Natural gas is expected to overtake coal as the world's second-largest energy source after oil by 2030 due to a drive to cut air pollution and the rise in liquefied natural gas (LNG) use, the International Energy Agency (IEA) said on Tuesday,

The Paris-based IEA said in its World Energy Outlook 2018 that energy demand would grow by more than a quarter between 2017 and 2040 assuming more efficient use of energy - but would rise by twice that much without such improvements.

Global gas demand would increase by 1.6 per cent a year to 2040 and would be 45 per cent higher by then than today, it said.

The estimates are based on the IEA's "New Policies Scenario" that takes into account legislation and policies to reduce emissions and fight climate change. They also assume more energy efficiencies in fuel use, buildings and other factors.

"Natural gas is the fastest growing fossil fuel in the New Policies Scenario, overtaking coal by 2030 to become the second-largest source of energy after oil," the report said.

China, already the world's biggest oil and coal importer, would soon become the largest importer of gas and net imports would approach the level of the European Union by 2040, the IEA said.

According to Reuters calculations, based on China's General Administration of Customs data, China has already overtaken Japan as the world's top natural gas importer.

Although China is the world's third-biggest user of natural gas behind the United States and Russia, it has to import about 40 per cent of its needs as local production cannot keep pace.

Emerging economies in Asia would account for about half of total global gas demand growth and their share of LNG imports would double to 60 per cent by 2040, the IEA report said.

"Although talk of a global gas market similar to that of oil is premature, LNG trade has expanded substantially in volume since 2010 and has reached previously isolated markets," it said.

LNG involves cooling gas to a liquid so it can transported by ship.

The United States would account for 40 per cent of total gas production growth to 2025, the IEA said, while other sources would take over as US shale gas output flattened and other nations started turning to unconventional methods of gas production, such as hydraulic fracturing or fracking.

Global electricity demand will grow 2.1 per cent a year, mostly driven by rising use in developing economies. Electricity will account for a quarter of energy used by end users such as consumers and industry by 2040, it said.

Coal and renewables will swap their positions in the power generation mix. The share of coal is forecast to fall from about 40 percent today to a quarter in 2040 while renewables would grow to just over 40 per cent from a quarter now.

Energy-related carbon dioxide emissions will continue to grow at a slow but steady pace to 2040. From 2017 levels, the IEA said CO2 emissions would rise by 10 per cent to 36 gigatonnes in 2040, mostly driven by growth in oil and gas.

This trajectory was "far out of step" with what scientific knowledge says would be required to tackle climate change, the report said.

Natural gas is expected to overtake coal as the world's second-largest energy source after oil by 2030 due to a drive to cut air pollution and the rise in liquefied natural gas (LNG) use, the International Energy Agency (IEA) said on Tuesday, The Paris-based IEA said in its World Energy Outlook 2018 that energy demand would grow by more than a quarter between 2017 and 2040 assuming more efficient use of energy - but would rise by twice that much without such improvements.

Natural gas is expected to overtake coal as the world's second-largest energy source after oil by 2030 due to a drive to cut air pollution and the rise in liquefied natural gas (LNG) use, the International Energy Agency (IEA) said on Tuesday, The Paris-based IEA said in its World Energy Outlook 2018 that energy demand would grow by more than a quarter between 2017 and 2040 assuming more efficient use of energy - but would rise by twice that much without such improvements. Global gas demand would increase by 1.6 per cent a year to 2040 and would be 45 per cent higher by then than today, it said. The estimates are based on the IEA's "New Policies Scenario" that takes into account legislation and policies to reduce emissions and fight climate change. They also assume more energy efficiencies in fuel use, buildings and other factors. "Natural gas is the fastest growing fossil fuel in the New Policies Scenario, overtaking coal by 2030 to become the second-largest source of energy after oil," the report said. China, already the world's biggest oil and coal importer, would soon become the largest importer of gas and net imports would approach the level of the European Union by 2040, the IEA said. According to Reuters calculations, based on China's General Administration of Customs data, China has already overtaken Japan as the world's top natural gas importer. Although China is the world's third-biggest user of natural gas behind the United States and Russia, it has to import about 40 per cent of its needs as local production cannot keep pace. Emerging economies in Asia would account for about half of total global gas demand growth and their share of LNG imports would double to 60 per cent by 2040, the IEA report said. "Although talk of a global gas market similar to that of oil is premature, LNG trade has expanded substantially in volume since 2010 and has reached previously isolated markets," it said. LNG involves cooling gas to a liquid so it can transported by ship. The United States would account for 40 per cent of total gas production growth to 2025, the IEA said, while other sources would take over as US shale gas output flattened and other nations started turning to unconventional methods of gas production, such as hydraulic fracturing or fracking. Global electricity demand will grow 2.1 per cent a year, mostly driven by rising use in developing economies. Electricity will account for a quarter of energy used by end users such as consumers and industry by 2040, it said. Coal and renewables will swap their positions in the power generation mix. The share of coal is forecast to fall from about 40 percent today to a quarter in 2040 while renewables would grow to just over 40 per cent from a quarter now. Energy-related carbon dioxide emissions will continue to grow at a slow but steady pace to 2040. From 2017 levels, the IEA said CO2 emissions would rise by 10 per cent to 36 gigatonnes in 2040, mostly driven by growth in oil and gas. This trajectory was "far out of step" with what scientific knowledge says would be required to tackle climate change, the report said.

Natural gas to overtake coal as world's second largest energy source: IEA

Oil prices climbed on Monday as the world's biggest supplier&nbsp;Saudi&nbsp;Arabia announced plans to cut production, in the face of fears of oversupply.

Saudi&nbsp;Arabia's energy minister said Monday that oil-producing nations should cut output by one million barrels per day to re-balance the market.

Khalid al-Falih's comments follow a meeting in Abu Dhabi at the weekend, where the OPEC group and its allies had already started laying the groundwork to cut supply in 2019, reversing an almost year-long expansion.

Saudi&nbsp;Arabia had said the kingdom would cut its production by 500,000 barrels per day.

Oil prices advanced steadily through Monday, with both Brent Crude and West Texas Intermediate (WTI) seeing gains of more than a dollar per barrel.

"In the short term this is a positive for oil, but we must question the impact longer term unless it’s the sign of more to come from OPEC," said Neil Wilson, chief market analyst at&nbsp;Markets.com.&nbsp;

"Saudi&nbsp;Arabia cannot act alone though -- realistically it needs to pull together OPEC allies, and critically Russia, to curb production if it wants prices to hold. The language from Russia suggests it is not ready to follow the Saudis yet."

Last week, higher US energy stockpiles drove WTI crude to its longest losing streak in more than 30 years, while Brent Crude dropped below US $70 a barrel for the first time since April.

China focus&nbsp;

In equities, Asian markets were largely flat Monday following lacklustre US trading at the end of last week and&nbsp;nervousness over Chinese growth.

Hong Kong and Tokyo hovered between positive and negative territory, both closing up 0.1 per cent.&nbsp;

Taiwan was flat, Seoul slid 0.3 per cent, and Sydney closed up 0.3 per cent.

"Asia stocks are trading tentatively as global growth worries and uncertainty over the course for oil prices weighs on sentiment," said Stephen Innes, head of trading for Asia-Pacific at OANDA.

"Investors are... left to ponder if this is the beginning of a more definitive downturn or just another wobble."

China's economy is in the spotlight this week, with key monthly data expected Wednesday and stocks tumbling last week on mounting concerns of a slowdown.

Chinese e-commerce giant Alibaba took a record US $30.7 billion in orders on Sunday during its annual "Singles Day" shopping frenzy.&nbsp;

However sales growth slowed to 27 per cent this year from 39 per cent in 2017, adding to mounting concerns over the outlook for the Asian powerhouse.

"But where we can get some comfort from this number is that Chinese consumers are slowing, not collapsing," Junheng Li, founder of JL Warren Capital LLC, told Bloomberg News.

Major retailers got a Single's Day lift in China, with Suning.com gaining 1.5 per cent and Shanghai Bailian Group climbing 2.2 per cent.

China's banking stocks were mixed however after the government gave new guidance on requirements for banks to lend to private companies. Last week bank shares dropped as investors balked at what were seen as unprecedented government demands on lenders.

Industrial &amp; Commercial Bank of China (ICBC), the Bank of China and the China Merchants Banks all started the week with gains.

In Europe, where pressure is mounting on British Prime Minister Theresa May over her Brexit plan, the FTSE opened up 0.6 percent in early trading.

Oil prices climbed on Monday as the world's biggest supplier Saudi Arabia announced plans to cut production, in the face of fears of oversupply. Saudi Arabia's energy minister said Monday that oil-producing nations should cut output by one million barrels per day to re-balance the market.

Oil prices climbed on Monday as the world's biggest supplier Saudi Arabia announced plans to cut production, in the face of fears of oversupply. Saudi Arabia's energy minister said Monday that oil-producing nations should cut output by one million barrels per day to re-balance the market. Khalid al-Falih's comments follow a meeting in Abu Dhabi at the weekend, where the OPEC group and its allies had already started laying the groundwork to cut supply in 2019, reversing an almost year-long expansion. Saudi Arabia had said the kingdom would cut its production by 500,000 barrels per day. Oil prices advanced steadily through Monday, with both Brent Crude and West Texas Intermediate (WTI) seeing gains of more than a dollar per barrel. "In the short term this is a positive for oil, but we must question the impact longer term unless it’s the sign of more to come from OPEC," said Neil Wilson, chief market analyst at Markets.com. "Saudi Arabia cannot act alone though -- realistically it needs to pull together OPEC allies, and critically Russia, to curb production if it wants prices to hold. The language from Russia suggests it is not ready to follow the Saudis yet." Last week, higher US energy stockpiles drove WTI crude to its longest losing streak in more than 30 years, while Brent Crude dropped below US $70 a barrel for the first time since April. China focus In equities, Asian markets were largely flat Monday following lacklustre US trading at the end of last week and nervousness over Chinese growth. Hong Kong and Tokyo hovered between positive and negative territory, both closing up 0.1 per cent. Taiwan was flat, Seoul slid 0.3 per cent, and Sydney closed up 0.3 per cent. "Asia stocks are trading tentatively as global growth worries and uncertainty over the course for oil prices weighs on sentiment," said Stephen Innes, head of trading for Asia-Pacific at OANDA. "Investors are... left to ponder if this is the beginning of a more definitive downturn or just another wobble." China's economy is in the spotlight this week, with key monthly data expected Wednesday and stocks tumbling last week on mounting concerns of a slowdown. Chinese e-commerce giant Alibaba took a record US $30.7 billion in orders on Sunday during its annual "Singles Day" shopping frenzy. However sales growth slowed to 27 per cent this year from 39 per cent in 2017, adding to mounting concerns over the outlook for the Asian powerhouse. "But where we can get some comfort from this number is that Chinese consumers are slowing, not collapsing," Junheng Li, founder of JL Warren Capital LLC, told Bloomberg News. Major retailers got a Single's Day lift in China, with Suning.com gaining 1.5 per cent and Shanghai Bailian Group climbing 2.2 per cent. China's banking stocks were mixed however after the government gave new guidance on requirements for banks to lend to private companies. Last week bank shares dropped as investors balked at what were seen as unprecedented government demands on lenders. Industrial & Commercial Bank of China (ICBC), the Bank of China and the China Merchants Banks all started the week with gains. In Europe, where pressure is mounting on British Prime Minister Theresa May over her Brexit plan, the FTSE opened up 0.6 percent in early trading.

Oil price climbs after Saudi Arabia announces production cuts

Oil prices extended gains into a fourth session on Wednesday, buoyed as industry data showed a surprise decline in US&nbsp;crude inventories and as geopolitical tensions over the disappearance of a prominent Saudi journalist&nbsp;Jamal Khashoggi stoked supply worries.

<a href="http://www.wionews.com/west-asia/trump-thinks-he-can-bring-down-oil-prices-by-bullying-iran-minister-zanganeh-171717">Also Read: Trump thinks he can bring down oil prices by bullying, says Iran minister Zanganeh</a>

US&nbsp;West Texas Intermediate crude was up 15 cents, or 0.2 per cent, at $72.07 a barrel by 0255 GMT on Wednesday, having settled up 14 cents.

Brent crude was up 12 cents, or 0.2 per cent, at $81.53 a barrel, after settling up 63 cents the session before. The global benchmark, which hit a more than two-week low late last week as equity markets dropped, is trading around $5 below a four-year high of $86.74 marked on October&nbsp;3rd.

US&nbsp;crude inventories fell by 2.1 million barrels last week, compared with analyst expectations for a build of 2.2 million barrels, American Petroleum Institute data showed after Tuesday's settlement.

"The market is reacting to the unexpected decline as inventories tend to rise at this time of year," said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting in Tokyo, adding that anxieties about the outlook for the global economy were capping gains.

US&nbsp;gasoline stocks dropped by a larger-than-expected 3.4 million barrels, while distillate fuel stockpiles declined by a smaller-than-expected 246,000 barrels, the API data showed.

Inventory data from the US&nbsp;Energy Department's Energy Information Administration is due at 1430 GMT on Wednesday.

US&nbsp;President Donald Trump gave Saudi Arabia the benefit of the doubt in the disappearance of journalist Jamal Khashoggi even as US&nbsp;lawmakers pointed the finger at the Saudi leadership and Western pressure mounted on Riyadh to provide answers.

Jim Ritterbusch, president of Ritterbusch and Associates, said Saudi Arabia could cut as much as 500,000 barrels per day of crude production "as a warning shot should the US&nbsp;opt to impose any type of sanction in response to the Khashoggi developments".

Meanwhile, OPEC Secretary-General Mohammad Barkindo on Tuesday urged oil producing companies to increase capacities and invest more to meet future demand as spare oil capacity shrinks worldwide.

The Russian government is no longer capping oil output increases by local producers, one of the country's top energy companies, Gazprom Neft, said on Tuesday.

The market has been supported by reports that Iranian crude exports may be falling faster than expected ahead of November&nbsp;4th, the date US&nbsp;sanctions on the commodity are due to start.

 
&nbsp;

Oil prices extended gains into a fourth session on Wednesday, buoyed as industry data showed a surprise decline in US crude inventories and as geopolitical tensions over the disappearance of a prominent Saudi journalist Jamal Khashoggi stoked supply worries.

Oil prices extended gains into a fourth session on Wednesday, buoyed as industry data showed a surprise decline in US crude inventories and as geopolitical tensions over the disappearance of a prominent Saudi journalist Jamal Khashoggi stoked supply worries. Also Read: Trump thinks he can bring down oil prices by bullying, says Iran minister Zanganeh US West Texas Intermediate crude was up 15 cents, or 0.2 per cent, at $72.07 a barrel by 0255 GMT on Wednesday, having settled up 14 cents. Brent crude was up 12 cents, or 0.2 per cent, at $81.53 a barrel, after settling up 63 cents the session before. The global benchmark, which hit a more than two-week low late last week as equity markets dropped, is trading around $5 below a four-year high of $86.74 marked on October 3rd. US crude inventories fell by 2.1 million barrels last week, compared with analyst expectations for a build of 2.2 million barrels, American Petroleum Institute data showed after Tuesday's settlement. "The market is reacting to the unexpected decline as inventories tend to rise at this time of year," said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting in Tokyo, adding that anxieties about the outlook for the global economy were capping gains. US gasoline stocks dropped by a larger-than-expected 3.4 million barrels, while distillate fuel stockpiles declined by a smaller-than-expected 246,000 barrels, the API data showed. Inventory data from the US Energy Department's Energy Information Administration is due at 1430 GMT on Wednesday. US President Donald Trump gave Saudi Arabia the benefit of the doubt in the disappearance of journalist Jamal Khashoggi even as US lawmakers pointed the finger at the Saudi leadership and Western pressure mounted on Riyadh to provide answers. Jim Ritterbusch, president of Ritterbusch and Associates, said Saudi Arabia could cut as much as 500,000 barrels per day of crude production "as a warning shot should the US opt to impose any type of sanction in response to the Khashoggi developments". Meanwhile, OPEC Secretary-General Mohammad Barkindo on Tuesday urged oil producing companies to increase capacities and invest more to meet future demand as spare oil capacity shrinks worldwide. The Russian government is no longer capping oil output increases by local producers, one of the country's top energy companies, Gazprom Neft, said on Tuesday. The market has been supported by reports that Iranian crude exports may be falling faster than expected ahead of November 4th, the date US sanctions on the commodity are due to start.

Oil prices edge up over decline in US inventory, Khashoggi's disappearance

US President Trump cannot bring oil prices down by "bullying" other nations, Iran's oil minister said on Tuesday, adding that the market was suffering from short supply.

<a href="http://www.wionews.com/markets/as-us-iran-sanctions-on-iran-loom-saudi-arabia-says-it-will-meet-indias-oil-demand-171693">Also Read:&nbsp;As US sanctions on Iran loom, Saudi Arabia says it will meet India's oil demand</a>

US sanctions on Iranian oil exports are due to kick in on November 4th. The US administration has been pushing its allies to cut Iranian oil imports and encouraging Saudi Arabia, other OPEC states and Russia to pump more oil to meet any shortfall.

