The onset of the embargo contributed to an upward spiral in oil prices with global implications. The price of oil per barrel first doubled, then quadrupled, imposing skyrocketing costs on consumers and structural challenges to the stability of whole national economies.

Flashback Friday: The 1973 oil crisis

The Biden administration and Venezuelan President Nicolas Maduro's government are expected to announce a deal on Tuesday that would ease U.S. sanctions on Caracas' oil industry while opening up Venezuela's 2024 presidential election, the Washington Post reported on Monday.

US to ease Venezuela santions on oil, gas; US issues general licences authorising transactions

The global oil market is experiencing significant shifts as reports emerge of potential sanctions easing on Venezuela contingent of course on the prospect of a competitive monitored presidential election. Meanwhile, the ongoing Israel-Hamas conflict has surprisingly left crude supplies relatively untouched.

Oil drops on reports of potential sanction easing in Venezuela

US to ease sanctions on Venezuelan oil for freer presidential election

Oil steadies on hopes US will ease sanctions on Venezuela

Global oil markets are on the edge as reports emerge of potential sanctions easing on Venezuela. With oil broadly undettered despite geopolitical tensions, investors stay cautious of looming supply shocks.

Global oil price volatility in the spotlight

After denouncing the price cap that was imposed by the EU and the G7 on Russian oil, Moscow is now trying to cover up the losses that it may have to incur because of that.

Global oil supply constraint is here to stay, says Vladimir Putin

India's oil minister, Hardeep Singh Puri, has expressed concerns over the supply-side management by OPEC+ in recent months, suggesting that it could lead to demand destruction. In an interview given to Argus Media, Puri emphasises the need for OPEC+ producers to consider the consequences of their decisions, as high oil prices strain fragile economies.

Indian Oil Minister Hardeep Singh Puri on oil prices

In the face of oil prices persistently hovering over $90 a barrel, the Indian oil Minister Hardeep Singh Puri attended an industry conference in Abu Dhabi and he called for sensitivity from oil-producing Nations.

India's economic concerns prompt call for oil price relief

India is calling for "sensitivity" from oil producers as crude oil prices hover near $90 a barrel. This appeal comes as Indian oil minister Hardeep Singh Puri met with OPEC Secretary General Haitham Al Ghais in Abu Dhabi during an industry conference.

According to a report by Reuters, Puri emphasised the need for oil producers to consider the impact of their policies on oil-consuming countries, especially as the global economy teeters on the brink of recession.

Puri stated on social media platform X, "During the pandemic, when crude oil prices crashed, the world came together to stabilise the prices to make it sustainable for the producers. Now, as the world is at the cusp of economic recession and slowdown, oil producers need to show the same sensitivity towards the consuming countries."

The United States and Western allies have also been urging OPEC+ to increase oil output to alleviate the pressure on energy costs and support the global economy. OPEC+ producers, however, argue that they are acting preemptively to maintain market stability.

Puri later confirmed in an interview with Reuters that he had discussed oil prices with Ghais, saying, "If the petroleum and natural gas minister of one of the largest consuming countries meets the OPEC secretary-general, who has an inside track into the OPEC+, surely we discussed prices."

India, which relies on imports for approximately 85 per cent of its crude oil needs, has been closely monitoring the situation. Puri acknowledged that while India could manage if oil prices rose above $100 per barrel, such a scenario would not be "in anyone's interest." As per a Reuters report, he expressed concern for other developing nations, stating, "I hope it (oil price) doesn't go above $100 ... India will manage ... I would worry about what happens to other parts of the developing world."

In recent months, India has sought alternative sources of oil due to geopolitical tensions. After Western countries imposed sanctions on Russia following its invasion of Ukraine, Indian refiners turned to&nbsp;discounted Russian oil. Puri clarified that India would continue to purchase Russian oil as long as it remained within the Western countries' price cap of $60 a barrel. He also mentioned that if the prices were to exceed the cap, it was clear that they would not proceed with the purchases.&nbsp;

Russian oil exports to India surge in September&nbsp;

Meanwhile, on a different note, Russian oil exports to India experienced a significant rebound in September. Shipments of Russian oil to India surged by 15 per cent from a seven-month low in August, driven by ample supply and attractive price discounts, Bloomberg reported.

&nbsp;These shipments amounted to 1.78 million barrels a day last month. Experts suggest that this trend is likely to continue, as Russia's ban on diesel exports will lead domestic refiners to reduce production, freeing up more crude for overseas markets. India predominantly purchases the Urals grade of Russian crude, which is delivered at a discount of around $4 per barrel compared to Brent, making it a more appealing option than term supplies from the Middle East.

Bloomberg cited Viktor Katona, the lead crude analyst at Kpler, who highlighted that there is "plentiful room" for Russian oil imports to increase further, especially with the potential for even greater discounts in the future as the availability of Russian crude grows. In contrast, imports from Iraq, India's second-largest supplier, rose by 9.4 per cent in September, while cargoes from Saudi Arabia, the third-largest supplier, fell by 41 per cent.

(With inputs from agencies)&nbsp;

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India is calling for "sensitivity" from oil producers as crude oil prices hover near $90 a barrel. This appeal comes as Indian oil minister Hardeep Singh Puri met with OPEC Secretary General Haitham Al Ghais in Abu Dhabi during an industry conference.

India is calling for "sensitivity" from oil producers as crude oil prices hover near $90 a barrel. This appeal comes as Indian oil minister Hardeep Singh Puri met with OPEC Secretary General Haitham Al Ghais in Abu Dhabi during an industry conference. According to a report by Reuters, Puri emphasised the need for oil producers to consider the impact of their policies on oil-consuming countries, especially as the global economy teeters on the brink of recession. Puri stated on social media platform X, "During the pandemic, when crude oil prices crashed, the world came together to stabilise the prices to make it sustainable for the producers. Now, as the world is at the cusp of economic recession and slowdown, oil producers need to show the same sensitivity towards the consuming countries." The United States and Western allies have also been urging OPEC+ to increase oil output to alleviate the pressure on energy costs and support the global economy. OPEC+ producers, however, argue that they are acting preemptively to maintain market stability. Puri later confirmed in an interview with Reuters that he had discussed oil prices with Ghais, saying, "If the petroleum and natural gas minister of one of the largest consuming countries meets the OPEC secretary-general, who has an inside track into the OPEC+, surely we discussed prices." India, which relies on imports for approximately 85 per cent of its crude oil needs, has been closely monitoring the situation. Puri acknowledged that while India could manage if oil prices rose above $100 per barrel, such a scenario would not be "in anyone's interest." As per a Reuters report, he expressed concern for other developing nations, stating, "I hope it (oil price) doesn't go above $100 ... India will manage ... I would worry about what happens to other parts of the developing world." In recent months, India has sought alternative sources of oil due to geopolitical tensions. After Western countries imposed sanctions on Russia following its invasion of Ukraine, Indian refiners turned to discounted Russian oil. Puri clarified that India would continue to purchase Russian oil as long as it remained within the Western countries' price cap of $60 a barrel. He also mentioned that if the prices were to exceed the cap, it was clear that they would not proceed with the purchases. Russian oil exports to India surge in September Meanwhile, on a different note, Russian oil exports to India experienced a significant rebound in September. Shipments of Russian oil to India surged by 15 per cent from a seven-month low in August, driven by ample supply and attractive price discounts, Bloomberg reported. These shipments amounted to 1.78 million barrels a day last month. Experts suggest that this trend is likely to continue, as Russia's ban on diesel exports will lead domestic refiners to reduce production, freeing up more crude for overseas markets. India predominantly purchases the Urals grade of Russian crude, which is delivered at a discount of around $4 per barrel compared to Brent, making it a more appealing option than term supplies from the Middle East. Bloomberg cited Viktor Katona, the lead crude analyst at Kpler, who highlighted that there is "plentiful room" for Russian oil imports to increase further, especially with the potential for even greater discounts in the future as the availability of Russian crude grows. In contrast, imports from Iraq, India's second-largest supplier, rose by 9.4 per cent in September, while cargoes from Saudi Arabia, the third-largest supplier, fell by 41 per cent. (With inputs from agencies) WATCH WION LIVE HERE

