 per cent and Seoul sank 0.8 per cent with Wellington and Jakarta also lower.

However, Sydney and Taipei edged up slightly while Manila rallied 0.8 per cent.

Attention is now on the release Friday of US non-farm payrolls data that will provide a fresh snapshot of the world's top economy.

The figures come after the head of the Federal Reserve disappointed markets by saying recent weak inflation was "transitory", denting hopes the bank would consider an interest rate cut this year.

A strong jobs report would reinforce Jerome Powell's view that the economy was broadly healthy and all but kill off any chance of a cut in the near future.

There is also some unease after a report in Chinese media speculated that negotiators from China and the US had hit an impasse in the trade talks, citing the fact there were few details from their most recent talks in Beijing this week.

"Whilst these are just initial reports, clearly anything that suggests the US and China won’t agree a deal will rattle investors," said Neil Wilson, chief market analyst for Markets.com.

However, National Australia Bank pointed out that the comments contradicted reports by Politico and CNBC saying a deal could come as soon as next Friday.

Asian markets limped into the weekend Friday with energy firms again taking a hit from a plunge in oil prices, while investors look ahead to the release of key US jobs data later in the day.

Asian markets limped into the weekend Friday with energy firms again taking a hit from a plunge in oil prices, while investors look ahead to the release of key US jobs data later in the day. Observers said there may have been some caution setting in after a report suggesting the long-running trade talks between China and the United States had hit a snag. With optimism fuelled by a broadly strong earnings season beginning to fade, dealers are taking their cash off the table after a strong start to the year, while analysts noted May is a traditionally weak month for equities. Energy firms were once again in the firing line, dropping in tandem with crude prices owing to worries about rising supplies and falling demand. Brent has tumbled around 6.5 per cent and WTI is off more than seven per cent from six-month highs touched just last week, taking another hit Thursday from data showing a surge in US stockpiles and output. The commodity had been rallying in recent weeks on the back of output cuts led by OPEC and Russia (OPEC+) unrest in Libya, the political crisis in Venezuela and hopes for the China-US trade talks. But analysts pointed out that a would-be coup in Caracas has fizzled, tensions in Libya have eased and the major producing countries appear to be rolling back on commitments to turn off the taps. "Expectations are dwindling that OPEC+ will be able to deliver on any extension on production cuts," said Edward Moya, senior market analyst at OANDA. "Even if they do show optimism at the next... meeting on May 17th, many will not expect an extended cut agreement to have the same effect as the first one. Right now the path of least resistance for oil remains to the downside." Trade talks questions Hong Kong-listed CNOOC dived more than two per cent and PetroChina almost one per cent, while Woodside Petroleum shed 1.1 per cent in Sydney and Santos sank two per cent. On broader stock markets, Hong Kong fell 0.7 per cent, Singapore gave up 0.5 per cent and Seoul sank 0.8 per cent with Wellington and Jakarta also lower. However, Sydney and Taipei edged up slightly while Manila rallied 0.8 per cent. Attention is now on the release Friday of US non-farm payrolls data that will provide a fresh snapshot of the world's top economy. The figures come after the head of the Federal Reserve disappointed markets by saying recent weak inflation was "transitory", denting hopes the bank would consider an interest rate cut this year. A strong jobs report would reinforce Jerome Powell's view that the economy was broadly healthy and all but kill off any chance of a cut in the near future. There is also some unease after a report in Chinese media speculated that negotiators from China and the US had hit an impasse in the trade talks, citing the fact there were few details from their most recent talks in Beijing this week. "Whilst these are just initial reports, clearly anything that suggests the US and China won’t agree a deal will rattle investors," said Neil Wilson, chief market analyst for Markets.com. However, National Australia Bank pointed out that the comments contradicted reports by Politico and CNBC saying a deal could come as soon as next Friday.

Asian markets drag as oil prices plunge; investors await US jobs data

Oil prices hit their highest since November on Tuesday after <a href="https://www.wionews.com/world/us-oil-sanctions-principally-illegal-do-not-attach-any-value-to-it-iran-212672">Washington announced all waivers on imports of sanctions-hit Iranian oil</a> would end next week, pressuring importers to stop buying from Tehran and further tightening global supply.

Despite the move, spare capacity from other suppliers such as Saudi Arabia might be able to ensure oil markets cope with a cut in Iranian exports.

<a href="https://www.wionews.com/business-economy/world-stocks-splutter-as-oil-races-to-near-six-month-high-212872">Brent crude </a>futures were at $74.67 per barrel at 0855 GMT, up 63 cents or 0.85 per cent from their last close, after hitting their highest level since November at $74.70.

US West Texas Intermediate crude futures marked their strongest since October 2018 at $66.14 per barrel, up 59 cents or 0.9 per cent from their previous settlement.