"The oil market is suffering from short supply and this cannot be resolved by words. Trump thinks he can bring the oil prices down by bullying," Iranian Oil Minister Bijan Zanganeh said, according to the semi-official news agency ILNA.

Benchmark Brent crude has been trading above $80 a barrel.

Zanganeh said the rise of oil prices was a "self-inflicted pain" caused by US sanctions against Iranian energy exports, and could be resolved by lifting the measures.

"Everyone is worried and Trump has failed to reassure them. That's why the market is in turmoil," he said.

Zanganeh also said the United States "has done most of the things it could do, and there is not much left to do against Iran," according to comments reported by Iran's ISNA agency.

Washington said this month it would consider waivers for Iranian oil buyers such as India, although it said they would eventually have to halt imports from Iran, the third biggest oil producer in the Organization of the Petroleum Exporting Countries.

The United States announced new sanctions after withdrawing from a nuclear deal with Iran in May. Under the 2015 nuclear pact, most international sanctions against Tehran were lifted in 2016 in exchange for Iran curbing its nuclear programme.

US President Trump cannot bring oil prices down by "bullying" other nations, Iran's oil minister said on Tuesday, adding that the market was suffering from short supply.

US President Trump cannot bring oil prices down by "bullying" other nations, Iran's oil minister said on Tuesday, adding that the market was suffering from short supply. Also Read: As US sanctions on Iran loom, Saudi Arabia says it will meet India's oil demand US sanctions on Iranian oil exports are due to kick in on November 4th. The US administration has been pushing its allies to cut Iranian oil imports and encouraging Saudi Arabia, other OPEC states and Russia to pump more oil to meet any shortfall. "The oil market is suffering from short supply and this cannot be resolved by words. Trump thinks he can bring the oil prices down by bullying," Iranian Oil Minister Bijan Zanganeh said, according to the semi-official news agency ILNA. Benchmark Brent crude has been trading above $80 a barrel. Zanganeh said the rise of oil prices was a "self-inflicted pain" caused by US sanctions against Iranian energy exports, and could be resolved by lifting the measures. "Everyone is worried and Trump has failed to reassure them. That's why the market is in turmoil," he said. Zanganeh also said the United States "has done most of the things it could do, and there is not much left to do against Iran," according to comments reported by Iran's ISNA agency. Washington said this month it would consider waivers for Iranian oil buyers such as India, although it said they would eventually have to halt imports from Iran, the third biggest oil producer in the Organization of the Petroleum Exporting Countries. The United States announced new sanctions after withdrawing from a nuclear deal with Iran in May. Under the 2015 nuclear pact, most international sanctions against Tehran were lifted in 2016 in exchange for Iran curbing its nuclear programme.

Trump thinks he can bring down oil prices by bullying: Iran minister Zanganeh

As oil prices continue <a href="http://www.wionews.com/india-news/fuel-prices-continue-to-rise-petrol-sells-at-rs-8248-a-litre-in-delhi-170964">to rise worldwide with India being no exception</a>, the International Energy Agency(IEA) in a report said today that "both global oil demand and supply are now close to new, historically significant peak" at 100 million barrels a day.

<a href="http://www.wionews.com/business-economy/government-will-not-ask-omcs-to-further-subsidise-petrol-diesel-prices-170903">Also</a><a href="http://www.wionews.com/business-economy/government-will-not-ask-omcs-to-further-subsidise-petrol-diesel-prices-170903"> Read:&nbsp;Government will not ask OMCs to further subsidise petrol, diesel prices</a>

"Production has surged, led by the US shale revolution, and supported by big increases in Brazil, Canada and elsewher," the IEA report said, adding that potential supply could come to the market from places like Iran, Iraq, Libya, Nigeria and Venezuela.

In its study titled “The Future of Petrochemicals”, the world energy body said that the oil market reached the landmark 100 mb/d level with prices rising steadily.&nbsp;

"For many developing countries, higher international prices coincide with currencies depreciating against the US dollar, so the threat of economic damage is more acute," the report cautioned.

Despite increased oil production, prices have been shooting up worldwide. In India, petrol prices shot up drastically in the last three months as it went above the Rs 80-mark as the Opposition took on the government. The government eventually decided to cut prices by Rs 2.5 but it continued over the Rs 80-mark.

India's finance minister Arun Jaitley categorically rejected going back on deregulation of fuel prices even as critics said the government had imposed too many taxes on petrol and diesel. Petrol prices were freed up by previous Congress government led by Manmohan Singh in 2010.

The price cut reduced the government's excise duty by Rs 1.50 rupees per litre and cut one rupee per litre on the amount charged by state-run oil marketing firms Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp.

After the announcement, shares of oil companies fell more than twenty per cent last week.

The IEA report warned that after the US announced sanctions on Iran, oil prices have shot up. "Even China has seen the first year-on-year production growth in nearly three years in response to higher prices. Meanwhile, output in Iran, Mexico, and Venezuela has fallen, it observed.

Although it welcomed Saudi Arabia's effort towards boosting oil production, but said that supply disruptions in Libya and a collapse in Venezuela should not allow for complacency&nbsp;

The report pointed out that recent production increases have come at the expense of spare capacity, which is already "down to only 2 per cent of global demand, with further reductions likely to come."&nbsp;

"This strain could be with us for some time and it will likely be accompanied by higher prices, however much we regret them and their potential negative impact on the global economy," the report concluded.

As oil prices continue to rise worldwide with India being no exception, the International Energy Agency(IEA) in a report said today that "both global oil demand and supply are now close to new, historically significant peak" at 100 million barrels a day.

As oil prices continue to rise worldwide with India being no exception, the International Energy Agency(IEA) in a report said today that "both global oil demand and supply are now close to new, historically significant peak" at 100 million barrels a day. Also Read: Government will not ask OMCs to further subsidise petrol, diesel prices "Production has surged, led by the US shale revolution, and supported by big increases in Brazil, Canada and elsewher," the IEA report said, adding that potential supply could come to the market from places like Iran, Iraq, Libya, Nigeria and Venezuela. In its study titled “The Future of Petrochemicals”, the world energy body said that the oil market reached the landmark 100 mb/d level with prices rising steadily. "For many developing countries, higher international prices coincide with currencies depreciating against the US dollar, so the threat of economic damage is more acute," the report cautioned. Despite increased oil production, prices have been shooting up worldwide. In India, petrol prices shot up drastically in the last three months as it went above the Rs 80-mark as the Opposition took on the government. The government eventually decided to cut prices by Rs 2.5 but it continued over the Rs 80-mark. India's finance minister Arun Jaitley categorically rejected going back on deregulation of fuel prices even as critics said the government had imposed too many taxes on petrol and diesel. Petrol prices were freed up by previous Congress government led by Manmohan Singh in 2010. The price cut reduced the government's excise duty by Rs 1.50 rupees per litre and cut one rupee per litre on the amount charged by state-run oil marketing firms Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp. After the announcement, shares of oil companies fell more than twenty per cent last week. The IEA report warned that after the US announced sanctions on Iran, oil prices have shot up. "Even China has seen the first year-on-year production growth in nearly three years in response to higher prices. Meanwhile, output in Iran, Mexico, and Venezuela has fallen, it observed. Although it welcomed Saudi Arabia's effort towards boosting oil production, but said that supply disruptions in Libya and a collapse in Venezuela should not allow for complacency The report pointed out that recent production increases have come at the expense of spare capacity, which is already "down to only 2 per cent of global demand, with further reductions likely to come." "This strain could be with us for some time and it will likely be accompanied by higher prices, however much we regret them and their potential negative impact on the global economy," the report concluded.

Oil production reaches record peak at 100 million barrels, along with demand: IEA

Oil prices steadied on Friday after a market rout driven by sharp falls in equity markets and indications that supply concerns have been overblown, but were still on track for a fall or more than 4 per cent for the week.

Brent crude futures edged up 13 cents to $80.39 a barrel by 0042 GMT. The contract fell 3.4 per cent on Thursday, after hitting a low of $79.80, its weakest since September 24.

US West Texas Intermediate (WTI) crude futures were up 11 cents at $71.08 a barrel, after falling 3 per cent in the previous session to the lowest since Sept. 21.

Wall Street extended its slide into a sixth session and a global equity index fell to a 1-year low on Thursday as investors feared an escalating US trade war with China and risks from a recent climb in interest rates.

Japan's Nikkei was slightly lower in early trading on Friday.

On the oil front, US crude inventories rose by 6 million barrels last week, the Energy Information Administration said, more than double analysts' expectations of a 2.6 million-barrel increase.

The Organization of the Petroleum Exporting Countries cut its forecast of global demand growth for oil next year for a third straight month, citing headwinds facing the broader economy from trade disputes and volatile emerging markets.

OPEC sees the oil market as well supplied and is wary of creating a glut next year, the group's secretary-general said on Thursday.

In the US Gulf of Mexico, producers had cut output by 40 per cent on Thursday due to Hurricane Michael, according to the Bureau of Safety and Environmental Enforcement, even as some operators began returning crews to offshore platforms.

The cuts represent 680,107 barrels per day of oil production, the bureau said, citing reports from 30 companies.

Michael crashed ashore Florida on Wednesday as the third most powerful hurricane to strike the US mainland, leaving seven people least. It has since weakened to a tropical storm.

Oil prices steadied on Friday after a market rout driven by sharp falls in equity markets and indications that supply concerns have been overblown, but were still on track for a fall or more than 4 per cent for the week.

Oil prices steadied on Friday after a market rout driven by sharp falls in equity markets and indications that supply concerns have been overblown, but were still on track for a fall or more than 4 per cent for the week. Brent crude futures edged up 13 cents to $80.39 a barrel by 0042 GMT. The contract fell 3.4 per cent on Thursday, after hitting a low of $79.80, its weakest since September 24. US West Texas Intermediate (WTI) crude futures were up 11 cents at $71.08 a barrel, after falling 3 per cent in the previous session to the lowest since Sept. 21. Wall Street extended its slide into a sixth session and a global equity index fell to a 1-year low on Thursday as investors feared an escalating US trade war with China and risks from a recent climb in interest rates. Japan's Nikkei was slightly lower in early trading on Friday. On the oil front, US crude inventories rose by 6 million barrels last week, the Energy Information Administration said, more than double analysts' expectations of a 2.6 million-barrel increase. The Organization of the Petroleum Exporting Countries cut its forecast of global demand growth for oil next year for a third straight month, citing headwinds facing the broader economy from trade disputes and volatile emerging markets. OPEC sees the oil market as well supplied and is wary of creating a glut next year, the group's secretary-general said on Thursday. In the US Gulf of Mexico, producers had cut output by 40 per cent on Thursday due to Hurricane Michael, according to the Bureau of Safety and Environmental Enforcement, even as some operators began returning crews to offshore platforms. The cuts represent 680,107 barrels per day of oil production, the bureau said, citing reports from 30 companies. Michael crashed ashore Florida on Wednesday as the third most powerful hurricane to strike the US mainland, leaving seven people least. It has since weakened to a tropical storm.

Oil prices hold ground, but set for 4 per cent weekly fall

Oil prices rose on Thursday, lifted by looming US sanctions against major crude exporter Iran.

Brent crude futures &lt;LCOc1&gt; were at $82.04 per barrel at 0104 GMT, up by 70 cents, or 0.9 per cent from their last close.

US West Texas Intermediate (WTI) crude futures &lt;CLc1&gt; were at $72.35 a barrel, up 78 cents, or 1.1 per cent from their last settlement.

Traders said oil markets were tightening ahead of Washington's planned sanctions on Iran's petroleum industry from November 4.

At its 2018 peak, Iran exported around 3 million barrels per day (bpd) of crude oil, equivalent to 3 per cent of global consumption, and the Organization of the Petroleum Exporting Countries (OPEC) has little spare capacity to make up for an expected shortfall in Iranian exports.

Reflecting expectations of lower supply from the Middle East, Oman crude futures on the Dubai Mercantile Exchange touched their highest in four years on Wednesday, briefly jumping above $90 a barrel.

"Oil prices remain in the Bulls domain amid concern that US sanctions on Iranian crude oil exports will result in much tighter physical market conditions once they take effect in November," said Stephen Innes, head of trading for Asia/Pacific at futures brokerage OANDA in Singapore.

"Markets could still be underestimating the supply crunch from Iran sanctions," he added.

While global oil markets tighten, supply in the United States is ample, thanks to rising output.

US crude production &lt;C-OUT-T-EIA&gt; hit a record 11.1 million bpd in the week ending Sept. 21, according to data from the Energy Information Administration (EIA).

That's an increase of almost a third since mid-2016.

Commercial crude stocks rose by 1.85 million barrels, to 395.99 million barrels, the EIA data showed.

Oil prices rose on Thursday, lifted by looming US sanctions against major crude exporter Iran. Brent crude futures <LCOc1> were at $82.04 per barrel at 0104 GMT, up by 70 cents, or 0.

Oil prices rose on Thursday, lifted by looming US sanctions against major crude exporter Iran. Brent crude futures <LCOc1> were at $82.04 per barrel at 0104 GMT, up by 70 cents, or 0.9 per cent from their last close. US West Texas Intermediate (WTI) crude futures <CLc1> were at $72.35 a barrel, up 78 cents, or 1.1 per cent from their last settlement. Traders said oil markets were tightening ahead of Washington's planned sanctions on Iran's petroleum industry from November 4. At its 2018 peak, Iran exported around 3 million barrels per day (bpd) of crude oil, equivalent to 3 per cent of global consumption, and the Organization of the Petroleum Exporting Countries (OPEC) has little spare capacity to make up for an expected shortfall in Iranian exports. Reflecting expectations of lower supply from the Middle East, Oman crude futures on the Dubai Mercantile Exchange touched their highest in four years on Wednesday, briefly jumping above $90 a barrel. "Oil prices remain in the Bulls domain amid concern that US sanctions on Iranian crude oil exports will result in much tighter physical market conditions once they take effect in November," said Stephen Innes, head of trading for Asia/Pacific at futures brokerage OANDA in Singapore. "Markets could still be underestimating the supply crunch from Iran sanctions," he added. While global oil markets tighten, supply in the United States is ample, thanks to rising output. US crude production <C-OUT-T-EIA> hit a record 11.1 million bpd in the week ending Sept. 21, according to data from the Energy Information Administration (EIA). That's an increase of almost a third since mid-2016. Commercial crude stocks rose by 1.85 million barrels, to 395.99 million barrels, the EIA data showed.

Oil prices rise ahead of US sanctions against Iran

US President Donald Trump is the "main culprit" to blame for a recent surge in oil prices, Iranian Oil Minister Bijan Namdar Zanganeh said on Wednesday.

"The main culprit of the price hikes ... and the destabilisation of the market is Mr Trump and his disruptive and illegal policies," Zanganeh said on state television, after the US president hit out at OPEC accusing it of "ripping off the rest of the world".

US President Donald Trump is the "main culprit" to blame for a recent surge in oil prices, Iranian Oil Minister Bijan Namdar Zanganeh said on Wednesday. "The main culprit of the price hikes .

US President Donald Trump is the "main culprit" to blame for a recent surge in oil prices, Iranian Oil Minister Bijan Namdar Zanganeh said on Wednesday. "The main culprit of the price hikes ... and the destabilisation of the market is Mr Trump and his disruptive and illegal policies," Zanganeh said on state television, after the US president hit out at OPEC accusing it of "ripping off the rest of the world".

Iran says Trump 'main culprit' of oil price hikes

Oil prices hit their highest since <a href="http://www.wionews.com/business-economy/rupee-sinks-new-low-over-trumps-iran-oil-sanctions-fear-spike-crude-167524">November 2014 on Tuesday</a>, topping four-year highs from the previous day, as looming US sanctions against Iran and reluctance by the Organization of the Petroleum Exporting Countries to raise output supported markets.

<a href="http://www.wionews.com/business-economy/indias-crude-oil-demand-hit-500-million-tonnes-2040-report-167517">Also Read: India's crude oil demand to hit 500 million tonnes by 2040</a>

Brent crude futures rose to $81.62 a barrel around 0600 GMT, levels not seen since November 2014. They were still at $81.61 at 0610 GMT, up 41 cents, or 0.5 per cent from their last close.

US West Texas Intermediate (WTI) crude futures were at $72.37 a barrel, up 29 cents, or 0.4 per cent from their last settlement.

The United States from November 4 will target Iran's oil exports with sanctions, and Washington is putting pressure on governments and companies around the world to fall in line and cut purchases from Tehran.

"Iran will lose sizeable export volumes, and given OPEC's reluctance to raise output, the market is ill-equipped to fill the supply gap," Harry Tchilinguirian, global head of commodity markets strategy at French bank BNP Paribas, told the Reuters Global Oil Forum on Tuesday.

