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

Oil prices on Wednesday slipped away from two-and-a-half year highs hit the previous session as the gradual resumption of flows through a major North Sea pipeline made up for supply disruption in Libya.

But the two outages in quick succession have highlighted how much tighter global oil markets have become a year into supply cuts led by OPEC and Russia.

US West Texas Intermediate (WTI) crude futures were at $59.73 a barrel at 0421 GMT, down 24 cents from their last settlement. WTI broke through $60 a barrel for the first time since June 2015 in the previous session.

Brent crude futures were at $66.71 a barrel, down 31 cents after breaking through $67 for the first time since May 2015 the previous day.

&quot;Crude spiked sharply in reaction to an explosion at a Libyan pipeline...(but) the price spike came with light volumes as London was closed for Boxing Day,&quot; said Sukrit Vijayakar, director of energy consultancy Trifecta.

Libya lost around 90,000 barrels per day (bpd) of crude oil supplies from a blast on a pipeline feeding Es Sider port on Tuesday.

Wednesday&#39;s dips were a result of the gradual return of the 450,000 bpd capacity Forties pipeline system in the North Sea. Flows through Forties will return to normal early in the New Year, operator Ineos said.

Both the Forties and Libyan outages, which together amount to around 500,000 bpd, are small in a global context where both production and demand are approaching 100 million bpd.

But the disruptions highlight that markets have tightened significantly a year into voluntary supply restraint led by top producer Russia and the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC).

Data from the US Energy Information Administration (EIA) shows that following rampant oversupply in 2015, global oil markets gradually came into balance by 2016 and started to show a slight supply deficit this year, resulting in a reduction of global fuel inventories.

EIA data implies a slight supply shortfall of 180,000 bpd for the first quarter of 2018.

OPEC and Russia started withholding production last January, and the current schedule is to continue cutting throughout 2018.

A major factor countering efforts by OPEC and Russia efforts to prop up prices is US oil production, which has soared more than 16 percent since mid-2016 and is fast approaching 10 million bpd.

Only OPEC king-pin Saudi Arabia and Russia produce more.

The latest US production figures are due to be published by the EIA on Thursday.

Wednesday's dips were a result of the gradual return of the 450,000 bpd capacity Forties pipeline system in the North Sea.

Oil prices on Wednesday slipped away from two-and-a-half year highs hit the previous session as the gradual resumption of flows through a major North Sea pipeline made up for supply disruption in Libya. But the two outages in quick succession have highlighted how much tighter global oil markets have become a year into supply cuts led by OPEC and Russia. US West Texas Intermediate (WTI) crude futures were at $59.73 a barrel at 0421 GMT, down 24 cents from their last settlement. WTI broke through $60 a barrel for the first time since June 2015 in the previous session. Brent crude futures were at $66.71 a barrel, down 31 cents after breaking through $67 for the first time since May 2015 the previous day. "Crude spiked sharply in reaction to an explosion at a Libyan pipeline...(but) the price spike came with light volumes as London was closed for Boxing Day," said Sukrit Vijayakar, director of energy consultancy Trifecta. Libya lost around 90,000 barrels per day (bpd) of crude oil supplies from a blast on a pipeline feeding Es Sider port on Tuesday. Wednesday's dips were a result of the gradual return of the 450,000 bpd capacity Forties pipeline system in the North Sea. Flows through Forties will return to normal early in the New Year, operator Ineos said. Both the Forties and Libyan outages, which together amount to around 500,000 bpd, are small in a global context where both production and demand are approaching 100 million bpd. But the disruptions highlight that markets have tightened significantly a year into voluntary supply restraint led by top producer Russia and the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC). Data from the US Energy Information Administration (EIA) shows that following rampant oversupply in 2015, global oil markets gradually came into balance by 2016 and started to show a slight supply deficit this year, resulting in a reduction of global fuel inventories. EIA data implies a slight supply shortfall of 180,000 bpd for the first quarter of 2018. OPEC and Russia started withholding production last January, and the current schedule is to continue cutting throughout 2018. A major factor countering efforts by OPEC and Russia efforts to prop up prices is US oil production, which has soared more than 16 percent since mid-2016 and is fast approaching 10 million bpd. Only OPEC king-pin Saudi Arabia and Russia produce more. The latest US production figures are due to be published by the EIA on Thursday.

Oil prices slip away from 2015 highs, but market remains tight

The benchmark Sensex today achieved yet another record by scaling 34,087 on the back of a rally in healthcare, power and oil stocks.

Oil prices surged to the highest level since mid-2015, breaching above the USD 60 a barrel, after a pipeline blast in Libya restricted Opec production.

The 30-share Sensex was up 76.71 points, or 0.22 per cent, to scale a new high of 34,087.32, breaching its previous intra-day record of 34,061.88 hit yesterday.

The gauge had gained 254.33 points in the previous two sessions.

The broader Nifty was however flat, up 1.75 points, or 0.01 per cent, at 10,533.25.

Major movers were Sun Pharma, NTPC, ONGC and Tata Motors, gaining up to 2.88 per cent.

Buying by domestic institutional investors continued ahead of December expiry tomorrow.

Asian stocks were mixed today in a holiday-shortened week.

Domestic institutional investors (DIIs) purchased equities worth a net Rs 544.50 crore yesterday while foreign portfolio investors (FPIs) sold shares worth a net Rs 44.07 crore, provisional data showed.

Oil prices surged to the highest level since mid-2015, breaching above the USD 60 a barrel, after a pipeline blast in Libya restricted Opec production.

The benchmark Sensex today achieved yet another record by scaling 34,087 on the back of a rally in healthcare, power and oil stocks. Oil prices surged to the highest level since mid-2015, breaching above the USD 60 a barrel, after a pipeline blast in Libya restricted Opec production. The 30-share Sensex was up 76.71 points, or 0.22 per cent, to scale a new high of 34,087.32, breaching its previous intra-day record of 34,061.88 hit yesterday. The gauge had gained 254.33 points in the previous two sessions. The broader Nifty was however flat, up 1.75 points, or 0.01 per cent, at 10,533.25. Major movers were Sun Pharma, NTPC, ONGC and Tata Motors, gaining up to 2.88 per cent. Buying by domestic institutional investors continued ahead of December expiry tomorrow. Asian stocks were mixed today in a holiday-shortened week. Domestic institutional investors (DIIs) purchased equities worth a net Rs 544.50 crore yesterday while foreign portfolio investors (FPIs) sold shares worth a net Rs 44.07 crore, provisional data showed.

Sensex creates a record at 34,087, oil stocks jump

Asian energy firms extended a global sell-off Wednesday, dragging regional equity markets, as oil prices continued to tumble on the back of warnings of slowing demand and rising stockpiles.

Both main contracts were down more than one percent as investors were spooked after the International Energy Agency (IEA) cut its forecast for crude consumption, saying recovering prices and a mild early winter were weighing on purchases.

The Paris-based group said the sector would likely be oversupplied in the last three months of the year and 2018, while the US industry body announced a huge jump in stockpiles last week.

The news comes after recent gains in crude fuelled by a production cut by the OPEC cartel and a brewing crisis in the Middle East between Saudi Arabia and Iran.

&quot;The long-awaited short-term correction in oil prices finally occurred overnight,&quot; said OANDA senior market analyst Jeffrey Halley.

&quot;Given the bullish run and extended long positioning across commodities in general in recent times, it was only going to (take) one straw to break the camel&#39;s back.&quot;

The losses in oil prices which follow Tuesday&#39;s 1.9 percent fall in WTI and 1.5 percent drop in Brent battered Asian energy firms.

Among the biggest losers, Tokyo-listed Inpex dived 3.7 percent and Japan Petroleum Exploration tumbled 4.2 percent, while PetroChina and CNOOC in Hong Kong each plunged around three percent. Woodside Petroleum sank 1.4 percent in Sydney, while Rio Tinto was 2.7 percent lower.

US tax worries :

The sell-off filtered through to wider stock markets, which have been on a broad decline since hitting multi-year highs last week.

Tokyo plunged 1.6 percent, with a stronger yen and a slight slowdown in Japanese economic growth adding to the waning optimism. The Nikkei had ended at a quarter-century high last Thursday.

Hong Kong lost one percent, Shanghai shed 0.8 percent, Sydney was 0.6 percent off and Singapore gave up 0.8 percent. Seoul eased 0.3 percent, Manila dropped 1.4 percent and Taipei was 0.5 percent lower.

In early European trade, London fell 0.4 percent, Paris sank 0.2 percent and Frankfurt gave up 0.7 percent.

The retreat followed fresh losses on Wall Street, where all three main indexes have succumbed to profit-taking after last week hitting record highs.

US dealers are also concerned about Donald Trump&#39;s tax cuts as Republican lawmakers struggle to agree on a unified plan, which has led to speculation the legislation could fail in a similar way to the healthcare overhaul.

On currency markets, the euro held most of its gains after surging on Tuesday in response to better-than-expected German growth figures. The single currency briefly broke above $1.18 in early trade before easing back slightly.

The pound, however, remains weak on uncertainty about the political future of Britain&#39;s Prime Minister Theresa May as her government struggles along with Brexit talks.

Among the biggest losers, Tokyo-listed Inpex dived 3.7 percent and Japan Petroleum Exploration tumbled 4.2 percent

Asian energy firms extended a global sell-off Wednesday, dragging regional equity markets, as oil prices continued to tumble on the back of warnings of slowing demand and rising stockpiles. Both main contracts were down more than one percent as investors were spooked after the International Energy Agency (IEA) cut its forecast for crude consumption, saying recovering prices and a mild early winter were weighing on purchases. The Paris-based group said the sector would likely be oversupplied in the last three months of the year and 2018, while the US industry body announced a huge jump in stockpiles last week. The news comes after recent gains in crude fuelled by a production cut by the OPEC cartel and a brewing crisis in the Middle East between Saudi Arabia and Iran. "The long-awaited short-term correction in oil prices finally occurred overnight," said OANDA senior market analyst Jeffrey Halley. "Given the bullish run and extended long positioning across commodities in general in recent times, it was only going to (take) one straw to break the camel's back." The losses in oil prices which follow Tuesday's 1.9 percent fall in WTI and 1.5 percent drop in Brent battered Asian energy firms. Among the biggest losers, Tokyo-listed Inpex dived 3.7 percent and Japan Petroleum Exploration tumbled 4.2 percent, while PetroChina and CNOOC in Hong Kong each plunged around three percent. Woodside Petroleum sank 1.4 percent in Sydney, while Rio Tinto was 2.7 percent lower. US tax worries : The sell-off filtered through to wider stock markets, which have been on a broad decline since hitting multi-year highs last week. Tokyo plunged 1.6 percent, with a stronger yen and a slight slowdown in Japanese economic growth adding to the waning optimism. The Nikkei had ended at a quarter-century high last Thursday. Hong Kong lost one percent, Shanghai shed 0.8 percent, Sydney was 0.6 percent off and Singapore gave up 0.8 percent. Seoul eased 0.3 percent, Manila dropped 1.4 percent and Taipei was 0.5 percent lower. In early European trade, London fell 0.4 percent, Paris sank 0.2 percent and Frankfurt gave up 0.7 percent. The retreat followed fresh losses on Wall Street, where all three main indexes have succumbed to profit-taking after last week hitting record highs. US dealers are also concerned about Donald Trump's tax cuts as Republican lawmakers struggle to agree on a unified plan, which has led to speculation the legislation could fail in a similar way to the healthcare overhaul. On currency markets, the euro held most of its gains after surging on Tuesday in response to better-than-expected German growth figures. The single currency briefly broke above $1.18 in early trade before easing back slightly. The pound, however, remains weak on uncertainty about the political future of Britain's Prime Minister Theresa May as her government struggles along with Brexit talks.

Asia's stock falls as oil prices continue to tumble

Oil prices edged up early on Thursday, clawing back some ground after losses in the previous session.

Traders said the market was range-bound as falling crude inventories provided price support while high output was capping gains.

Brent crude futures, the international benchmark for oil prices, were at $50.43 per barrel at 0101 GMT, up 16 cents, or 0.3 per cent, from their last close.