The United States on Monday demanded that buyers of Iranian oil stop purchases by May 1 or face sanctions, ending six months of waivers which allowed Iran's eight biggest buyers, most of them in Asia, to continue importing limited volumes.

Before the reimposition of sanctions last year, Iran was the fourth-largest producer among the Organization of the Petroleum Exporting Countries at around 3 million barrels per day (bpd), but April exports have shrunk to below 1 million bpd, according to tanker data and industry sources.

US President Donald Trump is confident that Saudi Arabia and the United Arab Emirates will fulfil their pledges to make up the difference in oil markets, a US official told reporters.

Saudi Energy Minister Khalid al-Falih said on Monday that his country would "coordinate with fellow oil producers to ensure adequate supplies are available to consumers while ensuring the global oil market does not go out of balance".

Saudi Arabia is the world's top oil exporter and de facto leader of OPEC, which has led global supply cuts since the start of the year aimed at propping up crude prices.

The group is set to meet in June to discuss output policy.

Barclays bank said in a note that the US decision took many market participants by surprise and would "lead to a significant tightening of oil markets".

The move to increase pressure on Iran came amid other sanctions Washington has placed on Venezuela's oil exports.

US bank Goldman Sachs said an expected decline of 900,000 bpd in Iranian exports stood "versus immediately available and demonstrated spare capacity of 2.0 million bpd, which is set to grow further later this year".

Oil prices hit their highest since November on Tuesday after Washington announced all waivers on imports of sanctions-hit Iranian oil would end next week, pressuring importers to stop buying from Tehran and further tightening global supply.

Oil prices hit their highest since November on Tuesday after Washington announced all waivers on imports of sanctions-hit Iranian oil would end next week, pressuring importers to stop buying from Tehran and further tightening global supply. Despite the move, spare capacity from other suppliers such as Saudi Arabia might be able to ensure oil markets cope with a cut in Iranian exports. Brent crude futures were at $74.67 per barrel at 0855 GMT, up 63 cents or 0.85 per cent from their last close, after hitting their highest level since November at $74.70. US West Texas Intermediate crude futures marked their strongest since October 2018 at $66.14 per barrel, up 59 cents or 0.9 per cent from their previous settlement. The United States on Monday demanded that buyers of Iranian oil stop purchases by May 1 or face sanctions, ending six months of waivers which allowed Iran's eight biggest buyers, most of them in Asia, to continue importing limited volumes. Before the reimposition of sanctions last year, Iran was the fourth-largest producer among the Organization of the Petroleum Exporting Countries at around 3 million barrels per day (bpd), but April exports have shrunk to below 1 million bpd, according to tanker data and industry sources. US President Donald Trump is confident that Saudi Arabia and the United Arab Emirates will fulfil their pledges to make up the difference in oil markets, a US official told reporters. Saudi Energy Minister Khalid al-Falih said on Monday that his country would "coordinate with fellow oil producers to ensure adequate supplies are available to consumers while ensuring the global oil market does not go out of balance". Saudi Arabia is the world's top oil exporter and de facto leader of OPEC, which has led global supply cuts since the start of the year aimed at propping up crude prices. The group is set to meet in June to discuss output policy. Barclays bank said in a note that the US decision took many market participants by surprise and would "lead to a significant tightening of oil markets". The move to increase pressure on Iran came amid other sanctions Washington has placed on Venezuela's oil exports. US bank Goldman Sachs said an expected decline of 900,000 bpd in Iranian exports stood "versus immediately available and demonstrated spare capacity of 2.0 million bpd, which is set to grow further later this year".

Oil prices hit highest since November as US to tighten Iran sanctions

Oil prices inched up on Tuesday amid supply cuts by producer club OPEC and Russia, although the darkening economic outlook capped gains.

US West Texas Intermediate (WTI) crude futures were at $50.78 per barrel at 0041 GMT, up 27 cents, or 0.5 per cent, from their last settlement.

International Brent crude oil futures had yet to trade.

"The impact of OPEC+ cuts, Iran sanctions and lower month-on-month growth in US production should help to support oil prices from current levels," US bank JP Morgan said in a note.

The Middle East dominated producer club of the Organisation of the Petroleum Exporting Countries (OPEC) and some non-OPEC allies, including Russia, agreed in late 2018 to cut supply to rein in a global glut.

Meanwhile, the United States last November re-imposed sanctions against Iran's oil exports. Although Washington granted sanctions waivers to Iran's biggest oil customers, mostly in Asia, the Middle Eastern country's exports have plummeted since.

However, Tuesday's slight oil price increases came after crude futures fell by more than 2 per cent the previous session, dragged down by weak Chinese trade data which pointed to a global economic slowdown.

"Given the heightened macro risk anxiety, any support from supply-side correction could be limited," JP Morgan said.

Oil prices inched up on Tuesday amid supply cuts by producer club OPEC and Russia, although the darkening economic outlook capped gains. US West Texas Intermediate (WTI) crude futures were at $50.

