The Russia-Ukraine conflict is escalating in the Black Sea, raising fresh concerns over maritime security and global trade. At the same time, tensions continue to simmer in West Asia around the Strait of Hormuz and the Bab al-Mandeb Strait, two of the world's most strategic shipping chokepoints. With multiple maritime flashpoints under pressure, fears are growing over energy supplies, commercial shipping, and regional stability.

Russia and Ukraine Escalate Black Sea War, Bab Al-Mandeb and Hormuz Tensions Continue in West Asia

Oil prices slipped in early trading on Thursday (Jun 18) after the United States and Iran signed an interim deal to end the war in the Middle East. Shortly after the signing of the US-Iran memorandum of understanding, Pakistan’s Prime Minister Shehbaz Sharif announced that Tehran will reopen the Strait of Hormuz “instantly” and the American blockade of Iranian ports will end “immediately”. The development would mark the end of the largest energy disruption in history that rattled oil prices and global markets.As of 0005 GMT, Brent crude futures were down by 1.12 per cent, at $78.66 a barrel, while US West Texas Intermediate fell by 1.28 per cent to $75.81 a barrel.The benchmarks declined once again after briefly rising when US President Donald Trump on Wednesday (Jun 17) threatened Iran with a renewed bombing campaign if Iranians “don’t behave”.Also read | <a href="https://www.wionews.com/world/unfair-for-them-not-to-have-some-trump-says-iran-can-have-ballistic-missiles-as-peace-deal-takes-effect-1781755731618">‘Unfair for them not to have some’: Trump says Iran can have ballistic missiles as peace deal takes effect</a>“The sell-off extended as ​energy markets continued to aggressively price in a faster-than-expected return of Iranian barrels ​following the recent US-Iran memorandum of understanding,” IG market analyst Tony Sycamore said, as quoted by Reuters.The 14-point MoU has started a 60-day negotiation period during which Iran will allow maritime traffic to pass through the Strait of Hormuz toll-free. The deal also calls for the key shipping route to be restored to its full capacity within 30 days.The preliminary agreement leaves several contentious issues unresolved, most notably Iran’s nuclear programme. It also commits the United States and its partners to developing a $300 billion recovery package aimed at rebuilding Iran’s economy and infrastructure.Also read |<a href="https://www.wionews.com/world/very-difficult-guy-trump-says-netanyahu-nearly-derailed-us-iran-peace-deal-1781514228475"> ‘Very difficult guy’: Trump says Netanyahu nearly derailed US-Iran peace deal</a>Should the deal be fully implemented and the Strait of Hormuz reopened, the current supply crunch could eventually give way to a substantial oil surplus. In its monthly market report released on Wednesday, the International Energy Agency (IEA) stated that global oil supplies could exceed demand by 5.05 million barrels per day in 2027 as Middle Eastern exports return to international markets.Meanwhile, the US Federal Reserve is increasingly considering the possibility of raising interest rates later this year to curb inflationary pressures. Higher borrowing costs could slow economic activity and weigh on fuel consumption, potentially dampening oil demand.Nine of the Fed’s 19 policymakers now expect at least one rate hike this year – a notable shift from three months ago, when none anticipated tighter monetary policy.

Oil prices fell more than 1% after the US and Iran signed an interim deal to end their conflict, with Tehran set to reopen the Strait of Hormuz and restore disrupted energy flows.