India urges oil producers for 'sensitivity' as prices near $90: Report  

State-owned Saudi Aramco increased the price of its signature Arab Light to Asia in October by 10 cents to $3.60 a barrel over the benchmark, according to a price list obtained by Bloomberg. Although still the highest since December, the increase was less than the 30-cent increase predicted in a Bloomberg survey.

The de facto leader of OPEC increased prices for all grades by 20 cents a barrel to a record high for supply going to the US.

The action follows Saudi Arabia’s announcement this week that it will extend supply restrictions through December. It will maintain production at 9 million barrels per day, the lowest level in a number of years, as Russia extends its own export restrictions.

This has given rise to optimism that 2023 will conclude strongly for the oil market. After months of supply restrictions, Brent crude futures recently surpassed $90 per barrel, and some traders are betting on $100.

There was some respite for European buyers who had recently experienced a run of significant price increases. The list revealed that Aramco reduced supply costs into the Mediterranean and Northwest Europe by 10 cents per barrel, while they are still historically high.

European consumers of the kingdom’s petroleum were forced to look for alternatives, and many have since switched to sweet, or low-sulfur, oil.

Since the beginning of the year, the price of higher sulphurous crude, which accounts for the majority of the Saudi supply cuts, has skyrocketed. As a result, benchmark Brent crude futures have occasionally traded at significant discounts to barrels of lower quality from the Middle East.

(With inputs from Bloomberg)

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State-owned Saudi Aramco increased the price of its signature Arab Light to Asia in October by 10 cents to $3.60 a barrel over the benchmark, according to a price list obtained by Bloomberg.

State-owned Saudi Aramco increased the price of its signature Arab Light to Asia in October by 10 cents to $3.60 a barrel over the benchmark, according to a price list obtained by Bloomberg. Although still the highest since December, the increase was less than the 30-cent increase predicted in a Bloomberg survey. The de facto leader of OPEC increased prices for all grades by 20 cents a barrel to a record high for supply going to the US. The action follows Saudi Arabia’s announcement this week that it will extend supply restrictions through December. It will maintain production at 9 million barrels per day, the lowest level in a number of years, as Russia extends its own export restrictions. This has given rise to optimism that 2023 will conclude strongly for the oil market. After months of supply restrictions, Brent crude futures recently surpassed $90 per barrel, and some traders are betting on $100. There was some respite for European buyers who had recently experienced a run of significant price increases. The list revealed that Aramco reduced supply costs into the Mediterranean and Northwest Europe by 10 cents per barrel, while they are still historically high. European consumers of the kingdom’s petroleum were forced to look for alternatives, and many have since switched to sweet, or low-sulfur, oil. Since the beginning of the year, the price of higher sulphurous crude, which accounts for the majority of the Saudi supply cuts, has skyrocketed. As a result, benchmark Brent crude futures have occasionally traded at significant discounts to barrels of lower quality from the Middle East. (With inputs from Bloomberg) WATCH WION LIVE HERE

Saudi Arabia raises oil prices to Asia for fourth consecutive month: Report  

A day after Saudi Arabia and Russia extended their attempts to tighten the oil market, the Saudi kingdom handed consumers in Asia and the United States a small price hike for its oil.

Brent oil nears $100 as supplies shrink

The Russian government's revenue from oil and natural gas exports fell in August despite a rise in crude prices and a depreciating rouble, driven largely by government subsidies for the country's refiners.

Russia's oil & gas revenue slumps despite rising crude prices

The Russian government's revenue from oil and natural gas exports fell in August despite a rise in crude prices and a depreciating Rouble, driven largely by government subsidies for the country's refiners.

Oil and gas revenues for the Russian government fell in August as subsidies to the country’s refiners counterbalanced an increase in crude prices and a depreciating rouble.

The Russian Finance Ministry reported on Tuesday that budget revenues from oil and gas decreased 4.3 per cent from a year ago to 642.7 billion roubles ($6.6 billion).&nbsp;

According to calculations by Bloomberg, taxes on crude and petroleum products, which last month made up 80 per cent of the nation’s hydrocarbon revenues, decreased to 511.9 billion roubles.&nbsp;

The decrease followed tax refunds, payments for refinery modernisation, and subsidies of 185.9 billion roubles given to diesel and petrol producers for deliveries to the domestic market.

Due to the Russia-Ukraine war and accompanying Western sanctions, the oil and gas sector,&nbsp;which make up around a third of the country’s government revenue,&nbsp;has been under pressure.&nbsp;

In order to prevent an influx of petrodollars and to deter Moscow from using them to fund its military actions, the Group of Seven industrialised nations or G7 set a price restriction on Russian petroleum and other exports.

Monday saw the highest price for Brent crude, the international benchmark for oil, this year, after Saudi Arabia and Russia decided to limit their oil supply in an effort to drive up prices.&nbsp;

China, a major consumer, has increased steps to bolster its economy, building up confidence in the strength of demand.

Russia’s Urals crude blend averaged $74 a barrel last month, going over the G-7’s $60 price threshold for the second month in a row. Its discount to Brent decreased to $12.20 per barrel, which is significantly less than the level of April.

The sale of oil, which is priced in foreign currencies, has increased as a result of the severe devaluation of the ruble. The average exchange rate to the US dollar this month was 95.5 roubles, up from 60.3 roubles a year earlier.&nbsp;

"When the Russian currency declines by just one ruble, that amounts to an additional 100 billion-120 billion rubles in budget revenue, adjusted for a 12-month period," Bloomberg quoted Alexander Isakov, an economist with Bloomberg Economics Russia, as saying.&nbsp;

(With inputs from Bloomberg)&nbsp;

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Oil and gas revenues for the Russian government fell in August as subsidies to the country’s refiners counterbalanced an increase in crude prices and a depreciating rouble.

