Reacting to Ukraine-Russia tensions, oil prices have climbed towards their highest level in more than seven years on fears that a possible invasion of Ukraine by Russia could trigger sanctions from US and Europe and it could disrupt energy exports from world's top producer as well.

Russia-Ukraine tensions: Brent crude up 1.4%, WTI crude gains 1.6%

Oil rose 1% on Monday, hovering near 7-year highs hit in the previous session, amid concerns over tight supply as well as geopolitical tensions in Eastern Europe and the Middle East.

Oil prices are up around 1%, tensions in Eastern Europe back high prices

Oil prices jumped as geopolitical tensions in eastern Europe and the middle east heightened concerns about an already tight supply outlook.

Fears of tighter supplies back oil prices

Oil prices rose on Monday, with Brent futures touching their highest in more than three years, as investors bet supply will remain tight amid restrained output by major producers with global demand unperturbed by the Omicron coronavirus variant.

Brent crude at highest in over three years

The Biden administration has announced the release of strategic oil reserves but the US is not alone here. Joining Washington are India, Japan, South Korea, China, and the UK.

United States: Emergency oil release to lower fuel prices

In a bid to reassure Americans angry about inflation and goods shortages as they prepare for Thanksgiving -- and to lift his poll ratings -- President Joe Biden&nbsp;on Tuesday&nbsp;tapped the US strategic oil reserves.

Biden announced this coordinated plan to release 50 million barrels of crude from the country's oil reserves onto the market, hoping to ease the growing discontent about inflation and fuel costs.

The White House said that following weeks of negotiations, "this release will be taken in parallel with other major energy consuming nations, including China, India, Japan, Republic of Korea and the United Kingdom."

India plans to release 5 million barrels of oil from its caverns.

Also read |&nbsp;<a href="https://www.wionews.com/world/us-asks-india-china-others-to-consider-tapping-oil-reserves-430236">US asks India, China, others to consider tapping oil reserves</a>

"It will take time but before long you should see the price of gas drop," Biden said in a speech at the White House.

According to a senior administration official, it is anticipated that the releases will begin in mid-to-late December, and&nbsp;"responding to a once-in-a-century pandemic," further interventions may be necessary to stabilise the market.

"The president stands ready to take additional action if needed and is prepared to use his full authorities, working in coordination with the rest of the world, to maintain adequate supply as we exit the pandemic."

Also read |&nbsp;<a href="https://www.wionews.com/world/crunch-at-ports-may-mean-crisis-for-american-farms-429345">Crunch at ports may mean crisis for American farms</a>

Even as the US economy bounces back from the COVID-19 lockdowns, supply chain disruptions and inflation are stirring fears as the holiday season begins with Thanksgiving on Thursday.

"Moms and dads are worried asking will there be enough food we can afford to buy for the holidays? Will we be able to get Christmas presents to the kids on time?" Biden said, acknowledging that for many the price rises are "painful."

Critics, however, accuse him of failing to grasp the challenge.

The president pushed back on critics by noting that the two biggest trading ports, both located in southern California, were now working 24/7, as opposed to just 40 hours a week.

In the last few years, gasoline prices have fallen by about 10 per cent on the wholesale market, but at the pump, they remain the same.

Also read |&nbsp;<a href="https://www.wionews.com/world/history-says-dont-panic-about-inflation-428730">History says don’t panic about inflation</a>

"In other words, gas supply companies are paying less and making a lot more," he said, accusing companies of "pocketing the difference" between wholesale and retail prices.

Nevertheless, Biden's reassurances on tapping the oil reserve failed to impress Republican opponents.&nbsp;

"Joe Biden's failed leadership caused skyrocketing prices, and now American families are paying more for gas, groceries, and everything this Thanksgiving," Republican National Committee chair Ronna McDaniel said in a statement.

Watch |&nbsp;India, Japan working on oil-stock release

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/india-japan-working-on-oil-stock-release-431344/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Due to an increase in production, oil prices have already dropped nearly 10 per cent in the last few weeks. Officials echoed Joe Biden's concern that gasoline prices for drivers have risen despite the decline in crude prices.

A senior official, speaking on condition of anonymity, said the government was looking into "anti-competitive practices" and will "examine whether illegal conduct is costing families at the pump."

(With inputs from agencies)

In a bid to reassure Americans angry about inflation and goods shortages as they prepare for Thanksgiving -- and to lift his poll ratings -- President Joe Biden on Tuesday tapped the US strategic oil reserves.

In a bid to reassure Americans angry about inflation and goods shortages as they prepare for Thanksgiving -- and to lift his poll ratings -- President Joe Biden on Tuesday tapped the US strategic oil reserves. Biden announced this coordinated plan to release 50 million barrels of crude from the country's oil reserves onto the market, hoping to ease the growing discontent about inflation and fuel costs. The White House said that following weeks of negotiations, "this release will be taken in parallel with other major energy consuming nations, including China, India, Japan, Republic of Korea and the United Kingdom." India plans to release 5 million barrels of oil from its caverns. Also read | US asks India, China, others to consider tapping oil reserves "It will take time but before long you should see the price of gas drop," Biden said in a speech at the White House. According to a senior administration official, it is anticipated that the releases will begin in mid-to-late December, and "responding to a once-in-a-century pandemic," further interventions may be necessary to stabilise the market. "The president stands ready to take additional action if needed and is prepared to use his full authorities, working in coordination with the rest of the world, to maintain adequate supply as we exit the pandemic." Also read | Crunch at ports may mean crisis for American farms Even as the US economy bounces back from the COVID-19 lockdowns, supply chain disruptions and inflation are stirring fears as the holiday season begins with Thanksgiving on Thursday. "Moms and dads are worried asking will there be enough food we can afford to buy for the holidays? Will we be able to get Christmas presents to the kids on time?" Biden said, acknowledging that for many the price rises are "painful." Critics, however, accuse him of failing to grasp the challenge. The president pushed back on critics by noting that the two biggest trading ports, both located in southern California, were now working 24/7, as opposed to just 40 hours a week. In the last few years, gasoline prices have fallen by about 10 per cent on the wholesale market, but at the pump, they remain the same. Also read | History says don’t panic about inflation "In other words, gas supply companies are paying less and making a lot more," he said, accusing companies of "pocketing the difference" between wholesale and retail prices. Nevertheless, Biden's reassurances on tapping the oil reserve failed to impress Republican opponents. "Joe Biden's failed leadership caused skyrocketing prices, and now American families are paying more for gas, groceries, and everything this Thanksgiving," Republican National Committee chair Ronna McDaniel said in a statement. Watch | India, Japan working on oil-stock release Due to an increase in production, oil prices have already dropped nearly 10 per cent in the last few weeks. Officials echoed Joe Biden's concern that gasoline prices for drivers have risen despite the decline in crude prices. A senior official, speaking on condition of anonymity, said the government was looking into "anti-competitive practices" and will "examine whether illegal conduct is costing families at the pump." (With inputs from agencies)

US to release strategic oil reserves in coordination with major fuel user countries

United States: US plan could strain ties between Washington and Riyadh

U.S. oil prices rose for a fifth day amid global concerns about energy supply on signs of tightness in crude, natural gas and coal markets.