Oil prices slipped in early trading on Thursday (Jun 18) after the United States and Iran signed an interim deal to end the war in the Middle East. Shortly after the signing of the US-Iran memorandum of understanding, Pakistan’s Prime Minister Shehbaz Sharif announced that Tehran will reopen the Strait of Hormuz “instantly” and the American blockade of Iranian ports will end “immediately”. The development would mark the end of the largest energy disruption in history that rattled oil prices and global markets. As of 0005 GMT, Brent crude futures were down by 1.12 per cent, at $78.66 a barrel, while US West Texas Intermediate fell by 1.28 per cent to $75.81 a barrel. The benchmarks declined once again after briefly rising when US President Donald Trump on Wednesday (Jun 17) threatened Iran with a renewed bombing campaign if Iranians “don’t behave”. Also read | ‘Unfair for them not to have some’: Trump says Iran can have ballistic missiles as peace deal takes effect “The sell-off extended as energy markets continued to aggressively price in a faster-than-expected return of Iranian barrels following the recent US-Iran memorandum of understanding,” IG market analyst Tony Sycamore said, as quoted by Reuters. The 14-point MoU has started a 60-day negotiation period during which Iran will allow maritime traffic to pass through the Strait of Hormuz toll-free. The deal also calls for the key shipping route to be restored to its full capacity within 30 days. The preliminary agreement leaves several contentious issues unresolved, most notably Iran’s nuclear programme. It also commits the United States and its partners to developing a $300 billion recovery package aimed at rebuilding Iran’s economy and infrastructure. Also read | ‘Very difficult guy’: Trump says Netanyahu nearly derailed US-Iran peace deal Should the deal be fully implemented and the Strait of Hormuz reopened, the current supply crunch could eventually give way to a substantial oil surplus. In its monthly market report released on Wednesday, the International Energy Agency (IEA) stated that global oil supplies could exceed demand by 5.05 million barrels per day in 2027 as Middle Eastern exports return to international markets. Meanwhile, the US Federal Reserve is increasingly considering the possibility of raising interest rates later this year to curb inflationary pressures. Higher borrowing costs could slow economic activity and weigh on fuel consumption, potentially dampening oil demand. Nine of the Fed’s 19 policymakers now expect at least one rate hike this year – a notable shift from three months ago, when none anticipated tighter monetary policy.

Oil prices fell more than 1% after the US and Iran signed an interim deal to end their conflict, with Tehran set to reopen the Strait of Hormuz and restore disrupted energy flows.

Crude oil prices fall more than 1% as Hormuz set to reopen after US-Iran peace deal

Global markets are on edge as uncertainty around Iran–United States ceasefire talks fuels fears of a major oil supply shock.

Crude prices have surged close to $100 per barrel amid stalled negotiations and ongoing disruptions in the Strait of Hormuz—a route that carries a significant share of the world’s oil supply.

Recent attacks on vessels and continued naval tensions have further complicated diplomacy, with energy flows severely disrupted and markets reacting sharply

Iran-US Ceasefire Talks: Global Markets Brace For Oil Supply Shock

The oil war in the Gulf is now being fought on a quieter front—insurance. Even as movement resumes through the Strait of Hormuz, the cost of transporting crude has surged sharply.


Oil Crisis: Insurance Costs Surge in Gulf Oil Routes 

The ongoing conflict in West Asia is now rippling through global industries, disrupting fuel supplies and pushing up energy costs. From transport to manufacturing, countries across Asia are being forced to adapt quickly as the Strait of Hormuz remains under strain.

West Asia Crisis Disrupts Global Supply Chains 

Tensions in West Asia have pushed the strategic Strait of Hormuz into the spotlight, raising fears of a major global energy and trade disruption. Nearly a fifth of the world’s oil supply passes through the narrow maritime corridor, making any military escalation in the region a serious threat to global energy markets.


West Asia Conflict: Strait of Hormuz Triggers Global Energy and Trade Disruptions 

The Kremlin said on Wednesday (September 6) that Russian President Vladmir Putin had a phone conversation with Saudi Crown Prince Mohammed bin Salman. It also said that leaders agreed recent agreement to cut energy supplies had stabilised the global energy markets.

Saudi Arabia and Russia are global leaders in oil production. The countries announced on Tuesday that voluntary oil supply cuts will be extended till the end of the year.

Russia will roll over its decision to reduce oil exports by 300,000 barrels per day (bpd), while Saudi Arabia will extend its voluntary oil output cut of 1 million bpd.

Watch | Kremlin: Nothing to say on report about Putin-Kim Jong-Un meet

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Kremlin said Putin and Mohammed bin Salman both, were highly satisfied with cooperation between the countries within OPEC+ framework. OPEC+ is the group of leading oil producers.

"It was noted that the agreements reached on reducing oil production, combined with voluntary commitments to limit the supply of the commodity, make it possible to ensure the stability of the global energy market," the Kremlin said in a readout of the call.

In October last year, OPEC+ decided to reduce output by two million barrels per day. The decision had enraged the US who at the time had accused Saudi Arabia of siding with Russia amid the Ukraine war.

Oil prices spiked in July, the first month of Saudi-only cut taking effect. The prices cleared USD 80 per barrel threshold which analysts often describe as price Saudi Arabia needs to balance it budget.

Also Read | <a href="https://www.wionews.com/world/zelensky-claims-russian-strike-kills-at-least-16-in-east-ukraine-market-632988">Zelensky claims Russian strike kills at least 16 in east Ukraine market</a>

Daily oil production in Saudi Arabia is approximately nine million barrels, well below its reported capacity of 12 million bpd.

