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

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

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

Oil prices slip over Libyan production, OPEC cuts

Retail prices of petrol and diesel will be revised daily from today countrywide. The prices of petrol and diesel have already been slashed by Rs 1.12 and Rs 1.24 respectively, which comes into effect from 6 am(local time) today.

The government&#39;s decision to revise fuel prices daily is intended to make the retail prices more reflective of the current market conditions and minimising the volatility in the retail price of petroleum products. It is also expected to make prices more transparent.

The oil marketing companies had initially resisted the move but came around after the government ran a pilot run in five Indian cities - Chandigarh, Jamshedpur, Puducherry, Udaipur and Vizag.

The public sector oil marketing companies are taking steps to establish an appropriate mechanism to&nbsp;convey&nbsp;prices to consumers every day, including daily publishing of the prices in newspapers, prominent display of prices at the retail outlets and sending of price-related SMS.

Fuel prices were deregulated by the government in 2014, however, prices continued to be revised after a fortnight whenever required, from today though it would be revised daily. &nbsp;

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Starting Friday, petrol and diesel prices will be revised daily in sync with any movement in international oil rates (WION)
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The government's decision to revise fuel prices daily is intended to make the retail prices more reflective of the current market conditions

Retail prices of petrol and diesel will be revised daily from today countrywide. The prices of petrol and diesel have already been slashed by Rs 1.12 and Rs 1.24 respectively, which comes into effect from 6 am(local time) today. The government's decision to revise fuel prices daily is intended to make the retail prices more reflective of the current market conditions and minimising the volatility in the retail price of petroleum products. It is also expected to make prices more transparent. The oil marketing companies had initially resisted the move but came around after the government ran a pilot run in five Indian cities - Chandigarh, Jamshedpur, Puducherry, Udaipur and Vizag. The public sector oil marketing companies are taking steps to establish an appropriate mechanism to convey prices to consumers every day, including daily publishing of the prices in newspapers, prominent display of prices at the retail outlets and sending of price-related SMS. Fuel prices were deregulated by the government in 2014, however, prices continued to be revised after a fortnight whenever required, from today though it would be revised daily. Starting Friday, petrol and diesel prices will be revised daily in sync with any movement in international oil rates (WION) ×

Fuel prices to be revised daily from today

Iran&#39;s oil minister dismissed India&#39;s decision to cut oil imports from Tehran in 2017/18 by a fifth as a threat on Wednesday, in an escalation of a dispute over a giant gas field contract.

Sources familiar with the matter told Reuters last week that Indian state refiners were going to cut oil imports from Iran, as New Delhi seeks to put pressure on Tehran to award the Farzad B gas field to an Indian consortium.

&quot;India is one of our good costumers, but we cannot sign a&nbsp;contract under threat,&quot; Bijan Zanganeh was quoted as saying by Iran&#39;s ISNA news agency.

&quot;India&#39;s cut of oil imports from Iran will not cause any trouble to us as we have other buyers,&quot; he added.

Zanganeh said despite an extension of deadlines, India has not offered an acceptable proposal for the development of the gas field.

&quot;Their proposal was not profitable to Iran ... We sent (the) Indians a letter and told them we are keen to continue negotiations, but under sensible conditions, not under threats.&quot;

India, Iran&#39;s biggest oil buyer after China, was among a handful of countries that continued to deal with the Tehran despite Western sanctions over its nuclear programme.

A consortium headed by ONGC Videsh Ltd (OVL), the overseas investment arm of Indian explorer Oil and Natural Gas Corp, discovered Farzad B in the Farsi offshore block in 2008.

The consortium, which also includes Oil India and Indian Oil Corp, could not obtain permission to develop the field due to Western sanctions, but those sanctions were removed last year.

India and Iran had both been hopeful of wrapping up the Farzad B deal by March, although Zanganeh said Iran has asked other countries to submit their proposals for its development.

(Reuters)

Iran's oil minister said despite extension of deadlines, India has not offered an acceptable proposal for the development of the gas field

Iran's oil minister dismissed India's decision to cut oil imports from Tehran in 2017/18 by a fifth as a threat on Wednesday, in an escalation of a dispute over a giant gas field contract. Sources familiar with the matter told Reuters last week that Indian state refiners were going to cut oil imports from Iran, as New Delhi seeks to put pressure on Tehran to award the Farzad B gas field to an Indian consortium. "India is one of our good costumers, but we cannot sign a contract under threat," Bijan Zanganeh was quoted as saying by Iran's ISNA news agency. "India's cut of oil imports from Iran will not cause any trouble to us as we have other buyers," he added. Zanganeh said despite an extension of deadlines, India has not offered an acceptable proposal for the development of the gas field. "Their proposal was not profitable to Iran ... We sent (the) Indians a letter and told them we are keen to continue negotiations, but under sensible conditions, not under threats." India, Iran's biggest oil buyer after China, was among a handful of countries that continued to deal with the Tehran despite Western sanctions over its nuclear programme. A consortium headed by ONGC Videsh Ltd (OVL), the overseas investment arm of Indian explorer Oil and Natural Gas Corp, discovered Farzad B in the Farsi offshore block in 2008. The consortium, which also includes Oil India and Indian Oil Corp, could not obtain permission to develop the field due to Western sanctions, but those sanctions were removed last year. India and Iran had both been hopeful of wrapping up the Farzad B deal by March, although Zanganeh said Iran has asked other countries to submit their proposals for its development. (Reuters)

India tussles with Iran over Farzad B gas field

US oil prices closed below $50 a barrel for the first time in three months on Thursday amid worries about increased American shale production in the wake of ramped-up capital investment.

US benchmark West Texas Intermediate for April delivery, slid $1 to $49.28 a barrel, its first close under $50 since December 7.&nbsp;

That drop followed a decline of more than five per cent Wednesday after an oil inventory report showed US stocks rose by eight million barrels, on higher domestic production and increased stockpiling at the closely-watched Cushing, Oklahoma trading hub.

&quot;The sell-off is continuing in light of a significant increase in inventories yesterday,&quot; said Andy Lipow of Houston consultancy Lipow Oil Associates.

The pullback comes during a major energy industry conference in Houston that has featured commentary about increased investment in the industry following the recovery in oil prices since an OPEC agreement struck in November.

Analysts pointed to comments from leading shale producer Harold Hamm, chief executive of Continental Resources, who was quoted in news reports as saying higher US oil output could &quot;kill the market.&quot;

The US Energy Information Administration projected US oil output would rise&nbsp;to 9.7 million barrels per day in 2018 from 8.9 million in 2016, according its monthly report released Tuesday.

(AFP)

The slump comes amid worries about increased American shale production in the wake of ramped-up capital investment

US oil prices closed below $50 a barrel for the first time in three months on Thursday amid worries about increased American shale production in the wake of ramped-up capital investment. US benchmark West Texas Intermediate for April delivery, slid $1 to $49.28 a barrel, its first close under $50 since December 7. That drop followed a decline of more than five per cent Wednesday after an oil inventory report showed US stocks rose by eight million barrels, on higher domestic production and increased stockpiling at the closely-watched Cushing, Oklahoma trading hub. "The sell-off is continuing in light of a significant increase in inventories yesterday," said Andy Lipow of Houston consultancy Lipow Oil Associates. The pullback comes during a major energy industry conference in Houston that has featured commentary about increased investment in the industry following the recovery in oil prices since an OPEC agreement struck in November. Analysts pointed to comments from leading shale producer Harold Hamm, chief executive of Continental Resources, who was quoted in news reports as saying higher US oil output could "kill the market." The US Energy Information Administration projected US oil output would rise to 9.7 million barrels per day in 2018 from 8.9 million in 2016, according its monthly report released Tuesday. (AFP)

US oil prices close below $50 a barrel

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

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

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

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

Global oil prices have fallen 52% since 2014, while Indian petrol prices have fallen just 1% in the same time

Click here to get the underlying data and code.

Why are Indian prices not falling in line with global crude oil prices

Why haven't petrol and diesel prices in India fallen in line with crude oil prices? What is the rest of South Asia paying for their fuel?

Global oil prices have fallen 52% since 2014. And Indian petrol prices fall just 1%?

The White House blocked new leases for oil and gas drilling in sections of the Arctic and Atlantic Tuesday, a high-stakes bid to forestall exploration and tie Donald Trump&#39;s hands.

With Trump bringing a strident pro-oil stance to the White House, the outgoing administration has launched a rearguard action.

President Barack Obama announced he was placing swaths of the Arctic and Atlantic &quot;indefinitely off limits to future oil and gas leasing&quot;.

The protection covers an area of the Arctic roughly the size of Spain or Thailand and 31 sea canyons in the Atlantic.

A senior administration official said that there was a &quot;strong legal basis&quot; for the move, and suggested Trump could not revoke the decision without an act of Congress.

The action, based on a law from the 1950s, was taken in tandem with the Canadian government and introduces an additional headache should Trump try to row it back.

Obama said in a statement that the measures would &quot;protect a sensitive and unique ecosystem&quot;.

He also warned that the risk of oil spills &quot;are significant,&quot; and the ability &quot;to clean up from a spill in the region&rsquo;s harsh conditions is limited&quot;.

&nbsp;

Deepwater horizon&#39;s shadow

The Hawaii-born president&#39;s second year in office was dominated by the catastrophic Deepwater Horizon&nbsp;oil spill, which poured millions of barrels of oil into the Gulf of Mexico.

The spill could not be stopped for 87 days, devastating wildlife and fishing-dependent communities in Louisiana, Mississippi, Florida, and Alabama.

The American Petroleum Institute, an industry lobby group, warned that Obama&#39;s decision &quot;blocking offshore exploration would weaken our national security, destroy good-paying jobs, and could make energy less affordable for consumers&quot;.

The Sierra Club, an environmental lobby group, welcomed the move as a step toward &quot;protecting our beaches, the climate, and coastal economies&quot;.

Obama&#39;s eight years in office have resulted in a tidal wave of new environmental legislation, protecting marine ecosystems, curbing carbon emissions and boosting renewable energy.

Obama rushed through ratification of the Paris Climate Accord in record time to make sure that it could not be shelved by the incoming administration.

Many rules have been finalized, making them difficult to roll back. States like California have also introduced their own climate-friendly legislation. But Obama&#39;s agenda is likely to come under sustained assault from the Trump administration.

The business tycoon-turned-commander-in-chief has named Exxon boss Rex Tillerson as his secretary of state and Scott Pruitt, a climate change denier, as head of the Environmental Protection Agency.

Administration officials fear that while Trump cannot scrap the Paris deal, it could fatally undermine it.

Many of the US commitments to reduce carbon emissions are in the Clean Power Act, which Obama unveiled in 2015. The Act limits the amount of carbon pollution&nbsp;power plants can emit.

Obama described the legislation at the time as &quot;the single most important step that America has ever made in the fight against global climate change.&quot;

The measures however have come under fierce legal challenge, including from Pruitt in his role as attorney general of Oklahoma, an oil state.

Sources familiar with Trump&#39;s transition planning say the new administration is weighing options like simply shutting down the government&#39;s legal defense of the act, or scrapping plans to appeal a Supreme Court ruling that froze portions of the program.

In practical terms that would mean abandoning the plan and reneging on international commitments.

According to a recent Pew poll 48 per cent of Americans believe climate change is caused by humans.

Trump once wrote, falsely, that global warming was a Chinese conspiracy to weaken the United States.

&quot;The concept of global warming&quot; was &quot;created by and for the Chinese in order to make US manufacturing non-competitive,&quot; Trump wrote on Twitter in 2012.

(AFP)

The protection covers an area of the Arctic roughly the size of Spain or Thailand and 31 sea canyons in the Atlantic

The White House blocked new leases for oil and gas drilling in sections of the Arctic and Atlantic Tuesday, a high-stakes bid to forestall exploration and tie Donald Trump's hands. With Trump bringing a strident pro-oil stance to the White House, the outgoing administration has launched a rearguard action. President Barack Obama announced he was placing swaths of the Arctic and Atlantic "indefinitely off limits to future oil and gas leasing". The protection covers an area of the Arctic roughly the size of Spain or Thailand and 31 sea canyons in the Atlantic. A senior administration official said that there was a "strong legal basis" for the move, and suggested Trump could not revoke the decision without an act of Congress. The action, based on a law from the 1950s, was taken in tandem with the Canadian government and introduces an additional headache should Trump try to row it back. Obama said in a statement that the measures would "protect a sensitive and unique ecosystem". He also warned that the risk of oil spills "are significant," and the ability "to clean up from a spill in the region’s harsh conditions is limited". Deepwater horizon's shadow The Hawaii-born president's second year in office was dominated by the catastrophic Deepwater Horizon oil spill, which poured millions of barrels of oil into the Gulf of Mexico. The spill could not be stopped for 87 days, devastating wildlife and fishing-dependent communities in Louisiana, Mississippi, Florida, and Alabama. The American Petroleum Institute, an industry lobby group, warned that Obama's decision "blocking offshore exploration would weaken our national security, destroy good-paying jobs, and could make energy less affordable for consumers". The Sierra Club, an environmental lobby group, welcomed the move as a step toward "protecting our beaches, the climate, and coastal economies". Obama's eight years in office have resulted in a tidal wave of new environmental legislation, protecting marine ecosystems, curbing carbon emissions and boosting renewable energy. Obama rushed through ratification of the Paris Climate Accord in record time to make sure that it could not be shelved by the incoming administration. Many rules have been finalized, making them difficult to roll back. States like California have also introduced their own climate-friendly legislation. But Obama's agenda is likely to come under sustained assault from the Trump administration. The business tycoon-turned-commander-in-chief has named Exxon boss Rex Tillerson as his secretary of state and Scott Pruitt, a climate change denier, as head of the Environmental Protection Agency. Administration officials fear that while Trump cannot scrap the Paris deal, it could fatally undermine it. Many of the US commitments to reduce carbon emissions are in the Clean Power Act, which Obama unveiled in 2015. The Act limits the amount of carbon pollution power plants can emit. Obama described the legislation at the time as "the single most important step that America has ever made in the fight against global climate change." The measures however have come under fierce legal challenge, including from Pruitt in his role as attorney general of Oklahoma, an oil state. Sources familiar with Trump's transition planning say the new administration is weighing options like simply shutting down the government's legal defense of the act, or scrapping plans to appeal a Supreme Court ruling that froze portions of the program. In practical terms that would mean abandoning the plan and reneging on international commitments. According to a recent Pew poll 48 per cent of Americans believe climate change is caused by humans. Trump once wrote, falsely, that global warming was a Chinese conspiracy to weaken the United States. "The concept of global warming" was "created by and for the Chinese in order to make US manufacturing non-competitive," Trump wrote on Twitter in 2012. (AFP)

Obama bans oil, gas drilling in Arctic and Atlantic, ties Trump's hands

Oil prices rallied for their best week in at least five years on Friday, steadying above $51 a barrel, following OPEC&#39;s decision to cut crude output to rein in a global glut that has weighed on prices for more than two years.