U.S. oil prices rise for a fifth day

Oil prices rose around 1% on Monday after hurricane Ida forced shutdowns and evacuations of hundreds of offshore oil platforms.

World Business Watch: Oil prices rise after hurricane Ida forces shutdown of offshore oil platforms

Oil prices rose more than 4 per cent Wednesday, extending gains from the previous session as improved risk appetite provided support despite data showing an unexpected rise in US oil inventories.

Brent crude futures rose $2.93, or 4.2 per cent, to $72.28 a barrel by 12:06 p.m. EDT (1606 GMT). US West Texas Intermediate (WTI) crude futures rose $3.16, or 4.7 per cent, to $70.36 a barrel, a 4.7 per cent gain.

Also read |&nbsp;<a href="https://www.wionews.com/world/major-oil-producers-agree-on-modest-output-boost-from-august-398881">Major oil producers agree on modest output boost from August</a>

Futures are rebounding after dropping around 7 per cent on Monday, following a deal by the Organization of Petroleum Exporting Countries and allies, together known as OPEC+, to boost supply by 400,000 barrels per day from August through December.

The sell-off was exacerbated by fears that a rise in cases of the <a href="https://www.wionews.com/world/delta-is-the-fastest-covid-19-variant-and-will-pick-off-the-most-vulnerable-who-393278">Delta variant</a> of the <a href="https://www.wionews.com/topics/coronavirus">coronavirus</a> in major markets like the United States, Britain and Japan would affect demand.

The price gains on Wednesday also come despite a rise in US crude stockpiles for the first time since May. Crude inventories rose unexpectedly by 2.1 million barrels last week to 439.7 million barrels, US Energy Information Administration data showed. Analysts had expected a 4.5 million-barrel drop.

Also read |&nbsp;<a href="https://www.wionews.com/world/opec-plans-new-output-policy-meeting-on-sunday-sources-say-398712">OPEC+ plans new output policy meeting on Sunday, sources say</a>

Still, gasoline and distillate inventories posted draws of 121,000 barrels and 1.3 million barrels, respectively.

"That crude oil build was obviously a surprise driven by a surge in imports and a plunge in exports," said John Kilduff, partner at Again Capital in New York. "The only positive aspects of the report remain strong gasoline demand and a rebound in distillate fuels."

JPMorgan analysts said global demand is expected to average 99.6 million barrels per day in August, up by 5.4 mbd from April. But they also said: "We only see 4Q21 demand recovering another incremental 330,000 vs a normalised 2019 baseline as colder weather sets in for the northern hemisphere and peak travel season is behind us."

Oil prices rose more than 4 per cent Wednesday, extending gains from the previous session as improved risk appetite provided support despite data showing an unexpected rise in US oil inventories.

Oil prices rose more than 4 per cent Wednesday, extending gains from the previous session as improved risk appetite provided support despite data showing an unexpected rise in US oil inventories. Brent crude futures rose $2.93, or 4.2 per cent, to $72.28 a barrel by 12:06 p.m. EDT (1606 GMT). US West Texas Intermediate (WTI) crude futures rose $3.16, or 4.7 per cent, to $70.36 a barrel, a 4.7 per cent gain. Also read | Major oil producers agree on modest output boost from August Futures are rebounding after dropping around 7 per cent on Monday, following a deal by the Organization of Petroleum Exporting Countries and allies, together known as OPEC+, to boost supply by 400,000 barrels per day from August through December. The sell-off was exacerbated by fears that a rise in cases of the Delta variant of the coronavirus in major markets like the United States, Britain and Japan would affect demand. The price gains on Wednesday also come despite a rise in US crude stockpiles for the first time since May. Crude inventories rose unexpectedly by 2.1 million barrels last week to 439.7 million barrels, US Energy Information Administration data showed. Analysts had expected a 4.5 million-barrel drop. Also read | OPEC+ plans new output policy meeting on Sunday, sources say Still, gasoline and distillate inventories posted draws of 121,000 barrels and 1.3 million barrels, respectively. "That crude oil build was obviously a surprise driven by a surge in imports and a plunge in exports," said John Kilduff, partner at Again Capital in New York. "The only positive aspects of the report remain strong gasoline demand and a rebound in distillate fuels." JPMorgan analysts said global demand is expected to average 99.6 million barrels per day in August, up by 5.4 mbd from April. But they also said: "We only see 4Q21 demand recovering another incremental 330,000 vs a normalised 2019 baseline as colder weather sets in for the northern hemisphere and peak travel season is behind us."

Oil climbs 4% despite rise in US inventories

Brent oil rose above $77 a barrel for the first time since 2018 after OPEC+ failed to reach an agreement on bringing back curtailed output, leaving the market with tighter supplies than expected.

World Business Watch: Brent oil jumps $77 after OPEC+ fails to reach output deal

Meanwhile, US oil inventories declined by 8.5 million barrels in the week ending June 11, according to American Petroleum Institute.

Brent crude continues climb, trades at $72.15 a barrel

Oil prices eased slightly on Monday on concerns that a resurgence of COVID-19 infections in India and Japan, the world's third and fourth largest oil importers, would cut fuel demand in Asia.

World Business Watch: Oil inches lower on concerns over COVID-19 surge in India, Japan

Oil prices have went down in early Asian trade on Monday after OPEC+ agreed last week to gradually ease some of its production cuts between May and July.

World Business Watch: Oil prices slip after OPEC+ agree to ease output cuts

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

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

Most oil rigs around the world are temporarily idle and the&nbsp;situation could soon turn permanent.&nbsp;

Oil consumption has dropped as&nbsp;lines at fuel pumps remain&nbsp;thin amid&nbsp;travel restrictions due to the virus worldwide.

Global demand fell 30 per cent during the pandemic as oil prices touched historic lows in April. For the first time, US oil prices slipped into negative and&nbsp;there was panic in major oil-producing countries.&nbsp;So, the oil bloc got together and cut production to keep up the prices.

The move worked but it left a big hole in the income statement. Without sufficient revenue, it is becoming expensive to stay in business.

In the last quarter, Saudi Aramco's&nbsp;profit plunged over 70 per cent. Royal Dutch Shell profit was down by 80 per cent. BP's efforts to stay over the red line is failing.

British oil firm has reported a loss of $17 billion. Exxon Mobil too has turned into a loss-making entity.&nbsp;A depressed stock market has made&nbsp;fundraising difficult.

Also, companies have been trying to save&nbsp;money&nbsp;laying off staff and cutting budgets. At least one million oil and gas employees are out of work.

Many distressed oil firms&nbsp; have been shutting down rigs and refineries.

In recent weeks caps have been put on at least eight rigs in America alone. Oil refiners are permanently closing processing plants in Asia and North America.

