With Washington poised to curtail Iran's oil exports, OPEC heavyweight Saudi Arabia and its partners stand ready to ramp up supplies even as market conditions remain uncertain, analysts say.

The renewal of sanctions on the Islamic republic comes at a time of major supply disruptions in several producer nations and as US President Donald Trump aims to prevent an oil price hike.

Analysts expect that Iran's oil exports, which reach around 2.5 million barrels per day in normal times, to plunge by one million to two million bpd when sanctions take effect on November 5.

That is expected to strain an already tight market.

Meanwhile, thousands joined rallies in Tehran and other cities, carrying placards that mocked President Donald Trump, wiping their feet on fake dollar bills, and engaging in the usual ritual of burning the US flag.

This year's 39th anniversary fell just hours before Washington was set to reimpose sanctions -- including an oil embargo -- following its withdrawal from the 2015 nuclear deal earlier this year.

(With inputs from AFP)

With Washington poised to curtail Iran's oil exports, OPEC heavyweight Saudi Arabia and its partners stand ready to ramp up supplies even as market conditions remain uncertain, analysts say.

With Washington poised to curtail Iran's oil exports, OPEC heavyweight Saudi Arabia and its partners stand ready to ramp up supplies even as market conditions remain uncertain, analysts say. The renewal of sanctions on the Islamic republic comes at a time of major supply disruptions in several producer nations and as US President Donald Trump aims to prevent an oil price hike. Analysts expect that Iran's oil exports, which reach around 2.5 million barrels per day in normal times, to plunge by one million to two million bpd when sanctions take effect on November 5. That is expected to strain an already tight market. Meanwhile, thousands joined rallies in Tehran and other cities, carrying placards that mocked President Donald Trump, wiping their feet on fake dollar bills, and engaging in the usual ritual of burning the US flag. This year's 39th anniversary fell just hours before Washington was set to reimpose sanctions -- including an oil embargo -- following its withdrawal from the 2015 nuclear deal earlier this year. (With inputs from AFP)

Saudi Arabia readies to boost supplies over Iran oil sanctions

US President Trump cannot bring oil prices down by "bullying" other nations, Iran's oil minister said on Tuesday, adding that the market was suffering from short supply.

<a href="http://www.wionews.com/markets/as-us-iran-sanctions-on-iran-loom-saudi-arabia-says-it-will-meet-indias-oil-demand-171693">Also Read:&nbsp;As US sanctions on Iran loom, Saudi Arabia says it will meet India's oil demand</a>

US sanctions on Iranian oil exports are due to kick in on November 4th. The US administration has been pushing its allies to cut Iranian oil imports and encouraging Saudi Arabia, other OPEC states and Russia to pump more oil to meet any shortfall.

"The oil market is suffering from short supply and this cannot be resolved by words. Trump thinks he can bring the oil prices down by bullying," Iranian Oil Minister Bijan Zanganeh said, according to the semi-official news agency ILNA.

Benchmark Brent crude has been trading above $80 a barrel.

Zanganeh said the rise of oil prices was a "self-inflicted pain" caused by US sanctions against Iranian energy exports, and could be resolved by lifting the measures.

"Everyone is worried and Trump has failed to reassure them. That's why the market is in turmoil," he said.

Zanganeh also said the United States "has done most of the things it could do, and there is not much left to do against Iran," according to comments reported by Iran's ISNA agency.

Washington said this month it would consider waivers for Iranian oil buyers such as India, although it said they would eventually have to halt imports from Iran, the third biggest oil producer in the Organization of the Petroleum Exporting Countries.

The United States announced new sanctions after withdrawing from a nuclear deal with Iran in May. Under the 2015 nuclear pact, most international sanctions against Tehran were lifted in 2016 in exchange for Iran curbing its nuclear programme.

US President Trump cannot bring oil prices down by "bullying" other nations, Iran's oil minister said on Tuesday, adding that the market was suffering from short supply.

US President Trump cannot bring oil prices down by "bullying" other nations, Iran's oil minister said on Tuesday, adding that the market was suffering from short supply. Also Read: As US sanctions on Iran loom, Saudi Arabia says it will meet India's oil demand US sanctions on Iranian oil exports are due to kick in on November 4th. The US administration has been pushing its allies to cut Iranian oil imports and encouraging Saudi Arabia, other OPEC states and Russia to pump more oil to meet any shortfall. "The oil market is suffering from short supply and this cannot be resolved by words. Trump thinks he can bring the oil prices down by bullying," Iranian Oil Minister Bijan Zanganeh said, according to the semi-official news agency ILNA. Benchmark Brent crude has been trading above $80 a barrel. Zanganeh said the rise of oil prices was a "self-inflicted pain" caused by US sanctions against Iranian energy exports, and could be resolved by lifting the measures. "Everyone is worried and Trump has failed to reassure them. That's why the market is in turmoil," he said. Zanganeh also said the United States "has done most of the things it could do, and there is not much left to do against Iran," according to comments reported by Iran's ISNA agency. Washington said this month it would consider waivers for Iranian oil buyers such as India, although it said they would eventually have to halt imports from Iran, the third biggest oil producer in the Organization of the Petroleum Exporting Countries. The United States announced new sanctions after withdrawing from a nuclear deal with Iran in May. Under the 2015 nuclear pact, most international sanctions against Tehran were lifted in 2016 in exchange for Iran curbing its nuclear programme.

Trump thinks he can bring down oil prices by bullying: Iran minister Zanganeh

PM Modi: Solar alliance could replace OPEC 

President Donald Trump made an undiplomatic remark about close ally Saudi Arabia on Tuesday, saying he warned Saudi Arabia’s King Salman he would not last in power “for two weeks” without the backing of the US&nbsp;military.

“We protect Saudi Arabia. Would you say they’re rich. And I love the King, King Salman. But I said ‘King - we’re protecting you-you might not be there for two weeks without us - you have to pay for your military,’” Trump said to cheers at a rally in Southaven, Mississippi.

Trump did not say when he made those remarks to the Saudi monarch.

Despite the harsh words, the Trump administration has had a close relationship with Saudi Arabia, which it views as a bulwark against Iran’s ambitions in the region.

Trump made Saudi Arabia his first stop on his maiden international trip as president last year.

Trump called King Salman on Saturday and they discussed efforts being made to maintain supplies to ensure oil market stability and global economic growth, according to Saudi state news agency SPA.

Saudi Arabia is the world’s top oil exporter and the de facto leader of OPEC, which has been criticized by Trump for high oil prices.

Speaking at the United Nations General Assembly in New York last month, Trump said OPEC members were “as usual ripping off the rest of the world.”

“We defend many of these nations for nothing, and then they take advantage of us by giving us high oil prices. Not good. We want them to stop raising prices, we want them to start lowering prices,” Trump said.

He has also pressed other US&nbsp;allies, such as Japan, South Korea and Germany, to take more of the financial burden of their defense.

President Donald Trump made an undiplomatic remark about close ally Saudi Arabia on Tuesday, saying he warned Saudi Arabia’s King Salman he would not last in power “for two weeks” without the backing of the US military.

President Donald Trump made an undiplomatic remark about close ally Saudi Arabia on Tuesday, saying he warned Saudi Arabia’s King Salman he would not last in power “for two weeks” without the backing of the US military. “We protect Saudi Arabia. Would you say they’re rich. And I love the King, King Salman. But I said ‘King - we’re protecting you-you might not be there for two weeks without us - you have to pay for your military,’” Trump said to cheers at a rally in Southaven, Mississippi. Trump did not say when he made those remarks to the Saudi monarch. Despite the harsh words, the Trump administration has had a close relationship with Saudi Arabia, which it views as a bulwark against Iran’s ambitions in the region. Trump made Saudi Arabia his first stop on his maiden international trip as president last year. Trump called King Salman on Saturday and they discussed efforts being made to maintain supplies to ensure oil market stability and global economic growth, according to Saudi state news agency SPA. Saudi Arabia is the world’s top oil exporter and the de facto leader of OPEC, which has been criticized by Trump for high oil prices. Speaking at the United Nations General Assembly in New York last month, Trump said OPEC members were “as usual ripping off the rest of the world.” “We defend many of these nations for nothing, and then they take advantage of us by giving us high oil prices. Not good. We want them to stop raising prices, we want them to start lowering prices,” Trump said. He has also pressed other US allies, such as Japan, South Korea and Germany, to take more of the financial burden of their defense.

I told Saudi king he wouldn't last without US support: Trump

Oil prices hit their highest since <a href="http://www.wionews.com/business-economy/rupee-sinks-new-low-over-trumps-iran-oil-sanctions-fear-spike-crude-167524">November 2014 on Tuesday</a>, topping four-year highs from the previous day, as looming US sanctions against Iran and reluctance by the Organization of the Petroleum Exporting Countries to raise output supported markets.

<a href="http://www.wionews.com/business-economy/indias-crude-oil-demand-hit-500-million-tonnes-2040-report-167517">Also Read: India's crude oil demand to hit 500 million tonnes by 2040</a>

Brent crude futures rose to $81.62 a barrel around 0600 GMT, levels not seen since November 2014. They were still at $81.61 at 0610 GMT, up 41 cents, or 0.5 per cent from their last close.

US West Texas Intermediate (WTI) crude futures were at $72.37 a barrel, up 29 cents, or 0.4 per cent from their last settlement.

The United States from November 4 will target Iran's oil exports with sanctions, and Washington is putting pressure on governments and companies around the world to fall in line and cut purchases from Tehran.

"Iran will lose sizeable export volumes, and given OPEC's reluctance to raise output, the market is ill-equipped to fill the supply gap," Harry Tchilinguirian, global head of commodity markets strategy at French bank BNP Paribas, told the Reuters Global Oil Forum on Tuesday.

OPEC is the name given to the group of oil producers, including non-OPEC supplier Russia, that agreed to curtail output starting in 2017.

While Britain, China, France, Germany, Russia and Iran on Tuesday said they were determined to develop payment mechanisms to continue trading despite the sanctions by the United States, most analysts expect Washington's actions to knock between 1 million and 1.5 million barrels per day (bpd) of crude oil supplies out of markets.

US President Donald Trump has demanded that OPEC and Russia increase their supplies to make up for the expected fall in Iranian exports. Iran is the third-largest producer in OPEC.

OPEC and Russia, however, have so far rebuffed such calls.

"Any formal decision on oil output by the producer group, barring an extraordinary meeting, will only take place at the December meeting. Thus the window period for oil prices to potentially extend gains is quite wide as Iran loses exports and OPEC remains on standby," Tchilinguirian said.

Ashley Kelty, oil analyst at financial services firm Cantor Fitzgerald said crude could soon hit $90 per barrel.

"We don't believe OPEC can actually raise output significantly in the near term, as the physical spare capacity in the system is not that high," Kelty said.

"If OPEC is physically unable to ramp up production, then Oil prices do indeed have much further to run," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore.

Bank of America Merrill Lynch lifted its average Brent price forecast for 2019 from $75 per barrel to $80, and increased its WTI forecast by $2 to $71 per barrel.

It said "the Iran factor may dominate the market near-term and cause a (crude price) spike," although it added that emerging market "demand concerns could reappear thereafter."

Indian refiners, hit by high crude prices and a sliding rupee, are planning to reduce oil imports in what could be a sign that high prices are starting to hurt demand.

Despite the bullish sentiment, commodity merchant Vitol said current prices already reflected the tighter market, and that more oil would be coming in 2019.

Vitol also said that non-OPEC producers, especially the United States, may insert up to 2 million bpd of new crude into the market in 2019.

To reflect rising US oil exports, CME Group Inc said on Monday it will launch a WTI Houston crude futures contract in the fourth quarter.

CME's announcement comes after rival Intercontinental Exchange said in July it would offer a Houston crude futures contract.

Oil prices hit their highest since November 2014 on Tuesday, topping four-year highs from the previous day, as looming US sanctions against Iran and reluctance by the Organization of the Petroleum Exporting Countries to raise output supported markets.

Oil prices hit their highest since November 2014 on Tuesday, topping four-year highs from the previous day, as looming US sanctions against Iran and reluctance by the Organization of the Petroleum Exporting Countries to raise output supported markets. Also Read: India's crude oil demand to hit 500 million tonnes by 2040 Brent crude futures rose to $81.62 a barrel around 0600 GMT, levels not seen since November 2014. They were still at $81.61 at 0610 GMT, up 41 cents, or 0.5 per cent from their last close. US West Texas Intermediate (WTI) crude futures were at $72.37 a barrel, up 29 cents, or 0.4 per cent from their last settlement. The United States from November 4 will target Iran's oil exports with sanctions, and Washington is putting pressure on governments and companies around the world to fall in line and cut purchases from Tehran. "Iran will lose sizeable export volumes, and given OPEC's reluctance to raise output, the market is ill-equipped to fill the supply gap," Harry Tchilinguirian, global head of commodity markets strategy at French bank BNP Paribas, told the Reuters Global Oil Forum on Tuesday. OPEC is the name given to the group of oil producers, including non-OPEC supplier Russia, that agreed to curtail output starting in 2017. While Britain, China, France, Germany, Russia and Iran on Tuesday said they were determined to develop payment mechanisms to continue trading despite the sanctions by the United States, most analysts expect Washington's actions to knock between 1 million and 1.5 million barrels per day (bpd) of crude oil supplies out of markets. US President Donald Trump has demanded that OPEC and Russia increase their supplies to make up for the expected fall in Iranian exports. Iran is the third-largest producer in OPEC. OPEC and Russia, however, have so far rebuffed such calls. "Any formal decision on oil output by the producer group, barring an extraordinary meeting, will only take place at the December meeting. Thus the window period for oil prices to potentially extend gains is quite wide as Iran loses exports and OPEC remains on standby," Tchilinguirian said. Ashley Kelty, oil analyst at financial services firm Cantor Fitzgerald said crude could soon hit $90 per barrel. "We don't believe OPEC can actually raise output significantly in the near term, as the physical spare capacity in the system is not that high," Kelty said. "If OPEC is physically unable to ramp up production, then Oil prices do indeed have much further to run," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore. Bank of America Merrill Lynch lifted its average Brent price forecast for 2019 from $75 per barrel to $80, and increased its WTI forecast by $2 to $71 per barrel. It said "the Iran factor may dominate the market near-term and cause a (crude price) spike," although it added that emerging market "demand concerns could reappear thereafter." Indian refiners, hit by high crude prices and a sliding rupee, are planning to reduce oil imports in what could be a sign that high prices are starting to hurt demand. Despite the bullish sentiment, commodity merchant Vitol said current prices already reflected the tighter market, and that more oil would be coming in 2019. Vitol also said that non-OPEC producers, especially the United States, may insert up to 2 million bpd of new crude into the market in 2019. To reflect rising US oil exports, CME Group Inc said on Monday it will launch a WTI Houston crude futures contract in the fourth quarter. CME's announcement comes after rival Intercontinental Exchange said in July it would offer a Houston crude futures contract.

International oil prices hit four-year high as OPEC, Russia resist output rise

Oil prices rose about 2 per cent on Monday as markets tightened ahead of Washington's new sanctions against Iran, with some traders forecasting a spike in crude to $100 per barrel.

<a href="http://www.wionews.com/world/iran-urges-opec-rebuff-threats-trump-167284">Also Read:&nbsp;Iran urges OPEC to rebuff 'threats' from Trump</a>

Brent crude futures jumped to the highest level since May at $80.43 per barrel, and were up $1.57, or 2 per cent, at $80.37 per barrel at 0642 GMT.

US West Texas Intermediate (WTI) crude futures rose $1.28, or 1.8 per cent, to $72.06 a barrel.

Amid a tightening market, US commercial crude oil inventories are at their lowest level since early 2015. And while output remains around the record of 11 million barrels per day (bpd), recent subdued US drilling activity points towards a slowdown.

Commodity merchants Trafigura and Mercuria said on Monday that Brent could rise to $90 per barrel by Christmas and pass $100 in early 2019 as markets tighten once US sanctions against Iran are implemented from November.

J.P. Morgan expects sanctions could lead to a loss of 1.5 million bpd, while Mercuria warned that as much as 2 million bpd could be knocked out of the market.

The Middle East dominated Organization of the Petroleum Exporting Countries (OPEC), as well as top producer Russia, are discussing raising output to counter falling supply from Iran, although no decision has been made public yet.

"We expect that those OPEC countries with available spare capacity, led by Saudi Arabia, will increase output but not completely offset the drop in Iranian barrels," said Edward Bell, commodity analyst at Emirates NBD bank.

J.P. Morgan said in its latest market outlook, published on Friday, that "a spike to $90 per barrel is likely" for oil prices in the coming months due to the Iran sanctions.

The bank said it expects Brent and WTI to average $85 and $76 per barrel, respectively, over the next six months.

Struggling with high feedstock crude prices and record lows for the rupee against the dollar, Indian refiners are preparing to cut back crude imports and instead use up commercial inventories.

Oil prices rose about 2 per cent on Monday as markets tightened ahead of Washington's new sanctions against Iran, with some traders forecasting a spike in crude to $100 per barrel.

Oil prices rose about 2 per cent on Monday as markets tightened ahead of Washington's new sanctions against Iran, with some traders forecasting a spike in crude to $100 per barrel. Also Read: Iran urges OPEC to rebuff 'threats' from Trump Brent crude futures jumped to the highest level since May at $80.43 per barrel, and were up $1.57, or 2 per cent, at $80.37 per barrel at 0642 GMT. US West Texas Intermediate (WTI) crude futures rose $1.28, or 1.8 per cent, to $72.06 a barrel. Amid a tightening market, US commercial crude oil inventories are at their lowest level since early 2015. And while output remains around the record of 11 million barrels per day (bpd), recent subdued US drilling activity points towards a slowdown. Commodity merchants Trafigura and Mercuria said on Monday that Brent could rise to $90 per barrel by Christmas and pass $100 in early 2019 as markets tighten once US sanctions against Iran are implemented from November. J.P. Morgan expects sanctions could lead to a loss of 1.5 million bpd, while Mercuria warned that as much as 2 million bpd could be knocked out of the market. The Middle East dominated Organization of the Petroleum Exporting Countries (OPEC), as well as top producer Russia, are discussing raising output to counter falling supply from Iran, although no decision has been made public yet. "We expect that those OPEC countries with available spare capacity, led by Saudi Arabia, will increase output but not completely offset the drop in Iranian barrels," said Edward Bell, commodity analyst at Emirates NBD bank. J.P. Morgan said in its latest market outlook, published on Friday, that "a spike to $90 per barrel is likely" for oil prices in the coming months due to the Iran sanctions. The bank said it expects Brent and WTI to average $85 and $76 per barrel, respectively, over the next six months. Struggling with high feedstock crude prices and record lows for the rupee against the dollar, Indian refiners are preparing to cut back crude imports and instead use up commercial inventories.

Ahead of Iran sanctions, crude oil prices jump

OPEC's leader Saudi Arabia and its biggest oil-producer ally outside the group, Russia, ruled out on Sunday any immediate, additional increase in crude output, effectively rebuffing US President Donald Trump's calls for action to cool the market.

"I do not influence prices," Saudi Energy Minister Khalid al-Falih told reporters as OPEC and non-OPEC energy ministers gathered in Algiers for a meeting that ended with no formal recommendation for any additional supply boost.

Benchmark Brent oil reached $80 a barrel this month, prompting Trump to reiterate on Thursday his demand that the Organization of the Petroleum Exporting Countries lower prices.

The price rally mainly stemmed from a decline in oil exports from OPEC member Iran due to fresh US sanctions.

"We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember. The OPEC monopoly must get prices down now!" Trump wrote on Twitter.

Falih said Saudi Arabia had spare capacity to raise output but such a move was not required at the moment and might not be needed next year as, according to OPEC's projections, a stellar rise in non-OPEC production could exceed global demand growth.

"The markets are adequately supplied. I don't know of any refiner in the world who is looking for oil and is not able to get it," Falih said, adding that Saudi Arabia could raise output by up to 1.5 million barrels per day (bpd) if needed.

"Given the numbers we saw today, that (an output increase in 2019) is highly unlikely unless we have surprises on the supply and demand," Falih added.

The statement from Trump, meanwhile, was not his first criticism of OPEC.

Higher gasoline prices for US consumers could create a political headache for Republican Trump before mid-term congressional elections in November.

Iran, OPEC's third-largest producer, has accused Trump of orchestrating the oil price rally by imposing sanctions on Tehran and accused its regional arch-rival Saudi Arabia of bowing to US pressure.

On Sunday, Iranian Oil Minister Bijan Zanganeh said Trump's tweet "was the biggest insult to Washington's allies in the Middle East".

SHIFTING FOCUS TO 2019

A mid-term report released by OPEC on Sunday forecast that non-OPEC supply from countries led by the United States would rise by 2.4 million bpd in 2019 while global oil demand should grow by just 1.5 million.

It also steeply raised US oil output growth estimates to 2023, predicting OPEC would lose further market share.

"Our attention is shifting to 2019. We have been briefed on the prospect of 2019 inventory builds which result from significant supply growth from non-member counties," Falih said.

Russian Energy Minister Alexander Novak said no immediate output increase was necessary, although he believed a trade war between China and the United States as well as US sanctions on Iran were creating new challenges for oil markets.

"Oil demand will be declining in the fourth quarter of this year and the first quarter of next year. So far, we have decided to stick to our June agreements," Novak said.

Seeking to reverse a downturn in oil prices that began in 2014, OPEC, Russia and other allies decided in late 2016 to reduce supply by some 1.8 million bpd.

In June this year, however, after months of cutting by more than their pact had called for, largely due to involuntary reductions from Venezuela and other producers, they agreed to boost output by returning to 100 per cent compliance.

That equates to an increase of about 1 million bpd, but the latest data shows they are some way from achieving that target.

IRAN SOFTENS STANCE

In August, OPEC and its allies cut production by 600,000 bpd more than their pact required, mainly as a result of falling output in Iran as customers in Europe and Asia reduced purchases ahead of the US sanctions deadline.

OPEC put Iran's current production at 3.58 million bpd, down some 300,000 bpd from the start of the year, according to OPEC's secondary sources such as researchers and ship-trackers.

Iran's OPEC governor Hossein Kazempour Ardebili insisted on Sunday that Iranian production was steady at 3.8 million bpd but appeared to soften his stance on potential increases in OPEC output.

"If there is a fall not only from Iran, but anybody else, it is the responsibility of OPEC and non-OPEC to balance the market," Kazempour told reporters.

Falih said returning to 100 per cent compliance was the main objective and should be achieved in the next two to three months.

Although he refrained from specifying how that could be done, Saudi Arabia is the only oil producer with significant spare capacity.

"The biggest issue is not with the producing countries, it’s with the refiners, it's with the demand. We in Saudi Arabia have not seen demand for any additional barrel that we did not produce."

The OPEC/non-OPEC monitoring committee next meets on Nov. 11 in Abu Dhabi, followed by a full OPEC gathering at its Vienna headquarters on December 6-7.

OPEC's leader Saudi Arabia and its biggest oil-producer ally outside the group, Russia, ruled out on Sunday any immediate, additional increase in crude output, effectively rebuffing US President Donald Trump's calls for action to cool the market.

OPEC's leader Saudi Arabia and its biggest oil-producer ally outside the group, Russia, ruled out on Sunday any immediate, additional increase in crude output, effectively rebuffing US President Donald Trump's calls for action to cool the market. "I do not influence prices," Saudi Energy Minister Khalid al-Falih told reporters as OPEC and non-OPEC energy ministers gathered in Algiers for a meeting that ended with no formal recommendation for any additional supply boost. Benchmark Brent oil reached $80 a barrel this month, prompting Trump to reiterate on Thursday his demand that the Organization of the Petroleum Exporting Countries lower prices. The price rally mainly stemmed from a decline in oil exports from OPEC member Iran due to fresh US sanctions. "We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember. The OPEC monopoly must get prices down now!" Trump wrote on Twitter. Falih said Saudi Arabia had spare capacity to raise output but such a move was not required at the moment and might not be needed next year as, according to OPEC's projections, a stellar rise in non-OPEC production could exceed global demand growth. "The markets are adequately supplied. I don't know of any refiner in the world who is looking for oil and is not able to get it," Falih said, adding that Saudi Arabia could raise output by up to 1.5 million barrels per day (bpd) if needed. "Given the numbers we saw today, that (an output increase in 2019) is highly unlikely unless we have surprises on the supply and demand," Falih added. The statement from Trump, meanwhile, was not his first criticism of OPEC. Higher gasoline prices for US consumers could create a political headache for Republican Trump before mid-term congressional elections in November. Iran, OPEC's third-largest producer, has accused Trump of orchestrating the oil price rally by imposing sanctions on Tehran and accused its regional arch-rival Saudi Arabia of bowing to US pressure. On Sunday, Iranian Oil Minister Bijan Zanganeh said Trump's tweet "was the biggest insult to Washington's allies in the Middle East". SHIFTING FOCUS TO 2019 A mid-term report released by OPEC on Sunday forecast that non-OPEC supply from countries led by the United States would rise by 2.4 million bpd in 2019 while global oil demand should grow by just 1.5 million. It also steeply raised US oil output growth estimates to 2023, predicting OPEC would lose further market share. "Our attention is shifting to 2019. We have been briefed on the prospect of 2019 inventory builds which result from significant supply growth from non-member counties," Falih said. Russian Energy Minister Alexander Novak said no immediate output increase was necessary, although he believed a trade war between China and the United States as well as US sanctions on Iran were creating new challenges for oil markets. "Oil demand will be declining in the fourth quarter of this year and the first quarter of next year. So far, we have decided to stick to our June agreements," Novak said. Seeking to reverse a downturn in oil prices that began in 2014, OPEC, Russia and other allies decided in late 2016 to reduce supply by some 1.8 million bpd. In June this year, however, after months of cutting by more than their pact had called for, largely due to involuntary reductions from Venezuela and other producers, they agreed to boost output by returning to 100 per cent compliance. That equates to an increase of about 1 million bpd, but the latest data shows they are some way from achieving that target. IRAN SOFTENS STANCE In August, OPEC and its allies cut production by 600,000 bpd more than their pact required, mainly as a result of falling output in Iran as customers in Europe and Asia reduced purchases ahead of the US sanctions deadline. OPEC put Iran's current production at 3.58 million bpd, down some 300,000 bpd from the start of the year, according to OPEC's secondary sources such as researchers and ship-trackers. Iran's OPEC governor Hossein Kazempour Ardebili insisted on Sunday that Iranian production was steady at 3.8 million bpd but appeared to soften his stance on potential increases in OPEC output. "If there is a fall not only from Iran, but anybody else, it is the responsibility of OPEC and non-OPEC to balance the market," Kazempour told reporters. Falih said returning to 100 per cent compliance was the main objective and should be achieved in the next two to three months. Although he refrained from specifying how that could be done, Saudi Arabia is the only oil producer with significant spare capacity. "The biggest issue is not with the producing countries, it’s with the refiners, it's with the demand. We in Saudi Arabia have not seen demand for any additional barrel that we did not produce." The OPEC/non-OPEC monitoring committee next meets on Nov. 11 in Abu Dhabi, followed by a full OPEC gathering at its Vienna headquarters on December 6-7.

OPEC, Russia rebuff Trump's call for immediate oil output boost

Iran on Sunday called on its OPEC partners not to bow to "threats" from US President Donald Trump, as the oil cartel prepared to meet to discuss output levels.

"I hope the outcome of this meeting will not be affected by President Trump's threats," Oil Minister Bijan Namdar Zanganeh told SHANA, his ministry's news agency.

Ahead of Sunday's meeting in Algiers of the Organisation of Petroleum Exporting Countries, Trump tweeted that "the OPEC monopoly must get prices down now!" by raising output.

Middle East states "would not be safe for very long" without the United States, the president also wrote Thursday.

Zanganeh fired back, saying the claim that "America safeguards the security and survival of producing countries" was the "biggest insult to American allies in the region".

"OPEC is an organisation independent of America and will hopefully stay so," he said.

However, the Algiers meeting of OPEC and non-OPEC ministers is expected to offer an increase in output to "offset Iran's production cut", said Zanganeh.

Output from Iran has hit its lowest level since July 2016, according to the International Energy Agency, as top buyers India and China distance themselves from Tehran.

Trump has called for OPEC members, primarily US ally Saudi Arabia, to raise production, and warned importers to stop buying oil from Iran or face American sanctions.

The US in May withdrew from the 2015 nuclear deal with Tehran and reimposed sanctions on the Iranian economy, with a US embargo due to hit Iran's oil industry on November 4.

Iran on Sunday called on its OPEC partners not to bow to "threats" from US President Donald Trump, as the oil cartel prepared to meet to discuss output levels. "I hope the outcome of this meeting will not be affected by President Trump's threats," Oil Minister Bijan Namdar Zanganeh told SHANA, his ministry's news agency.

Iran on Sunday called on its OPEC partners not to bow to "threats" from US President Donald Trump, as the oil cartel prepared to meet to discuss output levels. "I hope the outcome of this meeting will not be affected by President Trump's threats," Oil Minister Bijan Namdar Zanganeh told SHANA, his ministry's news agency. Ahead of Sunday's meeting in Algiers of the Organisation of Petroleum Exporting Countries, Trump tweeted that "the OPEC monopoly must get prices down now!" by raising output. Middle East states "would not be safe for very long" without the United States, the president also wrote Thursday. Zanganeh fired back, saying the claim that "America safeguards the security and survival of producing countries" was the "biggest insult to American allies in the region". "OPEC is an organisation independent of America and will hopefully stay so," he said. However, the Algiers meeting of OPEC and non-OPEC ministers is expected to offer an increase in output to "offset Iran's production cut", said Zanganeh. Output from Iran has hit its lowest level since July 2016, according to the International Energy Agency, as top buyers India and China distance themselves from Tehran. Trump has called for OPEC members, primarily US ally Saudi Arabia, to raise production, and warned importers to stop buying oil from Iran or face American sanctions. The US in May withdrew from the 2015 nuclear deal with Tehran and reimposed sanctions on the Iranian economy, with a US embargo due to hit Iran's oil industry on November 4.

Iran urges OPEC to rebuff 'threats' from Trump

President Donald Trump on Thursday issued a fresh call on the OPEC oil cartel to lower crude prices, saying the United States was providing Middle Eastern energy giants with security.

"We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices!" he tweeted.

"We will remember. The OPEC monopoly must get prices down now!" Trump has earlier called for members of the Organisation of the Petroleum Exporting Countries -- primarily cartel kingpin and US ally Saudi Arabia -- to raise their production, and warned importers to stop buying oil from Iran or face US sanctions.

Two of OPEC's founding members, Iran and Venezuela, are under sanctions from Washington.

A new set of US sanctions is due to hit the Islamic republic's oil industry on November 4.

Output from Iran has hit its lowest level since July 2016, according to the International&nbsp;Energy Agency, as top buyers India and China have distanced themselves from Tehran.

In 2016, major producers both within and outside OPEC agreed to slash production in an attempt to boost prices following the 2014 oil market crash.

President Donald Trump on Thursday issued a fresh call on the OPEC oil cartel to lower crude prices, saying the United States was providing Middle Eastern energy giants with security.

President Donald Trump on Thursday issued a fresh call on the OPEC oil cartel to lower crude prices, saying the United States was providing Middle Eastern energy giants with security. "We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices!" he tweeted. "We will remember. The OPEC monopoly must get prices down now!" Trump has earlier called for members of the Organisation of the Petroleum Exporting Countries -- primarily cartel kingpin and US ally Saudi Arabia -- to raise their production, and warned importers to stop buying oil from Iran or face US sanctions. Two of OPEC's founding members, Iran and Venezuela, are under sanctions from Washington. A new set of US sanctions is due to hit the Islamic republic's oil industry on November 4. Output from Iran has hit its lowest level since July 2016, according to the International Energy Agency, as top buyers India and China have distanced themselves from Tehran. In 2016, major producers both within and outside OPEC agreed to slash production in an attempt to boost prices following the 2014 oil market crash.

Trump tells OPEC to lower oil prices, says 'we protect Middle East'

Oil prices eased on Tuesday, paring earlier gains, although volatility subsided to its lowest in three weeks, as investors prepared for a key meeting of the OPEC producer group next week.

Crude remained in a tight trading range, in line with the broader financial markets, which were largely unruffled by a US-North Korea summit aimed at the denuclearisation of the Korean peninsula.

The Organization of the Petroleum Exporting Countries released its monthly report on Tuesday, in which it cited the high degree of uncertainty hanging over the global oil market this year.

Brent crude futures fell 29 cents to $76.17 a barrel by 1143 GMT, while US&nbsp;West Texas Intermediate crude futures eased 12 cents to $65.98.

"The market has been rangebound for two weeks and that is likely to remain the case," Ole Hansen, senior manager at Saxo Bank, said.

OPEC, together with partners including Russia, has cut oil output by 1.8 million barrels per day (bpd) since January 2017 in an effort to boost the market.

Volatility in oil prices has subsided due to caution around the group's meetings scheduled for June 22-23, at which it will decide on future supply policy.

With US&nbsp;sanctions threatening to cut Iranian exports and the potential for more declines in Venezuelan production, OPEC kingpin Saudi Arabia and Russia have indicated they would be willing to raise output to make up for any supply shortfall.

Russian production reportedly climbed to 11.1 million bpd in early June.

In the United States, output has risen by almost a third in the last two years, to a record 10.8 million bpd.

Top exporter Saudi Arabia - which has so far led OPEC's efforts to withhold supplies - is also showing signs of raising production.

OPEC said on Tuesday the outlook in the second half of the year is highly uncertain even though the oil producer group's figures show a global glut is gone, suggesting exporters will be in no rush to fully relax output curbs next week.

"Recently, crude oil futures have lost some momentum amid uncertainty as traders prepare for potentially more supply returning to the market," the group said.

"I feel that if they would like to be a responsible swing producer for the global oil market, based on their (demand) numbers, they should increase production by at least 1 million bpd from the current level," PVM Oil Associates strategist Tamas Varga said. 
&nbsp;

The Organization of the Petroleum Exporting Countries released its monthly report on Tuesday, in which it cited the high degree of uncertainty hanging over the global oil market this year

Oil prices eased on Tuesday, paring earlier gains, although volatility subsided to its lowest in three weeks, as investors prepared for a key meeting of the OPEC producer group next week. Crude remained in a tight trading range, in line with the broader financial markets, which were largely unruffled by a US-North Korea summit aimed at the denuclearisation of the Korean peninsula. The Organization of the Petroleum Exporting Countries released its monthly report on Tuesday, in which it cited the high degree of uncertainty hanging over the global oil market this year. Brent crude futures fell 29 cents to $76.17 a barrel by 1143 GMT, while US West Texas Intermediate crude futures eased 12 cents to $65.98. "The market has been rangebound for two weeks and that is likely to remain the case," Ole Hansen, senior manager at Saxo Bank, said. OPEC, together with partners including Russia, has cut oil output by 1.8 million barrels per day (bpd) since January 2017 in an effort to boost the market. Volatility in oil prices has subsided due to caution around the group's meetings scheduled for June 22-23, at which it will decide on future supply policy. With US sanctions threatening to cut Iranian exports and the potential for more declines in Venezuelan production, OPEC kingpin Saudi Arabia and Russia have indicated they would be willing to raise output to make up for any supply shortfall. Russian production reportedly climbed to 11.1 million bpd in early June. In the United States, output has risen by almost a third in the last two years, to a record 10.8 million bpd. Top exporter Saudi Arabia - which has so far led OPEC's efforts to withhold supplies - is also showing signs of raising production. OPEC said on Tuesday the outlook in the second half of the year is highly uncertain even though the oil producer group's figures show a global glut is gone, suggesting exporters will be in no rush to fully relax output curbs next week. "Recently, crude oil futures have lost some momentum amid uncertainty as traders prepare for potentially more supply returning to the market," the group said. "I feel that if they would like to be a responsible swing producer for the global oil market, based on their (demand) numbers, they should increase production by at least 1 million bpd from the current level," PVM Oil Associates strategist Tamas Varga said.

Oil eases; OPEC cites uncertain market outlook for 2018

Iran criticised a US&nbsp;request that Saudi Arabia pump more oil to cover a drop in Iranian exports and predicted OPEC would not heed the appeal, setting the stage for a tough meeting of the producer group later this month.

Iran’s OPEC governor, Hossein Kazempour Ardebili, was responding to news that the US&nbsp;government had unofficially asked Saudi Arabia and some other OPEC producers to raise output.

“It’s crazy and astonishing to see instruction coming from Washington to Saudi to act and replace a shortfall of Iran’s export due to their Illegal sanction on Iran and Venezuela,” Kazempour said in comments to Reuters.

He predicted OPEC would not heed the US&nbsp;request and said oil prices would jump in response to Washington's sanctions on Iran and Venezuela, as they did during a previous round of US&nbsp;sanctions against Iran.

“No one in OPEC will act against two of its founder members,” he said.

“The US&nbsp;tried it last time against Iran, but oil prices got to $140 a barrel.”

The Organization of the Petroleum Exporting Countries meets to review its oil output policy on June 22 in Vienna.

OPEC, founded in 1960, has a history of collaboration over oil policy despite differences of opinion and even wars between some members over the years.

Kazempour said the group would unite in opposition to the US&nbsp;request.

“OPEC will not accept such a humiliation. How arrogant and ignorant one could be (to) underestimate the history of 60 years' cooperation among competitors,” he said.“We have to live together - we cannot change geography but we must build better history,” he said.

Iran’s OPEC governor, Hossein Kazempour Ardebili, was responding to news that the US government had unofficially asked Saudi Arabia and some other OPEC producers to raise output

Iran criticised a US request that Saudi Arabia pump more oil to cover a drop in Iranian exports and predicted OPEC would not heed the appeal, setting the stage for a tough meeting of the producer group later this month. Iran’s OPEC governor, Hossein Kazempour Ardebili, was responding to news that the US government had unofficially asked Saudi Arabia and some other OPEC producers to raise output. “It’s crazy and astonishing to see instruction coming from Washington to Saudi to act and replace a shortfall of Iran’s export due to their Illegal sanction on Iran and Venezuela,” Kazempour said in comments to Reuters. He predicted OPEC would not heed the US request and said oil prices would jump in response to Washington's sanctions on Iran and Venezuela, as they did during a previous round of US sanctions against Iran. “No one in OPEC will act against two of its founder members,” he said. “The US tried it last time against Iran, but oil prices got to $140 a barrel.” The Organization of the Petroleum Exporting Countries meets to review its oil output policy on June 22 in Vienna. OPEC, founded in 1960, has a history of collaboration over oil policy despite differences of opinion and even wars between some members over the years. Kazempour said the group would unite in opposition to the US request. “OPEC will not accept such a humiliation. How arrogant and ignorant one could be (to) underestimate the history of 60 years' cooperation among competitors,” he said.“We have to live together - we cannot change geography but we must build better history,” he said.

Iran slams US for seeking Saudi oil output hike, says OPEC won’t comply

Oil prices fell on Friday, reversing early gains as signs of weakening demand in China and surging U.S. output weighed on markets despite support from supply woes in Venezuela and OPEC's production cuts.

Brent crude futures, the international benchmark for oil prices, were at $76.79 per barrel at 0654 GMT, down 53 cents, or 0.7 per cent, from their last close.

US&nbsp;West Texas Intermediate (WTI) crude futures were down 38 cents, or 0.6 per cent, at $65.57 a barrel.

China's May crude oil imports eased away from a record high hit the month before, customs data showed on Friday, with state-run refineries entering planned maintenance.

May shipments were 39.05 million tonnes, or 9.2 million barrels per day (bpd), according to the General Administration of Customs. That compared with 9.6 million bpd in April.

Further weighing on prices has been surging U.S. output, which hit another record last week at 10.8 million bpd.

That's a 28 per cent gain in two years, or an average 2.3 per cent growth rate per month since mid-2016. It puts the United States close to becoming the world's biggest crude oil producer, edging nearer to the 11 million bpd churned out by Russia.

The surge in U.S. production has pulled down U.S. WTI crude into a steep discount versus Brent to more than $11 per barrel, its steepest since 2015.

"This is occurring because of the rapid increase in production from U.S. shale coupled with the tightening of supplies elsewhere through the actions of OPEC and Russia," said William O'Loughlin, investment analyst at Australia's Rivkin Securities.

Despite Friday's falls, Brent remains more than 15 per cent above its level at the start of the year.

U.S. investment bank Jefferies said on Friday that the "crude market is tight and spare capacity could dwindle to 2 per cent of demand in 2H18, its lowest level since at least 1984".

Markets have been tightened by supply trouble in Venezuela, where state-owned oil firm PDVSA is struggling to clear a backlog of around 24 million barrels of crude waiting to be shipped to customers.

More generally, Brent has been pushed up by voluntary production cuts led by the Middle East dominated producer cartel of the Organization of the Petroleum Exporting Countries (OPEC) and by top producer Russia, which were put in place in 2017.

The group and Russia are due to meet at its headquarters in Vienna on June 22 to discuss production policy.

"The June 22 OPEC meeting will now likely become the most important factor influencing (the) crude price," Jefferies said.

US West Texas Intermediate (WTI) crude futures were down 38 cents, or 0.6 per cent, at $65.57 a barrel

Oil prices fell on Friday, reversing early gains as signs of weakening demand in China and surging U.S. output weighed on markets despite support from supply woes in Venezuela and OPEC's production cuts. Brent crude futures, the international benchmark for oil prices, were at $76.79 per barrel at 0654 GMT, down 53 cents, or 0.7 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were down 38 cents, or 0.6 per cent, at $65.57 a barrel. China's May crude oil imports eased away from a record high hit the month before, customs data showed on Friday, with state-run refineries entering planned maintenance. May shipments were 39.05 million tonnes, or 9.2 million barrels per day (bpd), according to the General Administration of Customs. That compared with 9.6 million bpd in April. Further weighing on prices has been surging U.S. output, which hit another record last week at 10.8 million bpd. That's a 28 per cent gain in two years, or an average 2.3 per cent growth rate per month since mid-2016. It puts the United States close to becoming the world's biggest crude oil producer, edging nearer to the 11 million bpd churned out by Russia. The surge in U.S. production has pulled down U.S. WTI crude into a steep discount versus Brent to more than $11 per barrel, its steepest since 2015. "This is occurring because of the rapid increase in production from U.S. shale coupled with the tightening of supplies elsewhere through the actions of OPEC and Russia," said William O'Loughlin, investment analyst at Australia's Rivkin Securities. Despite Friday's falls, Brent remains more than 15 per cent above its level at the start of the year. U.S. investment bank Jefferies said on Friday that the "crude market is tight and spare capacity could dwindle to 2 per cent of demand in 2H18, its lowest level since at least 1984". Markets have been tightened by supply trouble in Venezuela, where state-owned oil firm PDVSA is struggling to clear a backlog of around 24 million barrels of crude waiting to be shipped to customers. More generally, Brent has been pushed up by voluntary production cuts led by the Middle East dominated producer cartel of the Organization of the Petroleum Exporting Countries (OPEC) and by top producer Russia, which were put in place in 2017. The group and Russia are due to meet at its headquarters in Vienna on June 22 to discuss production policy. "The June 22 OPEC meeting will now likely become the most important factor influencing (the) crude price," Jefferies said.

Oil prices fall on dip in China demand, surging US output

Oil&nbsp;prices&nbsp;eased slightly on Thursday following a rally in the previous session, as investors eyed a surprise increase in US&nbsp;crude&nbsp;oil&nbsp;inventories and looked to a possible rise in output when OPEC and other producers meet in June.

Oil&nbsp;prices&nbsp;rebounded on Wednesday as Russia's central bank expressed caution on plans to boost&nbsp;oil&nbsp;supply, while some analysts see positive market fundamentals despite the possibility of rising supplies.

"Though crude&nbsp;oil&nbsp;has receded significantly in the charts, market fundamentals remain supportive as robust global demand and declining stockpiles bolster&nbsp;prices&nbsp;upwards," Benjamin Lu, commodities analyst at Singapore-based broker Phillip Futures, said in a note.

Brent crude was down 38 cents, or 0.5 per cent, at $77.12 per barrel at 0643 GMT, after settling the last session up 2.8 per cent.

US&nbsp;West Texas Intermediate crude was down 20 cents, or 0.3 per cent, at $68.01 a barrel.

In the previous session, it settled up $1.48, or 2.2 per cent, at $68.21 per barrel.

Global inventories have been broadly falling, but US&nbsp;crude stockpiles rose by 1 million barrels in the week to May 25 to 434.9 million barrels, according to data from industry group the American Petroleum Institute (API).

That beat analyst expectations for a decrease of 525,000 barrels.

Data from the Energy Information Administration is due at 11 am&nbsp;EDT (1500 GMT) on Thursday, a day later than usual due to a US&nbsp;public holiday on Monday.

A possible output increase by the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC members including Russia has been in focus.

Saudi Arabia, de facto leader of OPEC, and Russia have discussed boosting output by some 1 million barrels per day (bpd).

OPEC and some non-OPEC producers have committed to curbing their output by about 1.8 million bpd until the end of 2018, but they will meet in Vienna on June 22 to discuss whether their commitment should remain unchanged.

"With the OPEC meeting still another three weeks away,&nbsp;oil&nbsp;prices&nbsp;are likely to remain sensitive to headlines," ANZ bank said in a note.

A Gulf source familiar with the thinking of Saudi Arabia said OPEC and its allies aim to continue their agreement to cut&nbsp;oil&nbsp;output through the end of the year, but they are ready to make adjustments to offset any supply shortfall.

"We expect for&nbsp;oil&nbsp;prices&nbsp;to stand tall in the current week as OPEC 'talk&nbsp;prices&nbsp;up' before the Vienna meet," said Lu of Phillip Futures.

In Asia, Shanghai September crude&nbsp;oil&nbsp;futures rose 2.2 per cent by the midday break on Thursday, with open interest rising to a record on a weaker yuan and the rally in Brent and WTI overnight.

Data from the Energy Information Administration is due at 11 am EDT (1500 GMT) on Thursday, a day later than usual due to a US public holiday on Monday

Oil prices eased slightly on Thursday following a rally in the previous session, as investors eyed a surprise increase in US crude oil inventories and looked to a possible rise in output when OPEC and other producers meet in June. Oil prices rebounded on Wednesday as Russia's central bank expressed caution on plans to boost oil supply, while some analysts see positive market fundamentals despite the possibility of rising supplies. "Though crude oil has receded significantly in the charts, market fundamentals remain supportive as robust global demand and declining stockpiles bolster prices upwards," Benjamin Lu, commodities analyst at Singapore-based broker Phillip Futures, said in a note. Brent crude was down 38 cents, or 0.5 per cent, at $77.12 per barrel at 0643 GMT, after settling the last session up 2.8 per cent. US West Texas Intermediate crude was down 20 cents, or 0.3 per cent, at $68.01 a barrel. In the previous session, it settled up $1.48, or 2.2 per cent, at $68.21 per barrel. Global inventories have been broadly falling, but US crude stockpiles rose by 1 million barrels in the week to May 25 to 434.9 million barrels, according to data from industry group the American Petroleum Institute (API). That beat analyst expectations for a decrease of 525,000 barrels. Data from the Energy Information Administration is due at 11 am EDT (1500 GMT) on Thursday, a day later than usual due to a US public holiday on Monday. A possible output increase by the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC members including Russia has been in focus. Saudi Arabia, de facto leader of OPEC, and Russia have discussed boosting output by some 1 million barrels per day (bpd). OPEC and some non-OPEC producers have committed to curbing their output by about 1.8 million bpd until the end of 2018, but they will meet in Vienna on June 22 to discuss whether their commitment should remain unchanged. "With the OPEC meeting still another three weeks away, oil prices are likely to remain sensitive to headlines," ANZ bank said in a note. A Gulf source familiar with the thinking of Saudi Arabia said OPEC and its allies aim to continue their agreement to cut oil output through the end of the year, but they are ready to make adjustments to offset any supply shortfall. "We expect for oil prices to stand tall in the current week as OPEC 'talk prices up' before the Vienna meet," said Lu of Phillip Futures. In Asia, Shanghai September crude oil futures rose 2.2 per cent by the midday break on Thursday, with open interest rising to a record on a weaker yuan and the rally in Brent and WTI overnight.

Oil prices ease after sharp gains; eyes on OPEC supply moves

US&nbspstocks dropped on Thursday, but were well off the session lows hit after President Donald Trump cancelled a summit with North Korea's Kim Jong Un and threatened to impose tariffs on auto imports.

Trump cancelled the June 12 meeting citing Pyongyang's "open hostility,", even after North Korea followed through on a pledge to blow up tunnels at its nuclear test site.

The market, already lower due to a slide in oil prices and worries over Trump ordering a national security investigation into car and truck imports, dropped sharply after the meeting was called off.

The autos probe, ordered on Wednesday, could lead to new tariffs and China called the move an "abuse" of the national security clauses and said it would defend its interests.

Market participants said the drop after the summit was cancelled was a knee-jerk reaction.&nbsp

"Really not sure why people are looking at it so negatively, except when world politics is unstable, investors` knee-jerk reaction is to sell first and ask questions later," said Rick Meckler, partner, Cherry Lane Investments, a

family investment office in New Vernon, New Jersey.

"The bigger news has really been the proposed tariffs on foreign cars, the administration provides so much potential change everyday, that it's difficult for investors to see consistency to the economic future."

At 13:24 pm&nbspET, the Dow Jones Industrial Average was down 64.85 points, or 0.26 per cent, at 24,821.96, the S&P 500 was down 4.23 points, or 0.15 per cent, at 2,729.06 and the Nasdaq Composite was up 1.98 points, or 0.03 per cent, at 7,427.94.

Earlier in the session the blue chip Dow fell as much as 1.1 per cent to touch a two-week low.

Defense stocks jumped after Trump called off the North Korea meeting and warned that the US&nbspmilitary was ready in the event of any reckless acts by North Korea.

Seven of the 11 major S&P sectors were in the red, with financials dropping 0.67 per cent.

The big banks were trading lower as the minutes from the Federal Reserve`s latest meeting tempered expectations of faster interest rate hikes.

The energy sector fell 1.25 per cent alongside a slide in oil prices.

US&nbspcrude future declined about 1 per cent, with expectations building that OPEC could wind down an output deal due to concerns about supplies from Venezuela and Iran.&nbsp

Ford and General Motors gained on the possibility of tariffs on European and Asian car imports. US-listed shares of Fiat fell 1.5 per cent.

Best Buy Co tumbled 7.5 per cent after the consumer electronics retailer reported a slowdown in quarterly online sales and did not update its full-year outlook.

Advancing issues outnumbered decliners by a 1.01-to-1 ratio on the NYSE and for a 1.02-to-1 ratio on the Nasdaq.

The S&P index recorded 19 new 52-week highs and one new low, while the Nasdaq recorded 89 new highs and 37 new lows.

Trump cancelled the June 12 meeting citing Pyongyang's "open hostility,", even after North Korea followed through on a pledge to blow up tunnels at its nuclear test site

US&nbspstocks dropped on Thursday, but were well off the session lows hit after President Donald Trump cancelled a summit with North Korea's Kim Jong Un and threatened to impose tariffs on auto imports. Trump cancelled the June 12 meeting citing Pyongyang's "open hostility,", even after North Korea followed through on a pledge to blow up tunnels at its nuclear test site. The market, already lower due to a slide in oil prices and worries over Trump ordering a national security investigation into car and truck imports, dropped sharply after the meeting was called off. The autos probe, ordered on Wednesday, could lead to new tariffs and China called the move an "abuse" of the national security clauses and said it would defend its interests. Market participants said the drop after the summit was cancelled was a knee-jerk reaction. "Really not sure why people are looking at it so negatively, except when world politics is unstable, investors` knee-jerk reaction is to sell first and ask questions later," said Rick Meckler, partner, Cherry Lane Investments, a family investment office in New Vernon, New Jersey. "The bigger news has really been the proposed tariffs on foreign cars, the administration provides so much potential change everyday, that it's difficult for investors to see consistency to the economic future." At 13:24 pm&nbspET, the Dow Jones Industrial Average was down 64.85 points, or 0.26 per cent, at 24,821.96, the S&P 500 was down 4.23 points, or 0.15 per cent, at 2,729.06 and the Nasdaq Composite was up 1.98 points, or 0.03 per cent, at 7,427.94. Earlier in the session the blue chip Dow fell as much as 1.1 per cent to touch a two-week low. Defense stocks jumped after Trump called off the North Korea meeting and warned that the US&nbspmilitary was ready in the event of any reckless acts by North Korea. Seven of the 11 major S&P sectors were in the red, with financials dropping 0.67 per cent. The big banks were trading lower as the minutes from the Federal Reserve`s latest meeting tempered expectations of faster interest rate hikes. The energy sector fell 1.25 per cent alongside a slide in oil prices. US&nbspcrude future declined about 1 per cent, with expectations building that OPEC could wind down an output deal due to concerns about supplies from Venezuela and Iran. Ford and General Motors gained on the possibility of tariffs on European and Asian car imports. US-listed shares of Fiat fell 1.5 per cent. Best Buy Co tumbled 7.5 per cent after the consumer electronics retailer reported a slowdown in quarterly online sales and did not update its full-year outlook. Advancing issues outnumbered decliners by a 1.01-to-1 ratio on the NYSE and for a 1.02-to-1 ratio on the Nasdaq. The S&P index recorded 19 new 52-week highs and one new low, while the Nasdaq recorded 89 new highs and 37 new lows.

Wall Street dips after Trump cancels North Korea summit, targets car imports

Oil prices eased&nbsp;on Friday&nbsp;as Russia hinted it may gradually increase output, after having withheld supplies in concert with producer cartel OPEC since 2017.

Brent crude futures were at $78.63 per barrel at 0534 GMT, down 16 cents from their last close, and more than 2.2 percent below the $80.50 multi-year high they reached on May 17. Brent broke through $80 for the first time in more than three years earlier in May.

US&nbsp;West Texas Intermediate (WTI) crude futures were at $70.60 a barrel, down 11 cents from their last settlement.

"Oil prices are now starting to drift a little," said Greg McKenna,&nbsp;chief&nbsp;market strategist at futures brokerage AxiTrader, adding that this was due to OPEC's and Russia's "moves toward an increase in production" at a meeting scheduled for next month.

The Middle East dominated Organization of the Petroleum Exporting Countries (OPEC), as well as a group of non-OPEC producers led by Russia, started withholding output in 2017 to tighten the market and prop up prices.

But Russia, in particular, has been floating a potential end to the production cuts, with energy minister Alexander Novak saying&nbsp;on Thursday&nbsp;that restrictions on oil production could be eased "softly" if OPEC and non-OPEC countries see the oil market balancing in June.

"The Russians have always struck me as production cut tourists keen to get off the boat and crank up production as soon as inventories were stabilised and prices once again elevated ... That possibility is top of the mind for traders and as result&nbsp;oil prices are slipping," McKenna said.

Still, the downside risk to oil prices could be limited by geopolitical factors.&nbsp;

"Oil prices, however, look primed to withstand the slip as heightened geopolitical risks from the Middle East, (and) raised prospects of a supply squeeze in Venezuela and Iran permeates global market sentiment," Benjamin Lu, an investment analyst at Phillip Futures in Singapore said in a note to clients.

While Russia and OPEC benefit from higher oil prices, which have risen by almost 20 percent since the end of last year, their voluntary output cuts have opened the door to other producers to ramp up output and gain market share.

US&nbsp;crude oil production has risen by more than a quarter in the last two years, to 10.73 million barrels per day (bpd). Only Russia produces more, at around 11 million bpd.

Output by producers like the United States, Canada or Brazil which are not bound by the OPEC/Russian led agreement to cut, will likely rise further as higher crude prices improve their profitability.

"With oil prices rising more than costs, average industry profitability has turned positive this year," Bernstein Energy said in a note this week, adding that the 50 largest listed oil companies globally "need $47 per barrel oil prices to break even in aggregate".

US West Texas Intermediate (WTI) crude futures were at $70.60 a barrel, down 11 cents from their last settlement

Oil prices eased on Friday as Russia hinted it may gradually increase output, after having withheld supplies in concert with producer cartel OPEC since 2017. Brent crude futures were at $78.63 per barrel at 0534 GMT, down 16 cents from their last close, and more than 2.2 percent below the $80.50 multi-year high they reached on May 17. Brent broke through $80 for the first time in more than three years earlier in May. US West Texas Intermediate (WTI) crude futures were at $70.60 a barrel, down 11 cents from their last settlement. "Oil prices are now starting to drift a little," said Greg McKenna, chief market strategist at futures brokerage AxiTrader, adding that this was due to OPEC's and Russia's "moves toward an increase in production" at a meeting scheduled for next month. The Middle East dominated Organization of the Petroleum Exporting Countries (OPEC), as well as a group of non-OPEC producers led by Russia, started withholding output in 2017 to tighten the market and prop up prices. But Russia, in particular, has been floating a potential end to the production cuts, with energy minister Alexander Novak saying on Thursday that restrictions on oil production could be eased "softly" if OPEC and non-OPEC countries see the oil market balancing in June. "The Russians have always struck me as production cut tourists keen to get off the boat and crank up production as soon as inventories were stabilised and prices once again elevated ... That possibility is top of the mind for traders and as result oil prices are slipping," McKenna said. Still, the downside risk to oil prices could be limited by geopolitical factors. "Oil prices, however, look primed to withstand the slip as heightened geopolitical risks from the Middle East, (and) raised prospects of a supply squeeze in Venezuela and Iran permeates global market sentiment," Benjamin Lu, an investment analyst at Phillip Futures in Singapore said in a note to clients. While Russia and OPEC benefit from higher oil prices, which have risen by almost 20 percent since the end of last year, their voluntary output cuts have opened the door to other producers to ramp up output and gain market share. US crude oil production has risen by more than a quarter in the last two years, to 10.73 million barrels per day (bpd). Only Russia produces more, at around 11 million bpd. Output by producers like the United States, Canada or Brazil which are not bound by the OPEC/Russian led agreement to cut, will likely rise further as higher crude prices improve their profitability. "With oil prices rising more than costs, average industry profitability has turned positive this year," Bernstein Energy said in a note this week, adding that the 50 largest listed oil companies globally "need $47 per barrel oil prices to break even in aggregate".

Oil prices fall as Russia warns of gradual output increase

Oil&nbsp;rose&nbsp;towards&nbsp;$80 a barrel on Tuesday, supported by concern that falling Venezuelan crude output and a potential drop in Iranian exports could further tighten global supply.

Crude is trading at the highest since late 2014, underpinned by a&nbsp;supply-cutting deal among the Organization of the Petroleum Exporting Countries plus Russia and other non-members, and strong global demand.

Brent crude, the global benchmark, rose 54 cents to $79.76 a barrel by 1221 GMT. Last week, it topped $80 for the first time since November 2014.

US&nbsp;crude was up 31 cents at $72.55, having earlier traded at $72.72, its highest since November 2014.

"The solid global economy, selected&nbsp;supply&nbsp;disruptions and the upbeat market mood in particular in&nbsp;oil&nbsp;frame a positive environment," said Norbert Ruecker, head of commodities and macro research at Julius Baer.

The US&nbsp;government imposed new sanctions on Venezuela following Sunday's re-election of President Nicolas Maduro, a move that analysts say could further curb the country's&nbsp;oil&nbsp;output already at its lowest in decades.

"We can expect continued falling Venezuelan production," said Tony Nunan,&nbsp;oil&nbsp;risk manager at Mitsubishi Corporation in Tokyo.

Concern about a potential drop in Iranian&nbsp;oil&nbsp;exports following Washington's exit from a nuclear deal with Tehran and the threat of US&nbsp;sanctions is also supporting prices. On Monday, the United States hardened its approach to Iran.

Venezuela and Iran are members of OPEC, which with its allies has curbed production since January 2017 to get rid of a&nbsp;supply&nbsp;glut that in mid-2014 led to a price collapse.

Due in part to the involuntary drop in Venezuela's output, OPEC is over-delivering on the agreement. Saudi Arabia and other major OPEC producers could, in theory, add more&nbsp;supply, but have yet to do so.

The OPEC-led&nbsp;supply&nbsp;curbs have largely cleared an inventory surplus in industrialised countries based on the deal's original goals, and stocks continue to decline.

US&nbsp;crude stockpiles are forecast to have declined by 2.8 million barrels last week, a third straight weekly fall. The American Petroleum Institute's inventory report for the period is due at 2030 GMT.

Limiting the upward pressure on prices is rising&nbsp;supply&nbsp;in the United States, where shale production is forecast to hit a record high in June.

Crude oil is trading at the highest since late 2014, underpinned by a supply-cutting deal among the Organization of the Petroleum Exporting Countries plus Russia and other non-members, and strong global demand

Oil rose towards $80 a barrel on Tuesday, supported by concern that falling Venezuelan crude output and a potential drop in Iranian exports could further tighten global supply. Crude is trading at the highest since late 2014, underpinned by a supply-cutting deal among the Organization of the Petroleum Exporting Countries plus Russia and other non-members, and strong global demand. Brent crude, the global benchmark, rose 54 cents to $79.76 a barrel by 1221 GMT. Last week, it topped $80 for the first time since November 2014. US crude was up 31 cents at $72.55, having earlier traded at $72.72, its highest since November 2014. "The solid global economy, selected supply disruptions and the upbeat market mood in particular in oil frame a positive environment," said Norbert Ruecker, head of commodities and macro research at Julius Baer. The US government imposed new sanctions on Venezuela following Sunday's re-election of President Nicolas Maduro, a move that analysts say could further curb the country's oil output already at its lowest in decades. "We can expect continued falling Venezuelan production," said Tony Nunan, oil risk manager at Mitsubishi Corporation in Tokyo. Concern about a potential drop in Iranian oil exports following Washington's exit from a nuclear deal with Tehran and the threat of US sanctions is also supporting prices. On Monday, the United States hardened its approach to Iran. Venezuela and Iran are members of OPEC, which with its allies has curbed production since January 2017 to get rid of a supply glut that in mid-2014 led to a price collapse. Due in part to the involuntary drop in Venezuela's output, OPEC is over-delivering on the agreement. Saudi Arabia and other major OPEC producers could, in theory, add more supply, but have yet to do so. The OPEC-led supply curbs have largely cleared an inventory surplus in industrialised countries based on the deal's original goals, and stocks continue to decline. US crude stockpiles are forecast to have declined by 2.8 million barrels last week, a third straight weekly fall. The American Petroleum Institute's inventory report for the period is due at 2030 GMT. Limiting the upward pressure on prices is rising supply in the United States, where shale production is forecast to hit a record high in June.

Oil rises towards $80 as supply concerns mount

As fuel prices hit record highs, the government may be mulling a tax cut.&nbsp

Petrol was selling in Delhi on Sunday at <a href="http://www.wionews.com/india-news/petrol-diesel-prices-hit-record-highs-in-delhi-138381">Rs 76.24 a litre</a>, the highest ever since September 14, 2013.&nbsp

On Monday, prices climbed even higher to Rs 76.57 a litre.&nbsp

This is the eighth straight day fuel prices have risen.&nbsp

Oil retailers had frozen prices on April 24 — after being nudged by the government to do so&nbsp&nbsp&nbsp— as Karnataka went to the polls.&nbsp

The freeze was lifted on May 14, two days after the elections.&nbsp

The retailers are now trying to catch up with global oil prices.&nbsp

On Sunday however, Oil Minister Dharmendra Pradhan said in Bhubaneshwar that the Centre was "sensitive" about "rising fuel prices". That alternatives were being explored and that he hoped something would "work out soon".&nbsp

That, news reports said Monday, indicated the government may be thinking about a tax cut.&nbsp

Pradhan has so far&nbspruled out an excise cut, saying the price rise is temporary. He has blamed the price rise on OPEC's decision to cut production, US sanctions on Iran, and the <a href="http://www.wionews.com/world/venezuela-maduro-wins-presidential-vote-138497">instability in Venezuela</a>.&nbsp

He has instead urged states to cut VAT and bring fuels under the GST regime.&nbsp

But the minister's statement on Sunday, the reports said, indicates a rethink by the government in order to avoid the public outcry getting any louder. 
&nbsp

Oil Minister Dharmendra Pradhan said on Sunday that the Centre was 'sensitive' about 'rising fuel prices'. That alternatives were being explored and that he hoped something would 'work out soon'

As fuel prices hit record highs, the government may be mulling a tax cut. Petrol was selling in Delhi on Sunday at Rs 76.24 a litre, the highest ever since September 14, 2013. On Monday, prices climbed even higher to Rs 76.57 a litre. This is the eighth straight day fuel prices have risen. Oil retailers had frozen prices on April 24 — after being nudged by the government to do so — as Karnataka went to the polls. The freeze was lifted on May 14, two days after the elections. The retailers are now trying to catch up with global oil prices. On Sunday however, Oil Minister Dharmendra Pradhan said in Bhubaneshwar that the Centre was "sensitive" about "rising fuel prices". That alternatives were being explored and that he hoped something would "work out soon". That, news reports said Monday, indicated the government may be thinking about a tax cut. Pradhan has so far&nbspruled out an excise cut, saying the price rise is temporary. He has blamed the price rise on OPEC's decision to cut production, US sanctions on Iran, and the instability in Venezuela. He has instead urged states to cut VAT and bring fuels under the GST regime. But the minister's statement on Sunday, the reports said, indicates a rethink by the government in order to avoid the public outcry getting any louder.

As fuel prices hit record highs, government may be mulling a tax cut

Oil prices rose&nbsp;on Monday&nbsp;as markets reacted to news that China and the United States have put a looming trade war between the world's two biggest economies "on hold".

Brent crude futures were at $79.06 per barrel at 0650 GMT, up 55 cents, or 0.7 percent, from their last close. Brent broke through $80 for the first time since November 2014 last week.

US&nbsp;West Texas Intermediate (WTI) crude futures were at $71.71 a barrel, up 43 cents, or 0.6 percent, from their last settlement.

The US&nbsp;trade war with China is "on hold" after the world's largest economies agreed to drop their tariff threats while they work on a wider trade agreement, US&nbsp;Treasury Secretary Steven Mnuchin said&nbsp;on Sunday, giving global markets a lift in early trading&nbsp;on Monday.

"The temporary trade dispute will de-escalate over time through negotiation," US&nbsp;bank Morgan Stanley said.

"Both sides plan to work on implementing agriculture and energy purchases and to continue to negotiate on manufacturing and service trade, bilateral investment and intellectual property protection in coming months," it added.

Still, crude prices were some way off the November 2014 highs reached last week as many traders and analysts say there is enough supply to meet demand despite ongoing production cuts led by the Organization of the Petroleum Exporting Countries (OPEC), plunging output in crisis-struck Venezuela and looming US&nbsp;sanctions against major oil producer Iran.

"Without a further escalation in geopolitical risk, oil might be a&nbsp;due&nbsp;pullback," said Greg McKenna,&nbsp;chief&nbsp;market strategist at futures brokerage AxiTrader.

BP's Chief Executive Bob Dudley told Reuters he expected a flood of US&nbsp;shale and a possible reopening of OPEC taps to cool oil markets after crude rose above $80 a barrel last week.

Dudley said he saw oil prices falling to between $50 and $65 a barrel due to surging shale output and OPEC's capacity to boost production to replace potential falls in Iranian supplies due to sanctions.

The US&nbsp;oil rig count, an early indicator of future output, was at 844, according to energy services firm Baker Hughes. That was the same count as the week before, which marked the highest level since March 2015.

Oil prices rose on Monday as markets reacted to news that China and the United States have put a looming trade war between the world's two biggest economies 'on hold'

Oil prices rose on Monday as markets reacted to news that China and the United States have put a looming trade war between the world's two biggest economies "on hold". Brent crude futures were at $79.06 per barrel at 0650 GMT, up 55 cents, or 0.7 percent, from their last close. Brent broke through $80 for the first time since November 2014 last week. US West Texas Intermediate (WTI) crude futures were at $71.71 a barrel, up 43 cents, or 0.6 percent, from their last settlement. The US trade war with China is "on hold" after the world's largest economies agreed to drop their tariff threats while they work on a wider trade agreement, US Treasury Secretary Steven Mnuchin said on Sunday, giving global markets a lift in early trading on Monday. "The temporary trade dispute will de-escalate over time through negotiation," US bank Morgan Stanley said. "Both sides plan to work on implementing agriculture and energy purchases and to continue to negotiate on manufacturing and service trade, bilateral investment and intellectual property protection in coming months," it added. Still, crude prices were some way off the November 2014 highs reached last week as many traders and analysts say there is enough supply to meet demand despite ongoing production cuts led by the Organization of the Petroleum Exporting Countries (OPEC), plunging output in crisis-struck Venezuela and looming US sanctions against major oil producer Iran. "Without a further escalation in geopolitical risk, oil might be a due pullback," said Greg McKenna, chief market strategist at futures brokerage AxiTrader. BP's Chief Executive Bob Dudley told Reuters he expected a flood of US shale and a possible reopening of OPEC taps to cool oil markets after crude rose above $80 a barrel last week. Dudley said he saw oil prices falling to between $50 and $65 a barrel due to surging shale output and OPEC's capacity to boost production to replace potential falls in Iranian supplies due to sanctions. The US oil rig count, an early indicator of future output, was at 844, according to energy services firm Baker Hughes. That was the same count as the week before, which marked the highest level since March 2015.

Ascending oil prices make China and US put trade war 'on hold'

India is aiming to drive harder bargains with global oil producers, including Saudi Arabia, during bilateral meetings at a conference of energy ministers this week, officials said, leveraging its strength as the world's third-biggest crude importer.

Key producers from the Organization of the Petroleum Exporting Countries (OPEC), threatened by the rising output from new and non-OPEC countries, are trying to secure a foothold in India where refining capacity is set to surge to 8 million barrels per day (bpd) by 2030 from 5 million bpd.

An official from India's oil ministry and two officials from the country's state-run energy firms said they are hoping to advance talks with Saudi Arabia and Nigeria for crude supplies at the meeting of the International Energy Forum that India is co-hosting with China and South Korea this week.

"The world recognises the size of India's market, its appetite. We want suppliers to look at India more favourably than in the past. We want the agreements to be more transparent and fair," Oil Minister Dharmendra Pradhan told Reuters on Tuesday.

Such demands reflect a new confidence in India as a driver of global energy growth and are a far cry from earlier summits when oil ministry officials and the executives of state oil firms would plead for more crude oil supplies, said Sri Paravaikkarasu, head of East of Suez Oil at consultancy FGE.

"Now Indian officials go to these summits and ask producers for incentives. It's a big change," she said.

Some concessions are already coming.

Iran has offered to increase a discount on freight prices to Indian state refiners to double its sales to the companies, which control about one-third of India's refining capacity.

Saudi Aramco raised the credit limit for some Indian refiners last year so that they could lift more crude without providing explicit financial guarantees.

India's footprint in global energy markets will increase "materially" from 2018 to 2040, making it the largest growth market for global energy, BP Plc said in its energy outlook report in February.&nbsp;

Indian state oil executives say there is now a more balanced relationship with suppliers.

"Our ties with key oil suppliers are moving towards collaboration level rather than just buyer-seller," said M. K. Surana, chairman of Hindustan Petroleum Corp.

India last year began buying oil from the United States to cut its dependence on the Middle East, whose share of overall imports fell to 64.1 per cent in the fiscal year of 2016/17 from about 80 per cent in the 2007/08 fiscal year, government data showed.

"America as an alternate source can give us better-negotiating power with the Middle East," R. Ramachandran, the head of refineries for Bharat Petroleum Corp Ltd, said.

Key producers from OPEC are trying to secure a foothold in India where refining capacity is set to surge to 8 million barrels per day by 2030

India is aiming to drive harder bargains with global oil producers, including Saudi Arabia, during bilateral meetings at a conference of energy ministers this week, officials said, leveraging its strength as the world's third-biggest crude importer. Key producers from the Organization of the Petroleum Exporting Countries (OPEC), threatened by the rising output from new and non-OPEC countries, are trying to secure a foothold in India where refining capacity is set to surge to 8 million barrels per day (bpd) by 2030 from 5 million bpd. An official from India's oil ministry and two officials from the country's state-run energy firms said they are hoping to advance talks with Saudi Arabia and Nigeria for crude supplies at the meeting of the International Energy Forum that India is co-hosting with China and South Korea this week. "The world recognises the size of India's market, its appetite. We want suppliers to look at India more favourably than in the past. We want the agreements to be more transparent and fair," Oil Minister Dharmendra Pradhan told Reuters on Tuesday. Such demands reflect a new confidence in India as a driver of global energy growth and are a far cry from earlier summits when oil ministry officials and the executives of state oil firms would plead for more crude oil supplies, said Sri Paravaikkarasu, head of East of Suez Oil at consultancy FGE. "Now Indian officials go to these summits and ask producers for incentives. It's a big change," she said. Some concessions are already coming. Iran has offered to increase a discount on freight prices to Indian state refiners to double its sales to the companies, which control about one-third of India's refining capacity. Saudi Aramco raised the credit limit for some Indian refiners last year so that they could lift more crude without providing explicit financial guarantees. India's footprint in global energy markets will increase "materially" from 2018 to 2040, making it the largest growth market for global energy, BP Plc said in its energy outlook report in February. Indian state oil executives say there is now a more balanced relationship with suppliers. "Our ties with key oil suppliers are moving towards collaboration level rather than just buyer-seller," said M. K. Surana, chairman of Hindustan Petroleum Corp. India last year began buying oil from the United States to cut its dependence on the Middle East, whose share of overall imports fell to 64.1 per cent in the fiscal year of 2016/17 from about 80 per cent in the 2007/08 fiscal year, government data showed. "America as an alternate source can give us better-negotiating power with the Middle East," R. Ramachandran, the head of refineries for Bharat Petroleum Corp Ltd, said.

How India plans to seek better bargains with global oil producers

The threat of a global trade war sent stock markets sliding and investors rushing for the safety of currencies like the yen and government bonds on Friday, after US&nbsp;President Donald Trump announced tariffs on up to $60 billion of Chinese goods.

World stocks, down 3.4 per cent since Monday, are on course for their worst week since early February, when a spike in volatility sent markets into a tailspin.

European stocks fell at the open, with Germany&#39;s Dax down 1.6 per cent, the French CAC 40 1.5 per cent lower and Britain&#39;s FTSE 100 0.8 per cent in the red.

That followed large falls in the US, with the S&amp;P 500 shedding 2.5 per cent, and overnight in Asia, where the Japanese Nikkei 225 was the biggest loser slumping 4.5 per cent.

Trump signed a presidential memorandum on Thursday that could impose tariffs on up to $60 billion of imports from China, although the measures have a 30-day consultation period.

China urged the United States to &quot;pull back from the brink&quot;, but investors fear Trump&#39;s tariffs are leading the world&#39;s two largest economies into a trade war with potentially dire consequences for the global economy.

China disclosed its own plans on Friday to impose tariffs on up to $3 billion of US&nbsp;imports in retaliation against the US&nbsp;tariffs on Chinese steel and aluminium products.

&quot;The equity markets are getting clobbered, which is not that surprising with fears of a trade war breaking out,&quot; said Paul Fage, a TD Securities emerging markets strategist.

With investors seeking out safer assets, many jumped into government bond markets in Europe and the United States.

US&nbsp;10-year Treasury yields, which fell almost 8 basis points on Thursday, were set for their biggest two-week fall since September. In Europe, benchmark issuer Germany&#39;s 10-year bond yield hovered close to 10-week lows struck a day earlier at around 0.52 per cent and was on track for its biggest two-week drop since August, down 13 basis points.

Many investors also turned to the yen, a currency likely to benefit from a full-fledged trade war. The Japanese currency gained 0.4 per cent against the dollar to 104.87 yen, the first time it has been below 105 since November 2016.

The Swiss franc, another currency bought in times of market uncertainty, rose 0.3 per cent versus the dollar, although it remained flat against the euro.

The dollar fell 0.2 per cent against a basket of currencies.

&quot;The FX market itself isn&#39;t sure, and its reaction to risk-off and lower bond yields across the board is to buy the yen and the Swiss franc,&quot; Kit Juckes, an FX strategist at Societe Generale, wrote in a daily note.

In commodity markets, oil prices recouped overnight losses after Saudi Arabia said that OPEC and Russian-led production curbs introduced in 2017 will need to be extended into 2019.

US&nbsp;crude futures were up 0.8 per cent at $64.79 per barrel after losing 1.3 per cent on Thursday and Brent gained 0.45 per&nbsp; cent to $69.22.

Safe-haven spot gold rose 1 per cent to $1,341 an ounce, highest since February 20.

Copper and iron prices both fell, as investors bet demand for the metals would suffer in a trade war.

Daniel Lockyer, senior fund manager at Hawksmoor Investment Management, said financial markets had got ahead of themselves and were failing to price in the risk a number of factors could trigger a sell-off.

&quot;It&#39;s not that we thought trade wars would cause the market to fall, it&#39;s that there was too much optimism priced into stock markets,&quot; he said.

The threat of a global trade war sent stock markets sliding and investors rushing for the safety of currencies like the yen and government bonds on Friday, after US President Donald Trump announced tariffs on up to $60 billion of Chinese goods

The threat of a global trade war sent stock markets sliding and investors rushing for the safety of currencies like the yen and government bonds on Friday, after US President Donald Trump announced tariffs on up to $60 billion of Chinese goods. World stocks, down 3.4 per cent since Monday, are on course for their worst week since early February, when a spike in volatility sent markets into a tailspin. European stocks fell at the open, with Germany's Dax down 1.6 per cent, the French CAC 40 1.5 per cent lower and Britain's FTSE 100 0.8 per cent in the red. That followed large falls in the US, with the S&P 500 shedding 2.5 per cent, and overnight in Asia, where the Japanese Nikkei 225 was the biggest loser slumping 4.5 per cent. Trump signed a presidential memorandum on Thursday that could impose tariffs on up to $60 billion of imports from China, although the measures have a 30-day consultation period. China urged the United States to "pull back from the brink", but investors fear Trump's tariffs are leading the world's two largest economies into a trade war with potentially dire consequences for the global economy. China disclosed its own plans on Friday to impose tariffs on up to $3 billion of US imports in retaliation against the US tariffs on Chinese steel and aluminium products. "The equity markets are getting clobbered, which is not that surprising with fears of a trade war breaking out," said Paul Fage, a TD Securities emerging markets strategist. With investors seeking out safer assets, many jumped into government bond markets in Europe and the United States. US 10-year Treasury yields, which fell almost 8 basis points on Thursday, were set for their biggest two-week fall since September. In Europe, benchmark issuer Germany's 10-year bond yield hovered close to 10-week lows struck a day earlier at around 0.52 per cent and was on track for its biggest two-week drop since August, down 13 basis points. Many investors also turned to the yen, a currency likely to benefit from a full-fledged trade war. The Japanese currency gained 0.4 per cent against the dollar to 104.87 yen, the first time it has been below 105 since November 2016. The Swiss franc, another currency bought in times of market uncertainty, rose 0.3 per cent versus the dollar, although it remained flat against the euro. The dollar fell 0.2 per cent against a basket of currencies. "The FX market itself isn't sure, and its reaction to risk-off and lower bond yields across the board is to buy the yen and the Swiss franc," Kit Juckes, an FX strategist at Societe Generale, wrote in a daily note. In commodity markets, oil prices recouped overnight losses after Saudi Arabia said that OPEC and Russian-led production curbs introduced in 2017 will need to be extended into 2019. US crude futures were up 0.8 per cent at $64.79 per barrel after losing 1.3 per cent on Thursday and Brent gained 0.45 per cent to $69.22. Safe-haven spot gold rose 1 per cent to $1,341 an ounce, highest since February 20. Copper and iron prices both fell, as investors bet demand for the metals would suffer in a trade war. Daniel Lockyer, senior fund manager at Hawksmoor Investment Management, said financial markets had got ahead of themselves and were failing to price in the risk a number of factors could trigger a sell-off. "It's not that we thought trade wars would cause the market to fall, it's that there was too much optimism priced into stock markets," he said.

Global stocks slide, yen jumps, as trade war fears grip markets

Oil markets edged up on Monday on the back of a drop in the number of US rigs drilling for more production and as the US economy continued to create jobs, which industry hopes will drive higher fuel demand.

US West Texas Intermediate (WTI) crude futures were at $62.10 a barrel at 0407 GMT, up 6 cents, or 0.1 per cent.

Brent crude futures were at $65.58 per barrel, up 9 cents, or 0.1 per cent, from their previous close.

&quot;A falling rig count and the strong employment data may have helped support prices,&quot; said William O&#39;Loughlin, investment analyst at Rivkin Securities.

The US economy added the biggest number of jobs in more than 1-1/2 years in February, with non-farm payrolls jumping by 313,000 jobs last month, the Labor Department said on Friday.

In oil markets, US energy companies last week cut oil rigs for the first time in almost two months, with drillers cutting back four rigs, to 796, Baker Hughes energy services firm said on Friday.

Despite the lower rig count, which is an early indicator of future output, activity remains much higher than a year ago when, when just 617 rigs were active, and most analysts expect US crude oil production, which has already risen by over a fifth since mid-2016, to 10.37 million barrels per day (bpd), to rise further.

That&#39;s more than top exporter Saudi Arabia producers and almost as much as Russia pumps out, at nearly 11 million bpd.

Singapore-based brokerage Phillip Futures said that the oil market &quot;will focus on OPEC and IEA (monthly) reports this week for a sensing on global demand/supply levels for crude oil&quot; and that &quot;items in focus will include OECD commercial stock levels, revision in global demand and supply for crude oil and OPEC&#39;s compliance on production levels&quot;.

The Organization of the Petroleum Exporting Countries (OPEC), together with a group of other producers led by Russia, has been withholding production since the start of 2017 to prop up prices.

The US economy continued to create jobs, which industry hopes will drive higher fuel demand

Oil markets edged up on Monday on the back of a drop in the number of US rigs drilling for more production and as the US economy continued to create jobs, which industry hopes will drive higher fuel demand. US West Texas Intermediate (WTI) crude futures were at $62.10 a barrel at 0407 GMT, up 6 cents, or 0.1 per cent. Brent crude futures were at $65.58 per barrel, up 9 cents, or 0.1 per cent, from their previous close. "A falling rig count and the strong employment data may have helped support prices," said William O'Loughlin, investment analyst at Rivkin Securities. The US economy added the biggest number of jobs in more than 1-1/2 years in February, with non-farm payrolls jumping by 313,000 jobs last month, the Labor Department said on Friday. In oil markets, US energy companies last week cut oil rigs for the first time in almost two months, with drillers cutting back four rigs, to 796, Baker Hughes energy services firm said on Friday. Despite the lower rig count, which is an early indicator of future output, activity remains much higher than a year ago when, when just 617 rigs were active, and most analysts expect US crude oil production, which has already risen by over a fifth since mid-2016, to 10.37 million barrels per day (bpd), to rise further. That's more than top exporter Saudi Arabia producers and almost as much as Russia pumps out, at nearly 11 million bpd. Singapore-based brokerage Phillip Futures said that the oil market "will focus on OPEC and IEA (monthly) reports this week for a sensing on global demand/supply levels for crude oil" and that "items in focus will include OECD commercial stock levels, revision in global demand and supply for crude oil and OPEC's compliance on production levels". The Organization of the Petroleum Exporting Countries (OPEC), together with a group of other producers led by Russia, has been withholding production since the start of 2017 to prop up prices.

Oil prices rise up on reduced US drilling, job market

Stock markets rallied in Asia on Tuesday as shock over Donald Trump`s controversial trade tariffs move gave way to hope that any measures will not be as bad as initially thought.

The tycoon sparked fears of a global trade war last week when he unveiled plans to slap levies on imports of steel and aluminum.

The news sent markets into a tailspin from Sydney to New York, with investors already on edge at the prospect of rising interest rates and the end of crisis-era central bank stimulus measures.

However, after another down day in Asia Monday, investors in New York rushed back as they bet that Trump would not push through with extreme protectionist policies.

&quot;Given the overwhelmingly negative response from industry leaders, international financial markets and even the furious backlash from loyal members of Trump`s administration, there is growing optimism that perhaps significant exemptions will be forthcoming,&quot; said Stephen Innes, head of Asia-Pacific trade at OANDA.

&quot;Investors remain guardedly optimistic.&quot;

However, he warned that &quot;expecting for cooler heads to prevail might be far too optimistic given that President Trump promoted reforms of US trade policies as a cornerstone of his election campaign, and it`s challenging to envision him backing down.&quot;

Trump campaigned on a protectionist &quot;America First&quot; platform, promising to pull out of global trade deals which he said were hurting US workers. All three main indexes on Wall Street rose between one and 1.4 per cent Monday and those gains filtered through to Asia on Tuesday.

Tokyo ended 1.8 per cent higher, with Kobe Steel up slightly ahead of a news conference in which its CEO Hiroya Kawasaki resigned following publication of a report by the firm that found staff, including executives, changed or falsified inspection data before shipping products.

Hong Kong jumped 1.9 per cent in the afternoon, while Sydney, Seoul, Singapore, and Taipei were all more than one per cent higher. Shanghai reversed early losses to close one per cent higher.

Attention will now turn to the release Friday of US jobs and wage growth data, which will give a fresh idea of the state of the world`s top economy.

Worries about rising wages fuelling inflation and pushing up interest rates sharply have spooked investors since the start of February.

Tuesday`s more upbeat tone helped the dollar against the yen, which had rallied on its safe-haven status. But the US unit slipped against the pound and euro.

The greenback also declined against high-yielding currencies, with the Australian dollar, Korean won and South African rand among the main winners.

Crude prices extended Monday`s gains on reports of easing US stockpiles and news of a halt at an oilfield in Libya.&nbsp;

Prices were also boosted by bullish comments from top energy producers meeting this week at an annual energy gathering in Houston, analysts said.

&quot;Oil prices were `talked up` from the sidelines of the CERAWeek Energy conference by OPEC,&quot; said Sukrit Vijayakar of Trifecta Consultants.

Officials at the conference are widely expected to address a global supply glut, with surging US shale production threatening to derail efforts by OPEC and Russia to stabilize prices by capping output.

 
Tokyo - Nikkei 225: UP 1.8 per cent at 21,417.76 (close)

 
Hong Kong - Hang Seng: UP 1.9 per cent at 30,451.71

 
Shanghai - Composite: UP 1.0 per cent at 3,289.64 (close)

 
Euro/dollar: UP at $1.2352 from $1.2335 at 2200 GMT

 
Pound/dollar: UP at $1.3850 from $1.3844

 
Dollar/yen: UP at 106.23 yen from 106.18 yen

 
Oil - West Texas Intermediate: UP 15 cents at $62.72 per barrel

 
Oil - Brent North Sea: UP 12 cents at $65.66

 
New York - Dow: UP 1.4 per cent at 24,874.76 (close)

 
London - FTSE 100: UP 0.7 per cent at 7,115.98 (close)

Stock markets rallied in Asia on Tuesday as shock over Donald Trump`s controversial trade tariffs move gave way to hope that any measures will not be as bad as initially thought

Stock markets rallied in Asia on Tuesday as shock over Donald Trump`s controversial trade tariffs move gave way to hope that any measures will not be as bad as initially thought. The tycoon sparked fears of a global trade war last week when he unveiled plans to slap levies on imports of steel and aluminum. The news sent markets into a tailspin from Sydney to New York, with investors already on edge at the prospect of rising interest rates and the end of crisis-era central bank stimulus measures. However, after another down day in Asia Monday, investors in New York rushed back as they bet that Trump would not push through with extreme protectionist policies. "Given the overwhelmingly negative response from industry leaders, international financial markets and even the furious backlash from loyal members of Trump`s administration, there is growing optimism that perhaps significant exemptions will be forthcoming," said Stephen Innes, head of Asia-Pacific trade at OANDA. "Investors remain guardedly optimistic." However, he warned that "expecting for cooler heads to prevail might be far too optimistic given that President Trump promoted reforms of US trade policies as a cornerstone of his election campaign, and it`s challenging to envision him backing down." Trump campaigned on a protectionist "America First" platform, promising to pull out of global trade deals which he said were hurting US workers. All three main indexes on Wall Street rose between one and 1.4 per cent Monday and those gains filtered through to Asia on Tuesday. Tokyo ended 1.8 per cent higher, with Kobe Steel up slightly ahead of a news conference in which its CEO Hiroya Kawasaki resigned following publication of a report by the firm that found staff, including executives, changed or falsified inspection data before shipping products. Hong Kong jumped 1.9 per cent in the afternoon, while Sydney, Seoul, Singapore, and Taipei were all more than one per cent higher. Shanghai reversed early losses to close one per cent higher. Attention will now turn to the release Friday of US jobs and wage growth data, which will give a fresh idea of the state of the world`s top economy. Worries about rising wages fuelling inflation and pushing up interest rates sharply have spooked investors since the start of February. Tuesday`s more upbeat tone helped the dollar against the yen, which had rallied on its safe-haven status. But the US unit slipped against the pound and euro. The greenback also declined against high-yielding currencies, with the Australian dollar, Korean won and South African rand among the main winners. Crude prices extended Monday`s gains on reports of easing US stockpiles and news of a halt at an oilfield in Libya. Prices were also boosted by bullish comments from top energy producers meeting this week at an annual energy gathering in Houston, analysts said. "Oil prices were `talked up` from the sidelines of the CERAWeek Energy conference by OPEC," said Sukrit Vijayakar of Trifecta Consultants. Officials at the conference are widely expected to address a global supply glut, with surging US shale production threatening to derail efforts by OPEC and Russia to stabilize prices by capping output. Tokyo - Nikkei 225: UP 1.8 per cent at 21,417.76 (close) Hong Kong - Hang Seng: UP 1.9 per cent at 30,451.71 Shanghai - Composite: UP 1.0 per cent at 3,289.64 (close) Euro/dollar: UP at $1.2352 from $1.2335 at 2200 GMT Pound/dollar: UP at $1.3850 from $1.3844 Dollar/yen: UP at 106.23 yen from 106.18 yen Oil - West Texas Intermediate: UP 15 cents at $62.72 per barrel Oil - Brent North Sea: UP 12 cents at $65.66 New York - Dow: UP 1.4 per cent at 24,874.76 (close) London - FTSE 100: UP 0.7 per cent at 7,115.98 (close)

Asian markets rally on hopes Trump will temper tariffs threat

Oil slipped to $66 a barrel on Friday, under pressure from concerns that rising US&nbsp;oil output and exports will offset OPEC-led attempts to erode stockpiles with output curbs.

US&nbsp;oil production last week was 10.27 million barrels per day, a record level if confirmed by monthly figures. Crude exports jumped to more than 2 million bpd, close to a record high of 2.1 million hit in October.

&quot;The US&nbsp;is pumping out a record amount of oil,&quot; said Naeem Aslam, chief market analyst at Think Markets UK Ltd.

&quot;The bull rally which we have seen for the black gold could fade away as the US&nbsp;oil production undermines the OPEC production cut commitments,&quot; he said.

Brent crude, the global benchmark, was down 34 cents at $66.05 at 0934 GMT. Prices had rallied in early 2018 and reached $71.28 on January 25, the highest since December 2014.

US&nbsp;crude fell 27 cents to $62.50.&nbsp;

Oil also slipped as the US&nbsp;dollar strengthened. A stronger dollar can make oil and other commodities denominated in the US&nbsp;currency more expensive for other currency holders.&nbsp;

The latest decline for crude came despite the US&nbsp;Energy Information Administration reporting on Wednesday that crude stocks fell unexpectedly by 1.6 million barrels. Analysts said low import figures contributed to the decline.

The Organization of the Petroleum Exporting Countries is not outwardly worried by rising in US&nbsp;output and says it is comfortable at the speed the market is moving towards balance.

&quot;I think the pace is excellent, the deal is working and we&#39;re very happy with it,&quot; United Arab Emirates Energy Minister Suhail al-Mazroui, the current OPEC president, told Reuters on Wednesday. &quot;But the job is not yet complete.&quot;

In January 2017, OPEC and allies including Russia began to cut production by about 1.8 million bpd, almost 2 percent of global supply, to get rid of a glut that had built up since 2014 and that led to a price collapse.

OPEC wants to reduce oil inventories held by industrialised nations to their five-year average and is getting closer to that goal, although officials are starting to talk about looking at different metrics.&nbsp;

&nbsp;

US oil production last week was 10.27 million barrels per day, a record level if confirmed by monthly figures

Oil slipped to $66 a barrel on Friday, under pressure from concerns that rising US oil output and exports will offset OPEC-led attempts to erode stockpiles with output curbs. US oil production last week was 10.27 million barrels per day, a record level if confirmed by monthly figures. Crude exports jumped to more than 2 million bpd, close to a record high of 2.1 million hit in October. "The US is pumping out a record amount of oil," said Naeem Aslam, chief market analyst at Think Markets UK Ltd. "The bull rally which we have seen for the black gold could fade away as the US oil production undermines the OPEC production cut commitments," he said. Brent crude, the global benchmark, was down 34 cents at $66.05 at 0934 GMT. Prices had rallied in early 2018 and reached $71.28 on January 25, the highest since December 2014. US crude fell 27 cents to $62.50. Oil also slipped as the US dollar strengthened. A stronger dollar can make oil and other commodities denominated in the US currency more expensive for other currency holders. The latest decline for crude came despite the US Energy Information Administration reporting on Wednesday that crude stocks fell unexpectedly by 1.6 million barrels. Analysts said low import figures contributed to the decline. The Organization of the Petroleum Exporting Countries is not outwardly worried by rising in US output and says it is comfortable at the speed the market is moving towards balance. "I think the pace is excellent, the deal is working and we're very happy with it," United Arab Emirates Energy Minister Suhail al-Mazroui, the current OPEC president, told Reuters on Wednesday. "But the job is not yet complete." In January 2017, OPEC and allies including Russia began to cut production by about 1.8 million bpd, almost 2 percent of global supply, to get rid of a glut that had built up since 2014 and that led to a price collapse. OPEC wants to reduce oil inventories held by industrialised nations to their five-year average and is getting closer to that goal, although officials are starting to talk about looking at different metrics.

Oil slips to $66 a barrel as US output offsets OPEC curbs

OPEC agreed on Thursday to extend oil output cuts until the end of 2018 as it tries to finish clearing a global glut of crude while signalling it could exit the deal earlier if the market overheats.

Non-OPEC Russia, which this year reduced production significantly with OPEC for the first time, has been pushing for a clear message on how to exit the cuts so the market doesn&#39;t flip into a deficit too soon, prices don&#39;t rally too fast and rival U.S. shale firms don&#39;t boost output further.

The producers&#39; current deal, under which they are cutting supply by about 1.8 million barrels per day (bpd) in an effort to boost oil prices, expires in March.

Two OPEC delegates told Reuters the group had agreed to extend the cuts by nine months until the end of 2018, as largely anticipated by the market.

OPEC also decided to cap the output of Nigeria at around 1.8 million bpd but had yet to agree a cap for Libya. Both countries have been previously exempt from cuts due to unrest and lower-than-normal production.

The Organization of the Petroleum Exporting Countries has yet to meet with non-OPEC producers led by Russia, with the meeting scheduled to begin after 1500 GMT.

Before the earlier, OPEC-only meeting started at the group&#39;s headquarters in Vienna on Thursday, Saudi Energy Minister Khalid al-Falih said it was premature to talk about exiting the cuts at least for a couple of quarters and added that the group would examine progress at its next meeting in June.

&quot;When we get to an exit, we are going to do it very gradually ... to make sure we don&rsquo;t shock the market,&quot; he said.

The Iraqi, