A look at how Global markets performed in January. Oil rose over 6% with Brent crude hitting nearly $83 a barrel even as Red Sea tensions escalate. Gold closed out the month slightly lower but still held above the $2,000 mark. Watch to know more!

Global Economy Outlook | Market moves in January

Saudi Arabia's decision to reverse plans to increase its oil production capacity highlights a long-term risk to the kingdom's oil revenue: competing suppliers. That is also raising concerns about the future of demand.

Saudi needs an oil price of $108 a barrel to balance its budget

Saudi Arabia's unexpected decision to abandon plans to increase its oil production capacity by 8 per cent to 13 million barrels a day by 2027 has sparked speculation about the kingdom's outlook on future oil demand.<o:p></o:p>

This is based on a Bloomberg report.<o:p></o:p>

The announcement from state-run Saudi Aramco has fuelled discussions about whether Riyadh is growing more pessimistic about oil consumption amid the global shift towards low-carbon energy. <o:p></o:p>

While concerns about demand are part of the equation, another significant factor is the competition from rival oil producers, particularly US shale.<o:p></o:p>

The lack of a detailed explanation from Saudi Aramco regarding the shift in production plans has led to speculation within the industry. <o:p></o:p>

Some experts believe that Riyadh's decision is not necessarily permanent shelving but a delay in upstream expansion plans, possibly due to concerns about softer oil balances in the coming years. <o:p></o:p>

Bob McNally, President of Rapidan Energy Group, suggests that Riyadh is responding to the challenges posed by increased supply outside the OPEC+ alliance, indicating a strategic move to adapt to changing market dynamics.<o:p></o:p>

The surge in production from rival suppliers, particularly US shale, has been a persistent concern for Saudi Arabia and its OPEC+ allies. <o:p></o:p>

The shale oil revolution, which began around a decade ago, had a profound impact on global oil markets, leading to a significant drop in crude prices. <o:p></o:p>

Despite the initial retreat of shale drillers during the COVID-19 pandemic, they have staged a comeback in recent years, contributing to record-breaking American output exceeding 13 million barrels a day. <o:p></o:p>

The resilience of shale, coupled with increased production from other nations like Brazil and Guyana, has created a scenario of plenty in the oil market, impacting prices and influencing strategic decisions by major oil-producing nations.<o:p></o:p>

While Saudi Arabia's decision has been associated with global oil market trends, domestic factors are also in play. <o:p></o:p>

The kingdom is expected to face a budget shortfall of about 4.3 per cent of GDP in 2024, with funding requirements exceeding $46 billion. <o:p></o:p>

Economic diversification initiatives, championed by Crown Prince Mohammed bin Salman, involve substantial spending on tourism, sports, and other projects. Aramco, being 98 per cent state-owned, pays significant dividends to the government, even with production cuts. <o:p></o:p>

Abandoning the expansion plans to reach 13 million barrels a day could alleviate budgetary pressures on Aramco by reducing annual spending by approximately $5 billion, providing financial flexibility amid economic challenges.<o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

Saudi Arabia's unexpected decision to abandon plans to increase its oil production capacity by 8 per cent to 13 million barrels a day by 2027 has sparked speculation about the kingdom's outlook on future oil demand.

Saudi Arabia's unexpected decision to abandon plans to increase its oil production capacity by 8 per cent to 13 million barrels a day by 2027 has sparked speculation about the kingdom's outlook on future oil demand. This is based on a Bloomberg report. The announcement from state-run Saudi Aramco has fuelled discussions about whether Riyadh is growing more pessimistic about oil consumption amid the global shift towards low-carbon energy. While concerns about demand are part of the equation, another significant factor is the competition from rival oil producers, particularly US shale. The lack of a detailed explanation from Saudi Aramco regarding the shift in production plans has led to speculation within the industry. Some experts believe that Riyadh's decision is not necessarily permanent shelving but a delay in upstream expansion plans, possibly due to concerns about softer oil balances in the coming years. Bob McNally, President of Rapidan Energy Group, suggests that Riyadh is responding to the challenges posed by increased supply outside the OPEC+ alliance, indicating a strategic move to adapt to changing market dynamics. The surge in production from rival suppliers, particularly US shale, has been a persistent concern for Saudi Arabia and its OPEC+ allies. The shale oil revolution, which began around a decade ago, had a profound impact on global oil markets, leading to a significant drop in crude prices. Despite the initial retreat of shale drillers during the COVID-19 pandemic, they have staged a comeback in recent years, contributing to record-breaking American output exceeding 13 million barrels a day. The resilience of shale, coupled with increased production from other nations like Brazil and Guyana, has created a scenario of plenty in the oil market, impacting prices and influencing strategic decisions by major oil-producing nations. While Saudi Arabia's decision has been associated with global oil market trends, domestic factors are also in play. The kingdom is expected to face a budget shortfall of about 4.3 per cent of GDP in 2024, with funding requirements exceeding $46 billion. Economic diversification initiatives, championed by Crown Prince Mohammed bin Salman, involve substantial spending on tourism, sports, and other projects. Aramco, being 98 per cent state-owned, pays significant dividends to the government, even with production cuts. Abandoning the expansion plans to reach 13 million barrels a day could alleviate budgetary pressures on Aramco by reducing annual spending by approximately $5 billion, providing financial flexibility amid economic challenges. (With inputs from Bloomberg)

Saudi Arabia shelves oil production expansion plans, raising questions on future demand

In a week marking the best performance for US Crude oil in over four months, consumers brace for potential impacts on their wallets as positive economic news reverberates across the globe.

Oil prices settle at their highest in nearly two months

India's oil demand is all set to get a Venezuelan boost. Analysts say that state-owned refiners are set to buy discounted oil from the South American country. Private refiners, analysts suggest, have already bought large amounts of Venezuelan crude after sanctions were lifted last year.

Analysts: State-owned refiners set to buy at discounted prices

Indian state refiners set to join forces to bolster Venezuelan crude buying

India, the rising economic powerhouse, is set to become the main driver of incremental oil use by 2030, surpassing China. With urbanisation, industrialization, and a burgeoning middle class propelling a surge in petroleum consumption, India's impact on the oil market is poised to reshape the world's energy dynamics.

India's petroleum dominance to steer global markets by 2030

In a turn of events, China has successfully bypassed Western sanctions to solidify its oil ties with Russia, making it the country's primary crude oil supplier in 2023. Chinese customs data reveals that Russia surpassed Saudi Arabia, previously the largest supplier, by shipping a record-breaking 107.02 million metric tons of crude oil to China, equivalent to an impressive 2.14 million barrels per day (bpd).<o:p></o:p>

The shift in allegiance to Russia can be attributed to China's strategic move to purchase substantial quantities of discounted oil, defying Western sanctions imposed in the aftermath of Russia's 2022 invasion of Ukraine. Russian crude oil, facing international reluctance, traded at significant discounts to global benchmarks for a considerable part of the year, boosting China's imports and reshaping its oil landscape.<o:p></o:p>

While Saudi Arabia, a dominant player in China's oil market, experienced a 1.8 per cent decline in imports to 85.96 million tons, Russia's competitively priced crude allowed it to gain market share at the expense of the Middle East giant. The discounted Russian ESPO crude witnessed increasing demand from Chinese and Indian refiners throughout 2023, surpassing the Group of Seven's $60-a-barrel price cap imposed in December 2022.<o:p></o:p>

Despite Western sanctions, Chinese refiners adeptly navigated the situation by employing intermediary traders to manage the shipping and insurance aspects of Russian crude. This strategic move allowed China to uphold its oil requirements while avoiding direct violations of the imposed sanctions.<o:p></o:p>