Oil prices inched up on Tuesday amid supply cuts by producer club OPEC and Russia, although the darkening economic outlook capped gains. US West Texas Intermediate (WTI) crude futures were at $50.78 per barrel at 0041 GMT, up 27 cents, or 0.5 per cent, from their last settlement. International Brent crude oil futures had yet to trade. "The impact of OPEC+ cuts, Iran sanctions and lower month-on-month growth in US production should help to support oil prices from current levels," US bank JP Morgan said in a note. The Middle East dominated producer club of the Organisation of the Petroleum Exporting Countries (OPEC) and some non-OPEC allies, including Russia, agreed in late 2018 to cut supply to rein in a global glut. Meanwhile, the United States last November re-imposed sanctions against Iran's oil exports. Although Washington granted sanctions waivers to Iran's biggest oil customers, mostly in Asia, the Middle Eastern country's exports have plummeted since. However, Tuesday's slight oil price increases came after crude futures fell by more than 2 per cent the previous session, dragged down by weak Chinese trade data which pointed to a global economic slowdown. "Given the heightened macro risk anxiety, any support from supply-side correction could be limited," JP Morgan said.

Oil prices edge up on supply cuts, but weakening economic outlook caps gains

Oil prices fell on Friday, pulled down by OPEC's decision to delay a final decision on output cuts, awaiting support from non-OPEC heavyweight Russia.

International Brent crude oil futures fell below $60 per barrel early in the session, trading at $59.50 per barrel at 0144 GMT, down 56 cents, or 0.9 per cent from their last close.

US&nbsp;West Texas Intermediate (WTI) crude futures were at $51.24 per barrel, down 25 cents, or 0.5 per cent.

The declines came after crude slumped by almost 3 per cent the previous day, with the Organisation of the Petroleum Exporting Countries (OPEC) ending a meeting at its headquarters in Vienna, Austria, on Thursday without announcing a decision to cut crude supply, instead preparing to debate the matter on Friday.

"OPEC has decided to meet Friday again...(as) Russia remains the sticking point," said Stephen Innes, head of trading for Asia/Pacific at futures brokerage Oanda in Singapore.

Analysts still expect some form of supply reduction to be decided.

"We are beginning to witness the outline of the next iteration of production cuts, with OPEC conforming to cut its own production by around 1 million barrels per day, with the cartel lobbying non-OPEC members to contribute more," Japanese bank MUFG said in a note.

Supply surge, prince plunge

Oil producers have been hit by a 30-per cent plunge in crude prices since October as supply surges just as the demand outlook weakens amid a global economic slowdown.

Oil output from the world's biggest producers - OPEC, Russia and the United States - has increased by 3.3 million bpd since the end of 2017, to 56.38 million bpd, meeting almost 60 per cent of global consumption.

That increase alone is equivalent to the output of major OPEC producer the United Arab Emirates.

The surge is largely down to soaring U.S. crude oil production, which has jumped by 2.5 million bpd since early 2016 to a record 11.7 million bpd, making the United States the world's biggest oil producer.

As a result, the United States last week exported more crude oil and fuel than it imported for the first time on records going back to 1973, according to data released on Thursday.

Oil prices fell on Friday, pulled down by OPEC's decision to delay a final decision on output cuts, awaiting support from non-OPEC heavyweight Russia. International Brent crude oil futures fell below $60 per barrel early in the session, trading at $59.

Oil prices fell on Friday, pulled down by OPEC's decision to delay a final decision on output cuts, awaiting support from non-OPEC heavyweight Russia. International Brent crude oil futures fell below $60 per barrel early in the session, trading at $59.50 per barrel at 0144 GMT, down 56 cents, or 0.9 per cent from their last close. US West Texas Intermediate (WTI) crude futures were at $51.24 per barrel, down 25 cents, or 0.5 per cent. The declines came after crude slumped by almost 3 per cent the previous day, with the Organisation of the Petroleum Exporting Countries (OPEC) ending a meeting at its headquarters in Vienna, Austria, on Thursday without announcing a decision to cut crude supply, instead preparing to debate the matter on Friday. "OPEC has decided to meet Friday again...(as) Russia remains the sticking point," said Stephen Innes, head of trading for Asia/Pacific at futures brokerage Oanda in Singapore. Analysts still expect some form of supply reduction to be decided. "We are beginning to witness the outline of the next iteration of production cuts, with OPEC conforming to cut its own production by around 1 million barrels per day, with the cartel lobbying non-OPEC members to contribute more," Japanese bank MUFG said in a note. Supply surge, prince plunge Oil producers have been hit by a 30-per cent plunge in crude prices since October as supply surges just as the demand outlook weakens amid a global economic slowdown. Oil output from the world's biggest producers - OPEC, Russia and the United States - has increased by 3.3 million bpd since the end of 2017, to 56.38 million bpd, meeting almost 60 per cent of global consumption. That increase alone is equivalent to the output of major OPEC producer the United Arab Emirates. The surge is largely down to soaring U.S. crude oil production, which has jumped by 2.5 million bpd since early 2016 to a record 11.7 million bpd, making the United States the world's biggest oil producer. As a result, the United States last week exported more crude oil and fuel than it imported for the first time on records going back to 1973, according to data released on Thursday.