Saudi oil firm Aramco announced profits of USD 30.08 billion in August for the second quarter of 2023. There was a fall of 38 per cent &nbsp;in the profits from the same period last year. The prices had surged last year after Russia invaded Ukraine.

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

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The Kremlin said on Wednesday (September 6) that Russian President Vladmir Putin had a phone conversation with Saudi Crown Prince Mohammed bin Salman. It also said that leaders agreed recent agreement to cut energy supplies had stabilised the global energy markets.

The Kremlin said on Wednesday (September 6) that Russian President Vladmir Putin had a phone conversation with Saudi Crown Prince Mohammed bin Salman. It also said that leaders agreed recent agreement to cut energy supplies had stabilised the global energy markets. Saudi Arabia and Russia are global leaders in oil production. The countries announced on Tuesday that voluntary oil supply cuts will be extended till the end of the year. Russia will roll over its decision to reduce oil exports by 300,000 barrels per day (bpd), while Saudi Arabia will extend its voluntary oil output cut of 1 million bpd. Watch | Kremlin: Nothing to say on report about Putin-Kim Jong-Un meet × Kremlin said Putin and Mohammed bin Salman both, were highly satisfied with cooperation between the countries within OPEC+ framework. OPEC+ is the group of leading oil producers. "It was noted that the agreements reached on reducing oil production, combined with voluntary commitments to limit the supply of the commodity, make it possible to ensure the stability of the global energy market," the Kremlin said in a readout of the call. In October last year, OPEC+ decided to reduce output by two million barrels per day. The decision had enraged the US who at the time had accused Saudi Arabia of siding with Russia amid the Ukraine war. Oil prices spiked in July, the first month of Saudi-only cut taking effect. The prices cleared USD 80 per barrel threshold which analysts often describe as price Saudi Arabia needs to balance it budget. Also Read | Zelensky claims Russian strike kills at least 16 in east Ukraine market Daily oil production in Saudi Arabia is approximately nine million barrels, well below its reported capacity of 12 million bpd. Saudi oil firm Aramco announced profits of USD 30.08 billion in August for the second quarter of 2023. There was a fall of 38 per cent in the profits from the same period last year. The prices had surged last year after Russia invaded Ukraine. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Putin, Mohammed bin Salman talk over phone, are satisfied about oil supply cuts: Kremlin

United States and Saudi Arabia relations have taken a sharp dip due to the raging war in Ukraine, the conflict has also given rise to an oil supply crisis.

Russia-Ukraine war leads to major oil supply crunch; US blames Saudi for siding with Russia

The OPEC Plus has decided to start cutting oil production in October by 100,000 barrels. Western sanctions on countries like Iran and Venezuela could squeeze oil supplies further. Palki Sharma tells you more.

Gravitas: Why your oil bills could spike again

Oil prices fell in early Asian trade on Monday, paring gains from the previous session. Oil supply remained tight amid lower OPEC output, unrest in Libya and sanctions on Russia.

Oil prices slip as recession fears rumble on

India's response to the crude-oil shock has been quick. It seems to be visibly changing its oil-supply chain. The most visible change is the absence of the US from the top suppliers league in Q2CY22.

US not among India's top oil suppliers, import from Russia go up

The&nbsp;International&nbsp;Energy&nbsp;Agency&nbsp;on Friday urged governments to urgently implement measures to cut global oil consumption within months following supply fears stemming from Russia's invasion of Ukraine.

The&nbsp;IEA&nbsp;also called on the OPEC+ group of oil-producing nations led by Saudi Arabia and Russia to help "relieve the strain" on markets, while warning that the world faced the biggest shock to supply "in decades".

The outbreak of war in Ukraine has sent prices for the fuel up sharply and led to major economies, such as the United States and Canada, sanctioning Russia by banning imports of oil.

Also read |&nbsp;<a href="https://www.wionews.com/world/appalling-ivanna-klympush-slams-macron-for-ruling-out-fast-tracking-eu-membership-for-ukraine-463436">'Appalling': Ivanna Klympush slams Macron for ruling out fast-tracking EU membership for Ukraine</a>

The&nbsp;IEA&nbsp;warned earlier this week of the risk of a global supply crisis as major oil companies, trading houses, shipping firms and banks have shunned Russia.

With the threat that supplies of Russian oil could be cut even more, "there is a real risk that markets tighten further and oil prices escalate significantly in the coming months" as the world enters its peak demand season, the&nbsp;IEA&nbsp;said.