After the deal was announced on Wednesday, the market focused on the implementation and impact of OPEC&#39;s first output cuts since 2008, to be joined by Russia and possibly other non-OPEC producers.

Crude prices were pressured by data showing oil output in Russia rose in November to a post-Soviet high and Moscow&#39;s plan to use its record November oil production as its baseline when it cuts output.

With cuts being implemented next year only against end-2016 levels, analysts said there was still a possibility that oversupply, which has halved oil prices since 2014, remains a factor next year.

&quot;Global, and especially US, crude oil inventories are currently at extremely high levels after two years of massive oversupply,&quot; Societe Generale analysts said.

&quot;While the OPEC agreement is very significant and will result in some moderate global stock draws next year, it is likely to take more than one year for crude inventory levels to return to more normal levels.&quot;

Front-month Brent crude futures ended the session up at $54.46 a barrel, up 52 cents, 0.96 per cent. The contract rose more than 15 per cent for the week, its biggest gain since early 2009.

US&nbsp;crude&nbsp;settled at $51.68 per barrel, up 62 cents or 1.21 per cent and notched its biggest weekly gain since early 2011, with a rise of 12 per cent.

Oil drew support from a weak dollar, which slipped against a basket of currencies. Still, traders said profit-taking ahead of the weekend limited crude&#39;s price gains.

&quot;The petroleum markets have settled into quieter mixed flows as the waves created by Wednesday&#39;s OPEC announcement gradually dissipate, with some light profit taking emerging in crude oil,&quot; said Tim Evans, energy futures specialist at Citigroup.

&quot;A weaker US&nbsp;dollar is typically supportive for commodity prices and may have helped steady crude oil from the lows in today&#39;s trade.&quot;

Prices rose to session highs after the White House said it expects US&nbsp;President Barack Obama to sign US&nbsp;legislation extending sanctions against Iran for 10 years into law.

Iran is also seen as a wild card in the execution of the OPEC deal.

US&nbsp;President-elect Donald Trump&#39;s transition team is examining proposals for new non-nuclear sanctions on Iran, the Financial Times reported on Friday.

Iran had threatened on Friday to retaliate against the US&nbsp;Senate&#39;s vote to extend the Iran Sanctions Act (ISA) for 10 years, saying it violated last year&#39;s deal with six major powers that curbed its nuclear programme.

The sanctions were first adopted in 1996 to punish investments in Iran&#39;s energy industry and deter its pursuit of nuclear weapons.

Meanwhile, US&nbsp;energy companies extended their recovery in oil drilling into a seventh month this week, data from energy services firm Baker Hughes Inc&nbsp;showed on Friday.

(Reuters)

US crude settled at $51.68 per barrel, up 62 cents or 1.21 per cent and notched its biggest weekly gain since early 2011

Oil prices rallied for their best week in at least five years on Friday, steadying above $51 a barrel, following OPEC's decision to cut crude output to rein in a global glut that has weighed on prices for more than two years. After the deal was announced on Wednesday, the market focused on the implementation and impact of OPEC's first output cuts since 2008, to be joined by Russia and possibly other non-OPEC producers. Crude prices were pressured by data showing oil output in Russia rose in November to a post-Soviet high and Moscow's plan to use its record November oil production as its baseline when it cuts output. With cuts being implemented next year only against end-2016 levels, analysts said there was still a possibility that oversupply, which has halved oil prices since 2014, remains a factor next year. "Global, and especially US, crude oil inventories are currently at extremely high levels after two years of massive oversupply," Societe Generale analysts said. "While the OPEC agreement is very significant and will result in some moderate global stock draws next year, it is likely to take more than one year for crude inventory levels to return to more normal levels." Front-month Brent crude futures ended the session up at $54.46 a barrel, up 52 cents, 0.96 per cent. The contract rose more than 15 per cent for the week, its biggest gain since early 2009. US crude settled at $51.68 per barrel, up 62 cents or 1.21 per cent and notched its biggest weekly gain since early 2011, with a rise of 12 per cent. Oil drew support from a weak dollar, which slipped against a basket of currencies. Still, traders said profit-taking ahead of the weekend limited crude's price gains. "The petroleum markets have settled into quieter mixed flows as the waves created by Wednesday's OPEC announcement gradually dissipate, with some light profit taking emerging in crude oil," said Tim Evans, energy futures specialist at Citigroup. "A weaker US dollar is typically supportive for commodity prices and may have helped steady crude oil from the lows in today's trade." Prices rose to session highs after the White House said it expects US President Barack Obama to sign US legislation extending sanctions against Iran for 10 years into law. Iran is also seen as a wild card in the execution of the OPEC deal. US President-elect Donald Trump's transition team is examining proposals for new non-nuclear sanctions on Iran, the Financial Times reported on Friday. Iran had threatened on Friday to retaliate against the US Senate's vote to extend the Iran Sanctions Act (ISA) for 10 years, saying it violated last year's deal with six major powers that curbed its nuclear programme. The sanctions were first adopted in 1996 to punish investments in Iran's energy industry and deter its pursuit of nuclear weapons. Meanwhile, US energy companies extended their recovery in oil drilling into a seventh month this week, data from energy services firm Baker Hughes Inc showed on Friday. (Reuters)

Oil rallies to best week in years after OPEC output deal

The oil cartel OPEC has agreed to its first production cut&nbsp;in eight years.

Ministers confirmed the cut in oil production has been secured from 33.8 million barrels a day to 32.5 million barrels a day. This has been done to increase&nbsp;prices since they fell more than half since 2014.

There has been a conspicuous oversupply globally and the shale production in the US is booming. There is also a possibility of the US shale producers to increase output and fill in gaps in supply.

Oil prices surged post the announcement&nbsp;and beat trading volume records. Most experts feel the trend would remain modest by historical comparison as other producers will fill the gap unless decided otherwise in the next OPEC meeting.

As soon as the deal was announced, Brent crude saw an uptick of over 8 per cent trading at 50.12 dollars per barrel.

Russia, which is the non-OPEC&nbsp;member, will be reducing oil production by 300,000&nbsp;per barrel per day. Iran has been exempted from this understanding.

All the OPEC&nbsp;member nations, 14 of them to be precise, will meet the non-OPEC&nbsp;producers on December 9th to assess how much each country will produce.

A wire report mentioned that Algeria, Venezuela and Kuwait have agreed to monitor compliance of the OPEC&nbsp;agreement.

Iraq will be reducing oil output by 200,000&nbsp;barrels a day to around 4,350,000&nbsp;barrels per day from January 2017.

According to analysts, Saudi Arabia&#39;s stagnating economy will stand to benefit from cuts and price hikes&nbsp;that follow.

The production cut is estimated to erase close to one&nbsp;per cent of oil output globally.

The pressure for the OPEC&nbsp;came in as globally there was an oversupply for over a decade that brought down the prices.

&nbsp;

Impact on India:

India stands to be negatively impacted on the back of this agreement. India is the fourth largest importer of crude oil as it imports 85 per cent of total oil and 95 per cent of gas from the OPEC&nbsp;nations.

The lower price of oil in the past immensely benefitted the Indian economy and helped patrol inflation. On the back of this deal, the fiscal deficit target and inflation will go through a cascading effect and stand to be impacted.&nbsp;

&nbsp;

Global round up

<ul>
	<li>OPEC TO REDUCE OUTPUT TO A RANGE OF 32.5-33.0 MILLION BARRELS PER DAY</li>
	<li>OPEC ESTIMATES ITS CURRENT OUTPUT AT 33.24 MILLION BARRELS PER DAY.</li>
	<li>MEETING ON DEC 9 TO DECIDE HOW MUCH EACH COUNTRY WILL PRODUCE</li>
	<li>IRAN BEEN EXEMPTED FROM THIS UNDERSTANDING</li>
	<li>POSSIBILITY OF US SHALE PRODUCERS TO INCREASE OUTPUT AND FILL IN GAPS IN SUPPLY.</li>
	<li>SAUDI ARABIA&#39;S STAGNATING ECONOMY TO BENEFIT FROM CUTS AND PRICE HIKE THAT FOLLOW</li>
</ul>

(WION) 
&nbsp;

Ministers confirmed the cut in oil production has been secured from 33.8 million barrels a day to 32.5 million barrels

The oil cartel OPEC has agreed to its first production cut in eight years. Ministers confirmed the cut in oil production has been secured from 33.8 million barrels a day to 32.5 million barrels a day. This has been done to increase prices since they fell more than half since 2014. There has been a conspicuous oversupply globally and the shale production in the US is booming. There is also a possibility of the US shale producers to increase output and fill in gaps in supply. Oil prices surged post the announcement and beat trading volume records. Most experts feel the trend would remain modest by historical comparison as other producers will fill the gap unless decided otherwise in the next OPEC meeting. As soon as the deal was announced, Brent crude saw an uptick of over 8 per cent trading at 50.12 dollars per barrel. Russia, which is the non-OPEC member, will be reducing oil production by 300,000 per barrel per day. Iran has been exempted from this understanding. All the OPEC member nations, 14 of them to be precise, will meet the non-OPEC producers on December 9th to assess how much each country will produce. A wire report mentioned that Algeria, Venezuela and Kuwait have agreed to monitor compliance of the OPEC agreement. Iraq will be reducing oil output by 200,000 barrels a day to around 4,350,000 barrels per day from January 2017. According to analysts, Saudi Arabia's stagnating economy will stand to benefit from cuts and price hikes that follow. The production cut is estimated to erase close to one per cent of oil output globally. The pressure for the OPEC came in as globally there was an oversupply for over a decade that brought down the prices. Impact on India: India stands to be negatively impacted on the back of this agreement. India is the fourth largest importer of crude oil as it imports 85 per cent of total oil and 95 per cent of gas from the OPEC nations. The lower price of oil in the past immensely benefitted the Indian economy and helped patrol inflation. On the back of this deal, the fiscal deficit target and inflation will go through a cascading effect and stand to be impacted. Global round up OPEC TO REDUCE OUTPUT TO A RANGE OF 32.5-33.0 MILLION BARRELS PER DAY OPEC ESTIMATES ITS CURRENT OUTPUT AT 33.24 MILLION BARRELS PER DAY. MEETING ON DEC 9 TO DECIDE HOW MUCH EACH COUNTRY WILL PRODUCE IRAN BEEN EXEMPTED FROM THIS UNDERSTANDING POSSIBILITY OF US SHALE PRODUCERS TO INCREASE OUTPUT AND FILL IN GAPS IN SUPPLY. SAUDI ARABIA'S STAGNATING ECONOMY TO BENEFIT FROM CUTS AND PRICE HIKE THAT FOLLOW (WION)

OPEC countries agree to first production cut in 8 years

Saudi Oil Minister Khalid al-Falih said on Monday that the present cycle of falling crude prices is close to an end amid improving market fundamentals.

Oil prices are currently around $50 per barrel after hitting the lowest in a decade in January, reaching $30 and down from a peak of more than $100 in mid-2014.

&quot;The current down cycle is nearing an end,&quot; Falih told a joint press conference with his Russian counterpart Alexander Novak on Sunday after a Gulf ministerial meeting in Riyadh, news agency AFP&nbsp;reported.

&quot;Market fundamentals, in terms of supply and demand, have begun to improve,&quot; Falih said, adding: &quot;We are optimistic that oil prices will continue to improve in the future.&quot;

Qatar&#39;s energy minister, Mohammed al-Sada, whose country holds the rotating presidency of the OPEC oil exporting cartel, also assured that &nbsp;the &quot;difficult phase is over&quot;.

&quot;Although the market is heading to being balanced, it needs our joint effort, and we all agreed that we need to take measures to bring back this balance,&quot; he said, AFP reported.

Novak said ways to &quot;develop the best mechanism to solve the issue of stabilisation&quot; were discussed in the meeting.

&quot;We have reached an unprecedented level in our relations and cooperation&quot; with Saudi Arabia, he told reporters, adding that he agreed with Falih &quot;to continue to work and remain in continuous contact to achieve... Concrete mechanisms&quot;.

Meanwhile, OPEC has called a meeting with Russia and important non-members later this month as the cartel and Moscow look towards tightening cooperation to boost the historically low crude oil &nbsp;prices.

The cartel and Russia will also meet on Tuesday, ahead of the OPEC technical meeting in Vienna on October 28 to 29.

Last month at a meeting in Algiers, the OPEC agreed to its first production cut in eight years.

President Nicolas Maduro of OPEC member Venezuela, a country deep in economic and political crisis aggravated by falling oil prices, was in Riyadh on Sunday for talks.

His visit comes a day after calling in Iran for increased cooperation between oil-rich countries in a bid to stabilise prices.