High-cost refineries in Europe could be the next in line. Plants in Australia and New Zealand face the same fate.&nbsp;According to the IMF, Gulf oil-producing countries' fate is sealed too. Their financial wealth will be depleted in the next 15 years if non-oil revenues don't make up for the losses.

According to a case study, Marathon Petroleum is America's largest refiner by volume. It is planning to halt some operations in California and New Mexico and intends to use the larger plant as an oil-storage facility and in the future produce renewable diesel&nbsp;from industrial waste and used cooking oil.

Even before the pandemic, six oil majors - BP, Shell, Chevron, Total, Eni and Exxon were pumping billions into clean energy.

However, it was just one per cent of their combined wealth.&nbsp;BP, one of the earliest oil explorers says the pandemic has changed the industry dynamics and&nbsp;quickened the shift away from fossil fuels.&nbsp;

Most oil rigs around the world are temporarily idle and the situation could soon turn permanent. Oil consumption has dropped as lines at fuel pumps remain thin amid travel restrictions due to the virus worldwide.

Most oil rigs around the world are temporarily idle and the situation could soon turn permanent. Oil consumption has dropped as lines at fuel pumps remain thin amid travel restrictions due to the virus worldwide. Global demand fell 30 per cent during the pandemic as oil prices touched historic lows in April. For the first time, US oil prices slipped into negative and there was panic in major oil-producing countries. So, the oil bloc got together and cut production to keep up the prices. The move worked but it left a big hole in the income statement. Without sufficient revenue, it is becoming expensive to stay in business. In the last quarter, Saudi Aramco's profit plunged over 70 per cent. Royal Dutch Shell profit was down by 80 per cent. BP's efforts to stay over the red line is failing. British oil firm has reported a loss of $17 billion. Exxon Mobil too has turned into a loss-making entity. A depressed stock market has made fundraising difficult. Also, companies have been trying to save money laying off staff and cutting budgets. At least one million oil and gas employees are out of work. Many distressed oil firms have been shutting down rigs and refineries. In recent weeks caps have been put on at least eight rigs in America alone. Oil refiners are permanently closing processing plants in Asia and North America. High-cost refineries in Europe could be the next in line. Plants in Australia and New Zealand face the same fate. According to the IMF, Gulf oil-producing countries' fate is sealed too. Their financial wealth will be depleted in the next 15 years if non-oil revenues don't make up for the losses. According to a case study, Marathon Petroleum is America's largest refiner by volume. It is planning to halt some operations in California and New Mexico and intends to use the larger plant as an oil-storage facility and in the future produce renewable diesel from industrial waste and used cooking oil. Even before the pandemic, six oil majors - BP, Shell, Chevron, Total, Eni and Exxon were pumping billions into clean energy. However, it was just one per cent of their combined wealth. BP, one of the earliest oil explorers says the pandemic has changed the industry dynamics and quickened the shift away from fossil fuels.

Pandemic effect: Oil rigs face closure worldwide amid shift towards clean energy

Brent crude ended the session up 74 cents, or 1.7%, at $45.17 a barrel, while West Texas Intermediate oil settled 49 cents, or 1.2% higher, at $42.19 a barrel.

Oil prices hit 5-month high as U.S crude stocks fall

The Gulf countries are also hit by the coronavirus pandemic and the global growth is likely to slow down further. Watch report.

Coronavirus Pandemic: Middle East, Central Asia growth slows, Lower oil prices

Since the start of April Brent has nearly doubled, propped up by the unprecedented production cut of 9.7 million barrels per day.

Oil climbs over 2% after OPEC deal

Crude oil prices, which have been on a steady increase for 3 consecutive weeks, seem to be coming to an end primarily due to the rising tension between the United States and China

Oil prices have risen sharply in recent weeks

The United States faces a stark choice in the Middle East if it continues its maximum pressure campaign against Iran: confront the Islamic republic militarily or withdraw from the region.

Trita Parsi, Executive Vice President of the Quincy Institute in Washington and a former head of the National Iranian American Council, recently drew that harsh conclusion. No doubt, Parsi may be correct in the ultimate analysis. US-Iranian tensions could easily spin out of control into an all-out war that neither Iran nor the United States wants.

There are, however, lots of shades of grey that separate long-standing tit-for-tat attacks on US targets – primarily in Iraq, occasional Iranian harassment of US naval vessels in the Gulf, and sporadic US responses, from all-out war.

The United States and Iran have been engaged in tit-for-tat with varying degrees of intensity for years and so far have avoided an uncontrolled escalation despite incidents such as the 1988 downing of Iran Air flight 655, that killed 274 people, and the targeted assassination earlier this year of Iranian General Qasem Soleimani.

Leaving aside potential black and grey swans, a more likely scenario is that a US desire to reduce its commitment to Gulf states, increased Gulf doubts about US reliability as a regional security guarantor, and a new world in which Gulf and Western states struggle to come to grips with the economic fallout of the coronavirus pandemic, create an environment more conducive to a multilateral security arrangement. One that would reduce the risk of war, even if multilateralism globally seems to be on the retreat.

US President Donald Trump’s threat in early April to cut off military sales to Saudi Arabia, if the kingdom did not bury the hatchet in its oil price war with Russia – sparking the collapse of oil markets, is an inevitable epic battle for market share.

More immediately, it drove the message home in Riyadh that US security guarantees were conditional and reinforced Saudi perceptions that the United States was getting disproportionately more out of its close ties to the kingdom than Saudi Arabia.

The Trump administration, in a little-noticed sign of the times, put Saudi Arabia in late April on a priority watch list for violations of intellectual property rights because of its pirating of sports broadcasting rights owned by Qatar’s beIN television franchise. The listing threatened to complicate Saudi Arabia’s already controversial bid to acquire English soccer club Newcastle United.

It is still too early to assess the geopolitical impact of the global economic downturn. Depressed demand and pricing for oil and gas could enable China to diversify its sourcing and potentially reduce its dependence on the Middle East, a volatile region with heightened security risks. China imported 31 per cent more oil from Russia last month while its intake of Saudi crude slipped by 1.8 per cent compared to March 2019.

At the same time, low oil prices that make US production commercially less viable could temporarily increase Washington’s interest in Gulf security.

Fundamentally, and irrespective of what scenario plays out, little will change. The US will still want to reduce its exposure to the Middle East. For its part, China will still need to secure oil and gas supplies as well as its investments and significant diaspora community in the region while seeking to avoid being sucked into intractable regional conflicts.

By the same token, the gradual revival of economic life, including a probable phased revitalisation of supply chains and international travel, combined with a need to rethink migrant worker housing and create local employment, could alter Middle Eastern perspectives of China’s way of doing business.

China’s Belt-and-Road projects often have a China-wins-twice aspect to them that may have always been problematic but have become even more so in a post-pandemic economic environment. China-funded projects rely by and large on Chinese labour and materials supply rather than local sourcing.

