Saudi Arabia's non-oil business sector expanded at its fastest pace in over a decade in January. The Riyadh bank Saudi Arabia purchasing managers' index rose to 60.5 from 58.4 in December, marking the highest level since September 2014. A reading above 50 signals growth.

Saudi non-oil sector sees decade-high growth

The United States has intensified its sanctions on Russia’s oil industry, creating significant disruptions across Asia.
Oil tanker rates have jumped by 39 percent in the wake of these new measures.

Asian Refiners Face Fallout From US Measures On Russian Oil | WION Business Watch | World News

In the last three months of 2024, Exxon Mobil expects reduced profitability due to falling oil prices and shrinking refining margins. Exxon said the production division's earnings were cut by around 700 million dollars due to lower oil prices.

Exxon predicts hit to profit from lower oil prices

After decades of phenomenal expansion, the energy industry is now seeing its first speed bumps. This year, solar power is experiencing some growth problems of its own and is attempting to mimic an opec-style agreement. Take a look at this next report as we decode if that strategy will work for solar power producers.

Solar Power Producers Signed Up For An OPEC-style Agreement | World Business Watch | WION

To further isolate the Russian military and economic infrastructure in the weeks leading up to Donald Trump's inauguration,... The Biden administration is considering additional, more severe penalties on Russia's profitable oil trade. Watch in for more details!

US Aims To Weaken Putin Ahead Of Trump

The U.S. Energy information administration predicts that demand for oil in India is expanding at a faster rate than in any other Asian country. At the same time, demand for oil in china is declining as a result of an economic downturn and increasing ownership of EVs. Take a look at the next report to for more in this...Watch in for more details!

India Surpasses China In Driving Asia Oil Demand Growth, EIA Says

China is stepping up its efforts to safeguard Chinese citizens on the Pakistan soil. Watch in for more details.

China Pushes To Join  Security Efforts For Citizens In Pakistan: Report

Iran remains the most sanctioned country in the world, facing years of stringent measures aimed at curbing its oil exports and global influence. Despite these sanctions, Iran has managed to increase its oil exports significantly, with revenues reaching over 40 billion dollars in 2023. Watch in for more details!

Trump vs Iran’s Growing Oil Exports

The Russian government's earnings from the oil industry shrank by 29% in October from a year ago. This comes due to lower crude prices and increased state reimbursements to the nation's fuel producers.

Russia: Lower Crude Prices Weigh on Russia's Revenues

Eight members of the OPEC+ group of oil-producing nations said on Sunday they were extending supply cuts until the end of December.

The move is aimed at boosting oil prices amid uncertain demand and accelerating supply, with an eye on the imminent US presidential election, though analysts predict a limited impact.

The eight countries "have agreed to extend the November 2023 voluntary production adjustments of 2.2 million barrels per day for one month until the end of December 2024," the Vienna-based Organization of the Petroleum Exporting Countries said in a statement.

The eight from the 22-member group extending the cuts are leaders Saudi Arabia and Russia, as well as Algeria, Iraq, Kazakhstan, Kuwait, Oman and the United Arab Emirates.

They have been delaying production increases amid concerns over slowing demand, which has weighed on oil prices in recent months.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said the announcement was "the logical next step of the persistent downside pressure on oil prices due to sluggish Chinese and weakening global demand outlook and ample non-OPEC supply".

But any boost to oil prices would "unlikely" last unless OPEC+ "takes further measures to restrict production", Ozkardeskaya told AFP.

And even then, "their restriction strategy hasn't led to a sustainable rise of oil prices," she said, adding the grouping now accounted for less than half of the global oil output.

Jorge Leon, an analyst with Rystad Energy, said OPEC+ was awaiting the results of the November 5 US presidential election, which "will have a significant impact on the oil market".

"I am not so sure who would Opec prefer, but a trade war would mean lower demand," Leon told AFP, adding a trade war was "likely" if Republican Donald Trump wins.

OPEC+ ministers are due to meet in early December in Vienna at the group's headquarters, but with Sunday's announcement, the eight countries have already decided not to reopen the taps until at least early 2025.

During the last ministerial meeting in June, OPEC+ had still announced they wanted to increase their production from October, though it has stressed that this decision could be reviewed at any time.

Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION&nbsp;audience. 
&nbsp;

Eight members of the OPEC+ group of oil-producing nations said on Sunday they were extending supply cuts until the end of December. The move is aimed at boosting oil prices amid uncertain demand and accelerating supply, with an eye on the imminent US presidential election, though analysts predict a limited impact.

Eight members of the OPEC+ group of oil-producing nations said on Sunday they were extending supply cuts until the end of December. The move is aimed at boosting oil prices amid uncertain demand and accelerating supply, with an eye on the imminent US presidential election, though analysts predict a limited impact. The eight countries "have agreed to extend the November 2023 voluntary production adjustments of 2.2 million barrels per day for one month until the end of December 2024," the Vienna-based Organization of the Petroleum Exporting Countries said in a statement. The eight from the 22-member group extending the cuts are leaders Saudi Arabia and Russia, as well as Algeria, Iraq, Kazakhstan, Kuwait, Oman and the United Arab Emirates. They have been delaying production increases amid concerns over slowing demand, which has weighed on oil prices in recent months. Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said the announcement was "the logical next step of the persistent downside pressure on oil prices due to sluggish Chinese and weakening global demand outlook and ample non-OPEC supply". But any boost to oil prices would "unlikely" last unless OPEC+ "takes further measures to restrict production", Ozkardeskaya told AFP. And even then, "their restriction strategy hasn't led to a sustainable rise of oil prices," she said, adding the grouping now accounted for less than half of the global oil output. Jorge Leon, an analyst with Rystad Energy, said OPEC+ was awaiting the results of the November 5 US presidential election, which "will have a significant impact on the oil market". "I am not so sure who would Opec prefer, but a trade war would mean lower demand," Leon told AFP, adding a trade war was "likely" if Republican Donald Trump wins. OPEC+ ministers are due to meet in early December in Vienna at the group's headquarters, but with Sunday's announcement, the eight countries have already decided not to reopen the taps until at least early 2025. During the last ministerial meeting in June, OPEC+ had still announced they wanted to increase their production from October, though it has stressed that this decision could be reviewed at any time. Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

OPEC+ extends oil supply cuts until December to boost prices amid global demand concerns

Iraq, once a major importer of wheat, is now facing a surplus of 1.5 million metric tons. This unexpected abundance is a result of favourable weather conditions and generous government subsidies. Watch in for more details!

Iraq's Wheat Surplus Poses Major Challenge Amid Falling Oil Prices

Amid increased volatility in the crude market as traders closely monitor developments in the West Asia war, Saudi Arabia hiked its oil prices for importers in Asia. For the past week, even equity traders have been dipping in and out of the oil market, lured by crude's biggest weekly rally in nearly two years. Watch in for more details!

Oil 'Tourists' Pile Into Market Amid Biggest Rally In Two Years

Oil Executives have emerged as an increasingly important source of funding for former US President Donald Trump. Industry Titans have opened their wallets to strengthen the republican nominee's campaign for a second term in the White House. Watch in for more details!

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Oil rose for a fourth day as traders assessed supply risks in West Asia. The reason: Israel is expected to make a retaliatory strike against Iran following Tehran's missile barrage earlier this week. The volume of so-called Brent call options trades hit a record high today, with the majority of those bets being placed on the price of crude hitting $100 a barrel.

Oil Rises For a Fourth Day Towards $75/Barrel

In an ecologically delicate region, Russia has already sent more oil than ever before this year. The route is over its portion of the arctic circle, speeding up cargo shipments to china. Watch to know more.

Western Sanctions on Russia's Oil Exports Working ?

Petrol and diesel prices in India could be reduced as global crude prices drop, but the situation remains uncertain due to ongoing volatility. A top oil ministry official stated that it’s difficult to predict whether rates will be cut before the Maharashtra elections, leaving consumers in suspense.

Indians See No Relief At The Pump Despite Falling Crude Oil Prices

To diversify its economy away from oil and make it a more appealing location to live, work, and vacation, Saudi Arabia has undertaken $1.3 trillion worth of real estate and infrastructure projects over the last eight years.

Saudi Arabia's vision 2030 in focus

#Gravitas | Pakistan has recently found substantial reserves of natural gas and oil in its territorial waters after a comprehensive three-year survey. Could these reserves significantly boost the crisis-hit nation's economy?