"As a result of Russia's appalling aggression against Ukraine, the world may well be facing its biggest oil supply shock in decades, with huge implications for our economies and societies,"&nbsp;IEA&nbsp;Executive Director Fatih Birol said in a statement.

US pressures OPEC

Increases in supply of the crucial commodity "would not be able to ease the current strains" after the "disappointing outcome" of a recent monthly meeting of OPEC+, the&nbsp;IEA&nbsp;report concluded.

The OPEC+ group has resisted US pressure to step up production for months, agreeing only to modest increases in output at its regular meetings, even after Russia invaded Ukraine.

Also read |&nbsp;<a href="https://www.wionews.com/world/by-labeling-putin-a-war-criminal-biden-personalizes-the-conflict-463414">By labeling Putin a 'war criminal,' Biden personalizes the conflict</a>

The&nbsp;IEA&nbsp;was hoping for "some good messages which could help to relieve the strain on the oil markets" after the group's next meeting on March 31, Birol said at a press conference to present a plan to cut demand.

The 10 proposals put forward by the&nbsp;IEA&nbsp;could cut oil consumption among advanced economies "by 2.7 million barrels a day within the next four months", it said.

The measures, put forward together with the French government, could reduce consumption among those countries by 2.7 million barrels a day, while these currently consume between 44 and 45 million barrels a day, according to&nbsp;IEA&nbsp;estimates.

Together the world's advanced economies account for "around 45 per cent of global oil demand", it said.

The proposals, principally targeted at transport, included reducing speed limits, working from home three days a week, car-free Sundays, cheaper public transport and greater use of long-distance trains over planes.

Watch |&nbsp;Gravitas: Global Headlines: Ukraine refugee crisis, Fresh strike in Kyiv and more

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The International Energy Agency on Friday urged governments to urgently implement measures to cut global oil consumption within months following supply fears stemming from Russia's invasion of Ukraine.

The International Energy Agency on Friday urged governments to urgently implement measures to cut global oil consumption within months following supply fears stemming from Russia's invasion of Ukraine. The IEA also called on the OPEC+ group of oil-producing nations led by Saudi Arabia and Russia to help "relieve the strain" on markets, while warning that the world faced the biggest shock to supply "in decades". The outbreak of war in Ukraine has sent prices for the fuel up sharply and led to major economies, such as the United States and Canada, sanctioning Russia by banning imports of oil. Also read | 'Appalling': Ivanna Klympush slams Macron for ruling out fast-tracking EU membership for Ukraine The IEA warned earlier this week of the risk of a global supply crisis as major oil companies, trading houses, shipping firms and banks have shunned Russia. With the threat that supplies of Russian oil could be cut even more, "there is a real risk that markets tighten further and oil prices escalate significantly in the coming months" as the world enters its peak demand season, the IEA said. "As a result of Russia's appalling aggression against Ukraine, the world may well be facing its biggest oil supply shock in decades, with huge implications for our economies and societies," IEA Executive Director Fatih Birol said in a statement. US pressures OPEC Increases in supply of the crucial commodity "would not be able to ease the current strains" after the "disappointing outcome" of a recent monthly meeting of OPEC+, the IEA report concluded. The OPEC+ group has resisted US pressure to step up production for months, agreeing only to modest increases in output at its regular meetings, even after Russia invaded Ukraine. Also read | By labeling Putin a 'war criminal,' Biden personalizes the conflict The IEA was hoping for "some good messages which could help to relieve the strain on the oil markets" after the group's next meeting on March 31, Birol said at a press conference to present a plan to cut demand. The 10 proposals put forward by the IEA could cut oil consumption among advanced economies "by 2.7 million barrels a day within the next four months", it said. The measures, put forward together with the French government, could reduce consumption among those countries by 2.7 million barrels a day, while these currently consume between 44 and 45 million barrels a day, according to IEA estimates. Together the world's advanced economies account for "around 45 per cent of global oil demand", it said. The proposals, principally targeted at transport, included reducing speed limits, working from home three days a week, car-free Sundays, cheaper public transport and greater use of long-distance trains over planes. Watch | Gravitas: Global Headlines: Ukraine refugee crisis, Fresh strike in Kyiv and more

IEA urges 'emergency measures' to cut oil use over supply fears

OPEC and its allies, including Russia, announced Thursday they would gradually increase oil production over the next three months.