&nbsp;

 
(WION with inputs from AFP) 
&nbsp;

Qatar's energy minister Mohammed al-Sada has also said the 'difficult phase is over'

Saudi Oil Minister Khalid al-Falih said on Monday that the present cycle of falling crude prices is close to an end amid improving market fundamentals. Oil prices are currently around $50 per barrel after hitting the lowest in a decade in January, reaching $30 and down from a peak of more than $100 in mid-2014. "The current down cycle is nearing an end," Falih told a joint press conference with his Russian counterpart Alexander Novak on Sunday after a Gulf ministerial meeting in Riyadh, news agency AFP reported. "Market fundamentals, in terms of supply and demand, have begun to improve," Falih said, adding: "We are optimistic that oil prices will continue to improve in the future." Qatar's energy minister, Mohammed al-Sada, whose country holds the rotating presidency of the OPEC oil exporting cartel, also assured that the "difficult phase is over". "Although the market is heading to being balanced, it needs our joint effort, and we all agreed that we need to take measures to bring back this balance," he said, AFP reported. Novak said ways to "develop the best mechanism to solve the issue of stabilisation" were discussed in the meeting. "We have reached an unprecedented level in our relations and cooperation" with Saudi Arabia, he told reporters, adding that he agreed with Falih "to continue to work and remain in continuous contact to achieve... Concrete mechanisms". Meanwhile, OPEC has called a meeting with Russia and important non-members later this month as the cartel and Moscow look towards tightening cooperation to boost the historically low crude oil prices. The cartel and Russia will also meet on Tuesday, ahead of the OPEC technical meeting in Vienna on October 28 to 29. Last month at a meeting in Algiers, the OPEC agreed to its first production cut in eight years. President Nicolas Maduro of OPEC member Venezuela, a country deep in economic and political crisis aggravated by falling oil prices, was in Riyadh on Sunday for talks. His visit comes a day after calling in Iran for increased cooperation between oil-rich countries in a bid to stabilise prices. (WION with inputs from AFP)

Oil price down cycle 'nearing end', says  Saudi oil minister

Iranian oil minister, Bijan Zanganeh said today, that the country wants its pre-sanctions share of the crude oil market. 
 
This dampens the prospects of agreement on an output freeze at an Organization of the Petroleum Exporting Countries (OPEC) meeting next month.&nbsp; 
 
&quot;Iran had no role in disrupting the stability of the oil market and after the (lifting of) sanctions we seek to revive our share in the global crude market,&quot; the ministry&#39;s SHANA news service quoted him as saying.&nbsp; 
 
On Thursday, he had announced he would attend the informal OPEC meeting in Algiers in late September, on a possible output freeze with Russia. 
 
But today he insisted Iran would not be abandoning its ambitions to restore its market share after the nuclear agreement with world powers led to the&nbsp;lifting of sanctions on its oil exports last year. 
 
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<h5>&quot;Iran will cooperate with OPEC on improving prices and the state of the crude market, but we expect our right to restore our lost market share in the market to be considered,&quot; Iran&#39;s oil minister said.</h5>
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&quot;Iran will cooperate with OPEC on improving prices and the state of the crude market, but we expect our right to restore our lost market share in the market to be considered,&quot; Zanganeh said. 
 
&quot;Iran has made its sacrifices for the market and it`s no longer the time for Iran,&quot; &nbsp;Iranian website, Mizan Online, reported him saying. 
 
Iran has doubled its exports of oil and gas to 2.7 million barrels per day (bpd) since signing the nuclear deal. 
The total output has risen from 2.7 million bpd to 3.85 million bpd. It is close to the level before international sanctions were imposed in 2012.&nbsp; 
 
&quot;When the instability occurred in the market, ... Iran&#39;s oil exports were less than one million bpd,&quot; Bijan Zanganeh said.&nbsp; 
 
&quot;We expect those who disrupted the market&#39;s stability to take the highest responsibility in restoring stability&quot; he said. 
 
Earlier on Friday, prices fell in Asian trade after Saudi energy minister Khalid Al-Falih played down prospects of any major move on output. 
 
&quot;I don&#39;t believe that an intervention of significance is required. I certainly don&#39;t advocate a cut,&quot; he told Bloomberg News. 
 
In April, OPEC&#39;s attempt to freeze output collapsed due to Iran&#39;s refusal to join talks. 
 
(WION with inputs from AFP)

This could dampen the prospects of agreement on an output freeze at an OPEC meeting in September

Iranian oil minister, Bijan Zanganeh said today, that the country wants its pre-sanctions share of the crude oil market. This dampens the prospects of agreement on an output freeze at an Organization of the Petroleum Exporting Countries (OPEC) meeting next month. "Iran had no role in disrupting the stability of the oil market and after the (lifting of) sanctions we seek to revive our share in the global crude market," the ministry's SHANA news service quoted him as saying. On Thursday, he had announced he would attend the informal OPEC meeting in Algiers in late September, on a possible output freeze with Russia. But today he insisted Iran would not be abandoning its ambitions to restore its market share after the nuclear agreement with world powers led to the lifting of sanctions on its oil exports last year. "Iran will cooperate with OPEC on improving prices and the state of the crude market, but we expect our right to restore our lost market share in the market to be considered," Iran's oil minister said. "Iran will cooperate with OPEC on improving prices and the state of the crude market, but we expect our right to restore our lost market share in the market to be considered," Zanganeh said. "Iran has made its sacrifices for the market and it`s no longer the time for Iran," Iranian website, Mizan Online, reported him saying. Iran has doubled its exports of oil and gas to 2.7 million barrels per day (bpd) since signing the nuclear deal. The total output has risen from 2.7 million bpd to 3.85 million bpd. It is close to the level before international sanctions were imposed in 2012. "When the instability occurred in the market, ... Iran's oil exports were less than one million bpd," Bijan Zanganeh said. "We expect those who disrupted the market's stability to take the highest responsibility in restoring stability" he said. Earlier on Friday, prices fell in Asian trade after Saudi energy minister Khalid Al-Falih played down prospects of any major move on output. "I don't believe that an intervention of significance is required. I certainly don't advocate a cut," he told Bloomberg News. In April, OPEC's attempt to freeze output collapsed due to Iran's refusal to join talks. (WION with inputs from AFP)

Iran wants pre-sanctions crude oil market share

Oil prices dipped on Friday morning after Saudi&#39;s energy minister lowered&nbsp;expectations of strong market intervention by producers in next month&#39;s talks. 
 
International benchmark Brent crude oil prices were trading at $49.55 per&nbsp;barrel at 0114 GMT, 12 cents below their previous close. 
 
US West Texas Intermediate (WTI) crude was seven cents below at $47.26 a&nbsp;barrel. 
 
Saudi Arabian Energy Minister Khalid Al-Falih told Reuters late on Thursday&nbsp;that &quot;we don&#39;t believe any significant intervention in the market is necessary&nbsp;other than to allow the forces of supply and demand to do the work for us,&quot;&nbsp;adding that the &quot;market is moving in the right direction&quot; already. 
 
Members of the Organization of Petroleum Exporting Countries (OPEC) will&nbsp;meet at the International Energy Forum (IEF), with producers and consumers,&nbsp;in Algeria in the last week of September. 
 
The minister&#39;s comments dampened expectations of a significant intervention&nbsp;into the market which has been marked by oversupply for more than two years. 
 
(WION with inputs from agencies)

The oil market has been marked by oversupply for more than two years now

Oil prices dipped on Friday morning after Saudi's energy minister lowered expectations of strong market intervention by producers in next month's talks. International benchmark Brent crude oil prices were trading at $49.55 per barrel at 0114 GMT, 12 cents below their previous close. US West Texas Intermediate (WTI) crude was seven cents below at $47.26 a barrel. Saudi Arabian Energy Minister Khalid Al-Falih told Reuters late on Thursday that "we don't believe any significant intervention in the market is necessary other than to allow the forces of supply and demand to do the work for us," adding that the "market is moving in the right direction" already. Members of the Organization of Petroleum Exporting Countries (OPEC) will meet at the International Energy Forum (IEF), with producers and consumers, in Algeria in the last week of September. The minister's comments dampened expectations of a significant intervention into the market which has been marked by oversupply for more than two years. (WION with inputs from agencies)

Oil prices dip as Saudi Arabia dampens output freeze expectations

Crude prices fell today as continued worries over a global oil glut and profit-taking on gains of nearly 3 per cent from the previous session beat down upwards momentum from a possible meeting of oil producers.&nbsp; 
 
Venezuelan Oil Minister Eulogio del Pino said on Monday that a meeting between the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC countries may take place &quot;in the coming weeks&quot; as the crisis-stricken South American nation sought support to prop up weak oil markets.&nbsp; 
 
Some OPEC officials have said a global oil output freeze could be discussed at an already scheduled September meeting of the organization, but non-OPEC Russia, the world&#39;s largest oil producer, said it does not see any grounds for holding production at current levels.&nbsp; 
 
Since the plunge in oil prices that began in mid-2014, Venezuela has repeatedly tried to broker deals to freeze production and reduce a supply glut, with limited success.&nbsp; 
 
&quot;Crude prices have been rising, so there may be no deal at OPEC,&quot; Kaname Gokon at brokerage Okato Shoji in Tokyo. &quot;Russia seems to be keeping a distance from OPEC.&quot;&nbsp; 
 
London Brent crude for October delivery was down 30 cents at $45.09 a barrel by 0608 GMT, after settling up $1.12, or 2.5 per cent, on Monday. After falling nearly 15 per cent in July, Brent prices so far this month are up about 6 per cent.&nbsp; 
 
NYMEX crude for September delivery was down 28 cents at $42.74 a barrel, after closing up $1.22, or 2.9 per cent, on Monday. The US benchmark lost about 14 per cent last month and is up about 2.5 per cent in August.&nbsp; 
 
Qatar&#39;s Energy Minister and OPEC President Mohammad bin Saleh al-Sada said on Monday the oil market is on the path to rebalancing despite the recent decline in global oil prices, adding that OPEC was in continuous talks to stabilise the market.&nbsp; 
 
Market intelligence firm Genscape reported a build of more than 307,000 barrels at the Cushing, Oklahoma delivery hub for WTI futures in the week to August 5 traders said, even as analysts forecast in a Reuters poll a total U.S. crude inventory drop of 1 million barrels. 
 
Industry group the American Petroleum Institute is due to release its weekly oil data at 4:30 pm EDT (2030 GMT) later on Tuesday.&nbsp; 
 
(Reuters) 
&nbsp;

Non-OPEC Russia, the world's largest oil producer, said it does not see any grounds for holding production at current levels

Crude prices fell today as continued worries over a global oil glut and profit-taking on gains of nearly 3 per cent from the previous session beat down upwards momentum from a possible meeting of oil producers. Venezuelan Oil Minister Eulogio del Pino said on Monday that a meeting between the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC countries may take place "in the coming weeks" as the crisis-stricken South American nation sought support to prop up weak oil markets. Some OPEC officials have said a global oil output freeze could be discussed at an already scheduled September meeting of the organization, but non-OPEC Russia, the world's largest oil producer, said it does not see any grounds for holding production at current levels. Since the plunge in oil prices that began in mid-2014, Venezuela has repeatedly tried to broker deals to freeze production and reduce a supply glut, with limited success. "Crude prices have been rising, so there may be no deal at OPEC," Kaname Gokon at brokerage Okato Shoji in Tokyo. "Russia seems to be keeping a distance from OPEC." London Brent crude for October delivery was down 30 cents at $45.09 a barrel by 0608 GMT, after settling up $1.12, or 2.5 per cent, on Monday. After falling nearly 15 per cent in July, Brent prices so far this month are up about 6 per cent. NYMEX crude for September delivery was down 28 cents at $42.74 a barrel, after closing up $1.22, or 2.9 per cent, on Monday. The US benchmark lost about 14 per cent last month and is up about 2.5 per cent in August. Qatar's Energy Minister and OPEC President Mohammad bin Saleh al-Sada said on Monday the oil market is on the path to rebalancing despite the recent decline in global oil prices, adding that OPEC was in continuous talks to stabilise the market. Market intelligence firm Genscape reported a build of more than 307,000 barrels at the Cushing, Oklahoma delivery hub for WTI futures in the week to August 5 traders said, even as analysts forecast in a Reuters poll a total U.S. crude inventory drop of 1 million barrels. Industry group the American Petroleum Institute is due to release its weekly oil data at 4:30 pm EDT (2030 GMT) later on Tuesday. (Reuters)

Oil falls as glut, profit-taking beat back optimism over OPEC meet

German flag carrier Lufthansa warned Tuesday that &quot;horrific&quot; terror attacks in Europe were having a &quot;tangible impact&quot; on business, with second-quarter profits down 17 per cent. 
 
Advance bookings were down sharply, the airline said, as net profits for the three months ending June came in at 437 million euros ($488 million). 
 
&quot;Horrific terror attacks are making people feel unsafe,&quot; chief executive Carsten Spohr said in a conference call with reporters on Tuesday. 
 
&quot;Because of repeated terror attacks in Europe and political and economic uncertainty, advance bookings, especially on long-haul flights to Europe, have fallen significantly,&quot; finance director Simone Menne said. 
 
The weak profits came despite the lower oil price, which resulted in a fuel cost boon of 597 million Euros. Compared with the figure for the first half of 2015, net profits took a 55 per cent blow, falling to 429 million Euros. 
 
Lufthansa had already said last month that the jittery atmosphere in Europe was hitting its business and considered &quot;a complete recovery as not likely anymore.&quot; Its European rival Air France-KLM also warned last week about the impact of recent attacks on the airline. 
 
Air France-KLM&#39;s chief financial officer Pierre-Francois Riolacci said unit revenue fell by 5.6 per cent in the second quarter, which he put down to the sluggish global economic recovery and &quot;most of all the effect of the terror attacks that have struck Europe in recent quarters&quot;. 
 
A spate of attacks targeting France and Germany at the height of peak tourist season in Europe has hurt the industry. France, the world&#39;s top tourist destination, is reeling from an attack at the Riviera town of Nice on Bastille Day when a gunman drove a 19-tonne truck into a crowd of revellers, killing 84. 
 
That was the third major strike against France in less than 18 months, coming just eight months after Islamic State gunmen and suicide bombers stormed bars, restaurants, a concert hall and the national stadium in Paris, killing 130 people. 
 