Oil drops as OPEC makes supply cut dependent on Russian support

OPEC will meet with 10 partner countries, including Russia, on Friday to try to thrash out an agreement on oil production cuts, a day after the group's members failed to reach a deal.

The oil cartel had been expected to sign off on cuts to stem a plunge in oil prices at a meeting on Thursday, but it broke up without an accord.

"No, I am not confident" about the chances of a deal, Saudi oil minister Khalid Al-Falih told reporters after a long day of <a href="http://www.wionews.com/business-economy/opec-oil-cuts-at-risk-as-russia-yet-to-commit-181925">negotiations at OPEC</a>'s headquarters in Vienna.

However, OPEC and its non-cartel members -- who account for around half of global output -- agree on one thing: a glut on the market has led to oil prices falling by more than 30 per cent in the space of two months.

However, the major players among the oil giants all have their own reasons to look to others to act.

For Russia, which leads the non-member countries in the so-called OPEC+ alliance, "it's much more difficult to cut than for other countries, because of our climatic conditions," Russian Energy Minister Alexander Novak said on Thursday in Saint Petersburg.

Saudi Arabia, meanwhile, has to bear in mind pressure from the US, after President <a href="http://www.wionews.com/world/opec-meets-as-trump-calls-for-oil-taps-to-be-kept-on-181837">Donald Trump</a> demanded in a tweet on Wednesday that OPEC not boost prices.

In addition, the kingdom's diplomatic position has been weakened by the furore over the killing of journalist Jamal Khashoggi.

Though al-Falih insisted that "we don't need permission from anyone to cut" production, the figure of a million barrels put forward by Saudi Arabia was lower than the reduction expected by the markets.

Market jitters

Iran, Saudi Arabia's geopolitical rival and OPEC's third-largest producer, suggested it was in favour of deeper cuts -- while asking to be exempted from them because of the effects of US sanctions targeting its oil sector.

The thorny question of exemptions, which will also be sought by Venezuela and Libya according to the Bloomberg news agency, could be crucial for Friday's talks.

The amount and the timetable of any cuts imposed by Russia will also be a key sticking point.

Iraqi oil minister Thamir Abbas Al Ghadhban said he was still "hopeful" an agreement could be reached during talks on Friday.

However, markets displayed doubts with fresh falls in oil prices sparking a sell-off of stocks by investors.

The price of a barrel of Brent, the European benchmark, sank below the symbolic $60 mark because the reduction of around one million barrels floated by Saudi Arabia was below what markets had been expecting.

Analysts say that the details of any agreement will be key in determining what happens next to prices.

"If it's one million (barrels) excluding Iran, then it's in fact 1.2, 1.3, which should be supportive of price," Abhishek Deshpande, an oil analyst at JP Morgan, told AFP.

This would be because the markets would price in the drop in Iran's production expected due to sanctions.

"But if (the agreement) is including Iran, that's not enough," Deshpande added.

In June, OPEC and its partners agreed to allow for a boost in production by Saudi Arabia and Russia to compensate for the expected losses in production from Iran after the US dramatically withdrew from the Iran nuclear deal in May and vowed to re-impose sanctions.

However, the US then granted temporary waivers to eight allies to allow them to carry on importing Iranian oil, contributing to a plunge in oil prices which wiped out the gains seen since early 2017.

OPEC will meet with 10 partner countries, including Russia, on Friday to try to thrash out an agreement on oil production cuts, a day after the group's members failed to reach a deal.