In agreeing to modest output increases, Saudi Arabia appears to have yielded to pressure from Russia and other producers who are eager to raise output. They want to take advantage of what they see as a likely growing global thirst for oil as economies slowly expand after pandemic lockdowns.

The group, known as OPEC Plus, has been withholding 8 million barrels a day from the market.

On this occasion, the Saudis “decided to go with the consensus of the members,” said Helima Croft, a commodity strategist at RBC Capital Markets, an investment bank.

Under the agreement, OPEC Plus will increase production by 350,000 barrels a day in both May and June and by 441,000 barrels a day in July. Over the same period, Saudi Arabia will gradually unwind additional cuts of 1 million barrels a day that it has been making voluntarily.

Prince Abdulaziz said during a news conference after the meeting that OPEC Plus wanted to test out increased production but would still be able to change plans if demand failed to materialize.

“We can freeze; we can increase; we can decrease,” he said.

For now, the oil market has accepted the prospect of increases that would amount to less than 1% of global consumption per month. Larry Goldstein, an oil analyst at the Energy Policy Research Foundation, said that the approach to relaxing cuts was “very modest and conservative” and would tend to bolster prices over the coming months.

In addition, Croft said, OPEC’s willingness to increase output is seen as a vote of confidence in the global economic recovery.

OPEC and its allies, including Russia, announced Thursday they would gradually increase oil production over the next three months. In agreeing to modest output increases, Saudi Arabia appears to have yielded to pressure from Russia and other producers who are eager to raise output.

OPEC and its allies, including Russia, announced Thursday they would gradually increase oil production over the next three months. In agreeing to modest output increases, Saudi Arabia appears to have yielded to pressure from Russia and other producers who are eager to raise output. They want to take advantage of what they see as a likely growing global thirst for oil as economies slowly expand after pandemic lockdowns. The group, known as OPEC Plus, has been withholding 8 million barrels a day from the market. On this occasion, the Saudis “decided to go with the consensus of the members,” said Helima Croft, a commodity strategist at RBC Capital Markets, an investment bank. Under the agreement, OPEC Plus will increase production by 350,000 barrels a day in both May and June and by 441,000 barrels a day in July. Over the same period, Saudi Arabia will gradually unwind additional cuts of 1 million barrels a day that it has been making voluntarily. Prince Abdulaziz said during a news conference after the meeting that OPEC Plus wanted to test out increased production but would still be able to change plans if demand failed to materialize. “We can freeze; we can increase; we can decrease,” he said. For now, the oil market has accepted the prospect of increases that would amount to less than 1% of global consumption per month. Larry Goldstein, an oil analyst at the Energy Policy Research Foundation, said that the approach to relaxing cuts was “very modest and conservative” and would tend to bolster prices over the coming months. In addition, Croft said, OPEC’s willingness to increase output is seen as a vote of confidence in the global economic recovery.

OPEC and its allies agree to gradual increases in oil production

The Conflict In West Asia Highlights The Need For India To Reduce Dependence On Oil

WION Edit: Renewable Energy for Economic autonomy & A peaceful world?

The US on Monday assured India that it was working with countries like Saudi Arabia and the United Arab Emirates to ensure oil supplies following imports drying up in the wake of US sanctions impacting New Delhi, reported news agency ANI.

US Ambassador to India Kenneth Juster made public the assurance after Trade Secretary Wilbur Ross held a meeting with Finance Minister Arun Jaitley at the North Block in which India`s concerns over oil supplies getting deeply impacted following the US sanctions on oil imports from Iran by other countries.

Juster, who accompanied Ross, said the US was working with other countries like Saudi Arabia and UAE to ensure adequate oil supplies to India.

On his part, Ross said "Iran is a problem if you have seen recent terrorism incidents and we should be doing whatever we can against terrorism.

"To a question, he replied it was premature to talk about Foreign Direct Investment (FDI) in e-commerce which he said he would discuss with Suresh Prabhu.

India was forced to stop importing crude oil from Iran May 2 after the US ended sanction waivers on countries importing oil from Teheran.

The Trump administration decided not to renew waiver that let countries like India buy Iranian oil without facing US sanctions.

New Delhi was expected to press the US government for continuation of Iranian supplies. India was the second biggest buyer of Iranian crude oil after China. It bought some 24 million tonnes of crude oil from Iran in the fiscal ended March 31 (2018-19).&nbsp;

Iran supplied more than a tenth of its oil needs. The shortfall will be made from alternate supply sources available in Saudi Arabia, Kuwait, UAE and Mexico. Oil Minister Dharmendra Pradhan had said "a robust plan for an adequate supply of crude oil to Indian refineries" is in place. &nbsp;

The US on Monday assured India that it was working with countries like Saudi Arabia and the United Arab Emirates to ensure oil supplies following imports drying up in the wake of US sanctions impacting New Delhi, reported news agency ANI.