OPEC is the name given to the group of oil producers, including non-OPEC supplier Russia, that agreed to curtail output starting in 2017.

While Britain, China, France, Germany, Russia and Iran on Tuesday said they were determined to develop payment mechanisms to continue trading despite the sanctions by the United States, most analysts expect Washington's actions to knock between 1 million and 1.5 million barrels per day (bpd) of crude oil supplies out of markets.

US President Donald Trump has demanded that OPEC and Russia increase their supplies to make up for the expected fall in Iranian exports. Iran is the third-largest producer in OPEC.

OPEC and Russia, however, have so far rebuffed such calls.

"Any formal decision on oil output by the producer group, barring an extraordinary meeting, will only take place at the December meeting. Thus the window period for oil prices to potentially extend gains is quite wide as Iran loses exports and OPEC remains on standby," Tchilinguirian said.

Ashley Kelty, oil analyst at financial services firm Cantor Fitzgerald said crude could soon hit $90 per barrel.

"We don't believe OPEC can actually raise output significantly in the near term, as the physical spare capacity in the system is not that high," Kelty said.

"If OPEC is physically unable to ramp up production, then Oil prices do indeed have much further to run," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore.

Bank of America Merrill Lynch lifted its average Brent price forecast for 2019 from $75 per barrel to $80, and increased its WTI forecast by $2 to $71 per barrel.

It said "the Iran factor may dominate the market near-term and cause a (crude price) spike," although it added that emerging market "demand concerns could reappear thereafter."

Indian refiners, hit by high crude prices and a sliding rupee, are planning to reduce oil imports in what could be a sign that high prices are starting to hurt demand.

Despite the bullish sentiment, commodity merchant Vitol said current prices already reflected the tighter market, and that more oil would be coming in 2019.

Vitol also said that non-OPEC producers, especially the United States, may insert up to 2 million bpd of new crude into the market in 2019.

To reflect rising US oil exports, CME Group Inc said on Monday it will launch a WTI Houston crude futures contract in the fourth quarter.

CME's announcement comes after rival Intercontinental Exchange said in July it would offer a Houston crude futures contract.

Oil prices hit their highest since November 2014 on Tuesday, topping four-year highs from the previous day, as looming US sanctions against Iran and reluctance by the Organization of the Petroleum Exporting Countries to raise output supported markets.

Oil prices hit their highest since November 2014 on Tuesday, topping four-year highs from the previous day, as looming US sanctions against Iran and reluctance by the Organization of the Petroleum Exporting Countries to raise output supported markets. Also Read: India's crude oil demand to hit 500 million tonnes by 2040 Brent crude futures rose to $81.62 a barrel around 0600 GMT, levels not seen since November 2014. They were still at $81.61 at 0610 GMT, up 41 cents, or 0.5 per cent from their last close. US West Texas Intermediate (WTI) crude futures were at $72.37 a barrel, up 29 cents, or 0.4 per cent from their last settlement. The United States from November 4 will target Iran's oil exports with sanctions, and Washington is putting pressure on governments and companies around the world to fall in line and cut purchases from Tehran. "Iran will lose sizeable export volumes, and given OPEC's reluctance to raise output, the market is ill-equipped to fill the supply gap," Harry Tchilinguirian, global head of commodity markets strategy at French bank BNP Paribas, told the Reuters Global Oil Forum on Tuesday. OPEC is the name given to the group of oil producers, including non-OPEC supplier Russia, that agreed to curtail output starting in 2017. While Britain, China, France, Germany, Russia and Iran on Tuesday said they were determined to develop payment mechanisms to continue trading despite the sanctions by the United States, most analysts expect Washington's actions to knock between 1 million and 1.5 million barrels per day (bpd) of crude oil supplies out of markets. US President Donald Trump has demanded that OPEC and Russia increase their supplies to make up for the expected fall in Iranian exports. Iran is the third-largest producer in OPEC. OPEC and Russia, however, have so far rebuffed such calls. "Any formal decision on oil output by the producer group, barring an extraordinary meeting, will only take place at the December meeting. Thus the window period for oil prices to potentially extend gains is quite wide as Iran loses exports and OPEC remains on standby," Tchilinguirian said. Ashley Kelty, oil analyst at financial services firm Cantor Fitzgerald said crude could soon hit $90 per barrel. "We don't believe OPEC can actually raise output significantly in the near term, as the physical spare capacity in the system is not that high," Kelty said. "If OPEC is physically unable to ramp up production, then Oil prices do indeed have much further to run," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore. Bank of America Merrill Lynch lifted its average Brent price forecast for 2019 from $75 per barrel to $80, and increased its WTI forecast by $2 to $71 per barrel. It said "the Iran factor may dominate the market near-term and cause a (crude price) spike," although it added that emerging market "demand concerns could reappear thereafter." Indian refiners, hit by high crude prices and a sliding rupee, are planning to reduce oil imports in what could be a sign that high prices are starting to hurt demand. Despite the bullish sentiment, commodity merchant Vitol said current prices already reflected the tighter market, and that more oil would be coming in 2019. Vitol also said that non-OPEC producers, especially the United States, may insert up to 2 million bpd of new crude into the market in 2019. To reflect rising US oil exports, CME Group Inc said on Monday it will launch a WTI Houston crude futures contract in the fourth quarter. CME's announcement comes after rival Intercontinental Exchange said in July it would offer a Houston crude futures contract.

International oil prices hit four-year high as OPEC, Russia resist output rise

India's retail inflation jumped further in May to a four-month high, primarily driven by a surge in energy prices, according to a Reuters poll of economists, suggesting more policy tightening from the central bank is coming.

On June 6, the Reserve Bank of India (RBI) raised the repo rate for the first time since 2014, by 25 basis points to 6.25 percent, as recent data showed significant increases for both inflation and growth. But the central bank kept its "neutral" policy stance unchanged.

Mounting price pressure is a concern for the RBI, with its own projections for inflation raised compared with the ones made in May.

The poll of more than 30 economists taken June 4-8 showed annual consumer price inflation likely increased to 4.83 percent last month, the highest since January and above April's 4.58 percent.

If that predicted pace is realised, May will be the seventh month in a row with inflation higher than the RBI's medium-term target of 4 percent.

"Consumer price inflation is likely to have accelerated in May, due in large part to a rise in fuel inflation," noted Shilan Shah, a senior India economist at Capital Economics. "Core inflation will also have remained elevated, and this is likely to be the case for some time."

Poll forecasts for the data, due to be released on Tuesday June 12 at 1200 GMT, ranged from 4.1 percent to 5.7 percent.

Oil prices hit a 3-1/2-year high last month, led by increasing worries of supply constraints from U.S. President Donald Trump's decision to withdraw from the 2015 Iran nuclear agreement.

India imports almost 80 percent of its oil needs and that surge poses a threat not just to inflation but also to the recovering economy, which still is the fastest-growing major economy.

"Rising crude prices would not only impact headline inflation but would also put pressure on price levels as the twin deficit goes up," noted Kunal Kundu, an economist at Societe Generale, referring to India's budget and current account gaps.

The government's plan to increase rural spending and the minimum support price for farmers ahead of general elections next year will exacerbate price pressures, and is likely to blow out the fiscal deficit target.

What has also not helped is the weakening rupee, which has shed 5.7 percent against the dollar this year.

The currency's fall is also inflationary, and increases concern about capital outflows from Asia's third-largest economy - another reason that some expect more rate hikes by the RBI.

The poll also showed the wholesale prices index likely hit a six-month high of 3.82 percent in May.

"The outlook for core inflation suggests that (the June 6) rate hike by the central bank marks the start of a modest tightening cycle rather than being a case of a one-off move," noted Shah. "We are penciling in two further 25 basis point increases in the repo rate over the next six months or so."

The poll also predicted industrial output to have risen 5.2 percent in April from a year earlier, up from 4.4 percent in March. That was likely driven by the increase in output of eight core factories - which account for nearly 40 percent of total industrial production - by 4.7 percent in April from a year earlier. The March increase was 4.4 percent.

On June 6, the Reserve Bank of India (RBI) raised the repo rate for the first time since 2014, by 25 basis points to 6.25 percent, as recent data showed significant increases for both inflation and growth. But the central bank kept its 'neutral' policy stance unchanged

India's retail inflation jumped further in May to a four-month high, primarily driven by a surge in energy prices, according to a Reuters poll of economists, suggesting more policy tightening from the central bank is coming. On June 6, the Reserve Bank of India (RBI) raised the repo rate for the first time since 2014, by 25 basis points to 6.25 percent, as recent data showed significant increases for both inflation and growth. But the central bank kept its "neutral" policy stance unchanged. Mounting price pressure is a concern for the RBI, with its own projections for inflation raised compared with the ones made in May. The poll of more than 30 economists taken June 4-8 showed annual consumer price inflation likely increased to 4.83 percent last month, the highest since January and above April's 4.58 percent. If that predicted pace is realised, May will be the seventh month in a row with inflation higher than the RBI's medium-term target of 4 percent. "Consumer price inflation is likely to have accelerated in May, due in large part to a rise in fuel inflation," noted Shilan Shah, a senior India economist at Capital Economics. "Core inflation will also have remained elevated, and this is likely to be the case for some time." Poll forecasts for the data, due to be released on Tuesday June 12 at 1200 GMT, ranged from 4.1 percent to 5.7 percent. Oil prices hit a 3-1/2-year high last month, led by increasing worries of supply constraints from U.S. President Donald Trump's decision to withdraw from the 2015 Iran nuclear agreement. India imports almost 80 percent of its oil needs and that surge poses a threat not just to inflation but also to the recovering economy, which still is the fastest-growing major economy. "Rising crude prices would not only impact headline inflation but would also put pressure on price levels as the twin deficit goes up," noted Kunal Kundu, an economist at Societe Generale, referring to India's budget and current account gaps. The government's plan to increase rural spending and the minimum support price for farmers ahead of general elections next year will exacerbate price pressures, and is likely to blow out the fiscal deficit target. What has also not helped is the weakening rupee, which has shed 5.7 percent against the dollar this year. The currency's fall is also inflationary, and increases concern about capital outflows from Asia's third-largest economy - another reason that some expect more rate hikes by the RBI. The poll also showed the wholesale prices index likely hit a six-month high of 3.82 percent in May. "The outlook for core inflation suggests that (the June 6) rate hike by the central bank marks the start of a modest tightening cycle rather than being a case of a one-off move," noted Shah. "We are penciling in two further 25 basis point increases in the repo rate over the next six months or so." The poll also predicted industrial output to have risen 5.2 percent in April from a year earlier, up from 4.4 percent in March. That was likely driven by the increase in output of eight core factories - which account for nearly 40 percent of total industrial production - by 4.7 percent in April from a year earlier. The March increase was 4.4 percent.

India May inflation likely hit a four-month high on oil price surge

Oil prices fell on Friday, reversing early gains as signs of weakening demand in China and surging U.S. output weighed on markets despite support from supply woes in Venezuela and OPEC's production cuts.

Brent crude futures, the international benchmark for oil prices, were at $76.79 per barrel at 0654 GMT, down 53 cents, or 0.7 per cent, from their last close.

US&nbsp;West Texas Intermediate (WTI) crude futures were down 38 cents, or 0.6 per cent, at $65.57 a barrel.

China's May crude oil imports eased away from a record high hit the month before, customs data showed on Friday, with state-run refineries entering planned maintenance.

May shipments were 39.05 million tonnes, or 9.2 million barrels per day (bpd), according to the General Administration of Customs. That compared with 9.6 million bpd in April.

Further weighing on prices has been surging U.S. output, which hit another record last week at 10.8 million bpd.

That's a 28 per cent gain in two years, or an average 2.3 per cent growth rate per month since mid-2016. It puts the United States close to becoming the world's biggest crude oil producer, edging nearer to the 11 million bpd churned out by Russia.

The surge in U.S. production has pulled down U.S. WTI crude into a steep discount versus Brent to more than $11 per barrel, its steepest since 2015.

"This is occurring because of the rapid increase in production from U.S. shale coupled with the tightening of supplies elsewhere through the actions of OPEC and Russia," said William O'Loughlin, investment analyst at Australia's Rivkin Securities.

Despite Friday's falls, Brent remains more than 15 per cent above its level at the start of the year.

U.S. investment bank Jefferies said on Friday that the "crude market is tight and spare capacity could dwindle to 2 per cent of demand in 2H18, its lowest level since at least 1984".

Markets have been tightened by supply trouble in Venezuela, where state-owned oil firm PDVSA is struggling to clear a backlog of around 24 million barrels of crude waiting to be shipped to customers.

More generally, Brent has been pushed up by voluntary production cuts led by the Middle East dominated producer cartel of the Organization of the Petroleum Exporting Countries (OPEC) and by top producer Russia, which were put in place in 2017.

The group and Russia are due to meet at its headquarters in Vienna on June 22 to discuss production policy.

"The June 22 OPEC meeting will now likely become the most important factor influencing (the) crude price," Jefferies said.

US West Texas Intermediate (WTI) crude futures were down 38 cents, or 0.6 per cent, at $65.57 a barrel

Oil prices fell on Friday, reversing early gains as signs of weakening demand in China and surging U.S. output weighed on markets despite support from supply woes in Venezuela and OPEC's production cuts. Brent crude futures, the international benchmark for oil prices, were at $76.79 per barrel at 0654 GMT, down 53 cents, or 0.7 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were down 38 cents, or 0.6 per cent, at $65.57 a barrel. China's May crude oil imports eased away from a record high hit the month before, customs data showed on Friday, with state-run refineries entering planned maintenance. May shipments were 39.05 million tonnes, or 9.2 million barrels per day (bpd), according to the General Administration of Customs. That compared with 9.6 million bpd in April. Further weighing on prices has been surging U.S. output, which hit another record last week at 10.8 million bpd. That's a 28 per cent gain in two years, or an average 2.3 per cent growth rate per month since mid-2016. It puts the United States close to becoming the world's biggest crude oil producer, edging nearer to the 11 million bpd churned out by Russia. The surge in U.S. production has pulled down U.S. WTI crude into a steep discount versus Brent to more than $11 per barrel, its steepest since 2015. "This is occurring because of the rapid increase in production from U.S. shale coupled with the tightening of supplies elsewhere through the actions of OPEC and Russia," said William O'Loughlin, investment analyst at Australia's Rivkin Securities. Despite Friday's falls, Brent remains more than 15 per cent above its level at the start of the year. U.S. investment bank Jefferies said on Friday that the "crude market is tight and spare capacity could dwindle to 2 per cent of demand in 2H18, its lowest level since at least 1984". Markets have been tightened by supply trouble in Venezuela, where state-owned oil firm PDVSA is struggling to clear a backlog of around 24 million barrels of crude waiting to be shipped to customers. More generally, Brent has been pushed up by voluntary production cuts led by the Middle East dominated producer cartel of the Organization of the Petroleum Exporting Countries (OPEC) and by top producer Russia, which were put in place in 2017. The group and Russia are due to meet at its headquarters in Vienna on June 22 to discuss production policy. "The June 22 OPEC meeting will now likely become the most important factor influencing (the) crude price," Jefferies said.

Oil prices fall on dip in China demand, surging US output

Just hours after annoucing cut in fuel <a href="http://wionews.com/india-news/fuel-prices-finally-mellow-down-after-16-days-of-consecutive-hike-140787">prices, Indian Oil Corporation&nbsp;said the revised </a>&nbsp;price was actually 1 paisa and not 60 paisa as previously reported blaming it on "clerical error"

On Wednesday morning, Indian Oil had declared that they had cut oil prices in the country after sixteen consecutive days of high prices which had angered everyone.

As a result petrol prices have now have been revised down by just 1 paisa and not 60 paisa in Delhi & 59 paisa in Mumbai.

Diesel prices also went down by just 1 paisa instead of 56 paise in Delhi and 59 paise in Mumbai.

On Tuesday petrol price in Delhi had climbed to Rs 78.43 a litre.

Mumbai, Chennai and Kolkata also witnessed petrol prices breaking the Rs 80+ mark at Rs 86.24, Rs 81.43 and Rs 81.06 respectively. &nbsp;

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On Wednesday morning, the oil companies had declared that they had cut oil prices in the country

Just hours after annoucing cut in fuel prices, Indian Oil Corporation said the revised price was actually 1 paisa and not 60 paisa as previously reported blaming it on "clerical error" On Wednesday morning, Indian Oil had declared that they had cut oil prices in the country after sixteen consecutive days of high prices which had angered everyone. As a result petrol prices have now have been revised down by just 1 paisa and not 60 paisa in Delhi & 59 paisa in Mumbai. Diesel prices also went down by just 1 paisa instead of 56 paise in Delhi and 59 paise in Mumbai. On Tuesday petrol price in Delhi had climbed to Rs 78.43 a litre. Mumbai, Chennai and Kolkata also witnessed petrol prices breaking the Rs 80+ mark at Rs 86.24, Rs 81.43 and Rs 81.06 respectively. ×

Fuel prices cut 1 paisa, not 60 paisa; Indian Oil blames it on 'clerical error'

Oil prices eased&nbsp;on Friday&nbsp;as Russia hinted it may gradually increase output, after having withheld supplies in concert with producer cartel OPEC since 2017.