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A thick slick of oil covers part of an estuary in the ecuadoran amazon, Where the indigenous waorani people are imploring authorities to stop drilling for the black gold that keeps spilling into their environment.

Outcry over oil drilling in Ecuadorian amazon

Union Minister for Petroleum and Natural Gas, Hardeep Puri, has made a significant announcement regarding the stability of ethanol prices, providing reassurance to the industry. This declaration was made during his address at the IFGE's India Bio-Energy and Tech Expo held in New Delhi.&nbsp;

&nbsp;&nbsp;

Minister Puri highlighted&nbsp;the government's ongoing commitment to maintaining price stability and ensuring remunerative prices for ethanol suppliers. This policy has had a positive impact on sugarcane farmers, reducing their pending dues. Thereafter,&nbsp;he talked about the government's dedication to promoting alternative fuels, with a particular focus on ethanol, for future automotive applications.&nbsp;

&nbsp;&nbsp;

In line with the dual objectives of reducing pollution and enhancing energy security, the government has taken proactive steps by establishing Second Generation (2G) refineries. These facilities are designed to produce ethanol from alternative sources.

For instance, a refinery in Panipat, Haryana, utilises stubble (parali) as a feedstock, while another in Nomaligarh, Assam, employs bamboo. Minister Puri pointed out that these initiatives are not only addressing environmental concerns but also empowering farmers, transforming them from "Annadatas" (food providers) to "Urjadatas" (energy providers).&nbsp;

&nbsp;&nbsp;

The Minister went on to celebrate the remarkable success of India's energy blending program. He shared impressive statistics, noting that the ethanol blending percentage has seen a substantial increase from a mere 1.53 per cent in 2014 to an impressive 15 per cent in 2024. Encouraged by this achievement, the government has revised its timeline for reaching the 20 per cent ethanol blending target. Originally slated for 2030, this goal has been advanced by five years and is now expected to be achieved by October 2025. Minister Puri expressed confidence in meeting this accelerated timeline.&nbsp;

&nbsp;&nbsp;

Puri also elaborated on the multiple benefits that India's ethanol blending program has yielded over the past decade. The advantages&nbsp;he spoke of included:&nbsp;

1. Foreign exchange savings: From 2014 to July 14, 2024, the country has saved INR 99,014 crores in foreign exchange.&nbsp;

2. Environmental impact: Carbon dioxide emissions were reduced by 519 lakh metric tonnes during the same period.&nbsp;

3. Energy independence: Crude oil substitution reached 173 lakh metric tonnes.&nbsp;

4. Economic benefits: Ethanol Manufacturing Companies (EMCs) have paid INR 1,45,930 crores to distillers, while farmers have received INR 87,558 crores.&nbsp;

&nbsp;The Minister also commended the automobile industry for its support in facilitating the transition to alternative fuels. He praised manufacturers for producing new vehicles that are compatible with E20 fuel (20 per cent ethanol blend) and for developing retrofit kits to enable older vehicles to use these transition fuels.&nbsp;

This comprehensive update from Minister Puri underscores the government's multifaceted approach to promoting ethanol as a key component of India's energy strategy, addressing environmental concerns, supporting farmers, and fostering innovation in the automotive sector.&nbsp;

Union Minister for Petroleum and Natural Gas, Hardeep Puri, has made a significant announcement regarding the stability of ethanol prices, providing reassurance to the industry.