Furthermore, the rising demand for discounted oil prompted changes in the pricing dynamics. December deliveries of ESPO crude were priced at a discount ranging from 50 cents to 20 cents per barrel to the ICE Brent benchmark. This shift in pricing reflected the increased options available for shipping and insurance that circumvented the Western sanctions.<o:p></o:p>

In contrast, Saudi Arabia responded to these market dynamics by raising prices for its signature Arab Light crude from July onwards. The decision aimed to maintain revenue but led some refiners to explore alternatives, given the availability of more cost-effective cargoes.<o:p></o:p>

To stabilise prices, both Saudi Arabia and Russia, two of the world's top three oil producers, announced output and export cuts. While Saudi Arabia extended output cuts of 1 million bpd for the current quarter, Russia declared an increase in its export cut to 500,000 bpd from 300,000 bpd, signalling its commitment to market stability.<o:p></o:p>

In the backdrop of these geopolitical shifts, China's overall crude imports for 2023 reached a record high of 563.99 million metric tons, equivalent to a staggering 11.28 million bpd. The surge in imports from the US, despite geopolitical tensions between Beijing and Washington, contributed to this record, with shipments rising by an impressive 81.1 per cent.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In a turn of events, China has successfully bypassed Western sanctions to solidify its oil ties with Russia, making it the country's primary crude oil supplier in 2023.

In a turn of events, China has successfully bypassed Western sanctions to solidify its oil ties with Russia, making it the country's primary crude oil supplier in 2023. Chinese customs data reveals that Russia surpassed Saudi Arabia, previously the largest supplier, by shipping a record-breaking 107.02 million metric tons of crude oil to China, equivalent to an impressive 2.14 million barrels per day (bpd). The shift in allegiance to Russia can be attributed to China's strategic move to purchase substantial quantities of discounted oil, defying Western sanctions imposed in the aftermath of Russia's 2022 invasion of Ukraine. Russian crude oil, facing international reluctance, traded at significant discounts to global benchmarks for a considerable part of the year, boosting China's imports and reshaping its oil landscape. While Saudi Arabia, a dominant player in China's oil market, experienced a 1.8 per cent decline in imports to 85.96 million tons, Russia's competitively priced crude allowed it to gain market share at the expense of the Middle East giant. The discounted Russian ESPO crude witnessed increasing demand from Chinese and Indian refiners throughout 2023, surpassing the Group of Seven's $60-a-barrel price cap imposed in December 2022. Despite Western sanctions, Chinese refiners adeptly navigated the situation by employing intermediary traders to manage the shipping and insurance aspects of Russian crude. This strategic move allowed China to uphold its oil requirements while avoiding direct violations of the imposed sanctions. Furthermore, the rising demand for discounted oil prompted changes in the pricing dynamics. December deliveries of ESPO crude were priced at a discount ranging from 50 cents to 20 cents per barrel to the ICE Brent benchmark. This shift in pricing reflected the increased options available for shipping and insurance that circumvented the Western sanctions. In contrast, Saudi Arabia responded to these market dynamics by raising prices for its signature Arab Light crude from July onwards. The decision aimed to maintain revenue but led some refiners to explore alternatives, given the availability of more cost-effective cargoes. To stabilise prices, both Saudi Arabia and Russia, two of the world's top three oil producers, announced output and export cuts. While Saudi Arabia extended output cuts of 1 million bpd for the current quarter, Russia declared an increase in its export cut to 500,000 bpd from 300,000 bpd, signalling its commitment to market stability. In the backdrop of these geopolitical shifts, China's overall crude imports for 2023 reached a record high of 563.99 million metric tons, equivalent to a staggering 11.28 million bpd. The surge in imports from the US, despite geopolitical tensions between Beijing and Washington, contributed to this record, with shipments rising by an impressive 81.1 per cent. (With inputs from Reuters)

China defies sanctions, secures Russia as top oil supplier in 2023

Russia has surpassed Saudi Arabia to become China's top crude oil supplier in 2023. The world's biggest crude importer has defied western sanctions to purchase discounted oil for its processing plants.

Russia pips Saudi Arabia to become China's top crude supplier in 2023

Russia pips Saudi Arabia to become China's top oil supplier

Hardeep Singh Puri, India's Union Minister for Petroleum and Natural Gas, on Monday (Jan 8) announced a new oil discovery in the country.&nbsp;

The state-controlled Oil and Natural Gas Corporation (ONGC) on Sunday kicked off oil extraction from its flagship deep-water project in the Krishna Godavari basin offshore the nation's eastern coast.&nbsp;

On Sunday, Puri took to X and said that it was the "First Oil" production commenced from the complex and difficult deepwater KG-DWN-98/2 Block, which is situated off the coast of the Bay of Bengal.&nbsp;

The union minister further said that the energy production of the country is also set to rise from the deepest frontiers of Krishna Godavari.&nbsp;

Also read: <a href="https://www.wionews.com/india-news/india-inked-investment-deals-worth-83bn-potential-for-27mn-jobs-says-tn-govt-677892">Inked Investment deals worth $83bn, potential for 2.7mn jobs, says TN govt</a>&nbsp;

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बधाई भारत! <a href="https://twitter.com/hashtag/ONGCJeetegaToBharatJeetega?src=hash&amp;ref_src=twsrc%5Etfw">#ONGCJeetegaToBharatJeetega</a>! 
 
As India powers ahead as the fastest growing economy under leadership of PM <a href="https://twitter.com/narendramodi?ref_src=twsrc%5Etfw">@NarendraModi</a> Ji, our energy production is also set to rise from the deepest frontiers of <a href="https://twitter.com/hashtag/KrishnaGodavari?src=hash&amp;ref_src=twsrc%5Etfw">#KrishnaGodavari</a> 
 
“First Oil” production commences from the complex &amp;… <a href="https://t.co/gN2iPSs0YZ">pic.twitter.com/gN2iPSs0YZ</a>
— Hardeep Singh Puri (@HardeepSPuri) <a href="https://twitter.com/HardeepSPuri/status/1744053392203252102?ref_src=twsrc%5Etfw">January 7, 2024</a></blockquote>
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<a href="https://twitter.com/hashtag/WATCH?src=hash&amp;ref_src=twsrc%5Etfw">#WATCH</a> | Karnataka: Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri announces new oil discovery in the country. 
 
He says, "30 kilometres off the coast of Kakinada in the Krishna Godavari Basin, the first oil was extracted yesterday. Work started on this in… <a href="https://t.co/gN5s6WsQ4D">pic.twitter.com/gN5s6WsQ4D</a>
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In a video posted by the news agency ANI on Monday, Puri said that the first oil was extracted a day before at 30 kilometres off the coast of Kakinada in the Krishna Godavari Basin.&nbsp;

He said, "Work started on this in 2016-17, then there were some delays due to COVID-19, but I'm sure that out of the 26 wells there, four wells are already operational."&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/india-news/how-sardar-patel-kept-pakistan-from-grabbing-lakshadweep-islands-677850">How Sardar Patel kept Pakistan from grabbing Lakshadweep Islands</a>&nbsp;

He further added, "We will not only have gas also in a very short period but by May and June, we hope to be able to produce 45,000 barrels per day, which will be 7 per cent of our total crude oil production and 7 per cent of our gas production..."&nbsp;

The minister further said that the production is expected to be 45,000 barrels per day and over 10 million cubic metres of gas per day, contributing towards an energy 'Aatmanirbhar Bharat'.&nbsp;

This project is expected to add seven per cent to current national oil production and seven per cent to national natural gas production. &nbsp;

Hardeep Singh Puri, India's Union Minister for Petroleum and Natural Gas, on Monday (Jan 8) announced a new oil discovery in the country. The state-controlled Oil and Natural Gas Corporation (ONGC) on Sunday kicked off oil extraction from its flagship deep-water project in the Krishna Godavari basin offshore the nation's eastern coast.