Oil and gas revenues for the Russian government fell in August as subsidies to the country’s refiners counterbalanced an increase in crude prices and a depreciating rouble. The Russian Finance Ministry reported on Tuesday that budget revenues from oil and gas decreased 4.3 per cent from a year ago to 642.7 billion roubles ($6.6 billion). According to calculations by Bloomberg, taxes on crude and petroleum products, which last month made up 80 per cent of the nation’s hydrocarbon revenues, decreased to 511.9 billion roubles. The decrease followed tax refunds, payments for refinery modernisation, and subsidies of 185.9 billion roubles given to diesel and petrol producers for deliveries to the domestic market. Due to the Russia-Ukraine war and accompanying Western sanctions, the oil and gas sector, which make up around a third of the country’s government revenue, has been under pressure. In order to prevent an influx of petrodollars and to deter Moscow from using them to fund its military actions, the Group of Seven industrialised nations or G7 set a price restriction on Russian petroleum and other exports. Monday saw the highest price for Brent crude, the international benchmark for oil, this year, after Saudi Arabia and Russia decided to limit their oil supply in an effort to drive up prices. China, a major consumer, has increased steps to bolster its economy, building up confidence in the strength of demand. Russia’s Urals crude blend averaged $74 a barrel last month, going over the G-7’s $60 price threshold for the second month in a row. Its discount to Brent decreased to $12.20 per barrel, which is significantly less than the level of April. The sale of oil, which is priced in foreign currencies, has increased as a result of the severe devaluation of the ruble. The average exchange rate to the US dollar this month was 95.5 roubles, up from 60.3 roubles a year earlier. "When the Russian currency declines by just one ruble, that amounts to an additional 100 billion-120 billion rubles in budget revenue, adjusted for a 12-month period," Bloomberg quoted Alexander Isakov, an economist with Bloomberg Economics Russia, as saying. (With inputs from Bloomberg) WATCH WION LIVE HERE

Russian oil and gas revenue falls due to increased subsidies  

As the harvest season unfolds in Russia’s southern regions, often referred to as the country's breadbasket, a severe fuel shortage has cast a cloud of uncertainty over this crucial agricultural heartland.

Russian grain belt struggles with acute fuel deficit

Inflation is soaring in India. Measures are being taken to control high prices. The Indian government is reportedly considering a plan to reduce taxes applicable on petrol.

Will the Indian government reduce taxes on oil to contain inflation?

In a groundbreaking development that marks a significant step towards enhancing bilateral economic ties, the Abu Dhabi National Oil Company (ADNOC) and the Indian Oil Corporation Limited (IOCL) completed the first-ever crude oil transaction under the newly implemented Local Currency Settlement (LCS) system.

The transaction involved the sale of approximately 1 million barrels of crude oil, with both Indian Rupees (INR) and UAE Dirhams (AED) being used for settlement. A statement from the Indian mission in UAE said, "LCS is likely to have a transformational impact not only on the bilateral economic relationship but in the larger economic engagements across the world."

Also Read | <a href="https://www.wionews.com/world/from-ew-to-yum-new-york-chef-promotes-eating-creepy-crawlies-as-sustainable-delicacies-625500">From 'ew' to 'yum': New York chef promotes eating creepy crawlies as sustainable delicacies</a>

The LCS mechanism was established as a result of a Memorandum of Understanding (MoU) exchanged during Prime Minister Narendra Modi's visit to UAE last month on July 15. This agreement is expected to significantly reduce transaction costs and time, while also promoting the use of national currencies for cross-border transactions.

The LCS mechanism provides traders with the flexibility to choose the payment currency based on mutual agreement. Additionally, the surplus balance in local currencies resulting from transactions can be invested in various local currency assets such as corporate bonds, government securities, and equity markets. This innovative approach is set to have a transformative impact on not only the economic relationship between India and the UAE but also on broader economic engagements across the world.

Also Read | <a href="https://www.wionews.com/world/at-least-five-killed-seven-missing-after-migrant-boat-capsizes-off-tunisian-coast-625496">At least five killed, seven missing after migrant boat capsizes off Tunisian coast</a>

While the oil transaction between ADNOC and IOCL is the second major exchange under the LCS, the first transaction involved&nbsp;gold. This earlier transaction involved the sale of 25 kg of gold from a prominent UAE gold exporter to a buyer in India, with the invoice totalling approximately Rs 12.84 crore. This successful gold transaction demonstrated the feasibility and efficiency of the LCS mechanism.

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Petroleum and petroleum products constitute a major portion of bilateral trade between the two nations. Last year alone, the trade in petroleum products amounted to a staggering US$ 35.10 billion, accounting for 41.4 per cent&nbsp;of the total bilateral trade volume. The UAE stands as the fourth-largest source of crude oil and the second-largest source of LNG and LPG for India.

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&nbsp;

In a groundbreaking development that marks a significant step towards enhancing bilateral economic ties, the Abu Dhabi National Oil Company (ADNOC) and the Indian Oil Corporation Limited (IOCL) completed the first-ever crude oil transaction under the newly implemented Local Currency Settlement (LCS) system.

In a groundbreaking development that marks a significant step towards enhancing bilateral economic ties, the Abu Dhabi National Oil Company (ADNOC) and the Indian Oil Corporation Limited (IOCL) completed the first-ever crude oil transaction under the newly implemented Local Currency Settlement (LCS) system. The transaction involved the sale of approximately 1 million barrels of crude oil, with both Indian Rupees (INR) and UAE Dirhams (AED) being used for settlement. A statement from the Indian mission in UAE said, "LCS is likely to have a transformational impact not only on the bilateral economic relationship but in the larger economic engagements across the world." Also Read | From 'ew' to 'yum': New York chef promotes eating creepy crawlies as sustainable delicacies The LCS mechanism was established as a result of a Memorandum of Understanding (MoU) exchanged during Prime Minister Narendra Modi's visit to UAE last month on July 15. This agreement is expected to significantly reduce transaction costs and time, while also promoting the use of national currencies for cross-border transactions. The LCS mechanism provides traders with the flexibility to choose the payment currency based on mutual agreement. Additionally, the surplus balance in local currencies resulting from transactions can be invested in various local currency assets such as corporate bonds, government securities, and equity markets. This innovative approach is set to have a transformative impact on not only the economic relationship between India and the UAE but also on broader economic engagements across the world. Also Read | At least five killed, seven missing after migrant boat capsizes off Tunisian coast While the oil transaction between ADNOC and IOCL is the second major exchange under the LCS, the first transaction involved gold. This earlier transaction involved the sale of 25 kg of gold from a prominent UAE gold exporter to a buyer in India, with the invoice totalling approximately Rs 12.84 crore. This successful gold transaction demonstrated the feasibility and efficiency of the LCS mechanism. WATCH | India: Chandrayaan-3 craft completes 30 days in space × Petroleum and petroleum products constitute a major portion of bilateral trade between the two nations. Last year alone, the trade in petroleum products amounted to a staggering US$ 35.10 billion, accounting for 41.4 per cent of the total bilateral trade volume. The UAE stands as the fourth-largest source of crude oil and the second-largest source of LNG and LPG for India. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. ×

Historic first: India and UAE settle crude oil transaction using national currencies

In this segment of the global market roundup, a market wrap of Asia Pacific markets is trading mixed as rising bond yields continue to put pressure on equities in the wake of the US credit downgrade.

