Indian Oil Corp Ltd, the country's top refiner, on Wednesday reported a net loss in the March quarter, hurt by a surge in inventory losses.

The state-owned company reported a fourth-quarter net loss of 51.85 billion rupees, compared with a profit of 60.99 billion rupees a year earlier.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/in-a-first-diesel-more-costly-than-petrol-in-delhi-308154" hreflang="en">In a first, diesel more costly than petrol in Delhi</a>

Revenue from operations for the reported quarter fell 2.77% to 1.4 trillion rupees.

Inventory losses, which include finished goods, stock-in-trade and work in progress were at 56.68 billion rupees for the March quarter against a loss of 5.96 billion rupees a year ago, the refiner said.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/geopolitical-risks-indias-economy-to-contract-31-in-2020-says-moodys-307884" hreflang="en">'Geopolitical risks': India's economy to contract 3.1% in 2020, says Moody's</a>

Inventory loss is booked when oil prices fall by the time a company processes oil into fuel.&nbsp;

IOC, along with unit Chennai Petroleum, controls about a third of India's five million-barrels-per-day refining capacity.&nbsp;

Indian Oil Corp Ltd, the country's top refiner, on Wednesday reported a net loss in the March quarter, hurt by a surge in inventory losses. The state-owned company reported a fourth-quarter net loss of 51.

Indian Oil Corp Ltd, the country's top refiner, on Wednesday reported a net loss in the March quarter, hurt by a surge in inventory losses. The state-owned company reported a fourth-quarter net loss of 51.85 billion rupees, compared with a profit of 60.99 billion rupees a year earlier. Also read: In a first, diesel more costly than petrol in Delhi Revenue from operations for the reported quarter fell 2.77% to 1.4 trillion rupees. Inventory losses, which include finished goods, stock-in-trade and work in progress were at 56.68 billion rupees for the March quarter against a loss of 5.96 billion rupees a year ago, the refiner said. Also read: 'Geopolitical risks': India's economy to contract 3.1% in 2020, says Moody's Inventory loss is booked when oil prices fall by the time a company processes oil into fuel. IOC, along with unit Chennai Petroleum, controls about a third of India's five million-barrels-per-day refining capacity.

Indian Oil Corp posts quarterly loss as inventory losses surge

Saudi Aramco has started laying off hundreds of employees this month due to slump in oil and gas demand globally.

WION Dispatch: Saudi Aramco cuts hundreds of jobs

OPEC and its allies led by Russia meet on Saturday to approve extending record oil production cuts and to push countries such as Iraq and Nigeria to comply better with existing curbs.

OPEC, Russia meet to extend record oil cuts

The first of five Iranian tankers entered the South American country's exclusive economic zone, even though US had warned against it.

The tankers are carrying fuel for&nbsp;gasoline-starved Venezuela, and entered the country's waters on Saturday evening around 7:40pm local time.

The tanker&nbsp;passed north of the neighboring dual-island Caribbean nation of Trinidad and Tobago before entering the country's waters, according to vessel tracking data from Refinitiv Eikon.

<a href="https://www.wionews.com/world/fbi-probes-mexican-european-firms-over-venezuela-oil-trading-299111">Also read:&nbsp;FBI probes Mexican, European firms over Venezuela oil trading</a>

According to government sources, the tanker, named Fortune, is carrying a total of 1.53 million barrels of gasoline and alkylate to Venezuela.

The shipment has caused a diplomatic stir between Venezuela, Iran and the US. Venezuela is facing an acute shortage of oil due to a nearly complete breakdown of&nbsp;OPEC nation's 1.3 million barrel-per-day refining network.

A Washington spokesperson said he was unaware of any operations related to the Iranian cargoes, and the US will be considering measures in response.

However, few days ago Iranian President Hassan Rouhani warned Washington about retaliation&nbsp;any problems were caused for tankers carrying Iranian fuel to Venezuela, a local news agency had reported.

The first of five Iranian tankers entered the South American country's exclusive economic zone, even though US had warned against it. The tankers are carrying fuel for gasoline-starved Venezuela, and entered the country's waters on Saturday evening around 7:40pm local time.

The first of five Iranian tankers entered the South American country's exclusive economic zone, even though US had warned against it. The tankers are carrying fuel for gasoline-starved Venezuela, and entered the country's waters on Saturday evening around 7:40pm local time. The tanker passed north of the neighboring dual-island Caribbean nation of Trinidad and Tobago before entering the country's waters, according to vessel tracking data from Refinitiv Eikon. Also read: FBI probes Mexican, European firms over Venezuela oil trading According to government sources, the tanker, named Fortune, is carrying a total of 1.53 million barrels of gasoline and alkylate to Venezuela. The shipment has caused a diplomatic stir between Venezuela, Iran and the US. Venezuela is facing an acute shortage of oil due to a nearly complete breakdown of OPEC nation's 1.3 million barrel-per-day refining network. A Washington spokesperson said he was unaware of any operations related to the Iranian cargoes, and the US will be considering measures in response. However, few days ago Iranian President Hassan Rouhani warned Washington about retaliation any problems were caused for tankers carrying Iranian fuel to Venezuela, a local news agency had reported.

Iranian tankers carrying 1.53 million barrels fuel enter US waterways despite warnings

COVID-19 has shattered many world-class economies and the worst hit are oil exporters. Saudi Arabia's foreign exchange reserves are depleting at the fastest rate. Watch report.

Saudi's reserves fall in fastest in 20 years | Forex reserves at a 9-year low

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

The coronavirus has brought a lot of firsts but none as stark and shocking as oil trading in the negative zone. Also read: We will never let the great US oil & gas industry down, says Trump after prices crash What does that even mean?

The coronavirus has brought a lot of firsts but none as stark and shocking as oil trading in the negative zone. Also read: We will never let the great US oil & gas industry down, says Trump after prices crash What does that even mean? Traders paying buyers to take the oil off their hands. So the consumers get both the oil and the cash. Also read: China eases entry, sets up 'fast-track channels' for business personnel to visit This should sound good but it isn't. This has happened for the first time in history. This story is about the US oil benchmark. This is a bit technical but let's simplify it and break it down to four questions and answers. Why did the oil prices crash? Monday, was a really bad day for the oil markets. The price of one barrel of oil hit about 20 dollars. That's about 1,600 rupees. One barrel has 159 litres. So it can be said oil prices fell to 10 rupees a litre. But, the benchmark for US oil witnessed something unheard of. The benchmark is called West Texas intermediate. Here the oil prices fell into the negative and that's where it stayed. Oil ended the day around $30 below zero. Now, this benchmark-- is a point of reference for American traders. An indicator for oil prices in America. On Monday, traders looked at it with horror. The graph fell below zero. Traders were stuck with barrels of oil. And nobody to buy it. Oil used to be considered gold right now it is worthless. Why is this happening? Why are global oil prices falling? There are a couple of reasons. One: The demand has dropped. The world is in lockdown mode. People are at home. Not driving, not flying. Factories are shut. So there's no demand. Two: The battle between Saudi Arabia and Russia over oil prices. They reached a truce. But it came too late. They agreed to cut production a few days back. But before their agreement, companies kept pumping the market with oil. Now, there is a demand-supply mismatch. Oil kept coming, but it wasn't being used. The result is this-- the world has more oil than it needs. So, the prices have collapsed. So the oil prices are falling. US Traders are paying people to buy oil. Does this mean you get paid to fill up your tank? The answer is no. That's not how it works. The price of crude oil has dropped. That does not mean a fall in retail prices. The crude fall The fall was in something called the futures contract. It is an agreement to buy or sell something at a future date. And, the drop in America does not affect prices in India. India imports the Brent crude. Its price is low but stable. But, that does not mean the prices in India can't drop. What does the price drop mean for India? Its good news. But not necessarily for you and me. India can import oil for cheap. The government can consider stocking up the reserves. But, the retail prices may not see a major drop. Two factors decide the prices of oil in India. The price of the rupee against the dollar and the 15-day average prices. The rupee has fallen to record lows against the dollar. One dollar costs around 77 rupees. So, importing the oil will cost more. Here is how the world should look at the situation for oil. For importers, more oil is available for cheap. They can buy more at throwaway prices. But this price fall is bad for business. Exporters will struggle. In America, if the prices fall more --- businesses could shut, people could lose jobs. Major exporters like Saudi Arabia might be able to manage the shock. Russia is feeling the pinch of this drop already. The rubble is losing its value and the situation might not improve anytime soon.

Oil trades in negative zone, how does it impact prices across the globe?

The coronavirus pandemic and the global economic meltdown forced Saudi Arabia, the United Arab Emirates, the United States, and Russia to call time out in a war that was less about prices and more about market share and survival of the fittest. The agreement among producers to cut production by 10 million barrels a day amounts to a ceasefire that will likely end once economies recover and can again sustain the cost of war.

Saudi Arabia and the United Arab Emirates (UAE) risk jeopardising their relationship with the United States as a result of diverging interests that became evident with the eruption of the recent oil price war. That remains true even if the war was unsustainable in the midst of a devastating pandemic.

So far, Saudi Arabia has been the focus of US wrath at the kingdom’s perceived insensitivity and recklessness while the UAE has managed to fly under the radar despite it too declaring that it would increase production in support of the price war with Russia. The question is for how long the UAE can stay off the radar.

An immediate crisis has been averted with an agreement on Sunday, April 12 between members of the Organisation of Oil Exporting Countries (OPEC) and non-OPEC producers to cut production by some 10 million barrels a day.

But 13 US Republican Congressmen from oil-producing states put Saudi Arabia on notice in a two-hour phone call with Saudi Energy Minister Abdulaziz bin Salman a day after the agreement.

“The Saudis spent over a month waging war on American oil producers, all while our troops protected theirs.”

“While we appreciate them taking the first step toward fixing the problem they helped create, the Saudis spent over a month waging war on American oil producers, all while our troops protected theirs. That’s not how friends treat friends. Their actions were inexcusable and won’t be forgotten. Saudi Arabia’s next steps will determine whether our strategic partnership is salvageable,” said North Dakota Senator Kevin Cramer

The Congressmen’s notice reflected a deterioration of the kingdom’s relations with Congress over the past two years as well as US President Donald J Trump’s anger at the Saudi price war.

There is, however, a silver lining in the US-Saudi clash over oil prices even if it was suspended with the production cut agreement. The clash clarifies the parameters of the long-standing relationship between the two countries.

Eager to knock out the US shale industry, which accounts for some 10 million jobs, Saudi Arabia made clear that it would pursue its interests irrespective of US concerns or the fact that the world was in a massive economic downturn as the result of a pandemic.

“The Kingdom will . . . have to reduce its budgetary expenditures while wisely accessing its financial reserves for essential spending as it fights this potentially long-term battle of the fittest for market share in global energy,” said Ali Shihabi, a political analyst and former banker who often reflects Saudi thinking.

To accommodate sharply reduced revenues, the Saudi finance ministry has instructed government bodies to submit proposals to slash this year’s spending by up to 30 per cent, the economic consultancy Nasser Saidi and Associates said in a research note.

The US-Saudi clash has also laid bare the vulnerability of the US shale industry at a critical time. The ability of the United States to project itself as the world’s largest producer and exporter takes on added significance against the backdrop of a decline in US credibility reinforced by America’s inability to get a grip on the coronavirus crisis.

The irony is that US anger could have, just as well been, directed at the UAE, which was quick to declare its support of the Saudi move to drive prices below US shale’s breakeven point by flooding the market.

There’s “ample production capacity that will be quickly brought online given the current circumstances,” UAE Energy Minister Suhail Al Mazrouei said on March 11.

By putting Saudi Arabia, and by implication, the UAE on notice, the Congressmen were drawing battle lines for a renewed clash in the future that may have become even more inevitable as a result of the pandemic and its economic fallout.

With a likely reduction of the value of oil reserves and limited new gas stockpiles in the coming decades because of the rise of shale and renewables, Saudi Arabia needs to secure market share by capitalising on its low costs. Indeed, the kingdom has one of the world’s lowest costs of production of a barrel of oil.

The collapse in demand, low prices, and the global economic turndown increase the importance of market share. Saudi Arabia is likely to have to downsize its attention-grabbing big tickets like Neom – the futuristic city on the Red Sea, and focus on revenue and job-creating sectors.

“There’s a high likelihood (Neom) fades into nothingness. . . . The momentum will likely die out. And it will take a lot to rebuild that momentum,” said a Gulf-based economist.

In a sign of the times, JPMorgan was reportedly seeking to sell at a discount loans raised by the sovereign wealth funds of Saudi Arabia and the UAE as banks brace for a borrowing spree in the Gulf due to low oil prices.

Saudi Arabia may seek to create jobs and markets for its petrochemicals by developing plastics processing and chemicals.

Some economists suggest that Saudi Arabia and other oil producers may seek to create jobs and domestic and regional markets for their petrochemicals by pushing the development of plastics processing and chemicals.

Saudi Arabia hinted at a return to a focus on energy derivatives with the acquisition by its sovereign wealth fund of stakes worth roughly $1 billion in four major European oil companies—Equinor, Royal Dutch Shell, Total, and Eni.

“Managing heightened public expectations of the leadership will be crucial in maintaining public support for MbS when the pandemic subsides. The crisis is also a test for the progress made on Saudi Vision 2030, especially its programs to transform public services, reduce unemployment, and diversify the economy away from oil,” said Saudi Arabia scholar Yasmine Farouk.

Farouk was referring to Saudi Crown Prince Mohammed bin Salman by his initials and his Vision 2030 plan to lessen the kingdom’s dependence on oil revenues by diversifying its economy.

(Views expressed above are the personal views of the author and do not reflect the views of ZMCL)

(First published on <a href="https://insidearabia.com/us-saudi-oil-clash-sets-stage-for-future-epic-battle/">The Inside Arabia</a>)

The coronavirus pandemic and the global economic meltdown forced Saudi Arabia, the United Arab Emirates, the United States, and Russia to call time out in a war that was less about prices and more about market share and survival of the fittest.