The US on Monday assured India that it was working with countries like Saudi Arabia and the United Arab Emirates to ensure oil supplies following imports drying up in the wake of US sanctions impacting New Delhi, reported news agency ANI. US Ambassador to India Kenneth Juster made public the assurance after Trade Secretary Wilbur Ross held a meeting with Finance Minister Arun Jaitley at the North Block in which India`s concerns over oil supplies getting deeply impacted following the US sanctions on oil imports from Iran by other countries. Juster, who accompanied Ross, said the US was working with other countries like Saudi Arabia and UAE to ensure adequate oil supplies to India. On his part, Ross said "Iran is a problem if you have seen recent terrorism incidents and we should be doing whatever we can against terrorism. "To a question, he replied it was premature to talk about Foreign Direct Investment (FDI) in e-commerce which he said he would discuss with Suresh Prabhu. India was forced to stop importing crude oil from Iran May 2 after the US ended sanction waivers on countries importing oil from Teheran. The Trump administration decided not to renew waiver that let countries like India buy Iranian oil without facing US sanctions. New Delhi was expected to press the US government for continuation of Iranian supplies. India was the second biggest buyer of Iranian crude oil after China. It bought some 24 million tonnes of crude oil from Iran in the fiscal ended March 31 (2018-19). Iran supplied more than a tenth of its oil needs. The shortfall will be made from alternate supply sources available in Saudi Arabia, Kuwait, UAE and Mexico. Oil Minister Dharmendra Pradhan had said "a robust plan for an adequate supply of crude oil to Indian refineries" is in place.

Working with Saudi Arabia, UAE to ensure oil supplies to India: US

Oil markets dropped by around 1 per cent in 2019's first trading on Wednesday, pulled down by surging US&nbsp;output and concerns about an economic slowdown in 2019 as factory activity in China, the world's biggest oil importer, contracted.

International Brent crude futures were at $53.19 per barrel at 0544 GMT, down 61 cents, or 1.1 per cent, from their final close of 2018.

West Texas Intermediate (WTI) futures were at $44.95 per barrel, down 47 cents, or 1 per cent.

In physical oil markets, Dubai crude averaged $57.318 a barrel for December, the lowest since October 2017, two traders who participate in the market said on Wednesday.

Similarly, Malaysia's Petronas set the official selling price of a basket of December-loading Malaysian crude grades at $62.79 a barrel, the lowest since October 2017, the state oil firm said on Wednesday.

Traders said futures prices fell on expectations of oversupply amid surging US&nbsp;production and concerns about a global economic slowdown.

Factory activity weakened in December across Asia, including in China, as the Sino-US&nbsp;trade war and a slowdown in Chinese demand hit production in most economies, pointing to a rocky start for the world's top economic growth region in 2019.

Independent market analyst Greg McKenna said in a note on Wednesday that it was "difficult for traders and investors to ignore what looks like a genuine global economic slowdown."

That is also impacting sentiment in oil markets. Oil prices ended 2018 lower for the first time since 2015, after a desultory fourth quarter that saw buyers flee the market over growing worries about too much supply and mixed signals related to renewed US&nbsp;sanctions on Iran.

"Oil prices ... registered their first yearly decline in three years on fears of a slowing global economy and concerns of an ongoing supply glut," said Adeel Minhas, a consultant at Australia's Rivkin Securities.

For the year, WTI futures slumped nearly 25 per cent, while Brent tumbled nearly 20 per cent.

The outlook for 2019 is riddled with uncertainty, analysts said, including the US-China trade concerns and Brexit, as well as political instability and conflict in the Middle East.

A Reuters poll showed oil prices are expected to trade below $70 per barrel in 2019 as surplus production, much of it from the United States, and slowing economic growth undermine efforts led by the Organisation of the Petroleum Exporting Countries (OPEC) to cut supply and prop up prices.

On the production side, all eyes will be on the ongoing surge in US&nbsp;output and on OPEC's and Russia's supply discipline.

"Don't underestimate shale producers and the wider US&nbsp;oil industry in general. Too often this year the market pushed stories ... bottlenecks (pipelines, frack crews, truck drivers, etc.), yet US&nbsp;oil production will have grown by a massive 2+ million barrels per day between 1.1.2018 and 1.1.2019," consultancy JBC Energy said in an analysis of 2018.