Hardeep Singh Puri, India's Union Minister for Petroleum and Natural Gas, on Monday (Jan 8) announced a new oil discovery in the country. The state-controlled Oil and Natural Gas Corporation (ONGC) on Sunday kicked off oil extraction from its flagship deep-water project in the Krishna Godavari basin offshore the nation's eastern coast. On Sunday, Puri took to X and said that it was the "First Oil" production commenced from the complex and difficult deepwater KG-DWN-98/2 Block, which is situated off the coast of the Bay of Bengal. The union minister further said that the energy production of the country is also set to rise from the deepest frontiers of Krishna Godavari. Also read: Inked Investment deals worth $83bn, potential for 2.7mn jobs, says TN govt बधाई भारत! #ONGCJeetegaToBharatJeetega! As India powers ahead as the fastest growing economy under leadership of PM @NarendraModi Ji, our energy production is also set to rise from the deepest frontiers of #KrishnaGodavari “First Oil” production commences from the complex &… pic.twitter.com/gN2iPSs0YZ — Hardeep Singh Puri (@HardeepSPuri) January 7, 2024 × #WATCH | Karnataka: Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri announces new oil discovery in the country. He says, "30 kilometres off the coast of Kakinada in the Krishna Godavari Basin, the first oil was extracted yesterday. Work started on this in… pic.twitter.com/gN5s6WsQ4D — ANI (@ANI) January 8, 2024 × In a video posted by the news agency ANI on Monday, Puri said that the first oil was extracted a day before at 30 kilometres off the coast of Kakinada in the Krishna Godavari Basin. He said, "Work started on this in 2016-17, then there were some delays due to COVID-19, but I'm sure that out of the 26 wells there, four wells are already operational." Also read: How Sardar Patel kept Pakistan from grabbing Lakshadweep Islands He further added, "We will not only have gas also in a very short period but by May and June, we hope to be able to produce 45,000 barrels per day, which will be 7 per cent of our total crude oil production and 7 per cent of our gas production..." The minister further said that the production is expected to be 45,000 barrels per day and over 10 million cubic metres of gas per day, contributing towards an energy 'Aatmanirbhar Bharat'. This project is expected to add seven per cent to current national oil production and seven per cent to national natural gas production.

India starts oil extraction from $5 billion deep-water project in Krishna Godavari basin

Oil trade has added a new dimension to the already strong India-Russia ties. Bilateral ties remain strong despite the sanctions against Russia & the ongoing west Asia tensions. In this report, we decode how Russian oil has transformed India's energy demand.

Russia: Top oil supplier to India | Oil import adds new dimension to India-Russia ties

Oil import adds new dimension to India-Russia ties

The UK has deployed its Royal Navy Patrol vessel HMS Trent near Guyana. Venezuelan President Maduro has slammed this move as a provocation and asked 5,600 troops to launch a defensive exercise near the border. The neighbours are locked in a dispute over the oil-rich Esequibo region. Will this lead to an oil war in South America?

Gravitas | Will there be an oil war in South America?

Qatar has agreed to supply Shell in Singapore with up to 18 million barrels of oil a year for five years in what the Gulf state's energy company said was its first ever five-year crude sales deal.

Qatar Energy & Shell ink 5-year-deal for 18 mn barrels a year | CrudeOil Deal

The global economy continued to underperform this year. But the oil & gas sector remained a stand-out performer. The oil and gas industry went on a $250 billion buying spree in 2023. The industry took advantage of high stock prices to secure lower-cost reserves and prepared itself for more consolidation.

Oil & gas industry went on a $250 bn buying spree in 2023

From controlling oil prices to hosting the big climate summit - West Asia achieved major feats this year, despite domestic troubles. Our next report will show you the big developments that further cemented West Asian nations' role as strategic and economic decision-makers.

WION rewind 2023: Changing face of West Asia | Strategy and economy

Turkey and Turkish companies have managed to save approximately $2 billion on energy bills in 2023 by significantly increasing imports of discounted Russian oil and refined products, a Reuters calculation based on LSEG data and traders' estimates has revealed. Despite Western sanctions, Ankara expresses its intention to further strengthen ties with Russia, emerging as the primary importer of Russian energy in the Western hemisphere.<o:p></o:p>

Rising Russian Imports and Savings<o:p></o:p>

Following Russia's invasion of Ukraine, European countries reduced imports of Russian oil and gas, turning Turkey into the largest importer of Russian energy in the Western hemisphere. Proximity to Russian ports grants Turkey substantial savings on freight costs, with estimates suggesting savings of $2 billion on energy bills this year.<o:p></o:p>

Record High Crude Shipments to Turkey<o:p></o:p>

In November 2023, shipments of Russian Urals crude oil to Turkey reached an all-time high of 400,000 barrels per day, accounting for 14 per cent of Russia's overall seaborne oil exports last month. This surge in crude oil imports contributes significantly to Turkey's energy cost savings.<o:p></o:p>

Expanding Energy Partnership<o:p></o:p>

Private Russian oil producer Lukoil recently signed a deal with Azeri firm SOCAR to refine up to 200,000 barrels per day of its oil at Socar’s Turkish STAR refinery, suggesting a further increase in supplies to Turkey. While Russia's energy ministry declined to comment, Turkey's energy ministry, Turpas, and STAR refiner did not respond to requests for comments.<o:p></o:p>

Surge in Refined Product Imports<o:p></o:p>

In addition to rising crude supplies, Turkey has witnessed a 200 per cent increase in imports of Russian diesel, heating oil, jet fuel, and marine fuel from January to November 2023, reaching approximately 0.29 million barrels per day. Russia supplied Turkey with 13 million tonnes of distillates during this period, compared to 4.3 million tonnes in the same period in 2022.<o:p></o:p>

Economic Impact on Turkey<o:p></o:p>

Turkey's strategy of importing discounted Russian oil has proven economically beneficial, with reported savings of between $25 and $150 per ton of Russia diesel and $5-20 per barrel for crude. These savings have played a crucial role in helping Turkey narrow its trade deficit and alleviate pressure on its currency, which has devalued by 30 per cent this year.<o:p></o:p>

Accusations and Denials<o:p></o:p>

While accusations from activists and supporters of Ukraine suggest that Turkey is aiding Russia in bypassing sanctions, the country denies these claims, asserting that it is exporting fuels refined from various types of crude. Critics argue that Turkey's actions may indirectly be helping Russia channel its products to Europe.<o:p></o:p>

A Global Trend<o:p></o:p>

Turkey's approach to save on Russian oil purchases is not unique, as India, refusing to join sanctions against Moscow, has increased imports of Russian oil by 77 per cent in 2023, saving roughly $2.7 billion. Both countries enjoy significant savings on freight rates compared to other importers like India.<o:p></o:p>

Strategic Talks on Russian Gas Hub<o:p></o:p>

In the midst of these developments, Moscow and Ankara are engaged in discussions to set up a hub for Russian gas in Turkey. This initiative aligns with Ankara's longstanding desire to become a major energy distribution hub for southern Europe, offering Russia an alternative route for its gas exports amidst reduced purchases by the EU.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

<o:p></o:p>

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

Turkey and Turkish companies have managed to save approximately $2 billion on energy bills in 2023 by significantly increasing imports of discounted Russian oil and refined products, a Reuters calculation based on LSEG data and traders' estimates has revealed.