Brent crude futures were at $78.63 per barrel at 0534 GMT, down 16 cents from their last close, and more than 2.2 percent below the $80.50 multi-year high they reached on May 17. Brent broke through $80 for the first time in more than three years earlier in May.

US&nbsp;West Texas Intermediate (WTI) crude futures were at $70.60 a barrel, down 11 cents from their last settlement.

"Oil prices are now starting to drift a little," said Greg McKenna,&nbsp;chief&nbsp;market strategist at futures brokerage AxiTrader, adding that this was due to OPEC's and Russia's "moves toward an increase in production" at a meeting scheduled for next month.

The Middle East dominated Organization of the Petroleum Exporting Countries (OPEC), as well as a group of non-OPEC producers led by Russia, started withholding output in 2017 to tighten the market and prop up prices.

But Russia, in particular, has been floating a potential end to the production cuts, with energy minister Alexander Novak saying&nbsp;on Thursday&nbsp;that restrictions on oil production could be eased "softly" if OPEC and non-OPEC countries see the oil market balancing in June.

"The Russians have always struck me as production cut tourists keen to get off the boat and crank up production as soon as inventories were stabilised and prices once again elevated ... That possibility is top of the mind for traders and as result&nbsp;oil prices are slipping," McKenna said.

Still, the downside risk to oil prices could be limited by geopolitical factors.&nbsp;

"Oil prices, however, look primed to withstand the slip as heightened geopolitical risks from the Middle East, (and) raised prospects of a supply squeeze in Venezuela and Iran permeates global market sentiment," Benjamin Lu, an investment analyst at Phillip Futures in Singapore said in a note to clients.

While Russia and OPEC benefit from higher oil prices, which have risen by almost 20 percent since the end of last year, their voluntary output cuts have opened the door to other producers to ramp up output and gain market share.

US&nbsp;crude oil production has risen by more than a quarter in the last two years, to 10.73 million barrels per day (bpd). Only Russia produces more, at around 11 million bpd.

Output by producers like the United States, Canada or Brazil which are not bound by the OPEC/Russian led agreement to cut, will likely rise further as higher crude prices improve their profitability.

"With oil prices rising more than costs, average industry profitability has turned positive this year," Bernstein Energy said in a note this week, adding that the 50 largest listed oil companies globally "need $47 per barrel oil prices to break even in aggregate".

US West Texas Intermediate (WTI) crude futures were at $70.60 a barrel, down 11 cents from their last settlement

Oil prices eased on Friday as Russia hinted it may gradually increase output, after having withheld supplies in concert with producer cartel OPEC since 2017. Brent crude futures were at $78.63 per barrel at 0534 GMT, down 16 cents from their last close, and more than 2.2 percent below the $80.50 multi-year high they reached on May 17. Brent broke through $80 for the first time in more than three years earlier in May. US West Texas Intermediate (WTI) crude futures were at $70.60 a barrel, down 11 cents from their last settlement. "Oil prices are now starting to drift a little," said Greg McKenna, chief market strategist at futures brokerage AxiTrader, adding that this was due to OPEC's and Russia's "moves toward an increase in production" at a meeting scheduled for next month. The Middle East dominated Organization of the Petroleum Exporting Countries (OPEC), as well as a group of non-OPEC producers led by Russia, started withholding output in 2017 to tighten the market and prop up prices. But Russia, in particular, has been floating a potential end to the production cuts, with energy minister Alexander Novak saying on Thursday that restrictions on oil production could be eased "softly" if OPEC and non-OPEC countries see the oil market balancing in June. "The Russians have always struck me as production cut tourists keen to get off the boat and crank up production as soon as inventories were stabilised and prices once again elevated ... That possibility is top of the mind for traders and as result oil prices are slipping," McKenna said. Still, the downside risk to oil prices could be limited by geopolitical factors. "Oil prices, however, look primed to withstand the slip as heightened geopolitical risks from the Middle East, (and) raised prospects of a supply squeeze in Venezuela and Iran permeates global market sentiment," Benjamin Lu, an investment analyst at Phillip Futures in Singapore said in a note to clients. While Russia and OPEC benefit from higher oil prices, which have risen by almost 20 percent since the end of last year, their voluntary output cuts have opened the door to other producers to ramp up output and gain market share. US crude oil production has risen by more than a quarter in the last two years, to 10.73 million barrels per day (bpd). Only Russia produces more, at around 11 million bpd. Output by producers like the United States, Canada or Brazil which are not bound by the OPEC/Russian led agreement to cut, will likely rise further as higher crude prices improve their profitability. "With oil prices rising more than costs, average industry profitability has turned positive this year," Bernstein Energy said in a note this week, adding that the 50 largest listed oil companies globally "need $47 per barrel oil prices to break even in aggregate".

Oil prices fall as Russia warns of gradual output increase

Even as monsoon is predicted to be normal this year, its uneven distribution could spike food prices, and inflation is likely to edge further, says a report.

According to Dun & Bradstreet, rising fuel prices in India, which touched an all-time high, is likely to feed into other segments and keep the rate of inflation higher.

D&B expects CPI inflation to be in the range of 4.6-4.7 per cent and WPI inflation around 3.6-3.8 per cent this month.

"The assumption of a normal monsoon has been one of the primary factors considered for improvement in demand in the current year.&nbsp

"However, spatial distribution of rainfall needs to be monitored carefully before setting in firm expectations as uneven distribution of rainfall could flare up food inflation," said Arun Singh, Lead Economist D&B India.

Moreover, factors like geopolitical risks, escalating tensions in global trade, volatility in international crude oil prices and sharp depreciation in rupee underline the upside risk to inflation.

"Domestically, we look forward for the government to fulfil its commitment to revive investments, execute infrastructure projects and continue the policy momentum," Singh said.

The report further said the consistent growth clocked by the capital and infrastructure goods sector is likely to support the IIP growth rates going ahead.

D&B expects Index of Industrial Production (IIP) to have grown by 6.5-7.5 per cent during April this year.

The report further said the consistent growth clocked by the capital and infrastructure goods sector is likely to support the IIP growth rates going ahead.

Even as monsoon is predicted to be normal this year, its uneven distribution could spike food prices, and inflation is likely to edge further, says a report. According to Dun & Bradstreet, rising fuel prices in India, which touched an all-time high, is likely to feed into other segments and keep the rate of inflation higher. D&B expects CPI inflation to be in the range of 4.6-4.7 per cent and WPI inflation around 3.6-3.8 per cent this month. "The assumption of a normal monsoon has been one of the primary factors considered for improvement in demand in the current year. "However, spatial distribution of rainfall needs to be monitored carefully before setting in firm expectations as uneven distribution of rainfall could flare up food inflation," said Arun Singh, Lead Economist D&B India. Moreover, factors like geopolitical risks, escalating tensions in global trade, volatility in international crude oil prices and sharp depreciation in rupee underline the upside risk to inflation. "Domestically, we look forward for the government to fulfil its commitment to revive investments, execute infrastructure projects and continue the policy momentum," Singh said. The report further said the consistent growth clocked by the capital and infrastructure goods sector is likely to support the IIP growth rates going ahead. D&B expects Index of Industrial Production (IIP) to have grown by 6.5-7.5 per cent during April this year.

Uneven monsoon could spike food prices, inflation to edge higher: Report

Oil prices rose about 3 percent on Wednesday and hit fresh 3-1/2 year highs after a bigger-than-expected drawdown in U.S. oil inventories extended gains from the United States' decision to quit a nuclear deal with Iran.

Ignoring pleas by allies, U.S. President Trump on Tuesday pulled out of a 2015 international deal with Iran and announced the "highest level" of sanctions against the OPEC member, making investors nervous about rising risks of conflict in the Middle East and about oil supplies in a tight market.

News of the deal prompted a volatile trading session on Tuesday in the heaviest volumes for front-month U.S. crude futures since Nov. 30, 2016.

The United States will likely re-impose sanctions against Iran after 180 days, unless some other agreement is reached.

Brent crude futures rose $2.36, or 3.2 percent, to settle at $77.21 a barrel. The global benchmark hit a session high of $77.43, the highest since November 2014. U.S. West Texas Intermediate (WTI) crude futures rose $2.08 to settle at $71.14 a barrel, a 3-percent gain.

Both contracts notched their biggest daily percentage gain in a month.

Prices extended gains after U.S. Energy Information Administration data showed domestic crude inventories &nbsp;fell 2.2 million barrels in the latest week, far exceeding forecasts for a decrease of 719,000 barrels.

Net U.S. crude imports <usoici=eci> fell last week by 955,000 barrels per day to 5.4 million bpd, the lowest since mid-February, the EIA data showed.</usoici=eci>

U.S. gasoline futures <rbc1> hit a high of $2.1701 a gallon, the highest since Hurricane Harvey sent prices surging in August. U.S. heating oil futures <hoc1> surged to $2.2258 a gallon, the highest since February 2015.</hoc1></rbc1>

"A whopping drop in imports has resulted in a moderate draw to crude stocks, while a drop in both gasoline and distillates inventories round out a broadly supportive report," said Matt Smith, director of commodity research at ClipperData.

Oil ministers from Saudi Arabia and Kuwait said their countries will work closely with major OPEC and non-OPEC producers to lessen the impact of any supply shortages after U.S. withdrawal from the Iran nuclear deal.

Iran re-emerged as a major oil exporter in 2016 after international sanctions against it were lifted in return for curbs on its nuclear programme. The country, the third-biggest producer of crude within the Organization of the Petroleum Exporting Countries, exported about 2.6 million barrels per day (bpd) in April.

Analysts' estimates of the possible reduction in Iranian crude supplies as a result of any new U.S. sanctions range from 200,000 bpd to 1 million bpd.

Investment bank Goldman Sachs said in a note that Trump's announcement brought upside risks to its forecast that Brent crude will hit $82.50 a barrel by the summer.

Several refiners in Asia said they were seeking alternatives to Iranian supplies.

A number of countries have already cut reliance on Iranian oil, as well as other "traditional" sources of supply, due to a surge in cheaper U.S. crude exports.

Volumes jumped for all key crude oil futures contracts as investors took new positions and refiners hedged to protect themselves from higher feedstock prices. 
&nbsp;

Ignoring pleas by allies, U.S. President Trump on Tuesday pulled out of a 2015 international deal with Iran and announced the "highest level" of sanctions against the OPEC member

Oil prices rose about 3 percent on Wednesday and hit fresh 3-1/2 year highs after a bigger-than-expected drawdown in U.S. oil inventories extended gains from the United States' decision to quit a nuclear deal with Iran. Ignoring pleas by allies, U.S. President Trump on Tuesday pulled out of a 2015 international deal with Iran and announced the "highest level" of sanctions against the OPEC member, making investors nervous about rising risks of conflict in the Middle East and about oil supplies in a tight market. News of the deal prompted a volatile trading session on Tuesday in the heaviest volumes for front-month U.S. crude futures since Nov. 30, 2016. The United States will likely re-impose sanctions against Iran after 180 days, unless some other agreement is reached. Brent crude futures rose $2.36, or 3.2 percent, to settle at $77.21 a barrel. The global benchmark hit a session high of $77.43, the highest since November 2014. U.S. West Texas Intermediate (WTI) crude futures rose $2.08 to settle at $71.14 a barrel, a 3-percent gain. Both contracts notched their biggest daily percentage gain in a month. Prices extended gains after U.S. Energy Information Administration data showed domestic crude inventories fell 2.2 million barrels in the latest week, far exceeding forecasts for a decrease of 719,000 barrels. Net U.S. crude imports fell last week by 955,000 barrels per day to 5.4 million bpd, the lowest since mid-February, the EIA data showed. U.S. gasoline futures hit a high of $2.1701 a gallon, the highest since Hurricane Harvey sent prices surging in August. U.S. heating oil futures surged to $2.2258 a gallon, the highest since February 2015. "A whopping drop in imports has resulted in a moderate draw to crude stocks, while a drop in both gasoline and distillates inventories round out a broadly supportive report," said Matt Smith, director of commodity research at ClipperData. Oil ministers from Saudi Arabia and Kuwait said their countries will work closely with major OPEC and non-OPEC producers to lessen the impact of any supply shortages after U.S. withdrawal from the Iran nuclear deal. Iran re-emerged as a major oil exporter in 2016 after international sanctions against it were lifted in return for curbs on its nuclear programme. The country, the third-biggest producer of crude within the Organization of the Petroleum Exporting Countries, exported about 2.6 million barrels per day (bpd) in April. Analysts' estimates of the possible reduction in Iranian crude supplies as a result of any new U.S. sanctions range from 200,000 bpd to 1 million bpd. Investment bank Goldman Sachs said in a note that Trump's announcement brought upside risks to its forecast that Brent crude will hit $82.50 a barrel by the summer. Several refiners in Asia said they were seeking alternatives to Iranian supplies. A number of countries have already cut reliance on Iranian oil, as well as other "traditional" sources of supply, due to a surge in cheaper U.S. crude exports. Volumes jumped for all key crude oil futures contracts as investors took new positions and refiners hedged to protect themselves from higher feedstock prices.

Oil jumps 3% after US quits Iran deal, US stock drawdown

Saudi Arabia, the world's <a href="http://www.wionews.com/india-news/oil-prices-push-higher-after-us-walks-away-from-iran-nuclear-deal-135594">largest oil exporter, has said it </a>will take all necessary measures to prevent supply shortages following the US withdrawal from the Iran nuclear deal.

"The kingdom will work with major oil producers within and outside OPEC, and with major consumers as well to limit the impact of any shortages in supplies," the Saudi energy ministry said in a statement late Tuesday.

The kingdom's assurance came just hours after US President Donald Trump announced the United States was withdrawing from the landmark nuclear deal between world powers and Iran.

Trump also reinstated US sanctions which could curtail Iran's ability to export oil, its mainstay for public revenues.

Before international sanctions were lifted following the nuclear deal in late 2015, Iran's crude exports stood at just one million barrels per day, mostly to Asia and European countries.

That figure has since soared to 2.5 million bpd.

Saudi Arabia currently pumps around 10 million bpd, but has the&nbspcapacity of around 12 million bpd&nbsp- a surplus of two million bpd.

"The kingdom of Saudi Arabia is committed to support the stability of the global oil markets to serve the interests of both producers and consumers and also the sustainability of global economic growth," the ministry statement said.

Major oil producers from OPEC and non-OPEC members including Russia, the world's top producer, are linked to a deal until the end of the year to cut output by 1.8 million bpd to support prices.

Oil prices made key gains after Trump's announcement with Brent crude rising 2.4 percent to over $76.5 a barrel and US crude trading above $70 early Wednesday. 
&nbsp

The kingdom's assurance came just hours after US President Donald Trump announced the United States was withdrawing from the landmark nuclear deal

Saudi Arabia, the world's largest oil exporter, has said it will take all necessary measures to prevent supply shortages following the US withdrawal from the Iran nuclear deal. "The kingdom will work with major oil producers within and outside OPEC, and with major consumers as well to limit the impact of any shortages in supplies," the Saudi energy ministry said in a statement late Tuesday. The kingdom's assurance came just hours after US President Donald Trump announced the United States was withdrawing from the landmark nuclear deal between world powers and Iran. Trump also reinstated US sanctions which could curtail Iran's ability to export oil, its mainstay for public revenues. Before international sanctions were lifted following the nuclear deal in late 2015, Iran's crude exports stood at just one million barrels per day, mostly to Asia and European countries. That figure has since soared to 2.5 million bpd. Saudi Arabia currently pumps around 10 million bpd, but has the&nbspcapacity of around 12 million bpd - a surplus of two million bpd. "The kingdom of Saudi Arabia is committed to support the stability of the global oil markets to serve the interests of both producers and consumers and also the sustainability of global economic growth," the ministry statement said. Major oil producers from OPEC and non-OPEC members including Russia, the world's top producer, are linked to a deal until the end of the year to cut output by 1.8 million bpd to support prices. Oil prices made key gains after Trump's announcement with Brent crude rising 2.4 percent to over $76.5 a barrel and US crude trading above $70 early Wednesday.

Will ensure no oil shortage: Saudi Arabia

Oil prices pushed higher in early trading on Wednesday after <a href="http://www.wionews.com/world/trump-pulls-out-of-iran-nuclear-deal-reimposes-us-sanctions-135588">US President Donald Trump walked away</a> from an international nuclear deal with Iran, a move that may curb the OPEC member's crude exports in an already tight market.

Trump on Tuesday pulled the United States out of an international nuclear deal with Iran that was agreed in late 2015, raising the <a href="http://www.wionews.com/world/donald-trumps-decision-on-iran-is-psychological-warfare-iran-president--135593">risk of conflict in the Middle East </a>and casting uncertainty over global oil supplies.

Brent crude oil futures were at $76.21 per barrel at 0005 GMT, up $1.36, or 1.8 percent from their last close and not far off Monday's $76.34, the highest since late 2014.

US&nbsp;West Texas Intermediate (WTI) crude futures were up $1.18 per barrel, or 1.7 percent, at $70.24 a barrel, also close to highs last seen in late 2014.

"The big event of the night was President Trump`s cancelling of the nuclear deal made with Iran back in 2015. Sanctions will, therefore (likely) be reimposed on Iran, which will ultimately affect Iran's oil exports," said William O`Loughlin, investment analyst at Australia`s Rivkin Securities.

Iran re-emerged as a major oil exporter in 2016 after international sanctions against it were lifted in return for curbs on Iran`s nuclear programme, with its April exports standing at 2.6 million barrels per day (bpd).

This makes Iran the third biggest exporter of crude within the Organization of the Petroleum Exporting Countries (OPEC), behind Saudi Arabia and Iraq.

Walking away from the deal means that the United States will likely re-impose sanctions against Iran after 180 days unless some other agreement is reached before then.

ANZ bank said Trump`s decision "puts into place a scenario that could see the crude oil market tighten significantly in H2 2018 and into next year."

Iran's exports of oil to Asia and Europe will almost certainly decline later this year and into 2019 as some nations seek alternatives in order to avoid trouble with Washington and as sanctions start to bite.

Despite this, it is not yet clear, how strongly global oil markets will be affected.

The United States buys no Iranian oil, while the other signatories of the agreement, Russia, Britain, France and Germany, are opposed to ending the agreement, and may continue to buy Iranian crude.

Asia, by far the biggest importer of oil from Iran, will likely continue to take in some supplies as well, as it did during the previous round of sanctions.

"There are worries that Iran`s oil exports could fall by about 1 million barrels per day (bpd) from current levels," said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting in Tokyo.

"The oil supply/demand balance is roughly in balance now, but it could turn to a complete supply shortage (in case of new supply curbs). Oil prices could rise at least $10 (a barrel), with Brent approaching near $90," he said.

Walking away from the deal means that the United States will likely re-impose sanctions against Iran after 180 days unless some other agreement is reached before then.

Oil prices pushed higher in early trading on Wednesday after US President Donald Trump walked away from an international nuclear deal with Iran, a move that may curb the OPEC member's crude exports in an already tight market. Trump on Tuesday pulled the United States out of an international nuclear deal with Iran that was agreed in late 2015, raising the risk of conflict in the Middle East and casting uncertainty over global oil supplies. Brent crude oil futures were at $76.21 per barrel at 0005 GMT, up $1.36, or 1.8 percent from their last close and not far off Monday's $76.34, the highest since late 2014. US West Texas Intermediate (WTI) crude futures were up $1.18 per barrel, or 1.7 percent, at $70.24 a barrel, also close to highs last seen in late 2014. "The big event of the night was President Trump`s cancelling of the nuclear deal made with Iran back in 2015. Sanctions will, therefore (likely) be reimposed on Iran, which will ultimately affect Iran's oil exports," said William O`Loughlin, investment analyst at Australia`s Rivkin Securities. Iran re-emerged as a major oil exporter in 2016 after international sanctions against it were lifted in return for curbs on Iran`s nuclear programme, with its April exports standing at 2.6 million barrels per day (bpd). This makes Iran the third biggest exporter of crude within the Organization of the Petroleum Exporting Countries (OPEC), behind Saudi Arabia and Iraq. Walking away from the deal means that the United States will likely re-impose sanctions against Iran after 180 days unless some other agreement is reached before then. ANZ bank said Trump`s decision "puts into place a scenario that could see the crude oil market tighten significantly in H2 2018 and into next year." Iran's exports of oil to Asia and Europe will almost certainly decline later this year and into 2019 as some nations seek alternatives in order to avoid trouble with Washington and as sanctions start to bite. Despite this, it is not yet clear, how strongly global oil markets will be affected. The United States buys no Iranian oil, while the other signatories of the agreement, Russia, Britain, France and Germany, are opposed to ending the agreement, and may continue to buy Iranian crude. Asia, by far the biggest importer of oil from Iran, will likely continue to take in some supplies as well, as it did during the previous round of sanctions. "There are worries that Iran`s oil exports could fall by about 1 million barrels per day (bpd) from current levels," said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting in Tokyo. "The oil supply/demand balance is roughly in balance now, but it could turn to a complete supply shortage (in case of new supply curbs). Oil prices could rise at least $10 (a barrel), with Brent approaching near $90," he said.

Oil prices push higher after US walks away from Iran nuclear deal

Oil prices surged nearly three per cent on Wednesday, reaching fresh 3.5-year highs after President Donald Trump pulled the United States out of the Iran nuclear deal, resulting in sanctions on the Islamic Republic's crude exports.

Both main crude contracts had already been rising in recent weeks, hitting 3.5-year highs, on expectations Trump was going to withdraw from the 2015 pact that had opened up Tehran's atomic programme in return for an easing of sanctions.

"The geopolitical repercussions of this decision will no doubt be widely felt, and due to as many as one million barrels of crude supply per day being effectively taken off the market when these sanctions are enforced, it represents a large supply-side shock for crude and this has driven the price up to its highest level since 2014," said David Cheetham, chief market analyst at traders XTB.

Benchmark oil contract Brent North Sea crude hit $77.20 dollars Wednesday, the highest level since November 2014. New York's WTI contract reached $71.17 -- also the highest for 3.5 years.

Oil's surge helped lift shares prices in energy majors, with Royal Dutch Shell and BP up more than two percent approaching midday in London.

"Both these firms have seen their share price rise to its highest level in several years," said Cheetham.

"The gains have boosted the broader index with the FTSE 100 close to its highest level since January.&nbsp

"The oil-and-gas sector accounts for roughly one-sixth of the benchmark, and the recent gains in this area are lifting the whole index," he added.

Saudi Arabia, the world's largest oil exporter, has meanwhile said it will take all necessary measures to prevent supply shortages.

Trump reinstated US sanctions which could curtail Iran's ability to export oil, its mainstay for public revenues.

US withdrawal from the accord, which had been agreed by Britain, China, Germany, Russia and the Obama administration -- was confirmed as Trump called it "defective at its core".

Iran's President Hassan Rouhani said his country could resume uranium enrichment "without limit" but would discuss its response with the other signatories before making a decision.

With the move already priced into markets, oil's main contracts, Brent and WTI, sank soon after Tuesday's announcement, with some commentators suggesting Trump could still pedal back on some of his rhetoric and shift to a more diplomatic tone.

However, they bounced back strongly in Asian deals Wednesday. There was talk that crude could continue rising to $80 a barrel, with gains helped also by uncertainty in oil-rich Venezuela, an OPEC-Russia output cap, improving global demand and data pointing to a drop in US energy stockpiles.

Key figures around 1015 GMT

Oil - Brent North Sea: UP $2.10 at $76.95 per barrel

Oil - West Texas Intermediate: UP $1.98 at $71.04&nbsp

London - FTSE 100: UP 0.5 percent at 7,605.94 points&nbsp

Frankfurt - DAX 30: UP 0.3 percent at 12,956.40&nbsp

Paris - CAC 40: UP 0.1 percent at 5,526.37&nbsp

EURO STOXX 50: UP 0.3 percent at 3,569.14

Tokyo - Nikkei 225: DOWN 0.4 percent at 22,408.88 (close)

Hong Kong - Hang Seng: UP 0.4 percent at 30,536.14 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,159.15 (close)

New York - Dow: FLAT at 24,360.21 (close)

Euro/dollar: DOWN at $1.1859 from $1.1864 at 2100 GMT

Pound/dollar: DOWN at $1.3535 from $1.3548

Dollar/yen: UP at 109.73 yen from 109.07 yen

Benchmark oil contract Brent North Sea crude hit $77.20 dollars Wednesday, the highest level since November 2014

Oil prices surged nearly three per cent on Wednesday, reaching fresh 3.5-year highs after President Donald Trump pulled the United States out of the Iran nuclear deal, resulting in sanctions on the Islamic Republic's crude exports. Both main crude contracts had already been rising in recent weeks, hitting 3.5-year highs, on expectations Trump was going to withdraw from the 2015 pact that had opened up Tehran's atomic programme in return for an easing of sanctions. "The geopolitical repercussions of this decision will no doubt be widely felt, and due to as many as one million barrels of crude supply per day being effectively taken off the market when these sanctions are enforced, it represents a large supply-side shock for crude and this has driven the price up to its highest level since 2014," said David Cheetham, chief market analyst at traders XTB. Benchmark oil contract Brent North Sea crude hit $77.20 dollars Wednesday, the highest level since November 2014. New York's WTI contract reached $71.17 -- also the highest for 3.5 years. Oil's surge helped lift shares prices in energy majors, with Royal Dutch Shell and BP up more than two percent approaching midday in London. "Both these firms have seen their share price rise to its highest level in several years," said Cheetham. "The gains have boosted the broader index with the FTSE 100 close to its highest level since January. "The oil-and-gas sector accounts for roughly one-sixth of the benchmark, and the recent gains in this area are lifting the whole index," he added. Saudi Arabia, the world's largest oil exporter, has meanwhile said it will take all necessary measures to prevent supply shortages. Trump reinstated US sanctions which could curtail Iran's ability to export oil, its mainstay for public revenues. US withdrawal from the accord, which had been agreed by Britain, China, Germany, Russia and the Obama administration -- was confirmed as Trump called it "defective at its core". Iran's President Hassan Rouhani said his country could resume uranium enrichment "without limit" but would discuss its response with the other signatories before making a decision. With the move already priced into markets, oil's main contracts, Brent and WTI, sank soon after Tuesday's announcement, with some commentators suggesting Trump could still pedal back on some of his rhetoric and shift to a more diplomatic tone. However, they bounced back strongly in Asian deals Wednesday. There was talk that crude could continue rising to $80 a barrel, with gains helped also by uncertainty in oil-rich Venezuela, an OPEC-Russia output cap, improving global demand and data pointing to a drop in US energy stockpiles. Key figures around 1015 GMT Oil - Brent North Sea: UP $2.10 at $76.95 per barrel Oil - West Texas Intermediate: UP $1.98 at $71.04 London - FTSE 100: UP 0.5 percent at 7,605.94 points Frankfurt - DAX 30: UP 0.3 percent at 12,956.40 Paris - CAC 40: UP 0.1 percent at 5,526.37 EURO STOXX 50: UP 0.3 percent at 3,569.14 Tokyo - Nikkei 225: DOWN 0.4 percent at 22,408.88 (close) Hong Kong - Hang Seng: UP 0.4 percent at 30,536.14 (close) Shanghai - Composite: DOWN 0.1 percent at 3,159.15 (close) New York - Dow: FLAT at 24,360.21 (close) Euro/dollar: DOWN at $1.1859 from $1.1864 at 2100 GMT Pound/dollar: DOWN at $1.3535 from $1.3548 Dollar/yen: UP at 109.73 yen from 109.07 yen

Oil prices surge after Trump tears up Iran deal

Key crude oil prices rose by 1 percent to their highest levels since late-2014 on Monday, pushed up by a deepening economic crisis in Venezuela and a looming decision on whether the United States will re-impose sanctions against Iran.

Brent crude oil futures were at $75.57 per barrel at 0650 GMT, up 70 cents, or 0.9 percent, from their last close. Earlier in the session, they touched their highest since November 2014 at $75.89 a barrel.

US&nbsp;West Texas Intermediate (WTI) crude futures rose 70 cents, or 1 percent, to $70.42 per barrel. Monday was the first time since November 2014 that WTI had climbed above $70 per barrel.

Meanwhile, China’s Shanghai crude oil futures, launched in March, broke their dollar-converted record-high of $71.32 per barrel by rising as far as $72.54 on Monday.

Open interest and traded volumes for Shanghai crude also hit a fresh record on Monday.

Analysts warned that the deepening economic crisis in major oil exporter Venezuela threatened to further crimp its production and exports.

Shannon Rivkin, investment director of Australia’s Rivkin Securities, said that oil prices had been driven up due to “growing concerns over the economic collapse of Venezuela and its oil industry, plus possible new sanctions against Iran from the Trump administration”.

US&nbsp;oil firm ConocoPhillips has moved to take key Caribbean assets of Venezuela’s state-run PDVSA to enforce a $2 billion arbitration award, actions that could further impair PDVSA’s declining oil production and exports.

Venezuela’s oil output has halved since the early 2000s to just 1.5 million barrels per day (bpd), as the South American country has failed to invest enough to maintain its petroleum industry.

Beyond Venezuela’s woes, Greg McKenna,&nbsp;chief&nbsp;market strategist at futures brokerage AxiTrader, said “the big story this week is going to be about oil and the Iran Nuclear deal”. Most market participants expect Trump to withdraw from the pact, he said.

Iran re-emerged as a major oil exporter in 2016 after international sanctions against it were lifted in return for curbs on Iran’s nuclear program.

Expressing doubts over Iran’s sincerity, Trump has threatened to walk away from the 2015 agreement by not extending sanctions waivers when they expire on May 12, which would likely result in a reduction of Iran’s oil exports.

Looming over markets, however, is surging U.S. output, which has soared by more than a quarter in the last two years, to 10.62 million bpd.

US&nbsp;output will likely rise further this year, towards or past Russia’s 11 million bpd, as its energy firms keep drilling for more.

US&nbsp;energy companies added nine oil rigs looking for new production in the week to May 4, bringing the total count to 834, the highest level since March 2015, energy services firm Baker Hughes said last Friday.

Analysts warned that the deepening economic crisis in major oil exporter Venezuela threatened to further crimp its production and exports.

Key crude oil prices rose by 1 percent to their highest levels since late-2014 on Monday, pushed up by a deepening economic crisis in Venezuela and a looming decision on whether the United States will re-impose sanctions against Iran. Brent crude oil futures were at $75.57 per barrel at 0650 GMT, up 70 cents, or 0.9 percent, from their last close. Earlier in the session, they touched their highest since November 2014 at $75.89 a barrel. US West Texas Intermediate (WTI) crude futures rose 70 cents, or 1 percent, to $70.42 per barrel. Monday was the first time since November 2014 that WTI had climbed above $70 per barrel. Meanwhile, China’s Shanghai crude oil futures, launched in March, broke their dollar-converted record-high of $71.32 per barrel by rising as far as $72.54 on Monday. Open interest and traded volumes for Shanghai crude also hit a fresh record on Monday. Analysts warned that the deepening economic crisis in major oil exporter Venezuela threatened to further crimp its production and exports. Shannon Rivkin, investment director of Australia’s Rivkin Securities, said that oil prices had been driven up due to “growing concerns over the economic collapse of Venezuela and its oil industry, plus possible new sanctions against Iran from the Trump administration”. US oil firm ConocoPhillips has moved to take key Caribbean assets of Venezuela’s state-run PDVSA to enforce a $2 billion arbitration award, actions that could further impair PDVSA’s declining oil production and exports. Venezuela’s oil output has halved since the early 2000s to just 1.5 million barrels per day (bpd), as the South American country has failed to invest enough to maintain its petroleum industry. Beyond Venezuela’s woes, Greg McKenna, chief market strategist at futures brokerage AxiTrader, said “the big story this week is going to be about oil and the Iran Nuclear deal”. Most market participants expect Trump to withdraw from the pact, he said. Iran re-emerged as a major oil exporter in 2016 after international sanctions against it were lifted in return for curbs on Iran’s nuclear program. Expressing doubts over Iran’s sincerity, Trump has threatened to walk away from the 2015 agreement by not extending sanctions waivers when they expire on May 12, which would likely result in a reduction of Iran’s oil exports. Looming over markets, however, is surging U.S. output, which has soared by more than a quarter in the last two years, to 10.62 million bpd. US output will likely rise further this year, towards or past Russia’s 11 million bpd, as its energy firms keep drilling for more. US energy companies added nine oil rigs looking for new production in the week to May 4, bringing the total count to 834, the highest level since March 2015, energy services firm Baker Hughes said last Friday.

Oil prices reach highest since November 2014 on Venezuela, Iran worries

Oil prices rose about 2 per cent on Friday with US&nbsp;crude hitting its highest in more than three years as global supplies remained tight and the market awaited news from Washington on possible new US&nbsp;sanctions against Iran.

The May 12 deadline for announcements on potential new US&nbsp;sanctions on Iran bolstered the market, said Bob Yawger, director at Mizuho.&nbsp;

"You have the May 12 Iran and Trump headlines that support the market," he said.&nbsp;

US&nbsp;light crude was $1.45 higher at $69.88 per barrel by 12:18 p.m. EDT (1718 GMT), after touching a session high of $69.97, its highest since November 2014. It was on track to gain just over 1.5 per cent on the week.