OPEC will meet with 10 partner countries, including Russia, on Friday to try to thrash out an agreement on oil production cuts, a day after the group's members failed to reach a deal. The oil cartel had been expected to sign off on cuts to stem a plunge in oil prices at a meeting on Thursday, but it broke up without an accord. "No, I am not confident" about the chances of a deal, Saudi oil minister Khalid Al-Falih told reporters after a long day of negotiations at OPEC's headquarters in Vienna. However, OPEC and its non-cartel members -- who account for around half of global output -- agree on one thing: a glut on the market has led to oil prices falling by more than 30 per cent in the space of two months. However, the major players among the oil giants all have their own reasons to look to others to act. For Russia, which leads the non-member countries in the so-called OPEC+ alliance, "it's much more difficult to cut than for other countries, because of our climatic conditions," Russian Energy Minister Alexander Novak said on Thursday in Saint Petersburg. Saudi Arabia, meanwhile, has to bear in mind pressure from the US, after President Donald Trump demanded in a tweet on Wednesday that OPEC not boost prices. In addition, the kingdom's diplomatic position has been weakened by the furore over the killing of journalist Jamal Khashoggi. Though al-Falih insisted that "we don't need permission from anyone to cut" production, the figure of a million barrels put forward by Saudi Arabia was lower than the reduction expected by the markets. Market jitters Iran, Saudi Arabia's geopolitical rival and OPEC's third-largest producer, suggested it was in favour of deeper cuts -- while asking to be exempted from them because of the effects of US sanctions targeting its oil sector. The thorny question of exemptions, which will also be sought by Venezuela and Libya according to the Bloomberg news agency, could be crucial for Friday's talks. The amount and the timetable of any cuts imposed by Russia will also be a key sticking point. Iraqi oil minister Thamir Abbas Al Ghadhban said he was still "hopeful" an agreement could be reached during talks on Friday. However, markets displayed doubts with fresh falls in oil prices sparking a sell-off of stocks by investors. The price of a barrel of Brent, the European benchmark, sank below the symbolic $60 mark because the reduction of around one million barrels floated by Saudi Arabia was below what markets had been expecting. Analysts say that the details of any agreement will be key in determining what happens next to prices. "If it's one million (barrels) excluding Iran, then it's in fact 1.2, 1.3, which should be supportive of price," Abhishek Deshpande, an oil analyst at JP Morgan, told AFP. This would be because the markets would price in the drop in Iran's production expected due to sanctions. "But if (the agreement) is including Iran, that's not enough," Deshpande added. In June, OPEC and its partners agreed to allow for a boost in production by Saudi Arabia and Russia to compensate for the expected losses in production from Iran after the US dramatically withdrew from the Iran nuclear deal in May and vowed to re-impose sanctions. However, the US then granted temporary waivers to eight allies to allow them to carry on importing Iranian oil, contributing to a plunge in oil prices which wiped out the gains seen since early 2017.

OPEC and partners face steep challenge to reach oil cut deal

OPEC members and other oil-producing countries gather in Vienna on Thursday to discuss cutting output to prop up prices, as <a href="http://www.wionews.com/world/hopefully-opec-will-be-keeping-oil-flows-as-is-world-does-not-need-higher-oil-prices-trump-181746">US President Donald Trump urged them to keep the faucets open</a>.&nbsp;

Oil ministers from 20 or so countries busily criss-crossed the Austrian capital on Wednesday for preparatory negotiations ahead of the two-day meet at the headquarters of the Organization of Petroleum Exporting Countries.&nbsp;

Delegates remained relatively tight-lipped about what had been agreed in a flurry of closed-door meetings in some of Vienna's most exclusive hotels, even as Trump took to Twitter to urge producers to keep pumping to ensure that the commodity remains affordable.

"Hopefully <a href="http://www.wionews.com/business-economy/opec-works-on-deal-to-cut-output-as-russia-plays-tough-181408">OPEC </a>will be keeping oil flows as is, not restricted. The World does not want to see, or need, higher oil prices!" said Trump, who has in the past repeatedly accused the cartel of keeping prices artificially high.&nbsp;

At the end of 2016, OPEC's regular members joined forces with other countries outside the cartel to jointly scale back output in a bid to reduce a glut supply that was weighing on prices at the time.

The coordinated move -- which has since been extended -- stimulated a long rally in oil prices right up until October 2018.&nbsp;

Over the past two months, however, prices have plunged again and a barrel of Brent crude, the European benchmark, currently stands at around $60.

Cuts on the cards?

In the light of this, the so-called OPEC+ -- which accounts for more than half of the world's oil -- has come to Vienna to discuss renewing the pact or perhaps even throttling output still further.

All the signals suggested that more reductions in output are on the cards, despite the pressure from Trump, who argues that closing off the taps could choke off the economy, which needs affordable oil to keep running.

"Yes, we will have a cut," said Oman's oil minister Mohammed bin Hamad Al Rumhi. "We will have time to sort out the details by tomorrow (Thursday)."&nbsp;

His Nigerian counterpart also suggested that a reduction in output was possible.

However, OPEC's third-biggest producer Iran called to be exempted from any such measures.&nbsp;

Oil minister Bijan Namdar Zanganeh said on Wednesday evening as he arrived in Vienna: "We must be excluded from any decision to cut production as long as illegal US sanctions are not lifted."

Stephen Brennock of the London-based brokerage PVM Oil, said that additional cuts were "a virtual shoo-in."

OPEC inaction "would trigger a sell-off frenzy of biblical proportions and safeguard the return of a global oil glut. The only unknown at this stage is the volume of production cuts," he said.