Union Minister for Petroleum and Natural Gas, Hardeep Puri, has made a significant announcement regarding the stability of ethanol prices, providing reassurance to the industry. This declaration was made during his address at the IFGE's India Bio-Energy and Tech Expo held in New Delhi. Minister Puri highlighted the government's ongoing commitment to maintaining price stability and ensuring remunerative prices for ethanol suppliers. This policy has had a positive impact on sugarcane farmers, reducing their pending dues. Thereafter, he talked about the government's dedication to promoting alternative fuels, with a particular focus on ethanol, for future automotive applications. In line with the dual objectives of reducing pollution and enhancing energy security, the government has taken proactive steps by establishing Second Generation (2G) refineries. These facilities are designed to produce ethanol from alternative sources. For instance, a refinery in Panipat, Haryana, utilises stubble (parali) as a feedstock, while another in Nomaligarh, Assam, employs bamboo. Minister Puri pointed out that these initiatives are not only addressing environmental concerns but also empowering farmers, transforming them from "Annadatas" (food providers) to "Urjadatas" (energy providers). The Minister went on to celebrate the remarkable success of India's energy blending program. He shared impressive statistics, noting that the ethanol blending percentage has seen a substantial increase from a mere 1.53 per cent in 2014 to an impressive 15 per cent in 2024. Encouraged by this achievement, the government has revised its timeline for reaching the 20 per cent ethanol blending target. Originally slated for 2030, this goal has been advanced by five years and is now expected to be achieved by October 2025. Minister Puri expressed confidence in meeting this accelerated timeline. Puri also elaborated on the multiple benefits that India's ethanol blending program has yielded over the past decade. The advantages he spoke of included: 1. Foreign exchange savings: From 2014 to July 14, 2024, the country has saved INR 99,014 crores in foreign exchange. 2. Environmental impact: Carbon dioxide emissions were reduced by 519 lakh metric tonnes during the same period. 3. Energy independence: Crude oil substitution reached 173 lakh metric tonnes. 4. Economic benefits: Ethanol Manufacturing Companies (EMCs) have paid INR 1,45,930 crores to distillers, while farmers have received INR 87,558 crores. The Minister also commended the automobile industry for its support in facilitating the transition to alternative fuels. He praised manufacturers for producing new vehicles that are compatible with E20 fuel (20 per cent ethanol blend) and for developing retrofit kits to enable older vehicles to use these transition fuels. This comprehensive update from Minister Puri underscores the government's multifaceted approach to promoting ethanol as a key component of India's energy strategy, addressing environmental concerns, supporting farmers, and fostering innovation in the automotive sector.

Union Minister Hardeep Puri guarantees price stability of ethanol to industry

The Greek-flagged crude oil tanker, Sounion, continues to blaze in the Red Sea and is now leaking oil, according to a Pentagon spokesperson on Tuesday. The vessel carrying about one million barrels of crude oil was attacked last week by multiple projectiles near Yemen’s port city of Hodeidah.

<h2>Houthi attacks and regional tensions</h2>

The Houthis, a Yemen-based group aligned with Iran, claimed responsibility for the assault, citing solidarity with Palestinians amid the ongoing conflict between Israel and Hamas in Gaza. The group has been targeting ships in the Red Sea as part of their broader conflict.

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According to Houthi military spokesman Yahya Saree, the attack on the Sounion was due to a violation of their ban on entry to “occupied Palestine.”&nbsp;

This incident marks the third attack this month on vessels operated by Athens-based Delta Tankers. Despite the onboard fire being extinguished by the crew, the vessel remains severely impacted.

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Pentagon spokesman Air Force maj gen Patrick Ryder condemned the attack as "reckless acts of terrorism. He said, “These are simply reckless acts of terrorism which continue to destabilise global and regional commerce, put the lives of innocent civilian mariners at risk and imperil the vibrant maritime ecosystem in the Red Sea and the Gulf of Aden, the Houthis’ own backyard,”&nbsp;

<h2>US Military and environmental concerns</h2>

Ryder added that the US military is collaborating with regional partners to assist the vessel and address potential environmental impacts.

Also read |&nbsp;<a href="https://www.wionews.com/world/us-says-chances-of-renewed-nuclear-talks-with-iran-far-away-after-tehran-opens-door-for-negotiations-753920">US says chances of renewed nuclear talks with Iran 'far away' after Tehran opens door for negotiations</a>

<h2>Background Of&nbsp;the Houthis</h2>

Led by Abdul Malik al-Houthi, the Houthis are an Iran-backed Shia rebel group that has been in conflict with Yemen’s government for nearly two decades. They currently control Yemen’s northwest and its capital, Sanaa.

(With inputs from agencies)

The Greek-flagged crude oil tanker, Sounion, continues to blaze in the Red Sea and is now leaking oil, according to a Pentagon spokesperson on Tuesday. The vessel carrying about one million barrels of crude oil was attacked last week by multiple projectiles near Yemen’s port city of Hodeidah.