Turkey and Turkish companies have managed to save approximately $2 billion on energy bills in 2023 by significantly increasing imports of discounted Russian oil and refined products, a Reuters calculation based on LSEG data and traders' estimates has revealed. Despite Western sanctions, Ankara expresses its intention to further strengthen ties with Russia, emerging as the primary importer of Russian energy in the Western hemisphere. Rising Russian Imports and Savings Following Russia's invasion of Ukraine, European countries reduced imports of Russian oil and gas, turning Turkey into the largest importer of Russian energy in the Western hemisphere. Proximity to Russian ports grants Turkey substantial savings on freight costs, with estimates suggesting savings of $2 billion on energy bills this year. Record High Crude Shipments to Turkey In November 2023, shipments of Russian Urals crude oil to Turkey reached an all-time high of 400,000 barrels per day, accounting for 14 per cent of Russia's overall seaborne oil exports last month. This surge in crude oil imports contributes significantly to Turkey's energy cost savings. Expanding Energy Partnership Private Russian oil producer Lukoil recently signed a deal with Azeri firm SOCAR to refine up to 200,000 barrels per day of its oil at Socar’s Turkish STAR refinery, suggesting a further increase in supplies to Turkey. While Russia's energy ministry declined to comment, Turkey's energy ministry, Turpas, and STAR refiner did not respond to requests for comments. Surge in Refined Product Imports In addition to rising crude supplies, Turkey has witnessed a 200 per cent increase in imports of Russian diesel, heating oil, jet fuel, and marine fuel from January to November 2023, reaching approximately 0.29 million barrels per day. Russia supplied Turkey with 13 million tonnes of distillates during this period, compared to 4.3 million tonnes in the same period in 2022. Economic Impact on Turkey Turkey's strategy of importing discounted Russian oil has proven economically beneficial, with reported savings of between $25 and $150 per ton of Russia diesel and $5-20 per barrel for crude. These savings have played a crucial role in helping Turkey narrow its trade deficit and alleviate pressure on its currency, which has devalued by 30 per cent this year. Accusations and Denials While accusations from activists and supporters of Ukraine suggest that Turkey is aiding Russia in bypassing sanctions, the country denies these claims, asserting that it is exporting fuels refined from various types of crude. Critics argue that Turkey's actions may indirectly be helping Russia channel its products to Europe. A Global Trend Turkey's approach to save on Russian oil purchases is not unique, as India, refusing to join sanctions against Moscow, has increased imports of Russian oil by 77 per cent in 2023, saving roughly $2.7 billion. Both countries enjoy significant savings on freight rates compared to other importers like India. Strategic Talks on Russian Gas Hub In the midst of these developments, Moscow and Ankara are engaged in discussions to set up a hub for Russian gas in Turkey. This initiative aligns with Ankara's longstanding desire to become a major energy distribution hub for southern Europe, offering Russia an alternative route for its gas exports amidst reduced purchases by the EU. (With inputs from Reuters) WATCH WION LIVE HERE

Turkey saves billions on Russian oil amid sanctions, boosting imports

Guyanese president Mohamed Irfan Ali met his Venezuelan counterpart on Thursday. Fresh tensions erupted after Venezuela released a map on the 8th of December showing the disputed area as a part of its territory. This after Venezuelans voted for the creation of a new state in a referendum defying the international court of justice's jurisdiction.

Venezuela-Guyana dispute: Presidents of Venezuela and Guyana meet amid tensions

Citigroup's commodities research team told Bloomberg that oil prices could face a severe plunge next year if OPEC+ producers were to abandon their current production cuts.

Citigroup's oil price forecast for 2024

The United States wants to buy up to 3 million barrels of crude oil for the Strategic Petroleum Reserve (SPR) for delivery in March 2024. This move shows that the US Wants to take advantage of lower prices to replenish the stockpile.

US Wants to buy up to 3 Mn barrels for strategic reserve

Tension is steadily rising between Venezuela and Guyana ever since the former has renewed its claim on Essequibo- an oil-rich region in Guyana. Maduro's government held a referendum in which 95% of the voters backed their country's claim over Essequibo. Guyana called the referendum a threat. This did not stop Maduro from asking his country's oil companies to start issuing licenses for oil extraction in the Guyanese territory. The U.S. has taken a side, and the International Court of Justice has given an order. Is an oil war brewing? Listen in to Vikram Chandra.

Essequibo: Is Venezuela's Maduro starting an oil war in South America?

In a shocking revelation, Greece emerges as an unexpected hub for covert oil trading activities, defying Western sanctions against Russia.&nbsp;

According to Bloomberg, two aging oil tankers, the Turba and Simba, were recently caught on camera engaging in suspicious ship-to-ship fuel transfers off the Greek coast, these vessels, sailing under a flag deemed "very high risk", are part of a vast shadow fleet responsible for handling approximately 45 per cent of Russia's oil shipments this year. &nbsp;

The Greek-owned vessels, operating under the $60 per barrel price cap imposed by sanctions, handled more of Moscow's oil than those of any other individual country except Russia itself.&nbsp;

Sanctions intended to constrain, but profits escalate &nbsp;

The Western sanctions, designed to cut funding for Russia's military assault on Ukraine, included a $60 per barrel price cap for seaborne Russian oil. However, rather than achieving its intended goal, the sanctions have inadvertently created a lucrative business for elusive traders and shipping companies.&nbsp;

Bloomberg quoted&nbsp;Eddie Fishman, a senior research scholar at Columbia University’s Centre on Global Energy Policy, as saying that without concerted action, these substandard alternatives to Western services will become a structural feature of the world oil trade. &nbsp;

The unexpected consequence of reshaping the financial architecture of oil and maritime trade raises concerns about environmental risks and the funds potentially flowing back into Kremlin coffers to finance the Ukraine conflict.&nbsp;

Greek diplomacy and regulatory powerlessness &nbsp;

Despite tentative Western efforts to thwart Russia's workarounds, Greece, the world's single largest oil tanker-owning nation, remains a crucial outlier. Greek-owned vessels have carried 20 per cent of all Russia's oil shipments in 2023, primarily due to diplomatic efforts that watered down measures restricting shippers' ability to trade with Russia.&nbsp;

While Spain successfully stamped out similar activities earlier this year, Greece claims powerlessness to prevent clandestine shipping off its coast, as these activities occur in international waters.&nbsp;

Shadow fleet entrenched and growing &nbsp;

The International Maritime Organisation (IMO) has expressed&nbsp;"grave concern" over the shadow fleet's illegal activities, calling for a global clampdown to prevent environmental disasters. The shadow fleet, responsible for moving about 45 per cent of Russia's oil this year, is becoming increasingly entrenched, as per Lars Barstad, CEO of Frontline Limited’s management arm. &nbsp;

The fear is that regulators' inability to act against these covert operations could make them a permanent feature of the global oil trade.&nbsp;

Shadowy traders and obscure affiliations&nbsp;

The sanctions' unintended consequences have seen a shift from dominant forces like Vitol Group, Glencore Plc, and Trafigura Group to an army of smaller, difficult-to-trace organisations with unclear affiliations. Entities like Bellatrix Energy and Nord Axis Ltd., previously unknown, have emerged and now handle a significant portion of Russian oil shipments. &nbsp;

The lack of transparency has raised concerns about the environmental and financial risks associated with these obscure traders and their involvement in the oil trade.&nbsp;

US and allies' response and the unanswered question &nbsp;

Amid increasing concerns, the US Treasury has sanctioned oil tankers and expressed a desire to push up costs for Russia. President Joe Biden's energy security adviser, Amos Hochstein, said&nbsp;that the US Treasury and others are taking measures to ensure Moscow's profits from the oil trade fall. &nbsp;

However, the ultimate question remains: Do the US and its allies truly want to curtail Russian oil flows, considering the potential impact on global fuel prices in an election year? &nbsp;

The possibility of Moscow employing workarounds, from the shadow fleet to manipulating Western service providers, suggests a complex challenge for policymakers.&nbsp;

(With inputs from Bloomberg)&nbsp;

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In a shocking revelation, Greece emerges as an unexpected hub for covert oil trading activities, defying Western sanctions against Russia. According to Bloomberg, two aging oil tankers, the Turba and Simba, were recently caught on camera engaging in suspicious ship-to-ship fuel transfers off the Greek coast, these vessels, sailing under a flag deemed "very high risk", are part of a vast shadow fleet responsible for handling approximately 45 per cent of Russia's oil shipments this year.