OPEC kingpin Saudi Arabia, in particular, finds itself in a delicate position in the wake of the murder of opposition journalist Jamal Khashoggi.

Trump has continued to support the kingdom, despite worldwide outrage over the murder.

Riyadh, which is itself in favour of higher prices, will therefore be keen not to incur the US leader's wrath.&nbsp;

"The big unknown is how President Trump will react to any production cuts," said analysts at ING.

Delicate situation

"The concern for the market is that the US administration will use the murder of journalist Jamal Khashoggi as leverage," they argued.

"While we believe that President Trump will be reluctant to escalate the situation, the Saudis are likely to choose the wording of any statement with regards to cuts very carefully."&nbsp;

UBS analyst Giovanni Staunovo pointed out that US shale producers also need oil prices to be high to ensure the profitability of their operations.&nbsp;

Negotiations between the OPEC members could be fraught, however, as some members feel that Saudi Arabia wields too much clout in setting policy.

Iran has accused Saudi Arabia of being in thrall to the US.&nbsp;

In a surprise move on Monday, Qatar -- which has been an OPEC member since 1961 -- said it would quit the cartel next month in order to focus on gas production.&nbsp;

Doha accounts for only around two per cent of OPEC output.

Qatar minister Saad Sherida Al-Kaabi said he had met with a number of other OPEC ministers, but not his Saudi Arabian colleague.&nbsp;

"I don't think they want to meet me. They are blockading our country," he told journalists.

Qatar has been isolated by a group of countries led by Saudi Arabia since June 2017, in the worst political fallout between the energy-rich Gulf powers. &nbsp;

OPEC members and other oil-producing countries gather in Vienna on Thursday to discuss cutting output to prop up prices, as US President Donald Trump urged them to keep the faucets open.

OPEC members and other oil-producing countries gather in Vienna on Thursday to discuss cutting output to prop up prices, as US President Donald Trump urged them to keep the faucets open. Oil ministers from 20 or so countries busily criss-crossed the Austrian capital on Wednesday for preparatory negotiations ahead of the two-day meet at the headquarters of the Organization of Petroleum Exporting Countries. Delegates remained relatively tight-lipped about what had been agreed in a flurry of closed-door meetings in some of Vienna's most exclusive hotels, even as Trump took to Twitter to urge producers to keep pumping to ensure that the commodity remains affordable. "Hopefully OPEC will be keeping oil flows as is, not restricted. The World does not want to see, or need, higher oil prices!" said Trump, who has in the past repeatedly accused the cartel of keeping prices artificially high. At the end of 2016, OPEC's regular members joined forces with other countries outside the cartel to jointly scale back output in a bid to reduce a glut supply that was weighing on prices at the time. The coordinated move -- which has since been extended -- stimulated a long rally in oil prices right up until October 2018. Over the past two months, however, prices have plunged again and a barrel of Brent crude, the European benchmark, currently stands at around $60. Cuts on the cards? In the light of this, the so-called OPEC+ -- which accounts for more than half of the world's oil -- has come to Vienna to discuss renewing the pact or perhaps even throttling output still further. All the signals suggested that more reductions in output are on the cards, despite the pressure from Trump, who argues that closing off the taps could choke off the economy, which needs affordable oil to keep running. "Yes, we will have a cut," said Oman's oil minister Mohammed bin Hamad Al Rumhi. "We will have time to sort out the details by tomorrow (Thursday)." His Nigerian counterpart also suggested that a reduction in output was possible. However, OPEC's third-biggest producer Iran called to be exempted from any such measures. Oil minister Bijan Namdar Zanganeh said on Wednesday evening as he arrived in Vienna: "We must be excluded from any decision to cut production as long as illegal US sanctions are not lifted." Stephen Brennock of the London-based brokerage PVM Oil, said that additional cuts were "a virtual shoo-in." OPEC inaction "would trigger a sell-off frenzy of biblical proportions and safeguard the return of a global oil glut. The only unknown at this stage is the volume of production cuts," he said. OPEC kingpin Saudi Arabia, in particular, finds itself in a delicate position in the wake of the murder of opposition journalist Jamal Khashoggi. Trump has continued to support the kingdom, despite worldwide outrage over the murder. Riyadh, which is itself in favour of higher prices, will therefore be keen not to incur the US leader's wrath. "The big unknown is how President Trump will react to any production cuts," said analysts at ING. Delicate situation "The concern for the market is that the US administration will use the murder of journalist Jamal Khashoggi as leverage," they argued. "While we believe that President Trump will be reluctant to escalate the situation, the Saudis are likely to choose the wording of any statement with regards to cuts very carefully." UBS analyst Giovanni Staunovo pointed out that US shale producers also need oil prices to be high to ensure the profitability of their operations. Negotiations between the OPEC members could be fraught, however, as some members feel that Saudi Arabia wields too much clout in setting policy. Iran has accused Saudi Arabia of being in thrall to the US. In a surprise move on Monday, Qatar -- which has been an OPEC member since 1961 -- said it would quit the cartel next month in order to focus on gas production. Doha accounts for only around two per cent of OPEC output. Qatar minister Saad Sherida Al-Kaabi said he had met with a number of other OPEC ministers, but not his Saudi Arabian colleague. "I don't think they want to meet me. They are blockading our country," he told journalists. Qatar has been isolated by a group of countries led by Saudi Arabia since June 2017, in the worst political fallout between the energy-rich Gulf powers.