In January last year, 17 were killed in another assault at various sites including the offices of the Charlie Hebdo magazine and a Jewish supermarket in Paris. 
 
Germany was meanwhile hit in July by an axe attack that left five people, including four tourists from Hong Kong, wounded, a gun rampage, a machete assault and a suicide bomb attack. 
 
A spokeswoman for the German tourism board told AFP last week that &quot;there haven&#39;t been any cancellations&quot; in the immediate aftermath of the attacks in Europe&#39;s biggest economy. 
 
But in France, flight reservations following the Nice attack were down 20 per cent. Between January and July 10 arrivals to France by air were down 5.8 per cent, and down 11 per cent to Paris. 
 
(AFP) 
&nbsp;

The weak profits for the airline have come in despite the lower oil price, which resulted in a fuel cost boon of 597 million Euros

German flag carrier Lufthansa warned Tuesday that "horrific" terror attacks in Europe were having a "tangible impact" on business, with second-quarter profits down 17 per cent. Advance bookings were down sharply, the airline said, as net profits for the three months ending June came in at 437 million euros ($488 million). "Horrific terror attacks are making people feel unsafe," chief executive Carsten Spohr said in a conference call with reporters on Tuesday. "Because of repeated terror attacks in Europe and political and economic uncertainty, advance bookings, especially on long-haul flights to Europe, have fallen significantly," finance director Simone Menne said. The weak profits came despite the lower oil price, which resulted in a fuel cost boon of 597 million Euros. Compared with the figure for the first half of 2015, net profits took a 55 per cent blow, falling to 429 million Euros. Lufthansa had already said last month that the jittery atmosphere in Europe was hitting its business and considered "a complete recovery as not likely anymore." Its European rival Air France-KLM also warned last week about the impact of recent attacks on the airline. Air France-KLM's chief financial officer Pierre-Francois Riolacci said unit revenue fell by 5.6 per cent in the second quarter, which he put down to the sluggish global economic recovery and "most of all the effect of the terror attacks that have struck Europe in recent quarters". A spate of attacks targeting France and Germany at the height of peak tourist season in Europe has hurt the industry. France, the world's top tourist destination, is reeling from an attack at the Riviera town of Nice on Bastille Day when a gunman drove a 19-tonne truck into a crowd of revellers, killing 84. That was the third major strike against France in less than 18 months, coming just eight months after Islamic State gunmen and suicide bombers stormed bars, restaurants, a concert hall and the national stadium in Paris, killing 130 people. In January last year, 17 were killed in another assault at various sites including the offices of the Charlie Hebdo magazine and a Jewish supermarket in Paris. Germany was meanwhile hit in July by an axe attack that left five people, including four tourists from Hong Kong, wounded, a gun rampage, a machete assault and a suicide bomb attack. A spokeswoman for the German tourism board told AFP last week that "there haven't been any cancellations" in the immediate aftermath of the attacks in Europe's biggest economy. But in France, flight reservations following the Nice attack were down 20 per cent. Between January and July 10 arrivals to France by air were down 5.8 per cent, and down 11 per cent to Paris. (AFP)

Lufthansa says terror attacks impacting business

French growth stagnated in the second quarter of the year, statistics bureau INSEE reported today, a &quot;disappointing&quot; result that dashed hopes of a small economic expansion. 
 
France&#39;s gross domestic product (GDP) showed no change in the three months to June, according to a first estimate, after rising a revised 0.7 per cent in the first quarter. The finance ministry called the flat figure &quot;disappointing&quot;, given that INSEE had predicted 0.3 per cent growth and the Bank of France 0.2 per cent.&nbsp; 
 
The ministry said, however, it stood by its own growth forecast of 1.5 per cent for 2016. But such optimism had analysts scratching their heads. &quot;Which factors could possibly reverse the trend and give us growth drivers which would allow reaching the 1.5 per cent promised by the government?&quot; asked Philippe Waechter, chief economist at Natixis. 
 
Consumer spending stagnated, having driven growth with a 1.2-per cent increase in the three previous months, INSEE said. Food spending dropped, as did services as start-of-year spending on tickets and accommodation for the Euro 2016 football championships dropped out of the equation, INSEE said. Mathieu Plane, of economic think-tank OFCE, called the French slowdown &quot;very pronounced&quot; as well as &quot;pretty surprising&quot;.&nbsp; 
 
Given the end of austerity policies in France and accommodating monetary policy by the European Central Bank, &quot;We should be expecting growth picking up&quot;, Plane said. &quot;But that&#39;s not happening,&quot; he told AFP. &quot;That&#39;s not good.&quot;&nbsp; 
 
Investment, which fell for both companies and the public sector, will be key rekindling growth, Natixis&#39;s Waechter said, warning however that Brexit, attacks in France, and uncertainty surrounding the upcoming US election should be expected to put the brakes on capital spending. &quot;All these factors produce uncertainty and may well prompt company chiefs to delay investment,&quot; he said. 
 
Oil refinery strikes in May and June weighed on overall production, which dropped 0.2 per cent, and the construction sector also weakened. France&#39;s trade balance, however, made a positive contribution of 0.3 percentage points to GDP thanks to a sharp slowdown in imports of manufactured goods and oil products. 
 
(AFP)

The French finance ministry expected a marginal increase of 0.2-0.3 per cent, but the growth figure remained flat

French growth stagnated in the second quarter of the year, statistics bureau INSEE reported today, a "disappointing" result that dashed hopes of a small economic expansion. France's gross domestic product (GDP) showed no change in the three months to June, according to a first estimate, after rising a revised 0.7 per cent in the first quarter. The finance ministry called the flat figure "disappointing", given that INSEE had predicted 0.3 per cent growth and the Bank of France 0.2 per cent. The ministry said, however, it stood by its own growth forecast of 1.5 per cent for 2016. But such optimism had analysts scratching their heads. "Which factors could possibly reverse the trend and give us growth drivers which would allow reaching the 1.5 per cent promised by the government?" asked Philippe Waechter, chief economist at Natixis. Consumer spending stagnated, having driven growth with a 1.2-per cent increase in the three previous months, INSEE said. Food spending dropped, as did services as start-of-year spending on tickets and accommodation for the Euro 2016 football championships dropped out of the equation, INSEE said. Mathieu Plane, of economic think-tank OFCE, called the French slowdown "very pronounced" as well as "pretty surprising". Given the end of austerity policies in France and accommodating monetary policy by the European Central Bank, "We should be expecting growth picking up", Plane said. "But that's not happening," he told AFP. "That's not good." Investment, which fell for both companies and the public sector, will be key rekindling growth, Natixis's Waechter said, warning however that Brexit, attacks in France, and uncertainty surrounding the upcoming US election should be expected to put the brakes on capital spending. "All these factors produce uncertainty and may well prompt company chiefs to delay investment," he said. Oil refinery strikes in May and June weighed on overall production, which dropped 0.2 per cent, and the construction sector also weakened. France's trade balance, however, made a positive contribution of 0.3 percentage points to GDP thanks to a sharp slowdown in imports of manufactured goods and oil products. (AFP)

France reports zero growth in GDP

Former Brazilian president Luiz Inacio Lula da Silva, who was key in getting the Olympics to Rio, will be put on trial for allegedly trying to obstruct a corruption probe at Petrobras oil company, officials said yesterday. 
 
&quot;The charge is obstruction of justice&quot; linked to the Petrobras embezzlement probe, named Operation Car Wash, a spokesman for the justice ministry told AFP. 
 
Lula was formally charged along with six others, including former senator Delcidio do Amaral, a once-important ally in Lula&#39;s leftist Workers&#39; Party who is accused of Petrobras-related corruption and has turned state&#39;s witness. 
 
Lula, as he is universally known in Brazil, was president from 2003-2010 and left office with massive popularity thanks to social programs that lifted tens of millions of Brazilians from poverty. 
 
He also was key in the 2009 winning bid by Rio de Janeiro to host South America&#39;s first Olympics, which start next Friday. 
 
However, his legacy has been badly tainted by the emergence of the Petrobras scandal in which dozens of politicians and executives are accused of having embezzled from the huge state oil company in a web of inflated contracts, kickbacks and bribes that lasted much of his presidency. 
 
Lula is alleged to have been at the centre of the scheme. However, the charges on which he will stand trial are limited to allegedly attempting to obstruct the enquiry. 
 
Prosecutors have been told by Delcidio in his plea bargain that Lula had asked him to assist a Petrobras director charged in the corruption scheme. 
 
Lula accuses Delcidio of fabricating his testimony to attempt to save himself from a serious sentence in his own case. 
 
Lula&#39;s spokesman issued a statement saying the charges were flimsy because they &quot;are based uniquely on (evidence from) a plea bargain.&quot; 
 
&quot;Lula has never opposed the investigations,&quot; the statement said. 
 
Olympics president 
 
The development comes a week before the opening of the Olympics and will reignite a simmering political crisis that has upended the Workers&#39; Party dominance of Brazil over the last 13 years. 
 
Lula&#39;s handpicked successor Dilma Rousseff faces an impeachment trial set to culminate days after the Olympics end. 
 
If the Senate votes to impeach by a two thirds majority, Rousseff will be removed from office and her bitter political enemy Michel Temer, who is currently serving as interim president, will take over. 
 
Rousseff is accused of breaking government budgeting rules, but has denounced the impeachment process as a coup in disguise aimed at putting Temer&#39;s center-right administration in power and destroying the Workers&#39; Party. 
 
Both Lula and Rousseff have declared they will boycott the Olympics opening ceremony, where Temer is to preside and declare the Games open. 
 
In an interview yesterday with foreign news organizations, including AFP, Temer said he expected Rousseff to be removed by the Senate in time for Brazil to know whom to send to the G20 summit in China at the start of September. 
 
&quot;We are hoping that the resolution of the impeachment comes between August 25 and 26, because if it takes to September 4, 5 or 6, Brazil will not be able to go to the G20,&quot; Temer said. 
 
Temer said he was already &quot;acting as if I will stay on&quot; and that &quot;the world needs to know who is the president.&quot; 
 
(AFP)

Lula is alleged to have been at the centre of a scandal accusing politicians and executives of embezzling from oil company Petrobras

Former Brazilian president Luiz Inacio Lula da Silva, who was key in getting the Olympics to Rio, will be put on trial for allegedly trying to obstruct a corruption probe at Petrobras oil company, officials said yesterday. "The charge is obstruction of justice" linked to the Petrobras embezzlement probe, named Operation Car Wash, a spokesman for the justice ministry told AFP. Lula was formally charged along with six others, including former senator Delcidio do Amaral, a once-important ally in Lula's leftist Workers' Party who is accused of Petrobras-related corruption and has turned state's witness. Lula, as he is universally known in Brazil, was president from 2003-2010 and left office with massive popularity thanks to social programs that lifted tens of millions of Brazilians from poverty. He also was key in the 2009 winning bid by Rio de Janeiro to host South America's first Olympics, which start next Friday. However, his legacy has been badly tainted by the emergence of the Petrobras scandal in which dozens of politicians and executives are accused of having embezzled from the huge state oil company in a web of inflated contracts, kickbacks and bribes that lasted much of his presidency. Lula is alleged to have been at the centre of the scheme. However, the charges on which he will stand trial are limited to allegedly attempting to obstruct the enquiry. Prosecutors have been told by Delcidio in his plea bargain that Lula had asked him to assist a Petrobras director charged in the corruption scheme. Lula accuses Delcidio of fabricating his testimony to attempt to save himself from a serious sentence in his own case. Lula's spokesman issued a statement saying the charges were flimsy because they "are based uniquely on (evidence from) a plea bargain." "Lula has never opposed the investigations," the statement said. Olympics president The development comes a week before the opening of the Olympics and will reignite a simmering political crisis that has upended the Workers' Party dominance of Brazil over the last 13 years. Lula's handpicked successor Dilma Rousseff faces an impeachment trial set to culminate days after the Olympics end. If the Senate votes to impeach by a two thirds majority, Rousseff will be removed from office and her bitter political enemy Michel Temer, who is currently serving as interim president, will take over. Rousseff is accused of breaking government budgeting rules, but has denounced the impeachment process as a coup in disguise aimed at putting Temer's center-right administration in power and destroying the Workers' Party. Both Lula and Rousseff have declared they will boycott the Olympics opening ceremony, where Temer is to preside and declare the Games open. In an interview yesterday with foreign news organizations, including AFP, Temer said he expected Rousseff to be removed by the Senate in time for Brazil to know whom to send to the G20 summit in China at the start of September. "We are hoping that the resolution of the impeachment comes between August 25 and 26, because if it takes to September 4, 5 or 6, Brazil will not be able to go to the G20," Temer said. Temer said he was already "acting as if I will stay on" and that "the world needs to know who is the president." (AFP)

Former Brazilian president to stand trial for obstruction of justice

After half a year of strong oil price rises, Asian crude demand is slowing and by some measures falling, and many market participants suspect it is not just a cyclical phenomenon, but also a product of more permanent structural changes.

With years of annual economic growth of 7-10 per cent in China and similar recent figures from India, Asia-Pacific has overtaken the Americas to become the world&#39;s biggest oil consuming region, accounting for almost 40 per cent of global demand.

But an industry that has come to rely on Asia&#39;s booming thirst for oil could soon be scratching around for growth.

Thomson Reuters Eikon data shows that Asian crude oil tanker imports have fallen, albeit from record levels, for four straight months and by 12 per cent since March to around 82 million tonnes (20 million barrels per day), slightly below last year&#39;s levels.

Much of the surprise decline is explained by conditions in China, the region&#39;s biggest consumer, accounting for 27 per cent of Asia-Pacific demand and 13 per cent of global demand.

With its long-term growth outlook now camped perhaps permanently below 7 per&nbsp;cent, most analysts expect vehicle sales in China will slow accordingly.

They have already slipped to 2.1 million at the end of May, down from a peak of almost 2.8 million in December 2015.