The People’s Republic’s “China First” approach extends beyond economics and commerce. In an environment in which the United States is an irreplaceable but unreliable partner, Gulf states may look differently at Chinese hesitancy to co-shoulder responsibility for regional security with the risk of having to involve itself in multiple conflicts it has so far been able to stay aloof from.

The coronavirus pandemic constitutes a watershed that will colour Middle Eastern attitudes towards all of the region’s foremost external players: the United States, China, and Russia. Prior to the crisis, Russia, the weakest of the three, was playing a weak economic hand well, but may find that more difficult going forward.

Gulf states are likely to conclude that assertive go-it-alone policies are risky and only work in specific circumstances where big powers are either part of the ploy or look the other way. Though such were easier to pursue in a stable economic environment in which their oil and gas revenue base appeared secure.

The United Arab Emirates appears to have read the writing on the wall. It began a year ago to hedge its bets by reaching out to Iran in a bid to ensure that it would not become a theatre of war if US-Iranian tensions were to spin out of control. Still, that has not stopped its support for rebel forces in Libya led by renegade Field Marshall Khalifa Haftar in violation of an international arms embargo.

Trump’s threat of a cut-off in military sales to Saudi Arabia should have driven the point home. Yet, financially and economically weakened, less able to play big powers off against one another, and deprived of any viable alternative options, the kingdom and other Gulf states may find that a multilateral security arrangement that incorporates rather than replaces the United States’ regional defence umbrella is the only security straw they can hold on to.

Nevertheless, in eventually attempting to negotiate a new arrangement, they may also find that they no longer have the kind of leverage they had prior to a pandemic that in many ways has pulled the rug from beneath them.

&nbsp;(First published <a href="https://insidearabia.com/gulf-security-arab-gulf-states-have-no-good-options/">on Inside Arabia</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

The United States faces a stark choice in the Middle East if it continues its maximum pressure campaign against Iran: confront the Islamic republic militarily or withdraw from the region.

The United States faces a stark choice in the Middle East if it continues its maximum pressure campaign against Iran: confront the Islamic republic militarily or withdraw from the region. Trita Parsi, Executive Vice President of the Quincy Institute in Washington and a former head of the National Iranian American Council, recently drew that harsh conclusion. No doubt, Parsi may be correct in the ultimate analysis. US-Iranian tensions could easily spin out of control into an all-out war that neither Iran nor the United States wants. There are, however, lots of shades of grey that separate long-standing tit-for-tat attacks on US targets – primarily in Iraq, occasional Iranian harassment of US naval vessels in the Gulf, and sporadic US responses, from all-out war. The United States and Iran have been engaged in tit-for-tat with varying degrees of intensity for years and so far have avoided an uncontrolled escalation despite incidents such as the 1988 downing of Iran Air flight 655, that killed 274 people, and the targeted assassination earlier this year of Iranian General Qasem Soleimani. Leaving aside potential black and grey swans, a more likely scenario is that a US desire to reduce its commitment to Gulf states, increased Gulf doubts about US reliability as a regional security guarantor, and a new world in which Gulf and Western states struggle to come to grips with the economic fallout of the coronavirus pandemic, create an environment more conducive to a multilateral security arrangement. One that would reduce the risk of war, even if multilateralism globally seems to be on the retreat. US President Donald Trump’s threat in early April to cut off military sales to Saudi Arabia, if the kingdom did not bury the hatchet in its oil price war with Russia – sparking the collapse of oil markets, is an inevitable epic battle for market share. More immediately, it drove the message home in Riyadh that US security guarantees were conditional and reinforced Saudi perceptions that the United States was getting disproportionately more out of its close ties to the kingdom than Saudi Arabia. The Trump administration, in a little-noticed sign of the times, put Saudi Arabia in late April on a priority watch list for violations of intellectual property rights because of its pirating of sports broadcasting rights owned by Qatar’s beIN television franchise. The listing threatened to complicate Saudi Arabia’s already controversial bid to acquire English soccer club Newcastle United. It is still too early to assess the geopolitical impact of the global economic downturn. Depressed demand and pricing for oil and gas could enable China to diversify its sourcing and potentially reduce its dependence on the Middle East, a volatile region with heightened security risks. China imported 31 per cent more oil from Russia last month while its intake of Saudi crude slipped by 1.8 per cent compared to March 2019. At the same time, low oil prices that make US production commercially less viable could temporarily increase Washington’s interest in Gulf security. Fundamentally, and irrespective of what scenario plays out, little will change. The US will still want to reduce its exposure to the Middle East. For its part, China will still need to secure oil and gas supplies as well as its investments and significant diaspora community in the region while seeking to avoid being sucked into intractable regional conflicts. By the same token, the gradual revival of economic life, including a probable phased revitalisation of supply chains and international travel, combined with a need to rethink migrant worker housing and create local employment, could alter Middle Eastern perspectives of China’s way of doing business. China’s Belt-and-Road projects often have a China-wins-twice aspect to them that may have always been problematic but have become even more so in a post-pandemic economic environment. China-funded projects rely by and large on Chinese labour and materials supply rather than local sourcing. The People’s Republic’s “China First” approach extends beyond economics and commerce. In an environment in which the United States is an irreplaceable but unreliable partner, Gulf states may look differently at Chinese hesitancy to co-shoulder responsibility for regional security with the risk of having to involve itself in multiple conflicts it has so far been able to stay aloof from. The coronavirus pandemic constitutes a watershed that will colour Middle Eastern attitudes towards all of the region’s foremost external players: the United States, China, and Russia. Prior to the crisis, Russia, the weakest of the three, was playing a weak economic hand well, but may find that more difficult going forward. Gulf states are likely to conclude that assertive go-it-alone policies are risky and only work in specific circumstances where big powers are either part of the ploy or look the other way. Though such were easier to pursue in a stable economic environment in which their oil and gas revenue base appeared secure. The United Arab Emirates appears to have read the writing on the wall. It began a year ago to hedge its bets by reaching out to Iran in a bid to ensure that it would not become a theatre of war if US-Iranian tensions were to spin out of control. Still, that has not stopped its support for rebel forces in Libya led by renegade Field Marshall Khalifa Haftar in violation of an international arms embargo. Trump’s threat of a cut-off in military sales to Saudi Arabia should have driven the point home. Yet, financially and economically weakened, less able to play big powers off against one another, and deprived of any viable alternative options, the kingdom and other Gulf states may find that a multilateral security arrangement that incorporates rather than replaces the United States’ regional defence umbrella is the only security straw they can hold on to. Nevertheless, in eventually attempting to negotiate a new arrangement, they may also find that they no longer have the kind of leverage they had prior to a pandemic that in many ways has pulled the rug from beneath them. (First published on Inside Arabia) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Coronavirus will reshape security and political landscape of Middle East

Brent crude oil rebounded from 2-days of losses. Oil trading has been more volatile than ever in recent days. Watch report.

US oil jumps 20% in wild trade: Revound from 20-yr low levels

Brent crude oil plunged more than 12 per cent to below USD 17 a barrel on Wednesday even as the United States erased early gains and fell.