Brent crude oil was up $1.35 at $74.98 a barrel. The global benchmark hit a 3-1/2-year closing high of $75.17 on Monday. The contract was set to end the week up 0.4 per cent.

Investors are concerned that sanctions against Iran could cut oil supplies.

Iran`s foreign minister said on Thursday that US&nbsp;demands to change its 2015 nuclear agreement with world powers were unacceptable as a deadline set by President Donald Trump for Europeans to "fix" the deal loomed.

Trump has said that unless European allies rectify the "terrible flaws" in the international accord by May 12, he will refuse to extend US&nbsp;sanctions relief for the oil-producing Islamic Republic.

European powers still want to hand Trump a plan to save the Iran nuclear deal next week. But they have also started work on protecting EU-Iranian business ties if the US&nbsp;president makes good on a threat to withdraw.

Iran resumed its role as a major oil exporter in January 2016 when international sanctions against Tehran were lifted in return for curbs on Iran`s nuclear programme.

Aside from security concerns, growing US&nbsp;crude supplies are capping price gains.

Surging production in the Permian shale basin is outpacing pipeline capacity, while local refining issues have exacerbated oversupply in the region.

The United States now produces more crude oil than top exporter Saudi Arabia.

US&nbsp;inventory builds have been bearish for the past two weeks, limiting the market's upside. The weekly rig count from Baker Hughes, an indicator of forward-looking production, is scheduled to be released at 1 pm&nbsp;on Friday.&nbsp;

ANZ analysts Daniel Hynes and Soni Kumari said Brent could reach $80 a barrel by the end of this year, attributing recent strength to rising geopolitical risks and tighter global supply.

"We expect the market to tighten even further in second half 2018," they wrote in a note to clients.

Oil prices rose about 2 per cent on Friday with US crude hitting its highest in more than three years

Oil prices rose about 2 per cent on Friday with US crude hitting its highest in more than three years as global supplies remained tight and the market awaited news from Washington on possible new US sanctions against Iran. The May 12 deadline for announcements on potential new US sanctions on Iran bolstered the market, said Bob Yawger, director at Mizuho. "You have the May 12 Iran and Trump headlines that support the market," he said. US light crude was $1.45 higher at $69.88 per barrel by 12:18 p.m. EDT (1718 GMT), after touching a session high of $69.97, its highest since November 2014. It was on track to gain just over 1.5 per cent on the week. Brent crude oil was up $1.35 at $74.98 a barrel. The global benchmark hit a 3-1/2-year closing high of $75.17 on Monday. The contract was set to end the week up 0.4 per cent. Investors are concerned that sanctions against Iran could cut oil supplies. Iran`s foreign minister said on Thursday that US demands to change its 2015 nuclear agreement with world powers were unacceptable as a deadline set by President Donald Trump for Europeans to "fix" the deal loomed. Trump has said that unless European allies rectify the "terrible flaws" in the international accord by May 12, he will refuse to extend US sanctions relief for the oil-producing Islamic Republic. European powers still want to hand Trump a plan to save the Iran nuclear deal next week. But they have also started work on protecting EU-Iranian business ties if the US president makes good on a threat to withdraw. Iran resumed its role as a major oil exporter in January 2016 when international sanctions against Tehran were lifted in return for curbs on Iran`s nuclear programme. Aside from security concerns, growing US crude supplies are capping price gains. Surging production in the Permian shale basin is outpacing pipeline capacity, while local refining issues have exacerbated oversupply in the region. The United States now produces more crude oil than top exporter Saudi Arabia. US inventory builds have been bearish for the past two weeks, limiting the market's upside. The weekly rig count from Baker Hughes, an indicator of forward-looking production, is scheduled to be released at 1 pm on Friday. ANZ analysts Daniel Hynes and Soni Kumari said Brent could reach $80 a barrel by the end of this year, attributing recent strength to rising geopolitical risks and tighter global supply. "We expect the market to tighten even further in second half 2018," they wrote in a note to clients.

Oil hits highest since November 2014 as Iran tensions mount

Oil prices held steady on Friday after shedding earlier gains, as market jitters kicked in over the prospect of geopolitical risks from possible new US&nbspsanctions against Iran.

US&nbspWest Texas Intermediate (WTI) crude futures were trading 1 cent lower at $68.42 per barrel by 0258 GMT.

Brent crude oil futures were at $73.59 per barrel, down 3 cents, or 0.04 percent, from their last close after touching a intraday high of $73.80 per barrel in early morning trading.

Technical analysis from Reuters' Wang Tao showed the market may retest a price support level at $72.39 per barrel after peaking around a resistance at $75.45.

Friday morning's fluctuations came as investors sifted through the upcoming Iran sanction decision and an increasing US&nbspcrude inventory build for clues.

Iran's foreign minister said on Thursday US&nbspdemands to change its 2015 nuclear agreement with world powers were unacceptable, as a deadline set by President Donald Trump for Europeans to "fix" the deal loomed.

"Current prices reflect a premium for Iran uncertainties. Investors are worried about supplies after Iran took a tough stance in its response to the United States," Wang Xiao, Head of Crude Research with Guotai Junan Futures said, adding prices may fall if expectations for new sanctions ease.

European powers still want to hand Trump a plan to save the Iran nuclear deal next week. But they have also started work on protecting EU-Iranian business ties if the US&nbsppresident makes good on a threat to withdraw, six sources told Reuters.

Markets will remain skittish as the May 12 deadline to rectify the deal approaches, ANZ Research said in note.

Iran resumed its role as a major oil exporter in January 2016 when international sanctions against Tehran were lifted in return for curbs on Iran's nuclear program.

Aside from security concerns, growing US&nbspcrude supplies are capping price gains.

West Texas Intermediate crude for delivery in Midland slid for a fourth day on Thursday to hit its lowest in more than three-and-a-half years. WTI at Midland WTC-WTM traded as much as $14 a barrel below benchmark futures.

Surging production in the Permian basin has continued to outpace pipeline capacity, while local refining issues have exacerbated oversupply in the region, dealers told Reuters.

Multi-year low spot market prices followed US&nbspgovernment data that showed a 6.2-million-barrel jump in crude inventories last week.

The United States now produces more crude oil than top exporter Saudi Arabia.

Friday morning's fluctuations came as investors sifted through the upcoming Iran sanction decision and an increasing US crude inventory build for clues

Oil prices held steady on Friday after shedding earlier gains, as market jitters kicked in over the prospect of geopolitical risks from possible new US&nbspsanctions against Iran. US&nbspWest Texas Intermediate (WTI) crude futures were trading 1 cent lower at $68.42 per barrel by 0258 GMT. Brent crude oil futures were at $73.59 per barrel, down 3 cents, or 0.04 percent, from their last close after touching a intraday high of $73.80 per barrel in early morning trading. Technical analysis from Reuters' Wang Tao showed the market may retest a price support level at $72.39 per barrel after peaking around a resistance at $75.45. Friday morning's fluctuations came as investors sifted through the upcoming Iran sanction decision and an increasing US&nbspcrude inventory build for clues. Iran's foreign minister said on Thursday US&nbspdemands to change its 2015 nuclear agreement with world powers were unacceptable, as a deadline set by President Donald Trump for Europeans to "fix" the deal loomed. "Current prices reflect a premium for Iran uncertainties. Investors are worried about supplies after Iran took a tough stance in its response to the United States," Wang Xiao, Head of Crude Research with Guotai Junan Futures said, adding prices may fall if expectations for new sanctions ease. European powers still want to hand Trump a plan to save the Iran nuclear deal next week. But they have also started work on protecting EU-Iranian business ties if the US&nbsppresident makes good on a threat to withdraw, six sources told Reuters. Markets will remain skittish as the May 12 deadline to rectify the deal approaches, ANZ Research said in note. Iran resumed its role as a major oil exporter in January 2016 when international sanctions against Tehran were lifted in return for curbs on Iran's nuclear program. Aside from security concerns, growing US&nbspcrude supplies are capping price gains. West Texas Intermediate crude for delivery in Midland slid for a fourth day on Thursday to hit its lowest in more than three-and-a-half years. WTI at Midland WTC-WTM traded as much as $14 a barrel below benchmark futures. Surging production in the Permian basin has continued to outpace pipeline capacity, while local refining issues have exacerbated oversupply in the region, dealers told Reuters. Multi-year low spot market prices followed US&nbspgovernment data that showed a 6.2-million-barrel jump in crude inventories last week. The United States now produces more crude oil than top exporter Saudi Arabia.

Oil prices hold steady as US decision on Iran sanctions looms 

As petrol prices shot to a new high, <a href="http://www.wionews.com/india-news/petrol-rises-to-55-month-high-diesel-costliest-ever-131582">petroleum minister Dharmendra Pradhan</a> said it was due to the situation in Syria and US threat of imposing sanctions on Iran.

Petrol prices touched 74.08 per litre in Delhi on Friday at a 5-year high. It rose similarly in other metros - Kolkata, Mumbai and Chennai.

In Kolkata oil prices rose to Rs 76.78 a litre, Mumbai it was Rs 81.93 and in Chennai it surged&nbsp;to Rs 76.85 a litre.

Former finance minister P Chidambaram attacked the central government in a series of tweets saying it was due to 'tax the consumer' policy of the government.

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BJP boasts that it is ruling 22 States. 
Then, why does the BJP government refuse to bring petroleum and petroleum products under GST?
— P. Chidambaram (@PChidambaram_IN) <a href="https://twitter.com/PChidambaram_IN/status/987153561678036992?ref_src=twsrc%5Etfw">April 20, 2018</a></blockquote>
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The Congress leader said: "For the last four years, the BJP government has lived off an oil bonanza. Minus the oil bonanza, the BJP government is clueless and floundering."

"Crude oil price at $ 74 per barrel is still lower than $ 105 four years ago. So, why are petrol/diesel prices higher today than they were in May 2014," he asked in his tweet.

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For the last four years, the BJP government has lived off an oil bonanza. Minus the oil bonanza, the BJP government is clueless and floundering .
— P. Chidambaram (@PChidambaram_IN) <a href="https://twitter.com/PChidambaram_IN/status/987153423828004864?ref_src=twsrc%5Etfw">April 20, 2018</a></blockquote>
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"Then, why does the BJP government refuse to bring petroleum and petroleum products under GST?"

Petroleum minister Dharmendra Pradhan had said earlier that the GST Council should in the "interest of energy security and consumers" include petroleum products in GST.

Petrol, diesel, natural gas, crude oil and jet fuel (ATF) are currently not included in the GST.

Petroleum minister Dharmendra Pradhan had said earlier that the GST Council should in the "interest of energy security and consumers" include petroleum products in GST.

As petrol prices shot to a new high, petroleum minister Dharmendra Pradhan said it was due to the situation in Syria and US threat of imposing sanctions on Iran. Petrol prices touched 74.08 per litre in Delhi on Friday at a 5-year high. It rose similarly in other metros - Kolkata, Mumbai and Chennai. In Kolkata oil prices rose to Rs 76.78 a litre, Mumbai it was Rs 81.93 and in Chennai it surged to Rs 76.85 a litre. Former finance minister P Chidambaram attacked the central government in a series of tweets saying it was due to 'tax the consumer' policy of the government. BJP boasts that it is ruling 22 States. Then, why does the BJP government refuse to bring petroleum and petroleum products under GST? — P. Chidambaram (@PChidambaram_IN) April 20, 2018 × The Congress leader said: "For the last four years, the BJP government has lived off an oil bonanza. Minus the oil bonanza, the BJP government is clueless and floundering." "Crude oil price at $ 74 per barrel is still lower than $ 105 four years ago. So, why are petrol/diesel prices higher today than they were in May 2014," he asked in his tweet. For the last four years, the BJP government has lived off an oil bonanza. Minus the oil bonanza, the BJP government is clueless and floundering . — P. Chidambaram (@PChidambaram_IN) April 20, 2018 × "Then, why does the BJP government refuse to bring petroleum and petroleum products under GST?" Petroleum minister Dharmendra Pradhan had said earlier that the GST Council should in the "interest of energy security and consumers" include petroleum products in GST. Petrol, diesel, natural gas, crude oil and jet fuel (ATF) are currently not included in the GST.

High oil prices due to situation in Syria & US sanctions threat on Iran: Petroleum minister

As oil prices touched a new high today,<a href="http://www.wionews.com/india-news/petrol-rises-to-55-month-high-diesel-costliest-ever-131582"> US President tweeted saying it was </a>"very high" and "will not be accepted", after the president's tweet, Brent and WTI crude prices turned "negative".

"Looks like OPEC is at it again," Trump said.

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Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High! No good and will not be accepted!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/987284041304100864?ref_src=twsrc%5Etfw">April 20, 2018</a></blockquote>
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OPEC-linked countries have been curbing production since last year in order to push up prices. Both Brent crude oil futures and US West Texas Intermediate (WTI) were in trading in positive before Trump's tweet but fell after the president's remark.

"With record amounts of oil all over the place, including the fully loaded ships at sea, oil prices are artificially&nbspvery high! No good and will not be accepted," the president said in his tweet.

OPEC nations headed by Saudia Arabia will meet in June in Vienna to review the oil prices, ahead of the meeting Saudi oil minister Khalid al-Falih said OPEC and its allies were still far away from reaching their target, there are no indication yet that the group will increase production to&nbspbring prices down.

Reuters quoting Saudi sources said it would be happy to see crude rise to $80 or even $100 a barrel.

Joint Technical Committee (JTC) in a report said a global oil glut has been virtually eliminated.

"Global oil demand data so far in 2018 has come in line with our optimistic expectations, with Q1 2018 likely to post the strongest year-on-year growth since Q4 2010 at 2.55 million barrels per day," US bank Goldman Sachs said.

The rise in global oil prices has also been supported by fears of US reintroducing sanctions on Iran which is a key OPEC member. Despite Trump's tweet oil prices are set to close at a record high this week.

Despite Trump's tweet oil prices are set to close at a record high this week.

As oil prices touched a new high today, US President tweeted saying it was "very high" and "will not be accepted", after the president's tweet, Brent and WTI crude prices turned "negative". "Looks like OPEC is at it again," Trump said. Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High! No good and will not be accepted! — Donald J. Trump (@realDonaldTrump) April 20, 2018 × OPEC-linked countries have been curbing production since last year in order to push up prices. Both Brent crude oil futures and US West Texas Intermediate (WTI) were in trading in positive before Trump's tweet but fell after the president's remark. "With record amounts of oil all over the place, including the fully loaded ships at sea, oil prices are artificially&nbspvery high! No good and will not be accepted," the president said in his tweet. OPEC nations headed by Saudia Arabia will meet in June in Vienna to review the oil prices, ahead of the meeting Saudi oil minister Khalid al-Falih said OPEC and its allies were still far away from reaching their target, there are no indication yet that the group will increase production to&nbspbring prices down. Reuters quoting Saudi sources said it would be happy to see crude rise to $80 or even $100 a barrel. Joint Technical Committee (JTC) in a report said a global oil glut has been virtually eliminated. "Global oil demand data so far in 2018 has come in line with our optimistic expectations, with Q1 2018 likely to post the strongest year-on-year growth since Q4 2010 at 2.55 million barrels per day," US bank Goldman Sachs said. The rise in global oil prices has also been supported by fears of US reintroducing sanctions on Iran which is a key OPEC member. Despite Trump's tweet oil prices are set to close at a record high this week.

'Will not be accepted': After Trump's tweet on oil, prices dip

Oil prices rose on Thursday to their highest in over three years as US&nbsp;crude inventories declined and as top exporter Saudi Arabia pushes for higher prices by continuing to withhold supplies.

Brent crude oil futures rallied as high as $74.02 a barrel, the strongest since Nov. 27, 2014, and were at $73.87 per barrel at 0645 GMT, up 39 cents, or 0.5 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures added 28 cents, or 0.4 percent, to $68.75 a barrel. WTI had earlier scaled to $68.95, its best level since Dec. 2, 2014.

"The rally is due to the stock data last night and risk premiums from geopolitical tensions in the Middle East over the last few weeks, but these risk premiums are quite short-lived and investors will likely be normalizing prices lower again as the tensions ease," said OCBC analyst Barnabas Gan.

"I think oil prices are a little elevated in the short-term and we would need to have clear signs for improvement in fundamentals," Gan said, adding the market will be looking for cues from a meeting of oil producers on Friday.

The Organization of the Petroleum Exporting Countries (OPEC) and its partners in a supply reduction pact will meet in Jeddah, Saudi Arabia, on April 20. OPEC will then meet on June 22 to review its oil production policy.

OPEC and other major producers including Russia started to withhold output in 2017 to rein in oversupply that had depressed prices since 2014.

Reuters reported on Wednesday that top oil exporter Saudi Arabia would be happy to see crude rise to $80 or even $100 a barrel, which was seen as a sign that Riyadh will seek no changes to the supply-cutting deal.