US&nbsp;crude output rose to an all-time high of 11.537 million barrels per day (bpd) in October, the Energy Information Administration (EIA) said on Monday. That makes the US&nbsp;the world's biggest oil producer ahead of Russia and Saudi Arabia.

Weekly data, which is more open to revisions, was reported last week at 11.7 million bpd in late December by the EIA. 
&nbsp;

Oil markets dropped by around 1 per cent in 2019's first trading on Wednesday, pulled down by surging US output and concerns about an economic slowdown in 2019 as factory activity in China, the world's biggest oil importer, contracted.

Oil markets dropped by around 1 per cent in 2019's first trading on Wednesday, pulled down by surging US output and concerns about an economic slowdown in 2019 as factory activity in China, the world's biggest oil importer, contracted. International Brent crude futures were at $53.19 per barrel at 0544 GMT, down 61 cents, or 1.1 per cent, from their final close of 2018. West Texas Intermediate (WTI) futures were at $44.95 per barrel, down 47 cents, or 1 per cent. In physical oil markets, Dubai crude averaged $57.318 a barrel for December, the lowest since October 2017, two traders who participate in the market said on Wednesday. Similarly, Malaysia's Petronas set the official selling price of a basket of December-loading Malaysian crude grades at $62.79 a barrel, the lowest since October 2017, the state oil firm said on Wednesday. Traders said futures prices fell on expectations of oversupply amid surging US production and concerns about a global economic slowdown. Factory activity weakened in December across Asia, including in China, as the Sino-US trade war and a slowdown in Chinese demand hit production in most economies, pointing to a rocky start for the world's top economic growth region in 2019. Independent market analyst Greg McKenna said in a note on Wednesday that it was "difficult for traders and investors to ignore what looks like a genuine global economic slowdown." That is also impacting sentiment in oil markets. Oil prices ended 2018 lower for the first time since 2015, after a desultory fourth quarter that saw buyers flee the market over growing worries about too much supply and mixed signals related to renewed US sanctions on Iran. "Oil prices ... registered their first yearly decline in three years on fears of a slowing global economy and concerns of an ongoing supply glut," said Adeel Minhas, a consultant at Australia's Rivkin Securities. For the year, WTI futures slumped nearly 25 per cent, while Brent tumbled nearly 20 per cent. The outlook for 2019 is riddled with uncertainty, analysts said, including the US-China trade concerns and Brexit, as well as political instability and conflict in the Middle East. A Reuters poll showed oil prices are expected to trade below $70 per barrel in 2019 as surplus production, much of it from the United States, and slowing economic growth undermine efforts led by the Organisation of the Petroleum Exporting Countries (OPEC) to cut supply and prop up prices. On the production side, all eyes will be on the ongoing surge in US output and on OPEC's and Russia's supply discipline. "Don't underestimate shale producers and the wider US oil industry in general. Too often this year the market pushed stories ... bottlenecks (pipelines, frack crews, truck drivers, etc.), yet US oil production will have grown by a massive 2+ million barrels per day between 1.1.2018 and 1.1.2019," consultancy JBC Energy said in an analysis of 2018. US crude output rose to an all-time high of 11.537 million barrels per day (bpd) in October, the Energy Information Administration (EIA) said on Monday. That makes the US the world's biggest oil producer ahead of Russia and Saudi Arabia. Weekly data, which is more open to revisions, was reported last week at 11.7 million bpd in late December by the EIA.

Oil kicks off 2019 with losses on signs of economic slowdown, surging supply

Iran expressed optimism that the Organisation of the Petroleum Exporting Countries (OPEC) can strike a deal on limiting oil supplies after a meeting with the Alegrian representative in Tehran.&nbsp;

Iranian oil minister Bijan Zanganeh said the Gulf state had plans to announce its own decision about any output curbs at the group&#39;s meeting next week. &nbsp;

&quot;We are to present our views about this proposal at the ... November 30 OPEC meeting,&quot; Zanganeh said. &quot;The general trend and public statements suggest that OPEC can reach a viable agreement for its production and market management.&quot;

Iran &quot;carefully studied&quot; the proposal by the Algerian energy minister Nouredine Bouterfa on the oil production of each country.&nbsp;

Media reports said the minister called for 1.1 million barrels per day (bpd) in cuts by OPEC members and decreases totalling 600,000 bpd by non-members.