The coronavirus pandemic and the global economic meltdown forced Saudi Arabia, the United Arab Emirates, the United States, and Russia to call time out in a war that was less about prices and more about market share and survival of the fittest. The agreement among producers to cut production by 10 million barrels a day amounts to a ceasefire that will likely end once economies recover and can again sustain the cost of war. Saudi Arabia and the United Arab Emirates (UAE) risk jeopardising their relationship with the United States as a result of diverging interests that became evident with the eruption of the recent oil price war. That remains true even if the war was unsustainable in the midst of a devastating pandemic. So far, Saudi Arabia has been the focus of US wrath at the kingdom’s perceived insensitivity and recklessness while the UAE has managed to fly under the radar despite it too declaring that it would increase production in support of the price war with Russia. The question is for how long the UAE can stay off the radar. An immediate crisis has been averted with an agreement on Sunday, April 12 between members of the Organisation of Oil Exporting Countries (OPEC) and non-OPEC producers to cut production by some 10 million barrels a day. But 13 US Republican Congressmen from oil-producing states put Saudi Arabia on notice in a two-hour phone call with Saudi Energy Minister Abdulaziz bin Salman a day after the agreement. “The Saudis spent over a month waging war on American oil producers, all while our troops protected theirs.” “While we appreciate them taking the first step toward fixing the problem they helped create, the Saudis spent over a month waging war on American oil producers, all while our troops protected theirs. That’s not how friends treat friends. Their actions were inexcusable and won’t be forgotten. Saudi Arabia’s next steps will determine whether our strategic partnership is salvageable,” said North Dakota Senator Kevin Cramer The Congressmen’s notice reflected a deterioration of the kingdom’s relations with Congress over the past two years as well as US President Donald J Trump’s anger at the Saudi price war. There is, however, a silver lining in the US-Saudi clash over oil prices even if it was suspended with the production cut agreement. The clash clarifies the parameters of the long-standing relationship between the two countries. Eager to knock out the US shale industry, which accounts for some 10 million jobs, Saudi Arabia made clear that it would pursue its interests irrespective of US concerns or the fact that the world was in a massive economic downturn as the result of a pandemic. “The Kingdom will . . . have to reduce its budgetary expenditures while wisely accessing its financial reserves for essential spending as it fights this potentially long-term battle of the fittest for market share in global energy,” said Ali Shihabi, a political analyst and former banker who often reflects Saudi thinking. To accommodate sharply reduced revenues, the Saudi finance ministry has instructed government bodies to submit proposals to slash this year’s spending by up to 30 per cent, the economic consultancy Nasser Saidi and Associates said in a research note. The US-Saudi clash has also laid bare the vulnerability of the US shale industry at a critical time. The ability of the United States to project itself as the world’s largest producer and exporter takes on added significance against the backdrop of a decline in US credibility reinforced by America’s inability to get a grip on the coronavirus crisis. The irony is that US anger could have, just as well been, directed at the UAE, which was quick to declare its support of the Saudi move to drive prices below US shale’s breakeven point by flooding the market. There’s “ample production capacity that will be quickly brought online given the current circumstances,” UAE Energy Minister Suhail Al Mazrouei said on March 11. By putting Saudi Arabia, and by implication, the UAE on notice, the Congressmen were drawing battle lines for a renewed clash in the future that may have become even more inevitable as a result of the pandemic and its economic fallout. With a likely reduction of the value of oil reserves and limited new gas stockpiles in the coming decades because of the rise of shale and renewables, Saudi Arabia needs to secure market share by capitalising on its low costs. Indeed, the kingdom has one of the world’s lowest costs of production of a barrel of oil. The collapse in demand, low prices, and the global economic turndown increase the importance of market share. Saudi Arabia is likely to have to downsize its attention-grabbing big tickets like Neom – the futuristic city on the Red Sea, and focus on revenue and job-creating sectors. “There’s a high likelihood (Neom) fades into nothingness. . . . The momentum will likely die out. And it will take a lot to rebuild that momentum,” said a Gulf-based economist. In a sign of the times, JPMorgan was reportedly seeking to sell at a discount loans raised by the sovereign wealth funds of Saudi Arabia and the UAE as banks brace for a borrowing spree in the Gulf due to low oil prices. Saudi Arabia may seek to create jobs and markets for its petrochemicals by developing plastics processing and chemicals. Some economists suggest that Saudi Arabia and other oil producers may seek to create jobs and domestic and regional markets for their petrochemicals by pushing the development of plastics processing and chemicals. Saudi Arabia hinted at a return to a focus on energy derivatives with the acquisition by its sovereign wealth fund of stakes worth roughly $1 billion in four major European oil companies—Equinor, Royal Dutch Shell, Total, and Eni. “Managing heightened public expectations of the leadership will be crucial in maintaining public support for MbS when the pandemic subsides. The crisis is also a test for the progress made on Saudi Vision 2030, especially its programs to transform public services, reduce unemployment, and diversify the economy away from oil,” said Saudi Arabia scholar Yasmine Farouk. Farouk was referring to Saudi Crown Prince Mohammed bin Salman by his initials and his Vision 2030 plan to lessen the kingdom’s dependence on oil revenues by diversifying its economy. (Views expressed above are the personal views of the author and do not reflect the views of ZMCL) (First published on The Inside Arabia)

US-Saudi oil clash sets the stage for future epic battle

The oil producting countries have finally agreed upon a production cut. As per the historic deal signed today, 10 per cent of the global oil supply would be cut. After a lot of hiccups, Organization of Petroleum Exporting countries (OPEC), and its allies led by Russia reached this deal.&nbsp;

However, the deal got a tepid reaction. The two leading benchmarks of oil sellers and buyers, Brent Crude and West Texas Intermediate remained unmoved in trade today.&nbsp;

Watch |&nbsp;

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-opec-allies-ink-historic-oil-deal-292334/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

What is the historic deal?

As per the deal, the production cut of oil supply will be nine million barrels per day for May and June. The cut is four times more of what was undertaken post 2008 financial crisis.&nbsp;

However, this might not be enough as experts predict a drop in demand of over 30 million barrels a day just in the month of April.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/opinions-blogs/covid-19-a-crisis-manufactured-292248">COVID-19: A crisis manufactured?</a>

Why the demand of oil dropped?

During the beginning of 2020, oil prices were in between 65 to 70 dollars per barrel. When coronavirus hit China, the factories began to shut, which led to a slide in oil prices. China is the biggest consumer of oil in the world.&nbsp;

On March 13, the oil market began to witness its worst slide in over a decade when the&nbsp;World Health Organization (WHO) declared Europe as the new epicentre of the epidemic. Now, the oil market has collapsed with prices dropping to 25 dollars per barrel.&nbsp;

The hindrances in the deal

The deal came after a lot of tensions between Russia and Saudi Arabia. Initially, Russia's Vladimir Putin rejected the deal and started a price war with Saudi Arabia. The US intervened as America was also suffering from losses from Shale oil reserves. US President Donald Trump urged Putin and Saudi Crown Pricne Mohammed bin Salman to work together to strike a deal.&nbsp; 
&nbsp;

The oil producting countries have finally agreed upon a production cut. As per the historic deal signed today, 10 per cent of the global oil supply would be cut.

The oil producting countries have finally agreed upon a production cut. As per the historic deal signed today, 10 per cent of the global oil supply would be cut. After a lot of hiccups, Organization of Petroleum Exporting countries (OPEC), and its allies led by Russia reached this deal. However, the deal got a tepid reaction. The two leading benchmarks of oil sellers and buyers, Brent Crude and West Texas Intermediate remained unmoved in trade today. Watch | What is the historic deal? As per the deal, the production cut of oil supply will be nine million barrels per day for May and June. The cut is four times more of what was undertaken post 2008 financial crisis. However, this might not be enough as experts predict a drop in demand of over 30 million barrels a day just in the month of April. Also read | COVID-19: A crisis manufactured? Why the demand of oil dropped? During the beginning of 2020, oil prices were in between 65 to 70 dollars per barrel. When coronavirus hit China, the factories began to shut, which led to a slide in oil prices. China is the biggest consumer of oil in the world. On March 13, the oil market began to witness its worst slide in over a decade when the World Health Organization (WHO) declared Europe as the new epicentre of the epidemic. Now, the oil market has collapsed with prices dropping to 25 dollars per barrel. The hindrances in the deal The deal came after a lot of tensions between Russia and Saudi Arabia. Initially, Russia's Vladimir Putin rejected the deal and started a price war with Saudi Arabia. The US intervened as America was also suffering from losses from Shale oil reserves. US President Donald Trump urged Putin and Saudi Crown Pricne Mohammed bin Salman to work together to strike a deal.

EXPLAINED: What is the historic oil deal all about?

Oil extended losses on Monday as an emergency rate cut by the US Federal Reserve failed to soothe global financial markets panicked by the rapid spread of the coronavirus while a price war rages on between top producers.

Brent crude fell $1.13 to $32.72 a barrel by 0230 GMT, tumbling after last week's plunge of 25%, the largest weekly fall since 2008. The front-month price opened at a high of $35.84 but slipped to a low of $31.63.

US crude was at $31.01, down 72 cents after slipping below $30 earlier in the session, despite US President Donald Trump's pledge to fill strategic oil reserves in the world's largest oil consumer "to the top".

Also Read: <a href="https://www.wionews.com/business-economy/oil-prices-jump-to-61-over-opec-supply-cut-reports-265782">Oil prices jump to $61 over OPEC+ supply cut reports</a>

The US Fed slashed interest rates on Sunday in its second emergency cut this month and said it would expand its balance sheet by at least $700 billion in coming weeks in a bid to ease tension in financial markets.

Oil prices have come under intense pressure on both demand and supply sides. Worries about the pandemic slashing oil buying persist, while oversupply fears have grown after top exporter Saudi Arabia ramped up output and slashed prices to increase sales to consumers in Asia and Europe.

Earlier this month, the Organization of the Petroleum Countries and Russia failed to extend a production cut agreement which has been supporting prices since 2016.

"Fear remains the crux of the problem here as market players remain unconvinced that monetary policy easing and liquidity injections will solve an essential healthcare crisis," OCBC Bank's economist Selena Ling said.

Also Read: <a href="https://www.wionews.com/business-economy/oil-prices-rise-10-after-russia-indicates-open-to-cooperation-with-opec-285465">Oil prices rise 10% after Russia indicates 'open to cooperation with OPEC'</a>

"The end-game to me remains not about more policy bazookas, but a peak in global COVID-19 infections and fatalities, and, or a COVID-19 vaccine cure in the horizon."

Despite the massive drop in both oil and natural gas prices last week, the US oil drilling rig count rose for a second week in a row to its highest since December, energy services firm Baker Hughes Co said in its closely followed report on Friday.

Still, the number of rigs is expected to fall as producers deepen spending cuts on new drilling.

More pain will be felt by US producers as Brent's premium to WTI is close to its narrowest since 2016, making US crude oil uncompetitive in international markets. Exports are set to fall by 1 million barrels per day each in April and May, sources have said.

"The big loser will be US shale, where the Republican government will possibly face a bailout decision on a heavily indebted industry sooner rather than later," said Jeffrey Halley, a senior market analyst at Oanda in Singapore.

&nbsp;

Oil extended losses on Monday as an emergency rate cut by the US Federal Reserve failed to soothe global financial markets panicked by the rapid spread of the coronavirus while a price war rages on between top producers.

Oil extended losses on Monday as an emergency rate cut by the US Federal Reserve failed to soothe global financial markets panicked by the rapid spread of the coronavirus while a price war rages on between top producers. Brent crude fell $1.13 to $32.72 a barrel by 0230 GMT, tumbling after last week's plunge of 25%, the largest weekly fall since 2008. The front-month price opened at a high of $35.84 but slipped to a low of $31.63. US crude was at $31.01, down 72 cents after slipping below $30 earlier in the session, despite US President Donald Trump's pledge to fill strategic oil reserves in the world's largest oil consumer "to the top". Also Read: Oil prices jump to $61 over OPEC+ supply cut reports The US Fed slashed interest rates on Sunday in its second emergency cut this month and said it would expand its balance sheet by at least $700 billion in coming weeks in a bid to ease tension in financial markets. Oil prices have come under intense pressure on both demand and supply sides. Worries about the pandemic slashing oil buying persist, while oversupply fears have grown after top exporter Saudi Arabia ramped up output and slashed prices to increase sales to consumers in Asia and Europe. Earlier this month, the Organization of the Petroleum Countries and Russia failed to extend a production cut agreement which has been supporting prices since 2016. "Fear remains the crux of the problem here as market players remain unconvinced that monetary policy easing and liquidity injections will solve an essential healthcare crisis," OCBC Bank's economist Selena Ling said. Also Read: Oil prices rise 10% after Russia indicates 'open to cooperation with OPEC' "The end-game to me remains not about more policy bazookas, but a peak in global COVID-19 infections and fatalities, and, or a COVID-19 vaccine cure in the horizon." Despite the massive drop in both oil and natural gas prices last week, the US oil drilling rig count rose for a second week in a row to its highest since December, energy services firm Baker Hughes Co said in its closely followed report on Friday. Still, the number of rigs is expected to fall as producers deepen spending cuts on new drilling. More pain will be felt by US producers as Brent's premium to WTI is close to its narrowest since 2016, making US crude oil uncompetitive in international markets. Exports are set to fall by 1 million barrels per day each in April and May, sources have said. "The big loser will be US shale, where the Republican government will possibly face a bailout decision on a heavily indebted industry sooner rather than later," said Jeffrey Halley, a senior market analyst at Oanda in Singapore.

Oil prices slide again on coronavirus fears, price war

Saudi Arabia and Russia are locked in an oil war. As a result, International oil prices have dropped by more than 20 per cent. WION's Executive Editor Palki Sharma Upadhyay tells you why falling oil prices are troubling the investors.

Gravitas: Why cheap oil is bad news

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

Tanker rates to ship oil in very large crude carriers (VLCCs) are surging as oil traders hunt for ships to store cheap oil in as they take advantage of a 25% plunge in prices on Monday amid a price war between top oil producers Saudi Arabia and Russia.

Shipping rates from the Middle East to Asia, for instance, have risen by more than 25% since last Friday, while several traders are making enquiries to lease tankers to temporarily store oil offshore, traders and shipping sources told Reuters on Tuesday.

The cost of renting a VLCC, which can carry 2 million barrels of crude and can be used for floating storage, was assessed Tuesday at around $38,700 per day, compared with around $30,700 per day on Friday and $14,800 a month ago, shipbroker sources said.

Also Read: <a href="https://www.wionews.com/business-economy/oil-prices-surge-after-us-strike-kills-iranian-general-271775">Oil prices surge after US strike kills Iranian general Soleimani</a> 
&nbsp;

"Tanker offers are quite high today," said a Singapore-based crude oil trader. "Now the contango market structure supports (oil storage), but shipowners are raising prices."

Oil tanker charter rates jump as traders hunt for ships to store cheap oil.

The rise in tanker chartering rates is a boon for shipowners who have seen demand walloped recently by the fast-spreading coronavirus outbreak which choked commodity and semi-finished goods imports into top consumer China.

Also Read: <a href="https://www.wionews.com/world/oil-prices-surge-after-trump-tears-up-iran-deal-135734">Oil prices surge after Trump tears up Iran deal</a>

We are seeing several deals being negotiated for short-term (6-12 months) charters, with one already concluded. The fall in oil prices has made floating storage more attractive, although the margins are still relatively thin," energy shipbroker and consultancy Poten &amp; Partners said in a research note.