Refiners across Asia said that was starting to hit their business.

&quot;Asian oil demand growth is slowing down. China, Asia&#39;s largest market, is experiencing sluggish demand,&quot; said a South Korean refiner.

As domestic refiners sell off surplus fuel, China&#39;s exports of diesel and gasoline, the main refined fuels for industrial and passenger vehicles, have both soared.

&quot;Asia refiners have already started to pull back ... and there are reports of (oil) cargoes struggling to sell,&quot; said Adam Longson of Morgan Stanley this week in a note to clients, adding that demand in the third quarter could fall further.

Ship brokers say traders have started chartering supertankers to store supplies that consumers can&#39;t absorb.

One key pillar of recent demand is never coming back. Analysts think China has nearly finished building its strategic petroleum reserves (SPR).

Oil analysts at JPMorgan estimated in a note to clients last week that the SPR was now at 400 million barrels, which they believed was close to capacity.

&quot;Our model suggests a 15 per cent month-on-month decline in China&#39;s crude oil net imports in September, or a loss of 1.2 million barrels versus August and 0.8 million barrels less from the 12-month average,&quot; they said. 
&nbsp;

EFFICIENCY SAVINGS

Structural changes in demand are not limited to China.

For Asia&#39;s most developed oil markets, Japan and South Korea, analysts say long-term demand will steadily fall.

Japan&#39;s oil consumption, once 6 million barrels per day (bpd) and 10 per cent of global demand, has fallen to not much more than 3.5 million bpd, or under 5 per cent of world consumption. It will fall further as government consolidates its refiners.

&quot;There are various factors. Nuclear power generation has restarted, pushing down energy demand. When nuclear plants shut down (after the 2011 Fukushima disaster), Japan imported lots of crude. Other factors include shrinking population, saturated status of automobiles and efficiency improvement,&quot; said Kaname Gokon, strategist at brokerage Okato Shoji.

The situation is similar in South Korea.

&quot;Korea&#39;s oil demand is at a standstill, and demand is expected to decrease because of greenhouse gas emissions policy and alternative fuel. On top of that, if a growing number of people switch to use electric cars, oil demand is bound to fall,&quot; said Moon Young-seok, senior researcher at state-run Korea Energy Economics Institute.

Even in India, the industry&#39;s big hope to compensate for slower demand in China, demand for new cars is tepid.

While Indian motorbike sales remain strong, the number of new cars sold has fallen below 215,000 per month, down from almost 260,000 in October and well below the monthly record of just over 300,000 more than four years ago.

While industry doesn&#39;t expect Asian oil demand to decline outright, they say the growth seen over the past decade may never be revisited.

The fuel economy standards of new cars, which stagnated below 30 miles per gallon (mpg) between 1980 and 2010, have improved to around 40 mpg now and are expected to rise to mid-50 mpg by the early 2020s, according to industry estimates. That&#39;s without considering the rise of hybrid or pure electric vehicles.

&quot;Energy efficiency will play a huge role in slowing the growth in global demand, as energy use per unit of economic output is likely to fall by 40 per cent (between 2014 and 2040),&quot; US oil giant ExxonMobil says in its 2016 outlook. 
 
(Reuters)

The slowing Asian demand for crude is not just a cyclical phenomenon, but the product of more permanent structural changes

After half a year of strong oil price rises, Asian crude demand is slowing and by some measures falling, and many market participants suspect it is not just a cyclical phenomenon, but also a product of more permanent structural changes. With years of annual economic growth of 7-10 per cent in China and similar recent figures from India, Asia-Pacific has overtaken the Americas to become the world's biggest oil consuming region, accounting for almost 40 per cent of global demand. But an industry that has come to rely on Asia's booming thirst for oil could soon be scratching around for growth. Thomson Reuters Eikon data shows that Asian crude oil tanker imports have fallen, albeit from record levels, for four straight months and by 12 per cent since March to around 82 million tonnes (20 million barrels per day), slightly below last year's levels. Much of the surprise decline is explained by conditions in China, the region's biggest consumer, accounting for 27 per cent of Asia-Pacific demand and 13 per cent of global demand. With its long-term growth outlook now camped perhaps permanently below 7 per cent, most analysts expect vehicle sales in China will slow accordingly. They have already slipped to 2.1 million at the end of May, down from a peak of almost 2.8 million in December 2015. Refiners across Asia said that was starting to hit their business. "Asian oil demand growth is slowing down. China, Asia's largest market, is experiencing sluggish demand," said a South Korean refiner. As domestic refiners sell off surplus fuel, China's exports of diesel and gasoline, the main refined fuels for industrial and passenger vehicles, have both soared. "Asia refiners have already started to pull back ... and there are reports of (oil) cargoes struggling to sell," said Adam Longson of Morgan Stanley this week in a note to clients, adding that demand in the third quarter could fall further. Ship brokers say traders have started chartering supertankers to store supplies that consumers can't absorb. One key pillar of recent demand is never coming back. Analysts think China has nearly finished building its strategic petroleum reserves (SPR). Oil analysts at JPMorgan estimated in a note to clients last week that the SPR was now at 400 million barrels, which they believed was close to capacity. "Our model suggests a 15 per cent month-on-month decline in China's crude oil net imports in September, or a loss of 1.2 million barrels versus August and 0.8 million barrels less from the 12-month average," they said. EFFICIENCY SAVINGS Structural changes in demand are not limited to China. For Asia's most developed oil markets, Japan and South Korea, analysts say long-term demand will steadily fall. Japan's oil consumption, once 6 million barrels per day (bpd) and 10 per cent of global demand, has fallen to not much more than 3.5 million bpd, or under 5 per cent of world consumption. It will fall further as government consolidates its refiners. "There are various factors. Nuclear power generation has restarted, pushing down energy demand. When nuclear plants shut down (after the 2011 Fukushima disaster), Japan imported lots of crude. Other factors include shrinking population, saturated status of automobiles and efficiency improvement," said Kaname Gokon, strategist at brokerage Okato Shoji. The situation is similar in South Korea. "Korea's oil demand is at a standstill, and demand is expected to decrease because of greenhouse gas emissions policy and alternative fuel. On top of that, if a growing number of people switch to use electric cars, oil demand is bound to fall," said Moon Young-seok, senior researcher at state-run Korea Energy Economics Institute. Even in India, the industry's big hope to compensate for slower demand in China, demand for new cars is tepid. While Indian motorbike sales remain strong, the number of new cars sold has fallen below 215,000 per month, down from almost 260,000 in October and well below the monthly record of just over 300,000 more than four years ago. While industry doesn't expect Asian oil demand to decline outright, they say the growth seen over the past decade may never be revisited. The fuel economy standards of new cars, which stagnated below 30 miles per gallon (mpg) between 1980 and 2010, have improved to around 40 mpg now and are expected to rise to mid-50 mpg by the early 2020s, according to industry estimates. That's without considering the rise of hybrid or pure electric vehicles. "Energy efficiency will play a huge role in slowing the growth in global demand, as energy use per unit of economic output is likely to fall by 40 per cent (between 2014 and 2040)," US oil giant ExxonMobil says in its 2016 outlook. (Reuters)

Oil industry losing burn of Asian demand

Venezuela&#39;s oil revenues plummeted 40.7 per cent in 2015 due to sinking global oil prices, the country&#39;s state-owned oil and natural gas company,&nbsp;Petr?leos de Venezuela, S.A. (PDVSA)&nbsp;said in its annual report released Sunday.

PDVSA -- the world&#39;s fifth-largest oil company -- earned $72.2 billion in revenues last year, a sharp drop from 2014&#39;s $121.9 billion.

Meanwhile, its net profit fell 19 per cent to $7.3 billion.

The South American OPEC country relies heavily on its oil and gas reserves -- which account for 96 per cent of the country&#39;s exports and are the largest worldwide at more than 300 billion barrels.

The first half of 2016 saw the value of Venezuela&#39;s crude oil tumble to an average $31.15 per barrel, said the country&#39;s Ministry of Petroleum and Mining last Friday.

&quot;In 2014 the average price was $88. It is obvious that our earnings have dropped,&quot; said PDVSA president and Venezuela&#39;s Oil Minister Eulogio del Pino, in a Sunday interview broadcast by the private station Televen.

The sector&#39;s nose-dive has exacerbated the country&#39;s already dire economic situation in which 80 per cent of basic consumer products, including food and medicine, are in short supply.

Soaring prices and shortages have in turn led to riots, looting and vigilante justice.

President Nicolas Maduro blames the country&#39;s economic woes on a right-wing conspiracy, while the opposition is demanding a referendum to oust the leader. 
 
(AFP)

PDVSA - the world's fifth-largest oil company - earned $72.2 billion in revenues last year, a sharp drop from 2014's $121.9 billion

Venezuela's oil revenues plummeted 40.7 per cent in 2015 due to sinking global oil prices, the country's state-owned oil and natural gas company, Petr?leos de Venezuela, S.A. (PDVSA) said in its annual report released Sunday. PDVSA -- the world's fifth-largest oil company -- earned $72.2 billion in revenues last year, a sharp drop from 2014's $121.9 billion. Meanwhile, its net profit fell 19 per cent to $7.3 billion. The South American OPEC country relies heavily on its oil and gas reserves -- which account for 96 per cent of the country's exports and are the largest worldwide at more than 300 billion barrels. The first half of 2016 saw the value of Venezuela's crude oil tumble to an average $31.15 per barrel, said the country's Ministry of Petroleum and Mining last Friday. "In 2014 the average price was $88. It is obvious that our earnings have dropped," said PDVSA president and Venezuela's Oil Minister Eulogio del Pino, in a Sunday interview broadcast by the private station Televen. The sector's nose-dive has exacerbated the country's already dire economic situation in which 80 per cent of basic consumer products, including food and medicine, are in short supply. Soaring prices and shortages have in turn led to riots, looting and vigilante justice. President Nicolas Maduro blames the country's economic woes on a right-wing conspiracy, while the opposition is demanding a referendum to oust the leader. (AFP)

Venezuelan oil plummets in 2015, says PDVSA annual report

Oil&nbsp;prices surged on Friday, and&nbsp;Brent&nbsp;crude posted its largest&nbsp;weekly gain since mid May, as investors positioned for the start of third quarter trading, while a weaker Dollar boosted prices of most commodities.

The market shook off a closely-followed industry report that showed a fourth&nbsp;weekly rise in the last five in the number of US&nbsp;oil&nbsp;rigs operating. According to&nbsp;oil&nbsp;services firm Baker Hughes, producers added 11&nbsp;oil&nbsp;rigs this&nbsp;week, the biggest increase since December, signalling a near-two year rout in drilling may have ended.

&quot;Higher rigs indicate higher production, but we&#39;re still down by more than 300 rigs from a year ago, so no one&#39;s really too worried about it for now,&quot; said Phil Flynn, analyst at the Price Futures Group brokerage in Chicago.

Brent&nbsp;crude futures settled up 64 cents, or 1.3 per cent, at $50.35 a barrel. It was down 1 per cent early in the session.

US&nbsp;crude&#39;s West Texas Intermediate (WTI) futures&nbsp;rose 66 cents, or 1.4 per cent, to settle at $48.99.

Investors also bought&nbsp;oil&nbsp;after cashing out in the previous session on the market&#39;s largest quarterly gain in seven years. Crude prices gained about 25 per cent in the second quarter.

Friday&#39;s rebound came as the dollar index fell 0.5 per cent, making commodities denominated in the greenback more affordable for holders of the euro and other currencies.

Brent&#39;s 4 per cent rise since last Friday was the biggest in seven&nbsp;weeks, and was fed by a return of fund&nbsp;buying&nbsp;as the turmoil&nbsp;sparked by Britain&#39;s shock exit from the European Union receded. WTI gained nearly 3 per cent on the&nbsp;week.

Front-month volume in WTI was about three-quarters of Thursday&#39;s level, not typical for the eve of a long&nbsp;weekend. US&nbsp;financial and commodity markets will be closed on Monday for the Independence Day holiday.

&quot;There is some pre-holiday market positioning for the second half that&#39;s going on,&quot; said David Thompson, executive vice-president at Washington-based commodities-focused broker Powerhouse. &quot;People are also moving on from Brexit, accepting they have to deal with an &#39;organized divorce&#39; with Britain.&quot;

Even so, some were pessimistic of significant price gains in the second half.

British bank Barclays, for instance, cut its price forecasts by $3 a barrel for both&nbsp;oil&nbsp;benchmarks, forecasting&nbsp;Brent&nbsp;at $44 and WTI at $43 for the remainder of 2016.

&quot;Markets have experienced only the tip of the iceberg in terms of the impact of the UK&#39;s &#39;leave&#39; vote,&quot; Barclays analysts said in a note. 
 
(Reuters)

The return of fund-buying after the turmoil sparked by Brexit receded makes Brent crude reach a seven-week high

Oil prices surged on Friday, and Brent crude posted its largest weekly gain since mid May, as investors positioned for the start of third quarter trading, while a weaker Dollar boosted prices of most commodities. The market shook off a closely-followed industry report that showed a fourth weekly rise in the last five in the number of US oil rigs operating. According to oil services firm Baker Hughes, producers added 11 oil rigs this week, the biggest increase since December, signalling a near-two year rout in drilling may have ended. "Higher rigs indicate higher production, but we're still down by more than 300 rigs from a year ago, so no one's really too worried about it for now," said Phil Flynn, analyst at the Price Futures Group brokerage in Chicago. Brent crude futures settled up 64 cents, or 1.3 per cent, at $50.35 a barrel. It was down 1 per cent early in the session. US crude's West Texas Intermediate (WTI) futures rose 66 cents, or 1.4 per cent, to settle at $48.99. Investors also bought oil after cashing out in the previous session on the market's largest quarterly gain in seven years. Crude prices gained about 25 per cent in the second quarter. Friday's rebound came as the dollar index fell 0.5 per cent, making commodities denominated in the greenback more affordable for holders of the euro and other currencies. Brent's 4 per cent rise since last Friday was the biggest in seven weeks, and was fed by a return of fund buying as the turmoil sparked by Britain's shock exit from the European Union receded. WTI gained nearly 3 per cent on the week. Front-month volume in WTI was about three-quarters of Thursday's level, not typical for the eve of a long weekend. US financial and commodity markets will be closed on Monday for the Independence Day holiday. "There is some pre-holiday market positioning for the second half that's going on," said David Thompson, executive vice-president at Washington-based commodities-focused broker Powerhouse. "People are also moving on from Brexit, accepting they have to deal with an 'organized divorce' with Britain." Even so, some were pessimistic of significant price gains in the second half. British bank Barclays, for instance, cut its price forecasts by $3 a barrel for both oil benchmarks, forecasting Brent at $44 and WTI at $43 for the remainder of 2016. "Markets have experienced only the tip of the iceberg in terms of the impact of the UK's 'leave' vote," Barclays analysts said in a note. (Reuters)

?Oil jumps on pre-holiday buying, Brent up 4 per cent?