The Greek-flagged crude oil tanker, Sounion, continues to blaze in the Red Sea and is now leaking oil, according to a Pentagon spokesperson on Tuesday. The vessel carrying about one million barrels of crude oil was attacked last week by multiple projectiles near Yemen’s port city of Hodeidah. Houthi attacks and regional tensions The Houthis, a Yemen-based group aligned with Iran, claimed responsibility for the assault, citing solidarity with Palestinians amid the ongoing conflict between Israel and Hamas in Gaza. The group has been targeting ships in the Red Sea as part of their broader conflict. Also read | US elections: What are swing states? Will they decide fate of 2024 presidential contenders Harris and Trump? According to Houthi military spokesman Yahya Saree, the attack on the Sounion was due to a violation of their ban on entry to “occupied Palestine.” This incident marks the third attack this month on vessels operated by Athens-based Delta Tankers. Despite the onboard fire being extinguished by the crew, the vessel remains severely impacted. Also read | US's military Tinder ad warns Iran and its proxies in Lebanon Pentagon spokesman Air Force maj gen Patrick Ryder condemned the attack as "reckless acts of terrorism. He said, “These are simply reckless acts of terrorism which continue to destabilise global and regional commerce, put the lives of innocent civilian mariners at risk and imperil the vibrant maritime ecosystem in the Red Sea and the Gulf of Aden, the Houthis’ own backyard,” US Military and environmental concerns Ryder added that the US military is collaborating with regional partners to assist the vessel and address potential environmental impacts. Also read | US says chances of renewed nuclear talks with Iran 'far away' after Tehran opens door for negotiations Background Of the Houthis Led by Abdul Malik al-Houthi, the Houthis are an Iran-backed Shia rebel group that has been in conflict with Yemen’s government for nearly two decades. They currently control Yemen’s northwest and its capital, Sanaa. (With inputs from agencies)

Greek-flagged shipping tanker attacked by Houthis now leaking oil: Pentagon

Oil prices inched up early in early trading and then slumped as the day ended after data showed a larger-than-anticipated decrease in US crude stockpiles. Brent crude oil futures rose 16 cents to $85.60 per barrel, and the US West Texas Intermediate crude futures climbed 14 cents to $82.95 per barrel.

The advance came one day after prices fell as concerns about Hurricane Beryl acting to disrupt production in the Gulf of Mexico subsided.

According to sources citing the American Petroleum Institute, sharp declines in US crude oil inventories were 9,163,000 barrels for the week ended June 28. At the same time, gasoline inventories rose by 2,468,000 barrels, with distillate levels down 740,000 barrels. Analysts, who had predicted a more modest draw on crude inventories, indicated the figures were higher than expected.

"Oil prices were supported by a US crude inventories draw, but gains were limited as some investors were still seeking to take profits from the recent rally to reach the highest levels since April," said Mitsuru Muraishi, an analyst at Fujitomi Securities.

The Energy Information Administration is due to release its weekly data on Wednesday, which will shed more light on market dynamics.

Demand for gasoline in the US is expected to firm up, especially as the summer travel season really gets underway and the Independence Day holiday approaches. This year's holiday travel is expected to rise by 5.2 per cent over last year with car travel 4.8 per cent higher, according to American Automobile Association(AAA).

On the supply side, a Reuters survey showed that the Organisation of the Petroleum Exporting Countries'(OPEC) oil output increased for a second month in June. The rise was due to higher production from Nigeria and Iran offsetting voluntary cuts by other members of the OPEC+ alliance.

Hurricane Beryl, expected to downgrade to a tropical storm, is currently expected to move into the Gulf of Mexico this week and could also hit further dynamics.

While oil prices do respond positively to prospects for summer US demand, mixed inventory data and continual adjustments to supply from OPEC, alongside other external events such as hurricanes, will continue to remain key drivers of sentiment.

Oil prices inched up early in early trading and then slumped as the day ended after data showed a larger-than-anticipated decrease in US crude stockpiles. Brent crude oil futures rose 16 cents to $85.