A Pareto Securities shipping note to clients said: "while actual fixing activity was rather limited yesterday, the 'floating storage' interest has boosted shipowners' sentiment and rate ideas have thus been increased substantially."

Another shipbroker in Singapore said his firm had not secured any fixtures yet "but there a is huge expectation of firming of the spot market. It's the older tonnage that will be more likely to be engaged for floating storage."

Crude oil's forward curve change from backwardation to contango.

Crude oil prices suffered their biggest daily rout since the 1991 Gulf War on Monday as top producers Saudi Arabia and Russia began a price war that threatens to overwhelm global oil markets with supply.

Major milestones for big moves in light crude oil prices.

Also Read: <a href="https://www.wionews.com/videos/venezulea-crisis-crude-oil-prices-surge-195411">Venezulea Crisis: Crude oil prices surge</a>

Several refiners are already looking to maximise imports of Middle Eastern purchase to take advantage of cheap crude after the Saudis slashed their official selling prices (OSPs) for April in an attempt to lure buyers.

"The VLCC rates are climbing up but it's mainly sentiment-driven right now, it's main traders who are enquiring for storage," a Singapore-based ship broker told Reuters.

The Worldscale index rate for shipping crude on a VLCC from the Middle East to North Asia rose to 54 points on Tuesday, from 49 points on Monday, according to trade and shipping sources.

Time charter equivalent rates for a 2,70,000 deadweight tonnes tanker on the Middle East to China route increased by 27 per cent in one day on Monday, said Ralph Leszczynski, head of research at shipbroker Banchero Costa in Singapore.

The flip in the crude oil market's forward curve to a contango where deferred prices are above spot prices has been a key factor spurring demand for storage.

Also Read: <a href="https://www.wionews.com/business-%26-economy/oil-prices-fall-on-dip-in-china-demand-surging-us-output-143077">Oil prices fall on dip in China demand, surging US output</a>

The recent steep fall in spot Brent oil prices has made storing oil for later sale economical.

In the Middle East benchmark Dubai crude oil market, the April, May Dubai inter-month spread widened to 77 cents a barrel as of noon on Tuesday, making oil storage profitable. Brent crude prices are in a similar structure.

In addition to floating storage, countries like China and India could move to exploit the weak prices and increase imports for strategic reserves, boosting tanker demand, said Ralph Leszczynski, head of research at shipbroker Banchero Costa in Singapore.

"China, in particular, was the first to suffer from the coronavirus outbreak, but now also seems to be the first to put it behind them. The situation seems increasingly under control," he said.

&nbsp;

Tanker rates to ship oil in very large crude carriers (VLCCs) are surging as oil traders hunt for ships to store cheap oil in as they take advantage of a 25% plunge in prices on Monday amid a price war between top oil producers Saudi Arabia and Russia.

Tanker rates to ship oil in very large crude carriers (VLCCs) are surging as oil traders hunt for ships to store cheap oil in as they take advantage of a 25% plunge in prices on Monday amid a price war between top oil producers Saudi Arabia and Russia. Shipping rates from the Middle East to Asia, for instance, have risen by more than 25% since last Friday, while several traders are making enquiries to lease tankers to temporarily store oil offshore, traders and shipping sources told Reuters on Tuesday. The cost of renting a VLCC, which can carry 2 million barrels of crude and can be used for floating storage, was assessed Tuesday at around $38,700 per day, compared with around $30,700 per day on Friday and $14,800 a month ago, shipbroker sources said. Also Read: Oil prices surge after US strike kills Iranian general Soleimani "Tanker offers are quite high today," said a Singapore-based crude oil trader. "Now the contango market structure supports (oil storage), but shipowners are raising prices." Oil tanker charter rates jump as traders hunt for ships to store cheap oil. The rise in tanker chartering rates is a boon for shipowners who have seen demand walloped recently by the fast-spreading coronavirus outbreak which choked commodity and semi-finished goods imports into top consumer China. Also Read: Oil prices surge after Trump tears up Iran deal We are seeing several deals being negotiated for short-term (6-12 months) charters, with one already concluded. The fall in oil prices has made floating storage more attractive, although the margins are still relatively thin," energy shipbroker and consultancy Poten & Partners said in a research note. A Pareto Securities shipping note to clients said: "while actual fixing activity was rather limited yesterday, the 'floating storage' interest has boosted shipowners' sentiment and rate ideas have thus been increased substantially." Another shipbroker in Singapore said his firm had not secured any fixtures yet "but there a is huge expectation of firming of the spot market. It's the older tonnage that will be more likely to be engaged for floating storage." Crude oil's forward curve change from backwardation to contango. Crude oil prices suffered their biggest daily rout since the 1991 Gulf War on Monday as top producers Saudi Arabia and Russia began a price war that threatens to overwhelm global oil markets with supply. Major milestones for big moves in light crude oil prices. Also Read: Venezulea Crisis: Crude oil prices surge Several refiners are already looking to maximise imports of Middle Eastern purchase to take advantage of cheap crude after the Saudis slashed their official selling prices (OSPs) for April in an attempt to lure buyers. "The VLCC rates are climbing up but it's mainly sentiment-driven right now, it's main traders who are enquiring for storage," a Singapore-based ship broker told Reuters. The Worldscale index rate for shipping crude on a VLCC from the Middle East to North Asia rose to 54 points on Tuesday, from 49 points on Monday, according to trade and shipping sources. Time charter equivalent rates for a 2,70,000 deadweight tonnes tanker on the Middle East to China route increased by 27 per cent in one day on Monday, said Ralph Leszczynski, head of research at shipbroker Banchero Costa in Singapore. The flip in the crude oil market's forward curve to a contango where deferred prices are above spot prices has been a key factor spurring demand for storage. Also Read: Oil prices fall on dip in China demand, surging US output The recent steep fall in spot Brent oil prices has made storing oil for later sale economical. In the Middle East benchmark Dubai crude oil market, the April, May Dubai inter-month spread widened to 77 cents a barrel as of noon on Tuesday, making oil storage profitable. Brent crude prices are in a similar structure. In addition to floating storage, countries like China and India could move to exploit the weak prices and increase imports for strategic reserves, boosting tanker demand, said Ralph Leszczynski, head of research at shipbroker Banchero Costa in Singapore. "China, in particular, was the first to suffer from the coronavirus outbreak, but now also seems to be the first to put it behind them. The situation seems increasingly under control," he said.

Tanker rates surge as traders hunt for ships to store cheap oil

Stock markets around the world recorded major losses. Meanwhile, leading producers of oil have kicked off a price war. This report tells you all you need to know about the turmoil in the global markets.

Gravitas: Decoding the slump in global markets

Russian oil giant Rosneft on Wednesday announced a deal to supply up to two million tonnes of oil to India this year, adding that Delhi planned to invest in its Arctic projects.

Rosneft has signed a contract with Indian Oil Corporation to supply the oil via Russia's southern port Novorossiysk, it said in a statement.

The Russian state-owned oil company's chief Igor Sechin was in India Wednesday for talks with Oil Minister Dharmendra Pradhan to discuss increasing Russian oil supplies to India, it said.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/oil-rises-more-than-1-ahead-of-opec-meeting-to-discuss-supply-cuts-284412">Oil rises more than 1% ahead of OPEC meeting to discuss supply cuts</a>

They also discussed Russia's offshore and liquified natural gas (LNG) projects, including Vostok Oil in Arctic Siberia, in which the Indian firm had already agreed to participate, Rosneft said.

India and Russia will negotiate terms of India's involvement in Vostok Oil "in the shortest time possible," it added.

Rosneft's Vostok Oil operation in the north of the Krasnoyarsk region is a projected "oil cluster of global importance," according to the company. It received a license to develop the West Irkinsky oil and gas site last year.

Watch:&nbsp;

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Rosneft sees Vostok Oil as a way to increase cargo traffic on the Northern Sea route to 80 million tonnes by 2024 as ordered by President Vladimir Putin.

Since 2017, Rosneft owns 49 per cent of the Indian group Nayara, which operates the country's second-largest refinery in Vadinar.

Russian oil giant Rosneft on Wednesday announced a deal to supply up to two million tonnes of oil to India this year, adding that Delhi planned to invest in its Arctic projects.

Russian oil giant Rosneft on Wednesday announced a deal to supply up to two million tonnes of oil to India this year, adding that Delhi planned to invest in its Arctic projects. Rosneft has signed a contract with Indian Oil Corporation to supply the oil via Russia's southern port Novorossiysk, it said in a statement. The Russian state-owned oil company's chief Igor Sechin was in India Wednesday for talks with Oil Minister Dharmendra Pradhan to discuss increasing Russian oil supplies to India, it said. Also read: Oil rises more than 1% ahead of OPEC meeting to discuss supply cuts They also discussed Russia's offshore and liquified natural gas (LNG) projects, including Vostok Oil in Arctic Siberia, in which the Indian firm had already agreed to participate, Rosneft said. India and Russia will negotiate terms of India's involvement in Vostok Oil "in the shortest time possible," it added. Rosneft's Vostok Oil operation in the north of the Krasnoyarsk region is a projected "oil cluster of global importance," according to the company. It received a license to develop the West Irkinsky oil and gas site last year. Watch: × Rosneft sees Vostok Oil as a way to increase cargo traffic on the Northern Sea route to 80 million tonnes by 2024 as ordered by President Vladimir Putin. Since 2017, Rosneft owns 49 per cent of the Indian group Nayara, which operates the country's second-largest refinery in Vadinar.

Russia boosts oil supply to India

Oil prices rose on Wednesday, with Brent gaining for a seventh straight day after a slowing of new coronavirus cases in China eased demand worries and supply was curtailed by a US move to cut more Venezuelan crude from the market.

Oil prices rose on Wednesday, with Brent gaining for a seventh straight day after a slowing of new coronavirus cases in China eased demand worries and supply was curtailed by a US move to cut more Venezuelan crude from the market. Brent crude was up by 75 cents at $58.50 a barrel by 1003 GMT, while US oil was up 66 cents at $52.71 a barrel. China, the world's second-largest economy, has imposed city lockdowns and travel restrictions to contain a virus that has now killed more than 2,000 people, stoking concern over an economic slowdown and a hit to oil demand. Also Read: Oil prices fall on oversupply worries as virus hits China demand "Those in doubt of the economic impact from the virus should take heed from Apple's surprise sales warning ... Put simply, this is the surest sign yet of the coronavirus fallout on the global economy," said PVM analysts in a note. S&P Global Ratings said it expected coronavirus would deliver a "short-term blow" to economic growth in China in the first quarter, echoing findings by the International Energy Agency. Official data showed new cases in China fell for a second straight day, although the World Health Organisation has cautioned there is not enough data to know if the epidemic is being contained. Brent has risen nearly 10 per cent since falling last week to its lowest this year. The market structure is also showing signs of prompt demand for oil picking up, as the front-month Brent futures market is moving deeper back into backwardation when near-term prices are higher than later-dated prices. Also Read: China virus could hit oil prices by $3 per barrel: Goldman This week, oil prices were also buoyed by a US decision to blacklist a trading subsidiary of Russia's Rosneft which President Donald Trump's administration said provided a financial lifeline to Venezuela's government. The grouping, known as OPEC+, has been withholding supply to support prices and meets next month to decide a response to the downturn in demand resulting from the coronavirus epidemic. But in the United States, which is not party to any supply cut agreements, crude oil production has been rising as shale output grows. US shale production is expected to rise to a record 9.2 million barrels a day next month, according to the Energy Information Administration.

Oil up on slowing pace of coronavirus, Venezuela sanctions

Oil prices jumped about 2 per cent on Wednesday on media reports that suggested scientists were developing a vaccine for the fast-spreading coronavirus, even as world health experts said treatments have not yet been found.

Oil prices jumped about 2 per cent on Wednesday on media reports that suggested scientists were developing a vaccine for the fast-spreading coronavirus, even as world health experts said treatments have not yet been found. Also supporting oil was news that the Organization of the Petroleum Exporting Countries (OPEC) and its producer allies were considering further output cuts to counter a potential squeeze on global oil demand. The outbreak has killed nearly 500 people and is weighing on global economic activity and oil demand. The World Health Organization played down the media reports, saying there was "no known effective therapeutics" against the virus. Brent crude oil futures ended the session up $1.32, or 2.5 per cent, at $56.46 a barrel while US West Texas Intermediate (WTI) crude gained $1.14, or 2.3 per cent, to settle at $50.75. Both contracts rose more than 4 per cent during the session. Prices held gains after data showed US crude inventories rose by 3.4 million barrels in the week to January 31, compared with expectations in a poll for a rise of 2.8 million barrels. "The report probably had nothing shocking enough to ruin the momentum of the big crude comeback that we are seeing today," said Phil Flynn, an analyst at Price Futures Group in Chicago. Also Read: Oil falls 1% as demand fears outweigh hopes for bigger OPEC+ cuts "The main reason oil sold off as hard as it did wasn't because of what we knew; it was what we didn't know. Now, it seems like we can quantify the demand destruction and look ahead." China's Changjiang Daily newspaper reported on Tuesday that a team of researchers led by Zhejiang University Professor Li Lanjuan had found that drugs Abidol and Darunavir can inhibit the virus in vitro cell experiments. Separately, Sky News reported that a British scientist has made a significant breakthrough in the race for a vaccine by reducing part of the normal development time from two to three years to only 14 days. [ Oil Pump (Courtesy: Reuters) ] Still, refineries including China's Sinopec, Asia's top refiner, have slashed throughput as the virus cuts demand for refined fuels. Fears of a slump in global oil demand had pushed US crude and Brent futures into contango this week - a structure in which longer-dated oil futures trade at a premium that encourages traders to keep crude in storage for more profitable resale in the future. "Based on our forecast that China's GDP growth will slow to just 3 per cent year-over-year in Q1 2020 and assuming that the virus is brought under control relatively quickly, we have tentatively pencilled in a 10 per cent drop in the country's oil consumption in Q1," Capital Economics analysts said in a note on Wednesday. Falling demand for jet fuel worldwide because of the deadly coronavirus has also hit US prices for the product, which dropped to their lowest seasonally in five years, market participants said. Companies including Royal Dutch Shell and Phillips have limited business travel to China. Demand Impacted A slowdown in the global economy resulting from the outbreak is expected to reduce 2020 worldwide oil demand growth by 300,000-500,000 barrels per day (BPD), roughly 0.5 per cent of total demand, BP's Chief Financial Officer Brian Gilvary said. "The (Chinese) economy will be weakened for some time to come as quarantines, social distancing and travel restrictions remain in place," BNP Paribas analyst Harry Tchilinguirian stated. "But as financial markets are anticipatory, one can see how favourable news with potential medical solutions, or indications that we have reached a turning point in the progress of the virus outbreak, are likely to be interpreted positively." OPEC and allies led by Russia, a group known as OPEC+, considered the impact on global oil demand and economic growth from the coronavirus at a meeting on Wednesday. According to reports, Russia was not supporting a deeper oil output cut and was suggesting an extension of the current pact.