OPEC meets as Trump calls for oil taps to be kept on

OPEC and its allies are working towards a deal to reduce oil output by at least 1.3 million barrels per day, four sources said, adding that Russia's resistance to a significant production cut was so far the main stumbling block.

OPEC meets on Thursday in Vienna, followed by talks with allies such as Russia on Friday, amid a drop in crude prices caused by global economic weakness and concerns about an oil glut due largely to a rise in US&nbsp;production.

The producer group's de facto leader, Saudi Arabia, has indicated a need for steep reductions in output from January but has come under pressure from US&nbsp;President Donald Trump to help support the world economy with lower oil prices.

Possibly complicating any OPEC decision is the crisis around the killing of journalist Jamal Khashoggi at the Saudi consulate in Istanbul in October. Trump has backed Saudi Crown Prince Mohammed bin Salman despite calls from many US&nbsp;politicians to impose stiff sanctions on Riyadh.

The sources, three from the Organization of the Petroleum Exporting Countries and one from a non-OPEC producer, said the meeting was taking place in a difficult environment and that Russia's position would be key in reaching a deal.

"Russia is playing tough," one of the OPEC sources said.

Russian sources have indicated the country could contribute some 140,000 bpd to a reduction, but Middle East-dominated OPEC insists Moscow cut by 250,000-300,000 bpd.

Two OPEC sources said talks were focusing on a pro-rata cut of 3-3.5 per cent from October output levels, with no exemptions for any member.

"Until those main criteria are met, OPEC could endure a fall in oil prices for a while if it opted to delay a decision on a cut for a month or two," one of the sources said.

"OPEC can always meet again in February and decide on a cut then. Those who were not able or willing to cooperate will be wanting to cut then," the source added.

Qatar said on Monday it would quit OPEC to focus on gas in a swipe at Saudi Arabia, which is trying to show unity in tackling the slide in oil prices.

OPEC and its allies are working towards a deal to reduce oil output by at least 1.3 million barrels per day, four sources said, adding that Russia's resistance to a significant production cut was so far the main stumbling block.

OPEC and its allies are working towards a deal to reduce oil output by at least 1.3 million barrels per day, four sources said, adding that Russia's resistance to a significant production cut was so far the main stumbling block. OPEC meets on Thursday in Vienna, followed by talks with allies such as Russia on Friday, amid a drop in crude prices caused by global economic weakness and concerns about an oil glut due largely to a rise in US production. The producer group's de facto leader, Saudi Arabia, has indicated a need for steep reductions in output from January but has come under pressure from US President Donald Trump to help support the world economy with lower oil prices. Possibly complicating any OPEC decision is the crisis around the killing of journalist Jamal Khashoggi at the Saudi consulate in Istanbul in October. Trump has backed Saudi Crown Prince Mohammed bin Salman despite calls from many US politicians to impose stiff sanctions on Riyadh. The sources, three from the Organization of the Petroleum Exporting Countries and one from a non-OPEC producer, said the meeting was taking place in a difficult environment and that Russia's position would be key in reaching a deal. "Russia is playing tough," one of the OPEC sources said. Russian sources have indicated the country could contribute some 140,000 bpd to a reduction, but Middle East-dominated OPEC insists Moscow cut by 250,000-300,000 bpd. Two OPEC sources said talks were focusing on a pro-rata cut of 3-3.5 per cent from October output levels, with no exemptions for any member. "Until those main criteria are met, OPEC could endure a fall in oil prices for a while if it opted to delay a decision on a cut for a month or two," one of the sources said. "OPEC can always meet again in February and decide on a cut then. Those who were not able or willing to cooperate will be wanting to cut then," the source added. Qatar said on Monday it would quit OPEC to focus on gas in a swipe at Saudi Arabia, which is trying to show unity in tackling the slide in oil prices.

OPEC works on deal to cut output, as Russia plays tough

Oil prices jumped by more than 5 per cent on Monday after the <a href="http://www.wionews.com/world/trump-and-china-called-a-truce-in-the-trade-war-now-what-181070">United States and China</a> agreed to a 90-day truce in a trade dispute, and ahead of a meeting this week of the producer club OPEC that is expected to cut supply.