In another day of volatile trading, US benchmark WTI surged in early Asian deals while Brent also edged up on news that top producers had held talks -- only for prices to suddenly change course.

Consequently, Brent dropped 12.31 per cent to $16.98 a barrel, extending heavy losses from a day earlier. WTI for June delivery, which had rebounded about 20 per cent at the open, was down around 5 per cent at $11 a barrel in the afternoon.

Prices have plunged as lockdowns and travel restrictions introduced worldwide to stem the spread of the virus hammer demand.

On Monday, WTI for May delivery collapsed to an unprecedented low of minus $40.32 as traders scrambled to sell it before the contract expired Tuesday, but could find few buyers with storage capacity fast filling up.

Analysts said the morning bounce was driven by news that members of exporting group OPEC, as well as some allies in the OPEC+ grouping, held a teleconference Tuesday -- but grim reality soon returned to the markets.

US crude has been particularly hard-hit because of storage problems, as WTI is delivered at a single, inland point, although the sell-off has now spread to Brent.

The crisis was worsened by a price war between Saudi Arabia and Russia.

<a href="https://www.wionews.com/business-economy/us-oil-prices-surge-after-massive-fall-293935">Also read | US oil prices surge after massive fall</a>

Brent crude oil plunged more than 12 per cent to below USD 17 a barrel on Wednesday even as the United States erased early gains and fell. In another day of volatile trading, US benchmark WTI surged in early Asian deals while Brent also edged up on news that top producers had held talks -- only for prices to suddenly change course.

Brent crude oil plunged more than 12 per cent to below USD 17 a barrel on Wednesday even as the United States erased early gains and fell. In another day of volatile trading, US benchmark WTI surged in early Asian deals while Brent also edged up on news that top producers had held talks -- only for prices to suddenly change course. Consequently, Brent dropped 12.31 per cent to $16.98 a barrel, extending heavy losses from a day earlier. WTI for June delivery, which had rebounded about 20 per cent at the open, was down around 5 per cent at $11 a barrel in the afternoon. Prices have plunged as lockdowns and travel restrictions introduced worldwide to stem the spread of the virus hammer demand. On Monday, WTI for May delivery collapsed to an unprecedented low of minus $40.32 as traders scrambled to sell it before the contract expired Tuesday, but could find few buyers with storage capacity fast filling up. Analysts said the morning bounce was driven by news that members of exporting group OPEC, as well as some allies in the OPEC+ grouping, held a teleconference Tuesday -- but grim reality soon returned to the markets. US crude has been particularly hard-hit because of storage problems, as WTI is delivered at a single, inland point, although the sell-off has now spread to Brent. The crisis was worsened by a price war between Saudi Arabia and Russia. Also read | US oil prices surge after massive fall

Oil plunges again as US erases early gains

US oil prices jumped on Wednesday after falling below zero for the first time at the start of the week due to a coronavirus-triggered collapse in demand.

US benchmark West Texas Intermediate for June delivery was up almost 10 per cent at $12.68 a barrel, paring gains of around 20 per cent at the open in Asia.

The market has been under heavy pressure due to massive oversupply as lockdowns and travel restrictions introduced worldwide to stem the spread of the coronavirus hammer demand. US crude has been particularly hard-hit due to storage problems, as WTI is delivered at a single, inland point.

<a href="https://www.wionews.com/world/crude-oil-demand-falls-but-memes-hit-a-high-293750">Also read |&nbsp;Crude oil demand falls. But memes hit a high!</a>

WTI for May delivery on Monday collapsed to an unprecedented low of minus $40.32 as traders scrambled to sell it before the contract expired Tuesday, but could find few buyers with storage capacity fast filling up.

European benchmark Brent crude for June delivery bounced more than 2 per cent at the open, but then reversed gains and was trading around 3 per cent lower, with a barrel changing hands for $18.73.

It had tumbled to an 18-year low the previous day.&nbsp;

The oil crisis was worsened by a price war between Saudi Arabia and Russia. They drew a line under the dispute earlier this month and, along with other top producers, agreed to slash output by almost 10 million barrels a day to shore up coronavirus-hit markets.

<a href="https://www.wionews.com/business-economy/stock-markets-tumble-on-oil-market-crash-sensex-down-1000-points-293755">Also read |&nbsp;Stock markets tumble on oil market crash, Sensex down 1000 points</a>

US oil prices jumped on Wednesday after falling below zero for the first time at the start of the week due to a coronavirus-triggered collapse in demand. US benchmark West Texas Intermediate for June delivery was up almost 10 per cent at $12.

US oil prices jumped on Wednesday after falling below zero for the first time at the start of the week due to a coronavirus-triggered collapse in demand. US benchmark West Texas Intermediate for June delivery was up almost 10 per cent at $12.68 a barrel, paring gains of around 20 per cent at the open in Asia. The market has been under heavy pressure due to massive oversupply as lockdowns and travel restrictions introduced worldwide to stem the spread of the coronavirus hammer demand. US crude has been particularly hard-hit due to storage problems, as WTI is delivered at a single, inland point. Also read | Crude oil demand falls. But memes hit a high! WTI for May delivery on Monday collapsed to an unprecedented low of minus $40.32 as traders scrambled to sell it before the contract expired Tuesday, but could find few buyers with storage capacity fast filling up. European benchmark Brent crude for June delivery bounced more than 2 per cent at the open, but then reversed gains and was trading around 3 per cent lower, with a barrel changing hands for $18.73. It had tumbled to an 18-year low the previous day. The oil crisis was worsened by a price war between Saudi Arabia and Russia. They drew a line under the dispute earlier this month and, along with other top producers, agreed to slash output by almost 10 million barrels a day to shore up coronavirus-hit markets. Also read | Stock markets tumble on oil market crash, Sensex down 1000 points

US oil prices surge after massive fall

US President Donald Trump said on Monday that his administration was considering the possibility of stopping incoming Saudi Arabian crude oil shipments as a measure to support the battered domestic drilling industry.

"Well, I'll look at it," Trump told reporters at a daily news conference after he was asked about requests by some Republican lawmakers to block the shipments under his executive authority.

Trump said he had heard the proposal immediately before the news briefing. "We certainly have plenty of oil, so I'll take a look at it," he said.

US&nbsp;crude oil futures collapsed to trade in negative territory for the first time in history on Monday, amid a coronavirus-induced supply glut. Futures ended the day at a stunning minus-$37.63 a barrel as desperate traders paid to get rid of oil as storage space was close to running out.

The collapse in prices has threatened to tilt the once-booming US&nbsp;oil industry into bankruptcy.

Trump described the drop as short-term and stemming from a "financial squeeze," but said the oil industry was hurting from a lack of demand, as states have imposed stay-in-place restrictions to curb the spread of the virus.

"The problem is no one is driving a car anywhere in the world, essentially. ... Factories are closed, businesses are closed," Trump said. "We had really a lot of energy to start off with, oil in particular, and then all of a sudden they lost 40%, 50% of their market."