Oil prices jump 2 per cent as virus vaccine reports spur hope

Oil futures were set for a sixth day of losses as the death toll from a virus in China rose, but the heavy sell-off of recent sessions was curbed by output outages in Libya and OPEC comments designed to calm demand fears.

Oil futures were set for a sixth day of losses as the death toll from a virus in China rose, but the heavy sell-off of recent sessions was curbed by output outages in Libya and OPEC comments designed to calm demand fears. Brent crude was down 51 cents at $58.81 a barrel at 0925 GMT, having hit a three-month low of $58.50 on Monday as the virus outbreak triggered a global sell-off of riskier assets. US West Texas Intermediate was down 32 cents at $52.82 a barrel, after slipping to its lowest since early October in the previous session at $52.13. Both contracts are on track for their worst monthly falls since May. The United States and other countries warned against travel to China as the coronavirus death toll rose to more than 100 and after the virus was detected in more than a dozen countries outside China. Oil investors are concerned that travel advisories, other restrictions and any sizable impact on growth in China and elsewhere will dampen demand for crude and related products against a backdrop of plentiful supply. Also Read: Oil prices slip over China virus fears Japan, one of the world's top oil buyers, warned about the risks to its economy from the virus, and Asian stock markets continued to suffer. As the oil price fell below that seen during a December meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia, Saudi Arabia said on Monday the group could respond to any changes in demand. Saudi and other OPEC producers, however, sought to downplay demand concerns resulting from the virus outbreak. The group known as OPEC+ agreed in December to widen their supply cuts by 500,000 barrels per day (BPD) to 1.7 million BPD until the end of March. While markets wait for an update on China's oil demand, one eye is on Libya where output is down by nearly 75 per cent to just below 300,000 BPD amid the most extensive oil blockade for years. "Markets need to get a proper assessment of oil demand in China," said Olivier Jakob of consultancy Petromatrix. "And as long as Libya continues to be shut, OPEC probably does not need to do anything."

Oil rout extends to sixth day as China virus death toll rises

Barclays said on Tuesday oil prices will be impacted by $2 per barrel on the potential economic fallout from the coronavirus outbreak in China. More than 100 people have died and over 4,000 cases of the new virus have been confirmed in China, leading authorities to increase preventive measures, impose travel restrictions and also extend the Lunar New Year holidays to limit the spread of the virus.

Barclays said on Tuesday oil prices will be impacted by $2 per barrel on the potential economic fallout from the coronavirus outbreak in China. More than 100 people have died and over 4,000 cases of the new virus have been confirmed in China, leading authorities to increase preventive measures, impose travel restrictions and also extend the Lunar New Year holidays to limit the spread of the virus. The bank sees a $2 per barrel downside to their full-year Brent and WTI forecasts of $62 per barrel and $57 per barrel, respectively. Compounding the effects of the spillover to economic growth from China and the region, Barclays expects transitory oil demand erosion of about 0.6-0.8 million barrels per day (mb/d) in the first quarter of this year or 0.2 mb/d for the full year. "If air passenger traffic in China declined by half in the first quarter of 2020, it would likely lead to a 300,000 barrels per day year on year decline in jet-kerosene demand from China," the bank said adding the fall in road transport would likely be less severe than in the past given reduced reliance on buses. Also Read: Oil prices slide 2% over glut forecast, China virus worries Barclays expects the Organisation of the Petroleum Exporting Countries (OPEC) and other allies to step in and take further measures to keep the markets tight, in case the fall in demand is more acute. Oil prices have been down for the last six sessions, but the bank said that the market reaction was likely overdone. Barclays said the actual economic fallout from the coronavirus could be less severe than the 2003 SARS outbreak, given that the new virus seems less lethal than SARS so far and the measures taken by Chinese authorities. The bank said the geopolitical risks to global supplies remain high as US-Iran tensions could continue to gradually escalate and oil production in Libya could fall further if the blockade of key infrastructure facilities continues. Brent crude prices are currently trading around $59 per barrel and US WTI at around at $53 per barrel.

Barclays sees $2 per barrel impact to oil prices as virus fears threaten demand

<a href="https://www.wionews.com/business-economy/oil-prices-slip-over-us-china-trade-deal-concern-274466">Oil prices</a> fell more than 2 per cent&nbsp;on Wednesday as a market surplus forecast by the International Energy Agency (IEA) and demand worries amid the outbreak of a virus in China outweighed concern over disruptions to Libya's crude output.

Brent <a href="https://www.wionews.com/business-economy/no-dearth-of-crude-oil-in-global-market-says-union-minister-dharmendra-pradhan-273737">crude </a>ended the session down $1.38, or 2.1 per cent, at $63.21 while West Texas Intermediate fell $1.64, or 2.8%, to settle at $56.74.

Prices extended losses in post-settlement trade, with WTI dropping by more than $2 after data from the American Petroleum Institute showed US&nbsp;crude inventories rose 1.6 million barrels last week, compared with analysts' expectations for 1 million-barrel draw.

US&nbsp;<a href="https://www.wionews.com/business-economy/global-markets-shares-swept-new-year-gains-gold-oil-prices-jumps-and-iran-trade-threats-272528">gasoline stocks</a> built for an 11th week, rising 4.5 million barrels, much more than forecasts for a 3.1 million-barrel gain. 
Official US&nbsp;government data is due at 11 a.m. ET (1600 GMT) on Thursday, delayed a day in observance of Monday's Martin Luther King Jr. Day holiday. The head of the IEA, Fatih Birol, said he expects the market to be in surplus by 1 million barrels per day (bpd) in the first half of this year.

"Oil prices remain heavy on oversupply concerns and after the Saudi Energy Minister Price Abdulaziz did not offer any hints of optimism that the OPEC+ production cuts would be extended beyond March," said Edward Moya, senior market analyst at OANDA in New York. "China's coronavirus will likely see travel restrictions that could end up hurting demand for crude during a peak travel time in China."

Also Read:&nbsp;<a href="https://www.wionews.com/business-economy/china-virus-could-hit-oil-prices-by-3-per-barrel-goldman-275924">China virus could hit oil prices by $3 per barrel: Goldman</a>

<img alt="Oil prices - Representative Image" data-entity-type="file" data-entity-uuid="a6a05eb2-ce3a-4ed7-95d4-5d83fbd47c79" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20%2814%29_11.jpg" /> 
[&nbsp;Oil prices - Representative Image (Courtesy: Reuters) ]

Markets are also focusing on the emergence from China of a new coronavirus just ahead of the Lunar New Year holidays this weekend and the possible impact a pandemic might have on global economic growth. Deaths from the new flu-like virus in China have risen to 17 with more than 540 cases confirmed, with cases now detected as far away as the United States.

Should the virus develop dramatically and hit travel and growth, demand for oil could fall by 260,000 bpd, Goldman Sachs said in a note. 
"Demand concerns over a potential epidemic will counter concerns around supply disruptions in Libya, Iran, and Iraq, driving spot price volatility in the coming weeks," Goldman said, though the "impact on oil fundamentals remains limited so far".

Oil prices have been marginally supported after Libya's National Oil Corp on Monday declared force majeure on the loading of oil from two major oilfields after the latest development in a long-running military conflict.

Unless oil facilities return to operation quickly, OPEC member Libya's crude output will be reduced to about 72,000 bpd from about 1.2 million bpd.

"The Libyan pipeline blockade continued to have a muted impact on sentiment ... There is a consensus that the disruption will prove short-lived," said Stephen Brennock of oil broker PVM.

Meanwhile, Kazakhstan has suspended its oil exports to China after contamination was found in crude supplied by a Kazakh producer less than a year after a 'dirty oil' crisis broke in neighbouring Russia.

Overall though, global supplies are likely to continue to rise, with US&nbsp;crude production in large shale deposits expected to rise to record highs in February, though the pace of increase is likely to be the lowest in about year, the US&nbsp;Energy Information Administration (EIA) said on Tuesday.

Oil prices fell more than 2 per cent on Wednesday as a market surplus forecast by the International Energy Agency (IEA) and demand worries amid the outbreak of a virus in China outweighed concern over disruptions to Libya's crude output.

Oil prices fell more than 2 per cent on Wednesday as a market surplus forecast by the International Energy Agency (IEA) and demand worries amid the outbreak of a virus in China outweighed concern over disruptions to Libya's crude output. Brent crude ended the session down $1.38, or 2.1 per cent, at $63.21 while West Texas Intermediate fell $1.64, or 2.8%, to settle at $56.74. Prices extended losses in post-settlement trade, with WTI dropping by more than $2 after data from the American Petroleum Institute showed US crude inventories rose 1.6 million barrels last week, compared with analysts' expectations for 1 million-barrel draw. US gasoline stocks built for an 11th week, rising 4.5 million barrels, much more than forecasts for a 3.1 million-barrel gain. Official US government data is due at 11 a.m. ET (1600 GMT) on Thursday, delayed a day in observance of Monday's Martin Luther King Jr. Day holiday. The head of the IEA, Fatih Birol, said he expects the market to be in surplus by 1 million barrels per day (bpd) in the first half of this year. "Oil prices remain heavy on oversupply concerns and after the Saudi Energy Minister Price Abdulaziz did not offer any hints of optimism that the OPEC+ production cuts would be extended beyond March," said Edward Moya, senior market analyst at OANDA in New York. "China's coronavirus will likely see travel restrictions that could end up hurting demand for crude during a peak travel time in China." Also Read: China virus could hit oil prices by $3 per barrel: Goldman [ Oil prices - Representative Image (Courtesy: Reuters) ] Markets are also focusing on the emergence from China of a new coronavirus just ahead of the Lunar New Year holidays this weekend and the possible impact a pandemic might have on global economic growth. Deaths from the new flu-like virus in China have risen to 17 with more than 540 cases confirmed, with cases now detected as far away as the United States. Should the virus develop dramatically and hit travel and growth, demand for oil could fall by 260,000 bpd, Goldman Sachs said in a note. "Demand concerns over a potential epidemic will counter concerns around supply disruptions in Libya, Iran, and Iraq, driving spot price volatility in the coming weeks," Goldman said, though the "impact on oil fundamentals remains limited so far". Oil prices have been marginally supported after Libya's National Oil Corp on Monday declared force majeure on the loading of oil from two major oilfields after the latest development in a long-running military conflict. Unless oil facilities return to operation quickly, OPEC member Libya's crude output will be reduced to about 72,000 bpd from about 1.2 million bpd. "The Libyan pipeline blockade continued to have a muted impact on sentiment ... There is a consensus that the disruption will prove short-lived," said Stephen Brennock of oil broker PVM. Meanwhile, Kazakhstan has suspended its oil exports to China after contamination was found in crude supplied by a Kazakh producer less than a year after a 'dirty oil' crisis broke in neighbouring Russia. Overall though, global supplies are likely to continue to rise, with US crude production in large shale deposits expected to rise to record highs in February, though the pace of increase is likely to be the lowest in about year, the US Energy Information Administration (EIA) said on Tuesday.

Oil prices slide 2% over glut forecast, China virus worries

The <a href="https://www.wionews.com/world/us-mexico-canada-deal-most-important-trade-pact-ever-trump-168842">US Senate</a> approved a revamp of the US-Mexico-Canada Free Trade Agreement a day after the signing of the Phase 1 trade deal between the United States and China.

Brent settled up 62 cents, or 1%, to $64.62 a barrel, while US West Texas Intermediate (WTI) crude rose by 71 cents, or 1.2%, to $58.52 a barrel.

Oil rose about 1% on Thursday, as progress on another major trade deal fed optimism that energy demand will grow in 2020, which offset bearish market comments from the International Energy Agency.

The deal that the Senate approved was a revamp of the 26-year-old North American Free Trade Agreement. A day earlier, US and Chinese leaders signed the Phase 1 trade deal calling for the world's largest energy importer to buy $50 billion more of US oil, liquefied natural gas and other energy products over two years.

Also Read:&nbsp;<a href="https://www.wionews.com/world/usmca-united-states-mexico-and-canada-finalize-new-trade-agreement-267552">United States, Mexico, Canada sign deal finalizing USMCA trade pact</a>

However, analysts warned that China might struggle to meet the target and said oil prices could be volatile until more details emerge. 
Trade sources said sharply higher Chinese purchases of US energy products as part of the China-US trade deal will shake up global crude oil trade flows if American supplies squeeze rival crudes out of the top oil import market.

<img alt="New York Stock Exchange" data-entity-type="file" data-entity-uuid="61ac745d-d1d2-4838-8094-dbcdb6e7d35b" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20-%202020-01-20T183634.573_0.jpg" /> 
[ (Traders work on the floor at the&nbsp;New&nbsp;York Stock Exchange (Courtesy: Reuters) ]

"We had the US-China trade deal yesterday - signed and sealed. And now you got the <a href="https://www.wionews.com/business-economy/mexican-businesses-want-clarity-on-details-of-usmca-trade-deal-267698">US-Mexico</a> trade going through the senate. So I think the optimism surrounding the demand is rising exponentially right now," said Phil Flynn, an analyst at Price Futures Group in Chicago.

The oil benchmark prices were also supported by a report from the Federal Reserve Bank of Philadelphia showing strong manufacturing activity in the US Mid-Atlantic region and as Wall Street stock indexes scaled new records. The S&amp;P 500 touched a record high.

Price gains were capped earlier as the International Energy Agency (IEA) said it expected oil production to outpace demand for crude from the Organization of the Petroleum Exporting Countries (OPEC), even if members comply fully with a pact with Russia and other non-OPEC allies to curb output.

However, Flynn believes the agency may be underestimating the potential demand boost from the US-Mexico trade accord and the US-China trade deal.

UBS said in a note "provided Middle East tensions do not intensify and cause production disruptions, Brent should decline toward the bottom of a $60–65 per barrel trading range in 1H20 before recovering to the top of it in the second half of the year".

The US Senate approved a revamp of the US-Mexico-Canada Free Trade Agreement a day after the signing of the Phase 1 trade deal between the United States and China.