Oil prices inched up early in early trading and then slumped as the day ended after data showed a larger-than-anticipated decrease in US crude stockpiles. Brent crude oil futures rose 16 cents to $85.60 per barrel, and the US West Texas Intermediate crude futures climbed 14 cents to $82.95 per barrel. The advance came one day after prices fell as concerns about Hurricane Beryl acting to disrupt production in the Gulf of Mexico subsided. According to sources citing the American Petroleum Institute, sharp declines in US crude oil inventories were 9,163,000 barrels for the week ended June 28. At the same time, gasoline inventories rose by 2,468,000 barrels, with distillate levels down 740,000 barrels. Analysts, who had predicted a more modest draw on crude inventories, indicated the figures were higher than expected. "Oil prices were supported by a US crude inventories draw, but gains were limited as some investors were still seeking to take profits from the recent rally to reach the highest levels since April," said Mitsuru Muraishi, an analyst at Fujitomi Securities. The Energy Information Administration is due to release its weekly data on Wednesday, which will shed more light on market dynamics. Demand for gasoline in the US is expected to firm up, especially as the summer travel season really gets underway and the Independence Day holiday approaches. This year's holiday travel is expected to rise by 5.2 per cent over last year with car travel 4.8 per cent higher, according to American Automobile Association(AAA). On the supply side, a Reuters survey showed that the Organisation of the Petroleum Exporting Countries'(OPEC) oil output increased for a second month in June. The rise was due to higher production from Nigeria and Iran offsetting voluntary cuts by other members of the OPEC+ alliance. Hurricane Beryl, expected to downgrade to a tropical storm, is currently expected to move into the Gulf of Mexico this week and could also hit further dynamics. While oil prices do respond positively to prospects for summer US demand, mixed inventory data and continual adjustments to supply from OPEC, alongside other external events such as hurricanes, will continue to remain key drivers of sentiment.

Oil prices volatile amid mixed crude inventory data

Citi analysts assume oil prices will peak this summer before crashing next year.&nbsp;

"We essentially think ... global inventories will be building a lot next year," Citi's global energy strategist Eric Lee told Yahoo Finance this week. West Texas Intermediate crude CL=F rose less than a per cent on Thursday to remain nearly at $82 per barrel, while Brent BZ=F, the international benchmark price, advanced more than a per cent to just over $85 per barrel.&nbsp;

"We do think that there is a bit of a tight stretch [with supply] through the summer, so we do see prices staying in the low- to mid-80s for a little longer. But as we're looking through the second half of the year into 2025, we really see markets getting a lot weightier," said Lee.&nbsp;

Lee expects Brent crude to begin its slide into the $70 range later this year and into the $60 range in 2025. The forecast comes amid recent signals from what's known as oil alliance OPEC+ that it would start phasing out voluntary production cuts, a move curated in response to member countries' hues and cries about losing market share.&nbsp;

"In our base case, we have 1.4 million barrels [of] global oil stock building next year after a roughly balanced market this year," said Lee. "I think when the market sees that, that is bearish for the price."&nbsp;

&nbsp; 
In addition, he sees oil demand growth slowing further out because of the acceleration in electric vehicle adoption. "Oil demand can grow at a slower and slower rate relative to GDP and in fact peak before the end of this decade," Lee said.&nbsp;

Although Citi is known for relatively bearish calls on crude, other analysts also predict a price downtrend next year. JPMorgan strategists call for Brent to average $75 per barrel in 2025, down from $83 this year.&nbsp;

"Global oil demand growth will likely decelerate from 1.4 million barrels per day this year to 1 million barrels per day in 2025 as the last phase of the post-pandemic rebound dissipates and advancing energy efficiencies and an expanding electric vehicle fleet gain ground," Natasha Kaneva, head of global commodities strategy at JPMorgan, said in a recent note.&nbsp;

A consensus cited by Goldman Sachs, specifically, views Brent averaging $84 per barrel this year on the back of a supply squeeze over the summer while saying that the firm expects the international benchmark to average $82 per barrel by 2025.&nbsp;

These oil price outlooks depict a complicated interaction of the dynamics of supply, inventory levels, and especially fast-changing patterns in demand. Should OPEC+ alter its production strategy and see an accelerated pace in terms of the global path to electric vehicles, as previously mentioned, the watch for market participants will be these evolving events shaping future price trends. A potential drop of such nature may hit a reckoning on energy markets and the economy at large, everything from consumer prices to geopolitics.&nbsp;

Citi analysts assume oil prices will peak this summer before crashing next year. "We essentially think ... global inventories will be building a lot next year," Citi's global energy strategist Eric Lee told Yahoo Finance this week.