In a shocking revelation, Greece emerges as an unexpected hub for covert oil trading activities, defying Western sanctions against Russia. According to Bloomberg, two aging oil tankers, the Turba and Simba, were recently caught on camera engaging in suspicious ship-to-ship fuel transfers off the Greek coast, these vessels, sailing under a flag deemed "very high risk", are part of a vast shadow fleet responsible for handling approximately 45 per cent of Russia's oil shipments this year. The Greek-owned vessels, operating under the $60 per barrel price cap imposed by sanctions, handled more of Moscow's oil than those of any other individual country except Russia itself. Sanctions intended to constrain, but profits escalate The Western sanctions, designed to cut funding for Russia's military assault on Ukraine, included a $60 per barrel price cap for seaborne Russian oil. However, rather than achieving its intended goal, the sanctions have inadvertently created a lucrative business for elusive traders and shipping companies. Bloomberg quoted Eddie Fishman, a senior research scholar at Columbia University’s Centre on Global Energy Policy, as saying that without concerted action, these substandard alternatives to Western services will become a structural feature of the world oil trade. The unexpected consequence of reshaping the financial architecture of oil and maritime trade raises concerns about environmental risks and the funds potentially flowing back into Kremlin coffers to finance the Ukraine conflict. Greek diplomacy and regulatory powerlessness Despite tentative Western efforts to thwart Russia's workarounds, Greece, the world's single largest oil tanker-owning nation, remains a crucial outlier. Greek-owned vessels have carried 20 per cent of all Russia's oil shipments in 2023, primarily due to diplomatic efforts that watered down measures restricting shippers' ability to trade with Russia. While Spain successfully stamped out similar activities earlier this year, Greece claims powerlessness to prevent clandestine shipping off its coast, as these activities occur in international waters. Shadow fleet entrenched and growing The International Maritime Organisation (IMO) has expressed "grave concern" over the shadow fleet's illegal activities, calling for a global clampdown to prevent environmental disasters. The shadow fleet, responsible for moving about 45 per cent of Russia's oil this year, is becoming increasingly entrenched, as per Lars Barstad, CEO of Frontline Limited’s management arm. The fear is that regulators' inability to act against these covert operations could make them a permanent feature of the global oil trade. Shadowy traders and obscure affiliations The sanctions' unintended consequences have seen a shift from dominant forces like Vitol Group, Glencore Plc, and Trafigura Group to an army of smaller, difficult-to-trace organisations with unclear affiliations. Entities like Bellatrix Energy and Nord Axis Ltd., previously unknown, have emerged and now handle a significant portion of Russian oil shipments. The lack of transparency has raised concerns about the environmental and financial risks associated with these obscure traders and their involvement in the oil trade. US and allies' response and the unanswered question Amid increasing concerns, the US Treasury has sanctioned oil tankers and expressed a desire to push up costs for Russia. President Joe Biden's energy security adviser, Amos Hochstein, said that the US Treasury and others are taking measures to ensure Moscow's profits from the oil trade fall. However, the ultimate question remains: Do the US and its allies truly want to curtail Russian oil flows, considering the potential impact on global fuel prices in an election year? The possibility of Moscow employing workarounds, from the shadow fleet to manipulating Western service providers, suggests a complex challenge for policymakers. (With inputs from Bloomberg) WATCH WION LIVE HERE

Decoding Russia's $11 bn end run around Western oil sanctions

In the intricate world of global oil trade, a profound transformation is unfolding, challenging the longstanding dominance of the U.S. dollar. Recent geopolitical tensions surrounding the Ukraine conflict have intensified this shift, leading to a clash between Russia and India over oil payments.

The Petro-Dollar era unravelled

The U.S. dollar has been the undisputed currency in international oil transactions for decades. However, as Western sanctions gripped Russia in response to the Ukraine conflict, Moscow began steering away from the dollar and euro. Currently, less than 10 per cent&nbsp;of Russia's daily oil output is sold in these dominant currencies. The Russian central bank, restricted by sanctions, faces challenges in dollar operations, prompting a strategic shift in how Russia engages in global trade.

Pivot to India

Amid this shift, India emerged as a pivotal player, becoming Russia's largest buyer of seaborne oil. In a bold move, India insisted on paying for oil in rupees, disrupting established norms. However, this stance faced resistance, as the Russian central bank provided informal guidance against accepting the Indian currency. The resulting standoff almost derailed crucial trading activities, revealing the complexities that arise when traditional powers navigate new and assertive players.

Seeking alternatives amid sanctions

As Moscow faces limited access to the international banking system due to sanctions, Russian oil executives sought alternative currencies to facilitate transactions. The challenge lies in finding a viable substitute for the dollar, a quest that has implications not only for Russia and India but also for other key players such as buyers in Africa, China, and Turkey – all significant purchasers of Russian oil.

The Yuan factor and diplomatic sensitivities

Russian officials and oil executives, pressed by the limitations on the dollar, advocated for transactions in the Chinese yuan. While advantageous for Russia, this proposition faced resistance from India, given the sensitive nature of using the currency of a regional rival. The complexity deepened as Indian state refiners turned to the UAE dirham, introducing additional clearing requirements amidst Washington's tightened stance on enforcing price caps.

The story takes a dramatic turn as at least two major Russian oil companies threatened to redirect tankers carrying millions of tonnes of oil away from India. This move underscored the severity of the clash and the challenges in finding swift solutions. With Washington imposing sanctions on owners of tankers carrying Russian oil, the situation escalates, leaving a cloud of uncertainty over the future dynamics of global oil trade.

Bottomline

This exploration into the clash between Russia and India over oil payments unveils a narrative that goes beyond economic transactions. It reflects geopolitical shifts, the impact of sanctions, and the delicate dance between established and emerging players in the ever-evolving global trade landscape. As we witness the consequences of this clash reverberating across markets, one thing becomes clear – the tides of the global oil trade are shifting, and the implications are profound.

In the intricate world of global oil trade, a profound transformation is unfolding, challenging the longstanding dominance of the U.S. dollar. Recent geopolitical tensions surrounding the Ukraine conflict have intensified this shift, leading to a clash between Russia and India over oil payments.

In the intricate world of global oil trade, a profound transformation is unfolding, challenging the longstanding dominance of the U.S. dollar. Recent geopolitical tensions surrounding the Ukraine conflict have intensified this shift, leading to a clash between Russia and India over oil payments. The Petro-Dollar era unravelled The U.S. dollar has been the undisputed currency in international oil transactions for decades. However, as Western sanctions gripped Russia in response to the Ukraine conflict, Moscow began steering away from the dollar and euro. Currently, less than 10 per cent of Russia's daily oil output is sold in these dominant currencies. The Russian central bank, restricted by sanctions, faces challenges in dollar operations, prompting a strategic shift in how Russia engages in global trade. Pivot to India Amid this shift, India emerged as a pivotal player, becoming Russia's largest buyer of seaborne oil. In a bold move, India insisted on paying for oil in rupees, disrupting established norms. However, this stance faced resistance, as the Russian central bank provided informal guidance against accepting the Indian currency. The resulting standoff almost derailed crucial trading activities, revealing the complexities that arise when traditional powers navigate new and assertive players. Seeking alternatives amid sanctions As Moscow faces limited access to the international banking system due to sanctions, Russian oil executives sought alternative currencies to facilitate transactions. The challenge lies in finding a viable substitute for the dollar, a quest that has implications not only for Russia and India but also for other key players such as buyers in Africa, China, and Turkey – all significant purchasers of Russian oil. The Yuan factor and diplomatic sensitivities Russian officials and oil executives, pressed by the limitations on the dollar, advocated for transactions in the Chinese yuan. While advantageous for Russia, this proposition faced resistance from India, given the sensitive nature of using the currency of a regional rival. The complexity deepened as Indian state refiners turned to the UAE dirham, introducing additional clearing requirements amidst Washington's tightened stance on enforcing price caps. The story takes a dramatic turn as at least two major Russian oil companies threatened to redirect tankers carrying millions of tonnes of oil away from India. This move underscored the severity of the clash and the challenges in finding swift solutions. With Washington imposing sanctions on owners of tankers carrying Russian oil, the situation escalates, leaving a cloud of uncertainty over the future dynamics of global oil trade. Bottomline This exploration into the clash between Russia and India over oil payments unveils a narrative that goes beyond economic transactions. It reflects geopolitical shifts, the impact of sanctions, and the delicate dance between established and emerging players in the ever-evolving global trade landscape. As we witness the consequences of this clash reverberating across markets, one thing becomes clear – the tides of the global oil trade are shifting, and the implications are profound.

Oil's new currency landscape: Russia's struggle beyond the dollar

Soon, your petrol and diesel could get costlier. That's because world's top oil producers could consider further supply cuts, when they meet later this month. Saudi Arabia, Russia and other OPEC+ members have already pledged total oil output cuts of 5.16 million barrels per day.

All eyes are on key OPEC+ meeting on November 26

Asserting India's role in stabilising global oil and gas markets through its strategic purchase policies amid the Russia-Ukraine war, External Affairs Minister S Jaishankar noted that the purchase policies of India managed "global inflation".

During a conversation hosted by the High Commission of India in London, titled 'How a billion people see the world,' Jaishankar discussed India's impactful position in global affairs.

EAM Jaishankar said, "So we've actually softened the oil markets and the gas markets through our purchase policies. We have, as a consequence, actually managed global inflation. I'm waiting for the thank you."

The minister explained that India's approach to oil purchases prevented a surge in global oil prices, preventing potential competition with Europe in the market.

He elaborated, "When it comes to the purchase...I think the global oil prices would have gone higher because we would have gone into the same market to the same suppliers that Europe would have done and as we discovered Europe would have outpriced us."

While acknowledging India's significance in the global markets,&nbsp;Jaishankar noted, "We saw that in the LNG markets where actually many supplies which were traditionally coming into Asia were diverted to Europe and in fact at least India was a big enough country to command some respect in the markets but there were much smaller countries who didn't even get responses to their tender in Paris because the LNG suppliers were no longer interested in dealing with them."

"They have bigger fish to fry," the EAM added.

In addressing India's stance on the Russia-Ukraine war, Jaishankar highlighted the balance between principles and interests.

"We have learned the hard way that people speak of principles...But they are tempered by interest. In this particular case, we have a very powerful interest to keep our relationship with Russia."

The conversation, part of Mr Jaishankar's five-day visit to the UK, took place at the Royal Over-Seas League Club and was moderated by journalist Lionel Barber.

In the conversation, the EAM also underscored India's pivotal role in reforms of the global institutions like the G20 and BRICS, saying that "we are partly evolutionary, partly revolutionary." Addressing the audience, EAM Jaishankar emphasised India's unique position in the evolving global landscape.

Barber questioned Mr Jaishankar, "How do you see India's role in trying to either reform the post 1945 global institutions of governance or building alternatives?"

To this the EAM replied, "We are partly evolutionary, partly revolutionary. We want change without excessive disruption."

Barber also noted that "it has become almost conventional wisdom to say that this is India's most moment."

"But also India seems to find itself in a geopolitical sweet spot between east and west. So perhaps you could talk a little is about how India suddenly appears to be top of the heat, and then how is India going to exploit that position?" he asked Jaishankar.

In response, the EAM said, "I would say there's a momentum because there's a certain process which we are in the middle of at this point of time."

He also went on to elucidate several notable recent achievements of India ranging from handling of "COVID to the economic changes, the recapitalisation of banks, the effort to boost exports, the renewed business confidence, the socioeconomic changes, and a massive embrace of digital technology."

Asserting India's role in stabilising global oil and gas markets through its strategic purchase policies amid the Russia-Ukraine war, External Affairs Minister S Jaishankar noted that the purchase policies of India managed "global inflation".

Asserting India's role in stabilising global oil and gas markets through its strategic purchase policies amid the Russia-Ukraine war, External Affairs Minister S Jaishankar noted that the purchase policies of India managed "global inflation". During a conversation hosted by the High Commission of India in London, titled 'How a billion people see the world,' Jaishankar discussed India's impactful position in global affairs. EAM Jaishankar said, "So we've actually softened the oil markets and the gas markets through our purchase policies. We have, as a consequence, actually managed global inflation. I'm waiting for the thank you." The minister explained that India's approach to oil purchases prevented a surge in global oil prices, preventing potential competition with Europe in the market. He elaborated, "When it comes to the purchase...I think the global oil prices would have gone higher because we would have gone into the same market to the same suppliers that Europe would have done and as we discovered Europe would have outpriced us." While acknowledging India's significance in the global markets, Jaishankar noted, "We saw that in the LNG markets where actually many supplies which were traditionally coming into Asia were diverted to Europe and in fact at least India was a big enough country to command some respect in the markets but there were much smaller countries who didn't even get responses to their tender in Paris because the LNG suppliers were no longer interested in dealing with them." "They have bigger fish to fry," the EAM added. In addressing India's stance on the Russia-Ukraine war, Jaishankar highlighted the balance between principles and interests. "We have learned the hard way that people speak of principles...But they are tempered by interest. In this particular case, we have a very powerful interest to keep our relationship with Russia." The conversation, part of Mr Jaishankar's five-day visit to the UK, took place at the Royal Over-Seas League Club and was moderated by journalist Lionel Barber. In the conversation, the EAM also underscored India's pivotal role in reforms of the global institutions like the G20 and BRICS, saying that "we are partly evolutionary, partly revolutionary." Addressing the audience, EAM Jaishankar emphasised India's unique position in the evolving global landscape. Barber questioned Mr Jaishankar, "How do you see India's role in trying to either reform the post 1945 global institutions of governance or building alternatives?" To this the EAM replied, "We are partly evolutionary, partly revolutionary. We want change without excessive disruption." Barber also noted that "it has become almost conventional wisdom to say that this is India's most moment." "But also India seems to find itself in a geopolitical sweet spot between east and west. So perhaps you could talk a little is about how India suddenly appears to be top of the heat, and then how is India going to exploit that position?" he asked Jaishankar. In response, the EAM said, "I would say there's a momentum because there's a certain process which we are in the middle of at this point of time." He also went on to elucidate several notable recent achievements of India ranging from handling of "COVID to the economic changes, the recapitalisation of banks, the effort to boost exports, the renewed business confidence, the socioeconomic changes, and a massive embrace of digital technology."

'I am waiting for thank you': S Jaishankar lauds India's purchase policies that managed 'global inflation'

Saudi Arabia's non-oil business sector has seen a strong growth trend, as indicated by a recent survey, revealing that the Kingdom's economy has been on an upward trajectory for a second consecutive month in October.