The US Senate approved a revamp of the US-Mexico-Canada Free Trade Agreement a day after the signing of the Phase 1 trade deal between the United States and China. Brent settled up 62 cents, or 1%, to $64.62 a barrel, while US West Texas Intermediate (WTI) crude rose by 71 cents, or 1.2%, to $58.52 a barrel. Oil rose about 1% on Thursday, as progress on another major trade deal fed optimism that energy demand will grow in 2020, which offset bearish market comments from the International Energy Agency. The deal that the Senate approved was a revamp of the 26-year-old North American Free Trade Agreement. A day earlier, US and Chinese leaders signed the Phase 1 trade deal calling for the world's largest energy importer to buy $50 billion more of US oil, liquefied natural gas and other energy products over two years. Also Read: United States, Mexico, Canada sign deal finalizing USMCA trade pact However, analysts warned that China might struggle to meet the target and said oil prices could be volatile until more details emerge. Trade sources said sharply higher Chinese purchases of US energy products as part of the China-US trade deal will shake up global crude oil trade flows if American supplies squeeze rival crudes out of the top oil import market. [ (Traders work on the floor at the New York Stock Exchange (Courtesy: Reuters) ] "We had the US-China trade deal yesterday - signed and sealed. And now you got the US-Mexico trade going through the senate. So I think the optimism surrounding the demand is rising exponentially right now," said Phil Flynn, an analyst at Price Futures Group in Chicago. The oil benchmark prices were also supported by a report from the Federal Reserve Bank of Philadelphia showing strong manufacturing activity in the US Mid-Atlantic region and as Wall Street stock indexes scaled new records. The S&P 500 touched a record high. Price gains were capped earlier as the International Energy Agency (IEA) said it expected oil production to outpace demand for crude from the Organization of the Petroleum Exporting Countries (OPEC), even if members comply fully with a pact with Russia and other non-OPEC allies to curb output. However, Flynn believes the agency may be underestimating the potential demand boost from the US-Mexico trade accord and the US-China trade deal. UBS said in a note "provided Middle East tensions do not intensify and cause production disruptions, Brent should decline toward the bottom of a $60–65 per barrel trading range in 1H20 before recovering to the top of it in the second half of the year".

Oil ends higher as trade deals progress; spurs energy demand hopes

US&nbsp;President Donald Trump and Chinese Vice Premier Liu He signed a <a href="https://www.wionews.com/opinions-blogs/us-china-trade-deal-what-were-the-key-issues-and-are-they-resolved-275073">Phase 1&nbsp;deal</a>&nbsp;that will roll back some tariffs and see China boost purchases of US&nbsp;goods and services, defusing a prolonged conflict between the world's two largest economies.

Liu said in remarks at the White House that the <a href="https://www.wionews.com/business-economy/nifty-sensex-settle-near-record-highs-after-us-china-trade-deal-274867">United States and China</a> need to step up cooperation and that the&nbsp;deal&nbsp;benefits both countries and the world. The&nbsp;deal&nbsp;capped an 18-month dispute that had roiled&nbsp;markets.

The centrepiece of the&nbsp;deal&nbsp;is a pledge by China to purchase at least an additional $200 billion worth of US&nbsp; farm products and other goods and services over two years, over a baseline of $186 billion in purchases in 2017.

Key world equity indexes&nbsp;climbed to&nbsp;new&nbsp;records on Wednesday on hopes a US-China&nbsp;trade&nbsp;deal&nbsp;will <a href="https://www.wionews.com/opinions-blogs/us-china-trade-pact-fails-to-resolve-three-fundamental-issues-274848">reduce harmful tensions</a>, but&nbsp;oil&nbsp;prices slid on doubts the pact will spur world growth and boost crude&nbsp;demand.

<img alt="Stock Exchange" data-entity-type="file" data-entity-uuid="745cf3ce-50b4-48b1-8998-5f886a9a8990" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20-%202020-01-20T183634.573.jpg" /> 
[&nbsp;Traders work on the floor at the&nbsp;New&nbsp;York Stock Exchange (Courtesy: Reuters) ]

MSCI's all-world stock index and the three major indexes on Wall Street set record intraday highs. The MSCI benchmark, along with the Dow and S&amp;P 500, also posted record closing highs, while the Dow closed above the 29,000 mark for the first time.

Also Read:&nbsp;<a href="https://www.wionews.com/business-economy/china-will-increase-imports-from-us-according-to-market-principles-official-275252">China will increase imports from US according to 'market principles': Official</a>

The&nbsp;deal&nbsp;is unlikely to significantly change the growth outlook, but it should allow companies to make the capital investments they have not, which is positive, said Marvin Loh, senior&nbsp;global&nbsp;macro strategist at State Street&nbsp;Global&nbsp;Markets.

"What's most important to investors is a potential de-escalation and signs that de-escalation will continue this year, which is the outlook period for a lot of investors," he said.

"If we can somehow take this out as one of the bigger risks that we had all last year, it does give some confidence to the market. Not necessarily from an economic but from a risk parameter perspective," Loh said.

MSCI's gauge of&nbsp;stocks&nbsp;across the globe gained 0.07%. Earlier in Europe, the pan-regional STOXX 600 index closed up 0.1% while MSCI's broadest measure of Asia-Pacific&nbsp;markets&nbsp;outside Japan closed down 0.35%. Japan's Nikkei lost 0.45%.

On Wall Street, the Dow Jones Industrial Average rose 90.55 points, or 0.31%, to 29,030.22. The S&amp;P 500 &nbsp;gained 6.14 points, or 0.19%, to 3,289.29 and the Nasdaq Composite added 7.37 points, or 0.08%, to 9,258.70.

Emerging market&nbsp;stocks&nbsp;lost 0.53%.

Oil&nbsp;prices slipped on concerns the&nbsp;trade&nbsp;agreement may not provide much of a&nbsp;demand&nbsp;boost because the United States intends to keep tariffs on Chinese goods until a Phase 2&nbsp;deal&nbsp;is reached.

Prices were also under pressure from a report by the Organization of Petroleum Exporting Countries. OPEC expects lower&nbsp;demand&nbsp;for its&nbsp;oil&nbsp;in 2020 even as&nbsp;global&nbsp;demand&nbsp;rises, as rival producers grab market share and the United States looks set for another output record.

Brent crude fell 49 cents to settle at $64.00 a barrel. US&nbsp;West Texas Intermediate crude futures settled down 42 cents at $57.81 a barrel.

The dollar pared losses but remained lower against the euro and the yen after the signing of a&nbsp;trade&nbsp;deal&nbsp;that may prove a mild negative for the greenback as it removes uncertainty.

The dollar index, tracking the unit against six major peers, fell 0.14%, with the euro up 0.18% to $1.1147.

US&nbsp;Treasury yields declined as investors repositioned around&nbsp;new&nbsp;data showing producer prices barely rose in December.

A rise in the cost of goods was offset by weakness in services, the latest indication of tame inflation pressures that could allow the Federal Reserve to stand pat on interest rates this year.

Benchmark 10-year notes last rose 9/32 in price to push its yield lower to 1.7864%.

In Europe, investors flocked to&nbsp;new&nbsp;fundraisings by Italy and Belgium a day after Spain saw record&nbsp;demand.

The 10-year German bond yield fell 3 basis points to -0.201%, not too far from the more than six-month highs of -0.157% touched at the start of January.

US&nbsp;gold futures settled up 0.6% at $1,554 an ounce.

US President Donald Trump and Chinese Vice Premier Liu He signed a Phase 1 deal that will roll back some tariffs and see China boost purchases of US goods and services, defusing a prolonged conflict between the world's two largest economies.

US President Donald Trump and Chinese Vice Premier Liu He signed a Phase 1 deal that will roll back some tariffs and see China boost purchases of US goods and services, defusing a prolonged conflict between the world's two largest economies. Liu said in remarks at the White House that the United States and China need to step up cooperation and that the deal benefits both countries and the world. The deal capped an 18-month dispute that had roiled markets. The centrepiece of the deal is a pledge by China to purchase at least an additional $200 billion worth of US farm products and other goods and services over two years, over a baseline of $186 billion in purchases in 2017. Key world equity indexes climbed to new records on Wednesday on hopes a US-China trade deal will reduce harmful tensions, but oil prices slid on doubts the pact will spur world growth and boost crude demand. [ Traders work on the floor at the New York Stock Exchange (Courtesy: Reuters) ] MSCI's all-world stock index and the three major indexes on Wall Street set record intraday highs. The MSCI benchmark, along with the Dow and S&P 500, also posted record closing highs, while the Dow closed above the 29,000 mark for the first time. Also Read: China will increase imports from US according to 'market principles': Official The deal is unlikely to significantly change the growth outlook, but it should allow companies to make the capital investments they have not, which is positive, said Marvin Loh, senior global macro strategist at State Street Global Markets. "What's most important to investors is a potential de-escalation and signs that de-escalation will continue this year, which is the outlook period for a lot of investors," he said. "If we can somehow take this out as one of the bigger risks that we had all last year, it does give some confidence to the market. Not necessarily from an economic but from a risk parameter perspective," Loh said. MSCI's gauge of stocks across the globe gained 0.07%. Earlier in Europe, the pan-regional STOXX 600 index closed up 0.1% while MSCI's broadest measure of Asia-Pacific markets outside Japan closed down 0.35%. Japan's Nikkei lost 0.45%. On Wall Street, the Dow Jones Industrial Average rose 90.55 points, or 0.31%, to 29,030.22. The S&P 500 gained 6.14 points, or 0.19%, to 3,289.29 and the Nasdaq Composite added 7.37 points, or 0.08%, to 9,258.70. Emerging market stocks lost 0.53%. Oil prices slipped on concerns the trade agreement may not provide much of a demand boost because the United States intends to keep tariffs on Chinese goods until a Phase 2 deal is reached. Prices were also under pressure from a report by the Organization of Petroleum Exporting Countries. OPEC expects 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 fell 49 cents to settle at $64.00 a barrel. US West Texas Intermediate crude futures settled down 42 cents at $57.81 a barrel. The dollar pared losses but remained lower against the euro and the yen after the signing of a trade deal that may prove a mild negative for the greenback as it removes uncertainty. The dollar index, tracking the unit against six major peers, fell 0.14%, with the euro up 0.18% to $1.1147. US Treasury yields declined as investors repositioned around new data showing producer prices barely rose in December. A rise in the cost of goods was offset by weakness in services, the latest indication of tame inflation pressures that could allow the Federal Reserve to stand pat on interest rates this year. Benchmark 10-year notes last rose 9/32 in price to push its yield lower to 1.7864%. In Europe, investors flocked to new fundraisings by Italy and Belgium a day after Spain saw record demand. The 10-year German bond yield fell 3 basis points to -0.201%, not too far from the more than six-month highs of -0.157% touched at the start of January. US gold futures settled up 0.6% at $1,554 an ounce.

US stocks climb to new peak after trade deal

In an unexpected turn of events, Norway has recently claimed that its new huge oil facility is good for the environment.

The Johan Sverdrup field was opened by the Norwegian prime minister last week. The authorities claim that the facility will ''reduce emissions'' as it&nbsp;operates solely on renewable energy.

"Johan Sverdrup is now open. That's good news for our investors, for Norway,&nbsp;and for emissions," announced Equinor, the state company with jurisdiction over the field.

Also read:&nbsp;<a href="https://www.wionews.com/world/climate-change-caused-15-disasters-costing-over-1-billion-this-year-sources-270576">Climate change caused 15 disasters costing over $1 billion this year</a>

Many critics, however, perceive the third-largest oil field in Norway as a signifier of the country's hypocrisy when it comes to climate change.&nbsp;

The expansive field is situated 140 kilometres away from the coast and was named after the country's first prime minister.

The fields boasts 2.7 billion barrels of oil, which could last for over half a century, and could bring more than $100m into the country.

CNN reported that the operation runs on hydroelectric power, generated from the ocean. This is a first, for most oil fields employ diesel generators to fulfill their needs.&nbsp;

Norway has been at the helm of positive climate change. It was not only the first country to ratify the Paris Agreement, but has continuously reinstated its faith in achieving the climate-neutral status by 2030.

<h6><img alt="iiii" data-entity-type="file" data-entity-uuid="01f0fec4-f6b5-4457-99b9-5a45ce19043e" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20%281%29_56.jpg" /> 
Image:&nbsp;A worker at an&nbsp;oil&nbsp;field owned by Bashneft, Bashkortostan, Russia, January 28, 2015 | Reuters 
&nbsp;</h6>

The country also offers electric cars at a subsidised rate, with a fully enforced ban on deforestation.&nbsp;

"Norway has a schizophrenic relationship with climate and oil and gas," Lars-Henrik Paarup Michelsen, CEO of the Norwegian Climate Foundation think tank, told CNN.

Besides all this action to battle and limit climate change, Norway continues to be a major fossil fuel producer. Pumping out over two million barrels of oil a day, Norway is Europes's second-biggest producer after Russia, as per the figures provided by the International Energy Agency.

&nbsp;Norway's natural gas production is also way more than any other European country.

"We are great at adopting ambitious emission targets, but at the same time we plan for oil and gas production for decades to come", Michelsen added in conversation with CNN.

Over the last few decades, Norway has invested heavily in renewable energy, especially hydropower. Much of its clean energy is used to sustain the country, while pollution-causing oil and gas are sold to foreign players.

The parent company of the field is hell-bent on asserting the efficiency of the field. "Average CO2 emissions from international fields are 25 times higher, (with) 18 kg CO2 emitted per barrel produced versus 0.67 kg CO2 emitted per barrel produced from Sverdrup," Equinor spokesperson Morten Eek told CNN.

<h6><img alt="iii" data-entity-type="file" data-entity-uuid="0bef3dfc-a3ac-4fcd-aec3-afa1156efb25" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design_49.jpg" /> 
Image:&nbsp;Climate change activists take part in a demonstration of the Fridays for Future movement in Lausanne, Switzerland January 17, 2020 | Reuters&nbsp; 
&nbsp;</h6>

However, Michelsen told CNN that this is barely sufficient in the longer run. He said that emissions from production account for only five per cent of global oil emissions.&nbsp;

"The big problem is the combustion, in sectors like transport and industry," he said.

Also read:&nbsp;<a href="https://www.wionews.com/india-news/denmark-sweden-norway-are-worlds-best-countries-to-raise-children-india-bags-59th-spot-275134">Denmark, Sweden, Norway are world's best countries to raise children; India bags 59th spot</a>

For a better understanding, emissions within Norway accounted for 53 million tonnes of CO2 equivalents in 2017, while emissions caused by Norwegian oil and gas exports caused 470 million tonnes of emissions, as per data in the United Nations' Emission Gap Report.

Besides planning to become climate neutral by 2030, Norway also intends to become a low-emission society by 2050. Almost 30 per cent reduction in emissions can be expected by 2020, and over 40 per cent by 2030.

Norway currently operates 87 fields, with production planned until at least 2070. The country's production is slated to hit a record high in 2023.

In an unexpected turn of events, Norway has recently claimed that its new huge oil facility is good for the environment. The Johan Sverdrup field was opened by the Norwegian prime minister last week.