Oil markets set for sixth week of gains

India’s crude oil imports from Saudi Arabia declined by 34 per cent in July, according to energy cargo tracker Vortexa. A Moneycontrol report said that India imported 484,000 barrels of crude oil per day in July, compared to 734,000 barrels per day (bpd) in June.

The decline in India's imports came after the West Asian kingdom announced supply cuts of one million bpd in July.

Saudi Arabia and a number of other oil-producing nations have cut oil supply in a bid to stabilise the global oil prices, Apart from Saudi Arabia, Iraq had decided to lower its oil supply by over 200,000 bpd through the end of the year. In May, Russia and the Organization of the Petroleum Exporting Countries announced a cut in oil production by 1.6 million bpd for the rest of the year.

Increase in crude oil imports from Russia

In the meantime, Russia continued to be India’s top crude oil supplier in July. According to Viktor Katona,&nbsp;head of crude analysis at&nbsp;Kpler's, daily volumes increased for the tenth straight month in June, reaching 2.2 million barrels per day. The data reveals that India received more crude oil from Moscow than it did from Saudi Arabia and Iraq, its usual suppliers, put together.

Following the invasion of Ukraine, India became a prime consumer of Russian oil, but due to infrastructural problems and the need to maintain good relations with other suppliers, the country’s oil purchase may have reached its limit.

Kpler however predicted that due to a decline in Russian oil production, imports may fall next month. According to a Bloomberg report, Reliance Industries Ltd. is the second-largest consumer of Russian crude after state-owned Indian Oil Corporation.

India, the third-largest consumer and importer of oil in the world, purchases more than 80 per cent of its oil from foreign markets.

&nbsp;

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India’s crude oil imports from Saudi Arabia declined by 34 per cent in July, according to energy cargo tracker Vortexa. A Moneycontrol report said that India imported 484,000 barrels of crude oil per day in July, compared to 734,000 barrels per day (bpd) in June.

India’s crude oil imports from Saudi Arabia declined by 34 per cent in July, according to energy cargo tracker Vortexa. A Moneycontrol report said that India imported 484,000 barrels of crude oil per day in July, compared to 734,000 barrels per day (bpd) in June. The decline in India's imports came after the West Asian kingdom announced supply cuts of one million bpd in July. Saudi Arabia and a number of other oil-producing nations have cut oil supply in a bid to stabilise the global oil prices, Apart from Saudi Arabia, Iraq had decided to lower its oil supply by over 200,000 bpd through the end of the year. In May, Russia and the Organization of the Petroleum Exporting Countries announced a cut in oil production by 1.6 million bpd for the rest of the year. Increase in crude oil imports from Russia In the meantime, Russia continued to be India’s top crude oil supplier in July. According to Viktor Katona, head of crude analysis at Kpler's, daily volumes increased for the tenth straight month in June, reaching 2.2 million barrels per day. The data reveals that India received more crude oil from Moscow than it did from Saudi Arabia and Iraq, its usual suppliers, put together. Following the invasion of Ukraine, India became a prime consumer of Russian oil, but due to infrastructural problems and the need to maintain good relations with other suppliers, the country’s oil purchase may have reached its limit. Kpler however predicted that due to a decline in Russian oil production, imports may fall next month. According to a Bloomberg report, Reliance Industries Ltd. is the second-largest consumer of Russian crude after state-owned Indian Oil Corporation. India, the third-largest consumer and importer of oil in the world, purchases more than 80 per cent of its oil from foreign markets. WATCH WION LIVE HERE

India sees 34 per cent fall in oil imports from Saudi Arabia; supplies from Russia increase

Pakistan is in a looming crisis again. The nation is facing a fresh set of challenges. The all-important oil deal between Pakistan and Russia has hit a roadblock. Pakistan’s plan to import oil from Russia may delay further.

Why did Pakistan's plan to import Russian crude oil hit a roadblock?

In its bid to prevent a disastrous spill, the United Nations on Tuesday released a statement saying that it had commenced the process of transferring one million barrels of oil from a super-tanker, that was rusting, off the war-torn country Yemen.

"The United Nations has begun an operation to defuse what might be the world's largest ticking time bomb," UN Secretary-General Antonio Guterres said in a statement.&nbsp;

"A complex maritime salvage effort is now underway in the Red Sea off the coast of war-torn Yemen to transfer one million barrels of oil from the decaying FSO Safer to a replacement vessel."&nbsp;

Taking to social media, the United Nations resident coordinator for Yemen, David Gressly, said that the transfer of 1.14 million barrels of Marib light crude from the 47-year-old FSO Safer to the new vessel will most likely take "less than three weeks".

<h2>Success is far from certain, say experts</h2>

According to experts, factors like soaring temperatures, old pipelines and sea mines loitering in surrounding waters, pose a grave threat to the success of the operation.

"Because it is the start of the emergency phase of the project to remove the oil, we need to be very cautious," Sarah Bel, spokeswoman for the UN Development Programme, told reporters in Geneva.

The United Nations hopes that the operation, worth &nbsp;$143 million, will obliterate the risk of an environmental tragedy, that if occurs, will on an estimate cost $20 billion to clean up.&nbsp;

Considering the Safer's position in the Red Sea, a spill would also cost billions of dollars per day as it would cause shipping disruptions through the Bab al-Mandab Strait to the Suez Canal, and would also destroy ecosystems, coastal fishing communities and lifeline ports.&nbsp;

The Safer, which is a floating storage and offloading facility, has been tied up around 50 kilometres (30 miles) from the port of Hodeida since the 1980s.&nbsp;

The storage has not been serviced since the war broke out, which happened nearly eight years ago between Yemen's Huthi rebels, who regulate the capital Sanaa and the waters where the Safer is placed, and a Saudi-led alliance supporting the internationally recognised government based in the southern Yemeni city of Aden.&nbsp;

The rusting tanker is holding four times as much oil as was spilled in the 1989 Exxon Valdez disaster off Alaska.&nbsp;

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<h2>Even if the transfer succeeds, Safer will still pose a threat, warns UN</h2>

For years now, a scaffolding crew of workers on the ship, which at any given time were merely around seven or eight, were the ones who made efforts to prevent any kind of leakage or on-board detonation that would send a thin slick of oil across the Red Sea.&nbsp;

In the month of March, the United Nations bought a replacement vessel, dubbed Nautica, with an aim to get the oil out of Safer.