He said the global producer group known as OPEC+ had agreed to cut production by some 15 million barrels per day, and said weak prices could force more declines for economic reasons.

"They have to do more by the market, it's the same thing over here. If the market is the way it is, people are going to slow it down or they're going to stop. That's going to be automatic, and that's happening," Trump said.

Trump reiterated that his administration plans to top up the nation's emergency crude oil stockpile as prices plunge.

The Department of Energy is in the process of leasing some of the roughly 77 million barrels of available space in the Strategic Petroleum Reserve to U.S. oil companies to help them deal with dearth of commercial storage as the coronavirus outbreak crushes domestic energy demand.

The administration initially wanted to purchase the crude oil directly, but Congress has yet to approve the funding.

Asked if he still wanted lawmakers to approve the funding, Trump said the space in the SPR would be filled either way.

US President Donald Trump said on Monday that his administration was considering the possibility of stopping incoming Saudi Arabian crude oil shipments as a measure to support the battered domestic drilling industry.

US President Donald Trump said on Monday that his administration was considering the possibility of stopping incoming Saudi Arabian crude oil shipments as a measure to support the battered domestic drilling industry. "Well, I'll look at it," Trump told reporters at a daily news conference after he was asked about requests by some Republican lawmakers to block the shipments under his executive authority. Trump said he had heard the proposal immediately before the news briefing. "We certainly have plenty of oil, so I'll take a look at it," he said. US crude oil futures collapsed to trade in negative territory for the first time in history on Monday, amid a coronavirus-induced supply glut. Futures ended the day at a stunning minus-$37.63 a barrel as desperate traders paid to get rid of oil as storage space was close to running out. The collapse in prices has threatened to tilt the once-booming US oil industry into bankruptcy. Trump described the drop as short-term and stemming from a "financial squeeze," but said the oil industry was hurting from a lack of demand, as states have imposed stay-in-place restrictions to curb the spread of the virus. "The problem is no one is driving a car anywhere in the world, essentially. ... Factories are closed, businesses are closed," Trump said. "We had really a lot of energy to start off with, oil in particular, and then all of a sudden they lost 40%, 50% of their market." He said the global producer group known as OPEC+ had agreed to cut production by some 15 million barrels per day, and said weak prices could force more declines for economic reasons. "They have to do more by the market, it's the same thing over here. If the market is the way it is, people are going to slow it down or they're going to stop. That's going to be automatic, and that's happening," Trump said. Trump reiterated that his administration plans to top up the nation's emergency crude oil stockpile as prices plunge. The Department of Energy is in the process of leasing some of the roughly 77 million barrels of available space in the Strategic Petroleum Reserve to U.S. oil companies to help them deal with dearth of commercial storage as the coronavirus outbreak crushes domestic energy demand. The administration initially wanted to purchase the crude oil directly, but Congress has yet to approve the funding. Asked if he still wanted lawmakers to approve the funding, Trump said the space in the SPR would be filled either way.

Trump to consider halting Saudi oil imports

US benchmark WTI oil collapsed to $0.01 a barrel in New York as the coronavirus epidemic ravaged the oil market.

<a href="https://www.wionews.com/business-economy/oil-prices-tumble-to-11-amid-oversupply-fall-in-demand-due-to-coronavirus-293611">Also Read:&nbsp;Oil prices tumble to $11 amid oversupply, fall in demand due to coronavirus</a>

A major supply glut and the coronavirus epidemic which has led to a fall in demand led to a crash in prices never seen before in the international oil prices.

West Texas Intermediate (WTI) for May delivery continued to sink to the unheard of price of a penny a barrel, before inching up to $0.27.

The crash came even as OPEC and Russia had last week reached a deal to cut output by nearly 10 million barrels per day starting May to boost prices.

With the global economy coming to a virtual standstill with several countries across the world including the US on a lockdown, the demand for oil has plunged to a historic low.

The crash in oil prices hit the US stock exchange with Dow down 1.3 per cent to 23,930.97 with S&amp;P 500 losing 0.8 per cent to 2,851.58, while the Nasdaq dipping 0.1 per cent to 8,641.94.

US benchmark WTI oil collapsed to $0.01 a barrel in New York as the coronavirus epidemic ravaged the oil market. Also Read: Oil prices tumble to $11 amid oversupply, fall in demand due to coronavirus A major supply glut and the coronavirus epidemic which has led to a fall in demand led to a crash in prices never seen before in the international oil prices.

US benchmark WTI oil collapsed to $0.01 a barrel in New York as the coronavirus epidemic ravaged the oil market. Also Read: Oil prices tumble to $11 amid oversupply, fall in demand due to coronavirus A major supply glut and the coronavirus epidemic which has led to a fall in demand led to a crash in prices never seen before in the international oil prices. West Texas Intermediate (WTI) for May delivery continued to sink to the unheard of price of a penny a barrel, before inching up to $0.27. The crash came even as OPEC and Russia had last week reached a deal to cut output by nearly 10 million barrels per day starting May to boost prices. With the global economy coming to a virtual standstill with several countries across the world including the US on a lockdown, the demand for oil has plunged to a historic low. The crash in oil prices hit the US stock exchange with Dow down 1.3 per cent to 23,930.97 with S&P 500 losing 0.8 per cent to 2,851.58, while the Nasdaq dipping 0.1 per cent to 8,641.94.

Amid coronavirus pandemic, US benchmark WTI oil collapses to $0.01 a barrel

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

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

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

Oil prices claw back ground post crash

Oil prices rose ten per cent on Tuesday after Russia indicated that it was open to cooperation with OPEC, a day after prices recorded biggest one-day percentage decline since the first Gulf War in 1991.

<a href="https://www.wionews.com/business-economy/oil-takes-biggest-daily-dive-in-over-a-decade-as-russia-opec-split-284881">Also Read:&nbsp;Oil takes biggest daily dive in over a decade as Russia, OPEC split</a>

Russian energy minister Alexander Novak told state television that various tools including reduction and increasing production could take place after Saudi Arabia indicated it would increase production from current level of &nbsp;9.7 million bpd.

Watch Video:

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/wion-fineprint-saudi-arabia-plans-big-oil-output-hike-285319/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

"Saudi Aramco announces that it will provide its customers with 12.3 million barrels per day of crude oil in April," the company said in a statement.

Brent crude futures were up $3.36, nearly 10%, to $37.72 a barrel.

"The Company has agreed with its customers to provide them with such volumes starting 1 April 2020. The Company expects that this will have a positive, long-term financial effect," the statement.

Saudi Arabia's decision to ramp up oil output is set to trigger an all-out price war in a sector which has been hit due to fall in demand due to the coronavirus in China and large scale oil inventory present in the world markets with demand not likely to take place in the near future.

Oil prices rose ten per cent on Tuesday after Russia indicated that it was open to cooperation with OPEC, a day after prices recorded biggest one-day percentage decline since the first Gulf War in 1991.