In an unexpected turn of events, Norway has recently claimed that its new huge oil facility is good for the environment. The Johan Sverdrup field was opened by the Norwegian prime minister last week. The authorities claim that the facility will ''reduce emissions'' as it operates solely on renewable energy. "Johan Sverdrup is now open. That's good news for our investors, for Norway, and for emissions," announced Equinor, the state company with jurisdiction over the field. Also read: Climate change caused 15 disasters costing over $1 billion this year Many critics, however, perceive the third-largest oil field in Norway as a signifier of the country's hypocrisy when it comes to climate change. The expansive field is situated 140 kilometres away from the coast and was named after the country's first prime minister. The fields boasts 2.7 billion barrels of oil, which could last for over half a century, and could bring more than $100m into the country. CNN reported that the operation runs on hydroelectric power, generated from the ocean. This is a first, for most oil fields employ diesel generators to fulfill their needs. Norway has been at the helm of positive climate change. It was not only the first country to ratify the Paris Agreement, but has continuously reinstated its faith in achieving the climate-neutral status by 2030. Image: A worker at an oil field owned by Bashneft, Bashkortostan, Russia, January 28, 2015 | Reuters The country also offers electric cars at a subsidised rate, with a fully enforced ban on deforestation. "Norway has a schizophrenic relationship with climate and oil and gas," Lars-Henrik Paarup Michelsen, CEO of the Norwegian Climate Foundation think tank, told CNN. Besides all this action to battle and limit climate change, Norway continues to be a major fossil fuel producer. Pumping out over two million barrels of oil a day, Norway is Europes's second-biggest producer after Russia, as per the figures provided by the International Energy Agency. Norway's natural gas production is also way more than any other European country. "We are great at adopting ambitious emission targets, but at the same time we plan for oil and gas production for decades to come", Michelsen added in conversation with CNN. Over the last few decades, Norway has invested heavily in renewable energy, especially hydropower. Much of its clean energy is used to sustain the country, while pollution-causing oil and gas are sold to foreign players. The parent company of the field is hell-bent on asserting the efficiency of the field. "Average CO2 emissions from international fields are 25 times higher, (with) 18 kg CO2 emitted per barrel produced versus 0.67 kg CO2 emitted per barrel produced from Sverdrup," Equinor spokesperson Morten Eek told CNN. Image: Climate change activists take part in a demonstration of the Fridays for Future movement in Lausanne, Switzerland January 17, 2020 | Reuters However, Michelsen told CNN that this is barely sufficient in the longer run. He said that emissions from production account for only five per cent of global oil emissions. "The big problem is the combustion, in sectors like transport and industry," he said. Also read: Denmark, Sweden, Norway are world's best countries to raise children; India bags 59th spot For a better understanding, emissions within Norway accounted for 53 million tonnes of CO2 equivalents in 2017, while emissions caused by Norwegian oil and gas exports caused 470 million tonnes of emissions, as per data in the United Nations' Emission Gap Report. Besides planning to become climate neutral by 2030, Norway also intends to become a low-emission society by 2050. Almost 30 per cent reduction in emissions can be expected by 2020, and over 40 per cent by 2030. Norway currently operates 87 fields, with production planned until at least 2070. The country's production is slated to hit a record high in 2023.

New oil facility will 'reduce emissions', says Norway; gets labelled hypocrite

India, the world's third-biggest oil consumer, imports about 84% of its <a href="https://www.wionews.com/business-economy/as-wider-trade-dispute-looms-malaysia-talks-to-india-over-palm-curbs-274679">oil needs</a> and traditionally relies on the Middle East for the majority of its supply.

However, the region's share of India's crude shrank to 60% last year - down from 65% a year ago and the lowest since 2015 - as record output from the United States and countries like Russia offered opportunities for importers to tap other sources.

India shipped in 2.68 million barrels per day (BPD) oil from the Middle East in 2019, down about 10% from 2018, and around 1.8 million BPD from elsewhere.

Deeper than expected oil output cuts by OPEC and allies, shouldered by Saudi Arabia, and less supply from Iran due to US&nbsp;sanctions also dented India's intake of Middle Eastern oil, said Ehsan Ul Haq, analyst with Refinitiv.

Also Read:&nbsp;<a href="https://www.wionews.com/business-economy/indias-november-oil-import-growth-fastest-in-seven-months-sources-270035">India's November oil import growth fastest in seven months</a>

Last year, sanctions and output cuts by OPEC and allies, known as OPEC+, reduced the group's supplies by 1.9 million BPD from 2018, while non-OPEC supply rose by 2 million BPD, the International Energy Agency said in its latest report.

<img alt="India Oil Imports" data-entity-type="file" data-entity-uuid="40d5237f-e21c-4fa3-892f-ff132917e3af" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20-%202020-01-20T123546.747.jpg" /> 
[&nbsp;boy walks past an oil tanker train stationed at a railway station in Ghaziabad, Courtesy: Reuters) ]

The IEA forecast that producers outside the OPEC+ pact would grow supplies by 2.1 million BPD in 2020.

India is working on a strategy to diversify its oil supply sources to cut dependence on the Middle East, Oil Minister Dharmendra Pradhan said last week, adding that some refiners are in advance negotiations to boost Russian oil imports.

<img alt="Oil imports low" data-entity-type="file" data-entity-uuid="a431b9c8-7ba0-45fd-902e-0f558d54f055" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20-%202020-01-20T123522.599.jpg" /> 
[&nbsp;India's oil imports from Middle East fall to four-year-low in 2019 (Courtesy: Reuters) ]

The drive to expand crude sources also reflects a push by Prime Minister Narendra Modi to bolster ties with countries like Russia and the United States.

India's overall <a href="https://www.wionews.com/business-economy/as-palm-row-simmers-india-says-no-meeting-with-malaysia-in-davos-275314">oil imports</a> in 2019 fell by about 2.1% to 4.48 million BPD, the data showed because most refiners temporarily shut processing units for upgrades ahead of new fuel standards in 2020. India is migrating to Euro VI-compliant fuel from April 1.

Imports from CIS nations rose in 2019 by about 65% to 171,000 BPD, the data showed. Intake of African grades rose by 7.3% to about 713,000 BPD, while US&nbsp;supplies surged by about 63% to 181,000 BPD.

US&nbsp;oil accounted for about 4% of India's overall imports in 2019, up from just 2.5% a year earlier.

"The opening of an arbitrage window for US&nbsp;oil during the year changed oil flows. The differential was enough to take care of shipping," said Haq.

Demand for heavy Middle Eastern grades was also affected by a shift in bunker fuel specifications from January, following new industry rules promoting lower sulphur fuels.

"Most Middle Eastern grades yield high sulphur fuel oil (HSFO) and because of new marine fuel norms, refiners are buying more from other producers to cut production of HSFO and increase the output of very low sulphur fuel oil," Haq added.

India, the world's third-biggest oil consumer, imports about 84% of its oil needs and traditionally relies on the Middle East for the majority of its supply. However, the region's share of India's crude shrank to 60% last year - down from 65% a year ago and the lowest since 2015 - as record output from the United States and countries like Russia offered opportunities for importers to tap other sources.

India, the world's third-biggest oil consumer, imports about 84% of its oil needs and traditionally relies on the Middle East for the majority of its supply. However, the region's share of India's crude shrank to 60% last year - down from 65% a year ago and the lowest since 2015 - as record output from the United States and countries like Russia offered opportunities for importers to tap other sources. India shipped in 2.68 million barrels per day (BPD) oil from the Middle East in 2019, down about 10% from 2018, and around 1.8 million BPD from elsewhere. Deeper than expected oil output cuts by OPEC and allies, shouldered by Saudi Arabia, and less supply from Iran due to US sanctions also dented India's intake of Middle Eastern oil, said Ehsan Ul Haq, analyst with Refinitiv. Also Read: India's November oil import growth fastest in seven months Last year, sanctions and output cuts by OPEC and allies, known as OPEC+, reduced the group's supplies by 1.9 million BPD from 2018, while non-OPEC supply rose by 2 million BPD, the International Energy Agency said in its latest report. [ boy walks past an oil tanker train stationed at a railway station in Ghaziabad, Courtesy: Reuters) ] The IEA forecast that producers outside the OPEC+ pact would grow supplies by 2.1 million BPD in 2020. India is working on a strategy to diversify its oil supply sources to cut dependence on the Middle East, Oil Minister Dharmendra Pradhan said last week, adding that some refiners are in advance negotiations to boost Russian oil imports. [ India's oil imports from Middle East fall to four-year-low in 2019 (Courtesy: Reuters) ] The drive to expand crude sources also reflects a push by Prime Minister Narendra Modi to bolster ties with countries like Russia and the United States. India's overall oil imports in 2019 fell by about 2.1% to 4.48 million BPD, the data showed because most refiners temporarily shut processing units for upgrades ahead of new fuel standards in 2020. India is migrating to Euro VI-compliant fuel from April 1. Imports from CIS nations rose in 2019 by about 65% to 171,000 BPD, the data showed. Intake of African grades rose by 7.3% to about 713,000 BPD, while US supplies surged by about 63% to 181,000 BPD. US oil accounted for about 4% of India's overall imports in 2019, up from just 2.5% a year earlier. "The opening of an arbitrage window for US oil during the year changed oil flows. The differential was enough to take care of shipping," said Haq. Demand for heavy Middle Eastern grades was also affected by a shift in bunker fuel specifications from January, following new industry rules promoting lower sulphur fuels. "Most Middle Eastern grades yield high sulphur fuel oil (HSFO) and because of new marine fuel norms, refiners are buying more from other producers to cut production of HSFO and increase the output of very low sulphur fuel oil," Haq added.

Slippery Slope: India's Imports from Middle East at four year low

<a href="https://www.wionews.com/business-economy/oil-prices-steady-on-track-for-biggest-yearly-rise-since-2016-271227">Oil prices</a> soared more than four per cent Friday and equities reversed early gains following news that the US had killed a top Iranian general, fanning fresh fears of a conflict in the crude-rich region.

The head of Iran's Quds Force, <a href="https://www.wionews.com/world/deputy-head-of-group-irans-quds-force-head-qasem-soleimani-killed-hashed-al-shaabi-271762">Qasem Soleimani</a>, was hit in an attack on Baghdad's international airport early Friday, according to Hashed, a powerful Iraqi paramilitary force linked to Tehran.

The Indian Rupee weakened and shares slipped as oil prices surged after US airstrikes killed a top Iranian commander, intensifying geopolitical tensions in the Middle East.

Other Asian markets also tumbled following news of the airstrikes, in which the head of Iran's elite Quds Force and a top Iraqi militia leader were killed early on Friday at Baghdad airport.

The Rupee weakened by 0.26 per cent to 71.5525 against the dollar. India, the world's third-biggest oil consumer, imports about 80 per cent of its oil needs, making it highly susceptible to crude price swings.

Brent surged 4.4 per cent to $69.16 and WTI jumped 4.3 per cent to $63.84 as investors grow increasingly worried about a possible flare-up in the tinderbox Middle East.

"This is more than just bloodying Iran's nose," said AxiTrader's Stephen Innes. "This is an aggressive show of force and an outright provocation that could trigger another Middle East war."

The <a href="https://www.wionews.com/world/rocket-attack-on-baghdad-airport-top-iran-commander-killed-271756">killing of Soleimani</a> is a dramatic escalation of tensions between the US and Iran and comes after a pro-Iran mob this week laid siege to the US embassy in Iraq following deadly American airstrikes on the hardline Hashed faction.

The attack on the embassy highlighted new strains in the US-Iraqi relationship, which officials from both countries have described to sources as the "coldest" in years.

It also comes as tensions between the US and North Korea worsen, with <a href="https://www.wionews.com/world/north-korean-leader-skips-set-piece-new-years-speech-271374">Kim Jong Un</a> declaring a self-imposed moratorium on nuclear and intercontinental ballistic missile tests had ended, with talks with the US going nowhere.

"We are waking up to a less safe world than it was only hours ago, especially if we combine this with simmering tension in the Korean peninsula," Innes added.

The drama sent investors rushing for the hills and safe-haven units rallied with the yen up 0.7 per cent against the dollar and gold climbing more than one per cent.

High-risk currencies retreated against the greenback, with South Korea's won down 0.6 per cent, Australia's dollar down 0.4 per cent and the South African rand down more than one per cent.

Equities sank into the red, having been enjoying the second day of the year rallying on trade optimism.

Hong Kong fell 0.2 per cent, while <a href="https://www.wionews.com/world/china-halts-british-stock-link-over-political-tensions-sources-271591">Shanghai</a> shed 0.1 per cent. Singapore retreated 0.2 per cent, Seoul lost 0.1 per cent and Taipei eased 0.3 per cent. However, Sydney, Wellington, and Manila held in positive territory.

Markets had all been well up before news of the strike, thanks to ongoing optimism fuelled by the China-US trade agreement, looser central bank monetary policies and easing Brexit worries.

Oil prices soared more than four per cent Friday and equities reversed early gains following news that the US had killed a top Iranian general, fanning fresh fears of a conflict in the crude-rich region.

Oil prices soared more than four per cent Friday and equities reversed early gains following news that the US had killed a top Iranian general, fanning fresh fears of a conflict in the crude-rich region. The head of Iran's Quds Force, Qasem Soleimani, was hit in an attack on Baghdad's international airport early Friday, according to Hashed, a powerful Iraqi paramilitary force linked to Tehran. The Indian Rupee weakened and shares slipped as oil prices surged after US airstrikes killed a top Iranian commander, intensifying geopolitical tensions in the Middle East. Other Asian markets also tumbled following news of the airstrikes, in which the head of Iran's elite Quds Force and a top Iraqi militia leader were killed early on Friday at Baghdad airport. The Rupee weakened by 0.26 per cent to 71.5525 against the dollar. India, the world's third-biggest oil consumer, imports about 80 per cent of its oil needs, making it highly susceptible to crude price swings. Brent surged 4.4 per cent to $69.16 and WTI jumped 4.3 per cent to $63.84 as investors grow increasingly worried about a possible flare-up in the tinderbox Middle East. "This is more than just bloodying Iran's nose," said AxiTrader's Stephen Innes. "This is an aggressive show of force and an outright provocation that could trigger another Middle East war." The killing of Soleimani is a dramatic escalation of tensions between the US and Iran and comes after a pro-Iran mob this week laid siege to the US embassy in Iraq following deadly American airstrikes on the hardline Hashed faction. The attack on the embassy highlighted new strains in the US-Iraqi relationship, which officials from both countries have described to sources as the "coldest" in years. It also comes as tensions between the US and North Korea worsen, with Kim Jong Un declaring a self-imposed moratorium on nuclear and intercontinental ballistic missile tests had ended, with talks with the US going nowhere. "We are waking up to a less safe world than it was only hours ago, especially if we combine this with simmering tension in the Korean peninsula," Innes added. The drama sent investors rushing for the hills and safe-haven units rallied with the yen up 0.7 per cent against the dollar and gold climbing more than one per cent. High-risk currencies retreated against the greenback, with South Korea's won down 0.6 per cent, Australia's dollar down 0.4 per cent and the South African rand down more than one per cent. Equities sank into the red, having been enjoying the second day of the year rallying on trade optimism. Hong Kong fell 0.2 per cent, while Shanghai shed 0.1 per cent. Singapore retreated 0.2 per cent, Seoul lost 0.1 per cent and Taipei eased 0.3 per cent. However, Sydney, Wellington, and Manila held in positive territory. Markets had all been well up before news of the strike, thanks to ongoing optimism fuelled by the China-US trade agreement, looser central bank monetary policies and easing Brexit worries.

Oil prices surge after US strike kills Iranian general Soleimani

<a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">Oil prices</a> traded at three-month highs on Monday, underpinned by optimism over an expected <a href="https://www.wionews.com/business-economy/gold-prices-steady-as-us-china-trade-deal-doubts-linger-263135">US-China trade deal</a>, while traders kept a close eye on the Middle East following a <a href="https://www.wionews.com/south-asia/us-airstrike-kills-25-is-terrorists-in-afghanistan-32150">US&nbsp;airstrike</a>.

Markets showed little initial reaction to news of the US&nbsp;strikes in Iraq and Syria against an Iran-backed militia group, even as US&nbsp;officials warned "additional actions" may be taken.

West Texas Intermediate (<a href="https://www.wionews.com/business-economy/crude-oil-prices-fall-1-on-fears-for-global-economy-233148">WTI</a>) crude futures edged up 5 cents to $61.77 a barrel by 0529 GMT. The US&nbsp;benchmark is up about 36&nbsp;per cent&nbsp;so far this year.

Brent crude futures were at $68.36 a barrel, up 20 cents, or 0.3 per cent. The international benchmark has risen around 27 per cent&nbsp;in 2019.

"(Trading) has been relatively flat due to lack of market participants in the holiday season," said market analyst Margaret Yang of CMC Markets.

"Oil prices have reached their highest level since the Saudi oil field attack in Mid Sep, and thus traders are also cautious about profit-taking possibilities," she added.

On Sunday, China's Commerce Ministry said it is in close touch with the United States on the signing of a long-awaited trade deal.

The two countries on December&nbsp;13 announced a "Phase one" agreement that reduces some US&nbsp;tariffs in exchange for what US&nbsp;officials said would be a big jump in Chinese purchases of American farm products and other goods.

Oil prices were also supported by declining US&nbsp;crude stocks which fell by 5.5 million barrels in the week to December&nbsp;20, far exceeding a 1.7-million-barrel drop forecast in a Reuters poll.

In the Middle East, the United States carried out air strikes on Sunday in Iraq and Syria against the Kataib Hezbollah militia group, while protesters in Iraq on Saturday forced the closure of its southern Nassiriya oilfield.

US&nbsp;officials said the air strikes in response to the killing of a US&nbsp;civilian contractor in a rocket attack on an Iraqi military base were successful but warned that "additional actions" may still be taken.

Iraq's oil ministry said the production halt at the Nassiriya oilfield will not affect the country's exports as it will use the additional output from southern oilfields in Basra.

Elsewhere, Libyan state oil firm NOC said it is considering the closure of its western Zawiya port and evacuating staff from the refinery located there due to clashes nearby.

However, the holiday season meant "oil will continue to struggle for meaningful moves," said Edward Moya, analyst at brokerage OANDA.

Oil prices traded at three-month highs on Monday, underpinned by optimism over an expected US-China trade deal, while traders kept a close eye on the Middle East following a US airstrike.

Oil prices traded at three-month highs on Monday, underpinned by optimism over an expected US-China trade deal, while traders kept a close eye on the Middle East following a US airstrike. Markets showed little initial reaction to news of the US strikes in Iraq and Syria against an Iran-backed militia group, even as US officials warned "additional actions" may be taken. West Texas Intermediate (WTI) crude futures edged up 5 cents to $61.77 a barrel by 0529 GMT. The US benchmark is up about 36 per cent so far this year. Brent crude futures were at $68.36 a barrel, up 20 cents, or 0.3 per cent. The international benchmark has risen around 27 per cent in 2019. "(Trading) has been relatively flat due to lack of market participants in the holiday season," said market analyst Margaret Yang of CMC Markets. "Oil prices have reached their highest level since the Saudi oil field attack in Mid Sep, and thus traders are also cautious about profit-taking possibilities," she added. On Sunday, China's Commerce Ministry said it is in close touch with the United States on the signing of a long-awaited trade deal. The two countries on December 13 announced a "Phase one" agreement that reduces some US tariffs in exchange for what US officials said would be a big jump in Chinese purchases of American farm products and other goods. Oil prices were also supported by declining US crude stocks which fell by 5.5 million barrels in the week to December 20, far exceeding a 1.7-million-barrel drop forecast in a Reuters poll. In the Middle East, the United States carried out air strikes on Sunday in Iraq and Syria against the Kataib Hezbollah militia group, while protesters in Iraq on Saturday forced the closure of its southern Nassiriya oilfield. US officials said the air strikes in response to the killing of a US civilian contractor in a rocket attack on an Iraqi military base were successful but warned that "additional actions" may still be taken. Iraq's oil ministry said the production halt at the Nassiriya oilfield will not affect the country's exports as it will use the additional output from southern oilfields in Basra. Elsewhere, Libyan state oil firm NOC said it is considering the closure of its western Zawiya port and evacuating staff from the refinery located there due to clashes nearby. However, the holiday season meant "oil will continue to struggle for meaningful moves," said Edward Moya, analyst at brokerage OANDA.

Oil edges up on trade optimism, eyes on Middle East tensions

<a href="https://www.wionews.com/business-economy/oil-falls-as-us-inventories-rise-but-demand-hopes-stem-bigger-drop-268973">Oil prices</a> fell on Monday, but were holding near recent three-month highs amid expectations that the United States and China will soon agree on a trade deal, with President Donald Trump saying an agreement would be signed "<a href="https://www.wionews.com/world/phase-one-trade-deal-with-china-would-be-signed-very-shortly-donald-trump-269576">very shortly</a>".

Brent crude was down 16 cents, or 0.2 per cent, at $65.98 a barrel by 0730 GMT. West Texas Intermediate was down 22 cents, or 0.4 per cent, at $60.22 a barrel.

A so-called <a href="https://www.wionews.com/world/phase-one-trade-deal-reached-with-us-china-268186">phase one deal</a> was announced earlier in December as part of a bid to end the months-long tit-for-tat trade war between the world's two largest economies, which has sent shockwaves through markets and <a href="https://www.wionews.com/world/trump-hopes-us-china-trade-deal-will-be-signed-by-middle-of-november-256808">roiled global growth</a>.

The United States is to agree to <a href="https://www.wionews.com/world/trump-will-make-final-call-on-china-tariffs-likes-direction-of-talks-larry-kudlow-266889">reduce some tariffs</a> in return for a big increase in purchases by Chinese importers of American farm products, according to the deal that is due to be signed in January.

"We just achieved a breakthrough on the trade deal and we will be signing it very shortly," Trump said at a Turning Point USA event in Florida on Saturday.

The easing of tensions has improved business confidence and boosted the outlook for economic growth and energy demand.

"Oil prices will continue to benefit from the positive developments in the <a href="https://www.wionews.com/world/donald-trump-xi-jinping-give-positive-signals-on-trade-deal-after-phone-call-269443">US-China&nbsp;trade</a>," said <a href="https://www.wionews.com/business-economy/gold-prices-subdued-as-investors-await-trade-deal-details-palladium-dips-268837">Stephen Innes</a>, chief&nbsp;Asia market strategist at <a href="https://www.wionews.com/business-economy/oil-prices-slip-as-weak-china-exports-highlights-trade-war-impact-267079">AxiTrader</a>.

"With a more constructive global macro outlook than at any time in the last year, oil is well-supported by both fundamental factors and sentiment now," he said.

US&nbsp;drillers may be anticipating higher prices as well and last week increased the number of their oil rigs by the most in a week since February 2018.

Drillers added 18 oil rigs in the week to December&nbsp;20, bringing the total to 685, the most since November, <a href="https://www.wionews.com/business-economy/oil-drops-as-us-inventory-build-record-output-rekindles-supply-worries-264998">Baker Hughes</a>, an energy services company, said in its weekly report.

US&nbsp;economic growth nudged up in the third quarter, latest data shows, and the economy appears to have maintained the moderate pace of expansion as the year ended, supported by a strong labour market.

Many investors are on holiday already with the end of the year around the corner and trading is thin, potentially accentuating market moves due to the lack of liquidity.

"With the holiday season upon us with much-reduced volumes and liquidity, some choppy daily moves can&nbsp;be expected," said <a href="https://www.wionews.com/business-economy/oil-rises-on-hopes-for-deeper-opec-output-cuts-us-china-trade-talks-255148">Jeffrey Halley</a>, senior market analyst at OANDA.

Oil prices fell on Monday, but were holding near recent three-month highs amid expectations that the United States and China will soon agree on a trade deal, with President Donald Trump saying an agreement would be signed "very shortly".

Oil prices fell on Monday, but were holding near recent three-month highs amid expectations that the United States and China will soon agree on a trade deal, with President Donald Trump saying an agreement would be signed "very shortly". Brent crude was down 16 cents, or 0.2 per cent, at $65.98 a barrel by 0730 GMT. West Texas Intermediate was down 22 cents, or 0.4 per cent, at $60.22 a barrel. A so-called phase one deal was announced earlier in December as part of a bid to end the months-long tit-for-tat trade war between the world's two largest economies, which has sent shockwaves through markets and roiled global growth. The United States is to agree to reduce some tariffs in return for a big increase in purchases by Chinese importers of American farm products, according to the deal that is due to be signed in January. "We just achieved a breakthrough on the trade deal and we will be signing it very shortly," Trump said at a Turning Point USA event in Florida on Saturday. The easing of tensions has improved business confidence and boosted the outlook for economic growth and energy demand. "Oil prices will continue to benefit from the positive developments in the US-China trade," said Stephen Innes, chief Asia market strategist at AxiTrader. "With a more constructive global macro outlook than at any time in the last year, oil is well-supported by both fundamental factors and sentiment now," he said. US drillers may be anticipating higher prices as well and last week increased the number of their oil rigs by the most in a week since February 2018. Drillers added 18 oil rigs in the week to December 20, bringing the total to 685, the most since November, Baker Hughes, an energy services company, said in its weekly report. US economic growth nudged up in the third quarter, latest data shows, and the economy appears to have maintained the moderate pace of expansion as the year ended, supported by a strong labour market. Many investors are on holiday already with the end of the year around the corner and trading is thin, potentially accentuating market moves due to the lack of liquidity. "With the holiday season upon us with much-reduced volumes and liquidity, some choppy daily moves can be expected," said Jeffrey Halley, senior market analyst at OANDA.

Oil eases but supported by trade deal hopes

Oil&nbsp;prices fell on Wednesday after&nbsp;US&nbsp;industry data showed a surprise&nbsp;build-up in crude&nbsp;inventories&nbsp;but losses were kept in check by expectations for an uptick in&nbsp;demand&nbsp;next year on the back of progress in resolving the&nbsp;<a href="https://www.wionews.com/opinions/us-china-trade-war-points-to-the-real-crisis-that-global-leaders-must-confront-at-g20-summit-231112">US-China trade</a> row.

Brent crude futures&nbsp;dropped 41 cents, or 0.6 per cents, to $65.69 a barrel by 0940 GMT on Wednesday. West Texas Intermediate (WTI) crude futures fell 52 cents, or 0.9 per cents, to $60.42 per barrel.

Prices had&nbsp;risen more than 1 per cent&nbsp;in the previous session after the announcement last week of the so-called <a href="https://www.wionews.com/world/phase-one-trade-deal-reached-with-us-china-268186">Phase One</a> of a&nbsp;U.S.-China trade deal, which lifted global economic prospects and improved the outlook for energy&nbsp;demand.

"The sizzling&nbsp;oil&nbsp;market rally came to a grinding halt after an unexpected climb in the weekly&nbsp;US&nbsp;crude inventory report," said <a href="https://www.wionews.com/business-&amp;-economy/oil-prices-drop-on-worries-about-oversupply-154079?amp">Stephen Innes</a>, market strategist at AxiTrader, although he said figures for stocks were "unlikely to be a game-changer."

"Investors have transcended the trade deal-inspired relief rally euphoria, and are now banking on a fundamental&nbsp;demand-driven shift that could quicken the pace of the&nbsp;oil&nbsp;market rebalancing in the first quarter of 2020," he said.

US&nbsp;crude&nbsp;inventories&nbsp;climbed 4.7 million barrels in the week to December&nbsp;13 to 452 million, compared with analysts' expectations for a draw of 1.3 million barrels, data from industry group the <a href="https://www.wionews.com/world/us-oil-falls-to-three-week-low-on-inventory-gains-due-to-brexit-fears-506">American Petroleum Institute</a> showed.

Data from the&nbsp;US&nbsp;Energy Information Administration (EIA) is due later on Wednesday.

"As much as the API has taken the wind out of bulls' sails, the lull in&nbsp;upside is expected to be short-lived. After all, recent positive developments have given&nbsp;oil&nbsp;fundamentals for next year a supportive shot in the arm," said Stephen Brennock of&nbsp;oil&nbsp;broker PVM.

Deeper production cuts&nbsp;coming from the Organization of the Petroleum Exporting Countries and its allies, such as Russia, which make up a group known as OPEC+, also continued to offer some support and prevented a further slide in prices.

OPEC+, which has cut production by 1.2 million barrels per day (bpd) since January 1 this year, will make a further output cut of 500,000 bpd from January 1, 2020, to support the market.&nbsp;

Oil prices fell on Wednesday after US industry data showed a surprise build-up in crude inventories but losses were kept in check by expectations for an uptick in demand next year on the back of progress in resolving the US-China trade row.

Oil prices fell on Wednesday after US industry data showed a surprise build-up in crude inventories but losses were kept in check by expectations for an uptick in demand next year on the back of progress in resolving the US-China trade row. Brent crude futures dropped 41 cents, or 0.6 per cents, to $65.69 a barrel by 0940 GMT on Wednesday. West Texas Intermediate (WTI) crude futures fell 52 cents, or 0.9 per cents, to $60.42 per barrel. Prices had risen more than 1 per cent in the previous session after the announcement last week of the so-called Phase One of a U.S.-China trade deal, which lifted global economic prospects and improved the outlook for energy demand. "The sizzling oil market rally came to a grinding halt after an unexpected climb in the weekly US crude inventory report," said Stephen Innes, market strategist at AxiTrader, although he said figures for stocks were "unlikely to be a game-changer." "Investors have transcended the trade deal-inspired relief rally euphoria, and are now banking on a fundamental demand-driven shift that could quicken the pace of the oil market rebalancing in the first quarter of 2020," he said. US crude inventories climbed 4.7 million barrels in the week to December 13 to 452 million, compared with analysts' expectations for a draw of 1.3 million barrels, data from industry group the American Petroleum Institute showed. Data from the US Energy Information Administration (EIA) is due later on Wednesday. "As much as the API has taken the wind out of bulls' sails, the lull in upside is expected to be short-lived. After all, recent positive developments have given oil fundamentals for next year a supportive shot in the arm," said Stephen Brennock of oil broker PVM. Deeper production cuts coming from the Organization of the Petroleum Exporting Countries and its allies, such as Russia, which make up a group known as OPEC+, also continued to offer some support and prevented a further slide in prices. OPEC+, which has cut production by 1.2 million barrels per day (bpd) since January 1 this year, will make a further output cut of 500,000 bpd from January 1, 2020, to support the market.

Oil falls as US inventories rise but demand hopes stem bigger drop

<a href="https://www.wionews.com/business-economy/oil-rises-as-opec-weighs-deeper-output-cuts-266440">Oil</a> edged further above $65 a barrel on Tuesday, supported by hopes that the US-China trade deal will <a href="https://www.wionews.com/business-economy/oil-prices-fall-as-hopes-for-us-china-trade-progress-wilt-254886">bolster</a> oil demand in 2020 and the prospect of lower US&nbsp;crude supplies.

The '<a href="https://www.wionews.com/world/phase-one-trade-deal-reached-with-us-china-268186">Phase One</a>' agreement between the world's two largest economies has been "absolutely completed," Larry Kudlow, a top White House adviser, said on Monday, adding that U.S. exports to China will double under the deal.

Brent crude, the global benchmark, rose 17 cents to $65.51 a barrel by 1104 GMT, while U.S. West Texas Intermediate crude added 1 cent to $60.22.

"Christmas has definitely arrived early for oil producers," said Craig Erlam, analyst at brokerage OANDA. "Brent could get closer to $70 before the rally starts to run on fumes."

The prolonged trade dispute has been a dampener for oil demand and weighed on prices. Banks including JP Morgan and Goldman Sachs have revised up their 2020 price forecasts in the wake of the improving trade outlook and a new OPEC-led agreement to curb output.

"The risk-on tone is still noticeable," said Tamas Varga of oil broker PVM. "The next event to look out for is the weekly U.S. oil inventory statistics."

Supply reports from oil industry group the <a href="https://www.wionews.com/business-economy/oil-rises-after-inventory-build-eases-recession-worries-246174">American Petroleum Institute</a> and the government's Energy Information Administration are expected to show U.S. crude inventories probably fell last week.

The first of the two, from the API, is scheduled for release at 4:30 p.m. EST (2130 GMT) on Tuesday. The government report follows on Wednesday.

Also supporting prices, the Organization of the Petroleum of Exporting Countries and allies such as Russia - a group known as OPEC+ - are making a further oil supply cut of 500,000 barrels per day from Jan. 1 to support the market.

This comes on top of the existing deal to trim supply by <a href="https://www.wionews.com/business-economy/oil-rises-as-saudi-arabia-pushes-for-further-supply-cuts-265974">1.2 million bpd</a> that came into effect on Jan. 1 this year.

Oil edged further above $65 a barrel on Tuesday, supported by hopes that the US-China trade deal will bolster oil demand in 2020 and the prospect of lower US crude supplies.

Oil edged further above $65 a barrel on Tuesday, supported by hopes that the US-China trade deal will bolster oil demand in 2020 and the prospect of lower US crude supplies. The 'Phase One' agreement between the world's two largest economies has been "absolutely completed," Larry Kudlow, a top White House adviser, said on Monday, adding that U.S. exports to China will double under the deal. Brent crude, the global benchmark, rose 17 cents to $65.51 a barrel by 1104 GMT, while U.S. West Texas Intermediate crude added 1 cent to $60.22. "Christmas has definitely arrived early for oil producers," said Craig Erlam, analyst at brokerage OANDA. "Brent could get closer to $70 before the rally starts to run on fumes." The prolonged trade dispute has been a dampener for oil demand and weighed on prices. Banks including JP Morgan and Goldman Sachs have revised up their 2020 price forecasts in the wake of the improving trade outlook and a new OPEC-led agreement to curb output. "The risk-on tone is still noticeable," said Tamas Varga of oil broker PVM. "The next event to look out for is the weekly U.S. oil inventory statistics." Supply reports from oil industry group the American Petroleum Institute and the government's Energy Information Administration are expected to show U.S. crude inventories probably fell last week. The first of the two, from the API, is scheduled for release at 4:30 p.m. EST (2130 GMT) on Tuesday. The government report follows on Wednesday. Also supporting prices, the Organization of the Petroleum of Exporting Countries and allies such as Russia - a group known as OPEC+ - are making a further oil supply cut of 500,000 barrels per day from Jan. 1 to support the market. This comes on top of the existing deal to trim supply by 1.2 million bpd that came into effect on Jan. 1 this year.

Oil edges further above $65 on trade hopes, supply cuts

Every day we hear that 'data' is the new oil or 'lithium battery' is the new oil. What about 'the oil'? Is oil still the most valued asset? Is the oil industry facing a threat of extinction?&nbsp;

On WION Edit, we will try to analyse the might of the oil industry and its place in the global economy.

Recently, Forbes compiled a list of the 15 most profitable industries. Data, batteries or arms were not in the top three, but oil and gas extraction was.

You know what topped the list - accounting and legal services - they're more profitable than oil.

Whether we like it or not, the global economy is set up in a way in which oil is the prime mover, the commodity of choice and top value.&nbsp;

The tech industry dominates the wall street, but the asset prices are highly inflated and the market valuations are not the reflection of the health of the tech industry.

Oil drives the global economy. Foreign policies of countries including ours are devised to derive benefits in oil trade.

The signs of a post-oil future are visible, but that future is far away. Elon Musk, electric vehicles, battery-fuelled devices, extreme weather events, climate protests and even climate emergency - these have become phrases.

But the truth is that last year was the most profitable year for oil producers in the US in a long time.

In a world where the demand for crude oil is gradually decreasing, oil remains a very profitable commodity.

Clearly the oil and gas industry is not going away. Though the industry faces problems like volatile prices, fall in production, but these are only reflective of the broad slowdown in the global economy, not the future of the oil industry.

A recent report by Mckinsey shows that renewables account for only 19 per cent of the overall energy mix. That figure is predicted to go up to 34 per cent by 2050.

This alone shows that the oil and gas industry will be on a strong footing for the next 30 years easily. There may be a lull now, but demand will go up in future.

And renewables cannot satisfy the bulk of the energy demand. This is indeed a tricky consolidation phase for the industry, but to write obituaries for the oil industry is preposterous, academic and one-sided. The demand for energy will be the deciding factor.

(Disclaimer: WION Edit is the channel's take on the big events of the world)&nbsp; 
&nbsp;

Every day we hear that 'data' is the new oil or 'lithium battery' is the new oil. What about 'the oil'? Is oil still the most valued asset? Is the oil industry facing a threat of extinction?

Every day we hear that 'data' is the new oil or 'lithium battery' is the new oil. What about 'the oil'? Is oil still the most valued asset? Is the oil industry facing a threat of extinction? On WION Edit, we will try to analyse the might of the oil industry and its place in the global economy. Recently, Forbes compiled a list of the 15 most profitable industries. Data, batteries or arms were not in the top three, but oil and gas extraction was. You know what topped the list - accounting and legal services - they're more profitable than oil. Whether we like it or not, the global economy is set up in a way in which oil is the prime mover, the commodity of choice and top value. The tech industry dominates the wall street, but the asset prices are highly inflated and the market valuations are not the reflection of the health of the tech industry. Oil drives the global economy. Foreign policies of countries including ours are devised to derive benefits in oil trade. The signs of a post-oil future are visible, but that future is far away. Elon Musk, electric vehicles, battery-fuelled devices, extreme weather events, climate protests and even climate emergency - these have become phrases. But the truth is that last year was the most profitable year for oil producers in the US in a long time. In a world where the demand for crude oil is gradually decreasing, oil remains a very profitable commodity. Clearly the oil and gas industry is not going away. Though the industry faces problems like volatile prices, fall in production, but these are only reflective of the broad slowdown in the global economy, not the future of the oil industry. A recent report by Mckinsey shows that renewables account for only 19 per cent of the overall energy mix. That figure is predicted to go up to 34 per cent by 2050. This alone shows that the oil and gas industry will be on a strong footing for the next 30 years easily. There may be a lull now, but demand will go up in future. And renewables cannot satisfy the bulk of the energy demand. This is indeed a tricky consolidation phase for the industry, but to write obituaries for the oil industry is preposterous, academic and one-sided. The demand for energy will be the deciding factor. (Disclaimer: WION Edit is the channel's take on the big events of the world)

WION Edit: Oil drives the global economy

<a href="https://www.wionews.com/business-economy/opec-gearing-up-for-deeper-oil-cuts-russia-yet-to-agree-266198">OPEC</a> and its allies led by Russia were moving closer on Thursday to agree to deeper oil supply cuts next year to support crude prices and prevent a glut, sources from OPEC and its allied producers said.

The Organization of the Petroleum Exporting Countries (OPEC) meets on Thursday in Vienna followed by a meeting with Russia and others, a grouping known as OPEC+, on Friday.

OPEC+ has curbed supply since 2017 to counter booming output from the United States, which has become the world's biggest producer.

Next year, rising production in the United States and other non-OPEC countries such as Brazil and Norway threaten to add to the glut.

OPEC's actions in the past have angered US&nbsp;President Donald Trump, who has repeatedly demanded OPEC's de facto leader Saudi Arabia to bring oil prices down if it wants Washington's to provide Riyadh with military support against arch-rival Iran.

In the past few months, Trump has said little about OPEC but that might change later in 2020 if oil and gasoline prices rise a politically sensitive issue as he seeks re-election in November.

Washington's ongoing trade dispute with China has also clouded the economic and therefore oil demand outlook for 2020.

Two OPEC+ sources told Reuters on Thursday the group would discuss increasing current cuts of 1.2 million barrels per day by more than 400,000 BPD.

Iraq, OPEC's second-largest producer, said on Tuesday OPEC de facto leader Saudi Arabia was supporting cuts of 1.6 million BPD, or 1.6 per cent&nbsp;of global demand.

The current cuts expire in March and OPEC sources and delegates have said the new deal could be extended to June or until the end of 2020.

Saudi Energy Minister Prince Abdulaziz bin Salman has so far declined to comment on policy matters in Vienna.

Russian Energy Minister Alexander Novak was cited by his ministry as telling Prince Abdulaziz on Thursday that Russia-Saudi energy cooperation should continue.

Saudi Arabia needs higher oil prices to support its budget revenue and the pending initial public offering (IPO) of state-owned oil giant Saudi Aramco with the pricing of the IPO expected on Thursday.

OPEC's actions have supported oil prices at around $50-$75 per barrel over the past year. Brent crude futures on Thursday were trading near $63 per barrel.

OPEC sources have also said Riyadh was pressing fellow members Iraq and Nigeria to improve their compliance with quotas, which could provide an additional reduction of up to 400,000 BPD.

Non-OPEC Russia has yet to agree to extend or deepen cuts from its current pledge of 228,000 BPD as its companies are arguing they are finding it tough to reduce output during winter months due to very low temperatures.

A source familiar with the Russian thinking told Reuters that Moscow would likely reach a deal with OPEC this week and just needed to iron out a few outstanding issues.

One sticking point for Russia is how its output is measured. Russia includes gas condensate in production figures, while other producers do not.

OPEC and its allies led by Russia were moving closer on Thursday to agree to deeper oil supply cuts next year to support crude prices and prevent a glut, sources from OPEC and its allied producers said.

OPEC and its allies led by Russia were moving closer on Thursday to agree to deeper oil supply cuts next year to support crude prices and prevent a glut, sources from OPEC and its allied producers said. The Organization of the Petroleum Exporting Countries (OPEC) meets on Thursday in Vienna followed by a meeting with Russia and others, a grouping known as OPEC+, on Friday. OPEC+ has curbed supply since 2017 to counter booming output from the United States, which has become the world's biggest producer. Next year, rising production in the United States and other non-OPEC countries such as Brazil and Norway threaten to add to the glut. OPEC's actions in the past have angered US President Donald Trump, who has repeatedly demanded OPEC's de facto leader Saudi Arabia to bring oil prices down if it wants Washington's to provide Riyadh with military support against arch-rival Iran. In the past few months, Trump has said little about OPEC but that might change later in 2020 if oil and gasoline prices rise a politically sensitive issue as he seeks re-election in November. Washington's ongoing trade dispute with China has also clouded the economic and therefore oil demand outlook for 2020. Two OPEC+ sources told Reuters on Thursday the group would discuss increasing current cuts of 1.2 million barrels per day by more than 400,000 BPD. Iraq, OPEC's second-largest producer, said on Tuesday OPEC de facto leader Saudi Arabia was supporting cuts of 1.6 million BPD, or 1.6 per cent of global demand. The current cuts expire in March and OPEC sources and delegates have said the new deal could be extended to June or until the end of 2020. Saudi Energy Minister Prince Abdulaziz bin Salman has so far declined to comment on policy matters in Vienna. Russian Energy Minister Alexander Novak was cited by his ministry as telling Prince Abdulaziz on Thursday that Russia-Saudi energy cooperation should continue. Saudi Arabia needs higher oil prices to support its budget revenue and the pending initial public offering (IPO) of state-owned oil giant Saudi Aramco with the pricing of the IPO expected on Thursday. OPEC's actions have supported oil prices at around $50-$75 per barrel over the past year. Brent crude futures on Thursday were trading near $63 per barrel. OPEC sources have also said Riyadh was pressing fellow members Iraq and Nigeria to improve their compliance with quotas, which could provide an additional reduction of up to 400,000 BPD. Non-OPEC Russia has yet to agree to extend or deepen cuts from its current pledge of 228,000 BPD as its companies are arguing they are finding it tough to reduce output during winter months due to very low temperatures. A source familiar with the Russian thinking told Reuters that Moscow would likely reach a deal with OPEC this week and just needed to iron out a few outstanding issues. One sticking point for Russia is how its output is measured. Russia includes gas condensate in production figures, while other producers do not.

OPEC and allies prepare to deepen oil output cuts

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