Experts from the private company SMIT Salvage were called two months later to analyse if the Safer could resist the transfer operation.&nbsp;

Last week, the United Nations engaged in a symbolic handover of the Nautica to "the people of Yemen", though the shipping company Euronav will continue to assist it on the UN's behalf for at least six months.&nbsp;

The United Nations also released a warning saying that even if the transfer successfully takes place, the Safer "will pose a residual environmental threat, holding viscous oil residue and remaining at risk of breaking apart."

Disputes are also expected over the ownership of the oil and the Nautica.

But as per some people, the Safer crisis is a positive sign.

"I hope it will be the beginning of the peace process," news agency AFP quotes Fathi Fahem, the Yemeni business leader who first put forward the idea of a replacement vessel for the Safer two years ago, as saying.

In what United Nations calls one of the world's worst humanitarian crises, thousands of people have lost their lives in the battle in Yemen or from factors such as lack of food and water.

Yet clashes between the Iran-backed Huthis and the Saudi-led coalition have reduced sharply since a UN-brokered truce began in April last year, even though it lapsed in October.&nbsp;

UN's Gressly said in a conversation with news agency AFP that the collaboration over the Safer could help pave the way for an enduring ceasefire between Yemen's clashing parties.&nbsp;

"Any time that you have an initiative, a project, where all parties need to cooperate, it's a positive sign that can be used and built upon," AFP quoted UN's Gressly as saying.&nbsp;

"But there's much work to be done to achieve peace here, many issues still outstanding. This issue by itself won't solve those."

(With inputs from agencies) 
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In its bid to prevent a disastrous spill, the United Nations on Tuesday released a statement saying that it had commenced the process of transferring one million barrels of oil from a super-tanker, that was rusting, off the war-torn country Yemen.

In its bid to prevent a disastrous spill, the United Nations on Tuesday released a statement saying that it had commenced the process of transferring one million barrels of oil from a super-tanker, that was rusting, off the war-torn country Yemen. "The United Nations has begun an operation to defuse what might be the world's largest ticking time bomb," UN Secretary-General Antonio Guterres said in a statement. "A complex maritime salvage effort is now underway in the Red Sea off the coast of war-torn Yemen to transfer one million barrels of oil from the decaying FSO Safer to a replacement vessel." Taking to social media, the United Nations resident coordinator for Yemen, David Gressly, said that the transfer of 1.14 million barrels of Marib light crude from the 47-year-old FSO Safer to the new vessel will most likely take "less than three weeks". Success is far from certain, say experts According to experts, factors like soaring temperatures, old pipelines and sea mines loitering in surrounding waters, pose a grave threat to the success of the operation. "Because it is the start of the emergency phase of the project to remove the oil, we need to be very cautious," Sarah Bel, spokeswoman for the UN Development Programme, told reporters in Geneva. The United Nations hopes that the operation, worth $143 million, will obliterate the risk of an environmental tragedy, that if occurs, will on an estimate cost $20 billion to clean up. Considering the Safer's position in the Red Sea, a spill would also cost billions of dollars per day as it would cause shipping disruptions through the Bab al-Mandab Strait to the Suez Canal, and would also destroy ecosystems, coastal fishing communities and lifeline ports. The Safer, which is a floating storage and offloading facility, has been tied up around 50 kilometres (30 miles) from the port of Hodeida since the 1980s. The storage has not been serviced since the war broke out, which happened nearly eight years ago between Yemen's Huthi rebels, who regulate the capital Sanaa and the waters where the Safer is placed, and a Saudi-led alliance supporting the internationally recognised government based in the southern Yemeni city of Aden. The rusting tanker is holding four times as much oil as was spilled in the 1989 Exxon Valdez disaster off Alaska. Also read: Explained | What is Middle East Respiratory Syndrome Coronavirus infection detected in a UAE man? Even if the transfer succeeds, Safer will still pose a threat, warns UN For years now, a scaffolding crew of workers on the ship, which at any given time were merely around seven or eight, were the ones who made efforts to prevent any kind of leakage or on-board detonation that would send a thin slick of oil across the Red Sea. In the month of March, the United Nations bought a replacement vessel, dubbed Nautica, with an aim to get the oil out of Safer. Experts from the private company SMIT Salvage were called two months later to analyse if the Safer could resist the transfer operation. Last week, the United Nations engaged in a symbolic handover of the Nautica to "the people of Yemen", though the shipping company Euronav will continue to assist it on the UN's behalf for at least six months. The United Nations also released a warning saying that even if the transfer successfully takes place, the Safer "will pose a residual environmental threat, holding viscous oil residue and remaining at risk of breaking apart." Disputes are also expected over the ownership of the oil and the Nautica. But as per some people, the Safer crisis is a positive sign. "I hope it will be the beginning of the peace process," news agency AFP quotes Fathi Fahem, the Yemeni business leader who first put forward the idea of a replacement vessel for the Safer two years ago, as saying. In what United Nations calls one of the world's worst humanitarian crises, thousands of people have lost their lives in the battle in Yemen or from factors such as lack of food and water. Yet clashes between the Iran-backed Huthis and the Saudi-led coalition have reduced sharply since a UN-brokered truce began in April last year, even though it lapsed in October. UN's Gressly said in a conversation with news agency AFP that the collaboration over the Safer could help pave the way for an enduring ceasefire between Yemen's clashing parties. "Any time that you have an initiative, a project, where all parties need to cooperate, it's a positive sign that can be used and built upon," AFP quoted UN's Gressly as saying. "But there's much work to be done to achieve peace here, many issues still outstanding. This issue by itself won't solve those." (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Explained | Race against time to prevent oil tanker ecological catastrophe

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Indian Prime Minister Narendra Modi is set to embark on a crucial diplomatic tour this week. He will travel to France for a two-day visit and will attend the Bastille Day Parade as the chief guest after this he will head to the Gulf Nation UAE.

Indian PM to embark on UAE key visit

About 45 minutes away from Dubai's International Airport, Ras Al Khaimah is now poised to become the UAE's next cash cow. It is a country renowned for its architectural wonders and majestic palm Islands.

The rise of UAE's Ras Al Kamiah, beyond gold, glitter and oil

Indonesia's coast guard seized an Iranian-flagged supertanker, named MT Arman 114, on suspicion of engaging in the illicit transfer of crude oil, media reports said.&nbsp;

The vessel, carrying approximately 272,569 metric tons of light crude oil worth $304 million, was seized in the North Natuna Sea last week.

The Indonesian maritime security agency discovered that the Very Large Crude Carrier (VLCC) had been involved in an unauthorised ship-to-ship oil transfer with another vessel, MT S Tinos, sailing under the flag of Cameroon.