Oil prices rose ten per cent on Tuesday after Russia indicated that it was open to cooperation with OPEC, a day after prices recorded biggest one-day percentage decline since the first Gulf War in 1991. Also Read: Oil takes biggest daily dive in over a decade as Russia, OPEC split Russian energy minister Alexander Novak told state television that various tools including reduction and increasing production could take place after Saudi Arabia indicated it would increase production from current level of 9.7 million bpd. Watch Video: "Saudi Aramco announces that it will provide its customers with 12.3 million barrels per day of crude oil in April," the company said in a statement. Brent crude futures were up $3.36, nearly 10%, to $37.72 a barrel. "The Company has agreed with its customers to provide them with such volumes starting 1 April 2020. The Company expects that this will have a positive, long-term financial effect," the statement. Saudi Arabia's decision to ramp up oil output is set to trigger an all-out price war in a sector which has been hit due to fall in demand due to the coronavirus in China and large scale oil inventory present in the world markets with demand not likely to take place in the near future.

Oil prices rise 10% after Russia indicates 'open to cooperation with OPEC'

Goldman Sachs said a potential drop in oil demand from top energy consumer China due to the <a href="https://www.wionews.com/world/wuhan-mayor-asks-citizens-not-to-travel-outside-as-chinas-coronavirus-spreads-275911">outbreak of a new coronavirus</a> could hurt crude prices by about $3 per barrel, countering concerns about Middle East supply disruptions.

The outbreak began in the central Chinese city of Wuhan in Hubei and has spread to the rest of the country, with 440 confirmed cases and nine deaths so far. It has also spread to the United States, Thailand, South Korea, Japan and Taiwan.

Also Read: <a href="https://www.wionews.com/business-economy/global-markets-asia-shares-feel-a-chill-as-china-virus-risks-mount-275735">Asian shares dip as China virus spreads</a>

The new virus, which health officials have said can be <a href="https://www.wionews.com/india-news/china-coronavirus-viral-outbreak-forces-india-to-strengthen-airport-safety-laws-275899">passed from person to person</a>, has worried financial markets as investors recalled the Severe Acute Respiratory Syndrome (SARS) epidemic in 2002-2003, also a coronavirus outbreak that started in China and killed nearly 800 people worldwide.

<img alt="Chinese Stock Market" data-entity-type="file" data-entity-uuid="ae8db9dc-366b-4603-9a5d-51f703234b09" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20%2857%29_0.jpg" /> 
[ Chinese Stock Market (Courtesy: Reuters) ]

"Translating the estimated SARS demand impact into 2020 volumes points to a potential 260,000 barrels per day negative shock to global oil demand on average," Goldman said in a note dated Jan. 21. The estimate includes a 170,000 barrels per day loss of jet fuel demand, it added.

The bank expects jet fuel markets, including cracks, regrade and Asian differentials, to be hit the most if the outbreak leads to a decline in regional air travel.

While a supply response from the Organization of the Petroleum Exporting Countries could limit any fundamental impact from such a demand shock, the initial uncertainty could lead to a larger oil price sell-off, Goldman added.

Brent crude prices are currently just below $65 a barrel, while U.S. oil is at about $58 a barrel.

Goldman Sachs said a potential drop in oil demand from top energy consumer China due to the outbreak of a new coronavirus could hurt crude prices by about $3 per barrel, countering concerns about Middle East supply disruptions.

Goldman Sachs said a potential drop in oil demand from top energy consumer China due to the outbreak of a new coronavirus could hurt crude prices by about $3 per barrel, countering concerns about Middle East supply disruptions. The outbreak began in the central Chinese city of Wuhan in Hubei and has spread to the rest of the country, with 440 confirmed cases and nine deaths so far. It has also spread to the United States, Thailand, South Korea, Japan and Taiwan. Also Read: Asian shares dip as China virus spreads The new virus, which health officials have said can be passed from person to person, has worried financial markets as investors recalled the Severe Acute Respiratory Syndrome (SARS) epidemic in 2002-2003, also a coronavirus outbreak that started in China and killed nearly 800 people worldwide. [ Chinese Stock Market (Courtesy: Reuters) ] "Translating the estimated SARS demand impact into 2020 volumes points to a potential 260,000 barrels per day negative shock to global oil demand on average," Goldman said in a note dated Jan. 21. The estimate includes a 170,000 barrels per day loss of jet fuel demand, it added. The bank expects jet fuel markets, including cracks, regrade and Asian differentials, to be hit the most if the outbreak leads to a decline in regional air travel. While a supply response from the Organization of the Petroleum Exporting Countries could limit any fundamental impact from such a demand shock, the initial uncertainty could lead to a larger oil price sell-off, Goldman added. Brent crude prices are currently just below $65 a barrel, while U.S. oil is at about $58 a barrel.

China virus could hit oil prices by $3 per barrel: Goldman

Oil prices slipped on Wednesday on concerns that the Phase 1 trade deal between the United States and China, the world's biggest oil users, may not boost demand as the United States intends to keep tariffs on Chinese goods until a second phase.

<a href="https://www.wionews.com/business-economy/oil-prices-surge-to-new-high-after-iran-attacks-us-bases-in-iraq-272812">Also Read: Oil prices surge to new high after Iran attacks US bases in Iraq</a>

Also putting pressure on prices was a report from OPEC saying it saw lower demand for its oil in 2020 even as global demand rises, as rival producers grab market share and the United States looks set for another output record.

Brent crude was down 8 cents at $64.41 per barrel by 1257 GMT. U.S. West Texas Intermediate crude futures were down 3 cents at $58.21 a barrel.

US&nbsp;Treasury Secretary Steven Mnuchin said late on Tuesday that tariffs on Chinese goods will remain in place until the completion of a second phase of a US-China trade agreement, even as both sides are expected to sign an interim deal later on Wednesday.

"A pickup with global demand for crude may struggle as US-Chinese tensions linger after some hard line stances from the Trump administration," said Edward Moya, analyst at brokerage OANDA.

"Financial markets are disappointed that the Trump administration ... signalled tariffs will remain in place until after the 2020 US&nbsp;Presidential election, depending on whether China comes through on their promises with the Phase 1 agreement."

US&nbsp;President Donald Trump is due to sign the Phase 1 agreement with Chinese Vice Premier Liu He at the White House on Wednesday. That agreement is expected to include provisions for China to buy up to $50 billion more in US&nbsp;energy supplies.

U.S. crude inventories rose by 1.1 million barrels, data from the American Petroleum Institute showed, countering expectations for a draw.

The United States, whose output has soared in recent years powered by shale, will see total liquids output exceed a 20 million barrel per day (bpd) milestone for the first time, the Organization of the Petroleum Exporting Countries forecast in its market report.

US&nbsp;liquids output will reach 20.21 million bpd in the fourth quarter of 2020 - almost meeting US&nbsp;demand of 21.34 million bpd, OPEC said.

"The continued accommodative monetary policies, coupled with an improvement in financial markets, could provide further support to ongoing increases in non-OPEC supply," OPEC said.