Oil prices fell in early trade on Thursday, with Brent futures struggling to defend $50 per barrel as fears over strike outages in Norway faded and as Nigeria&#39;s production improved. 
 
Brent Blend is a type of sweet crude oil that is used as a benchmark for the prices of other crude oils. It&nbsp;is most often found in parts of the North Sea off the coast of the UK&nbsp;and Norway. Brent blend makes up more than half of the world&#39;s globally traded supply of crude oil, which is why it makes an obvious choice for the benchmark of crude oil. 
 
International Brent crude oil futures were trading at $50.10 per barrel at 0126 GMT, down 51 cents, or 1 per cent, from their last settlement. US&nbsp;West Texas Intermediate (WTI) crude futures were down 38 cents, or 0.76 per cent, at $49.50 a barrel. 
 
Traders said the lower prices were a result of an improving supply outlook. 
 
Initial fears of sharp production cuts from a looming strike by Norway&#39;s oil and gas workers seemed to ease as output from the North Sea&#39;s biggest producer would only fall by about 7 per cent even in case of a walk-out, according to data from Norway&#39;s Petroleum Directorate. 
 
In Nigeria, violent attacks on the oil infrastructure knocked out some 600,000 barrels of daily oil production to around 1.25 million barrels per day (bpd) between January and mid-June. But a tentative ceasefire means output has recovered by 200,000-300,000 bpd since then. 
 
&quot;If sustainable, this ceasefire would pave the way for higher output, with the government optimistically aiming for a return to normal production by end-July,&quot; Goldman Sachs said, although it added that there was a risk of attacks resuming. 
 
Prior to the disruptions, Nigerian production stood around 2 million bpd. 
 
Goldman Sachs also said that production outages from Canadian wildfires since May, which peaked around 1.5 million bpd, would recover over the coming months and virtually end by September. 
 
In other regions, however, there were signs of a tightening market. 
 
The US&nbsp;Energy Information Administration reported on Wednesday that crude stockpiles fell 4.1 million barrels in the week to June 24, the sixth consecutive week of drawdowns, to 526.6 million barrels. 
 
US&nbsp;crude oil production was at 8.62 million bpd, down from a peak of over 9.6 million bpd in June 2015. 
 
In the Middle East, OPEC&#39;s second biggest producer Iraq is set to see output fall for a second straight month in June. 
 
Iraq&#39;s seaborne exports in the first 29 days of June have averaged 3.14 million bpd, according to loading data tracked by Reuters and an industry source. That would be down 60,000 bpd from May. 
 
(Reuters)

Sharp production cuts from possible strike by Norway's oil workers seem to ease as output would fall only by 7 per cent in case of walk-out

Oil prices fell in early trade on Thursday, with Brent futures struggling to defend $50 per barrel as fears over strike outages in Norway faded and as Nigeria's production improved. Brent Blend is a type of sweet crude oil that is used as a benchmark for the prices of other crude oils. It is most often found in parts of the North Sea off the coast of the UK and Norway. Brent blend makes up more than half of the world's globally traded supply of crude oil, which is why it makes an obvious choice for the benchmark of crude oil. International Brent crude oil futures were trading at $50.10 per barrel at 0126 GMT, down 51 cents, or 1 per cent, from their last settlement. US West Texas Intermediate (WTI) crude futures were down 38 cents, or 0.76 per cent, at $49.50 a barrel. Traders said the lower prices were a result of an improving supply outlook. Initial fears of sharp production cuts from a looming strike by Norway's oil and gas workers seemed to ease as output from the North Sea's biggest producer would only fall by about 7 per cent even in case of a walk-out, according to data from Norway's Petroleum Directorate. In Nigeria, violent attacks on the oil infrastructure knocked out some 600,000 barrels of daily oil production to around 1.25 million barrels per day (bpd) between January and mid-June. But a tentative ceasefire means output has recovered by 200,000-300,000 bpd since then. "If sustainable, this ceasefire would pave the way for higher output, with the government optimistically aiming for a return to normal production by end-July," Goldman Sachs said, although it added that there was a risk of attacks resuming. Prior to the disruptions, Nigerian production stood around 2 million bpd. Goldman Sachs also said that production outages from Canadian wildfires since May, which peaked around 1.5 million bpd, would recover over the coming months and virtually end by September. In other regions, however, there were signs of a tightening market. The US Energy Information Administration reported on Wednesday that crude stockpiles fell 4.1 million barrels in the week to June 24, the sixth consecutive week of drawdowns, to 526.6 million barrels. US crude oil production was at 8.62 million bpd, down from a peak of over 9.6 million bpd in June 2015. In the Middle East, OPEC's second biggest producer Iraq is set to see output fall for a second straight month in June. Iraq's seaborne exports in the first 29 days of June have averaged 3.14 million bpd, according to loading data tracked by Reuters and an industry source. That would be down 60,000 bpd from May. (Reuters)

Oil prices fall as supply outlook of Nigeria and Norway improves

Forest fires that blanketed Southeast Asia in thick haze last year released the greatest amount of climate-changing carbon since record blazes in 1997, producing emissions higher than in the whole of the European Union, scientists said on Tuesday. 
 
Singapore, Malaysia and northern Indonesia choked under a layer of toxic smog in September and October last year, caused by thousands of fires started in Indonesia to cheaply clear land for palm oil crops and for pulp and paper plantations. 
 
The fires and resulting haze, an annual occurrence, pushed up pollution levels, caused schools to close, flights to be disrupted and people to fall sick across the region. 
 
Last years blazes were the worst for years with El Nino, a warming of sea-surface temperatures in the Pacific, causing tinder-dry conditions. 
 
The study by scientists from the Netherlands, Britain and Indonesia, published in the online journal Scientific Reports recently, was the first scientific report calculating greenhouse gas emissions from the fires using measurements on the ground combined with satellite observations. 
 
&quot;There have been some isolated studies before where people artificially set fires in the lab to try to understand the chemical characteristics of peatland fire smoke in Indonesia,&quot; said Martin Wooster, one of the scientists and a professor of earth observation science at Kings College London. 
 
&quot;But no one had done this on natural fires, and especially not on the kind of extreme fires seen in 2015,&quot; he added. 
 
The researchers first measured the ground-level smoke composition from peatland burning in the region, including in Indonesias Central Kalimantan province, one of the worst-hit areas. 
 
They combined the data with satellite information to work out greenhouse gas emission estimates from the fires. They concluded that 884 million tonnes of carbon dioxide was emitted in the region last year, with 97 per cent originating from forest fires in Indonesia. 
 
The results showed that regional carbon dioxide emissions from the fires were 11.3 million tonnes per day in September and October 2015, more than the 28-nation EUs daily emissions of 8.9 million tonnes during the same period. 
 
The researchers also said the emissions were worse than during the 1997 fires, considered the worst on record.&nbsp;At that time, there was an even longer drought and widespread burning due to a stronger El Ni?o. 
 
The researchers said they hoped the findings would contribute to a better understanding on the need for fire prevention and improved ways of managing the land. 
 
&quot;What is important is the applicability of a study like this in helping policy makers to use more accurate fire emission factors to design policy and act to prevent further fires and greenhouse gas emissions,&quot; said scientist Daniel Murdiyarso from the Indonesia-based Center for International Forestry Research. 
 
The Indonesian fires have prompted criticism from green groups and other Southeast Asian nations, accusing Jakarta of not doing enough to crack down on the slash-and-burn forest clearing techniques. 
 
In a bid to tackle the issue, President Joko Widodo announced in April plans for a moratorium on new palm oil concessions and asked firms to raise yields on existing plantations instead of clearing forests. 
 
(Reuters)

Thousands of fires started to cheaply clear land for palm oil crops and for pulp and paper plantations disrupted flights and caused sickness

Forest fires that blanketed Southeast Asia in thick haze last year released the greatest amount of climate-changing carbon since record blazes in 1997, producing emissions higher than in the whole of the European Union, scientists said on Tuesday. Singapore, Malaysia and northern Indonesia choked under a layer of toxic smog in September and October last year, caused by thousands of fires started in Indonesia to cheaply clear land for palm oil crops and for pulp and paper plantations. The fires and resulting haze, an annual occurrence, pushed up pollution levels, caused schools to close, flights to be disrupted and people to fall sick across the region. Last years blazes were the worst for years with El Nino, a warming of sea-surface temperatures in the Pacific, causing tinder-dry conditions. The study by scientists from the Netherlands, Britain and Indonesia, published in the online journal Scientific Reports recently, was the first scientific report calculating greenhouse gas emissions from the fires using measurements on the ground combined with satellite observations. "There have been some isolated studies before where people artificially set fires in the lab to try to understand the chemical characteristics of peatland fire smoke in Indonesia," said Martin Wooster, one of the scientists and a professor of earth observation science at Kings College London. "But no one had done this on natural fires, and especially not on the kind of extreme fires seen in 2015," he added. The researchers first measured the ground-level smoke composition from peatland burning in the region, including in Indonesias Central Kalimantan province, one of the worst-hit areas. They combined the data with satellite information to work out greenhouse gas emission estimates from the fires. They concluded that 884 million tonnes of carbon dioxide was emitted in the region last year, with 97 per cent originating from forest fires in Indonesia. The results showed that regional carbon dioxide emissions from the fires were 11.3 million tonnes per day in September and October 2015, more than the 28-nation EUs daily emissions of 8.9 million tonnes during the same period. The researchers also said the emissions were worse than during the 1997 fires, considered the worst on record. At that time, there was an even longer drought and widespread burning due to a stronger El Ni?o. The researchers said they hoped the findings would contribute to a better understanding on the need for fire prevention and improved ways of managing the land. "What is important is the applicability of a study like this in helping policy makers to use more accurate fire emission factors to design policy and act to prevent further fires and greenhouse gas emissions," said scientist Daniel Murdiyarso from the Indonesia-based Center for International Forestry Research. The Indonesian fires have prompted criticism from green groups and other Southeast Asian nations, accusing Jakarta of not doing enough to crack down on the slash-and-burn forest clearing techniques. In a bid to tackle the issue, President Joko Widodo announced in April plans for a moratorium on new palm oil concessions and asked firms to raise yields on existing plantations instead of clearing forests. (Reuters)

Land-clearing forest fires choking Southeast Asia in 2015 release record carbon

TransCanada has formally filed a $15-billion suit against the US government for blocking its controversial project for an oil pipeline linking Canada with the Gulf of Mexico, legal documents show. 
 
The company first announced its intention to sue in January, but then sought negotiations toward &quot;an amicable settlement of the dispute&quot; surrounding the Keystone XL pipeline, according to legal documents posted on its website. 
 
Unable to settle, the company formally filed suit late Friday, asserting that denial of a permit to complete the pipeline was &quot;unjustified&quot; under the North American Free Trade Agreement (NAFTA), and that the decision also exceeded US President Barack Obama&#39;s constitutional powers. 
 
The suit is based on Chapter 11 of NAFTA -- the 1994 trade pact between the United States, Canada and Mexico -- which aims to protect foreign investors from potential losses. 
 
The Calgary-based company is seeking $15 billion for losses it says it suffered because of the pipeline`s rejection. 
 
The decision to block the pipeline, which came seven years after the company first submitted the project, marred US-Canada relations and angered many in the oil industry in both countries. 
 
The pipeline would have carried crude oil from the Alberta tar sands deposits all the way to the US Gulf Coast. The US government`s blocking of the 1,179-mile (1,900 kilometer) Alberta-Nebraska section effectively undermined the entire project. 
 
Environmentalists have assailed the project -- and the move to sue -- arguing that the Alberta deposits produce some of the &quot;dirtiest&quot; crude in the world. 
 
In its latest filings, TransCanada argued that the US government`s decision was not based on technical analysis, but &quot;was symbolic, and based merely on the desire to make the US appear strong on climate change.&quot; 
 
A summit that brings together the leaders of NAFTA`s three countries will be held next week in Ottawa. 
 
(AFP)

The energy giant argues that denial of a permit to complete the pipeline is "unjustified" under the North American Free Trade Agreement

TransCanada has formally filed a $15-billion suit against the US government for blocking its controversial project for an oil pipeline linking Canada with the Gulf of Mexico, legal documents show. The company first announced its intention to sue in January, but then sought negotiations toward "an amicable settlement of the dispute" surrounding the Keystone XL pipeline, according to legal documents posted on its website. Unable to settle, the company formally filed suit late Friday, asserting that denial of a permit to complete the pipeline was "unjustified" under the North American Free Trade Agreement (NAFTA), and that the decision also exceeded US President Barack Obama's constitutional powers. The suit is based on Chapter 11 of NAFTA -- the 1994 trade pact between the United States, Canada and Mexico -- which aims to protect foreign investors from potential losses. The Calgary-based company is seeking $15 billion for losses it says it suffered because of the pipeline`s rejection. The decision to block the pipeline, which came seven years after the company first submitted the project, marred US-Canada relations and angered many in the oil industry in both countries. The pipeline would have carried crude oil from the Alberta tar sands deposits all the way to the US Gulf Coast. The US government`s blocking of the 1,179-mile (1,900 kilometer) Alberta-Nebraska section effectively undermined the entire project. Environmentalists have assailed the project -- and the move to sue -- arguing that the Alberta deposits produce some of the "dirtiest" crude in the world. In its latest filings, TransCanada argued that the US government`s decision was not based on technical analysis, but "was symbolic, and based merely on the desire to make the US appear strong on climate change." A summit that brings together the leaders of NAFTA`s three countries will be held next week in Ottawa. (AFP)

TransCanada files $15-bn suit over US Keystone pipeline rejection

China wants to boost its domestic capacity to produce cutting-edge energy technologies in the next decade to challenge international energy majors in areas like offshore oil and gas exploration and building state-of-the-art thermal power plants. 
 