US&nbsp;West Texas Intermediate (WTI) crude futures&nbsp;were at $46.88 a barrel, up 10 cents, or 0.2 per cent.

The slight gains followed a more than 1 per cent fall in the previous session.

Data published late on Wednesday by the Energy Information Administration (EIA) showed that commercial US&nbsp;crude oil stocks have fallen by almost 13 per cent from their peaks in March to 466.5 million barrels, well below this time last year.

&quot;If inventory declines continue at this pace, stocks will fall back below the five-year average in around two months,&quot; said William O&#39;Loughlin, investment analyst at Australia&#39;s Rivkin Securities.

&quot;The pace of the declines indicates that the OPEC production cuts are having an effect, although the current oil price suggests that the market is sceptical about the longer-term prospects for rebalancing of the oil market,&quot; he added.

ANZ bank said the market on Wednesday seemed &quot;to focus on the rise in (US) production&quot;, which jumped by 79,000 barrels per day (bpd) to 9.5 million bpd last week, its highest level since July 2015, and 12.75 per cent above the most recent low in mid-2016.

Some traders said that the soaring US&nbsp;output is eroding efforts by the Organization of the Petroleum Exporting Countries which, together with non-OPEC producers like Russia, has pledged to restrict output by 1.8 million barrels per day (bpd) between January this year and March 2018 to tighten the market and prop up prices.

Brent prices are down by almost 12 per cent since the start of the cuts in January.

Brent crude futures, the international benchmark for oil prices, were at $50.43 per barrel at 0101 GMT, up 16 cents, or 0.3 per cent, from their last close

Oil prices edged up early on Thursday, clawing back some ground after losses in the previous session. Traders said the market was range-bound as falling crude inventories provided price support while high output was capping gains. Brent crude futures, the international benchmark for oil prices, were at $50.43 per barrel at 0101 GMT, up 16 cents, or 0.3 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were at $46.88 a barrel, up 10 cents, or 0.2 per cent. The slight gains followed a more than 1 per cent fall in the previous session. Data published late on Wednesday by the Energy Information Administration (EIA) showed that commercial US crude oil stocks have fallen by almost 13 per cent from their peaks in March to 466.5 million barrels, well below this time last year. "If inventory declines continue at this pace, stocks will fall back below the five-year average in around two months," said William O'Loughlin, investment analyst at Australia's Rivkin Securities. "The pace of the declines indicates that the OPEC production cuts are having an effect, although the current oil price suggests that the market is sceptical about the longer-term prospects for rebalancing of the oil market," he added. ANZ bank said the market on Wednesday seemed "to focus on the rise in (US) production", which jumped by 79,000 barrels per day (bpd) to 9.5 million bpd last week, its highest level since July 2015, and 12.75 per cent above the most recent low in mid-2016. Some traders said that the soaring US output is eroding efforts by the Organization of the Petroleum Exporting Countries which, together with non-OPEC producers like Russia, has pledged to restrict output by 1.8 million barrels per day (bpd) between January this year and March 2018 to tighten the market and prop up prices. Brent prices are down by almost 12 per cent since the start of the cuts in January.

Oil edges up on decline in crude stocks

Oil prices rose to near eight-week highs on Wednesday, with Brent crude futures at over $50 a barrel, as a fall in US&nbsp;inventories bolstered expectations that the long-oversupplied market was moving toward balance.

Brent crude futures&nbsp;were up 58 cents or 1.2 per cent to $50.78 a barrel by 1:59 p.m. EDT (1759 GMT).

US&nbsp;West Texas Intermediate futures rose 68 cents or 1.4 per cent to $48.57 a barrel.

US&nbsp;crude stocks fell last week as refineries hiked output and imports dropped, while gasoline stocks decreased and distillate inventories fell, the Energy Information Administration said on Wednesday.

Crude inventories fell 7.2 million barrels in the week ending July 21, more than the expected decrease of 2.6 million barrels. The decline was the fourth consecutive drop, giving support to the market.

This added to hopes a long-awaited rebalancing was underway in the oil market. Saudi Arabia said on Monday it would limit oil exports to 6.6 million barrels per day (bpd) in August, down nearly 1 million bpd from a year earlier.

&quot;Today&rsquo;s report has strengthened the bullish sentiment already prevailing in the market, although the longevity of the move remains in doubt,&quot; said Abhishek Kumar, Senior Energy Analyst at Interfax Energy&rsquo;s Global Gas Analytics in London. &quot;Nevertheless, the country&rsquo;s crude and gasoline stockpiles remain above their five-year averages, which will cap price gains.&quot;

The drawdown was a combination of higher exports from the United States, marginal decline in oil output and a rise in the refinery utilization rate, he said.

&quot;The market has been tightening and the refinery margins are strong,&quot; said PetroMatrix managing director Olivier Jakob, saying the US&nbsp;stock draw offered a boost to prices. &quot;You add geopolitical risk premium for Venezuela, and you&#39;ve got a strong market.&quot;

Venezuela, an OPEC member producing about 2 million bpd of oil, faces deepening economic woes and protests.

President Nicolas Maduro&#39;s opponents launched a two-day national strike on Wednesday to push him to abandon a weekend election. The United States is considering financial sanctions to halt dollar payments for Venezuelan oil.&nbsp;

Nigerian output slipped this week as leaks forced Shell to shut a pipeline exporting some 180,000 bpd of oil. Nigeria, which has been exempted from OPEC-led production curbs, has agreed to cap or cut output when it stabilised at 1.8 million bpd.

But analysts said the current oil price rally could encourage more production, particularly from the United States.

&quot;Relieved bulls should be careful what they wish for. Any price rebound will only embolden US&nbsp;shale producers at a time when rumours have started to emerge that the US&nbsp;shale boom is slowing,&quot; PVM oil analyst Stephen Brennock said in a note.

US?West Texas Intermediate futures rose 68 cents or 1.4 per cent to $48.57 a barrel

Oil prices rose to near eight-week highs on Wednesday, with Brent crude futures at over $50 a barrel, as a fall in US inventories bolstered expectations that the long-oversupplied market was moving toward balance. Brent crude futures were up 58 cents or 1.2 per cent to $50.78 a barrel by 1:59 p.m. EDT (1759 GMT). US West Texas Intermediate futures rose 68 cents or 1.4 per cent to $48.57 a barrel. US crude stocks fell last week as refineries hiked output and imports dropped, while gasoline stocks decreased and distillate inventories fell, the Energy Information Administration said on Wednesday. Crude inventories fell 7.2 million barrels in the week ending July 21, more than the expected decrease of 2.6 million barrels. The decline was the fourth consecutive drop, giving support to the market. This added to hopes a long-awaited rebalancing was underway in the oil market. Saudi Arabia said on Monday it would limit oil exports to 6.6 million barrels per day (bpd) in August, down nearly 1 million bpd from a year earlier. "Today’s report has strengthened the bullish sentiment already prevailing in the market, although the longevity of the move remains in doubt," said Abhishek Kumar, Senior Energy Analyst at Interfax Energy’s Global Gas Analytics in London. "Nevertheless, the country’s crude and gasoline stockpiles remain above their five-year averages, which will cap price gains." The drawdown was a combination of higher exports from the United States, marginal decline in oil output and a rise in the refinery utilization rate, he said. "The market has been tightening and the refinery margins are strong," said PetroMatrix managing director Olivier Jakob, saying the US stock draw offered a boost to prices. "You add geopolitical risk premium for Venezuela, and you've got a strong market." Venezuela, an OPEC member producing about 2 million bpd of oil, faces deepening economic woes and protests. President Nicolas Maduro's opponents launched a two-day national strike on Wednesday to push him to abandon a weekend election. The United States is considering financial sanctions to halt dollar payments for Venezuelan oil. Nigerian output slipped this week as leaks forced Shell to shut a pipeline exporting some 180,000 bpd of oil. Nigeria, which has been exempted from OPEC-led production curbs, has agreed to cap or cut output when it stabilised at 1.8 million bpd. But analysts said the current oil price rally could encourage more production, particularly from the United States. "Relieved bulls should be careful what they wish for. Any price rebound will only embolden US shale producers at a time when rumours have started to emerge that the US shale boom is slowing," PVM oil analyst Stephen Brennock said in a note.

Oil jumps to near 8-week high after big draw in US crude stocks

Oil&nbsp;prices slipped in Asian trading on Tuesday following a recovery in output at Libya&#39;s largest&nbsp;oil&nbsp;field and as doubts about OPEC-led production cuts continue to drag.

Global benchmark Brent crude futures were down 11 cents, or 0.2 per cent, at $52.26 a barrel at 0629 GMT, after dipping 0.1 per cent in the previous session.

US crude futures were down 7 cents, or 0.1 per cent, at $49.32 a barrel, having fallen 0.4 per cent on Monday.

Production from Libya&#39;s 270,000 barrels-per-day (bpd) Sharara field was returning to normal after a brief disruption when armed protesters broke into a control room in the coastal city of Zawiya, the National&nbsp;Oil&nbsp;Corporation (NOC) said on Monday.

Libya was exempted from a push to cut global production and bolster&nbsp;oil&nbsp;prices led by the Organisation of the Petroleum Exporting Countries (OPEC) and other big producers like Russia.

The recovery of the North African country&#39;s output has complicated OPEC&#39;s efforts to curb supply, fuelling doubts over the effectiveness of the production cuts. Libya churned out 1.03 million bpd in July, according to the latest Reuters survey.

OPEC output hit a 2017-high in July and its exports marked a record.

Still, Saudi Arabia, the world&#39;s biggest&nbsp;oil&nbsp;exporter, plans to cut supplies to most buyers in Asia by as much as 10 per cent in September, sources told Reuters on Tuesday. Asian buyers have been mostly shielded from the cuts until now.

Officials from a joint OPEC and non-OPEC technical committee are meeting in Abu Dhabi on Monday and Tuesday to discuss ways to boost compliance with the deal to cut 1.8 million barrels per day in production.

&quot;Assuming that nothing comes from OPEC/non-OPEC&#39;s technical meeting in Abu Dhabi today, oil&#39;s near term fate will most likely be determined by the official US &nbsp;Department of Energy inventory data tomorrow evening Asia time,&quot; said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore.

The US Energy Information Administration, part of the Energy Department, will release its weekly petroleum status report at 1430 GMT on Wednesday, giving details on stockpiles and refinery runs.

US crude inventories were expected to post their sixth straight weekly decline last week, while refined product stockpiles likely fell too, a preliminary Reuters poll showed on Monday.

Later on Tuesday the American Petroleum Institute, will release its own report on stockpiles and refinery throughput.

Oil&nbsp;output in the United States has remained high, although Baker Hughes data on Friday showed a cut of one drilling rig in the week to Aug. 4.

Elsewhere, crude&nbsp;oil&nbsp;imports to China for the January to July period rose 13.6 per cent from the year ago period to 247 million tonnes, customs data showed on Tuesday.