According to Reuters, the Riyad Bank Saudi Arabia Purchasing Managers' Index, which is seasonally adjusted, surged to 58.4 last month, up from September's 57.2. This marks an upturn and stands well above the 50-point threshold, signifying growth. Notably, this figure represents the highest reading since June.

One of the driving factors behind this performance has been the surge in new orders, which has played a pivotal role in sustaining the growth momentum. The new orders sub-index rose to 66.1 in October, marking a four-month high and showcasing a significant improvement from the previous month's 64.2.

The positive impact of this surge in new business has been witnessed across various sectors, including manufacturing and construction. Although the growth in output remained strong, the sub-index eased slightly to 60.1, which is&nbsp;slightly below the long-term trend.

Reuters quoted Naif Al-Ghaith, the chief economist at Riyad Bank, as saying, "The surge in new orders signifies an expanding market and suggests that the non-oil sector is experiencing sustained growth and demand for its products."

This is a promising sign for the Saudi economy, indicating a growing demand for labour and potential improvements in the job market, as reflected by the rise in the employment subindex.

In October, the employment subindex reached a nine-year high of 54.5, up from 52.0 in September.

This surge in employment is in line with the government's plan towards creating more job opportunities for its citizens, a key element of Vision 2030, an ambitious economic diversification plan spearheaded by Crown Prince Mohammed bin Salman.

The plan aims to reduce the nation's dependence on oil and create a more diverse and sustainable economy.

(With inputs from Reuters)

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Saudi Arabia's non-oil business sector has seen a strong growth trend, as indicated by a recent survey, revealing that the Kingdom's economy has been on an upward trajectory for a second consecutive month in October.

Saudi Arabia's non-oil business sector has seen a strong growth trend, as indicated by a recent survey, revealing that the Kingdom's economy has been on an upward trajectory for a second consecutive month in October. According to Reuters, the Riyad Bank Saudi Arabia Purchasing Managers' Index, which is seasonally adjusted, surged to 58.4 last month, up from September's 57.2. This marks an upturn and stands well above the 50-point threshold, signifying growth. Notably, this figure represents the highest reading since June. One of the driving factors behind this performance has been the surge in new orders, which has played a pivotal role in sustaining the growth momentum. The new orders sub-index rose to 66.1 in October, marking a four-month high and showcasing a significant improvement from the previous month's 64.2. The positive impact of this surge in new business has been witnessed across various sectors, including manufacturing and construction. Although the growth in output remained strong, the sub-index eased slightly to 60.1, which is slightly below the long-term trend. Reuters quoted Naif Al-Ghaith, the chief economist at Riyad Bank, as saying, "The surge in new orders signifies an expanding market and suggests that the non-oil sector is experiencing sustained growth and demand for its products." This is a promising sign for the Saudi economy, indicating a growing demand for labour and potential improvements in the job market, as reflected by the rise in the employment subindex. In October, the employment subindex reached a nine-year high of 54.5, up from 52.0 in September. This surge in employment is in line with the government's plan towards creating more job opportunities for its citizens, a key element of Vision 2030, an ambitious economic diversification plan spearheaded by Crown Prince Mohammed bin Salman. The plan aims to reduce the nation's dependence on oil and create a more diverse and sustainable economy. (With inputs from Reuters) WATCH WION LIVE HERE

Saudi Arabia’s non-oil business activity surges to four-month high on new orders

Saudi Arabia and Russia have confirmed their commitment to maintaining oil supply reductions of over 1 million barrels per day until the end of the year, even as geopolitical tensions in West Asia continue to unsettle global oil markets.

According to a Bloomberg report, leaders of the OPEC+ coalition jointly announced this decision in separate official statements on Sunday. Riyadh has significantly reduced its daily crude production by 1 million barrels, while Moscow is curbing its oil exports by 300,000 barrels. These actions are in addition to previous production cuts implemented with other OPEC+ member nations.

Saudi Arabia intends to review its production levels in the coming month and will consider the options of "extending the cut, deepening the cut, or increasing production," as stated by the Saudi Press Agency.

Russia's Deputy Prime Minister, Alexander Novak, echoed these sentiments in a separate statement.

Recent weeks have seen fluctuations in oil prices due to concerns about the conflict between Israel and Hamas potentially escalating into a larger regional conflict involving major crude producer Iran. On Friday, Brent futures closed just under $85 a barrel in London.

Should a broader conflict ensue, it might prompt both Saudi Arabia and Russia to reassess their planned production cuts. The International Energy Agency has warned about the potential risks posed by high fuel prices to global inflation and the economy. Nevertheless, for now, the Organisation of Petroleum Exporting Countries (OPEC) and its partners remain committed to keeping oil supplies under strict control.

Saudi Arabia, in particular, may be motivated to continue these production cuts as it seeks oil prices as high as $100, according to Bloomberg Economics. Such high prices are essential to fund ambitious projects like Neom, a futuristic city, and the acquisition of prominent athletes for domestic sports franchises. On the other hand, President Vladimir Putin relies on petroleum revenues to finance ongoing efforts related to the situation in Ukraine.

According to Bloomberg, Saudi Energy Minister Prince Abdulaziz bin Salman previously stated at the Future Investment Initiative conference in Riyadh that the kingdom's oil-market strategy has been effective.

Additionally, signs of weakness in physical oil markets may incentivise Saudi Arabia to maintain its course. Declining profits in the fuel-making sector and rising freight costs for transporting crude across regions have posed challenges. Despite industry expectations, substantial inventory declines have yet to materialise, as observed by Goldman Sachs Group Inc.

Eurasia Group, a consultancy, suggests that Saudi Arabia might be compelled to extend its unilateral 1 million barrel-a-day production cut into 2024 if market conditions continue to deteriorate. The International Energy Agency predicts that a new surplus in supply will emerge early next year as demand growth slows significantly.

The entire OPEC+ coalition, comprised of 23 nations, is scheduled to convene for a ministerial meeting on November 26 to review the policy for 2024.

(With inputs from Bloomberg)

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Saudi Arabia and Russia have confirmed their commitment to maintaining oil supply reductions of over 1 million barrels per day until the end of the year, even as geopolitical tensions in West Asia continue to unsettle global oil markets.

Saudi Arabia and Russia have confirmed their commitment to maintaining oil supply reductions of over 1 million barrels per day until the end of the year, even as geopolitical tensions in West Asia continue to unsettle global oil markets. According to a Bloomberg report, leaders of the OPEC+ coalition jointly announced this decision in separate official statements on Sunday. Riyadh has significantly reduced its daily crude production by 1 million barrels, while Moscow is curbing its oil exports by 300,000 barrels. These actions are in addition to previous production cuts implemented with other OPEC+ member nations. Saudi Arabia intends to review its production levels in the coming month and will consider the options of "extending the cut, deepening the cut, or increasing production," as stated by the Saudi Press Agency. Russia's Deputy Prime Minister, Alexander Novak, echoed these sentiments in a separate statement. Recent weeks have seen fluctuations in oil prices due to concerns about the conflict between Israel and Hamas potentially escalating into a larger regional conflict involving major crude producer Iran. On Friday, Brent futures closed just under $85 a barrel in London. Should a broader conflict ensue, it might prompt both Saudi Arabia and Russia to reassess their planned production cuts. The International Energy Agency has warned about the potential risks posed by high fuel prices to global inflation and the economy. Nevertheless, for now, the Organisation of Petroleum Exporting Countries (OPEC) and its partners remain committed to keeping oil supplies under strict control. Saudi Arabia, in particular, may be motivated to continue these production cuts as it seeks oil prices as high as $100, according to Bloomberg Economics. Such high prices are essential to fund ambitious projects like Neom, a futuristic city, and the acquisition of prominent athletes for domestic sports franchises. On the other hand, President Vladimir Putin relies on petroleum revenues to finance ongoing efforts related to the situation in Ukraine. According to Bloomberg, Saudi Energy Minister Prince Abdulaziz bin Salman previously stated at the Future Investment Initiative conference in Riyadh that the kingdom's oil-market strategy has been effective. Additionally, signs of weakness in physical oil markets may incentivise Saudi Arabia to maintain its course. Declining profits in the fuel-making sector and rising freight costs for transporting crude across regions have posed challenges. Despite industry expectations, substantial inventory declines have yet to materialise, as observed by Goldman Sachs Group Inc. Eurasia Group, a consultancy, suggests that Saudi Arabia might be compelled to extend its unilateral 1 million barrel-a-day production cut into 2024 if market conditions continue to deteriorate. The International Energy Agency predicts that a new surplus in supply will emerge early next year as demand growth slows significantly. The entire OPEC+ coalition, comprised of 23 nations, is scheduled to convene for a ministerial meeting on November 26 to review the policy for 2024. (With inputs from Bloomberg) WATCH WION LIVE HERE

Saudi Arabia and Russia hold steady on oil production cuts amid West Asia tensions

Oil prices fell on Thursday after a rise in US crude stockpiles and a climb in the dollar index, giving up some ground gained a day earlier when prices jumped on Middle East tensions.

Oil prices climb as West Asian tensions rise

Just days after the US eased oil sanctions on Venezuela, the South American country has already begun contacting customers with crude supply contracts. A Reuters report states that the Venezuelan state-run oil company PDVSA is moving towards resuming cash sales to global refiners.

Venezuela in talks to supply more oil | World Business News

In response to an electoral agreement between the Venezuelan government and opposition parties for the 2024 election, the Biden administration has taken a significant step by broadly easing sanctions on Venezuela's oil sector. The move marks the most extensive rollback of Trump-era sanctions on Caracas. The U.S. Treasury Department has issued a new general license, allowing OPEC member Venezuela, which has been under strict sanctions since 2019, to produce and export oil to its selected markets for the next six months without limitations.&nbsp;

U.S. Secretary of State Antony Blinken has welcomed President Nicolas Maduro's electoral concessions but urged him to begin lifting bans on opposition presidential candidates and releasing political prisoners and detained Americans by the end of November. A senior State Department official cautioned that sanctions relief measures might be reversed if Maduro fails to take such actions. These changes follow months of negotiations between the U.S. and Venezuela aimed at encouraging democratic elections.&nbsp;

While this easing of sanctions represents a significant shift from the Trump administration's "maximum pressure" campaign against Venezuela's socialist government, it also reflects President Joe Biden's administration's increased engagement with President Maduro on various issues, including energy and migration.&nbsp;

Venezuela's ruling party official, Jorge Rodriguez, stated that the sanctions relief applies to all oil activities and opens the doors to investment opportunities in the country.&nbsp;

The recent agreement between Maduro's government and the opposition focused on electoral guarantees for an internationally monitored vote in the second half of 2024. However, it did not address the reinstatement of opposition candidates previously barred from public office. The U.S. sanctions relief is in line with Washington's commitment to rewarding concrete steps toward competitive elections and respect for human rights and fundamental freedoms.&nbsp;

Although these measures have eased some of Venezuela's toughest sanctions, other restrictions remain in place. Still, they offer the possibility of reopening Venezuela to numerous oil companies that had limited operations in the country.&nbsp;

The U.S. had initially imposed harsh sanctions on Venezuela following President Maduro's disputed 2018 re-election. Since 2019, these sanctions have prevented the state-run oil company PDVSA from exporting to its chosen markets.&nbsp;

The changes announced on Wednesday include a six-month general license for the production, sale, and export of Venezuela's crude and gas without limitations on customers or destinations. A general license has also been issued to allow dealings with Minerven, the Venezuelan state-owned gold mining company. However, the U.S. Treasury Department emphasized that it could revoke these authorizations if Maduro's representatives fail to follow through on their commitments.&nbsp;

Although the easing of sanctions could help boost global oil flows amid high prices due to sanctions on Russia and OPEC+ output reductions, experts believe Venezuela's exports are unlikely to offset these cuts without significant investment in its oil sector. Two decades of mismanagement and insufficient investment, combined with U.S. oil sanctions since 2019, have weakened PDVSA's ability to recover quickly and offer its crude at fair prices.&nbsp;

Talks between the government and the opposition on resolving Venezuela's political and economic crisis were held for the first time in nearly a year, resulting in the recent electoral agreement. While the deal allows each side to choose its 2024 candidate, it does not reverse bans on certain opposition figures.&nbsp;

(With inputs from Reuters)&nbsp;

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In response to an electoral agreement between the Venezuelan government and opposition parties for the 2024 election, the Biden administration has taken a significant step by broadly easing sanctions on Venezuela's oil sector.

In response to an electoral agreement between the Venezuelan government and opposition parties for the 2024 election, the Biden administration has taken a significant step by broadly easing sanctions on Venezuela's oil sector. The move marks the most extensive rollback of Trump-era sanctions on Caracas. The U.S. Treasury Department has issued a new general license, allowing OPEC member Venezuela, which has been under strict sanctions since 2019, to produce and export oil to its selected markets for the next six months without limitations. U.S. Secretary of State Antony Blinken has welcomed President Nicolas Maduro's electoral concessions but urged him to begin lifting bans on opposition presidential candidates and releasing political prisoners and detained Americans by the end of November. A senior State Department official cautioned that sanctions relief measures might be reversed if Maduro fails to take such actions. These changes follow months of negotiations between the U.S. and Venezuela aimed at encouraging democratic elections. While this easing of sanctions represents a significant shift from the Trump administration's "maximum pressure" campaign against Venezuela's socialist government, it also reflects President Joe Biden's administration's increased engagement with President Maduro on various issues, including energy and migration. Venezuela's ruling party official, Jorge Rodriguez, stated that the sanctions relief applies to all oil activities and opens the doors to investment opportunities in the country. The recent agreement between Maduro's government and the opposition focused on electoral guarantees for an internationally monitored vote in the second half of 2024. However, it did not address the reinstatement of opposition candidates previously barred from public office. The U.S. sanctions relief is in line with Washington's commitment to rewarding concrete steps toward competitive elections and respect for human rights and fundamental freedoms. Although these measures have eased some of Venezuela's toughest sanctions, other restrictions remain in place. Still, they offer the possibility of reopening Venezuela to numerous oil companies that had limited operations in the country. The U.S. had initially imposed harsh sanctions on Venezuela following President Maduro's disputed 2018 re-election. Since 2019, these sanctions have prevented the state-run oil company PDVSA from exporting to its chosen markets. The changes announced on Wednesday include a six-month general license for the production, sale, and export of Venezuela's crude and gas without limitations on customers or destinations. A general license has also been issued to allow dealings with Minerven, the Venezuelan state-owned gold mining company. However, the U.S. Treasury Department emphasized that it could revoke these authorizations if Maduro's representatives fail to follow through on their commitments. Although the easing of sanctions could help boost global oil flows amid high prices due to sanctions on Russia and OPEC+ output reductions, experts believe Venezuela's exports are unlikely to offset these cuts without significant investment in its oil sector. Two decades of mismanagement and insufficient investment, combined with U.S. oil sanctions since 2019, have weakened PDVSA's ability to recover quickly and offer its crude at fair prices. Talks between the government and the opposition on resolving Venezuela's political and economic crisis were held for the first time in nearly a year, resulting in the recent electoral agreement. While the deal allows each side to choose its 2024 candidate, it does not reverse bans on certain opposition figures. (With inputs from Reuters) WATCH WION LIVE HERE

US eases sanctions on Venezuelan oil after Maduro's 2024 poll agreement

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