China lags behind competitors like Anglo-American oil majors or Japanese and German power turbine makers in the most advanced technologies for deepwater oil and gas production and the most efficient electric generation. But, as the world&#39;s biggest energy consumer, the country yearns to be at the forefront of these technologies to meet internal energy needs and to shift its export economy from less high-tech industries. 
 
A new catalogue, released this week by three ministries including the National Development and Reform Commission (NDRC), proposes increasing China&#39;s energy independence by 2025. The report also seeks export opportunities in technical areas such as deepwater drilling for oil and natural gas, highly efficient so-called ultra-super-critical thermal power plants, as well as renewable electric generation and storage technology. 
 
&quot;Our self-designed capacity is comparably weak, and the core technologies are not in our hands,&quot; said the plan. 
 
The report, led by the National Energy Administration, did not specify which companies would lead this development. But, in the oil and gas sector, China&#39;s state-owned companies including China National Petroleum Corporation (CNPC) and its listed subsidiary PetroChina, Sinopec Group, and China National Offshore Oil Corp will likely take leading roles. 
 
China Petroleum Technology and Development Corp, an equipment provider affiliated to CNPC, already has exports worth US$ 3.7 billion per year. 
 
&quot;In offshore oil drilling we&#39;d like to cut the reliance on imports by improving the self-sufficiency,&quot; said Yang Shuangquan, General Secretary of the China Petroleum and Petrochemical Equipment Industrial Association (CPEIA). 
 
&quot;(The plan) draws up... major development projects for the oil industries in exploiting natural gas, shale gas and offshore oil. The latter two will remain as China&#39;s strategic moves to ensure energy supply,&quot; he added. 
 
In renewables, Goldwind is the leading Chinese wind turbine maker and likely to play a role. The biggest investors in thermal and gas power generation are the state-owned China Huaneng Group, China Datang Corporation, along with its listed renewable subsidiary, China Guodian Corp, China Huadian Group Corp, and China Power Investment Corp. 
 
Yang said that no specified investment figures had yet been published, but that the ministry of finance would come up with follow-up strategies for implementation soon, without mentioning a specific time-frame. 
 
To make breakthroughs in these key technologies, the government wants to showcase live projects by 2020, leading to the formation of new, internationally competitive production chains by 2025. 
 
The plan also bolsters government efforts to shift away from less technologically advanced industries such as coal and steel and into more complex sectors. 
 
This includes increasing renewable technology usage, but also employing ultra-super-critical coal power generators, modern natural gas turbines, and large nuclear power plants. 
 
For renewables, China wants to build offshore wind turbines that can produce 10 megawatts (MW) of electricity, beyond the current technology at 7 MW, and modern solar cells. 
(Reuters)

As the world's biggest energy consumer, China yearns to be at the forefront of energy-sector technologies to meet internal needs

China wants to boost its domestic capacity to produce cutting-edge energy technologies in the next decade to challenge international energy majors in areas like offshore oil and gas exploration and building state-of-the-art thermal power plants. China lags behind competitors like Anglo-American oil majors or Japanese and German power turbine makers in the most advanced technologies for deepwater oil and gas production and the most efficient electric generation. But, as the world's biggest energy consumer, the country yearns to be at the forefront of these technologies to meet internal energy needs and to shift its export economy from less high-tech industries. A new catalogue, released this week by three ministries including the National Development and Reform Commission (NDRC), proposes increasing China's energy independence by 2025. The report also seeks export opportunities in technical areas such as deepwater drilling for oil and natural gas, highly efficient so-called ultra-super-critical thermal power plants, as well as renewable electric generation and storage technology. "Our self-designed capacity is comparably weak, and the core technologies are not in our hands," said the plan. The report, led by the National Energy Administration, did not specify which companies would lead this development. But, in the oil and gas sector, China's state-owned companies including China National Petroleum Corporation (CNPC) and its listed subsidiary PetroChina, Sinopec Group, and China National Offshore Oil Corp will likely take leading roles. China Petroleum Technology and Development Corp, an equipment provider affiliated to CNPC, already has exports worth US$ 3.7 billion per year. "In offshore oil drilling we'd like to cut the reliance on imports by improving the self-sufficiency," said Yang Shuangquan, General Secretary of the China Petroleum and Petrochemical Equipment Industrial Association (CPEIA). "(The plan) draws up... major development projects for the oil industries in exploiting natural gas, shale gas and offshore oil. The latter two will remain as China's strategic moves to ensure energy supply," he added. In renewables, Goldwind is the leading Chinese wind turbine maker and likely to play a role. The biggest investors in thermal and gas power generation are the state-owned China Huaneng Group, China Datang Corporation, along with its listed renewable subsidiary, China Guodian Corp, China Huadian Group Corp, and China Power Investment Corp. Yang said that no specified investment figures had yet been published, but that the ministry of finance would come up with follow-up strategies for implementation soon, without mentioning a specific time-frame. To make breakthroughs in these key technologies, the government wants to showcase live projects by 2020, leading to the formation of new, internationally competitive production chains by 2025. The plan also bolsters government efforts to shift away from less technologically advanced industries such as coal and steel and into more complex sectors. This includes increasing renewable technology usage, but also employing ultra-super-critical coal power generators, modern natural gas turbines, and large nuclear power plants. For renewables, China wants to build offshore wind turbines that can produce 10 megawatts (MW) of electricity, beyond the current technology at 7 MW, and modern solar cells. (Reuters)

China plans to boost energy-sector technology capacity over next decade

Oil rallied on Monday, lifted by a wave of investor confidence and a weaker dollar after polls showed a diminishing chance that Britain may vote to leave the European Union later this week. 
 
August Brent crude futures were up 90 cents at $50.07 a barrel by 0843 GMT, set for a gain of 6 per cent in two trading days. New York Mercantile Exchange crude for July delivery, which expires on Tuesday, was up 80 cents at $48.78 a barrel. 
 
Campaigning for Britain&#39;s vote on EU membership resumed on Sunday after a three-day hiatus prompted by the killing of a pro-EU lawmaker. 
 
Three opinion polls ahead of Thursday&#39;s vote showed the &#39;Remain&#39; camp recovering some momentum, although the overall picture remained one of an evenly split electorate. 
 
Perceived safe havens such as gold, the US dollar, German bonds and the Swiss franc came under pressure, while oil looked set for its largest two-day rise in a month and the likes of copper and equities rallied. 
 
&quot;For oil as a risky asset, what we&#39;ve seen are intraday gyrations that are coming from the spillover effects of &#39;risk-on/risk-off&#39; moves that follow the poll numbers,&quot; BNP Paribas global head of commodity strategy Harry Tchilinguirian said. 
 
The pound climbed 1.6 per cent to $1.4589, extending a recovery from last Thursday&#39;s more than two-month trough of $1.4013. 
 
&quot;With Brexit dominating the market headlines, there might be moves in the US dollar that drive the oil market at least until we get that out of the way,&quot; said Michael McCarthy, chief market strategist at CMC Markets in Sydney. 
 
&quot;It&#39;s likely to be a nervous and skittish week&#39;s trading.&quot; 
 
Oil prices continued to recover despite data showing US energy firms adding oil rigs for a third week in a row, suggesting higher production to come. 
 
Oil services firm Baker Hughes reported nine rig additions in the week to June 17. 
 
Aside from Brexit concerns, the market is likely to be caught in a range as any gains would likely be limited by the return of more shale drillers in the United States, McCarthy said. 
 
&quot;Capping market gains at the moment is the potential for those very agile US producers to jump back into production should we see any further substantial rises,&quot; he said.

August Brent crude futures were up 90 cents at $50.07 a barrel

Oil rallied on Monday, lifted by a wave of investor confidence and a weaker dollar after polls showed a diminishing chance that Britain may vote to leave the European Union later this week. August Brent crude futures were up 90 cents at $50.07 a barrel by 0843 GMT, set for a gain of 6 per cent in two trading days. New York Mercantile Exchange crude for July delivery, which expires on Tuesday, was up 80 cents at $48.78 a barrel. Campaigning for Britain's vote on EU membership resumed on Sunday after a three-day hiatus prompted by the killing of a pro-EU lawmaker. Three opinion polls ahead of Thursday's vote showed the 'Remain' camp recovering some momentum, although the overall picture remained one of an evenly split electorate. Perceived safe havens such as gold, the US dollar, German bonds and the Swiss franc came under pressure, while oil looked set for its largest two-day rise in a month and the likes of copper and equities rallied. "For oil as a risky asset, what we've seen are intraday gyrations that are coming from the spillover effects of 'risk-on/risk-off' moves that follow the poll numbers," BNP Paribas global head of commodity strategy Harry Tchilinguirian said. The pound climbed 1.6 per cent to $1.4589, extending a recovery from last Thursday's more than two-month trough of $1.4013. "With Brexit dominating the market headlines, there might be moves in the US dollar that drive the oil market at least until we get that out of the way," said Michael McCarthy, chief market strategist at CMC Markets in Sydney. "It's likely to be a nervous and skittish week's trading." Oil prices continued to recover despite data showing US energy firms adding oil rigs for a third week in a row, suggesting higher production to come. Oil services firm Baker Hughes reported nine rig additions in the week to June 17. Aside from Brexit concerns, the market is likely to be caught in a range as any gains would likely be limited by the return of more shale drillers in the United States, McCarthy said. "Capping market gains at the moment is the potential for those very agile US producers to jump back into production should we see any further substantial rises," he said.

Oil rallies as polls show diminished chance that Britain will vote to leave the EU

The oil market is now in balance thanks to unplanned outages and robust demand, particularly from emerging economies, but this equilibrium will tilt into surplus again early next year, the International Energy Agency (IEA) said today. 
 
The agency said in its monthly report that demand growth in 2017 is likely to reach 1.3 million barrels per day (bpd), the same level at which it estimates growth for this year, having revised up its May 2016 forecast of 1.2 million bpd. 
 
&quot;Again, on the planning assumption that OPEC oil production grows modestly in 2017, we expect to see global oil stocks build slightly in the first half of 2017 before falling slightly more in the second half of 2017. For the year as a whole, there will be a very small stock draw of 0.1 million bpd,&quot; &nbsp; said&nbsp;the IEA. 
 
&quot;At halfway in 2016, the oil market looks to be balancing; but we must not forget that there are large volumes of shut-in production, mainly in Nigeria and Libya, that could return to the market, and the strong start for oil demand growth seen this year might not be maintained,&quot; said&nbsp;the Paris-based agency . 
 
Most of the anticipated demand growth this year and in 2017 is expected to come from nations that are not part of the Organisation for Economic Cooperation and Development (OECD), the agency said. 
 
&quot;We must stress that this is our first look at 2017 and the huge number of moving parts will see us amend our numbers accordingly. However ... the direction of travel seems to be clear,&quot; said&nbsp;the IEA. 
 
The IEA&#39;s latest demand estimate for the first three months of this year shows global oil deliveries rising by 1.6 million bpd to 95.2 million bpd, with nine out of every 10 extra barrels going to a non-OECD economy. 
 
On the supply side, the IEA said output fell by 590,000 bpd year-on-year to 95.4 million bpd in May, the first major decline since the start of 2013, as spending cuts and outages reduced non-OPEC production by 1.3 million bpd from a year earlier. 
 
Having fallen by 900,000 bpd in 2016, non-OPEC supply growth is expected to rise by 200,000 bpd in 2017, lifting output to 57 million bpd, the IEA said. 
 
Crude output from the Organization of the Petroleum Exporting Countries fell by 100,000 bpd in May to 32.61 million bpd, after a spate of attacks on oil infrastructure in Nigeria offset higher output from the Middle East. Production was still 500,000 bpd higher than in May last year. 
 
&quot;Iran has clearly emerged as OPEC&#39;s fastest source of supply growth this year, with an anticipated annual gain of nearly 700,000 bpd,&quot; the IEA said. 
 