Also Read | <a href="https://www.wionews.com/world/trial-opens-over-new-zealands-2019-white-island-volcanic-eruption-incident-that-killed-22-614451">Trial opens over New Zealand's 2019 White Island volcanic eruption incident that killed 22</a>

The Indonesian authorities revealed that the Arman had falsified its position using an automatic identification system (AIS), pretending to be in the Red Sea when it was actually operating in Indonesian waters. Furthermore, the vessel had discharged oil into the ocean, violating Indonesia's environmental laws.&nbsp;

<h2>Arrest&nbsp;</h2>

Indonesian authorities apprehended not only the Arman but also its Egyptian captain, 28 crew members, and three passengers who were relatives of a security officer on board.

The supertanker and MT S Tinos attempted to flee, prompting a pursuit led by Indonesian authorities with assistance from Malaysia, as the vessels ventured into Malaysian waters.

Also Read | <a href="https://www.wionews.com/world/thailands-outgoing-prime-minister-prayut-chan-o-cha-announces-retirement-from-politics-614430">Thailand's outgoing prime minister Prayut Chan-o-Cha announces retirement from politics</a>

The maritime agency's chief, Aan Kurnia, noted that the Tinos was supposed to have been scrapped in 2018, while the Arman was constructed in 1997.

According to shipping databases quoted by media reports, Arman 114 had previously been known as the Grace 1, the same vessel that was seized by British Royal Marine commandos in 2019 for allegedly attempting to transport oil to Syria in violation of EU sanctions.

It was released a month later following a diplomatic dispute with Western nations.

<h2>Growing concerns and strengthened maritime patrols</h2>

A recent Reuters analysis uncovered a "shadow" fleet of tankers involved in transferring oil from sanctioned countries like Iran, Russia, and Venezuela in the Singapore Strait to evade detection.

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This clandestine trade, coupled with the entry of numerous uninsured ships, has heightened the risk&nbsp;of oil spills and accidents.

In response to these concerns, Indonesia's coast guard, in collaboration with other relevant authorities, has vowed to enhance patrols within its waters.

As the world's largest archipelago, comprising approximately 17,000 islands, Indonesia is determined to adopt a firm and resolute approach to prevent such incidents from recurring.

In 2021, Indonesia seized vessels with Iranian and Panamanian flags on similar charges, and the captains of those ships were handed two years' probation by an Indonesian court.

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Indonesia's coast guard seized an Iranian-flagged supertanker, named MT Arman 114, on suspicion of engaging in the illicit transfer of crude oil, media reports said.

Indonesia's coast guard seized an Iranian-flagged supertanker, named MT Arman 114, on suspicion of engaging in the illicit transfer of crude oil, media reports said. The vessel, carrying approximately 272,569 metric tons of light crude oil worth $304 million, was seized in the North Natuna Sea last week. The Indonesian maritime security agency discovered that the Very Large Crude Carrier (VLCC) had been involved in an unauthorised ship-to-ship oil transfer with another vessel, MT S Tinos, sailing under the flag of Cameroon. Also Read | Trial opens over New Zealand's 2019 White Island volcanic eruption incident that killed 22 The Indonesian authorities revealed that the Arman had falsified its position using an automatic identification system (AIS), pretending to be in the Red Sea when it was actually operating in Indonesian waters. Furthermore, the vessel had discharged oil into the ocean, violating Indonesia's environmental laws. Arrest Indonesian authorities apprehended not only the Arman but also its Egyptian captain, 28 crew members, and three passengers who were relatives of a security officer on board. The supertanker and MT S Tinos attempted to flee, prompting a pursuit led by Indonesian authorities with assistance from Malaysia, as the vessels ventured into Malaysian waters. Also Read | Thailand's outgoing prime minister Prayut Chan-o-Cha announces retirement from politics The maritime agency's chief, Aan Kurnia, noted that the Tinos was supposed to have been scrapped in 2018, while the Arman was constructed in 1997. According to shipping databases quoted by media reports, Arman 114 had previously been known as the Grace 1, the same vessel that was seized by British Royal Marine commandos in 2019 for allegedly attempting to transport oil to Syria in violation of EU sanctions. It was released a month later following a diplomatic dispute with Western nations. Growing concerns and strengthened maritime patrols A recent Reuters analysis uncovered a "shadow" fleet of tankers involved in transferring oil from sanctioned countries like Iran, Russia, and Venezuela in the Singapore Strait to evade detection. Watch | Why US military deals are not enough to wean India off Russian arms yet × This clandestine trade, coupled with the entry of numerous uninsured ships, has heightened the risk of oil spills and accidents. In response to these concerns, Indonesia's coast guard, in collaboration with other relevant authorities, has vowed to enhance patrols within its waters. As the world's largest archipelago, comprising approximately 17,000 islands, Indonesia is determined to adopt a firm and resolute approach to prevent such incidents from recurring. In 2021, Indonesia seized vessels with Iranian and Panamanian flags on similar charges, and the captains of those ships were handed two years' probation by an Indonesian court. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. ×

Iranian-flagged tanker seized by Indonesia for suspected illegal oil transfer

The global hunger for fossil fuel continues even as climate change driven by excessive use of fossil fuels threatens mankind. Oil and gas giants have intensified their search for newer deposits as demand keeps increasing oil and gas firms have enjoyed record profits, owing to price rise amid the Ukraine war.

Oil and gas investments to rise to $528 billion in 2023

As the global oil prices rose yet again on the World Environment Day, the debate around whether rising oil prices are good or not is back on the ground. Although high oil, gas, and coal prices on consumers are good for the environment as they lower demand. the effect of high prices on producers can be bad for the environment because they encourage increased supply. Oil prices rose after Saudi Arabia pledged to cut production by a further 1 million barrels per day from July.

Oil rises on Saudi plan to deepen output cuts

Oil prices experienced a significant boost, surging over 2 percent on Monday, following an unexpected announcement by Saudi Arabia, the world's largest oil exporter, that it would&nbsp;slash its production by an additional 1 million barrels per day from July onwards.

Saudi Arabia's move is being seen as an effort to effectively countering the prevailing macroeconomic challenges that have weighed down the oil market. Following the announcement, Brent crude futures soared to $77.64 a barrel, marking a $1.51 increase. On the other hand, U.S. West Texas Intermediate crude climbed to $73.15 a barrel, representing a gain of $1.41, as per a Reuters report.&nbsp;

Saudi Arabia's energy ministry announced on Sunday that the country's oil production would drop to 9 million barrels per day in July, down from around 10 million barrels per day in May. This reduction constitutes the kingdom's most substantial cut in years and adds to the broader agreement by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, to limit oil supply until 2024. The voluntary production cut by Saudi Arabia aims to combat the challenges faced by the oil market, which has been grappling with persistently low prices.

The unexpected announcement by Saudi Arabia has injected renewed optimism into the oil market.

Analysts predict that the additional cut, combined with the existing production limitations, could create a market deficit exceeding 3 million barrels per day in July. Consequently, this deficit is expected to drive prices higher in the coming weeks. Consultancy firm Rystad Energy told Reuters that there is a&nbsp;potential for a tighter oil market in the second half of the year, reinforcing the positive market sentiment triggered by Saudi Arabia's decision.