OPEC and some non-OPEC allies such as Russia have been curbing production to prevent an oil glut and support oil prices above $60 per barrel. Their current deal expires in March.

"The collaboration between OPEC and non-OPEC producing countries remains essential in maintaining stability in the oil market," OPEC said.

Oil prices slipped on Wednesday on concerns that the Phase 1 trade deal between the United States and China, the world's biggest oil users, may not boost demand as the United States intends to keep tariffs on Chinese goods until a second phase.

Oil prices slipped on Wednesday on concerns that the Phase 1 trade deal between the United States and China, the world's biggest oil users, may not boost demand as the United States intends to keep tariffs on Chinese goods until a second phase. Also Read: Oil prices surge to new high after Iran attacks US bases in Iraq Also putting pressure on prices was a report from OPEC saying it saw lower demand for its oil in 2020 even as global demand rises, as rival producers grab market share and the United States looks set for another output record. Brent crude was down 8 cents at $64.41 per barrel by 1257 GMT. U.S. West Texas Intermediate crude futures were down 3 cents at $58.21 a barrel. US Treasury Secretary Steven Mnuchin said late on Tuesday that tariffs on Chinese goods will remain in place until the completion of a second phase of a US-China trade agreement, even as both sides are expected to sign an interim deal later on Wednesday. "A pickup with global demand for crude may struggle as US-Chinese tensions linger after some hard line stances from the Trump administration," said Edward Moya, analyst at brokerage OANDA. "Financial markets are disappointed that the Trump administration ... signalled tariffs will remain in place until after the 2020 US Presidential election, depending on whether China comes through on their promises with the Phase 1 agreement." US President Donald Trump is due to sign the Phase 1 agreement with Chinese Vice Premier Liu He at the White House on Wednesday. That agreement is expected to include provisions for China to buy up to $50 billion more in US energy supplies. U.S. crude inventories rose by 1.1 million barrels, data from the American Petroleum Institute showed, countering expectations for a draw. The United States, whose output has soared in recent years powered by shale, will see total liquids output exceed a 20 million barrel per day (bpd) milestone for the first time, the Organization of the Petroleum Exporting Countries forecast in its market report. US liquids output will reach 20.21 million bpd in the fourth quarter of 2020 - almost meeting US demand of 21.34 million bpd, OPEC said. "The continued accommodative monetary policies, coupled with an improvement in financial markets, could provide further support to ongoing increases in non-OPEC supply," OPEC said. OPEC and some non-OPEC allies such as Russia have been curbing production to prevent an oil glut and support oil prices above $60 per barrel. Their current deal expires in March. "The collaboration between OPEC and non-OPEC producing countries remains essential in maintaining stability in the oil market," OPEC said.

Oil prices slip over US-China trade deal concern

Indian shares rose on Friday, tracking global markets, as <a href="https://www.wionews.com/opinions/could-iran-us-tensions-mean-troubled-waters-ahead-in-the-strait-of-hormuz-273207">US-Iran tensions</a> abated and investors looked for domestic cues ahead of corporate earnings.

The NSE&nbsp;Nifty&nbsp;50 index inched up 0.16 per cent&nbsp;to 12,234.25 by 0413 GMT, while the benchmark <a href="https://www.wionews.com/business-economy/sensex-jumps-634-points-as-us-iran-tensions-ease-auto-and-realty-stocks-gain-273229">S&amp;P BSE Sensex</a> was 0.14 per cent&nbsp;higher at 41,511.58. The&nbsp;Nifty&nbsp;50 and Sensex are headed for a weekly gain of around 0.5 per cent&nbsp;each.

Meanwhile, easing oil prices came as a relief for investors in India, the world's third-biggest oil consumer. <a href="https://www.wionews.com/india-news/fresh-hike-in-petrol-diesel-prices-in-india-273300">Brent crude</a> was headed for its first decline in six weeks.&nbsp;

"There were some panic and fears from the global market which is fading out domestic cues are also not that negative, in fact, they are improving," said Shrikant Chouhan, technical analyst at Kotak Securities.

<a href="https://www.wionews.com/business-economy/sensex-nifty-surge-as-easing-middle-east-tensions-steady-crude-prices-273111">MSCI's broadest</a> gauge of the world's stocks in 49 countries rose a tad to hit an all-time high and its index of <a href="https://www.wionews.com/business-economy/asian-shares-erase-losses-as-mideast-tensions-ease-oil-ticks-up-273093">Asia-Pacific shares</a> outside Japan rose 0.18 per cent.&nbsp;

In India, IT heavyweight Infosys Ltd rose 1.44 per cent&nbsp;ahead of its third-quarter earnings due later in the day.

Shares of Indian private sector lender Yes Bank Ltd rose 1.37 per cent&nbsp;ahead of a board meeting on Friday to discuss a capital raise as it looks to stave off the impact of bad loans.

Airline stocks Interglobe Aviation Ltd and SpiceJet Ltd reacted positively to lower oil prices, rising 1.68 per cent&nbsp;and 0.94 per cent&nbsp;respectively.

Bharti Infratel Ltd and Dr Reddy's Laboratories Ltd were among the top gainers on the&nbsp;Nifty, rising 2.13 per cent&nbsp;and 2.06 per cent&nbsp;each.&nbsp;

Indian shares rose on Friday, tracking global markets, as US-Iran tensions abated and investors looked for domestic cues ahead of corporate earnings. The NSE Nifty 50 index inched up 0.

Indian shares rose on Friday, tracking global markets, as US-Iran tensions abated and investors looked for domestic cues ahead of corporate earnings. The NSE Nifty 50 index inched up 0.16 per cent to 12,234.25 by 0413 GMT, while the benchmark S&P BSE Sensex was 0.14 per cent higher at 41,511.58. The Nifty 50 and Sensex are headed for a weekly gain of around 0.5 per cent each. Meanwhile, easing oil prices came as a relief for investors in India, the world's third-biggest oil consumer. Brent crude was headed for its first decline in six weeks. "There were some panic and fears from the global market which is fading out domestic cues are also not that negative, in fact, they are improving," said Shrikant Chouhan, technical analyst at Kotak Securities. MSCI's broadest gauge of the world's stocks in 49 countries rose a tad to hit an all-time high and its index of Asia-Pacific shares outside Japan rose 0.18 per cent. In India, IT heavyweight Infosys Ltd rose 1.44 per cent ahead of its third-quarter earnings due later in the day. Shares of Indian private sector lender Yes Bank Ltd rose 1.37 per cent ahead of a board meeting on Friday to discuss a capital raise as it looks to stave off the impact of bad loans. Airline stocks Interglobe Aviation Ltd and SpiceJet Ltd reacted positively to lower oil prices, rising 1.68 per cent and 0.94 per cent respectively. Bharti Infratel Ltd and Dr Reddy's Laboratories Ltd were among the top gainers on the Nifty, rising 2.13 per cent and 2.06 per cent each.

Nifty, Sensex headed for weekly gain as Mideast tensions ease

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