US&nbsp;light crude oil rose $2.92 a barrel to a high of $53.85, up 5.7 per cent, before easing to around $53.00 by 0930 GMT. Brent crude rose 5.3 per cent or $3.14 to a high of $62.60 and was last trading around $61.60.

"From Argentina to Alberta, the oil market news is about supply curtailments," said Norbert Rücker, head of commodity research at Swiss bank Julius Baer. "A brightening market mood will likely extend today's price rally in the very near term."

<a href="http://www.wionews.com/world/us-china-agree-to-trade-war-ceasefire-more-talks-180930">China and the United States</a> agreed during a weekend meeting in Argentina of the Group of 20 leading economies not to impose additional trade tariffs for at least 90 days while they hold talks to resolve existing disputes.

The trade war between the world's two biggest economies has weighed heavily on global trade, sparking concerns of an economic slowdown.

Crude oil has not been included in the list of products facing import tariffs, but traders said the positive sentiment of the truce was also driving crude markets.

Oil also received support from an announcement by the Canadian province of Alberta that it would force producers to cut output by 8.7 per cent, or 325,000 barrels per day (bpd), to deal with a pipeline bottleneck that has led to crude building up in storage.

The Organization of the Petroleum Exporting Countries meets on Dec. 6 to decide output policy. The group, along with non-OPEC member Russia, is expected to announce cuts aimed at reining in a production surplus that has pulled down crude prices by around a third since October.

"Markets are expecting to see a substantial production cut after Russian President Vladimir Putin said his country's cooperation on oil supplies with Saudi Arabia would continue," said Hussein Sayed, chief market strategist at brokerage FXTM.

Within OPEC, Qatar said on Monday it would leave the producer club in January.

Qatar's oil production is only around 600,000 bpd, but it is the world's biggest exporter of liquefied natural gas (LNG).

The Gulf state has also been at loggerheads with its much bigger neighbour Saudi Arabia, the de facto OPEC leader.

Outside OPEC, Russian oil output stood at 11.37 million bpd in November, down from a post-Soviet record of 11.41 million bpd it reached in October, Energy Ministry data showed on Sunday.

Meanwhile, oil producers in the United States continue to churn out record amounts of oil, with crude output at an unprecedented level of more than 11.5 million bpd.

With drilling activity still high, most analysts expect US&nbsp;oil production to rise further in 2019.

Oil prices jumped by more than 5 per cent on Monday after the United States and China agreed to a 90-day truce in a trade dispute, and ahead of a meeting this week of the producer club OPEC that is expected to cut supply.

Oil prices jumped by more than 5 per cent on Monday after the United States and China agreed to a 90-day truce in a trade dispute, and ahead of a meeting this week of the producer club OPEC that is expected to cut supply. US light crude oil rose $2.92 a barrel to a high of $53.85, up 5.7 per cent, before easing to around $53.00 by 0930 GMT. Brent crude rose 5.3 per cent or $3.14 to a high of $62.60 and was last trading around $61.60. "From Argentina to Alberta, the oil market news is about supply curtailments," said Norbert Rücker, head of commodity research at Swiss bank Julius Baer. "A brightening market mood will likely extend today's price rally in the very near term." China and the United States agreed during a weekend meeting in Argentina of the Group of 20 leading economies not to impose additional trade tariffs for at least 90 days while they hold talks to resolve existing disputes. The trade war between the world's two biggest economies has weighed heavily on global trade, sparking concerns of an economic slowdown. Crude oil has not been included in the list of products facing import tariffs, but traders said the positive sentiment of the truce was also driving crude markets. Oil also received support from an announcement by the Canadian province of Alberta that it would force producers to cut output by 8.7 per cent, or 325,000 barrels per day (bpd), to deal with a pipeline bottleneck that has led to crude building up in storage. The Organization of the Petroleum Exporting Countries meets on Dec. 6 to decide output policy. The group, along with non-OPEC member Russia, is expected to announce cuts aimed at reining in a production surplus that has pulled down crude prices by around a third since October. "Markets are expecting to see a substantial production cut after Russian President Vladimir Putin said his country's cooperation on oil supplies with Saudi Arabia would continue," said Hussein Sayed, chief market strategist at brokerage FXTM. Within OPEC, Qatar said on Monday it would leave the producer club in January. Qatar's oil production is only around 600,000 bpd, but it is the world's biggest exporter of liquefied natural gas (LNG). The Gulf state has also been at loggerheads with its much bigger neighbour Saudi Arabia, the de facto OPEC leader. Outside OPEC, Russian oil output stood at 11.37 million bpd in November, down from a post-Soviet record of 11.41 million bpd it reached in October, Energy Ministry data showed on Sunday. Meanwhile, oil producers in the United States continue to churn out record amounts of oil, with crude output at an unprecedented level of more than 11.5 million bpd. With drilling activity still high, most analysts expect US oil production to rise further in 2019.

Ahead of OPEC meeting, oil prices jump 5%

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