"The Saudis and their colleagues in OPEC need higher oil for their fiscal positions and the Kingdom is on a bold – and costly – reform programme. So they might continue to squeeze the lemon while they have the chance," said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

Since the start of the supply cuts, crude inventories have gradually declined from record levels towards long-term average levels.

In the United States, the Energy Information Administration (EIA) said on Wednesday that commercial crude stocks fell by 1.1 million barrels in the week to April 13, to 427.57 million barrels, close to the five-year average level of around 420 million barrels.

Further supporting oil prices is an expectation that the United States will re-introduce sanctions against Iran, OPEC's third-largest producer, which could result in further supply reductions from the Middle East.

 
&nbsp;

Oil prices rose on Thursday to their highest in over three years as US crude inventories declined and as top exporter Saudi Arabia pushes for higher prices by continuing to withhold supplies

Oil prices rose on Thursday to their highest in over three years as US crude inventories declined and as top exporter Saudi Arabia pushes for higher prices by continuing to withhold supplies. Brent crude oil futures rallied as high as $74.02 a barrel, the strongest since Nov. 27, 2014, and were at $73.87 per barrel at 0645 GMT, up 39 cents, or 0.5 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures added 28 cents, or 0.4 percent, to $68.75 a barrel. WTI had earlier scaled to $68.95, its best level since Dec. 2, 2014. "The rally is due to the stock data last night and risk premiums from geopolitical tensions in the Middle East over the last few weeks, but these risk premiums are quite short-lived and investors will likely be normalizing prices lower again as the tensions ease," said OCBC analyst Barnabas Gan. "I think oil prices are a little elevated in the short-term and we would need to have clear signs for improvement in fundamentals," Gan said, adding the market will be looking for cues from a meeting of oil producers on Friday. The Organization of the Petroleum Exporting Countries (OPEC) and its partners in a supply reduction pact will meet in Jeddah, Saudi Arabia, on April 20. OPEC will then meet on June 22 to review its oil production policy. OPEC and other major producers including Russia started to withhold output in 2017 to rein in oversupply that had depressed prices since 2014. Reuters reported on Wednesday that top oil exporter Saudi Arabia would be happy to see crude rise to $80 or even $100 a barrel, which was seen as a sign that Riyadh will seek no changes to the supply-cutting deal. "The Saudis and their colleagues in OPEC need higher oil for their fiscal positions and the Kingdom is on a bold – and costly – reform programme. So they might continue to squeeze the lemon while they have the chance," said Greg McKenna, chief market strategist at futures brokerage AxiTrader. Since the start of the supply cuts, crude inventories have gradually declined from record levels towards long-term average levels. In the United States, the Energy Information Administration (EIA) said on Wednesday that commercial crude stocks fell by 1.1 million barrels in the week to April 13, to 427.57 million barrels, close to the five-year average level of around 420 million barrels. Further supporting oil prices is an expectation that the United States will re-introduce sanctions against Iran, OPEC's third-largest producer, which could result in further supply reductions from the Middle East.

Oil near 3.5-year highs as Saudi backs higher prices, US stocks draw

Oil prices edged off highs last reached in late 2014, pressured by a stronger dollar, but crude futures still drew support from mounting political tension in the Middle East and shrinking global oil inventories.

Brent crude futures were at $71.67 a barrel at 11:48 a.m. EDT (1548 GMT), down 39 cents. US&nbspWTI crude futures were down 13 cents at $66.68.

"The dollar index is the biggest factor in prices today," said Phillip Streible, an analyst at RJO Futures in Chicago. The U.S. dollar was up 0.3 percent against a basket of major currencies, making purchases in other currencies more expensive.

The Organization of the Petroleum Exporting Countries said the global oil stocks surplus was close to evaporating due to healthy demand and its own supply cuts.

The group is producing oil below its targets, meaning the world needs to use stocks to meet rising demand. OPEC said in its monthly report oil stocks in the developed world fell by 17.4 million barrels in February to 2.854 billion barrels, around 43 million barrels above the latest five-year average.

OPEC Secretary-General Mohammad Barkindo told Reuters in New Delhi the global oil glut has effectively shrunk by nine-tenths since the start of 2017.

"We have seen an accelerated shrinkage of stocks in storage from unparalleled highs of about 400 million barrels to about 43 million above the five-year average," Barkindo said.

OPEC, Russia and several other non-OPEC producers began trimming supply in January 2017. Their pact runs until the end of the year and OPEC meets in June to decide on its next course of action.

"There is growing confidence that the declaration of cooperation will be extended beyond 2018," Barkindo told Reuters. "Russia will continue to play a leading role."

On Wednesday, both Brent and WTI hit their highest since late 2014, $73.09 for Brent and $67.45 a barrel for US&nbspcrude, after Saudi Arabia said it intercepted missiles over Riyadh and U.S. President Donald Trump warned of military action in Syria.

The geopolitical developments more than offset pressure from a U.S. government report showing crude oil inventories rose by 3.3 million barrels, while domestic production hit a record 10.53 million barrels per day (bpd).

Brent crude futures were at $71.67 a barrel at 11:48 a.m. EDT (1548 GMT), down 39 cents. U.S. WTI crude futures were down 13 cents at $66.68.

Oil prices edged off highs last reached in late 2014, pressured by a stronger dollar, but crude futures still drew support from mounting political tension in the Middle East and shrinking global oil inventories. Brent crude futures were at $71.67 a barrel at 11:48 a.m. EDT (1548 GMT), down 39 cents. US&nbspWTI crude futures were down 13 cents at $66.68. "The dollar index is the biggest factor in prices today," said Phillip Streible, an analyst at RJO Futures in Chicago. The U.S. dollar was up 0.3 percent against a basket of major currencies, making purchases in other currencies more expensive. The Organization of the Petroleum Exporting Countries said the global oil stocks surplus was close to evaporating due to healthy demand and its own supply cuts. The group is producing oil below its targets, meaning the world needs to use stocks to meet rising demand. OPEC said in its monthly report oil stocks in the developed world fell by 17.4 million barrels in February to 2.854 billion barrels, around 43 million barrels above the latest five-year average. OPEC Secretary-General Mohammad Barkindo told Reuters in New Delhi the global oil glut has effectively shrunk by nine-tenths since the start of 2017. "We have seen an accelerated shrinkage of stocks in storage from unparalleled highs of about 400 million barrels to about 43 million above the five-year average," Barkindo said. OPEC, Russia and several other non-OPEC producers began trimming supply in January 2017. Their pact runs until the end of the year and OPEC meets in June to decide on its next course of action. "There is growing confidence that the declaration of cooperation will be extended beyond 2018," Barkindo told Reuters. "Russia will continue to play a leading role." On Wednesday, both Brent and WTI hit their highest since late 2014, $73.09 for Brent and $67.45 a barrel for US&nbspcrude, after Saudi Arabia said it intercepted missiles over Riyadh and U.S. President Donald Trump warned of military action in Syria. The geopolitical developments more than offset pressure from a U.S. government report showing crude oil inventories rose by 3.3 million barrels, while domestic production hit a record 10.53 million barrels per day (bpd).

Oil dips from 3-year highs but OPEC supply draw supports

Oil markets edged up on Monday on the back of a drop in the number of US rigs drilling for more production and as the US economy continued to create jobs, which industry hopes will drive higher fuel demand.

US West Texas Intermediate (WTI) crude futures were at $62.10 a barrel at 0407 GMT, up 6 cents, or 0.1 per cent.

Brent crude futures were at $65.58 per barrel, up 9 cents, or 0.1 per cent, from their previous close.

&quot;A falling rig count and the strong employment data may have helped support prices,&quot; said William O&#39;Loughlin, investment analyst at Rivkin Securities.

The US economy added the biggest number of jobs in more than 1-1/2 years in February, with non-farm payrolls jumping by 313,000 jobs last month, the Labor Department said on Friday.

In oil markets, US energy companies last week cut oil rigs for the first time in almost two months, with drillers cutting back four rigs, to 796, Baker Hughes energy services firm said on Friday.

Despite the lower rig count, which is an early indicator of future output, activity remains much higher than a year ago when, when just 617 rigs were active, and most analysts expect US crude oil production, which has already risen by over a fifth since mid-2016, to 10.37 million barrels per day (bpd), to rise further.

That&#39;s more than top exporter Saudi Arabia producers and almost as much as Russia pumps out, at nearly 11 million bpd.

Singapore-based brokerage Phillip Futures said that the oil market &quot;will focus on OPEC and IEA (monthly) reports this week for a sensing on global demand/supply levels for crude oil&quot; and that &quot;items in focus will include OECD commercial stock levels, revision in global demand and supply for crude oil and OPEC&#39;s compliance on production levels&quot;.

The Organization of the Petroleum Exporting Countries (OPEC), together with a group of other producers led by Russia, has been withholding production since the start of 2017 to prop up prices.

The US economy continued to create jobs, which industry hopes will drive higher fuel demand

Oil markets edged up on Monday on the back of a drop in the number of US rigs drilling for more production and as the US economy continued to create jobs, which industry hopes will drive higher fuel demand. US West Texas Intermediate (WTI) crude futures were at $62.10 a barrel at 0407 GMT, up 6 cents, or 0.1 per cent. Brent crude futures were at $65.58 per barrel, up 9 cents, or 0.1 per cent, from their previous close. "A falling rig count and the strong employment data may have helped support prices," said William O'Loughlin, investment analyst at Rivkin Securities. The US economy added the biggest number of jobs in more than 1-1/2 years in February, with non-farm payrolls jumping by 313,000 jobs last month, the Labor Department said on Friday. In oil markets, US energy companies last week cut oil rigs for the first time in almost two months, with drillers cutting back four rigs, to 796, Baker Hughes energy services firm said on Friday. Despite the lower rig count, which is an early indicator of future output, activity remains much higher than a year ago when, when just 617 rigs were active, and most analysts expect US crude oil production, which has already risen by over a fifth since mid-2016, to 10.37 million barrels per day (bpd), to rise further. That's more than top exporter Saudi Arabia producers and almost as much as Russia pumps out, at nearly 11 million bpd. Singapore-based brokerage Phillip Futures said that the oil market "will focus on OPEC and IEA (monthly) reports this week for a sensing on global demand/supply levels for crude oil" and that "items in focus will include OECD commercial stock levels, revision in global demand and supply for crude oil and OPEC's compliance on production levels". The Organization of the Petroleum Exporting Countries (OPEC), together with a group of other producers led by Russia, has been withholding production since the start of 2017 to prop up prices.

Oil prices rise up on reduced US drilling, job market

Stock markets rallied in Asia on Tuesday as shock over Donald Trump`s controversial trade tariffs move gave way to hope that any measures will not be as bad as initially thought.

The tycoon sparked fears of a global trade war last week when he unveiled plans to slap levies on imports of steel and aluminum.

The news sent markets into a tailspin from Sydney to New York, with investors already on edge at the prospect of rising interest rates and the end of crisis-era central bank stimulus measures.

However, after another down day in Asia Monday, investors in New York rushed back as they bet that Trump would not push through with extreme protectionist policies.

&quot;Given the overwhelmingly negative response from industry leaders, international financial markets and even the furious backlash from loyal members of Trump`s administration, there is growing optimism that perhaps significant exemptions will be forthcoming,&quot; said Stephen Innes, head of Asia-Pacific trade at OANDA.

&quot;Investors remain guardedly optimistic.&quot;

However, he warned that &quot;expecting for cooler heads to prevail might be far too optimistic given that President Trump promoted reforms of US trade policies as a cornerstone of his election campaign, and it`s challenging to envision him backing down.&quot;

Trump campaigned on a protectionist &quot;America First&quot; platform, promising to pull out of global trade deals which he said were hurting US workers. All three main indexes on Wall Street rose between one and 1.4 per cent Monday and those gains filtered through to Asia on Tuesday.

Tokyo ended 1.8 per cent higher, with Kobe Steel up slightly ahead of a news conference in which its CEO Hiroya Kawasaki resigned following publication of a report by the firm that found staff, including executives, changed or falsified inspection data before shipping products.

Hong Kong jumped 1.9 per cent in the afternoon, while Sydney, Seoul, Singapore, and Taipei were all more than one per cent higher. Shanghai reversed early losses to close one per cent higher.

Attention will now turn to the release Friday of US jobs and wage growth data, which will give a fresh idea of the state of the world`s top economy.

Worries about rising wages fuelling inflation and pushing up interest rates sharply have spooked investors since the start of February.

Tuesday`s more upbeat tone helped the dollar against the yen, which had rallied on its safe-haven status. But the US unit slipped against the pound and euro.

The greenback also declined against high-yielding currencies, with the Australian dollar, Korean won and South African rand among the main winners.

Crude prices extended Monday`s gains on reports of easing US stockpiles and news of a halt at an oilfield in Libya.&nbsp;

Prices were also boosted by bullish comments from top energy producers meeting this week at an annual energy gathering in Houston, analysts said.

&quot;Oil prices were `talked up` from the sidelines of the CERAWeek Energy conference by OPEC,&quot; said Sukrit Vijayakar of Trifecta Consultants.

Officials at the conference are widely expected to address a global supply glut, with surging US shale production threatening to derail efforts by OPEC and Russia to stabilize prices by capping output.

 
Tokyo - Nikkei 225: UP 1.8 per cent at 21,417.76 (close)

 
Hong Kong - Hang Seng: UP 1.9 per cent at 30,451.71

 
Shanghai - Composite: UP 1.0 per cent at 3,289.64 (close)

 
Euro/dollar: UP at $1.2352 from $1.2335 at 2200 GMT

 
Pound/dollar: UP at $1.3850 from $1.3844

 
Dollar/yen: UP at 106.23 yen from 106.18 yen

 
Oil - West Texas Intermediate: UP 15 cents at $62.72 per barrel

 
Oil - Brent North Sea: UP 12 cents at $65.66

 
New York - Dow: UP 1.4 per cent at 24,874.76 (close)

 
London - FTSE 100: UP 0.7 per cent at 7,115.98 (close)

Stock markets rallied in Asia on Tuesday as shock over Donald Trump`s controversial trade tariffs move gave way to hope that any measures will not be as bad as initially thought

Stock markets rallied in Asia on Tuesday as shock over Donald Trump`s controversial trade tariffs move gave way to hope that any measures will not be as bad as initially thought. The tycoon sparked fears of a global trade war last week when he unveiled plans to slap levies on imports of steel and aluminum. The news sent markets into a tailspin from Sydney to New York, with investors already on edge at the prospect of rising interest rates and the end of crisis-era central bank stimulus measures. However, after another down day in Asia Monday, investors in New York rushed back as they bet that Trump would not push through with extreme protectionist policies. "Given the overwhelmingly negative response from industry leaders, international financial markets and even the furious backlash from loyal members of Trump`s administration, there is growing optimism that perhaps significant exemptions will be forthcoming," said Stephen Innes, head of Asia-Pacific trade at OANDA. "Investors remain guardedly optimistic." However, he warned that "expecting for cooler heads to prevail might be far too optimistic given that President Trump promoted reforms of US trade policies as a cornerstone of his election campaign, and it`s challenging to envision him backing down." Trump campaigned on a protectionist "America First" platform, promising to pull out of global trade deals which he said were hurting US workers. All three main indexes on Wall Street rose between one and 1.4 per cent Monday and those gains filtered through to Asia on Tuesday. Tokyo ended 1.8 per cent higher, with Kobe Steel up slightly ahead of a news conference in which its CEO Hiroya Kawasaki resigned following publication of a report by the firm that found staff, including executives, changed or falsified inspection data before shipping products. Hong Kong jumped 1.9 per cent in the afternoon, while Sydney, Seoul, Singapore, and Taipei were all more than one per cent higher. Shanghai reversed early losses to close one per cent higher. Attention will now turn to the release Friday of US jobs and wage growth data, which will give a fresh idea of the state of the world`s top economy. Worries about rising wages fuelling inflation and pushing up interest rates sharply have spooked investors since the start of February. Tuesday`s more upbeat tone helped the dollar against the yen, which had rallied on its safe-haven status. But the US unit slipped against the pound and euro. The greenback also declined against high-yielding currencies, with the Australian dollar, Korean won and South African rand among the main winners. Crude prices extended Monday`s gains on reports of easing US stockpiles and news of a halt at an oilfield in Libya. Prices were also boosted by bullish comments from top energy producers meeting this week at an annual energy gathering in Houston, analysts said. "Oil prices were `talked up` from the sidelines of the CERAWeek Energy conference by OPEC," said Sukrit Vijayakar of Trifecta Consultants. Officials at the conference are widely expected to address a global supply glut, with surging US shale production threatening to derail efforts by OPEC and Russia to stabilize prices by capping output. Tokyo - Nikkei 225: UP 1.8 per cent at 21,417.76 (close) Hong Kong - Hang Seng: UP 1.9 per cent at 30,451.71 Shanghai - Composite: UP 1.0 per cent at 3,289.64 (close) Euro/dollar: UP at $1.2352 from $1.2335 at 2200 GMT Pound/dollar: UP at $1.3850 from $1.3844 Dollar/yen: UP at 106.23 yen from 106.18 yen Oil - West Texas Intermediate: UP 15 cents at $62.72 per barrel Oil - Brent North Sea: UP 12 cents at $65.66 New York - Dow: UP 1.4 per cent at 24,874.76 (close) London - FTSE 100: UP 0.7 per cent at 7,115.98 (close)

Asian markets rally on hopes Trump will temper tariffs threat

Oil prices on Thursday hit their highest since December, 2014, pushed up after U.S. crude inventories posted a 10th straight week of declines and as the dollar continued to weaken.

Brent crude futures, the international benchmark for oil prices, opened at $70.95 a barrel on Thursday, their highest level since early December, 2014. They had edged down to $70.86 by 0105 GMT, which was still up 33 cents, or 0.5 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures climbed to $66.22 per barrel in early trading, also the highest level since early December, 2014. They had dipped back to $66.07 a barrel by 0104 GMT, still up 46 cents, or 0.7 percent, from their last settlement.

Both crude benchmarks are up by almost 60 percent since the middle of last year.

Price support has also been coming from supply restrictions led by a group of producers around the Organization of the Petroleum Exporting Countries (OPEC) and Russia, which started last year and are set to last throughout 2018.

&quot;The Saudi&#39;s and Russians continue to work together to talk the oil market higher and last night, the countries&#39; two oil ministers said they were working together on other longer-term projects as well,&quot; said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

&quot;That, and the USD fall, along with another inventory draw combined to drive (crude) up,&quot; he added.

U.S. crude inventories fell 1.1 million barrels in the week to Jan. 19, to 411.58 million barrels, the Energy Information Administration (EIA) said on Wednesday.

That&#39;s the lowest seasonal level since 2015 and below the U.S. five-year average around 420 million barrels.

In foreign exchange markets, the U.S. dollar hit its lowest level since December, 2014 against a basket of other leading currencies.

A weakening dollar often results in financial traders taking investment out of currency markets and into commodity futures like crude.

Analysts said that rising oil prices would likely start to have an inflationary effect.

&quot;Higher oil prices will eventually be reflected in higher consumer prices as the costs of transport of most goods will rise,&quot; said William O&#39;Loughlin, investment analyst at Australia&#39;s Rivkin Securities.

Looming over the generally bullish oil market has been U.S. oil production, which is edging ever more closely towards 10 million barrels per day (bpd), hitting 9.88 million bpd last week.

U.S. output has grown by more than 17 percent since mid-2016, and is now on par with that of top exporter Saudi Arabia.

Only Russia produces more, averaging 10.98 million bpd in 2017.

US West Texas Intermediate (WTI) crude futures climbed to $66.22 per barrel in early trading, also the highest level since early December, 2014.

Oil prices on Thursday hit their highest since December, 2014, pushed up after U.S. crude inventories posted a 10th straight week of declines and as the dollar continued to weaken. Brent crude futures, the international benchmark for oil prices, opened at $70.95 a barrel on Thursday, their highest level since early December, 2014. They had edged down to $70.86 by 0105 GMT, which was still up 33 cents, or 0.5 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures climbed to $66.22 per barrel in early trading, also the highest level since early December, 2014. They had dipped back to $66.07 a barrel by 0104 GMT, still up 46 cents, or 0.7 percent, from their last settlement. Both crude benchmarks are up by almost 60 percent since the middle of last year. Price support has also been coming from supply restrictions led by a group of producers around the Organization of the Petroleum Exporting Countries (OPEC) and Russia, which started last year and are set to last throughout 2018. "The Saudi's and Russians continue to work together to talk the oil market higher and last night, the countries' two oil ministers said they were working together on other longer-term projects as well," said Greg McKenna, chief market strategist at futures brokerage AxiTrader. "That, and the USD fall, along with another inventory draw combined to drive (crude) up," he added. U.S. crude inventories fell 1.1 million barrels in the week to Jan. 19, to 411.58 million barrels, the Energy Information Administration (EIA) said on Wednesday. That's the lowest seasonal level since 2015 and below the U.S. five-year average around 420 million barrels. In foreign exchange markets, the U.S. dollar hit its lowest level since December, 2014 against a basket of other leading currencies. A weakening dollar often results in financial traders taking investment out of currency markets and into commodity futures like crude. Analysts said that rising oil prices would likely start to have an inflationary effect. "Higher oil prices will eventually be reflected in higher consumer prices as the costs of transport of most goods will rise," said William O'Loughlin, investment analyst at Australia's Rivkin Securities. Looming over the generally bullish oil market has been U.S. oil production, which is edging ever more closely towards 10 million barrels per day (bpd), hitting 9.88 million bpd last week. U.S. output has grown by more than 17 percent since mid-2016, and is now on par with that of top exporter Saudi Arabia. Only Russia produces more, averaging 10.98 million bpd in 2017.

Oil hits highest since late 2014 on US crude inventory drop, weaker dollar

Oil prices fell for a sixth day on Friday after Iran announced plans to boost production and U.S. crude output hit record highs, adding to concerns about a sharp rise in global supplies.

The falls come amid a rout in global share markets as inflation fears grip investors.

Brent futures were down 44 cents or 0.7 percent, at $64.37 a barrel by around 0700 GMT. On Thursday, Brent fell 1.1 percent to its lowest close since Dec. 20.

U.S. West Texas Intermediate (WTI) crude was down 62 cents, or 1 percent, at $60.53 a barrel, having settled down 1 percent in the previous session at its lowest close since Jan. 2.

Both contracts have fallen more than 9 percent from this year&#39;s high point in late January.

&quot;Bets on further rising oil and metals prices, for example by hedge funds, have climbed to excessively bullish levels,&quot; said Carsten Menke, commodities research analyst at Swiss Bank Julius Baer.

&quot;We see oil prices dropping towards and below $60 per barrel,&quot; he said.

OPEC member Iran on Thursday announced plans to increase production within the next four years by at least 700,000 barrels a day.

Meanwhile, the U.S. Energy Information Administration (EIA) this week said crude production last week rose to a record high of 10.25 million barrels per day (bpd).

At that level, U.S. production would overtake the current output in Saudi Arabia, the biggest producer in the Organization of the Petroleum Exporting Countries (OPEC).

OPEC and other producers, including Russia, have cut production since January 2017 to force down global inventories, but these cuts have been offset by rising U.S. oil production.

China plans to launch its long-awaited crude oil futures contract on March 26, two sources familiar with the situation said on Friday, a move that will potentially shake up the pricing of the world&#39;s largest commodity market.

The launch next month will mark the end of a push to create Asia&#39;s first oil futures benchmark, which would give China more clout in pricing crude in the region and a share of the trillions of dollars in the oil futures trade.

OPEC member Iran on Thursday announced plans to increase production within the next four years by at least 700,000 barrels a day.

Oil prices fell for a sixth day on Friday after Iran announced plans to boost production and U.S. crude output hit record highs, adding to concerns about a sharp rise in global supplies. The falls come amid a rout in global share markets as inflation fears grip investors. Brent futures were down 44 cents or 0.7 percent, at $64.37 a barrel by around 0700 GMT. On Thursday, Brent fell 1.1 percent to its lowest close since Dec. 20. U.S. West Texas Intermediate (WTI) crude was down 62 cents, or 1 percent, at $60.53 a barrel, having settled down 1 percent in the previous session at its lowest close since Jan. 2. Both contracts have fallen more than 9 percent from this year's high point in late January. "Bets on further rising oil and metals prices, for example by hedge funds, have climbed to excessively bullish levels," said Carsten Menke, commodities research analyst at Swiss Bank Julius Baer. "We see oil prices dropping towards and below $60 per barrel," he said. OPEC member Iran on Thursday announced plans to increase production within the next four years by at least 700,000 barrels a day. Meanwhile, the U.S. Energy Information Administration (EIA) this week said crude production last week rose to a record high of 10.25 million barrels per day (bpd). At that level, U.S. production would overtake the current output in Saudi Arabia, the biggest producer in the Organization of the Petroleum Exporting Countries (OPEC). OPEC and other producers, including Russia, have cut production since January 2017 to force down global inventories, but these cuts have been offset by rising U.S. oil production. China plans to launch its long-awaited crude oil futures contract on March 26, two sources familiar with the situation said on Friday, a move that will potentially shake up the pricing of the world's largest commodity market. The launch next month will mark the end of a push to create Asia's first oil futures benchmark, which would give China more clout in pricing crude in the region and a share of the trillions of dollars in the oil futures trade.

Oil falls for sixth day as supply fears mount

A day after Arun Jaitley tabled the Economic Survey in parliament ahead of the Union Budget, Chief economic advisor Arvind Subramanian spoke about various topics namely GST, oil prices and gender&nbsp;inequality.

India&#39;s chief economic advisor said that there is a recovery in the economy of the country and hoped for further growth. However, growth depends on various other factors, he said.

Arvind Subramanian on Economy

- Recovery is underway in the economy.

- We hope that growth will get a boost.

- Growth depends on many factors.

- Export can get a boost.

- GST is no longer bearing the burden of note ban.

Arvind Subramanian on Petroleum Products

- Petroleum products need to be brought under GST.

- Oil prices are increasing steadily.

- Demand for bringing GST in prices increased due to rising prices.

- Oil prices will come down after coming into GST

- When petroleum comes into GST, the government&#39;s revenue will decrease.

Arvind Subramanian on GST

-Revenue growth from GST has been quite good.

- The picture will be clear&nbsp;in one or two quarters.

- Further changes in GST expected.

- Power, oil may be brought under GST.

- Will consider simplifying the GST rate structure.

Arvind Subramanian on Gender Issue

- Gender inequality is very high in society

- In the love of sons, people keep having daughters

- Because of this, 21 million unwanted daughters were born

- There is an environment of discrimination against girls in society

Arvind Subramanian on &quot;Ease of Doing Business&quot;

- There will be more work in many areas.

- The judicial system needs to improve.

- There are too many cases pending in the court today.

- It directly has an impact on the &quot;ease of doing business&quot;.

- There are many cases of income tax pending in court.

Arvind Subramanian on private&nbsp;investment

- There are several reasons why private investment does not grow.

- Many private companies borrowed a lot.

- Government is taking several steps to improve it.

- Many cases of non-repayment of loans were sent to NCLT.

- The government also focused on the recap of banks.

Arvind Subramanian on Growth

- GDP growth is expected to be 7-7.5% in FY19.

- A lot depends on world growth.

- Crude prices upsetting equation.

Arvind Subramanian on Agriculture

- Our focus will be on the betterment of the agriculture sector.

- It is important to improve the condition of farmers.

Subramanian said the that there is a recovery in the economy of the country and hoped for further growth

A day after Arun Jaitley tabled the Economic Survey in parliament ahead of the Union Budget, Chief economic advisor Arvind Subramanian spoke about various topics namely GST, oil prices and gender inequality. India's chief economic advisor said that there is a recovery in the economy of the country and hoped for further growth. However, growth depends on various other factors, he said. Arvind Subramanian on Economy - Recovery is underway in the economy. - We hope that growth will get a boost. - Growth depends on many factors. - Export can get a boost. - GST is no longer bearing the burden of note ban. Arvind Subramanian on Petroleum Products - Petroleum products need to be brought under GST. - Oil prices are increasing steadily. - Demand for bringing GST in prices increased due to rising prices. - Oil prices will come down after coming into GST - When petroleum comes into GST, the government's revenue will decrease. Arvind Subramanian on GST -Revenue growth from GST has been quite good. - The picture will be clear in one or two quarters. - Further changes in GST expected. - Power, oil may be brought under GST. - Will consider simplifying the GST rate structure. Arvind Subramanian on Gender Issue - Gender inequality is very high in society - In the love of sons, people keep having daughters - Because of this, 21 million unwanted daughters were born - There is an environment of discrimination against girls in society Arvind Subramanian on "Ease of Doing Business" - There will be more work in many areas. - The judicial system needs to improve. - There are too many cases pending in the court today. - It directly has an impact on the "ease of doing business". - There are many cases of income tax pending in court. Arvind Subramanian on private investment - There are several reasons why private investment does not grow. - Many private companies borrowed a lot. - Government is taking several steps to improve it. - Many cases of non-repayment of loans were sent to NCLT. - The government also focused on the recap of banks. Arvind Subramanian on Growth - GDP growth is expected to be 7-7.5% in FY19. - A lot depends on world growth. - Crude prices upsetting equation. Arvind Subramanian on Agriculture - Our focus will be on the betterment of the agriculture sector. - It is important to improve the condition of farmers.

Chief economic advisor Arvind Subramanian on GST, oil prices & ease of doing business

US&nbsp;oil prices hit their highest since 2015 again on Tuesday as speculators bet on further price rises amid OPEC-led production cuts and a dip in American drilling activity.

US&nbsp;West Texas Intermediate (WTI) crude futures were at $62.13 a barrel at 0123 GMT - 40 cents, or 0.65 percent, above their last settlement. They marked a May-2015 high of $62.56 a barrel in early trading.

Beyond that 2015-high, which was a short intra-day spike, Tuesday&#39;s peak was the highest level for WTI since December, 2014, at the start of the oil market slump.

Brent crude futures were at $68.12 a barrel, 34 cents, or 0.5 percent, above their last close. Brent touched $68.27 last week, its strongest since May, 2015.

Traders said prices were mainly being driven by speculative money being poured into crude futures on the notion of a tighter market following a year of production cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia, which are set to last through 2018.

&quot;Speculators continued to increase their net long in ICE Brent ... According to exchange data, speculators increased their position by 4,175 lots to leave them with a record net long of 565,459 lots,&quot; ING bank said in a note.

A slight dip in the amount of rigs in the United States drilling for new oil was supporting WTI, traders said.

The number of rigs drilling for oil fell by 5 to 742 in the week to January 5, according to oil services firm Baker Hughes.

Despite the recent bull run, which has lifted crude prices by more than 10 percent since early December, some warn that markets are getting ahead of themselves.

The US&nbsp;rig-count remains significantly above the low of 316 in June, 2016, and US&nbsp;crude production is expected to break through 10 million barrels per day soon, hitting a level that only Russia and Saudi Arabia have achieved so far.

&quot;US&nbsp;crude oil production is still increasing, so surely this evidences that the system is, once again, becoming even more efficient,&quot; said Matt Stanley, a fuel broker with Freight Investor Services (FIS) in Dubai.

In Asia, the world&#39;s biggest oil consuming region, there were also signs that despite the cuts in crude production, fuel supplies remain ample.

Enjoying good profit margins in 2017, Asian refiners had cranked up processing to a record 23 million bpd by last October.

With profits now down due to higher feedstock crude prices and ample fuel supplies because of last year&#39;s processing binge, Asian refiners have started to reduce output, likely resulting in lower crude orders.

Traders said prices were mainly being driven by speculative money being poured into crude futures on the notion of a tighter market following a year of production cuts

US oil prices hit their highest since 2015 again on Tuesday as speculators bet on further price rises amid OPEC-led production cuts and a dip in American drilling activity. US West Texas Intermediate (WTI) crude futures were at $62.13 a barrel at 0123 GMT - 40 cents, or 0.65 percent, above their last settlement. They marked a May-2015 high of $62.56 a barrel in early trading. Beyond that 2015-high, which was a short intra-day spike, Tuesday's peak was the highest level for WTI since December, 2014, at the start of the oil market slump. Brent crude futures were at $68.12 a barrel, 34 cents, or 0.5 percent, above their last close. Brent touched $68.27 last week, its strongest since May, 2015. Traders said prices were mainly being driven by speculative money being poured into crude futures on the notion of a tighter market following a year of production cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia, which are set to last through 2018. "Speculators continued to increase their net long in ICE Brent ... According to exchange data, speculators increased their position by 4,175 lots to leave them with a record net long of 565,459 lots," ING bank said in a note. A slight dip in the amount of rigs in the United States drilling for new oil was supporting WTI, traders said. The number of rigs drilling for oil fell by 5 to 742 in the week to January 5, according to oil services firm Baker Hughes. Despite the recent bull run, which has lifted crude prices by more than 10 percent since early December, some warn that markets are getting ahead of themselves. The US rig-count remains significantly above the low of 316 in June, 2016, and US crude production is expected to break through 10 million barrels per day soon, hitting a level that only Russia and Saudi Arabia have achieved so far. "US crude oil production is still increasing, so surely this evidences that the system is, once again, becoming even more efficient," said Matt Stanley, a fuel broker with Freight Investor Services (FIS) in Dubai. In Asia, the world's biggest oil consuming region, there were also signs that despite the cuts in crude production, fuel supplies remain ample. Enjoying good profit margins in 2017, Asian refiners had cranked up processing to a record 23 million bpd by last October. With profits now down due to higher feedstock crude prices and ample fuel supplies because of last year's processing binge, Asian refiners have started to reduce output, likely resulting in lower crude orders.

US oil prices hit highest since 2015, but doubts loom over rally

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