<a href="https://www.wionews.com/business-economy/oil-prices-jump-to-61-over-opec-supply-cut-reports-265782">Oil prices</a> gained on Tuesday, as hopes rose for OPEC and its allies to agree deeper output cuts when they meet this week, although gains were limited, amid some analysts' skepticism over the achievement of further reductions.

Brent futures rose 17 cents, or 0.3 per cent, to $61.09 a barrel by 0516 GMT, after having gained 0.7 per cent&nbsp;on Monday.

US&nbsp;West Texas Intermediate crude was up 25 cents, or 0.5 per cent, at $56.21 a barrel. The contract rose by 1.4 per cent&nbsp;on Monday.

The Organization of the Petroleum Exporting Countries (<a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">OPEC</a>) and its allies, known as OPEC+, are discussing a plan to increase an existing supply cut of 1.2 million barrels per day (BPD) by a further 400,000 BPD and extend the pact until June, two sources familiar with the matter said.

Saudi Arabia is pushing the plan to deliver a positive surprise to the market before the initial public offering (IPO) of state-owned Saudi Aramco, the sources said.

"We believe the global oil supply-demand balance requires an extension of the current OPEC+ cuts," Goldman Sachs said in a research note.

The factors behind this view included a large increase in production from legacy non-OPEC projects and a still uncertain outlook for demand growth, it added.

The investment bank said it expected Brent to trade around $60 a barrel in 2020, "absent new growth or geopolitical shocks".

OPEC ministers will meet in Vienna on Thursday and the wider OPEC+ group will gather on Friday.

"(The) oil price is little moved today, suggesting that traders are skeptical about the additional 400,000 BPD cut on top of the extension of (the) current production cut agreement," said Margaret Yang, market analyst at CMC Markets in Singapore.

Concerns about the inability of the United States and China, the world's two biggest oil users, to reach a preliminary deal to resolve their 17-month trade dispute also weighed on oil prices, along with discouraging US&nbsp;economic data.

A senior adviser to <a href="https://www.wionews.com/americas/china-loves-ripping-off-america-says-us-president-donald-trump-218218">President Donald Trump</a> said a US-China trade deal was still possible before the end of the year, adding that the first phase of the agreement was being put to paper, although the talks have dragged on for weeks.

While OPEC may cut output,&nbsp;US&nbsp;producers have been only too happy to meet any market shortfalls, with production set successive records. Growth into 2020, though, may range between 100,000 BPD and 1 million BPD.

US&nbsp;crude inventories are expected to have declined last week, which may support prices, with analysts in a preliminary Reuters poll suggesting a contraction of 1.8 million barrels.&nbsp;

In a sign of buying interest for oil, fund managers increased net long positions in US&nbsp;crude futures and options in the week to November&nbsp;26, the US&nbsp;Commodities Futures Trading Commission said.

Oil prices gained on Tuesday, as hopes rose for OPEC and its allies to agree deeper output cuts when they meet this week, although gains were limited, amid some analysts' skepticism over the achievement of further reductions.

Oil prices gained on Tuesday, as hopes rose for OPEC and its allies to agree deeper output cuts when they meet this week, although gains were limited, amid some analysts' skepticism over the achievement of further reductions. Brent futures rose 17 cents, or 0.3 per cent, to $61.09 a barrel by 0516 GMT, after having gained 0.7 per cent on Monday. US West Texas Intermediate crude was up 25 cents, or 0.5 per cent, at $56.21 a barrel. The contract rose by 1.4 per cent on Monday. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, are discussing a plan to increase an existing supply cut of 1.2 million barrels per day (BPD) by a further 400,000 BPD and extend the pact until June, two sources familiar with the matter said. Saudi Arabia is pushing the plan to deliver a positive surprise to the market before the initial public offering (IPO) of state-owned Saudi Aramco, the sources said. "We believe the global oil supply-demand balance requires an extension of the current OPEC+ cuts," Goldman Sachs said in a research note. The factors behind this view included a large increase in production from legacy non-OPEC projects and a still uncertain outlook for demand growth, it added. The investment bank said it expected Brent to trade around $60 a barrel in 2020, "absent new growth or geopolitical shocks". OPEC ministers will meet in Vienna on Thursday and the wider OPEC+ group will gather on Friday. "(The) oil price is little moved today, suggesting that traders are skeptical about the additional 400,000 BPD cut on top of the extension of (the) current production cut agreement," said Margaret Yang, market analyst at CMC Markets in Singapore. Concerns about the inability of the United States and China, the world's two biggest oil users, to reach a preliminary deal to resolve their 17-month trade dispute also weighed on oil prices, along with discouraging US economic data. A senior adviser to President Donald Trump said a US-China trade deal was still possible before the end of the year, adding that the first phase of the agreement was being put to paper, although the talks have dragged on for weeks. While OPEC may cut output, US producers have been only too happy to meet any market shortfalls, with production set successive records. Growth into 2020, though, may range between 100,000 BPD and 1 million BPD. US crude inventories are expected to have declined last week, which may support prices, with analysts in a preliminary Reuters poll suggesting a contraction of 1.8 million barrels. In a sign of buying interest for oil, fund managers increased net long positions in US crude futures and options in the week to November 26, the US Commodities Futures Trading Commission said.

Oil prices rise as Saudi Arabia pushes for further supply cuts

Oil&nbsp;prices fell on Thursday, extending losses from the previous session after official data showed United States&nbsp;crude and gasoline stocks rose against expectations and production hit a record.

Brent crude futures were down 16 cents, or 0.3 per cent, at $63.90 a barrel by 0141 GMT, having dropped 0.3 per cent&nbsp;on Wednesday.

US&nbsp;West Texas Intermediate crude fell 21 cents, or 0.4 per cent, to $57.90, after falling 0.5 per cent&nbsp;in the previous session.

Crude stockpiles in the United States swelled 1.6 million barrels last week as production hit a record high of 12.9 million barrels per day (bpd) and refinery runs slowed, the Energy Information Administration said. Analysts in a Reuters poll had forecast an inventory drop of 418,000 barrels.&nbsp;

More bearish was a 5.1 million-barrel rise in gasoline stocks, compared with forecasts for a 1.2 million-barrel gain.

Oil&nbsp;prices had risen earlier this week on expectations that China and the United States, the world's two biggest crude users, would soon sign a preliminary agreement, putting an end to their 16-month trade dispute.

"The stock data overshadowed other supply-side issues and a general pick-up in sentiment regarding the <a href="https://www.wionews.com/world/were-in-final-throes-of-trade-deal-but-will-see-how-it-goes-in-hong-kong-trump-264769">US-China trade deal</a>," ANZ Research said in a note.

Forces based in eastern Libya said on Wednesday they had driven rival factions from the 70,000-bpd El Feel&nbsp;oilfield after attacking the area with airstrikes, leading to production being halted and raising some worries about supply.

In the United States as well, energy services company Baker Hughes reported that US&nbsp;oil&nbsp;drillers reduced the number of drilling rigs for a record 12 months in a row.&nbsp;

Drillers cut three&nbsp;oil&nbsp;rigs in the week to November&nbsp;27, bringing the count down to 668, lowest since April 2017, Baker Hughes said in its report released a day early due to the US&nbsp;Thanksgiving holiday.

Oil prices fell on Thursday, extending losses from the previous session after official data showed United States crude and gasoline stocks rose against expectations and production hit a record.

Oil prices fell on Thursday, extending losses from the previous session after official data showed United States crude and gasoline stocks rose against expectations and production hit a record. Brent crude futures were down 16 cents, or 0.3 per cent, at $63.90 a barrel by 0141 GMT, having dropped 0.3 per cent on Wednesday. US West Texas Intermediate crude fell 21 cents, or 0.4 per cent, to $57.90, after falling 0.5 per cent in the previous session. Crude stockpiles in the United States swelled 1.6 million barrels last week as production hit a record high of 12.9 million barrels per day (bpd) and refinery runs slowed, the Energy Information Administration said. Analysts in a Reuters poll had forecast an inventory drop of 418,000 barrels. More bearish was a 5.1 million-barrel rise in gasoline stocks, compared with forecasts for a 1.2 million-barrel gain. Oil prices had risen earlier this week on expectations that China and the United States, the world's two biggest crude users, would soon sign a preliminary agreement, putting an end to their 16-month trade dispute. "The stock data overshadowed other supply-side issues and a general pick-up in sentiment regarding the US-China trade deal," ANZ Research said in a note. Forces based in eastern Libya said on Wednesday they had driven rival factions from the 70,000-bpd El Feel oilfield after attacking the area with airstrikes, leading to production being halted and raising some worries about supply. In the United States as well, energy services company Baker Hughes reported that US oil drillers reduced the number of drilling rigs for a record 12 months in a row. Drillers cut three oil rigs in the week to November 27, bringing the count down to 668, lowest since April 2017, Baker Hughes said in its report released a day early due to the US Thanksgiving holiday.

Oil drops as US inventory build, record output rekindles supply worries

Saudi Aramco seeks a valuation of $1.7 trillion. Saudi Aramco will not market IPO in the United States. Global oil demand peak flagged as a major risk for Aramco. Watch this video to find out more in details.

Saudi Aramco seeks valuation of $1.7 trillion

Indian Oil Corp, the country's top refiner, is in talks with oil major Rosneft to explore the possibility of importing Russian oil, its chairman Sanjiv Singh said on Tuesday.

"We have taken very small quantities from Russia in the past which cant be considered significant so we are trying to explore if we can increase the Russian crude volume coming to India...We are in discussion with Rosneft and we are hopeful that something should work," Singh told reporters at an energy conference.

Oil minister Dharmendra Pradhan said late on Monday that India is open to importing oil from Russia.

India, the world's third-biggest oil importer and consumer, ships in about 60 per cent&nbsp;of its overall crude needs from the middle eastern countries. The nation is gradually tapping new sources to hedge itself against geopolitical risks.

Indian Oil Corp, the country's top refiner, is in talks with oil major Rosneft to explore the possibility of importing Russian oil, its chairman Sanjiv Singh said on Tuesday.

Indian Oil Corp, the country's top refiner, is in talks with oil major Rosneft to explore the possibility of importing Russian oil, its chairman Sanjiv Singh said on Tuesday. "We have taken very small quantities from Russia in the past which cant be considered significant so we are trying to explore if we can increase the Russian crude volume coming to India...We are in discussion with Rosneft and we are hopeful that something should work," Singh told reporters at an energy conference. Oil minister Dharmendra Pradhan said late on Monday that India is open to importing oil from Russia. India, the world's third-biggest oil importer and consumer, ships in about 60 per cent of its overall crude needs from the middle eastern countries. The nation is gradually tapping new sources to hedge itself against geopolitical risks.

Indian Oil in talks with Rosneft to import Russian oil

All that you need to know about Saudi Aramco, the oil colossus

India will lease a quarter of its strategic petroleum reserve in Padur to Saudi Aramco to store about 4.6 million barrels of oil, a government official said on Wednesday, as New Delhi seeks global investment in its expanding energy infrastructure.

Global oil producers are eager to gain a foothold in India, where fuel demand is expected to keep rising as the country's economy grows.

Indian Strategic Petroleum Reserves Ltd, a government company charged with building oil storage, signed a memorandum of understanding with the Saudi state firm for its participation in the 2.5-million-tonne facility in Karnataka state.

"Aramco has signed an MoU for only one compartment," said HPS Ahuja, chief executive of the Indian company.

The Padur storage facility has four equal-sized compartments.

So far, Abu Dhabi National Oil Co is the only foreign company storing oil in India's strategic reserves, at Mangalore, also in Karnataka. Last year it signed a preliminary agreement to use half of the Padur reserve.

Ahuja said Aramco would have to keep some of the 4.6 million barrels for India's strategic needs, but could sell the rest to Indian refiners.

India, which relies on imports for about 80% of its oil needs, has underground emergency storage in three locations to protect against any supply disruption. The reserves can hold 36.87 million barrels.

India will lease a quarter of its strategic petroleum reserve in Padur to Saudi Aramco to store about 4.6 million barrels of oil, a government official said on Wednesday, as New Delhi seeks global investment in its expanding energy infrastructure.

India will lease a quarter of its strategic petroleum reserve in Padur to Saudi Aramco to store about 4.6 million barrels of oil, a government official said on Wednesday, as New Delhi seeks global investment in its expanding energy infrastructure. Global oil producers are eager to gain a foothold in India, where fuel demand is expected to keep rising as the country's economy grows. Indian Strategic Petroleum Reserves Ltd, a government company charged with building oil storage, signed a memorandum of understanding with the Saudi state firm for its participation in the 2.5-million-tonne facility in Karnataka state. "Aramco has signed an MoU for only one compartment," said HPS Ahuja, chief executive of the Indian company. The Padur storage facility has four equal-sized compartments. So far, Abu Dhabi National Oil Co is the only foreign company storing oil in India's strategic reserves, at Mangalore, also in Karnataka. Last year it signed a preliminary agreement to use half of the Padur reserve. Ahuja said Aramco would have to keep some of the 4.6 million barrels for India's strategic needs, but could sell the rest to Indian refiners. India, which relies on imports for about 80% of its oil needs, has underground emergency storage in three locations to protect against any supply disruption. The reserves can hold 36.87 million barrels.

Saudi Aramco to keep 4.6 million barrels of oil in Indian storage: Report

Russia's big allegation against U.S servicemen.Russian Defense ministry said that U.S exported Syrian oil .

Did U.S Smuggle Syrian Oil?

Teen activist Greta Thunberg rallied with climate change protesters in Canada's oil-rich province of Albert on Friday, as oil workers counter-protested by honking the horns of their big rigs.

"We are doing this because our future is at stake," Thunberg told crowd organisers estimated to be in the thousands, which gathered in front of the provincial legislature in Edmonton.

"We will not be bystanders. We are doing this because we want the people in power to unite behind the science."

But while many shouted their support for Thunberg, who has become the face of the fight against political inaction on global warming, counter-protesters who supported oil production travelled to the city to make their distaste for Thunberg known, blaring their horns as she spoke.

"We care for the environment, of course, we do. What they need to understand is that we're hurting and we also need to care about Alberta jobs," a counter-protester told Canadian media before joining a convoy of 50 vehicles that set out from Red Deer, Alberta for the provincial capital.

Alberta Premier Jason Kenney, speaking at the Friday opening of a new gas pipeline in the province, which holds the world's third-largest oil reserves, also had a message for Thunberg and her supporters.

"When they charged their iPhones last night, that power came from this plant," he said, pointing to the former coal-fired Keephills power plant near Edmonton that was being converted to natural gas.

"Albertans and Canadians are practical people," he said. "They like real-world solutions. Calling for the end of the modern industrial economy, advocating to put millions of people out of work... is not a real-world solution."

Alberta's energy industry is "taking bold risks, spending real money to dramatically reduce greenhouse gas and carbon emissions," he added.

The province's oil sands are the single largest source of CO2 emissions in Canada. The sector has been hotly criticized by environmental groups, while a flight of foreign investment and a lack of pipelines to new markets has strangled development.

Last month, Thunberg marched in Montreal with nearly half-a-million supporters, including Prime Minister Justin Trudeau. It was one of the largest rallies in Canadian history.

Teen activist Greta Thunberg rallied with climate change protesters in Canada's oil-rich province of Albert on Friday, as oil workers counter-protested by honking the horns of their big rigs.

Teen activist Greta Thunberg rallied with climate change protesters in Canada's oil-rich province of Albert on Friday, as oil workers counter-protested by honking the horns of their big rigs. "We are doing this because our future is at stake," Thunberg told crowd organisers estimated to be in the thousands, which gathered in front of the provincial legislature in Edmonton. "We will not be bystanders. We are doing this because we want the people in power to unite behind the science." But while many shouted their support for Thunberg, who has become the face of the fight against political inaction on global warming, counter-protesters who supported oil production travelled to the city to make their distaste for Thunberg known, blaring their horns as she spoke. "We care for the environment, of course, we do. What they need to understand is that we're hurting and we also need to care about Alberta jobs," a counter-protester told Canadian media before joining a convoy of 50 vehicles that set out from Red Deer, Alberta for the provincial capital. Alberta Premier Jason Kenney, speaking at the Friday opening of a new gas pipeline in the province, which holds the world's third-largest oil reserves, also had a message for Thunberg and her supporters. "When they charged their iPhones last night, that power came from this plant," he said, pointing to the former coal-fired Keephills power plant near Edmonton that was being converted to natural gas. "Albertans and Canadians are practical people," he said. "They like real-world solutions. Calling for the end of the modern industrial economy, advocating to put millions of people out of work... is not a real-world solution." Alberta's energy industry is "taking bold risks, spending real money to dramatically reduce greenhouse gas and carbon emissions," he added. The province's oil sands are the single largest source of CO2 emissions in Canada. The sector has been hotly criticized by environmental groups, while a flight of foreign investment and a lack of pipelines to new markets has strangled development. Last month, Thunberg marched in Montreal with nearly half-a-million supporters, including Prime Minister Justin Trudeau. It was one of the largest rallies in Canadian history.

Greta Thunberg brings her climate protest to Canada's oil patch

India is likely to face heat in the near future due to various emerging fault lines in the Gulf. While Gulf managed to ensure stability amidst the Syrian crisis in particular and Arab Spring in general, recent events in the Gulf cast doubt on the long term stability of the region.&nbsp;

In this context, the September 14 Drone attacks, reportedly&nbsp;carried out by Iranian backed Houthi guerrilla, on&nbsp; Saudi Arabia’s Abqaiq oil refinery and Khurais oil field - belonging to the state-owned Aramco - have sent ‘oil shock wave’ throughout the world.

The attacks disrupted the outflow of 5 per cent of global oil supply. While Saudi Arabia has repeatedly stated that this attack will not affect Saudi’s production of oil, however, it could not remove the feat that oil installation in Saudi Arabia, UAE and elsewhere is not free from external attacks.&nbsp;

This combines with other factors such as a series of attack on oil tankers belonging to different countries, UK-Iranian tension for seizing the private oil tanker caring the Iranian oil to Syria by UK, shooting down of US drone by the Iran, the traditional rivalry between Saudi Arabia and Iran, the continuous blockade of Qatar by the Quarter (Saudi Arabia, UAE, &nbsp;Egypt and Bahrain), the US sanction against Iran, and Yemen civil war with UAE-Saudi Arabia supporting the Yemini government in exile and Iranian backing the Houthis—all combined have made the region very vulnerable to the forces of destabilisation.&nbsp;

India is directly affected by such developments in the Gulf. India is the third-largest oil importer in the world and 83 per cent of its oil is imported from the Gulf despite its diversification of sources of hydrocarbon products. Of late, India has stopped buying oil from Iran under US pressure, which has made India more dependent on Saudi Arabia.&nbsp;

Besides, India is critically dependent on the flow of remittances from the region, which constitutes the largest share of total global remittances. Further stability in Gulf is important from the point of view of trade and investment, particularly with the UAE government. &nbsp;

Given the high-stake that India has in the stability of Gulf, the government of India&nbsp;must come up&nbsp;with a&nbsp;strategy to cope with the emerging crisis in the Gulf which may affect the uninterrupted supply of the oil or even soar the prices of  oil because of  above-enumerated reasons. Following the 1973 Oil Shock, which had disrupted the manufacturing industries of the West due to steep hike in the prices of oil  as well as the supply of oil for a few months, the West developed the capacity of storing oil for minimum six months. Earlier it was 23 days. Currently, India has a capacity to meet only about 12 days of the country’s crude oil requirement with storage facility for only 87 days.&nbsp;

Though in the event of the oil crisis, India may rely upon the USA and Nigeria, the quality of oil supplies by these countries are as good as that of Gulf apart from long-distance travel costs.  Given this situation, India needs to devise specific strategy including enhancing the storage capacity of hydrocarbon resources for at least 6 months, on par with advanced countries. &nbsp; 
 
&nbsp;(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) &nbsp;

&nbsp;

India is likely to face heat in the near future due to various emerging fault lines in the Gulf. While Gulf managed to ensure stability amidst the Syrian crisis in particular and Arab Spring in general, recent events in the Gulf cast doubt on the long term stability of the region.

India is likely to face heat in the near future due to various emerging fault lines in the Gulf. While Gulf managed to ensure stability amidst the Syrian crisis in particular and Arab Spring in general, recent events in the Gulf cast doubt on the long term stability of the region. In this context, the September 14 Drone attacks, reportedly carried out by Iranian backed Houthi guerrilla, on Saudi Arabia’s Abqaiq oil refinery and Khurais oil field - belonging to the state-owned Aramco - have sent ‘oil shock wave’ throughout the world. The attacks disrupted the outflow of 5 per cent of global oil supply. While Saudi Arabia has repeatedly stated that this attack will not affect Saudi’s production of oil, however, it could not remove the feat that oil installation in Saudi Arabia, UAE and elsewhere is not free from external attacks. This combines with other factors such as a series of attack on oil tankers belonging to different countries, UK-Iranian tension for seizing the private oil tanker caring the Iranian oil to Syria by UK, shooting down of US drone by the Iran, the traditional rivalry between Saudi Arabia and Iran, the continuous blockade of Qatar by the Quarter (Saudi Arabia, UAE, Egypt and Bahrain), the US sanction against Iran, and Yemen civil war with UAE-Saudi Arabia supporting the Yemini government in exile and Iranian backing the Houthis—all combined have made the region very vulnerable to the forces of destabilisation. India is directly affected by such developments in the Gulf. India is the third-largest oil importer in the world and 83 per cent of its oil is imported from the Gulf despite its diversification of sources of hydrocarbon products. Of late, India has stopped buying oil from Iran under US pressure, which has made India more dependent on Saudi Arabia. Besides, India is critically dependent on the flow of remittances from the region, which constitutes the largest share of total global remittances. Further stability in Gulf is important from the point of view of trade and investment, particularly with the UAE government.  Given the high-stake that India has in the stability of Gulf, the government of India must come up with a strategy to cope with the emerging crisis in the Gulf which may affect the uninterrupted supply of the oil or even soar the prices of  oil because of  above-enumerated reasons. Following the 1973 Oil Shock, which had disrupted the manufacturing industries of the West due to steep hike in the prices of oil  as well as the supply of oil for a few months, the West developed the capacity of storing oil for minimum six months. Earlier it was 23 days. Currently, India has a capacity to meet only about 12 days of the country’s crude oil requirement with storage facility for only 87 days. Though in the event of the oil crisis, India may rely upon the USA and Nigeria, the quality of oil supplies by these countries are as good as that of Gulf apart from long-distance travel costs.  Given this situation, India needs to devise specific strategy including enhancing the storage capacity of hydrocarbon resources for at least 6 months, on par with advanced countries.  (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

How does Gulf crisis affect India

Oil prices rose on Friday, although remained on track for a second consecutive weekly loss, as an increase in US&nbsp;jobs eased financial market concerns that the slowing economy was on the brink of a recession amid lingering trade tensions.

Benchmark Brent crude rose 94 cents, or 1.6 per cent, to $58.65 a barrel by 1319 GMT. US&nbsp;West Texas Intermediate (WTI) crude rose 68 cents, or 1.3 per cent, to $53.13.

However, Brent was down 5.2 per cent on the week, its lowest since mid-August, and US&nbsp;crude lost 5 per cent&nbsp;on the week, marking its biggest weekly loss since July.

"Both are on track for hefty weekly losses and it will take a brave man to bet against the bearish side," said Stephen Brennock of oil broker PVM.

"As things stand, demand and supply-side developments are anything but supportive and there can be no happy ending for those of a bullish disposition."

US&nbsp;job growth increased moderately in September, with the unemployment rate dropping to near a 50-year low of 3.5 per cent.

The report, however, came on the heels of a string of weak economic reports, including a plunge in manufacturing activity to more than a 10-year low in September and a sharp slowdown in services industry growth to levels last seen in 2016.

"The crisis in the manufacturing sector now appears to be spilling over to the previously robust services sector. This is not good news for oil demand. After all, this also reduces the demand for transport," said Carsten Fritsch, senior commodity analyst at Commerzbank.

On the supply side, Saudi Arabia's energy minister, Prince Abdulaziz bin Salman, said on Thursday the world's top crude oil exporter had <a href="https://www.wionews.com/world/saudi-arabia-restores-full-oil-output-after-attacks-focused-on-aramco-ipo-253556">fully restored oil output</a> after attacks on its facilities last month knocked out more than 5 per cent&nbsp;of global oil supply.

"That Saudi restored its production back to original capacity sooner than expected means investors had to price out raised supply risks at a faster clip than would have otherwise been the case," said Fawad Razaqzada, market analyst at futures brokerage Forex.com.

Razaqzada that weak economic data, particularly from the US&nbsp;manufacturing sector, also raised fears for oil demand, "but now that some of these factors have been priced in, oil prices may fall less sharply going forward or at best start to form a base".

France said Iran and the United States have one month to get to the negotiating table, suggesting that Tehran's plan to increase its nuclear activities in November would spark renewed tension in the region.

Oil prices rose on Friday, although remained on track for a second consecutive weekly loss, as an increase in US jobs eased financial market concerns that the slowing economy was on the brink of a recession amid lingering trade tensions.

Oil prices rose on Friday, although remained on track for a second consecutive weekly loss, as an increase in US jobs eased financial market concerns that the slowing economy was on the brink of a recession amid lingering trade tensions. Benchmark Brent crude rose 94 cents, or 1.6 per cent, to $58.65 a barrel by 1319 GMT. US West Texas Intermediate (WTI) crude rose 68 cents, or 1.3 per cent, to $53.13. However, Brent was down 5.2 per cent on the week, its lowest since mid-August, and US crude lost 5 per cent on the week, marking its biggest weekly loss since July. "Both are on track for hefty weekly losses and it will take a brave man to bet against the bearish side," said Stephen Brennock of oil broker PVM. "As things stand, demand and supply-side developments are anything but supportive and there can be no happy ending for those of a bullish disposition." US job growth increased moderately in September, with the unemployment rate dropping to near a 50-year low of 3.5 per cent. The report, however, came on the heels of a string of weak economic reports, including a plunge in manufacturing activity to more than a 10-year low in September and a sharp slowdown in services industry growth to levels last seen in 2016. "The crisis in the manufacturing sector now appears to be spilling over to the previously robust services sector. This is not good news for oil demand. After all, this also reduces the demand for transport," said Carsten Fritsch, senior commodity analyst at Commerzbank. On the supply side, Saudi Arabia's energy minister, Prince Abdulaziz bin Salman, said on Thursday the world's top crude oil exporter had fully restored oil output after attacks on its facilities last month knocked out more than 5 per cent of global oil supply. "That Saudi restored its production back to original capacity sooner than expected means investors had to price out raised supply risks at a faster clip than would have otherwise been the case," said Fawad Razaqzada, market analyst at futures brokerage Forex.com. Razaqzada that weak economic data, particularly from the US manufacturing sector, also raised fears for oil demand, "but now that some of these factors have been priced in, oil prices may fall less sharply going forward or at best start to form a base". France said Iran and the United States have one month to get to the negotiating table, suggesting that Tehran's plan to increase its nuclear activities in November would spark renewed tension in the region.

Oil rises on fall in US unemployment rate

Iran said on Monday that it is on track to create a new oil terminal on the Sea of Oman that would open a new export route for its crude and allow tankers to bypass the strategic Strait of Hormuz.

The National Iranian Oil Company signed a contract worth around $52 million Monday with three local companies to supply 50 pumps for the pipeline project, according to the Iranian oil ministry's Shana website.

The pipeline will run from Bushehr province on the Gulf to Bandar-e-Jask on the Sea of Oman, on the other side of the Strait of Hormuz.&nbsp;

"Construction of the Goreh-Jask pipeline and the crude oil export terminal at Jask Port are among the priority plans," Shana reported.

The approximately 1,000-kilometre (620-mile) pipeline will bring oil from Goreh in Bushehr to Jask, making it "strategically important as the country's second-largest crude oil export terminal," Shana reported.

According to Tehran's official IRNA news agency, Jask will export its first crude within 18 months.&nbsp;

In September 2018, Iranian President Hassan Rouhani announced "a major part" of Iran's exports would be shifted to Jask from the Kharg Island terminal -- deep in the Gulf.

He said the project would be completed by the end of his term in summer 2021.

To reach the oil terminal on Kharg Island, tankers must pass the chokepoint Strait of Hormuz -- through which most Gulf oil passes -- slowing deliveries by several days. &nbsp;&nbsp;

Iran has in the past repeatedly threatened to block the strait -- which is used by its Gulf rivals including Saudi Arabia -- when faced with sanctions on its oil exports and possible military action by the US.

Washington and Tehran came close to armed conflict in June following a military escalation in the Gulf.

Tension has grown since May 2018 when the United States withdrew from a landmark 2015 nuclear deal with Iran and reimposed sanctions aimed at stopping it from exporting oil.

Washington, Riyadh, Berlin, London and Paris blamed Iran for attacks that damaged the Saudi oil sector on September 14.

Iran said on Monday that it is on track to create a new oil terminal on the Sea of Oman that would open a new export route for its crude and allow tankers to bypass the strategic Strait of Hormuz.

Iran said on Monday that it is on track to create a new oil terminal on the Sea of Oman that would open a new export route for its crude and allow tankers to bypass the strategic Strait of Hormuz. The National Iranian Oil Company signed a contract worth around $52 million Monday with three local companies to supply 50 pumps for the pipeline project, according to the Iranian oil ministry's Shana website. The pipeline will run from Bushehr province on the Gulf to Bandar-e-Jask on the Sea of Oman, on the other side of the Strait of Hormuz. "Construction of the Goreh-Jask pipeline and the crude oil export terminal at Jask Port are among the priority plans," Shana reported. The approximately 1,000-kilometre (620-mile) pipeline will bring oil from Goreh in Bushehr to Jask, making it "strategically important as the country's second-largest crude oil export terminal," Shana reported. According to Tehran's official IRNA news agency, Jask will export its first crude within 18 months. In September 2018, Iranian President Hassan Rouhani announced "a major part" of Iran's exports would be shifted to Jask from the Kharg Island terminal -- deep in the Gulf. He said the project would be completed by the end of his term in summer 2021. To reach the oil terminal on Kharg Island, tankers must pass the chokepoint Strait of Hormuz -- through which most Gulf oil passes -- slowing deliveries by several days. Iran has in the past repeatedly threatened to block the strait -- which is used by its Gulf rivals including Saudi Arabia -- when faced with sanctions on its oil exports and possible military action by the US. Washington and Tehran came close to armed conflict in June following a military escalation in the Gulf. Tension has grown since May 2018 when the United States withdrew from a landmark 2015 nuclear deal with Iran and reimposed sanctions aimed at stopping it from exporting oil. Washington, Riyadh, Berlin, London and Paris blamed Iran for attacks that damaged the Saudi oil sector on September 14.

Iran on track to open new oil terminal outside Gulf

A huge blast on an oil tanker in a <a href="https://www.wionews.com/world/kim-jong-un-sends-missile-warning-to-south-korea-us-as-tensions-rise-241269">South Korean port</a>&nbsp;Saturday sparked a raging fire that spread to a nearby vessel, leaving 18 people injured, authorities said.

A ball of fire shot up high above the ship and thick black smoke billowed into the air, dramatic images showed. Firefighters struggled to contain the blaze and prevent it spreading, shooting streams of water up onto the deck from beside the vessel in the southeast port of Ulsan.

All 25 of those on board the Cayman Islands-flagged tanker and the 21 people on the second ship have been rescued, according to the Coast Guard.

Twelve sailors and six rescue workers were injured, Yonhap news agency said, quoting local authorities. Nine of the injured were South Korean.

The Russian vice-consul in Busan said the tanker crew comprised 10 Russians, including the captain, and none had been seriously injured.

"Some received medical help on the spot, but no Russian has been hospitalised," said Evgeny Evdokimov, quoted by the Russian news agency Tass.

"There were no repairs or loading operations underway on the ship at the time of the explosion. It is obviously something in the cargo that caused the explosion and the fire," he said.

The Coast Guard said the cause of the blast was <a href="https://www.wionews.com/world/south-koreas-acquisition-of-us-f-35-fighter-aimed-at-opening-gate-to-invade-north-north-korea-state-media-234830">being investigated</a>.

A huge blast on an oil tanker in a South Korean port Saturday sparked a raging fire that spread to a nearby vessel, leaving 18 people injured, authorities said. A ball of fire shot up high above the ship and thick black smoke billowed into the air, dramatic images showed.

A huge blast on an oil tanker in a South Korean port Saturday sparked a raging fire that spread to a nearby vessel, leaving 18 people injured, authorities said. A ball of fire shot up high above the ship and thick black smoke billowed into the air, dramatic images showed. Firefighters struggled to contain the blaze and prevent it spreading, shooting streams of water up onto the deck from beside the vessel in the southeast port of Ulsan. All 25 of those on board the Cayman Islands-flagged tanker and the 21 people on the second ship have been rescued, according to the Coast Guard. Twelve sailors and six rescue workers were injured, Yonhap news agency said, quoting local authorities. Nine of the injured were South Korean. The Russian vice-consul in Busan said the tanker crew comprised 10 Russians, including the captain, and none had been seriously injured. "Some received medical help on the spot, but no Russian has been hospitalised," said Evgeny Evdokimov, quoted by the Russian news agency Tass. "There were no repairs or loading operations underway on the ship at the time of the explosion. It is obviously something in the cargo that caused the explosion and the fire," he said. The Coast Guard said the cause of the blast was being investigated.

Fire on oil tankers at South Korean port injures eighteen

With a hike of Rs 0.29, the price of petrol on Monday jumped to Rs 73.91 in the National Capital Region.

Earlier, petrol was being sold at Rs 73.62 in Delhi.

The oil prices surged by more&nbsp;than 15 per cent to their highest level in nearly four months after an attack on Saudi Arabia's oil facilities that knocked out more than five per cent of the global oil supply.

However, Petroleum Minister Dharmendra Pradhan had explicitly said that there will be no effects on oil distribution and supply in the country following attacks on the Oil Stabilisation Centres of Saudi oil giant Aramco.

"It is unfortunate that the oil stabilisation centres of Aramco have been attacked. Following the attacks, top executives of Aramco have been contacted. Indian Ambassador in Riyadh contacted the senior management of Aramco to ensure a steady supply to India," Pradhan had said.

"We have reviewed our overall crude oil supplies for the month of September with our Oil Marketing Companies (OMCs). We are confident there would be no supply disruption to India. We are closely monitoring the evolving situation," he added.

With a hike of Rs 0.29, the price of petrol on Monday jumped to Rs 73.91 in the National Capital Region. Earlier, petrol was being sold at Rs 73.62 in Delhi. The oil prices surged by more than 15 per cent to their highest level in nearly four months after an attack on Saudi Arabia's oil facilities that knocked out more than five per cent of the global oil supply.

With a hike of Rs 0.29, the price of petrol on Monday jumped to Rs 73.91 in the National Capital Region. Earlier, petrol was being sold at Rs 73.62 in Delhi. The oil prices surged by more than 15 per cent to their highest level in nearly four months after an attack on Saudi Arabia's oil facilities that knocked out more than five per cent of the global oil supply. However, Petroleum Minister Dharmendra Pradhan had explicitly said that there will be no effects on oil distribution and supply in the country following attacks on the Oil Stabilisation Centres of Saudi oil giant Aramco. "It is unfortunate that the oil stabilisation centres of Aramco have been attacked. Following the attacks, top executives of Aramco have been contacted. Indian Ambassador in Riyadh contacted the senior management of Aramco to ensure a steady supply to India," Pradhan had said. "We have reviewed our overall crude oil supplies for the month of September with our Oil Marketing Companies (OMCs). We are confident there would be no supply disruption to India. We are closely monitoring the evolving situation," he added.

Petrol price up by Rs 0.29 in Delhi

British Prime Minister Boris Johnson accused Tehran of being behind attacks on Saudi oil installations, in remarks to reporters en route to New York where he will meet&nbsp;Iran's president.

"I can tell you that the UK is attributing responsibility with a very high degree of probability to Iran for the Aramco attacks," he said, cited by Britain's Press Association news agency on Monday.

He is due to meet with Iranian President Hassan Rouhani at the UN General Assembly in New York.

He will also discuss the <a href="https://www.wionews.com/world/mike-pompeo-says-abundantly-clear-iran-was-behind-saudi-oil-attacks-250674">attacks </a>at a joint meeting with French President Emmanuel Macron and German Chancellor Angela Merkel.

"We think it very likely indeed that Iran was indeed responsible for using both UAVs (unmanned aerial vehicles), both drones and cruise missiles," Johnson told reporters.

"Clearly the difficulty is, how do we organise a global response? What is the way forward? And we will be working with our American friends and our European friends to construct a response that tries to de-escalate tensions in the Gulf region", he added.

The United States has accused <a href="https://www.wionews.com/world/iran-may-release-british-flagged-tanker-within-hours-swedish-owner-251217">Tehran</a> of carrying out air attacks on Saudi Arabia's Abqaiq plant and the Khurais oil field on September 14, knocking out half the kingdom's oil production.

Iran denies responsibility for the attacks which were claimed by <a href="https://www.wionews.com/world/iran-to-present-plan-for-gulf-security-at-un-this-week-251202">Iranian-backed </a>Huthi rebels in Yemen.

Johnson said,&nbsp;"clearly if we are asked either by the Saudis or the Americans to have a role then we would consider in what way we could be useful."

The British premier also said he would raise the case of Nazanin Zaghari-Ratcliffe, a British-Iranian mother held in Tehran since 2016, when he meets with Rouhani.

Johnson has been accused of making her plight worse when, in a previous job as foreign minister, he said she had been training journalists in Iran before she was arrested for sedition.

Her family strongly denies this and he swiftly backtracked. Zaghari-Ratcliffe, a project manager with the Thomson Reuters Foundation, the media group's philanthropic arm, denies all charges.

British Prime Minister Boris Johnson accused Tehran of being behind attacks on Saudi oil installations, in remarks to reporters en route to New York where he will meet Iran's president.

British Prime Minister Boris Johnson accused Tehran of being behind attacks on Saudi oil installations, in remarks to reporters en route to New York where he will meet Iran's president. "I can tell you that the UK is attributing responsibility with a very high degree of probability to Iran for the Aramco attacks," he said, cited by Britain's Press Association news agency on Monday. He is due to meet with Iranian President Hassan Rouhani at the UN General Assembly in New York. He will also discuss the attacks at a joint meeting with French President Emmanuel Macron and German Chancellor Angela Merkel. "We think it very likely indeed that Iran was indeed responsible for using both UAVs (unmanned aerial vehicles), both drones and cruise missiles," Johnson told reporters. "Clearly the difficulty is, how do we organise a global response? What is the way forward? And we will be working with our American friends and our European friends to construct a response that tries to de-escalate tensions in the Gulf region", he added. The United States has accused Tehran of carrying out air attacks on Saudi Arabia's Abqaiq plant and the Khurais oil field on September 14, knocking out half the kingdom's oil production. Iran denies responsibility for the attacks which were claimed by Iranian-backed Huthi rebels in Yemen. Johnson said, "clearly if we are asked either by the Saudis or the Americans to have a role then we would consider in what way we could be useful." The British premier also said he would raise the case of Nazanin Zaghari-Ratcliffe, a British-Iranian mother held in Tehran since 2016, when he meets with Rouhani. Johnson has been accused of making her plight worse when, in a previous job as foreign minister, he said she had been training journalists in Iran before she was arrested for sedition. Her family strongly denies this and he swiftly backtracked. Zaghari-Ratcliffe, a project manager with the Thomson Reuters Foundation, the media group's philanthropic arm, denies all charges.

Iran behind attacks on Saudi oil sites: UK Prime Minister Boris Johnson

Kuwait has raised the security alert level at all of its ports, including the oil terminals, the state-run Kuwait News Agency reported on Friday, citing a decision by Trade and Industry Minister Khaled Al-Roudhan.

"The decision emphasises that all measures have to be taken to protect the vessels and the ports facilities," it said.

The announcement comes after two important oil production facilities in neighboring <a href="https://www.wionews.com/world/mike-pompeo-says-abundantly-clear-iran-was-behind-saudi-oil-attacks-250674">Saudi Arabia were hit by drones</a> and missiles on September 14, curtailing the crude output of the world's top oil exporter.

Yemen's Houthi group claimed the attacks but a US&nbsp;official said they originated from southwestern Iran. Tehran, which support the Houthis, denied any involvement in the attacks.

Kuwait has raised the security alert level at all of its ports, including the oil terminals, the state-run Kuwait News Agency reported on Friday, citing a decision by Trade and Industry Minister Khaled Al-Roudhan.

Kuwait has raised the security alert level at all of its ports, including the oil terminals, the state-run Kuwait News Agency reported on Friday, citing a decision by Trade and Industry Minister Khaled Al-Roudhan. "The decision emphasises that all measures have to be taken to protect the vessels and the ports facilities," it said. The announcement comes after two important oil production facilities in neighboring Saudi Arabia were hit by drones and missiles on September 14, curtailing the crude output of the world's top oil exporter. Yemen's Houthi group claimed the attacks but a US official said they originated from southwestern Iran. Tehran, which support the Houthis, denied any involvement in the attacks.

Kuwait raises security alert level at oil and commercial ports: State media

Oil shed some of its massive gains on Tuesday (September 17) as the United States flagged the possible release of crude reserves, but the threat of military action over the attacks on Saudi oil facilities kept prices elevated and stocks under pressure.

Oil falls more than 1% as market awaits response to Saudi oil attacks

Saudi Arabia is involved in several proxy wars in the region and continues to make a mockery of rights.

But even then, countries like the US, which have been directly affected by the terror exports from Saudi, continue to support Saudi Arabia.

The reason is oil and Saudi Arabia has loads of it. Simply put - it's Petro-Islam.

So, how long will Saudi Arabia get a free pass and a pat on the back for being the breeding ground of terrorism?

There is no clear answer because the world runs on oil. On Wion Edit, we discuss the need to find alternatives for oil.

Importers cannot continue to face supply disruption due to the crisis in West Asia.

Countries like India have diversified their oil procurement in an attempt to stay insulated from supply issues. But that's at best - a stop-gap solution.

If you look at the oil producers, with the exception of the US and Russia, most countries are facing turmoil.

Venezuela, Nigeria, Iran, Iraq, Qatar and now Saudi Arabia. All these countries face threats of terrorism.

And this will only intensify and&nbsp;lead to more disputes over this crucial commodity. Depending on crude, therefore, is an economic risk in the medium to long term.

Several countries are moving towards generating power entirely through renewable energy sources. Countries like Denmark, Iceland, Sweden, Nicaragua, Germany are well on course to achieving independence from oil.

That means that these countries need not worry about political disruptions in countries like Saudi Arabia.

Besides&nbsp;this, the transition is cost-effective too.

Over the last few years, India has come a long way in its push for renewable energy. Right now, the share of renewable energy in India is above 20 per cent. The government should continue this transition more aggressively.

This will help India escape the wrath of OPEC cartel.&nbsp;

The sooner&nbsp;countries find alternatives to oil, the better it will be for economic autonomy. Besides, it will help in ending the many conflicts in West Asia.

The only way to end the radical Petro-Islam is to achieve independence from oil. 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Saudi Arabia is involved in several proxy wars in the region and continues to make a mockery of rights. But even then, countries like the US, which have been directly affected by the terror exports from Saudi, continue to support Saudi Arabia.

Saudi Arabia is involved in several proxy wars in the region and continues to make a mockery of rights. But even then, countries like the US, which have been directly affected by the terror exports from Saudi, continue to support Saudi Arabia. The reason is oil and Saudi Arabia has loads of it. Simply put - it's Petro-Islam. So, how long will Saudi Arabia get a free pass and a pat on the back for being the breeding ground of terrorism? There is no clear answer because the world runs on oil. On Wion Edit, we discuss the need to find alternatives for oil. Importers cannot continue to face supply disruption due to the crisis in West Asia. Countries like India have diversified their oil procurement in an attempt to stay insulated from supply issues. But that's at best - a stop-gap solution. If you look at the oil producers, with the exception of the US and Russia, most countries are facing turmoil. Venezuela, Nigeria, Iran, Iraq, Qatar and now Saudi Arabia. All these countries face threats of terrorism. And this will only intensify and lead to more disputes over this crucial commodity. Depending on crude, therefore, is an economic risk in the medium to long term. Several countries are moving towards generating power entirely through renewable energy sources. Countries like Denmark, Iceland, Sweden, Nicaragua, Germany are well on course to achieving independence from oil. That means that these countries need not worry about political disruptions in countries like Saudi Arabia. Besides this, the transition is cost-effective too. Over the last few years, India has come a long way in its push for renewable energy. Right now, the share of renewable energy in India is above 20 per cent. The government should continue this transition more aggressively. This will help India escape the wrath of OPEC cartel. The sooner countries find alternatives to oil, the better it will be for economic autonomy. Besides, it will help in ending the many conflicts in West Asia. The only way to end the radical Petro-Islam is to achieve independence from oil. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

WION Edit: Achieving independence from oil

Saudi&nbsp;Aramco's&nbsp;trading&nbsp;arm&nbsp;is looking for oil&nbsp;products&nbsp;for prompt delivery&nbsp;after&nbsp;Saturday's&nbsp;attacks&nbsp;on&nbsp;<a href="https://www.wionews.com/world/dont-need-middle-east-oil-gas-but-will-help-our-allies-says-trump-after-attacks-on-saudi-arabias-aramco-250005">Saudi oil facilities</a>, several trade&nbsp;sources&nbsp;said this week.

<a href="https://www.wionews.com/world/saudi-arabia-shuts-pipeline-to-bahrain-after-aramco-attacks-sources-250013">Saudi&nbsp;Arabia</a> is set to become a significant buyer of&nbsp;refined&nbsp;products&nbsp;after&nbsp;the&nbsp;attacks&nbsp;forced it to shut down more than half of its crude oil output and some of its gas, consultancy Energy Aspects said in a note on Sunday.

The&nbsp;attacks&nbsp;may have curtailed as much as 1 million barrels per day (bpd) of&nbsp;Aramco's refining capacity, Energy Aspects said, although this could not be confirmed and it was not clear to which&nbsp;Saudi&nbsp;Aramco&nbsp;refineries it was referring.

<a href="https://www.wionews.com/business-economy/international-oil-prices-surge-nearly-20-after-attack-on-saudi-oil-facilities-249978">Aramco&nbsp;Trading&nbsp;Company</a> (ATC), the&nbsp;trading&nbsp;arm&nbsp;of&nbsp;Saudi&nbsp;Aramco, is making enquiries to buy diesel for the prompt delivery, two of the trade&nbsp;sources&nbsp;said.

Saudi&nbsp;Arabia is typically a net exporter of diesel.

"They are looking (for oil&nbsp;products) since they are trimming runs at some of the refineries," one source said, declining to be named as he was not authorised to speak to media.

He said the total volumes sought by&nbsp;Saudi&nbsp;Arabia were not immediately clear, but that the prompt derivatives market was&nbsp;trading&nbsp;higher on Monday.

ATC is seeking 10 parts-per-million (ppm) sulphur diesel through private discussions, asking for "anything prompt," a second trader said.

It is also seeking 500ppm sulphur gasoil for delivery into the Arabian Gulf, most likely for domestic use, said a third source, in the refining industry.

Brent crude futures, the international benchmark, rose by as much as 19.5 per cent&nbsp;to $71.95 per barrel during early Asian&nbsp;trading&nbsp;hours.

A fourth&nbsp;trading&nbsp;source said&nbsp;Aramco&nbsp;Trading&nbsp;may have bought two ultra-low sulphur diesel cargoes from India and the Middle East, although this could not be confirmed immediately and further details were not available.

"The issue for&nbsp;Aramco&nbsp;is how they can meet their huge commitments to deliver&nbsp;products&nbsp;in September and October," another diesel trader said.

The trader, who is expecting a delivery of a&nbsp;Saudi&nbsp;diesel cargo at the end of the month, said they have not yet heard any notifications of changes from&nbsp;Aramco.

An ATC official declined to comment on the matter.

"Tightness in ultra-low-sulfur diesel will be magnified especially since the new&nbsp;Saudi&nbsp;export refineries produce 40 to 45 per cent&nbsp;low sulfur diesel," Gary Ross, founder of Black Gold Investors, told Reuters.

Saudi Aramco's trading arm is looking for oil products for prompt delivery after Saturday's attacks on Saudi oil facilities, several trade sources said this week.

Saudi Aramco's trading arm is looking for oil products for prompt delivery after Saturday's attacks on Saudi oil facilities, several trade sources said this week. Saudi Arabia is set to become a significant buyer of refined products after the attacks forced it to shut down more than half of its crude oil output and some of its gas, consultancy Energy Aspects said in a note on Sunday. The attacks may have curtailed as much as 1 million barrels per day (bpd) of Aramco's refining capacity, Energy Aspects said, although this could not be confirmed and it was not clear to which Saudi Aramco refineries it was referring. Aramco Trading Company (ATC), the trading arm of Saudi Aramco, is making enquiries to buy diesel for the prompt delivery, two of the trade sources said. Saudi Arabia is typically a net exporter of diesel. "They are looking (for oil products) since they are trimming runs at some of the refineries," one source said, declining to be named as he was not authorised to speak to media. He said the total volumes sought by Saudi Arabia were not immediately clear, but that the prompt derivatives market was trading higher on Monday. ATC is seeking 10 parts-per-million (ppm) sulphur diesel through private discussions, asking for "anything prompt," a second trader said. It is also seeking 500ppm sulphur gasoil for delivery into the Arabian Gulf, most likely for domestic use, said a third source, in the refining industry. Brent crude futures, the international benchmark, rose by as much as 19.5 per cent to $71.95 per barrel during early Asian trading hours. A fourth trading source said Aramco Trading may have bought two ultra-low sulphur diesel cargoes from India and the Middle East, although this could not be confirmed immediately and further details were not available. "The issue for Aramco is how they can meet their huge commitments to deliver products in September and October," another diesel trader said. The trader, who is expecting a delivery of a Saudi diesel cargo at the end of the month, said they have not yet heard any notifications of changes from Aramco. An ATC official declined to comment on the matter. "Tightness in ultra-low-sulfur diesel will be magnified especially since the new Saudi export refineries produce 40 to 45 per cent low sulfur diesel," Gary Ross, founder of Black Gold Investors, told Reuters.

Saudi Aramco trading arm wants refined products after attacks: sources

Oil shed some of its massive gains on Tuesday (September 17) as the <a href="https://www.wionews.com/world/dont-need-middle-east-oil-gas-but-will-help-our-allies-says-trump-after-attacks-on-saudi-arabias-aramco-250005">United States</a> flagged the possible release of crude reserves, but the threat of military action over the <a href="https://www.wionews.com/business-economy/international-oil-prices-surge-nearly-20-after-attack-on-saudi-oil-facilities-249978">attacks on Saudi oil</a> facilities kept prices elevated and stocks under pressure.

While equity market losses have not been large, shaky investor confidence continued to support safe-haven assets, with gold edging higher on Tuesday and Treasury prices rising.

Investors otherwise broadly remained on the sidelines ahead of an expected interest rate cut from the US&nbsp;Federal Reserve on Wednesday (September 18) and the next round of <a href="https://www.wionews.com/world/iran-dismisses-us-claim-it-was-behind-saudi-oil-attacks-says-ready-for-war-249810">US</a>-China trade talks on Thursday.

The benchmark Nikkei average added 0.2 per cent&nbsp;to 22,021.86 in mid-morning trade to mark its highest level since May 7, as soaring oil prices triggered by attacks on Saudi oil facilities boosted oil and gas-related companies.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.6 per&nbsp;cent.

Chinese shares fell 0.85 per cent, while Australian shares were down 0.27 per cent.

Brent crude, the international benchmark, fell 1.78 per cent to&nbsp;$67.79 per barrel in Asia on Tuesday.

On Monday Brent surged by 14.6 per cent for&nbsp;its biggest one-day percentage gain since at least 1988.

Saturday's attack on Saudi oil facilities has halved the kingdom's oil output, creating the biggest disruption to global oil supplies in absolute terms since the overthrow of the Iranian Shah in 1979, International Energy Agency data show.

In South Korea, stocks opened slightly lower with the Korea Composite Stock Price Index (KOSPI) down 3.14 points or 0.15 per cent to 2,059.08 points as of 0200 GMT.

China stocks fell on Tuesday as Beijing kept a key money rate unchanged even as recent readings pointed to further downward pressure on the world's second-largest economy.

In Hong Kong, stocks extended falls after credit rating agency Moody's downgraded the island city's outlook.

The Hang Seng index dropped 1.0 per cent, to 26,849.72, while the Hong Kong China Enterprises Index lost 1.0 per cent, to 10,520.42.

Oil shed some of its massive gains on Tuesday (September 17) as the United States flagged the possible release of crude reserves, but the threat of military action over the attacks on Saudi oil facilities kept prices elevated and stocks under pressure. While equity market losses have not been large, shaky investor confidence continued to support safe-haven assets, with gold edging higher on Tuesday and Treasury prices rising. Investors otherwise broadly remained on the sidelines ahead of an expected interest rate cut from the US Federal Reserve on Wednesday (September 18) and the next round of US-China trade talks on Thursday. The benchmark Nikkei average added 0.2 per cent to 22,021.86 in mid-morning trade to mark its highest level since May 7, as soaring oil prices triggered by attacks on Saudi oil facilities boosted oil and gas-related companies. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.6 per cent. Chinese shares fell 0.85 per cent, while Australian shares were down 0.27 per cent. Brent crude, the international benchmark, fell 1.78 per cent to $67.79 per barrel in Asia on Tuesday. On Monday Brent surged by 14.6 per cent for its biggest one-day percentage gain since at least 1988. Saturday's attack on Saudi oil facilities has halved the kingdom's oil output, creating the biggest disruption to global oil supplies in absolute terms since the overthrow of the Iranian Shah in 1979, International Energy Agency data show. In South Korea, stocks opened slightly lower with the Korea Composite Stock Price Index (KOSPI) down 3.14 points or 0.15 per cent to 2,059.08 points as of 0200 GMT. China stocks fell on Tuesday as Beijing kept a key money rate unchanged even as recent readings pointed to further downward pressure on the world's second-largest economy. In Hong Kong, stocks extended falls after credit rating agency Moody's downgraded the island city's outlook. The Hang Seng index dropped 1.0 per cent, to 26,849.72, while the Hong Kong China Enterprises Index lost 1.0 per cent, to 10,520.42.

Oil falls more than 1 per cent as market awaits response to Saudi oil attacks

This segment of WION brings to you top stories of the morning from across the globe. Watch this video to get updated with the latest information.

WION Speed News: Watch top national and international news of the morning - September 17th, 2019

For a developing country like India, oil is the lifeline. So will the decision to stop buying Iranian oil hurt India?

On WION Edit, let's look at what this development means for India's policymaking.

One, India did not dump Iran just like that, Saudi Arabia had assured India of steady oil supply before the government decided to stop relying on Iranian crude.

Two, India has found other countries to buy crude oil from. The US itself is just one of the many countries India buys oil from. Crude imports from Nigeria as well as UAE have increased significantly in the last year.

So, is this a test of strategic autonomy?

It is. India has chosen to diversify its partners. This was aimed at achieving autonomy.

Watch: Saudi Aramco oil attacks: Impact on Indian economy

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While some critics view the decision to side with the US as a mistake, it's important to remember that the Narendra Modi government had a few alternative choices.

The crude-exporting countries look at their profit margins and that impacts importers like India. That's why India chose to increase its imports from the US.

The tensions between the US And Iran did not help matters too. It would have been difficult for New Delhi to transact with Tehran and Washington simultaneously.

While India views its bilateral relationships with other countries independent of the regional conflicts in West Asia, New Delhi cannot afford to jeopardise ties with the US.

So will this decision prove right or will it land the economy in trouble?&nbsp;

If the remarks of the Oil Minister is anything to go by, India will not be affected in the immediate future.

But if tensions escalate, the Indian government would be forced to increase imports from other countries.&nbsp;

And that's where the US could come in handy.&nbsp;

But the timing of the drone strikes is a cause for concern. Global oil prices surged the most on record after a drone strike on a Saudi Arabian oil facility removed about 5 per cent of global supplies.

The whole global economy is going through a rough phase. India is also seeing the repercussions. A significant rise in crude oil prices may exacerbate the pain on the supply side as well.

New Delhi will need to watch out for the developments over the next few weeks and take immediate measures to compensate for any supply shortage.

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) 
&nbsp;

For a developing country like India, oil is the lifeline. So will the decision to stop buying Iranian oil hurt India? On WION Edit, let's look at what this development means for India's policymaking.

For a developing country like India, oil is the lifeline. So will the decision to stop buying Iranian oil hurt India? On WION Edit, let's look at what this development means for India's policymaking. One, India did not dump Iran just like that, Saudi Arabia had assured India of steady oil supply before the government decided to stop relying on Iranian crude. Two, India has found other countries to buy crude oil from. The US itself is just one of the many countries India buys oil from. Crude imports from Nigeria as well as UAE have increased significantly in the last year. So, is this a test of strategic autonomy? It is. India has chosen to diversify its partners. This was aimed at achieving autonomy. Watch: Saudi Aramco oil attacks: Impact on Indian economy × While some critics view the decision to side with the US as a mistake, it's important to remember that the Narendra Modi government had a few alternative choices. The crude-exporting countries look at their profit margins and that impacts importers like India. That's why India chose to increase its imports from the US. The tensions between the US And Iran did not help matters too. It would have been difficult for New Delhi to transact with Tehran and Washington simultaneously. While India views its bilateral relationships with other countries independent of the regional conflicts in West Asia, New Delhi cannot afford to jeopardise ties with the US. So will this decision prove right or will it land the economy in trouble? If the remarks of the Oil Minister is anything to go by, India will not be affected in the immediate future. But if tensions escalate, the Indian government would be forced to increase imports from other countries. And that's where the US could come in handy. But the timing of the drone strikes is a cause for concern. Global oil prices surged the most on record after a drone strike on a Saudi Arabian oil facility removed about 5 per cent of global supplies. The whole global economy is going through a rough phase. India is also seeing the repercussions. A significant rise in crude oil prices may exacerbate the pain on the supply side as well. New Delhi will need to watch out for the developments over the next few weeks and take immediate measures to compensate for any supply shortage. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

WION Edit: Oil's not well

Oil prices surged more than 10 per cent Monday after <a href="https://www.wionews.com/world/saudi-races-to-restore-oil-supply-after-strike-blamed-on-iran-249851">attacks on two Saudi Arabian plants that slashed output</a> in the world's top producer by half, with <a href="https://www.wionews.com/world/iran-dismisses-us-claim-it-was-behind-saudi-oil-attacks-says-ready-for-war-249810">Donald Trump blaming Iran </a>and raising the possibility of a military strike on the country.

West Texas Intermediate jumped 10.68 per cent to $60.71 and Brent climbed 11.77 per cent to $67.31 in early Asia trading following the blasts at facilities run by state-owned giant Aramco.

The attack by Tehran-backed Huthi rebels in neighbouring Yemen, where a Saudi-led coalition is bogged down in a five-year war, effectively shut down six per cent of the global oil supply.

Brent soared almost 20 per cent at one point on Monday, while WTI surged around 15 per cent before paring the gains.

Trump said Sunday the US was "locked and loaded" to respond to the attack, while Secretary of State Mike Pompeo said,&nbsp;"The United States will work with our partners and allies to ensure that energy markets remain well supplied and Iran is held accountable for its aggression."

Tehran denies the accusations but the news has revived fears of a conflict in the tinderbox Middle East after a series of attacks on oil tankers earlier this year that were also blamed on Iran.

"Tensions in the Middle East are rising quickly, meaning this story will continue to reverberate this week even after the knee-jerk panic in oil markets this morning," said Jeffrey Halley, senior market analyst at OANDA.

Oil prices surged more than 10 per cent Monday after attacks on two Saudi Arabian plants that slashed output in the world's top producer by half, with Donald Trump blaming Iran and raising the possibility of a military strike on the country.

Oil prices surged more than 10 per cent Monday after attacks on two Saudi Arabian plants that slashed output in the world's top producer by half, with Donald Trump blaming Iran and raising the possibility of a military strike on the country. West Texas Intermediate jumped 10.68 per cent to $60.71 and Brent climbed 11.77 per cent to $67.31 in early Asia trading following the blasts at facilities run by state-owned giant Aramco. The attack by Tehran-backed Huthi rebels in neighbouring Yemen, where a Saudi-led coalition is bogged down in a five-year war, effectively shut down six per cent of the global oil supply. Brent soared almost 20 per cent at one point on Monday, while WTI surged around 15 per cent before paring the gains. Trump said Sunday the US was "locked and loaded" to respond to the attack, while Secretary of State Mike Pompeo said, "The United States will work with our partners and allies to ensure that energy markets remain well supplied and Iran is held accountable for its aggression." Tehran denies the accusations but the news has revived fears of a conflict in the tinderbox Middle East after a series of attacks on oil tankers earlier this year that were also blamed on Iran. "Tensions in the Middle East are rising quickly, meaning this story will continue to reverberate this week even after the knee-jerk panic in oil markets this morning," said Jeffrey Halley, senior market analyst at OANDA.

Oil prices soar more than 10% after attacks on two Saudi plants

President Donald Trump said Sunday the US is "locked and loaded" to respond to attacks on Saudi oil infrastructure that <a href="https://www.wionews.com/world/iran-dismisses-us-claim-it-was-behind-saudi-oil-attacks-says-ready-for-war-249810">Washington blamed on Iran</a>, which have sent<a href="https://www.wionews.com/world/saudi-races-to-restore-oil-supply-after-strike-blamed-on-iran-249851"> oil prices soaring</a>.

It is the first time the president has hinted at a potential American military response to the drone attacks, which slashed Saudi oil production by half and led both the kingdom and the United States to announce they may tap their strategic reserves.

"Saudi Arabia oil supply was attacked. There is reason to believe that we know the culprit, are locked and loaded depending on verification, but are waiting to hear from the Kingdom as to who they believe was the cause of this attack, and under what terms we would proceed!" Trump tweeted.

The Tehran-backed Huthi rebels in Yemen, where a Saudi-led coalition is bogged down in a five-year war, claimed Saturday's strikes on two plants owned by state energy giant Aramco.

But US Secretary of State Mike Pompeo pointed the finger squarely at Tehran, saying there was no evidence the "unprecedented attack on the world's energy supply" was launched from Yemen.

"The United States will work with our partners and allies to ensure that energy markets remain well supplied and Iran is held accountable for its aggression," the top US diplomat said.

That drew an angry response from Tehran, where foreign ministry spokesman Abbas Mousavi said: "Such fruitless and blind accusations and remarks are incomprehensible and meaningless."

The remarks were designed to damage Iran's reputation and provide a pretext for "future actions" against the Islamic republic, he added.

Baghdad, caught between its two main allies -- Tehran and Washington -- also denied any link to the attacks amid media speculation that the drones were launched from Iraq.

Saudi de facto ruler Crown Prince Mohammed bin Salman has said the kingdom is "willing and able" to respond to this "terrorist aggression."

But a tit-for-tat strike on Iranian oil fields is "highly unlikely," Middle East expert James Dorsey told AFP.

"The Saudis do not want an open conflict with Iran. The Saudis would like others to fight that war, and the others are reluctant," said Dorsey, from the S. Rajaratnam School of International Studies in Singapore.

'Genie is out of the bottle'

Oil prices soared by 10 per cent in early Asia trading on Monday, while Saudi Arabia focused on restoring production at the plants.

Saturday's explosions set off fires that engulfed the Abqaiq plant, the world's largest oil processing facility, and nearby Khurais, which hosts a massive oil field.

Saudi's energy infrastructure has been hit by the Huthis many times before, but this strike was of a different order, abruptly halting 5.7 million barrels per day (bpd) or about six per cent of the world's oil supply.

"The genie is out of the bottle," said Bill Farren-Price, director of the London-based RS Energy Group.

"It is now clear that Saudi and other Gulf oil facilities are vulnerable to this kind of attack, which means that the geopolitical risk premium for oil needs to rise."

No casualties were reported but the full extent of the damage was not clear.

Aramco also said it will dip into its reserves to offset the disruption. On Saturday, CEO Amin Nasser said that "work is underway" to restore production, but the incident could affect investor confidence ahead of Aramco's stock market debut.

A significant volume of oil production can be restored within days but the company would need weeks to reach full output again, Bloomberg News reported Sunday, citing unnamed sources.

Trump tweeted that he had "authorized the release of oil from the Strategic Petroleum Reserve, if needed, in a to-be-determined amount" that is "sufficient to keep the markets well-supplied."

The president also "informed all appropriate agencies to expedite approvals of the oil pipelines currently in the permitting process in Texas and various other States," without naming specific projects.

Loggerheads

Following a phone call between Trump and Prince Mohammed, the White House condemned the attacks on "infrastructure vital to the global economy."

Tehran and Washington have been at loggerheads since May last year, when Trump pulled the US out of a landmark 2015 deal with world powers that promised Iran relief from sanctions in return for curbs on its nuclear program.

Despite the US accusation, the White House said on Sunday Trump may still meet his Iranian counterpart Hassan Rouhani at the upcoming United Nations assembly.

Saudi Arabia has spent billions on military hardware but recent events have underscored the vulnerability of its infrastructure to attack.

The Huthis have staged repeated cross-border missile and drone attacks targeting Saudi air bases and other facilities in what they say is retaliation for the Riyadh-led bombing campaign on rebel-held areas in Yemen. 
&nbsp;

President Donald Trump said Sunday the US is "locked and loaded" to respond to attacks on Saudi oil infrastructure that Washington blamed on Iran, which have sent oil prices soaring.

President Donald Trump said Sunday the US is "locked and loaded" to respond to attacks on Saudi oil infrastructure that Washington blamed on Iran, which have sent oil prices soaring. It is the first time the president has hinted at a potential American military response to the drone attacks, which slashed Saudi oil production by half and led both the kingdom and the United States to announce they may tap their strategic reserves. "Saudi Arabia oil supply was attacked. There is reason to believe that we know the culprit, are locked and loaded depending on verification, but are waiting to hear from the Kingdom as to who they believe was the cause of this attack, and under what terms we would proceed!" Trump tweeted. The Tehran-backed Huthi rebels in Yemen, where a Saudi-led coalition is bogged down in a five-year war, claimed Saturday's strikes on two plants owned by state energy giant Aramco. But US Secretary of State Mike Pompeo pointed the finger squarely at Tehran, saying there was no evidence the "unprecedented attack on the world's energy supply" was launched from Yemen. "The United States will work with our partners and allies to ensure that energy markets remain well supplied and Iran is held accountable for its aggression," the top US diplomat said. That drew an angry response from Tehran, where foreign ministry spokesman Abbas Mousavi said: "Such fruitless and blind accusations and remarks are incomprehensible and meaningless." The remarks were designed to damage Iran's reputation and provide a pretext for "future actions" against the Islamic republic, he added. Baghdad, caught between its two main allies -- Tehran and Washington -- also denied any link to the attacks amid media speculation that the drones were launched from Iraq. Saudi de facto ruler Crown Prince Mohammed bin Salman has said the kingdom is "willing and able" to respond to this "terrorist aggression." But a tit-for-tat strike on Iranian oil fields is "highly unlikely," Middle East expert James Dorsey told AFP. "The Saudis do not want an open conflict with Iran. The Saudis would like others to fight that war, and the others are reluctant," said Dorsey, from the S. Rajaratnam School of International Studies in Singapore. 'Genie is out of the bottle' Oil prices soared by 10 per cent in early Asia trading on Monday, while Saudi Arabia focused on restoring production at the plants. Saturday's explosions set off fires that engulfed the Abqaiq plant, the world's largest oil processing facility, and nearby Khurais, which hosts a massive oil field. Saudi's energy infrastructure has been hit by the Huthis many times before, but this strike was of a different order, abruptly halting 5.7 million barrels per day (bpd) or about six per cent of the world's oil supply. "The genie is out of the bottle," said Bill Farren-Price, director of the London-based RS Energy Group. "It is now clear that Saudi and other Gulf oil facilities are vulnerable to this kind of attack, which means that the geopolitical risk premium for oil needs to rise." No casualties were reported but the full extent of the damage was not clear. Aramco also said it will dip into its reserves to offset the disruption. On Saturday, CEO Amin Nasser said that "work is underway" to restore production, but the incident could affect investor confidence ahead of Aramco's stock market debut. A significant volume of oil production can be restored within days but the company would need weeks to reach full output again, Bloomberg News reported Sunday, citing unnamed sources. Trump tweeted that he had "authorized the release of oil from the Strategic Petroleum Reserve, if needed, in a to-be-determined amount" that is "sufficient to keep the markets well-supplied." The president also "informed all appropriate agencies to expedite approvals of the oil pipelines currently in the permitting process in Texas and various other States," without naming specific projects. Loggerheads Following a phone call between Trump and Prince Mohammed, the White House condemned the attacks on "infrastructure vital to the global economy." Tehran and Washington have been at loggerheads since May last year, when Trump pulled the US out of a landmark 2015 deal with world powers that promised Iran relief from sanctions in return for curbs on its nuclear program. Despite the US accusation, the White House said on Sunday Trump may still meet his Iranian counterpart Hassan Rouhani at the upcoming United Nations assembly. Saudi Arabia has spent billions on military hardware but recent events have underscored the vulnerability of its infrastructure to attack. The Huthis have staged repeated cross-border missile and drone attacks targeting Saudi air bases and other facilities in what they say is retaliation for the Riyadh-led bombing campaign on rebel-held areas in Yemen.

Trump says US 'locked and loaded' after Saudi attacks as oil prices surge

<a href="https://www.wionews.com/videos/saudi-arabia-says-drones-attacked-oil-facilities-249652">Saudi Arabia</a> has temporarily halted production at two <a href="https://www.wionews.com/videos/drone-attack-at-saudi-arabias-oil-refinery-massive-fire-broke-out-249565">Aramco oil facilities </a>that were attacked by Yemeni rebels, interrupting about half of the company's total output, the energy minister said Saturday.

The attacks "resulted in a temporary suspension of production at Abqaiq and Khurais plants," Prince Abdulaziz bin Salman, the energy minister said in a statement carried by the official Saudi Press Agency.

It led to the interruption of about 50 per cent of total production, he added.

"These attacks resulted in production suspension of 5.7 million barrels of crude oil per day," the state-owned Aramco said in a separate statement.

Aramco CEO Amin Nasser said work was underway to restore production and a progress update would be provided in the next two days.

The Huthi rebel drone attacks on Abqaiq and Khurais, two key Aramco facilities in eastern Saudi Arabia, are the latest in a series of raids on the kingdom's oil installations in recent months.

Nasser said "no injuries" were reported in the attacks.

The Iran-linked Huthi rebels said they launched "a large-scale operation involving 10 drones" on the facilities, the group's Al-Masirah television reported.

US Secretary of State Mike Pompeo blamed Iran for the strikes.

"Iran has now launched an unprecedented attack on the world's energy supply," Pompeo said.

Saudi Arabia, a key ally of Washington, has repeatedly accused Iran of supplying arms to the rebels. Tehran denies the charge.

Growing rebel attacks underscore how Saudi infrastructure, including oil installations, are increasingly vulnerable to the Huthis' steadily advancing weaponry -- from ballistic missiles to unmanned drones.

Saudi Arabia has temporarily halted production at two Aramco oil facilities that were attacked by Yemeni rebels, interrupting about half of the company's total output, the energy minister said Saturday.

Saudi Arabia has temporarily halted production at two Aramco oil facilities that were attacked by Yemeni rebels, interrupting about half of the company's total output, the energy minister said Saturday. The attacks "resulted in a temporary suspension of production at Abqaiq and Khurais plants," Prince Abdulaziz bin Salman, the energy minister said in a statement carried by the official Saudi Press Agency. It led to the interruption of about 50 per cent of total production, he added. "These attacks resulted in production suspension of 5.7 million barrels of crude oil per day," the state-owned Aramco said in a separate statement. Aramco CEO Amin Nasser said work was underway to restore production and a progress update would be provided in the next two days. The Huthi rebel drone attacks on Abqaiq and Khurais, two key Aramco facilities in eastern Saudi Arabia, are the latest in a series of raids on the kingdom's oil installations in recent months. Nasser said "no injuries" were reported in the attacks. The Iran-linked Huthi rebels said they launched "a large-scale operation involving 10 drones" on the facilities, the group's Al-Masirah television reported. US Secretary of State Mike Pompeo blamed Iran for the strikes. "Iran has now launched an unprecedented attack on the world's energy supply," Pompeo said. Saudi Arabia, a key ally of Washington, has repeatedly accused Iran of supplying arms to the rebels. Tehran denies the charge. Growing rebel attacks underscore how Saudi infrastructure, including oil installations, are increasingly vulnerable to the Huthis' steadily advancing weaponry -- from ballistic missiles to unmanned drones.

Saudi halts production at attacked oil plants: Minister

An attack on Saudi oil facilities on Saturday is believed to have disrupted half the country's production capacity, making the United States the only real holder of the global supply cushion via its ability to raise own output or to soften sanctions against other major oil producers.

<a href="https://www.wionews.com/world/oil-rises-as-saudi-signals-opec-cuts-to-continue-under-new-minister-248572">Saudi Arabia</a> has yet to comment on the extent of damage on its <a href="https://www.wionews.com/business-economy/oil-edges-down-on-lower-demand-outlook-us-china-trade-dispute-242428">oil production</a> but industry sources have said some 5-6 million barrels per day (bpd) or 5-6 per cent&nbsp;of global supply has been affected.

Saudi Arabia, the <a href="https://www.wionews.com/business-economy/opec-cuts-2020-oil-demand-forecast-urges-effort-to-avert-a-new-glut-249037">Organization of the Petroleum Exporting Countries</a>' de-facto leader and largest producer, has been long seen as the custodian of the world's spare oil capacity.

Spare capacity is the extra oil a producing country can bring onstream and sustain at short notice, providing global markets with a cushion in the event of natural disaster, conflict or any other cause of an unplanned supply outage.

Industry sources have said Saudi Arabia will be able to restore supply within days.

A prolonged supply outage will have a major bullish impact on oil prices, which in turn will spur further gains in the US&nbsp;shale production.

The <a href="https://www.wionews.com/business-economy/us-briefly-overtakes-saudi-arabia-as-top-oil-exporter-international-energy-agency-249182">United States has briefly overtaken Saudi Arabia</a> as the world largest crude exporter this year, only a few years after removing a ban on oil exports because of large needs at home as the world's largest oil consumer.

Analysts have repeatedly underestimated US&nbsp;output growth gains with the country now producing around 15 per cent&nbsp;of global supply.

Besides the United States, the only countries which have significant spare capacity are Iran and Venezuela.

Both are subject to US&nbsp;sanctions and have seen their exports reduced to a trickle over the past year as US&nbsp;President Donald Trump has tightened sanctions.

Iran has seen its exports falling by over 2 million bpd since the sanctions have been imposed and Venezuela have seen its exports plummeting too.

While analysts expect Venezuelan production to more or less stabilising at current levels of around 700,000-800,000 bpd for the rest of the year, Iranian oil production is forecast to fall further.

Energy Aspects has said it expects OPEC spare capacity to fall to below 1 million bpd in the fourth quarter from two million bpd in the second quarter of 2019.

WILDCARDS

OPEC member Libya is in the middle of a civil war, which threatens its ability to continue pumping oil. Another big Libyan disruption would add to the shocks and highlight the spare capacity problem.

Nigerian exports have also suffered big from disruptions.

Meanwhile, US&nbsp;crude oil production is expected to rise to new records.

However, large US&nbsp;crude output gains and slowing global demand because of a weaker global economy have contributed to a rise in oil stocks worldwide.

The International Energy Agency, which coordinates energy policies of industrialised nations, said on Saturday the markets were still well supplies despite the Saudi disruptions.

"We are massively oversupplied," said Christyan Malek, head of oil and gas research for Europe, Middle East and Africa at J.P. Morgan, adding it would take five months of a 5 million-bpd outage to take global crude supply levels back to a 40-year normal average.

"Having said that, this attack introduces a new, irreversible risk premium into the market," he added.

An attack on Saudi oil facilities on Saturday is believed to have disrupted half the country's production capacity, making the United States the only real holder of the global supply cushion via its ability to raise own output or to soften sanctions against other major oil producers.

An attack on Saudi oil facilities on Saturday is believed to have disrupted half the country's production capacity, making the United States the only real holder of the global supply cushion via its ability to raise own output or to soften sanctions against other major oil producers. Saudi Arabia has yet to comment on the extent of damage on its oil production but industry sources have said some 5-6 million barrels per day (bpd) or 5-6 per cent of global supply has been affected. Saudi Arabia, the Organization of the Petroleum Exporting Countries' de-facto leader and largest producer, has been long seen as the custodian of the world's spare oil capacity. Spare capacity is the extra oil a producing country can bring onstream and sustain at short notice, providing global markets with a cushion in the event of natural disaster, conflict or any other cause of an unplanned supply outage. Industry sources have said Saudi Arabia will be able to restore supply within days. A prolonged supply outage will have a major bullish impact on oil prices, which in turn will spur further gains in the US shale production. The United States has briefly overtaken Saudi Arabia as the world largest crude exporter this year, only a few years after removing a ban on oil exports because of large needs at home as the world's largest oil consumer. Analysts have repeatedly underestimated US output growth gains with the country now producing around 15 per cent of global supply. Besides the United States, the only countries which have significant spare capacity are Iran and Venezuela. Both are subject to US sanctions and have seen their exports reduced to a trickle over the past year as US President Donald Trump has tightened sanctions. Iran has seen its exports falling by over 2 million bpd since the sanctions have been imposed and Venezuela have seen its exports plummeting too. While analysts expect Venezuelan production to more or less stabilising at current levels of around 700,000-800,000 bpd for the rest of the year, Iranian oil production is forecast to fall further. Energy Aspects has said it expects OPEC spare capacity to fall to below 1 million bpd in the fourth quarter from two million bpd in the second quarter of 2019. WILDCARDS OPEC member Libya is in the middle of a civil war, which threatens its ability to continue pumping oil. Another big Libyan disruption would add to the shocks and highlight the spare capacity problem. Nigerian exports have also suffered big from disruptions. Meanwhile, US crude oil production is expected to rise to new records. However, large US crude output gains and slowing global demand because of a weaker global economy have contributed to a rise in oil stocks worldwide. The International Energy Agency, which coordinates energy policies of industrialised nations, said on Saturday the markets were still well supplies despite the Saudi disruptions. "We are massively oversupplied," said Christyan Malek, head of oil and gas research for Europe, Middle East and Africa at J.P. Morgan, adding it would take five months of a 5 million-bpd outage to take global crude supply levels back to a 40-year normal average. "Having said that, this attack introduces a new, irreversible risk premium into the market," he added.

Global spare oil capacity in United States hands after Saudi outage

Oil prices rose on Wednesday after a reported sharp drop in US&nbsp;crude stocks and <a href="https://www.wionews.com/world/oil-rises-as-saudi-signals-opec-cuts-to-continue-under-new-minister-248572">OPEC</a>&nbsp;member Iraq said the producer group would discuss deepening output cuts amid ongoing demand concerns.

Brent crude gained 52 cents, or 0.8 per cent, to $62.90 a barrel by 1027 GMT, while US&nbsp;West Texas Intermediate rose 60 cents, or 1.1 per cent, to $58 a barrel.

Oil prices have risen more than 7 per cent this&nbsp;month, supported by declines in global inventories and signs of an easing in trade tensions between the United States and China, the world's two largest economies and energy consumers.

Prices rose this week after <a href="https://www.wionews.com/world/new-saudi-energy-minister-a-royal-with-decades-of-experience-in-opec-cuts-248719">Prince Abdulaziz bin Salman</a>, Saudi Arabia's new energy minister, said oil policy would not change and said an OPEC deal with Russia and other producers to cut output by 1.2 million barrels per day (BPD) would be maintained.

Iraqi Oil Minister Thamer Ghadhban said the Organization of the Petroleum Exporting Countries would discuss whether to deepen cuts when ministers meet on Thursday.

He said OPEC had discussed cuts of 1.6 million to 1.8 million BPD when considering output curbs last year.

Russia's Energy Minister Alexander Novak said an alliance of OPEC and other producers, known as OPEC+, would discuss global oil demand, but added that there were no fresh proposals to change production cut volumes.

<a href="https://www.wionews.com/business-economy/oil-hits-six-week-high-on-hopes-of-extended-opec-output-cuts-248741">OPEC cut</a> its forecast on Wednesday for growth in world oil demand in 2020 by 60,000 BPD to 1.08 million BPD, due to an economic slowdown.

It indicated the market would be in surplus.

The US Energy Information Administration (EIA) also slashed its demand forecasts this week.

Growing signs of a slowdown were flagged by oil traders and executives attending industry gatherings in Singapore and Abu Dhabi this week.

OPEC has pointed to rising global production next year, particularly in US shale fields, while data from the American Petroleum Institute (API) showed US&nbsp;crude stocks fell last week by 7.2 million barrels, more than twice the amount analysts in a Reuters poll had forecast.

"The API report is quite constructive for the oil market as it points to a tightening domestic oil market in the face of flat production and stronger demand," Dutch bank ING said.

The EIA's official numbers for US&nbsp;inventories will be released at 1430 GMT on Wednesday.

Oil prices rose on Wednesday after a reported sharp drop in US crude stocks and OPEC member Iraq said the producer group would discuss deepening output cuts amid ongoing demand concerns.

Oil prices rose on Wednesday after a reported sharp drop in US crude stocks and OPEC member Iraq said the producer group would discuss deepening output cuts amid ongoing demand concerns. Brent crude gained 52 cents, or 0.8 per cent, to $62.90 a barrel by 1027 GMT, while US West Texas Intermediate rose 60 cents, or 1.1 per cent, to $58 a barrel. Oil prices have risen more than 7 per cent this month, supported by declines in global inventories and signs of an easing in trade tensions between the United States and China, the world's two largest economies and energy consumers. Prices rose this week after Prince Abdulaziz bin Salman, Saudi Arabia's new energy minister, said oil policy would not change and said an OPEC deal with Russia and other producers to cut output by 1.2 million barrels per day (BPD) would be maintained. Iraqi Oil Minister Thamer Ghadhban said the Organization of the Petroleum Exporting Countries would discuss whether to deepen cuts when ministers meet on Thursday. He said OPEC had discussed cuts of 1.6 million to 1.8 million BPD when considering output curbs last year. Russia's Energy Minister Alexander Novak said an alliance of OPEC and other producers, known as OPEC+, would discuss global oil demand, but added that there were no fresh proposals to change production cut volumes. OPEC cut its forecast on Wednesday for growth in world oil demand in 2020 by 60,000 BPD to 1.08 million BPD, due to an economic slowdown. It indicated the market would be in surplus. The US Energy Information Administration (EIA) also slashed its demand forecasts this week. Growing signs of a slowdown were flagged by oil traders and executives attending industry gatherings in Singapore and Abu Dhabi this week. OPEC has pointed to rising global production next year, particularly in US shale fields, while data from the American Petroleum Institute (API) showed US crude stocks fell last week by 7.2 million barrels, more than twice the amount analysts in a Reuters poll had forecast. "The API report is quite constructive for the oil market as it points to a tightening domestic oil market in the face of flat production and stronger demand," Dutch bank ING said. The EIA's official numbers for US inventories will be released at 1430 GMT on Wednesday.

International oil prices gain after fall in US stocks

Oil futures hit a six-week high on Tuesday, rising for a fifth day on optimism that <a href="https://www.wionews.com/world/oil-rises-as-saudi-signals-opec-cuts-to-continue-under-new-minister-248572">OPEC</a> and other countries may agree to extend production cuts in a bid to support prices.

Brent was up 26 cents, or 0.4 per cent, at $62.85 a barrel by 0349 GMT, while US&nbsp;crude was 27 cents, or 0.5 per cent, higher at $58.12 a barrel. Brent touched its highest since August 1, while US crude rose to the highest since July 31.

US oil gained more than 2 per cent&nbsp;on Monday, while Brent finished the day 1.7 per cent&nbsp;higher as the market reacted to the appointment by Saudi Arabia's king of his son, Prince Abdulaziz bin Salman, as energy minister on Sunday.

Prince Abdulaziz, a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries (OPEC), said the pillars of <a href="https://www.wionews.com/business-economy/saudi-arabia-replaces-aramco-chairman-ahead-of-potential-ipo-247313">Saudi Arabia</a>'s policy would not change and a global deal to cut oil production by 1.2 million barrels per day would be maintained.

He added that the so-called OPEC+ alliance, made up of OPEC and non-OPEC countries including Russia, would be in place for the long term.

A meeting of OPEC and OPEC+ countries in Abu Dhabi this week "is stirring up hopes for additional supply cuts," said Stephen Innes, Asia Pacific market strategist at AxiTrader.&nbsp;

Still, Russia's oil output in August exceeded its quota under the OPEC+ agreements.

"Markets will need to see concrete progress on the production front, even as the world's economy slows, to sustain gains," said Jeffrey Halley, senior market analyst at OANDA.

Should oil end Tuesday higher it will be the longest run of gains since late July but headwinds remain as the US-China trade war rumbles on.

Executives at the annual Asia Pacific Petroleum Conference said on Monday they expect oil prices this year to be pressured by uncertainties surrounding the global economy, the US-China trade war and increasing US supplies.

In the United States, crude stockpiles are likely to have fallen for a fourth consecutive week last week, a preliminary Reuters poll showed on Monday. 
Five analysts polled by Reuters estimated, on average, that crude inventories fell 2.6 million barrels in the week to Sept 6.

Oil futures hit a six-week high on Tuesday, rising for a fifth day on optimism that OPEC and other countries may agree to extend production cuts in a bid to support prices.

Oil futures hit a six-week high on Tuesday, rising for a fifth day on optimism that OPEC and other countries may agree to extend production cuts in a bid to support prices. Brent was up 26 cents, or 0.4 per cent, at $62.85 a barrel by 0349 GMT, while US crude was 27 cents, or 0.5 per cent, higher at $58.12 a barrel. Brent touched its highest since August 1, while US crude rose to the highest since July 31. US oil gained more than 2 per cent on Monday, while Brent finished the day 1.7 per cent higher as the market reacted to the appointment by Saudi Arabia's king of his son, Prince Abdulaziz bin Salman, as energy minister on Sunday. Prince Abdulaziz, a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries (OPEC), said the pillars of Saudi Arabia's policy would not change and a global deal to cut oil production by 1.2 million barrels per day would be maintained. He added that the so-called OPEC+ alliance, made up of OPEC and non-OPEC countries including Russia, would be in place for the long term. A meeting of OPEC and OPEC+ countries in Abu Dhabi this week "is stirring up hopes for additional supply cuts," said Stephen Innes, Asia Pacific market strategist at AxiTrader. Still, Russia's oil output in August exceeded its quota under the OPEC+ agreements. "Markets will need to see concrete progress on the production front, even as the world's economy slows, to sustain gains," said Jeffrey Halley, senior market analyst at OANDA. Should oil end Tuesday higher it will be the longest run of gains since late July but headwinds remain as the US-China trade war rumbles on. Executives at the annual Asia Pacific Petroleum Conference said on Monday they expect oil prices this year to be pressured by uncertainties surrounding the global economy, the US-China trade war and increasing US supplies. In the United States, crude stockpiles are likely to have fallen for a fourth consecutive week last week, a preliminary Reuters poll showed on Monday. Five analysts polled by Reuters estimated, on average, that crude inventories fell 2.6 million barrels in the week to Sept 6.

Oil hits six-week high on hopes of extended OPEC output cuts

Oil producers will do "whatever necessary" to rebalance a crude market depressed by trade tensions and an uncertain global outlook, the United Arab Emirates' energy minister said Sunday.

Suheil al-Mazrouei warned however that with the <a href="https://www.wionews.com/opinions/us-china-trade-conflict-lack-of-trust-hobbling-the-ability-to-reach-a-deal-198533">US-China trade row</a> hanging over the world economy, additional output cuts may not be the best way to boost sagging prices.

Deeper production cuts are "not a decision that we take easily," the minister said ahead of the four-day World Energy Congress starting Monday in Abu Dhabi, where a key meeting of oil ministers will also be held on Thursday.

Mazrouei told a press conference that oil producers were affected by "other concerns" apart from supply and demand.

"Anything that the group sees that will balance the market, we are committed to discuss it and hopefully go and do whatever necessary," he said.

"But I wouldn't suggest to jump to cuts every time that we have an issue on trade tensions."

The Joint Ministerial Monitoring Committee (JMMC), created by an alliance of OPEC oil cartel members and other crude exporters, is scheduled to meet on Thursday to assess the oil market.

European benchmark Brent was selling at $61.54 per barrel on Friday, down from more than $75 this time last year.

OPEC+, dominated by the cartel's kingpin Saudi Arabia and non-OPEC production giant Russia, has resorted to massive production cuts to lift prices since the oil market crash in mid-2014.

In June, the group extended by nine months an earlier reduction of 1.2 million barrels per day, but the move has failed to arrest the price decline in light of a faltering global economy.

The one-day JMMC meeting is not set to make decisions but will assess the market and make recommendations to the next full ministerial meeting, to be held in December.

Mazrouei noted that the usual levers to control prices seemed to be having little effect.

The oil market is being affected by factors beyond "supply and demand... which is the main thing that we can control," he said.

Oil producers will do "whatever necessary" to rebalance a crude market depressed by trade tensions and an uncertain global outlook, the United Arab Emirates' energy minister said Sunday.

Oil producers will do "whatever necessary" to rebalance a crude market depressed by trade tensions and an uncertain global outlook, the United Arab Emirates' energy minister said Sunday. Suheil al-Mazrouei warned however that with the US-China trade row hanging over the world economy, additional output cuts may not be the best way to boost sagging prices. Deeper production cuts are "not a decision that we take easily," the minister said ahead of the four-day World Energy Congress starting Monday in Abu Dhabi, where a key meeting of oil ministers will also be held on Thursday. Mazrouei told a press conference that oil producers were affected by "other concerns" apart from supply and demand. "Anything that the group sees that will balance the market, we are committed to discuss it and hopefully go and do whatever necessary," he said. "But I wouldn't suggest to jump to cuts every time that we have an issue on trade tensions." The Joint Ministerial Monitoring Committee (JMMC), created by an alliance of OPEC oil cartel members and other crude exporters, is scheduled to meet on Thursday to assess the oil market. European benchmark Brent was selling at $61.54 per barrel on Friday, down from more than $75 this time last year. OPEC+, dominated by the cartel's kingpin Saudi Arabia and non-OPEC production giant Russia, has resorted to massive production cuts to lift prices since the oil market crash in mid-2014. In June, the group extended by nine months an earlier reduction of 1.2 million barrels per day, but the move has failed to arrest the price decline in light of a faltering global economy. The one-day JMMC meeting is not set to make decisions but will assess the market and make recommendations to the next full ministerial meeting, to be held in December. Mazrouei noted that the usual levers to control prices seemed to be having little effect. The oil market is being affected by factors beyond "supply and demand... which is the main thing that we can control," he said.

Oil nations to do 'whatever necessary' to balance market: UAE

The RBI on August 7, 2019, reduced the repo rate by 35 bps from 5.75 per cent to 5.40 per cent. This is the fourth consecutive cut in a row this year. It also tempered the GDP growth estimates to 6.9 per cent in line with CRISIL.

While the rate cut is 10 bps more than street estimates, it highlights that the central bank recognises the severity of the current slowdown. Including this rate cut, RBI has reduced repo rate (the rate at which it lends to banks) by 110 bps this year (1.10 per cent), and it is at its lowest level in the last nine years.

The RBI governor in a press briefing expressed confidence that this cut would give a boost to investment, consumption and growth. While decline in rate cuts are likely to reduce EMIs for individuals and cost of borrowing for corporates, it alone is not likely to spur growth.

Firstly, the banks do not pass on the full benefits of rate cuts to consumers. Out of the 75-bps rate cut before the August announcement, banks have passed on only 29 bps benefit to end consumers, less than 40 per cent.

Generally, it takes two to three months for transmission, some could argue. Even by this logic, banks have passed on only 60 per cent&nbsp;benefit. Private banks have been laggards compared to public sector banks. Also, lenders generally pass on more benefits on new loans rather than existing ones.

Just because the EMIs have come down, people would not be tempted to invest in two-wheelers, cars and real estate as consumption depends a lot on sentiment. Consumer confidence declined in July 2019 due to deterioration in sentiments on jobs, price levels and the general economic situation, according to RBI’s own survey.

For the first time in the last decade, FMCG companies are witnessing a decline in their volumes, 5.5 per cent in Q1 FY20 versus 12 per cent in Q1 FY19, according to a Prabhudas Liladhar report. Rural demand has been badly hit due to low farm incomes and wage growth.

The real estate sector is sitting on an all-time high inventory of 12.76 lakh houses in the top 30 cities. The entire auto industry is witnessing a slowdown as never before. Maruti Suzuki reported its sixth consecutive monthly sales decline with numbers falling 33 per cent in July 2019 while TVS Motors reported a decline of 13 per cent.

Maruti for the sixth month in a row has announced production cuts of 25 per cent. As per reports, 2.3 lakh workers have been laid off. This has had a knock-on effect on OEM and auto ancillary sectors, which employ significant number of contractual workers.

Since auto and real estate sectors contribute 15 per cent-17 per cent to India’s GDP, their slowdown has had a direct impact on other sectors like metals and mining, cement and tyre manufacturing, among others.&nbsp;

The manufacturing industry is operating at a capacity utilisation of 75 per cent. Growth in eight core sectors fell to four-year low of 0.2 per cent in June 2019.&nbsp;

Until and unless the manufacturing industry sees a permanent revival in demand and reduction in idle capacity utilisations, it may not think of fresh investments.

Banks, on the other hand, are still reeling from high NPAs. The delay in IBC insolvency cases is hurting the banks, which continue to adopt a selective and cautious approach to lending. Even the retail portfolio of banks is showing signs of stress. The liquidity crunch, post the IL&amp;FS default and the NBFC crisis has not helped matters.

The Indian economy is facing an acute demand side issue and RBI cannot fix it alone. The government missed the opportunity to leave more money in the hands of people through tax cuts in Budget 2019. Instead, the finance minister increased taxes on the super-rich, which has acted as a dampener.

Since tight fiscal math prevents the government from increasing its spending, like it did, post the global financial crisis, India will need to fall back on private consumption expenditure to boost demand and growth. The new Direct Tax Code, which is expected to propose sweeping changes in tax rates should be implemented next year without fail. Till then, all eyes on the festive season! 
 
(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-are-the-rate-cuts-enough-to-boost-growth-2782948">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp;

The RBI on August 7, 2019, reduced the repo rate by 35 bps from 5.75 per cent to 5.40 per cent. This is the fourth consecutive cut in a row this year. It also tempered the GDP growth estimates to 6.

The RBI on August 7, 2019, reduced the repo rate by 35 bps from 5.75 per cent to 5.40 per cent. This is the fourth consecutive cut in a row this year. It also tempered the GDP growth estimates to 6.9 per cent in line with CRISIL. While the rate cut is 10 bps more than street estimates, it highlights that the central bank recognises the severity of the current slowdown. Including this rate cut, RBI has reduced repo rate (the rate at which it lends to banks) by 110 bps this year (1.10 per cent), and it is at its lowest level in the last nine years. The RBI governor in a press briefing expressed confidence that this cut would give a boost to investment, consumption and growth. While decline in rate cuts are likely to reduce EMIs for individuals and cost of borrowing for corporates, it alone is not likely to spur growth. Firstly, the banks do not pass on the full benefits of rate cuts to consumers. Out of the 75-bps rate cut before the August announcement, banks have passed on only 29 bps benefit to end consumers, less than 40 per cent. Generally, it takes two to three months for transmission, some could argue. Even by this logic, banks have passed on only 60 per cent benefit. Private banks have been laggards compared to public sector banks. Also, lenders generally pass on more benefits on new loans rather than existing ones. Just because the EMIs have come down, people would not be tempted to invest in two-wheelers, cars and real estate as consumption depends a lot on sentiment. Consumer confidence declined in July 2019 due to deterioration in sentiments on jobs, price levels and the general economic situation, according to RBI’s own survey. For the first time in the last decade, FMCG companies are witnessing a decline in their volumes, 5.5 per cent in Q1 FY20 versus 12 per cent in Q1 FY19, according to a Prabhudas Liladhar report. Rural demand has been badly hit due to low farm incomes and wage growth. The real estate sector is sitting on an all-time high inventory of 12.76 lakh houses in the top 30 cities. The entire auto industry is witnessing a slowdown as never before. Maruti Suzuki reported its sixth consecutive monthly sales decline with numbers falling 33 per cent in July 2019 while TVS Motors reported a decline of 13 per cent. Maruti for the sixth month in a row has announced production cuts of 25 per cent. As per reports, 2.3 lakh workers have been laid off. This has had a knock-on effect on OEM and auto ancillary sectors, which employ significant number of contractual workers. Since auto and real estate sectors contribute 15 per cent-17 per cent to India’s GDP, their slowdown has had a direct impact on other sectors like metals and mining, cement and tyre manufacturing, among others. The manufacturing industry is operating at a capacity utilisation of 75 per cent. Growth in eight core sectors fell to four-year low of 0.2 per cent in June 2019. Until and unless the manufacturing industry sees a permanent revival in demand and reduction in idle capacity utilisations, it may not think of fresh investments. Banks, on the other hand, are still reeling from high NPAs. The delay in IBC insolvency cases is hurting the banks, which continue to adopt a selective and cautious approach to lending. Even the retail portfolio of banks is showing signs of stress. The liquidity crunch, post the IL&FS default and the NBFC crisis has not helped matters. The Indian economy is facing an acute demand side issue and RBI cannot fix it alone. The government missed the opportunity to leave more money in the hands of people through tax cuts in Budget 2019. Instead, the finance minister increased taxes on the super-rich, which has acted as a dampener. Since tight fiscal math prevents the government from increasing its spending, like it did, post the global financial crisis, India will need to fall back on private consumption expenditure to boost demand and growth. The new Direct Tax Code, which is expected to propose sweeping changes in tax rates should be implemented next year without fail. Till then, all eyes on the festive season! (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Oil rises more than 1% after a drone attack on Saudi field

<a href="https://www.wionews.com/world/oil-rises-after-iran-says-it-seized-foreign-tanker-in-gulf-236913">Crude oil prices rose</a> more than 2 per cent on Friday, recovering from two days of declines after data showing a rise in US retail sales helped to ease concerns about a recession in the world's biggest economy.

Brent crude was up 2 per cent at $59.48 a barrel at 0924 GMT, after falling 2.1 per cent on Thursday and 3 per cent the previous day.&nbsp;

US crude was also 2 per cent higher at $55.60 a barrel, having dropped 1.4 per cent in the previous session and 3.3 per cent on Wednesday.

US retail sales rose 0.7 per cent in July as consumers bought a range of goods even as they cut back on motor vehicle purchases, Thursday's data showed.

That came a day after a sell-off in world markets that followed the US Treasury yield curve's first inversion since June 2007 - a development usually seen as a reliable predictor of a looming recession.

"The rebound has a corrective look about it on thin volumes, rather than a beachhead for an impending rebound," said Jeffrey Halley, senior market analyst at OANDA.&nbsp;

"Overall, US data continues to be a bright spot in a dark economic universe."

World stocks also rose on Friday as expectations grew for further stimulus by central banks, offsetting worries about slowing economic growth.

Gains are likely to be capped after a week of data releases included a surprise drop in industrial output growth in China to a more than 17-year low and a fall in exports that sent Germany's economy into reverse in the second quarter.

"The broader story around global economic growth has been a weak one, or a weakening one, and expectations (are for) further weakening," said Phin Ziebell, senior economist at National Australia Bank.

The price of Brent is still up nearly 10 per cent this year thanks to supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, a group known as OPEC+.

In July, OPEC+ agreed to extend oil output cuts until March 2020 to prop up prices.

"At what point will further output cuts be needed at the back end of this year from OPEC and Russia to keep things going the way they are?" Ziebell said.

A Saudi official indicated this month that more steps may be coming, saying Saudi Arabia was committed to doing "whatever it takes" to keep the market balanced next year.

OPEC's efforts have been undermined by worries about a slowing global economy amid a trade dispute between the United States and China, as well as rising US stockpiles of crude and higher output of US shale oil.

Crude oil prices rose more than 2 per cent on Friday, recovering from two days of declines after data showing a rise in US retail sales helped to ease concerns about a recession in the world's biggest economy.

Crude oil prices rose more than 2 per cent on Friday, recovering from two days of declines after data showing a rise in US retail sales helped to ease concerns about a recession in the world's biggest economy. Brent crude was up 2 per cent at $59.48 a barrel at 0924 GMT, after falling 2.1 per cent on Thursday and 3 per cent the previous day. US crude was also 2 per cent higher at $55.60 a barrel, having dropped 1.4 per cent in the previous session and 3.3 per cent on Wednesday. US retail sales rose 0.7 per cent in July as consumers bought a range of goods even as they cut back on motor vehicle purchases, Thursday's data showed. That came a day after a sell-off in world markets that followed the US Treasury yield curve's first inversion since June 2007 - a development usually seen as a reliable predictor of a looming recession. "The rebound has a corrective look about it on thin volumes, rather than a beachhead for an impending rebound," said Jeffrey Halley, senior market analyst at OANDA. "Overall, US data continues to be a bright spot in a dark economic universe." World stocks also rose on Friday as expectations grew for further stimulus by central banks, offsetting worries about slowing economic growth. Gains are likely to be capped after a week of data releases included a surprise drop in industrial output growth in China to a more than 17-year low and a fall in exports that sent Germany's economy into reverse in the second quarter. "The broader story around global economic growth has been a weak one, or a weakening one, and expectations (are for) further weakening," said Phin Ziebell, senior economist at National Australia Bank. The price of Brent is still up nearly 10 per cent this year thanks to supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, a group known as OPEC+. In July, OPEC+ agreed to extend oil output cuts until March 2020 to prop up prices. "At what point will further output cuts be needed at the back end of this year from OPEC and Russia to keep things going the way they are?" Ziebell said. A Saudi official indicated this month that more steps may be coming, saying Saudi Arabia was committed to doing "whatever it takes" to keep the market balanced next year. OPEC's efforts have been undermined by worries about a slowing global economy amid a trade dispute between the United States and China, as well as rising US stockpiles of crude and higher output of US shale oil.

Oil rises 2% as recession fears recede

&nbsp;Oil prices fell on Monday amid worries about an economic slowdown and the <a href="https://www.wionews.com/photos/us-china-trade-war-in-10-dates-241155#march-22-china-ripostes-241133">US-China&nbsp;trade&nbsp;war</a>, which have led to a cut in the outlook for global oil demand.

International benchmark Brent crude futures were at $58.16 a barrel by 0829 GMT, down 37 cents from their previous&nbsp;settlement.

US&nbsp;West Texas Intermediate (WTI) futures were at $53.89 per barrel, down 61 cents from their last close.

Both benchmarks fell last week, with Brent losing more than 5% and WTI falling about 2%.

Although the third quarter is fundamentally the strongest season for oil demand because of driving in summer holidays, the&nbsp;trade&nbsp;dispute&nbsp;between the United States and&nbsp;China&nbsp;has weakened demand and reduced crude prices.

US&nbsp;President Donald Trump said on Friday he was not ready to make a deal with&nbsp;China&nbsp;and even called a September round of&nbsp;trade&nbsp;talks into question.

"The market is facing a buyers' strike," said Michael Tran, commodity strategist at RBC Capital Markets, noting the low level of investors' long positions betting on higher prices.

"Despite the laundry list of disruptions and additional barrels at risk, investor length is currently near a multi-year low."

Goldman Sachs Group Inc said on Sunday it no longer expects a&nbsp;trade&nbsp;deal between the world's two largest economies before the 2020 US presidential election.

The International Energy Agency (IEA) said on Friday mounting signs of an economic slowdown had caused global oil demand to grow at its slowest pace since the financial crisis of 2008.

OPEC members continue to cut production to drain global oil inventories, with the Saudis cutting more than their agreed quota, but analysts said more cuts were needed to support prices due to a fall in demand and non-OPEC supply growth next year.

"If OPEC cuts are merely extended through 2020, prices are going to fall further from current levels," Bernstein Energy said in a note on Monday.&nbsp;

"We believe that OPEC needs to cut by a further one million barrels per day in 2020 if they are to defend oil prices at $60 a barrel."

In a sign of lower production in the United States, the weekly US&nbsp;oil rig count, an early indicator of future output, fell for a sixth straight week as producers cut spending on new drilling and completions.

India's imports of crude oil have also stalled in recent months, a fall that tallies with weaker economic growth in the country.

Oil prices fell on Monday amid worries about an economic slowdown and the US-China trade war, which have led to a cut in the outlook for global oil demand. International benchmark Brent crude futures were at $58.

Oil prices fell on Monday amid worries about an economic slowdown and the US-China trade war, which have led to a cut in the outlook for global oil demand. International benchmark Brent crude futures were at $58.16 a barrel by 0829 GMT, down 37 cents from their previous settlement. US West Texas Intermediate (WTI) futures were at $53.89 per barrel, down 61 cents from their last close. Both benchmarks fell last week, with Brent losing more than 5% and WTI falling about 2%. Although the third quarter is fundamentally the strongest season for oil demand because of driving in summer holidays, the trade dispute between the United States and China has weakened demand and reduced crude prices. US President Donald Trump said on Friday he was not ready to make a deal with China and even called a September round of trade talks into question. "The market is facing a buyers' strike," said Michael Tran, commodity strategist at RBC Capital Markets, noting the low level of investors' long positions betting on higher prices. "Despite the laundry list of disruptions and additional barrels at risk, investor length is currently near a multi-year low." Goldman Sachs Group Inc said on Sunday it no longer expects a trade deal between the world's two largest economies before the 2020 US presidential election. The International Energy Agency (IEA) said on Friday mounting signs of an economic slowdown had caused global oil demand to grow at its slowest pace since the financial crisis of 2008. OPEC members continue to cut production to drain global oil inventories, with the Saudis cutting more than their agreed quota, but analysts said more cuts were needed to support prices due to a fall in demand and non-OPEC supply growth next year. "If OPEC cuts are merely extended through 2020, prices are going to fall further from current levels," Bernstein Energy said in a note on Monday. "We believe that OPEC needs to cut by a further one million barrels per day in 2020 if they are to defend oil prices at $60 a barrel." In a sign of lower production in the United States, the weekly US oil rig count, an early indicator of future output, fell for a sixth straight week as producers cut spending on new drilling and completions. India's imports of crude oil have also stalled in recent months, a fall that tallies with weaker economic growth in the country.

Oil edges down on lower demand outlook, US-China trade dispute

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