The Implications of the OPEC+ Agreement

The agreement among OPEC+ nations to extend production cuts until 2024 is seen as a collective effort to bolster oil prices. However, the impact of the production cuts&nbsp;may be limited due to adjustments made to quotas for certain countries. Russia, Nigeria, and Angola have already lowered their targets to align with their actual production levels, potentially diluting the overall impact of the cuts. Conversely, the United Arab Emirates (UAE) has been permitted to raise its output targets by approximately 200,000 barrels per day, reaching 3.22 million barrels per day. This decision has come at the expense of African nations, which have had their unused quotas reduced under the new agreement.

The number of operating oil rigs plummeted by 15 to a record low of 555 last week in the United States, according to the weekly report by Baker Hughes Co cited by Reuters. This decline reflects the industry's response to weaker prices, increased costs, and a shift toward prioritizing shareholder repayments over drilling activities. These factors have contributed to a slowdown in drilling operations since December.

(With inputs from Reuters)

Oil prices experienced a significant boost, surging over 2 percent on Monday, following an unexpected announcement by Saudi Arabia, the world's largest oil exporter, that it would slash its production by an additional 1 million barrels per day from July onwards.

Oil prices experienced a significant boost, surging over 2 percent on Monday, following an unexpected announcement by Saudi Arabia, the world's largest oil exporter, that it would slash its production by an additional 1 million barrels per day from July onwards. Saudi Arabia's move is being seen as an effort to effectively countering the prevailing macroeconomic challenges that have weighed down the oil market. Following the announcement, Brent crude futures soared to $77.64 a barrel, marking a $1.51 increase. On the other hand, U.S. West Texas Intermediate crude climbed to $73.15 a barrel, representing a gain of $1.41, as per a Reuters report. Saudi Arabia's energy ministry announced on Sunday that the country's oil production would drop to 9 million barrels per day in July, down from around 10 million barrels per day in May. This reduction constitutes the kingdom's most substantial cut in years and adds to the broader agreement by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, to limit oil supply until 2024. The voluntary production cut by Saudi Arabia aims to combat the challenges faced by the oil market, which has been grappling with persistently low prices. The unexpected announcement by Saudi Arabia has injected renewed optimism into the oil market. Analysts predict that the additional cut, combined with the existing production limitations, could create a market deficit exceeding 3 million barrels per day in July. Consequently, this deficit is expected to drive prices higher in the coming weeks. Consultancy firm Rystad Energy told Reuters that there is a potential for a tighter oil market in the second half of the year, reinforcing the positive market sentiment triggered by Saudi Arabia's decision. The Implications of the OPEC+ Agreement The agreement among OPEC+ nations to extend production cuts until 2024 is seen as a collective effort to bolster oil prices. However, the impact of the production cuts may be limited due to adjustments made to quotas for certain countries. Russia, Nigeria, and Angola have already lowered their targets to align with their actual production levels, potentially diluting the overall impact of the cuts. Conversely, the United Arab Emirates (UAE) has been permitted to raise its output targets by approximately 200,000 barrels per day, reaching 3.22 million barrels per day. This decision has come at the expense of African nations, which have had their unused quotas reduced under the new agreement. The number of operating oil rigs plummeted by 15 to a record low of 555 last week in the United States, according to the weekly report by Baker Hughes Co cited by Reuters. This decline reflects the industry's response to weaker prices, increased costs, and a shift toward prioritizing shareholder repayments over drilling activities. These factors have contributed to a slowdown in drilling operations since December. (With inputs from Reuters)

Oil prices get a 'royal' boost: Oil prices soar after Saudi's production cuts

India's import of&nbsp;Russian oil has reached unprecedented levels, surpassing the combined oil purchases from Saudi Arabia, Iraq, the UAE, and the US.

India imported 1.96 million barrels per day&nbsp;from Russia in May alone, marking a 15 percent increase from the previous high in April. These statistics, obtained from energy cargo tracker Vortexa, highlight Russia's rising dominance in India's crude oil market, constituting almost 42 percent of all oil imported that month.

The surge in Russia's share came at the expense of traditional Middle Eastern suppliers. Shipments from Saudi Arabia dropped to their lowest level since February 2021, totaling 560,000 tonnes. The Organization of the Petroleum Exporting Countries (OPEC) also witnessed a decline, with its share in India's oil imports reaching an all-time low of 39 percent in May. Previously, OPEC, primarily comprising countries from the Middle East and Africa, accounted for up to 90 percent of India's crude oil imports. However, the availability of discounted Russian oil following Moscow's invasion of Ukraine in February last year prompted a shift in India's import sources.

For the eighth consecutive month, Russia emerged as the largest single supplier of crude oil to India.&nbsp;The country has&nbsp;now surpassed&nbsp;the combined purchases from Iraq and Saudi Arabia, which were India's primary suppliers in the past decade, as well as the UAE and the US. Iraq supplied 0.83 million bpd of oil in May, while the UAE shipped 203,000 bpd, and the US accounted for 138,000 barrels per day.

Factors Driving the Trend

The dramatic increase in imports from Russia can be attributed to Indian refiners capitalizing on the availability of abundant Russian crude, which is offered at a discount compared to other grades. Previously, Indian refiners were deterred by high freight costs associated with Russian oil, but they now find it economically favorable. Refiners have grown confident in processing Russian crude, leading to a voracious appetite for this source. Industry experts cited by various news agencies predict that Indian refiners will continue to increase their reliance on Russian crude as long as they can back off from spot crude purchases.

One of the key drivers behind the surge in imports is the favorable pricing. In April, the average cost of Russian crude, including freight costs, landed on Indian shores at $68.21 per barrel, the lowest level since the Ukraine conflict began. In comparison, Saudi Arabian crude was priced at $86.96 per barrel, while Iraqi oil stood at $77.77 per barrel. Although the May import price has not yet been released, the cost advantage enjoyed by Russian oil makes it an attractive option for Indian refiners.

Russia's increased oil sales to India are partly attributed to the European Union's ban on Russian seaborne oil imports and the imposition of a $60-per-barrel price cap in December. These restrictions prevent other countries from utilizing EU shipping and insurance services unless they sell oil below the cap. Industry officials have revealed that Indian refiners are leveraging the UAE's dirham to pay for oil imported at prices lower than $60, further facilitating the Russian oil trade.

India's import of Russian oil has reached unprecedented levels, surpassing the combined oil purchases from Saudi Arabia, Iraq, the UAE, and the US. India imported 1.