Production from Libya's 270,000 barrels-per-day (bpd) Sharara field was returning to normal after a brief disruption when armed protesters broke into a control room in the coastal city of Zawiya

Oil prices slipped in Asian trading on Tuesday following a recovery in output at Libya's largest oil field and as doubts about OPEC-led production cuts continue to drag. Global benchmark Brent crude futures were down 11 cents, or 0.2 per cent, at $52.26 a barrel at 0629 GMT, after dipping 0.1 per cent in the previous session. US crude futures were down 7 cents, or 0.1 per cent, at $49.32 a barrel, having fallen 0.4 per cent on Monday. Production from Libya's 270,000 barrels-per-day (bpd) Sharara field was returning to normal after a brief disruption when armed protesters broke into a control room in the coastal city of Zawiya, the National Oil Corporation (NOC) said on Monday. Libya was exempted from a push to cut global production and bolster oil prices led by the Organisation of the Petroleum Exporting Countries (OPEC) and other big producers like Russia. The recovery of the North African country's output has complicated OPEC's efforts to curb supply, fuelling doubts over the effectiveness of the production cuts. Libya churned out 1.03 million bpd in July, according to the latest Reuters survey. OPEC output hit a 2017-high in July and its exports marked a record. Still, Saudi Arabia, the world's biggest oil exporter, plans to cut supplies to most buyers in Asia by as much as 10 per cent in September, sources told Reuters on Tuesday. Asian buyers have been mostly shielded from the cuts until now. Officials from a joint OPEC and non-OPEC technical committee are meeting in Abu Dhabi on Monday and Tuesday to discuss ways to boost compliance with the deal to cut 1.8 million barrels per day in production. "Assuming that nothing comes from OPEC/non-OPEC's technical meeting in Abu Dhabi today, oil's near term fate will most likely be determined by the official US Department of Energy inventory data tomorrow evening Asia time," said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore. The US Energy Information Administration, part of the Energy Department, will release its weekly petroleum status report at 1430 GMT on Wednesday, giving details on stockpiles and refinery runs. US crude inventories were expected to post their sixth straight weekly decline last week, while refined product stockpiles likely fell too, a preliminary Reuters poll showed on Monday. Later on Tuesday the American Petroleum Institute, will release its own report on stockpiles and refinery throughput. Oil output in the United States has remained high, although Baker Hughes data on Friday showed a cut of one drilling rig in the week to Aug. 4. Elsewhere, crude oil imports to China for the January to July period rose 13.6 per cent from the year ago period to 247 million tonnes, customs data showed on Tuesday.

Oil prices slip over Libyan production, OPEC cuts

Oil extended falls on Friday after tumbling in the previous session when OPEC and allied producers extended output cuts but disappointed investors betting on longer or larger supply curbs.

At Thursday&#39;s meeting in Vienna, the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers agreed to extend a pledge to cut around 1.8 million barrels per day (bpd) until the end of the first quarter of 2018. The initial agreement would have expired in June this year.

Crude oil plunged 5 per cent following the announcement, and held its losses early on Friday.

Brent crude futures were at $51.26 per barrel at 0500 GMT, down 20 cents, or 0.4 per cent, from their last close.

US&nbsp;West Texas Intermediate (WTI) crude futures were back below $50, at $48.61, down 29 cents, or 0.6 per cent.

&quot;With Russia and Saudi announcing nine months (of extended cuts) a week before, this was already priced in, so the market wanted the &quot;over-and-above&quot; which didn&#39;t come &ndash; hence the sell-off,&quot; said Virendra Chauhan, oil analyst at Energy Aspects in Singapore, referring to a statement by Saudi Arabia and Russia earlier in May that a none months extension to the cut was needed.

Britain&#39;s Barclays bank said the ongoing production cut would result in a drawdown of bloated fuel inventories, but added that OPEC&#39;s goal of bringing stocks down to their five-year average would not be reached within the timeframe of the production cut.

Other analysts, including at Goldman Sachs and Jefferies bank said a normalisation of oil inventories could occur in early 2018.

Analysts also said that the OPEC-led production cuts would support a further rise in US&nbsp;output.

Ann-Louise Hittle, vice president at energy consultancy Wood Mackenzie said that the &quot;decision in Vienna sends a signal of continued support for oil prices from OPEC which helps US&nbsp;onshore drillers make plans&quot; to further increase their production.

US&nbsp;oil production has already risen by 10 per cent since mid-2016 to over 9.3 million bpd, close to the output of top producers Russia and Saudi Arabia.

&quot;OPEC agreeing to nine months without deeper cuts leaves prices at the mercy of inventories and US&nbsp;production and demand,&quot; said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

Goldman Sachs warned that the biggest risk to oil markets was what would happen next year, at the end of the OPEC-led production cut.

With US&nbsp;output rising steadily and OPEC and its allies potentially ramping up production in 2018 to regain lost market share, many traders are already expect another price slump.

(Reuters)

Crude oil plunged 5 per cent following the announcement

Oil extended falls on Friday after tumbling in the previous session when OPEC and allied producers extended output cuts but disappointed investors betting on longer or larger supply curbs. At Thursday's meeting in Vienna, the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers agreed to extend a pledge to cut around 1.8 million barrels per day (bpd) until the end of the first quarter of 2018. The initial agreement would have expired in June this year. Crude oil plunged 5 per cent following the announcement, and held its losses early on Friday. Brent crude futures were at $51.26 per barrel at 0500 GMT, down 20 cents, or 0.4 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were back below $50, at $48.61, down 29 cents, or 0.6 per cent. "With Russia and Saudi announcing nine months (of extended cuts) a week before, this was already priced in, so the market wanted the "over-and-above" which didn't come – hence the sell-off," said Virendra Chauhan, oil analyst at Energy Aspects in Singapore, referring to a statement by Saudi Arabia and Russia earlier in May that a none months extension to the cut was needed. Britain's Barclays bank said the ongoing production cut would result in a drawdown of bloated fuel inventories, but added that OPEC's goal of bringing stocks down to their five-year average would not be reached within the timeframe of the production cut. Other analysts, including at Goldman Sachs and Jefferies bank said a normalisation of oil inventories could occur in early 2018. Analysts also said that the OPEC-led production cuts would support a further rise in US output. Ann-Louise Hittle, vice president at energy consultancy Wood Mackenzie said that the "decision in Vienna sends a signal of continued support for oil prices from OPEC which helps US onshore drillers make plans" to further increase their production. US oil production has already risen by 10 per cent since mid-2016 to over 9.3 million bpd, close to the output of top producers Russia and Saudi Arabia. "OPEC agreeing to nine months without deeper cuts leaves prices at the mercy of inventories and US production and demand," said Greg McKenna, chief market strategist at futures brokerage AxiTrader. Goldman Sachs warned that the biggest risk to oil markets was what would happen next year, at the end of the OPEC-led production cut. With US output rising steadily and OPEC and its allies potentially ramping up production in 2018 to regain lost market share, many traders are already expect another price slump. (Reuters)

Oil drops after OPEC-led output cut extension falls below expectations

Indian state refiners will cut oil imports from Iran in 2017/18 by a fifth, as New Delhi takes a more assertive stance over an impasse on a giant gas field that it wants awarded to an Indian consortium, sources familiar with the matter said.

India, Iran&#39;s biggest oil buyer after China, was among a handful of countries that continued to deal with the Persian Gulf nation despite Western sanctions over Tehran&#39;s nuclear programme.

However, previously close ties have been strained since the lifting of some sanctions last year as Iran adopts a bolder approach in trying to get the best deal for its oil and gas.

Unhappy with Tehran, the Modi government in India&nbsp;has asked state refiners to cut imports of Iranian oil.

&quot;We are cutting gradually, and we will cut more if there is no progress in the matter of the award of Farzad B gas field to our company,&quot; Indian sources told Reuters.

Indian refiners told a National Iranian Oil Co (NIOC) representative about their plans to cut oil imports by a fifth to 190,000 barrels per day (bpd) from 240,000 bpd, officials present at the meeting said.

Indian Oil Corp and Mangalore Refinery and Petrochemicals Corp will reduce imports by 20,000 bpd each to about 80,000 bpd. Bharat Petroleum Corp and Hindustan Petroleum Corp will together cut imports by about 10,000 bpd to roughly 30,000 bpd, sources said.

In turn, NIOC threatened to cut the discount it offers to Indian buyers on freight from 80 per cent to about 60 per cent, the officials added.&nbsp;No comment was available from the Indian companies or NIOC.

Cutting imports from Iran amid an OPEC-led supply cut aimed at propping up the market exposes India&#39;s refiners to the risk of struggling to find reasonably priced alternatives.

&quot;We expect that the market is currently undersupplied and that the draws in inventory are coming,&quot; US investment bank Jefferies said in a note to clients this week, adding it expected crude prices of around $60 a barrel by the fourth quarter.

Despite this, Indian oil industrials said they saw no major impact from cutting Iranian imports, mainly due to their specific requirements.

&quot;Their main requirement is lighter oil, and light oil will remain in oversupply despite OPEC cuts, as OPEC cuts are mainly medium heavy sour,&quot; said Ehsan ul Haq of KBC Energy Economics.&nbsp;Prices of light crude have fallen recently, thanks largely to soaring output in the United States, which is not involved in the production cuts led by the Organization of the Petroleum Exporting Countries.

From April last year to February 2017, India imported 542,400 bpd from Iran, compared to 225,522 bpd a year earlier. Average oil volumes supplied by Iran over this period were the highest on record.&nbsp;At the heart of the spat is that a group of Indian oil companies headed by Oil and Natural Gas Corp wants to develop Iran&#39;s Farzad B gas field.

Iran has yet to hand out a concession that would allow its development.

ONGC Videsh has submitted a $3 billion development plan to Iranian authorities to develop the offshore field estimated to hold reserves of 12.5 trillion cubic feet, with a lifetime of 30 years.&nbsp;Under sanctions, Iran was banned from the global financial system, preventing the field&#39;s development.

India was one of a few countries still supplying Iran with goods, devising a complex payment mechanism to help Tehran access non-sanctioned items including medicines.&nbsp;As new options have opened up for Tehran since the lifting of sanctions, Iran may now be awaiting better bids for Farzad B.

&quot;They (Tehran) are playing hardball ... We don&#39;t see any forward movement on that (Farzad B)... So we have reduced (crude) imports,&quot; the Indian official said.

(Reuters)

The Modi government has taken an assertive stance over an impasse on a giant gas field that it wants awarded to an Indian consortium

Indian state refiners will cut oil imports from Iran in 2017/18 by a fifth, as New Delhi takes a more assertive stance over an impasse on a giant gas field that it wants awarded to an Indian consortium, sources familiar with the matter said. India, Iran's biggest oil buyer after China, was among a handful of countries that continued to deal with the Persian Gulf nation despite Western sanctions over Tehran's nuclear programme. However, previously close ties have been strained since the lifting of some sanctions last year as Iran adopts a bolder approach in trying to get the best deal for its oil and gas. Unhappy with Tehran, the Modi government in India has asked state refiners to cut imports of Iranian oil. "We are cutting gradually, and we will cut more if there is no progress in the matter of the award of Farzad B gas field to our company," Indian sources told Reuters. Indian refiners told a National Iranian Oil Co (NIOC) representative about their plans to cut oil imports by a fifth to 190,000 barrels per day (bpd) from 240,000 bpd, officials present at the meeting said. Indian Oil Corp and Mangalore Refinery and Petrochemicals Corp will reduce imports by 20,000 bpd each to about 80,000 bpd. Bharat Petroleum Corp and Hindustan Petroleum Corp will together cut imports by about 10,000 bpd to roughly 30,000 bpd, sources said. In turn, NIOC threatened to cut the discount it offers to Indian buyers on freight from 80 per cent to about 60 per cent, the officials added. No comment was available from the Indian companies or NIOC. Cutting imports from Iran amid an OPEC-led supply cut aimed at propping up the market exposes India's refiners to the risk of struggling to find reasonably priced alternatives. "We expect that the market is currently undersupplied and that the draws in inventory are coming," US investment bank Jefferies said in a note to clients this week, adding it expected crude prices of around $60 a barrel by the fourth quarter. Despite this, Indian oil industrials said they saw no major impact from cutting Iranian imports, mainly due to their specific requirements. "Their main requirement is lighter oil, and light oil will remain in oversupply despite OPEC cuts, as OPEC cuts are mainly medium heavy sour," said Ehsan ul Haq of KBC Energy Economics. Prices of light crude have fallen recently, thanks largely to soaring output in the United States, which is not involved in the production cuts led by the Organization of the Petroleum Exporting Countries. From April last year to February 2017, India imported 542,400 bpd from Iran, compared to 225,522 bpd a year earlier. Average oil volumes supplied by Iran over this period were the highest on record. At the heart of the spat is that a group of Indian oil companies headed by Oil and Natural Gas Corp wants to develop Iran's Farzad B gas field. Iran has yet to hand out a concession that would allow its development. ONGC Videsh has submitted a $3 billion development plan to Iranian authorities to develop the offshore field estimated to hold reserves of 12.5 trillion cubic feet, with a lifetime of 30 years. Under sanctions, Iran was banned from the global financial system, preventing the field's development. India was one of a few countries still supplying Iran with goods, devising a complex payment mechanism to help Tehran access non-sanctioned items including medicines. As new options have opened up for Tehran since the lifting of sanctions, Iran may now be awaiting better bids for Farzad B. "They (Tehran) are playing hardball ... We don't see any forward movement on that (Farzad B)... So we have reduced (crude) imports," the Indian official said. (Reuters)

India may cut Iranian oil purchases in row over gas field

Oil prices fell nearly one percent on Monday in response to growing evidence that US&nbsp;production is rising and as some investors unwound positions ahead of OPEC&#39;s first report on compliance with its deal to cut production.