The only other substantial increase from OPEC in 2017 could be from Nigeria, should security issues in the Niger Delta be resolved. 
(Reuters)

Large volumes of shut-in production from Nigeria and Libya can return to the market and that may change oil demand growth

The oil market is now in balance thanks to unplanned outages and robust demand, particularly from emerging economies, but this equilibrium will tilt into surplus again early next year, the International Energy Agency (IEA) said today. The agency said in its monthly report that demand growth in 2017 is likely to reach 1.3 million barrels per day (bpd), the same level at which it estimates growth for this year, having revised up its May 2016 forecast of 1.2 million bpd. "Again, on the planning assumption that OPEC oil production grows modestly in 2017, we expect to see global oil stocks build slightly in the first half of 2017 before falling slightly more in the second half of 2017. For the year as a whole, there will be a very small stock draw of 0.1 million bpd," said the IEA. "At halfway in 2016, the oil market looks to be balancing; but we must not forget that there are large volumes of shut-in production, mainly in Nigeria and Libya, that could return to the market, and the strong start for oil demand growth seen this year might not be maintained," said the Paris-based agency . Most of the anticipated demand growth this year and in 2017 is expected to come from nations that are not part of the Organisation for Economic Cooperation and Development (OECD), the agency said. "We must stress that this is our first look at 2017 and the huge number of moving parts will see us amend our numbers accordingly. However ... the direction of travel seems to be clear," said the IEA. The IEA's latest demand estimate for the first three months of this year shows global oil deliveries rising by 1.6 million bpd to 95.2 million bpd, with nine out of every 10 extra barrels going to a non-OECD economy. On the supply side, the IEA said output fell by 590,000 bpd year-on-year to 95.4 million bpd in May, the first major decline since the start of 2013, as spending cuts and outages reduced non-OPEC production by 1.3 million bpd from a year earlier. Having fallen by 900,000 bpd in 2016, non-OPEC supply growth is expected to rise by 200,000 bpd in 2017, lifting output to 57 million bpd, the IEA said. Crude output from the Organization of the Petroleum Exporting Countries fell by 100,000 bpd in May to 32.61 million bpd, after a spate of attacks on oil infrastructure in Nigeria offset higher output from the Middle East. Production was still 500,000 bpd higher than in May last year. "Iran has clearly emerged as OPEC's fastest source of supply growth this year, with an anticipated annual gain of nearly 700,000 bpd," the IEA said. The only other substantial increase from OPEC in 2017 could be from Nigeria, should security issues in the Niger Delta be resolved. (Reuters)

IEA sees oil market balance in 2016, surplus to re-emerge next year

Indian oil refiners will clear around $6.7 billion (USD) of outstanding debt to Iran through Turkey`s Halkbank within a short period, a senior Iranian economy official said on Wednesday. 
 
India is one of the biggest buyers of Iranian crude and built up a payments backlog when Iran was under Western sanctions, with its refiners owing about $6.5 billion to Iran. They cleared around $770 million in euros through Halkbank to the National Iranian Oil Co (NIOC) earlier in May. 
 
&quot;As per the instructions of the Central Bank of Iran, the local banks in India will transfer the money to Halkbank,&quot; Sadegh Akbari, Iran`s general director for foreign economic relations, told reporters at a conference in Istanbul. 
($1 = 0.8970 euros)

India will pay back the $6.7 billion oil dues to Iran.

Indian oil refiners will clear around $6.7 billion (USD) of outstanding debt to Iran through Turkey`s Halkbank within a short period, a senior Iranian economy official said on Wednesday. India is one of the biggest buyers of Iranian crude and built up a payments backlog when Iran was under Western sanctions, with its refiners owing about $6.5 billion to Iran. They cleared around $770 million in euros through Halkbank to the National Iranian Oil Co (NIOC) earlier in May. "As per the instructions of the Central Bank of Iran, the local banks in India will transfer the money to Halkbank," Sadegh Akbari, Iran`s general director for foreign economic relations, told reporters at a conference in Istanbul. ($1 = 0.8970 euros)

India will soon pay the $6.7 billion oil payment backlog to Iran, Iranian official says.

Asian stocks were on a weak footing on Wednesday as a slip in crude oil prices dampened investors&#39; appetite for riskier assets, while the recently bullish dollar stalled against the Euro and Yen following a mixed bag of U.S. economic data.

Spreadbetters also expected a shaky start for European shares, forecasting Britain&#39;s FTSE, Germany&#39;s DAX and France&#39;s CAC to open flat to slightly lower.

Japan&#39;s Nikkei lost more than one percent as the yen firmed. Other decliners included Australian stocks&nbsp;which fell 1.0 percent.

Hong Kong&#39;s Hang Seng and South Korea&#39;s KOSPI stood little changed.

Shanghai see-sawed in and out of negative terrain, and was last up 0.1 percent, after rallying on Tuesday on expectations MSCI could add China&#39;s mainland stocks to its emerging market benchmark for the first time.

David Dai, Shanghai-based investor director at Nanhai Fund Management Co, said any market rally was unlikely to be sustainable at this stage.

&quot;The economy is still weak, and the Fed will likely raise rates soon. I don&#39;t think the market will go up much further. The best strategy now is to take profit.&quot;

There was little market reaction to the official and private surveys on China&#39;s manufacturing activity, which were roughly in line with expectations, suggesting the world&#39;s second-largest economy is still struggling to regain traction.

The Caixin/Markit Manufacturing Purchasing Managers&#39; index (PMI) showed activity at China&#39;s factories shrank for a 15th straight month in May. The official manufacturing May PMI painted a slightly more optimistic picture and stood unchanged from the previous month at 50.1

MSCI&#39;s broadest index of Asia-Pacific shares outside Japan recovered from an earlier dip and crawled up 0.1 percent.

The Dow shed 0.5 percent and the S&amp;P 500 dipped 0.1 percent on Tuesday, as energy shares weakened in the wake of a slip in oil prices and offset a rise in safe-haven utilities.

Crude pulled back from eight-month highs reached last week amid expectations that a global glut was easing, falling overnight to profit taking. U.S. crude was last down 0.7 percent at $48.76 a barrel and Brent fell 0.8 percent to $49.51.

The fall in oil prices was exacerbated after United Arab Emirates Oil Minister Suhail bin Mohammed al-Mazroui said he was happy with the oil market, noting that prices had been correcting higher.

The UAE oil minister&#39;s comments touched a nerve in a market wary that an OPEC meeting on Thursday may not pave the way for a production freeze.

&quot;The political will of the OPEC countries to enact a production freeze is clearly waning. A production freeze is unlikely to come up as an agenda at the June meeting,&quot; wrote Yoshimasa Maruyama, chief market economist at SMBC Nikko Securities in Tokyo.

&quot;A sense of crisis among the oil producing countries appears to have receded following the recent spike in crude oil prices.&quot;

In currencies, the dollar was down 0.6 percent at 110.010 yen, having come off a one-month high of 111.455 struck on Monday after Federal Reserve Chair Janet Yellen&#39;s comments raised expectations for a near-term U.S. rate hike.

The Euro was at $1.1120, putting some distance between a 2-1/2-month low of $1.1097 touched on Monday.

U.S. data overnight saw personal income-related and housing indicators come in strong, while the Chicago manufacturing PMI and consumer confidence data proved disappointing.

The Australian Dollar was up 0.6 percent to $0.7277 helped by stronger-than-expected first quarter economic growth, which pushed it further away from last week&#39;s three-month low of $0.7145.

Sterling was on the defensive, last trading little changed at $1.4490 after dropping more than one percent on Tuesday, after polls showing those who support Brexit may be increasing.

investors lose hope as the price of oil slips further

Asian stocks were on a weak footing on Wednesday as a slip in crude oil prices dampened investors' appetite for riskier assets, while the recently bullish dollar stalled against the Euro and Yen following a mixed bag of U.S. economic data. Spreadbetters also expected a shaky start for European shares, forecasting Britain's FTSE, Germany's DAX and France's CAC to open flat to slightly lower. Japan's Nikkei lost more than one percent as the yen firmed. Other decliners included Australian stocks which fell 1.0 percent. Hong Kong's Hang Seng and South Korea's KOSPI stood little changed. Shanghai see-sawed in and out of negative terrain, and was last up 0.1 percent, after rallying on Tuesday on expectations MSCI could add China's mainland stocks to its emerging market benchmark for the first time. David Dai, Shanghai-based investor director at Nanhai Fund Management Co, said any market rally was unlikely to be sustainable at this stage. "The economy is still weak, and the Fed will likely raise rates soon. I don't think the market will go up much further. The best strategy now is to take profit." There was little market reaction to the official and private surveys on China's manufacturing activity, which were roughly in line with expectations, suggesting the world's second-largest economy is still struggling to regain traction. The Caixin/Markit Manufacturing Purchasing Managers' index (PMI) showed activity at China's factories shrank for a 15th straight month in May. The official manufacturing May PMI painted a slightly more optimistic picture and stood unchanged from the previous month at 50.1 MSCI's broadest index of Asia-Pacific shares outside Japan recovered from an earlier dip and crawled up 0.1 percent. The Dow shed 0.5 percent and the S&P 500 dipped 0.1 percent on Tuesday, as energy shares weakened in the wake of a slip in oil prices and offset a rise in safe-haven utilities. Crude pulled back from eight-month highs reached last week amid expectations that a global glut was easing, falling overnight to profit taking. U.S. crude was last down 0.7 percent at $48.76 a barrel and Brent fell 0.8 percent to $49.51. The fall in oil prices was exacerbated after United Arab Emirates Oil Minister Suhail bin Mohammed al-Mazroui said he was happy with the oil market, noting that prices had been correcting higher. The UAE oil minister's comments touched a nerve in a market wary that an OPEC meeting on Thursday may not pave the way for a production freeze. "The political will of the OPEC countries to enact a production freeze is clearly waning. A production freeze is unlikely to come up as an agenda at the June meeting," wrote Yoshimasa Maruyama, chief market economist at SMBC Nikko Securities in Tokyo. "A sense of crisis among the oil producing countries appears to have receded following the recent spike in crude oil prices." In currencies, the dollar was down 0.6 percent at 110.010 yen, having come off a one-month high of 111.455 struck on Monday after Federal Reserve Chair Janet Yellen's comments raised expectations for a near-term U.S. rate hike. The Euro was at $1.1120, putting some distance between a 2-1/2-month low of $1.1097 touched on Monday. U.S. data overnight saw personal income-related and housing indicators come in strong, while the Chicago manufacturing PMI and consumer confidence data proved disappointing. The Australian Dollar was up 0.6 percent to $0.7277 helped by stronger-than-expected first quarter economic growth, which pushed it further away from last week's three-month low of $0.7145. Sterling was on the defensive, last trading little changed at $1.4490 after dropping more than one percent on Tuesday, after polls showing those who support Brexit may be increasing.

Asia wavers as oil slip sinks sentiment, dollar stalls

Thousands of evacuees who fled a massive wildfire in the Canadian oil hub of Fort McMurray are set to return home today, though concerns ranging from contaminated drinking water to insurance claims linger as the city seeks to rebuild.

More than 80,000 residents were ordered to leave when the wildfire surged into the area four weeks ago, and officials expect the remote northern Alberta city to absorb roughly 14,000 to 15,000 residents as a re-entry plan spanning two weeks gets underway today.

The blaze was a devastating blow to a community already reeling from a two-year slump in global crude prices. It shuttered more than a million barrels per day of crude production, though some facilities had started to resume operations.

&quot;We are not going to stay, we&#39;ll go back and maybe remove some items,&quot; said Brenda Waterman, her face anxious over the unknown extent of fire damage to her home and chemical containments. &quot;I&#39;ve never experienced anything like this before, it&#39;s like a dream.&quot;

John Smith, 77, and his wife, Joyce, were bracing for heavy traffic on the main highway leading into the city, as well as what may lie ahead.

&quot;We didn&#39;t even have time to empty the garbage,&quot; he said. &quot;I&#39;m going in first with a flashlight and wearing a mask, and one of us will open the doors and windows and flush the house out.&quot;

Authorities have assembled extra police and emergency officials, and are urging travelers to remain patient and orderly as they grapple with traffic-snarled roads and hobbled infrastructure.

Grocery stores and pharmacies among other local businesses were poised to re-open with reduced stocks, and power and gas has been restored to a majority of structures in the areas awaiting returnees.

About 10 percent of the city&#39;s homes were destroyed by the blaze, which has blackened more than 580,000 hectares (2,239 square miles).

Even so, some 2,000 residents who had expected to return this week were ordered to hold off because of the risks posed by debris and contaminants including &quot;caustic&quot; ash.&nbsp;

Authorities have also issued a boil-water advisory and advised returnees to carry with them at least two weeks&#39; worth of food, water and prescription medication. Deteriorating air quality could force officials to suddenly change re-entry change plans.

Other challenges include limited medical services and labyrinthine insurance claims, as well as wildlife that has been scavenging the desolate neighborhoods for food.&nbsp;

&quot;It won&#39;t really hit you until you walk into it,&quot; said Adam Tucker, a 50-year-old oil sands worker, as he prepared to drive home.

Evacuees who fled the massive wildfire in the Canadian oil hub of Fort McMurray begin to return home, but worry about water contamination and insurance claims

Thousands of evacuees who fled a massive wildfire in the Canadian oil hub of Fort McMurray are set to return home today, though concerns ranging from contaminated drinking water to insurance claims linger as the city seeks to rebuild. More than 80,000 residents were ordered to leave when the wildfire surged into the area four weeks ago, and officials expect the remote northern Alberta city to absorb roughly 14,000 to 15,000 residents as a re-entry plan spanning two weeks gets underway today. The blaze was a devastating blow to a community already reeling from a two-year slump in global crude prices. It shuttered more than a million barrels per day of crude production, though some facilities had started to resume operations. "We are not going to stay, we'll go back and maybe remove some items," said Brenda Waterman, her face anxious over the unknown extent of fire damage to her home and chemical containments. "I've never experienced anything like this before, it's like a dream." John Smith, 77, and his wife, Joyce, were bracing for heavy traffic on the main highway leading into the city, as well as what may lie ahead. "We didn't even have time to empty the garbage," he said. "I'm going in first with a flashlight and wearing a mask, and one of us will open the doors and windows and flush the house out." Authorities have assembled extra police and emergency officials, and are urging travelers to remain patient and orderly as they grapple with traffic-snarled roads and hobbled infrastructure. Grocery stores and pharmacies among other local businesses were poised to re-open with reduced stocks, and power and gas has been restored to a majority of structures in the areas awaiting returnees. About 10 percent of the city's homes were destroyed by the blaze, which has blackened more than 580,000 hectares (2,239 square miles). Even so, some 2,000 residents who had expected to return this week were ordered to hold off because of the risks posed by debris and contaminants including "caustic" ash. Authorities have also issued a boil-water advisory and advised returnees to carry with them at least two weeks' worth of food, water and prescription medication. Deteriorating air quality could force officials to suddenly change re-entry change plans. Other challenges include limited medical services and labyrinthine insurance claims, as well as wildlife that has been scavenging the desolate neighborhoods for food. "It won't really hit you until you walk into it," said Adam Tucker, a 50-year-old oil sands worker, as he prepared to drive home.

Trepidation lingers as Canada wildfire evacuees begin to return home

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