Citi analysts assume oil prices will peak this summer before crashing next year. "We essentially think ... global inventories will be building a lot next year," Citi's global energy strategist Eric Lee told Yahoo Finance this week. West Texas Intermediate crude CL=F rose less than a per cent on Thursday to remain nearly at $82 per barrel, while Brent BZ=F, the international benchmark price, advanced more than a per cent to just over $85 per barrel. "We do think that there is a bit of a tight stretch [with supply] through the summer, so we do see prices staying in the low- to mid-80s for a little longer. But as we're looking through the second half of the year into 2025, we really see markets getting a lot weightier," said Lee. Lee expects Brent crude to begin its slide into the $70 range later this year and into the $60 range in 2025. The forecast comes amid recent signals from what's known as oil alliance OPEC+ that it would start phasing out voluntary production cuts, a move curated in response to member countries' hues and cries about losing market share. "In our base case, we have 1.4 million barrels [of] global oil stock building next year after a roughly balanced market this year," said Lee. "I think when the market sees that, that is bearish for the price." In addition, he sees oil demand growth slowing further out because of the acceleration in electric vehicle adoption. "Oil demand can grow at a slower and slower rate relative to GDP and in fact peak before the end of this decade," Lee said. Although Citi is known for relatively bearish calls on crude, other analysts also predict a price downtrend next year. JPMorgan strategists call for Brent to average $75 per barrel in 2025, down from $83 this year. "Global oil demand growth will likely decelerate from 1.4 million barrels per day this year to 1 million barrels per day in 2025 as the last phase of the post-pandemic rebound dissipates and advancing energy efficiencies and an expanding electric vehicle fleet gain ground," Natasha Kaneva, head of global commodities strategy at JPMorgan, said in a recent note. A consensus cited by Goldman Sachs, specifically, views Brent averaging $84 per barrel this year on the back of a supply squeeze over the summer while saying that the firm expects the international benchmark to average $82 per barrel by 2025. These oil price outlooks depict a complicated interaction of the dynamics of supply, inventory levels, and especially fast-changing patterns in demand. Should OPEC+ alter its production strategy and see an accelerated pace in terms of the global path to electric vehicles, as previously mentioned, the watch for market participants will be these evolving events shaping future price trends. A potential drop of such nature may hit a reckoning on energy markets and the economy at large, everything from consumer prices to geopolitics.

Oil prices set to soar this summer, plunge in 2025: Citi analysts

The International Energy Agency forecasts a major oil surplus by 2030. Global oil demand, including biofuels, is expected to plateau at around 106 million barrels per day, up from just over 102 million barrels per day in 2023.

IEA projects 8 million barrel per day oil surplus by 2030

International Energy Agency (IEA) has sounded alarm about a substantial surplus in global oil supply,&nbsp;forecasting an excess of millions of barrels per day by the end of this decade.

The IEA’s latest medium-term oil market outlook underscored a dramatic shift as energy transitions gain momentum and global oil production capacity surges.

The report, Oil 2024, revealed that while the world’s demand for oil is set to slow down in the coming years, production is expected to rise. This trend is likely to alleviate market pressures and elevate spare capacity to levels unprecedented outside of the Covid-19 pandemic, as per the report.

"As the pandemic rebound loses steam, clean energy transitions advance, and the structure of China’s economy shifts, growth in global oil demand is slowing down and set to reach its peak by 2030," stated IEA Executive Director Fatih Birol.

"This year, we expect demand to rise by around 1 million barrels per day."

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Global oil demand is projected to increase by 3.2 million barrels per day from 2023 to 2030 unless more robust policies or behavioural changes are adopted.

Emerging economies in Asia, particularly India’s transportation sector and China’s booming petrochemicals industry, are expected to drive this demand.

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Conversely, advanced economies are likely to see a decline in oil consumption, falling from nearly 46 million barrels per day in 2023 to under 43 million barrels per day by 2030 - a level last seen in 1991 outside of the pandemic period.

<h2>Global oil production capacity</h2>

In tandem with these demand trends, global oil production capacity is forecast to rise to nearly 114 million barrels per day by 2030, an astonishing 8 million barrels per day above the projected global demand.