Global benchmark Brent crude futures were down 45 cents at $56.25 a barrel at 0947 GMT and touched a session low of $56.04 a barrel. West Texas Intermediate (WTI) crude futures were down 41 cents at $53.45 a barrel and traded as low as $53.86 earlier in the day.

&quot;Bulls are liquidating ahead of the release of the monthly OPEC report due out shortly and yet another increase in US rig counts is also playing part in the weakness,&quot; said Tamas Varga, senior analyst at London brokerage PVM Oil Associates.

US oil drillers have added most drilling rigs since 2012 over the past month, bringing the total count to 591 rigs, the most since October 2015, Baker Hughes said in its weekly report.

This rise in US activity comes just as some oil producers are reducing output to reverse global oversupply in a bid to prop up prices.

The Organization of the Petroleum Exporting Countries (OPEC) and other producers, including Russia, agreed late last year to cut output by almost 1.8 million barrels per day (bpd) during the first half of 2017.

The group will publish its first assessment of compliance with the deal on Monday.

Sources told Reuters last week compliance according to OPEC calculations was 92 per cent in January, while the International Energy Agency said the rate was 90 per cent.

Kuwait&#39;s oil minister said on Monday that OPEC compliance was 92 per cent while that of non-OPEC producers was 50 per cent.

(Reuters)

Global benchmark Brent crude futures were down 45 cents at $56.25 a barrel at 0947 GMT and touched a session low of $56.04 a barrel

Oil prices fell nearly one percent on Monday in response to growing evidence that US production is rising and as some investors unwound positions ahead of OPEC's first report on compliance with its deal to cut production. Global benchmark Brent crude futures were down 45 cents at $56.25 a barrel at 0947 GMT and touched a session low of $56.04 a barrel. West Texas Intermediate (WTI) crude futures were down 41 cents at $53.45 a barrel and traded as low as $53.86 earlier in the day. "Bulls are liquidating ahead of the release of the monthly OPEC report due out shortly and yet another increase in US rig counts is also playing part in the weakness," said Tamas Varga, senior analyst at London brokerage PVM Oil Associates. US oil drillers have added most drilling rigs since 2012 over the past month, bringing the total count to 591 rigs, the most since October 2015, Baker Hughes said in its weekly report. This rise in US activity comes just as some oil producers are reducing output to reverse global oversupply in a bid to prop up prices. The Organization of the Petroleum Exporting Countries (OPEC) and other producers, including Russia, agreed late last year to cut output by almost 1.8 million barrels per day (bpd) during the first half of 2017. The group will publish its first assessment of compliance with the deal on Monday. Sources told Reuters last week compliance according to OPEC calculations was 92 per cent in January, while the International Energy Agency said the rate was 90 per cent. Kuwait's oil minister said on Monday that OPEC compliance was 92 per cent while that of non-OPEC producers was 50 per cent. (Reuters)

Oil falls on rise in US drilling, selling ahead of OPEC report

Saudi Arabia said on Thursday it had succeeded in cutting a huge state budget deficit caused by low oil prices and would increase government spending in 2017 to support flagging economic growth.

The announcement appeared likely to reassure global investors worried about the kingdom&#39;s ability to cope with shrunken oil revenues. The riyal came under speculative pressure this year but currency jitters have eased in recent months.

&quot;The public finances haven&rsquo;t improved on this scale since the early 1990s, following the end of the Gulf War,&quot; said Jason Tuvey, Middle East economist at London-based Capital Economics.

Nevertheless, analysts said Saudi Arabia&#39;s outlook remained uncertain. Some parts of the 2017 budget plan - including a big jump in oil income projected next year - were not fully explained, and the economy is likely to face more pain in coming years as Riyadh struggles to eliminate the deficit entirely.

The deficit shrank to 297 billion riyals ($79 billion) in 2016 from last year&#39;s record gap of 367 billion, which was a mammoth 15 per cent of gross domestic product. The original 2016 budget plan had projected a deficit of 326 billion riyals.

Riyadh slashed spending on infrastructure and perks for civil servants to get its finances under control. For the first time in years, it kept its spending below its original budget projection in 2016; actual spending was 825 billion riyals compared with a projection of 840 billion.

Revenues were slightly higher than expected at 528 billion riyals instead of 514 billion as the government raised cash with steps such as higher municipal and visa fees.

These austerity measures sapped consumers&#39; income and deterred private companies from investing - even though their investment is vital to diversify the Saudi economy beyond oil in the long term.

Economic growth slowed to 1.4 per cent in 2016, far below the average of 4 per cent in the past decade, the government said.

(Reuters)

Riyadh slashed spending on infrastructure and perks for civil servants to get its finances under control

Saudi Arabia said on Thursday it had succeeded in cutting a huge state budget deficit caused by low oil prices and would increase government spending in 2017 to support flagging economic growth. The announcement appeared likely to reassure global investors worried about the kingdom's ability to cope with shrunken oil revenues. The riyal came under speculative pressure this year but currency jitters have eased in recent months. "The public finances haven’t improved on this scale since the early 1990s, following the end of the Gulf War," said Jason Tuvey, Middle East economist at London-based Capital Economics. Nevertheless, analysts said Saudi Arabia's outlook remained uncertain. Some parts of the 2017 budget plan - including a big jump in oil income projected next year - were not fully explained, and the economy is likely to face more pain in coming years as Riyadh struggles to eliminate the deficit entirely. The deficit shrank to 297 billion riyals ($79 billion) in 2016 from last year's record gap of 367 billion, which was a mammoth 15 per cent of gross domestic product. The original 2016 budget plan had projected a deficit of 326 billion riyals. Riyadh slashed spending on infrastructure and perks for civil servants to get its finances under control. For the first time in years, it kept its spending below its original budget projection in 2016; actual spending was 825 billion riyals compared with a projection of 840 billion. Revenues were slightly higher than expected at 528 billion riyals instead of 514 billion as the government raised cash with steps such as higher municipal and visa fees. These austerity measures sapped consumers' income and deterred private companies from investing - even though their investment is vital to diversify the Saudi economy beyond oil in the long term. Economic growth slowed to 1.4 per cent in 2016, far below the average of 4 per cent in the past decade, the government said. (Reuters)

Saudi Arabia cuts huge budget deficit despite low oil prices

In a first for the oil-rich Gulf nation, Kuwait has decided to put foreign bonds worth billions of dollars on sale in the international markets to finance a budget shortfall, a report said on Saturday.&nbsp;

Breaking a 16-year run of surpluses, the emirate recorded a budget deficit of $15 billion last fiscal year resulting from low oil prices. It is projecting a bigger budget shortfall of $29 billion this year.&nbsp;

Oil income had contributed around 95 per cent of public revenues for the nation. But with oil having lost around 60 per cent of its value in the last two years, Kuwait has been forced to launch the sale of its foreign bonds.&nbsp;

Finance minister Anas al-Saleh said Kuwait will issue US dollar-denominated sovereign bonds of up to $9.6 billion during the 2016/2017 fiscal year which ends March 31, Al-Qabas newspaper reported. This comes on top of a $6.6 billion domestic debt programme which is already underway.

Like its Gulf peers, Kuwait has taken some austerity measures that include liberalising prices of diesel and kerosene and hiking petrol prices. Parliament a few months ago approved a law to raise heavily subsidised power and water fees but exempted citizens.&nbsp;

Saudi Arabia, Qatar, Oman and United Arab Emirates have also sold bonds or took syndicated loans to plug their deficits.

(WION with inputs from AFP) 
&nbsp;

The global oil slump has put pressure on Gulf nations that have projected budget shortfalls worth billions of dollars

In a first for the oil-rich Gulf nation, Kuwait has decided to put foreign bonds worth billions of dollars on sale in the international markets to finance a budget shortfall, a report said on Saturday. Breaking a 16-year run of surpluses, the emirate recorded a budget deficit of $15 billion last fiscal year resulting from low oil prices. It is projecting a bigger budget shortfall of $29 billion this year. Oil income had contributed around 95 per cent of public revenues for the nation. But with oil having lost around 60 per cent of its value in the last two years, Kuwait has been forced to launch the sale of its foreign bonds. Finance minister Anas al-Saleh said Kuwait will issue US dollar-denominated sovereign bonds of up to $9.6 billion during the 2016/2017 fiscal year which ends March 31, Al-Qabas newspaper reported. This comes on top of a $6.6 billion domestic debt programme which is already underway. Like its Gulf peers, Kuwait has taken some austerity measures that include liberalising prices of diesel and kerosene and hiking petrol prices. Parliament a few months ago approved a law to raise heavily subsidised power and water fees but exempted citizens. Saudi Arabia, Qatar, Oman and United Arab Emirates have also sold bonds or took syndicated loans to plug their deficits. (WION with inputs from AFP)

Kuwait launches foreign bond sale to finance budget deficit

Royal Dutch Shell and BP on Tuesday joined peers in reporting higher than expected earnings by making further deep cuts in spending to cope with an oil price downturn now in its third year.

The companies said they were well on the way to adapting to the more than halving in prices. But any new sharper downturn would test their ability to invest for growth and retain the relatively large dividends their shareholders expect.

Shell&#39;s stock rose by over 4 per cent as it announced higher quarterly earnings than arch-rival US&nbsp;Exxon Mobil, the world&#39;s largest listed oil company by output and market capitalisation.

The Anglo-Dutch major, which acquired rival BG for $54 billion earlier this year, had been under pressure to cut costs after second quarter earnings came in around 50 per cent below forecasts.

By contrast, BP&#39;s stock fell by more than 4 per cent by 1610 GMT as some analysts said its results were boosted by a one-off tax gain, meaning its longer-term profits and ability to pay dividends could still be at risk. The oil price was trading flat on the day at around $49 a barrel.

Shell&#39;s Chief Executive Officer Ben van Beurden said the oil sector had yet to emerge from troubled waters, but huge cost savings meant oil majors were getting closer to balancing their operations at today&#39;s oil prices of around $50 a barrel.

The prospects for an oil price recovery are still unclear, van Beurden said, despite attempts by OPEC and other producers to agree a deal to limit output and reduce the global glut which has pushed oil prices down by 50 per cent since June 2014.

&quot;Lower oil prices continue to be a significant challenge across the business, and the outlook remains uncertain,&quot; van Beurden said.

Future focus

The world&#39;s top oil and gas companies, including Exxon and Chevron, reported sharp drops in quarterly results last week due to lower oil prices and weaker refining margins.

But at the same time, most have shown they were adjusting to the new environment, with both Exxon and Chevron also beating earnings expectations. Chevron plans to focus future growth on U.S. onshore shale production, where investments are smaller and production starts faster compared to large offshore projects.

Shell also sees shale production as a key future growth engine. Its Chief Financial Officer Simon Henry said the oil-rich Permian Basin in West Texas was a &quot;crown jewel&quot;.

Exxon warned it may need to slash proved oil and gas reserves on its books by nearly 20 per cent, or some 4.6 billion barrels, if oil prices stay low for the rest of 2016.

French oil major Total also beat third quarter income expectations helped by cost cuts and new projects and only smaller rivals Norway&#39;s Statoil and Italy&#39;s ENI missed expectations due to lower-than-expected output. BP Chief Financial Officer Brian Gilvary said the British company was on track to rebalance cash flows next year at $50 to $55 a barrel and its future focus areas would include Russia and areas where it could bring technology to bear.

&quot;This allow us to sustain our dividend whilst still investing enough to grow long term,&quot; he said.