&quot;If OPEC members ... agree, oil prices will reach $50 to $55 next year and $60 by the end of the year,&quot; Bouterfa was quoted as saying.

The OPEC is working to reach a deal to limit oil output since 2008 but has faced opposition from Iran, which wants certain exemptions.&nbsp;

&quot;If we can agree, and I am optimistic, (oil) prices will increase and this is also what the world economy demands,&quot; Zanganeh said.&nbsp;

(WION with inputs from Reuters)&nbsp; 
&nbsp;

Oil minister said Iran will announce its own decision about any output curbs at the OPEC meeting next week

Iran expressed optimism that the Organisation of the Petroleum Exporting Countries (OPEC) can strike a deal on limiting oil supplies after a meeting with the Alegrian representative in Tehran. Iranian oil minister Bijan Zanganeh said the Gulf state had plans to announce its own decision about any output curbs at the group's meeting next week. "We are to present our views about this proposal at the ... November 30 OPEC meeting," Zanganeh said. "The general trend and public statements suggest that OPEC can reach a viable agreement for its production and market management." Iran "carefully studied" the proposal by the Algerian energy minister Nouredine Bouterfa on the oil production of each country. Media reports said the minister called for 1.1 million barrels per day (bpd) in cuts by OPEC members and decreases totalling 600,000 bpd by non-members. "If OPEC members ... agree, oil prices will reach $50 to $55 next year and $60 by the end of the year," Bouterfa was quoted as saying. The OPEC is working to reach a deal to limit oil output since 2008 but has faced opposition from Iran, which wants certain exemptions. "If we can agree, and I am optimistic, (oil) prices will increase and this is also what the world economy demands," Zanganeh said. (WION with inputs from Reuters)

Iran optimistic on finalising OPEC deal to limit oil supplies

The head of the Organization of the Petroleum Exporting Countries (OPEC) group warned against further cutbacks in investment by petroleum companies.&nbsp; 
 
In an effort to adapt to the falling price of crude, oil firms slashed their investment budgets by 26 percent last year.&nbsp; 
 
Mohammed Barkindo said a 22 percent drop was expected in investments this year which will pose a threat to future supplies.&nbsp; 
 
The OPEC secretary general said the market needs to be rebalanced and more severe cuts could leave the industry unable to meet rising demand in future years.&nbsp; 
 
Oil firms have been forced to cut prices from over $100 per barrel in 2014 to under $30 at the beginning of this year, before recovering to around $45. 
 
The 14 OPEC states and Russia are due to meet next week, with Venezuelan President Nicholas Maduro saying they were close to striking a deal on limiting output. 
 
On Tuesday, Brazil&#39;s state-run oil company Petrobras announced its plan to recover the company&#39;s financial strength, revising its five-year investment plan.&nbsp; 
 
New chief executive Pedro Parente said in a statement they will cut the investments by 25 percent over the next five years.&nbsp; 
 
&quot;In the total five-year horizon this plan encompasses, we propose that the company will have been restructured, that it have unquestionable governance and ethical standards.&quot; 
 
The new business plan projected investments at $74.1 billion from 2017 to 2021.&nbsp; 
 
(WION with inputs from agencies) 
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The OPEC secretary general stressed the need to fast track the process of rebalancing the markets to avoid future instability

The head of the Organization of the Petroleum Exporting Countries (OPEC) group warned against further cutbacks in investment by petroleum companies. In an effort to adapt to the falling price of crude, oil firms slashed their investment budgets by 26 percent last year. Mohammed Barkindo said a 22 percent drop was expected in investments this year which will pose a threat to future supplies. The OPEC secretary general said the market needs to be rebalanced and more severe cuts could leave the industry unable to meet rising demand in future years. Oil firms have been forced to cut prices from over $100 per barrel in 2014 to under $30 at the beginning of this year, before recovering to around $45. The 14 OPEC states and Russia are due to meet next week, with Venezuelan President Nicholas Maduro saying they were close to striking a deal on limiting output. On Tuesday, Brazil's state-run oil company Petrobras announced its plan to recover the company's financial strength, revising its five-year investment plan. New chief executive Pedro Parente said in a statement they will cut the investments by 25 percent over the next five years. "In the total five-year horizon this plan encompasses, we propose that the company will have been restructured, that it have unquestionable governance and ethical standards." The new business plan projected investments at $74.1 billion from 2017 to 2021. (WION with inputs from agencies)

OPEC head warns market instability may threaten future oil supply

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