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This would create a level of spare capacity not seen since the peak of the Covid-19 lockdowns in 2020.

Such a surplus could have major repercussions for oil markets and may impact producer economies in OPEC and others.&nbsp;

To meet the demand, the expansion of production capacity is being led predominantly by producers outside of OPEC+, with the United States poised to contribute an additional 2.1 million barrels per day.

Other contributions are expected from Argentina, Brazil, Canada, and Guyana, collectively adding 2.7 million barrels per day.

(With inputs from agencies)

International Energy Agency (IEA) has sounded alarm about a substantial surplus in global oil supply, forecasting an excess of millions of barrels per day by the end of this decade.

International Energy Agency (IEA) has sounded alarm about a substantial surplus in global oil supply, forecasting an excess of millions of barrels per day by the end of this decade. The IEA’s latest medium-term oil market outlook underscored a dramatic shift as energy transitions gain momentum and global oil production capacity surges. The report, Oil 2024, revealed that while the world’s demand for oil is set to slow down in the coming years, production is expected to rise. This trend is likely to alleviate market pressures and elevate spare capacity to levels unprecedented outside of the Covid-19 pandemic, as per the report. "As the pandemic rebound loses steam, clean energy transitions advance, and the structure of China’s economy shifts, growth in global oil demand is slowing down and set to reach its peak by 2030," stated IEA Executive Director Fatih Birol. "This year, we expect demand to rise by around 1 million barrels per day." Also Read | UK police charge man who hurled objects at British right-wing leader Nigel Farage Global oil demand is projected to increase by 3.2 million barrels per day from 2023 to 2030 unless more robust policies or behavioural changes are adopted. Emerging economies in Asia, particularly India’s transportation sector and China’s booming petrochemicals industry, are expected to drive this demand. Also Read | Joe Biden publicly hugs son Hunter after latter's conviction on federal gun charges Conversely, advanced economies are likely to see a decline in oil consumption, falling from nearly 46 million barrels per day in 2023 to under 43 million barrels per day by 2030 - a level last seen in 1991 outside of the pandemic period. Global oil production capacity In tandem with these demand trends, global oil production capacity is forecast to rise to nearly 114 million barrels per day by 2030, an astonishing 8 million barrels per day above the projected global demand. Watch | Hunter Biden convicted in gun trial: Will the conviction impact Joe Biden's Presidential race? × This would create a level of spare capacity not seen since the peak of the Covid-19 lockdowns in 2020. Such a surplus could have major repercussions for oil markets and may impact producer economies in OPEC and others. To meet the demand, the expansion of production capacity is being led predominantly by producers outside of OPEC+, with the United States poised to contribute an additional 2.1 million barrels per day. Other contributions are expected from Argentina, Brazil, Canada, and Guyana, collectively adding 2.7 million barrels per day. (With inputs from agencies)

Global oil surplus to hit millions of barrels daily by 2030 amid slowing demand, rising production

Oil Rose in early Asia trading after registering the biggest rise in 4 months on Monday and this comes ahead of an OPEC report on supply and demand. US crude climbed above $78 a barrel after surging 2.9% in the previous session.

Oil holds biggest gain since February ahead of OPEC market report

Olive oil which has doubled in price over the past two years as per a European Union report Watchers attribute the price surge to prolonged droughts in Olive-growing orchards in Spain.

Spain: Olive oil harvest decreases; Is climate change to blame?

The organisation of the petroleum exporting countries, or OPEC, have extended deep production cuts throughout 2024. This decision comes as oil prices hover around 80 dollar per barrel, a level insufficient for many member nations.

OPEC+ extends deep oil output cuts into 2024 & 2025

Let's look at Russia's crude exports data ahead of the virtual OPEC+ meeting on Sunday. Russia's four-week average oil exports fell for a third consecutive week, with shipments reaching a two-month low.

Russia's crude exports drop comes ahead of OPEC+ meeting

In a bit to compete with India and influence Nepal, China is helping the Himalayan neighbor to look for oil. Watch in for more details.

China helps Nepal in oil & gas exploration

Next month's OPEC+ policy meeting will now be online. Some delegates expect the group to extend its supply cuts into the second half of the year. Watch in for more details!

OPEC to extend supply cuts into the second half of 2024

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