In 2014, the world&#39;s top oil companies required an oil price of $113 a barrel in order to cover their spending and dividends, according to Jefferies analysts. The breakeven dropped to around $60 a barrel in 2016 and is expected to hover at around $50 a barrel next year.

BP benefited from UK fiscal regime changes, resulting an a $164 million tax credit in the third quarter, compared with a $1.16 billion tax bill in the same quarter last year.

&quot;Despite mixed numbers and a modest increase in gearing, the overall trend in cost and capex savings and cash flows at BP continues to head in the right direction,&quot; analysts from Morgan Stanley said in a note.

BP reported a near halving in third-quarter earnings and slashed another $1 billion from its 2016 investment plan, while Shell saw an 18 per cent rise in profits and lowered next year&#39;s capital spending to the bottom of the expected range.

Both Shell and BP maintained their dividends unchanged as expected.

At $2.8 billion in the third quarter, Shell&#39;s net income was above Exxon&#39;s third quarter net income of $2.65 billion.

Exxon has not made a big acquisition for more than 5 years but it is still worth more than Shell - its market cap was $345 billion as of Tuesday while Shell was worth $205 billion.

As well as slashing spending, oil companies have scrapped new projects, cut tens of thousands of jobs, renegotiated supply contracts and increased borrowing since prices began a sustained fall in June 2014.

All the majors apart from Eni have maintained or increased their dividends throughout the downturn to retain shareholder loyalty. Shell has not cut its dividend since World War Two.

(Reuters)

Shell's stock rose by over 4 per cent as it announced higher quarterly earnings than arch-rival US Exxon Mobil

Royal Dutch Shell and BP on Tuesday joined peers in reporting higher than expected earnings by making further deep cuts in spending to cope with an oil price downturn now in its third year. The companies said they were well on the way to adapting to the more than halving in prices. But any new sharper downturn would test their ability to invest for growth and retain the relatively large dividends their shareholders expect. Shell's stock rose by over 4 per cent as it announced higher quarterly earnings than arch-rival US Exxon Mobil, the world's largest listed oil company by output and market capitalisation. The Anglo-Dutch major, which acquired rival BG for $54 billion earlier this year, had been under pressure to cut costs after second quarter earnings came in around 50 per cent below forecasts. By contrast, BP's stock fell by more than 4 per cent by 1610 GMT as some analysts said its results were boosted by a one-off tax gain, meaning its longer-term profits and ability to pay dividends could still be at risk. The oil price was trading flat on the day at around $49 a barrel. Shell's Chief Executive Officer Ben van Beurden said the oil sector had yet to emerge from troubled waters, but huge cost savings meant oil majors were getting closer to balancing their operations at today's oil prices of around $50 a barrel. The prospects for an oil price recovery are still unclear, van Beurden said, despite attempts by OPEC and other producers to agree a deal to limit output and reduce the global glut which has pushed oil prices down by 50 per cent since June 2014. "Lower oil prices continue to be a significant challenge across the business, and the outlook remains uncertain," van Beurden said. Future focus The world's top oil and gas companies, including Exxon and Chevron, reported sharp drops in quarterly results last week due to lower oil prices and weaker refining margins. But at the same time, most have shown they were adjusting to the new environment, with both Exxon and Chevron also beating earnings expectations. Chevron plans to focus future growth on U.S. onshore shale production, where investments are smaller and production starts faster compared to large offshore projects. Shell also sees shale production as a key future growth engine. Its Chief Financial Officer Simon Henry said the oil-rich Permian Basin in West Texas was a "crown jewel". Exxon warned it may need to slash proved oil and gas reserves on its books by nearly 20 per cent, or some 4.6 billion barrels, if oil prices stay low for the rest of 2016. French oil major Total also beat third quarter income expectations helped by cost cuts and new projects and only smaller rivals Norway's Statoil and Italy's ENI missed expectations due to lower-than-expected output. BP Chief Financial Officer Brian Gilvary said the British company was on track to rebalance cash flows next year at $50 to $55 a barrel and its future focus areas would include Russia and areas where it could bring technology to bear. "This allow us to sustain our dividend whilst still investing enough to grow long term," he said. In 2014, the world's top oil companies required an oil price of $113 a barrel in order to cover their spending and dividends, according to Jefferies analysts. The breakeven dropped to around $60 a barrel in 2016 and is expected to hover at around $50 a barrel next year. BP benefited from UK fiscal regime changes, resulting an a $164 million tax credit in the third quarter, compared with a $1.16 billion tax bill in the same quarter last year. "Despite mixed numbers and a modest increase in gearing, the overall trend in cost and capex savings and cash flows at BP continues to head in the right direction," analysts from Morgan Stanley said in a note. BP reported a near halving in third-quarter earnings and slashed another $1 billion from its 2016 investment plan, while Shell saw an 18 per cent rise in profits and lowered next year's capital spending to the bottom of the expected range. Both Shell and BP maintained their dividends unchanged as expected. At $2.8 billion in the third quarter, Shell's net income was above Exxon's third quarter net income of $2.65 billion. Exxon has not made a big acquisition for more than 5 years but it is still worth more than Shell - its market cap was $345 billion as of Tuesday while Shell was worth $205 billion. As well as slashing spending, oil companies have scrapped new projects, cut tens of thousands of jobs, renegotiated supply contracts and increased borrowing since prices began a sustained fall in June 2014. All the majors apart from Eni have maintained or increased their dividends throughout the downturn to retain shareholder loyalty. Shell has not cut its dividend since World War Two. (Reuters)

Shell takes top earnings spot from Exxon as oil majors adapt to low prices

Iranian President Hassan Rouhani has supported attempts to stabilise the global oil market and raise prices, the Iranian oil ministry&#39;s SHANA news agency reported.&nbsp; 
 
&quot;Instability and falling oil prices are harmful to all countries, especially oil producers,&quot; SHANA quoted Rouhani as saying. 
 
&quot;Tehran welcomes any move aimed at market stability and improvement of oil prices based on justice, fairness and fair quota of all the oil producers,&quot; the president said, referring to a meeting between OPEC and non-OPEC producers in Algeria next week, SHANA said. 
 
Rouhani, who is in Venezuela for the Non-Aligned Movement (NAM) Summit, was holding talks with the Ecuadorean President Rafael Correa, SHANA reported.&nbsp; 
 
Tehran had earlier refused to join a previous attempt this year by OPEC and non-members such as Russia to stabilise production, and talks collapsed in April. 
 
Iran is OPEC&#39;s third-largest producer and has been boosting its oil output after the lifting of Western sanctions in January. 
 
OPEC members are set to meet on the sidelines of the International Energy Forum (IEF), which groups producers and consumers, in Algeria on September &nbsp;26-28. with Non-OPEC producer Russia also attending. 
 
OPEC might revive talks on freezing oil production levels when it meets non-OPEC nations in Algeria, Reuters reported. 
 
Saudi Arabia and Russia agreed to cooperate in oil markets earlier this month, saying they could limit future output. 
 
The OPEC secretary general Mohammed Barkindo, however, appeared to play down suggestions of a major agreement by saying the Algiers meeting would be an informal meeting for consultations and not for decision making, Algerian state news agency APS reported on Saturday. 
 
(WION with inputs from Reuters)

Tehran had earlier refused to join OPEC and non-members like Russia in their attempt to stabilise oil production levels

Iranian President Hassan Rouhani has supported attempts to stabilise the global oil market and raise prices, the Iranian oil ministry's SHANA news agency reported. "Instability and falling oil prices are harmful to all countries, especially oil producers," SHANA quoted Rouhani as saying. "Tehran welcomes any move aimed at market stability and improvement of oil prices based on justice, fairness and fair quota of all the oil producers," the president said, referring to a meeting between OPEC and non-OPEC producers in Algeria next week, SHANA said. Rouhani, who is in Venezuela for the Non-Aligned Movement (NAM) Summit, was holding talks with the Ecuadorean President Rafael Correa, SHANA reported. Tehran had earlier refused to join a previous attempt this year by OPEC and non-members such as Russia to stabilise production, and talks collapsed in April. Iran is OPEC's third-largest producer and has been boosting its oil output after the lifting of Western sanctions in January. OPEC members are set to meet on the sidelines of the International Energy Forum (IEF), which groups producers and consumers, in Algeria on September 26-28. with Non-OPEC producer Russia also attending. OPEC might revive talks on freezing oil production levels when it meets non-OPEC nations in Algeria, Reuters reported. Saudi Arabia and Russia agreed to cooperate in oil markets earlier this month, saying they could limit future output. The OPEC secretary general Mohammed Barkindo, however, appeared to play down suggestions of a major agreement by saying the Algiers meeting would be an informal meeting for consultations and not for decision making, Algerian state news agency APS reported on Saturday. (WION with inputs from Reuters)

Iran backs calibration of global oil market

The International Energy Agency on Tuesday warned that the global oil glut looks set to go on at least six months longer than previously anticipated.&nbsp; 
 
The IEA said the glut was due to linger owing to slowdown in demand and constant rise in supply. 
 
The oil glut has hurt producers but it means cheaper pump prices for consumers at least through the first half of next year.&nbsp; 
 
The Paris-based organisation had earlier seen the oil oversupply disappearing in the latter part of 2016. 
 
In its monthly report, the IEA said the timing of the world oil market&#39;s return to balance is &quot;the big question.&quot; It added that the current prices - above $45 - would suggest supply falling and strong demand growth. 
 
The IEA&#39;s latest comments follow a surprisingly bearish outlook from OPEC on Monday. Crude prices were down 47 cents at $47.85 a barrel. 
 
The trend may fuel speculation of a possible production freeze being agreed between OPEC and non-OPEC member Russia at a meeting in Algeria later this month. 
 
Analyst Olivier Jakob, of Switzerland-based Petromatrix, said OPEC was &quot;trapped&quot; as non-OPEC supply had been able to adapt to lower prices better than expected. 
 
&quot;The IEA data is also suggesting that an OPEC &#39;freeze&#39; will not be enough to rebalance the market in 2017,&quot; he said in a note to investors. 
 
China and India, which had been key drivers recently of demand growth, are &quot;wobbling&quot;, it said, while a slowdown in the US and economic concerns in developing countries have also contributed to the surprise development. 
 
(WION with inputs from agencies)

The IEA has cut its projections for global oil demand for 2017; oversupply threatens production freeze

The International Energy Agency on Tuesday warned that the global oil glut looks set to go on at least six months longer than previously anticipated. The IEA said the glut was due to linger owing to slowdown in demand and constant rise in supply. The oil glut has hurt producers but it means cheaper pump prices for consumers at least through the first half of next year. The Paris-based organisation had earlier seen the oil oversupply disappearing in the latter part of 2016. In its monthly report, the IEA said the timing of the world oil market's return to balance is "the big question." It added that the current prices - above $45 - would suggest supply falling and strong demand growth. The IEA's latest comments follow a surprisingly bearish outlook from OPEC on Monday. Crude prices were down 47 cents at $47.85 a barrel. The trend may fuel speculation of a possible production freeze being agreed between OPEC and non-OPEC member Russia at a meeting in Algeria later this month. Analyst Olivier Jakob, of Switzerland-based Petromatrix, said OPEC was "trapped" as non-OPEC supply had been able to adapt to lower prices better than expected. "The IEA data is also suggesting that an OPEC 'freeze' will not be enough to rebalance the market in 2017," he said in a note to investors. China and India, which had been key drivers recently of demand growth, are "wobbling", it said, while a slowdown in the US and economic concerns in developing countries have also contributed to the surprise development. (WION with inputs from agencies)

Global oil glut to continue until mid-2017: International Energy Agency

Crude oil futures rose sharply on Monday amid renewed speculation that major producers including Saudi Arabia and Russia could cooperate to tackle weak prices and rein in oversupply. 
 
Brent crude futures for November delivery were up $2.09 per barrel at $48.92 a barrel at 0902 GMT. 
 
US crude for October delivery was up $1.70 a barrel at $46.14 a barrel. 
 
Saudi Arabia and Russia later on Monday are due to make a joint statement during the G20 summit in China calling for cooperation to support oil markets, several sources with knowledge of the matter said. 
 
One of the sources added Russia would likely attend the upcoming meeting of the Organisation of the Petroleum Exporting Countries which will be held in Vienna in November. 
 
This comes after Saudi deputy crown prince told Russian President Vladimir Putin on the sidelines of the same summit that cooperation between the two countries would bring benefit to the global oil market. 
 
Saudi energy minister Khalid al-Falih will make a &quot;significant announcement&quot; at a news conference at 0930 at the summit. 
 
&quot;Verbal intervention was again needed to trigger a recovery towards $50,&quot; senior ABN Amro economist Hans van Cleef said. 
 
&quot;After all, if prices remain too low ahead of the meeting, there is a risk that at some point Russia and Saudi Arabia actually need to act. That would probably be the last thing they want as long as Iran is raising output.&quot; 
 
Brent rallied to above $50 a barrel in late August, helped by growing talk of a coordinated production freeze, but prices have since fallen as few believe OPEC will act. 
 
Russian Energy Minister Alexander Novak has said that an oil production freeze would be one of the issues discussed by crude producers later this month in Algeria. 
 
Iran, OPEC&#39;s third largest producer, has said it would only cooperate in talks to freeze output if fellow exporters recognised its right to fully regain market share. 
 
Iran is ready to raise its output to 4 million barrels per day in a couple of months depending on market demand, a senior official from the National Iranian Oil Company said. 
 
&quot;Even if successful, an OPEC freeze would likely be a short-term positive but a medium-term negative for oil prices,&quot; Morgan Stanley analysts wrote in a note. 
 
(Reuters)

Brent crude futures for November delivery were up $2.09 per barrel at $48.92 a barrel

Crude oil futures rose sharply on Monday amid renewed speculation that major producers including Saudi Arabia and Russia could cooperate to tackle weak prices and rein in oversupply. Brent crude futures for November delivery were up $2.09 per barrel at $48.92 a barrel at 0902 GMT. US crude for October delivery was up $1.70 a barrel at $46.14 a barrel. Saudi Arabia and Russia later on Monday are due to make a joint statement during the G20 summit in China calling for cooperation to support oil markets, several sources with knowledge of the matter said. One of the sources added Russia would likely attend the upcoming meeting of the Organisation of the Petroleum Exporting Countries which will be held in Vienna in November. This comes after Saudi deputy crown prince told Russian President Vladimir Putin on the sidelines of the same summit that cooperation between the two countries would bring benefit to the global oil market. Saudi energy minister Khalid al-Falih will make a "significant announcement" at a news conference at 0930 at the summit. "Verbal intervention was again needed to trigger a recovery towards $50," senior ABN Amro economist Hans van Cleef said. "After all, if prices remain too low ahead of the meeting, there is a risk that at some point Russia and Saudi Arabia actually need to act. That would probably be the last thing they want as long as Iran is raising output." Brent rallied to above $50 a barrel in late August, helped by growing talk of a coordinated production freeze, but prices have since fallen as few believe OPEC will act. Russian Energy Minister Alexander Novak has said that an oil production freeze would be one of the issues discussed by crude producers later this month in Algeria. Iran, OPEC's third largest producer, has said it would only cooperate in talks to freeze output if fellow exporters recognised its right to fully regain market share. Iran is ready to raise its output to 4 million barrels per day in a couple of months depending on market demand, a senior official from the National Iranian Oil Company said. "Even if successful, an OPEC freeze would likely be a short-term positive but a medium-term negative for oil prices," Morgan Stanley analysts wrote in a note. (Reuters)

Oil jumps amid talk of producer action to support prices

Oil prices edged up in early trading on Friday, extending gains from the previous session on expectations that exporters could at an upcoming meeting talk about ways to prop up a market that continues to be dogged by a supply overhang. 
 
International Brent crude oil futures were trading at $46.20 per barrel at 0047 GMT, up 16 cents, or 0.35 per cent, from their last close and not far off their $46.30 monthly high reached in the previous session. 
 
US West Texas Intermediate (WTI) crude futures were at $43.71 a barrel, up 22 cents, or 0.51 per cent, from their last close. 
 
Markets were supported as Saudi Arabia&#39;s energy minister Khalid al-Falih said in a statement late on Thursday that oil producers would discuss during a meeting next month in Algeria potential action to stabilise oil prices. 
 
&quot;Talk of production cuts in the oil market saw prices surge overnight,&quot; ANZ bank said on Friday. 
 
An outlook published by the International Energy Agency (IEA) that said it expected a tightening supply and demand balance towards the end of the year also supported prices. 
 
Oil prices are still some 12.5 per cent below their last peak in June as brimming storage tanks and production that exceeds consumption weighs on markets. 
 
AB Bernstein said that global oil production increased by almost 0.8 million barrels per day (bpd) in July, compared to the previous month, to 97.01 million bpd, while commercial inventories increased by 5.7 million barrels to 3.09 billion barrels in June. 
 
Despite relatively cheap crude feedstocks prices, analysts said that refinery margins, known as cracks, were poor as refiners continued to pump more fuel than the market can absorb, resulting in brimming storage tanks around the world. 
 
&quot;Global refining margins trended downwards in July. Brent cracking margins were $3.02 per barrel in July (down from $4.85/barrel in June) with Europe&#39;s refining utilisation at 82 per cent in June. US Gulf Coast cracking margins were $5.06 per barrel (-$0.03 per barrel month-on-month) with utilisation of 87 per cent. Singapore cracking margins were $4.74 per barrel (-$1.03 per barrel month-on-month),&quot; AB Bernstein said. 
 
(Reuters)

Oil prices are still some 12.5 per cent below their last peak in June owing to the supply overhang

Oil prices edged up in early trading on Friday, extending gains from the previous session on expectations that exporters could at an upcoming meeting talk about ways to prop up a market that continues to be dogged by a supply overhang. International Brent crude oil futures were trading at $46.20 per barrel at 0047 GMT, up 16 cents, or 0.35 per cent, from their last close and not far off their $46.30 monthly high reached in the previous session. US West Texas Intermediate (WTI) crude futures were at $43.71 a barrel, up 22 cents, or 0.51 per cent, from their last close. Markets were supported as Saudi Arabia's energy minister Khalid al-Falih said in a statement late on Thursday that oil producers would discuss during a meeting next month in Algeria potential action to stabilise oil prices. "Talk of production cuts in the oil market saw prices surge overnight," ANZ bank said on Friday. An outlook published by the International Energy Agency (IEA) that said it expected a tightening supply and demand balance towards the end of the year also supported prices. Oil prices are still some 12.5 per cent below their last peak in June as brimming storage tanks and production that exceeds consumption weighs on markets. AB Bernstein said that global oil production increased by almost 0.8 million barrels per day (bpd) in July, compared to the previous month, to 97.01 million bpd, while commercial inventories increased by 5.7 million barrels to 3.09 billion barrels in June. Despite relatively cheap crude feedstocks prices, analysts said that refinery margins, known as cracks, were poor as refiners continued to pump more fuel than the market can absorb, resulting in brimming storage tanks around the world. "Global refining margins trended downwards in July. Brent cracking margins were $3.02 per barrel in July (down from $4.85/barrel in June) with Europe's refining utilisation at 82 per cent in June. US Gulf Coast cracking margins were $5.06 per barrel (-$0.03 per barrel month-on-month) with utilisation of 87 per cent. Singapore cracking margins were $4.74 per barrel (-$1.03 per barrel month-on-month)," AB Bernstein said. (Reuters)

Oil prices rise over possibility of market prop up discussions

US stocks traded near record highs today morning as a rise in technology stocks added to the lift from steadying oil prices. 
 
Oil edged further above $45 on estimates of a drop in US inventories and speculation of producer action to freeze output. 
 
&quot;Today, it seems like whatever oil does, equities will follow,&quot; said Peter Cardillo, chief market economist at First Standard Financial in New York. 
 
The S&amp;P 500 index&#39;s technology index rose 0.17 per cent, helped by gains in Cisco, which rose 0.7 per cent after Citigroup raised its price target. The stock gave the biggest boost to the S&amp;P and the Nasdaq. 
 
Microchip Tech soared 9.4 per cent to $61.980 after the company&#39;s first-quarter revenue beat analysts&#39; estimate. 
 
A forecast-beating payrolls report on Friday has helped bring back some of the risk-on mode in the markets. Safe havens gold and the Japanese yen were lower today. 
 
At 9.42 a.m. ET (1342 GMT), the Dow Jones Industrial Average was up 29.2 points, or 0.16 per cent, at 18,558.49. 
 
The S&amp;P 500 was up 2.26 points, or 0.1 per cent, at 2,183.15, just 2 points shy of its 2,185.44 record high. 
 
The Nasdaq Composite was up 9.67 points, or 0.19 per cent, at 5,222.81. 
 
Seven of the 10 major S&amp;P 500 indexes were higher, led by a 0.28 per cent rise in the materials sector. 
 
Valeant jumped 11.67 per cent after the company maintained its full-year forecast and said it was evaluating alternatives for its non-core business and geographies. 
 
Endo International surged 10.5 per cent to $20.12 after the drugmaker&#39;s second-quarter revenue and profit beat estimates. The stock was the top percentage gainer among S&amp;P 500 companies. 
 
Advancing issues outnumbered decliners on the NYSE by 1,583 to 1,039. On the Nasdaq, 1,393 issues rose and 908 fell. 
 
The S&amp;P 500 index showed 18 new 52-week highs and no new lows, while the Nasdaq recorded 41 new highs and eight new lows. 
 
(Reuters)

Oil edged further above $45 on estimates of a drop in US inventories

US stocks traded near record highs today morning as a rise in technology stocks added to the lift from steadying oil prices. Oil edged further above $45 on estimates of a drop in US inventories and speculation of producer action to freeze output. "Today, it seems like whatever oil does, equities will follow," said Peter Cardillo, chief market economist at First Standard Financial in New York. The S&P 500 index's technology index rose 0.17 per cent, helped by gains in Cisco, which rose 0.7 per cent after Citigroup raised its price target. The stock gave the biggest boost to the S&P and the Nasdaq. Microchip Tech soared 9.4 per cent to $61.980 after the company's first-quarter revenue beat analysts' estimate. A forecast-beating payrolls report on Friday has helped bring back some of the risk-on mode in the markets. Safe havens gold and the Japanese yen were lower today. At 9.42 a.m. ET (1342 GMT), the Dow Jones Industrial Average was up 29.2 points, or 0.16 per cent, at 18,558.49. The S&P 500 was up 2.26 points, or 0.1 per cent, at 2,183.15, just 2 points shy of its 2,185.44 record high. The Nasdaq Composite was up 9.67 points, or 0.19 per cent, at 5,222.81. Seven of the 10 major S&P 500 indexes were higher, led by a 0.28 per cent rise in the materials sector. Valeant jumped 11.67 per cent after the company maintained its full-year forecast and said it was evaluating alternatives for its non-core business and geographies. Endo International surged 10.5 per cent to $20.12 after the drugmaker's second-quarter revenue and profit beat estimates. The stock was the top percentage gainer among S&P 500 companies. Advancing issues outnumbered decliners on the NYSE by 1,583 to 1,039. On the Nasdaq, 1,393 issues rose and 908 fell. The S&P 500 index showed 18 new 52-week highs and no new lows, while the Nasdaq recorded 41 new highs and eight new lows. (Reuters)

Wall Street near record highs as oil, tech stocks lift

Oil edged higher to near $42 a barrel in Asia today, but analysts said the increase was unlikely to last as the commodity remains under pressure by a supply glut and a strong dollar. 
 
Prices have been fluctuating since entering a bear market last week, falling more than 20 per cent and closing below $40 a barrel for the first time since April. 
 
Initially recovering as US commercial crude inventory data showed an unexpected draw in gasoline, prices tumbled again later in the week after robust hiring numbers from the US government pushed the dollar higher.&nbsp;A stronger greenback typically makes dollar-priced oil more expensive for consumers using other currencies, denting demand. 
 
Weekly rig count data released Friday also showed that US drillers added seven rigs that week, up for the sixth straight week and indicating higher production activity amid an oversaturated market. 
 
&quot;Modest short covering has probably given oil some boost,&quot; said IG Markets analyst Bernard Aw, adding however, that the bounce was unlikely to last.&nbsp;&quot;Rising US rig additions, low probability of The Organization of the Petroleum Exporting Countries (OPEC) to revive... freeze output talks, and weakening demand present a great barrier for oil prices to move higher,&quot; he told AFP. 
 
At around 0630 GMT, US benchmark West Texas Intermediate for delivery in September was up 28 cents to $42.08 and Brent crude for October gained 29 cents to $44.56 a barrel. 
 
&quot;Upbeat jobs data from the US showed that the jobs growth was much higher in July than estimates, and helped to push the US Dollar (higher), applying pressure on crude prices,&quot; said EY Services oil and gas analyst Sanjeev Gupta. 
 
(AFP)&nbsp;

Analysts said increase was unlikely to last, as the commodity remains under pressure by a supply glut

Oil edged higher to near $42 a barrel in Asia today, but analysts said the increase was unlikely to last as the commodity remains under pressure by a supply glut and a strong dollar. Prices have been fluctuating since entering a bear market last week, falling more than 20 per cent and closing below $40 a barrel for the first time since April. Initially recovering as US commercial crude inventory data showed an unexpected draw in gasoline, prices tumbled again later in the week after robust hiring numbers from the US government pushed the dollar higher. A stronger greenback typically makes dollar-priced oil more expensive for consumers using other currencies, denting demand. Weekly rig count data released Friday also showed that US drillers added seven rigs that week, up for the sixth straight week and indicating higher production activity amid an oversaturated market. "Modest short covering has probably given oil some boost," said IG Markets analyst Bernard Aw, adding however, that the bounce was unlikely to last. "Rising US rig additions, low probability of The Organization of the Petroleum Exporting Countries (OPEC) to revive... freeze output talks, and weakening demand present a great barrier for oil prices to move higher," he told AFP. At around 0630 GMT, US benchmark West Texas Intermediate for delivery in September was up 28 cents to $42.08 and Brent crude for October gained 29 cents to $44.56 a barrel. "Upbeat jobs data from the US showed that the jobs growth was much higher in July than estimates, and helped to push the US Dollar (higher), applying pressure on crude prices," said EY Services oil and gas analyst Sanjeev Gupta. (AFP)

Oil prices rise in Asia

Oil prices sank in Asia today after data indicated a rise in US stockpiles, reigniting concerns about a supply glut, while profit-takers stepped in after the previous day&#39;s rally. 
 
The American Petroleum Institute reported a 2.2 million barrel rise in reserves last week, confounding expectations of a dip at the height of the crucial summer holiday driving season. 
 
The figures rattled traders as the Department of Energy prepares to release official data later today, which is considered a key gauge of demand in the world&#39;s top oil consumer. 
 
At about 0645 GMT, US benchmark West Texas Intermediate fell 51 cents, or 1.09 per cent, to $46.29 while Brent was 60 cents, or 1.24 per cent, lower at $47.87. 
 
&quot;It&#39;s bearish for oil if stockpiles gain because seasonally speaking, inventories tend to decline at least until mid-August,&quot; Hong Sung Ki, a commodities analyst at Samsung Futures Inc., told Bloomberg News. 
 
&quot;But of course, we need to see whether this will be a one-time gain or not,&quot; the analyst added.&nbsp; 
 
Both contracts surged almost five per cent on Tuesday from two-month lows after The Organization of the Petroleum Exporting Countries (OPEC) said it expected the global supply glut to ease this year and next thanks to reductions in output from producers outside the cartel, particularly the United States. 
 
Prices have fluctuated between $44 and $52 a barrel over the past month after hitting near 13-year lows below $30 in February, but a surge in OPEC production in June revived fears about oversupply. 
 
Energy information provider S&amp;P Global Platts said production from the OPEC climbed 300,000 barrels per day in June, close to an eight-year high of 32.73 million barrels per day. 
 
This is due to a tentative recovery in production in Nigeria and Libya, and a &quot;steady&quot; rise in output from Saudi Arabia and Iran, it said. 
 
&quot;We had the bulls for a couple of weeks and the bears are starting to step in,&quot; David Lennox, an analyst at Fat Prophets in Sydney, said. 
 
&quot;The market has realised that surplus that we had was disrupted, and that it is coming back because those disruptions are going away,&quot; he added.&nbsp; 
 
Canadian producers are also gradually coming back online, restoring supply for the biggest crude supplier to the US market, after wildfires swept through the Alberta oil sands region from May to July. 
 
(AFP)&nbsp; 
&nbsp;

The figures rattled traders as the Department of Energy prepares to release official data later today

Oil prices sank in Asia today after data indicated a rise in US stockpiles, reigniting concerns about a supply glut, while profit-takers stepped in after the previous day's rally. The American Petroleum Institute reported a 2.2 million barrel rise in reserves last week, confounding expectations of a dip at the height of the crucial summer holiday driving season. The figures rattled traders as the Department of Energy prepares to release official data later today, which is considered a key gauge of demand in the world's top oil consumer. At about 0645 GMT, US benchmark West Texas Intermediate fell 51 cents, or 1.09 per cent, to $46.29 while Brent was 60 cents, or 1.24 per cent, lower at $47.87. "It's bearish for oil if stockpiles gain because seasonally speaking, inventories tend to decline at least until mid-August," Hong Sung Ki, a commodities analyst at Samsung Futures Inc., told Bloomberg News. "But of course, we need to see whether this will be a one-time gain or not," the analyst added. Both contracts surged almost five per cent on Tuesday from two-month lows after The Organization of the Petroleum Exporting Countries (OPEC) said it expected the global supply glut to ease this year and next thanks to reductions in output from producers outside the cartel, particularly the United States. Prices have fluctuated between $44 and $52 a barrel over the past month after hitting near 13-year lows below $30 in February, but a surge in OPEC production in June revived fears about oversupply. Energy information provider S&P Global Platts said production from the OPEC climbed 300,000 barrels per day in June, close to an eight-year high of 32.73 million barrels per day. This is due to a tentative recovery in production in Nigeria and Libya, and a "steady" rise in output from Saudi Arabia and Iran, it said. "We had the bulls for a couple of weeks and the bears are starting to step in," David Lennox, an analyst at Fat Prophets in Sydney, said. "The market has realised that surplus that we had was disrupted, and that it is coming back because those disruptions are going away," he added. Canadian producers are also gradually coming back online, restoring supply for the biggest crude supplier to the US market, after wildfires swept through the Alberta oil sands region from May to July. (AFP)

Oil prices sink in Asia triggering supply glut concerns

Oil prices rebounded in Asia today after tanking nearly five per cent the day before on fresh worries about an oversupply, while traders await the release of key US jobs data. 
 
The commodity plunged Thursday in response to official figures showing US commercial inventories fell less than expected last week, indicating softer demand in the world&#39;s top oil consumer as the crucial driving season kicks in. 
 
The data added to an already downbeat mood on markets as investors worry about the longer-term fallout from Britain&#39;s vote to leave the European Union (EU). 
 
At around 0650 GMT, the US benchmark West Texas Intermediate was up 26 cents, or 0.58 per cent, at $45.40 and Brent gained 32 cents, or 0.69 per cent, to $46.72. 
 
WTI plunged 4.8 per cent and Brent sank 4.9 per cent on Thursday after the US Department of Energy (DoE) reported stockpiles fell 2.2 million barrels in the week ending July 1. The market was expecting a 2.5 million barrel drop, according to Bloomberg News. 
 
Both contracts are more than six per cent lower down from last Friday. 
 
The DoE also reported a much smaller than expected decline in petrol stockpiles during the peak summer driving season when Americans take to the road for their holidays. Gasoline stockpiles fell 100,000 barrels, well below the forecast 350,000. 
 
IG Markets analyst Bernard Aw said traders were looking for bargains after Thursday&#39;s &quot;substantial drop&quot; in prices, but added the oversupply concerns will linger. 
 
&quot;What&#39;s even more important was the lack of decline in the gasoline inventories, given that the summer driving season in the US still has two more months to go,&quot; Aw said. 
 
&quot;Traders now fear that we could see a worsening of the supply overhang when summer is over,&quot; he added.&nbsp; 
 
Prices were also given some support after a militant group in Nigeria, Africa&#39;s biggest oil producer, said it attacked more oil infrastructure in the country&#39;s south, ignoring a call for unity from President Muhammadu Buhari. 
 
(AFP)&nbsp; 
&nbsp;

The data added to an already downbeat mood on markets as investors worry about the longer-term Brexit fallout

Oil prices rebounded in Asia today after tanking nearly five per cent the day before on fresh worries about an oversupply, while traders await the release of key US jobs data. The commodity plunged Thursday in response to official figures showing US commercial inventories fell less than expected last week, indicating softer demand in the world's top oil consumer as the crucial driving season kicks in. The data added to an already downbeat mood on markets as investors worry about the longer-term fallout from Britain's vote to leave the European Union (EU). At around 0650 GMT, the US benchmark West Texas Intermediate was up 26 cents, or 0.58 per cent, at $45.40 and Brent gained 32 cents, or 0.69 per cent, to $46.72. WTI plunged 4.8 per cent and Brent sank 4.9 per cent on Thursday after the US Department of Energy (DoE) reported stockpiles fell 2.2 million barrels in the week ending July 1. The market was expecting a 2.5 million barrel drop, according to Bloomberg News. Both contracts are more than six per cent lower down from last Friday. The DoE also reported a much smaller than expected decline in petrol stockpiles during the peak summer driving season when Americans take to the road for their holidays. Gasoline stockpiles fell 100,000 barrels, well below the forecast 350,000. IG Markets analyst Bernard Aw said traders were looking for bargains after Thursday's "substantial drop" in prices, but added the oversupply concerns will linger. "What's even more important was the lack of decline in the gasoline inventories, given that the summer driving season in the US still has two more months to go," Aw said. "Traders now fear that we could see a worsening of the supply overhang when summer is over," he added. Prices were also given some support after a militant group in Nigeria, Africa's biggest oil producer, said it attacked more oil infrastructure in the country's south, ignoring a call for unity from President Muhammadu Buhari. (AFP)

Oil prices rebound in Asia as investors await key US jobs data

With early returns indicating a close result and prompting big swings in the value of sterling, oil prices fell after voting ended in a UK referendum on whether to stay in the European Union (EU). 
 
While U.S. crude was down 35 cents at $49.76 a barrel at 0001 GMT; Brent crude was down 27 cents at $50.64 a barrel.&nbsp; 
On Thursday, both contracts rose sharply, rallying on optimism the Britons would vote to stay in Europe. 
 
Pertinently, the first few official results on Friday put the &#39;Brexit&#39; campaign ahead, although opinion polls suggest that the vote will end in a victory for the &#39;remain&#39; campaign.&nbsp; 
 
Also, with results in from the first five of 382 voting districts, those in favour of ending Britain&#39;s 43-year membership had a small lead, but it was too early to discern a reliable trend. 
 
Sterling slumped to $1.4475, having earlier hit a high for the year at $1.5022. The euro turned tail to hit $1.1324 and the yen recouped early losses to stand at 104.96 per dollar. 
 
(Reuters)&nbsp;

Albeit, opinion polls have suggested that the vote will end in a victory for the 'remain' campaign

With early returns indicating a close result and prompting big swings in the value of sterling, oil prices fell after voting ended in a UK referendum on whether to stay in the European Union (EU). While U.S. crude was down 35 cents at $49.76 a barrel at 0001 GMT; Brent crude was down 27 cents at $50.64 a barrel. On Thursday, both contracts rose sharply, rallying on optimism the Britons would vote to stay in Europe. Pertinently, the first few official results on Friday put the 'Brexit' campaign ahead, although opinion polls suggest that the vote will end in a victory for the 'remain' campaign. Also, with results in from the first five of 382 voting districts, those in favour of ending Britain's 43-year membership had a small lead, but it was too early to discern a reliable trend. Sterling slumped to $1.4475, having earlier hit a high for the year at $1.5022. The euro turned tail to hit $1.1324 and the yen recouped early losses to stand at 104.96 per dollar. (Reuters)

Oil prices fall after as first few results put 'Brexit' ahead

Oil prices slumped by more than six per cent on Friday after Britain voted to leave the European Union, raising fears of a broader economic slowdown that could reduce demand for oil. 
 
Financial markets have been worried for months about what Brexit, or a British exit from the European Union, would mean for Europe&#39;s future, but were clearly not fully factoring in the risk of a leave vote. 
 
British Prime Minister David Cameron, who campaigned to remain in the EU, said he would stand down by October. 
 
Brent crude was down $1.90 at $49.01 a barrel. US crude was down $1.90 at $48.21 a barrel. 
 
Earlier in the day, both contracts were down by more than $3, or over six per cent, the biggest intra-day declines for both since April 18, when a meeting of top global oil producers failed to agree on an output freeze. 
 
Sterling sank 10 per cent in value to its weakest since the mid-1980s. The FTSE 100 fell more than eight per cent at the open, with banks among the hardest hit. 
 
&quot;In the interim, it&#39;s down for everything from equities to oil. Bad economies in the UK and Europe are not good for oil and there could be a domino effect on other economies in Asia,&quot; said IHS oil analyst Victor Shum. 
 
Some analysts said oil could face further downward pressure. 
 
&quot;Our view is that we have not yet seen the low oil price of the day with Brent likely to trade down towards $45 or lower before we have seen the worst of it,&quot; Bjarne Schieldrop, chief commodity analyst at SEB, said in note to clients. 
 
The vote to break with Europe is set to usher in deep uncertainty over trade and investment and fuel the rise of anti-EU movements across the continent. 
 
&quot;Today, it&#39;s all about sentiment and everybody looking at each and saying &#39;what&#39;s next?&#39;&quot; said Hans van Cleef, senior energy economist at ABN Amro in Amsterdam. 
 
&quot;It will be interesting how we trade next week, because then the first impact is behind us and at some point the market should return to look at fundamentals again,&quot; Cleef added. 
 
Analysts have said that once the market refocuses on fundamentals, oil was likely to fall, given abundant stocks around the world are shrinking very slowly despite large production outages in countries like Nigeria. 
 
(Reuters)

Brent crude was down $1.90 a barrel while US crude was down $1.90 a barrel

Oil prices slumped by more than six per cent on Friday after Britain voted to leave the European Union, raising fears of a broader economic slowdown that could reduce demand for oil. Financial markets have been worried for months about what Brexit, or a British exit from the European Union, would mean for Europe's future, but were clearly not fully factoring in the risk of a leave vote. British Prime Minister David Cameron, who campaigned to remain in the EU, said he would stand down by October. Brent crude was down $1.90 at $49.01 a barrel. US crude was down $1.90 at $48.21 a barrel. Earlier in the day, both contracts were down by more than $3, or over six per cent, the biggest intra-day declines for both since April 18, when a meeting of top global oil producers failed to agree on an output freeze. Sterling sank 10 per cent in value to its weakest since the mid-1980s. The FTSE 100 fell more than eight per cent at the open, with banks among the hardest hit. "In the interim, it's down for everything from equities to oil. Bad economies in the UK and Europe are not good for oil and there could be a domino effect on other economies in Asia," said IHS oil analyst Victor Shum. Some analysts said oil could face further downward pressure. "Our view is that we have not yet seen the low oil price of the day with Brent likely to trade down towards $45 or lower before we have seen the worst of it," Bjarne Schieldrop, chief commodity analyst at SEB, said in note to clients. The vote to break with Europe is set to usher in deep uncertainty over trade and investment and fuel the rise of anti-EU movements across the continent. "Today, it's all about sentiment and everybody looking at each and saying 'what's next?'" said Hans van Cleef, senior energy economist at ABN Amro in Amsterdam. "It will be interesting how we trade next week, because then the first impact is behind us and at some point the market should return to look at fundamentals again," Cleef added. Analysts have said that once the market refocuses on fundamentals, oil was likely to fall, given abundant stocks around the world are shrinking very slowly despite large production outages in countries like Nigeria. (Reuters)

Oil prices dive after Britain votes to leave EU

Sterling advanced on Thursday as the campaign for Britain&#39;s vote on whether to leave the European Union was suspended following the murder of a British lawmaker, while US stocks cut losses. 
 
British Member of Parliament Jo Cox, who was shot dead in the street in her constituency in northern England earlier in the day, had been a vocal supporter of Britain remaining within the European Union. 
 
Whether Britain will leave the European Union, dubbed &quot;Brexit,&quot; is an issue that will be decided in a referendum next week and could undermine decades of European integration and stoke global economic uncertainty. 
 
&quot;Certainly, people are talking about the possibility that this does influence the Brexit vote in favour of remain. It is a tragic event all around. There is a sense, there is an immediate emotional reaction, but there is still a week before the referendum itself&quot; on June 23, said Alan Ruskin, global co-head of FX research at Deutsche Bank in New York. 
 
The British Pound hit a US trading high after the news, and was last up slightly at $1.4207. 
 
Rival referendum campaign groups in Britain said they were suspending activities for the day and Prime Minister David Cameron said he would pull out of a planned rally in Gibraltar, the British territory on the southern coast of Spain. 
 
US stocks, which had tumbled earlier on global growth worries, cut losses and the Dow briefly traded higher. 
 
The Dow Jones industrial average was up 17.67 points, or 0.1 per cent, at 17,657.84, the S&amp;P 500 lost 2.41 points, or 0.12 per cent, to 2,069.09 and the Nasdaq Composite dropped 10.81 points, or 0.22 per cent, to 4,824.12. 
 
The European FTSEurofirst 300 index closed down 0.5 per cent. 
 
Oil prices slumped about three per cent and were down a sixth straight day as the Dollar&#39;s rally on fears of Britain&#39;s exit from the EU hammered commodities priced in the currency. 
 
Data showing US crude stockpiles fell less than expected also weighed on oil prices. Brent crude futures were down $1.52 at $47.45, while US crude futures were down $1.61 at $46.40. 
 
Yields on most US Treasury yields rose to session highs after British campaigning for the Brexit vote was suspended following MP Cox&#39;s death. 
 
Yields on benchmark 10-year Treasury notes rose to a session high of 1.581 per cent, after earlier falling to 1.518 per cent, the lowest level since August 2012.

S&P and Nasdaq dropped, but Dow Jones gained as Brexit campaign was called off after the death of British lawmaker Jo Cox

Sterling advanced on Thursday as the campaign for Britain's vote on whether to leave the European Union was suspended following the murder of a British lawmaker, while US stocks cut losses. British Member of Parliament Jo Cox, who was shot dead in the street in her constituency in northern England earlier in the day, had been a vocal supporter of Britain remaining within the European Union. Whether Britain will leave the European Union, dubbed "Brexit," is an issue that will be decided in a referendum next week and could undermine decades of European integration and stoke global economic uncertainty. "Certainly, people are talking about the possibility that this does influence the Brexit vote in favour of remain. It is a tragic event all around. There is a sense, there is an immediate emotional reaction, but there is still a week before the referendum itself" on June 23, said Alan Ruskin, global co-head of FX research at Deutsche Bank in New York. The British Pound hit a US trading high after the news, and was last up slightly at $1.4207. Rival referendum campaign groups in Britain said they were suspending activities for the day and Prime Minister David Cameron said he would pull out of a planned rally in Gibraltar, the British territory on the southern coast of Spain. US stocks, which had tumbled earlier on global growth worries, cut losses and the Dow briefly traded higher. The Dow Jones industrial average was up 17.67 points, or 0.1 per cent, at 17,657.84, the S&P 500 lost 2.41 points, or 0.12 per cent, to 2,069.09 and the Nasdaq Composite dropped 10.81 points, or 0.22 per cent, to 4,824.12. The European FTSEurofirst 300 index closed down 0.5 per cent. Oil prices slumped about three per cent and were down a sixth straight day as the Dollar's rally on fears of Britain's exit from the EU hammered commodities priced in the currency. Data showing US crude stockpiles fell less than expected also weighed on oil prices. Brent crude futures were down $1.52 at $47.45, while US crude futures were down $1.61 at $46.40. Yields on most US Treasury yields rose to session highs after British campaigning for the Brexit vote was suspended following MP Cox's death. Yields on benchmark 10-year Treasury notes rose to a session high of 1.581 per cent, after earlier falling to 1.518 per cent, the lowest level since August 2012.

Sterling gains as Brexit campaign suspended

Crude futures fell on Wednesday as mounting concerns about Britain&#39;s possible exit from the European Union and a surprise build in&nbsp;the&nbsp;US&nbsp;inventories left investors ignoring an International Energy Agency declaration that oil markets are now in balance. 
 
US&nbsp;crude fell to a three-week low of $47.55 as the contract dropped for a fifth day. It was trading down 52 cents at $47.97 a barrel 
 
Brent was also down for a fifth day to hit its lowest in around two weeks. The global benchmark was 52 cents lower at $49.29 a barrel. 
 
Data from the American Petroleum Institute showed US&nbsp;crude inventories rose by 1.2 million barrels in the week to June 10 to 536.7 million, compared with analyst expectations for a decrease of 2.3 million barrels. 
 
But the impending vote on the so-called Brexit is dominating everything from currency markets to German Bunds, yields of which fell below zero for the first time on Tuesday after polls showed the &quot;Out&quot; campaign gaining over &quot;In&quot;. 
 
&quot;The broad picture at the moment is that oil is being swept up in a broad risk off move associated with Brexit primarily,&quot; said Ric Spooner, chief market analyst at CMC Markets in Sydney. 
 
The influential Sun newspaper, long a scourge of alleged European Union excess, also came out in support of Britain leaving the European Union. 
 
If Britain votes to exit the EU, investors fear the bloc could slip into a recession that would undermine oil demand. 
 
The oil market is now in balance due to unplanned outages and robust demand, particularly from emerging economies, but this equilibrium will tip into surplus again early in 2017, the International Energy Agency (IEA) said on Tuesday. 
 
But there is plenty of oil flowing into the market with Iran&#39;s exports on track to hit the highest in almost 4.5&nbsp;years in June, as shipments to Europe recover to near pre-sanctions level, a source with knowledge of the country&#39;s crude lifting plans has told Reuters.

US crude drops by 52 cents at $47.55 due to scaling agitation regarding the possibilities of Britain's exit from EU

Crude futures fell on Wednesday as mounting concerns about Britain's possible exit from the European Union and a surprise build in the US inventories left investors ignoring an International Energy Agency declaration that oil markets are now in balance. US crude fell to a three-week low of $47.55 as the contract dropped for a fifth day. It was trading down 52 cents at $47.97 a barrel Brent was also down for a fifth day to hit its lowest in around two weeks. The global benchmark was 52 cents lower at $49.29 a barrel. Data from the American Petroleum Institute showed US crude inventories rose by 1.2 million barrels in the week to June 10 to 536.7 million, compared with analyst expectations for a decrease of 2.3 million barrels. But the impending vote on the so-called Brexit is dominating everything from currency markets to German Bunds, yields of which fell below zero for the first time on Tuesday after polls showed the "Out" campaign gaining over "In". "The broad picture at the moment is that oil is being swept up in a broad risk off move associated with Brexit primarily," said Ric Spooner, chief market analyst at CMC Markets in Sydney. The influential Sun newspaper, long a scourge of alleged European Union excess, also came out in support of Britain leaving the European Union. If Britain votes to exit the EU, investors fear the bloc could slip into a recession that would undermine oil demand. The oil market is now in balance due to unplanned outages and robust demand, particularly from emerging economies, but this equilibrium will tip into surplus again early in 2017, the International Energy Agency (IEA) said on Tuesday. But there is plenty of oil flowing into the market with Iran's exports on track to hit the highest in almost 4.5 years in June, as shipments to Europe recover to near pre-sanctions level, a source with knowledge of the country's crude lifting plans has told Reuters.

US oil falls to three-week low on inventory gains due to Brexit fears

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