India's import of Russian oil has reached unprecedented levels, surpassing the combined oil purchases from Saudi Arabia, Iraq, the UAE, and the US. India imported 1.96 million barrels per day from Russia in May alone, marking a 15 percent increase from the previous high in April. These statistics, obtained from energy cargo tracker Vortexa, highlight Russia's rising dominance in India's crude oil market, constituting almost 42 percent of all oil imported that month. The surge in Russia's share came at the expense of traditional Middle Eastern suppliers. Shipments from Saudi Arabia dropped to their lowest level since February 2021, totaling 560,000 tonnes. The Organization of the Petroleum Exporting Countries (OPEC) also witnessed a decline, with its share in India's oil imports reaching an all-time low of 39 percent in May. Previously, OPEC, primarily comprising countries from the Middle East and Africa, accounted for up to 90 percent of India's crude oil imports. However, the availability of discounted Russian oil following Moscow's invasion of Ukraine in February last year prompted a shift in India's import sources. For the eighth consecutive month, Russia emerged as the largest single supplier of crude oil to India. The country has now surpassed the combined purchases from Iraq and Saudi Arabia, which were India's primary suppliers in the past decade, as well as the UAE and the US. Iraq supplied 0.83 million bpd of oil in May, while the UAE shipped 203,000 bpd, and the US accounted for 138,000 barrels per day. Factors Driving the Trend The dramatic increase in imports from Russia can be attributed to Indian refiners capitalizing on the availability of abundant Russian crude, which is offered at a discount compared to other grades. Previously, Indian refiners were deterred by high freight costs associated with Russian oil, but they now find it economically favorable. Refiners have grown confident in processing Russian crude, leading to a voracious appetite for this source. Industry experts cited by various news agencies predict that Indian refiners will continue to increase their reliance on Russian crude as long as they can back off from spot crude purchases. One of the key drivers behind the surge in imports is the favorable pricing. In April, the average cost of Russian crude, including freight costs, landed on Indian shores at $68.21 per barrel, the lowest level since the Ukraine conflict began. In comparison, Saudi Arabian crude was priced at $86.96 per barrel, while Iraqi oil stood at $77.77 per barrel. Although the May import price has not yet been released, the cost advantage enjoyed by Russian oil makes it an attractive option for Indian refiners. Russia's increased oil sales to India are partly attributed to the European Union's ban on Russian seaborne oil imports and the imposition of a $60-per-barrel price cap in December. These restrictions prevent other countries from utilizing EU shipping and insurance services unless they sell oil below the cap. Industry officials have revealed that Indian refiners are leveraging the UAE's dirham to pay for oil imported at prices lower than $60, further facilitating the Russian oil trade.

Russia becomes India's top oil supplier, surpasses Saudi Arabia and Iraq

Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman announced a further voluntary oil output cut of 1 million barrels per day for July, with the possibility of further extensions, as stated by the country's energy ministry on Sunday.

These new production cuts are in addition to the existing cuts of 2 million barrels per day (bpd) and voluntary cuts of 1.6 million bpd, which were surprisingly announced in April and took effect in May.

Following seven hours of negotiations, OPEC+ reached an agreement on output policy. The alliance has decided to implement additional production cuts, reducing the overall production targets by a combined 1.4 million barrels per day starting from 2024, as per Reuters.&nbsp;

Also Read | <a href="https://www.wionews.com/world/china-landslide-claims-14-lives-in-sichuan-province-5-still-missing-600355">China: Landslide claims 14 lives in Sichuan province, 5 still missing</a>

The decision was reached in coordination with some OPEC+ members, according to the ministry's report. During the 35th ministerial meeting of OPEC Plus on June 4, 2023, the ministry confirmed that this voluntary reduction from the required production level was agreed upon.

Following a two-day meeting, OPEC and its allies have decided to implement further production cuts in response to declining oil prices and the potential for a surplus in supply.

Also Read | <a href="https://www.wionews.com/world/earthquake-of-magnitude-6-jolts-indonesias-maluku-600379">Earthquake of magnitude 6 jolts Indonesia's Maluku</a>

OPEC+, a coalition comprising the Organization of the Petroleum Exporting Countries and Russia-led allies, currently accounts for approximately 40% of global crude oil production, making their policy decisions influential in shaping oil prices.

As per a statement by OPEC, the 36th OPEC and non-OPEC Ministerial Meeting will be held on Sunday, 26 November 2023, in Vienna.

<h2>West accuses OPEC</h2>

Western nations have accused OPEC of manipulating oil prices and negatively impacting the global economy due to high energy costs. Additionally, there are concerns about OPEC's perceived alignment with Russia, despite Western sanctions imposed on Russia following its invasion of Ukraine.

OPEC officials argue that the excessive money-printing by Western nations in the past decade has fueled inflation, compelling oil-producing countries to take action to protect the value of their main export.

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Notably, Asian countries such as China and India have been major consumers of Russian oil exports and have refrained from joining Western sanctions against Russia.

While the April announcement initially boosted oil prices by around $9 per barrel to surpass $87, they quickly receded due to apprehensions about global economic growth and demand. As of Friday, the international benchmark Brent settled at $76.

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Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman announced a further voluntary oil output cut of 1 million barrels per day for July, with the possibility of further extensions, as stated by the country's energy ministry on Sunday.

Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman announced a further voluntary oil output cut of 1 million barrels per day for July, with the possibility of further extensions, as stated by the country's energy ministry on Sunday. These new production cuts are in addition to the existing cuts of 2 million barrels per day (bpd) and voluntary cuts of 1.6 million bpd, which were surprisingly announced in April and took effect in May. Following seven hours of negotiations, OPEC+ reached an agreement on output policy. The alliance has decided to implement additional production cuts, reducing the overall production targets by a combined 1.4 million barrels per day starting from 2024, as per Reuters. Also Read | China: Landslide claims 14 lives in Sichuan province, 5 still missing The decision was reached in coordination with some OPEC+ members, according to the ministry's report. During the 35th ministerial meeting of OPEC Plus on June 4, 2023, the ministry confirmed that this voluntary reduction from the required production level was agreed upon. Following a two-day meeting, OPEC and its allies have decided to implement further production cuts in response to declining oil prices and the potential for a surplus in supply. Also Read | Earthquake of magnitude 6 jolts Indonesia's Maluku OPEC+, a coalition comprising the Organization of the Petroleum Exporting Countries and Russia-led allies, currently accounts for approximately 40% of global crude oil production, making their policy decisions influential in shaping oil prices. As per a statement by OPEC, the 36th OPEC and non-OPEC Ministerial Meeting will be held on Sunday, 26 November 2023, in Vienna. West accuses OPEC Western nations have accused OPEC of manipulating oil prices and negatively impacting the global economy due to high energy costs. Additionally, there are concerns about OPEC's perceived alignment with Russia, despite Western sanctions imposed on Russia following its invasion of Ukraine. OPEC officials argue that the excessive money-printing by Western nations in the past decade has fueled inflation, compelling oil-producing countries to take action to protect the value of their main export. Watch | Chinese astronauts return to Earth | East-Asian space race | World News × Notably, Asian countries such as China and India have been major consumers of Russian oil exports and have refrained from joining Western sanctions against Russia. While the April announcement initially boosted oil prices by around $9 per barrel to surpass $87, they quickly receded due to apprehensions about global economic growth and demand. As of Friday, the international benchmark Brent settled at $76. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. ×

Saudi Arabia announces further voluntary oil production cut of 1mn barrels per day

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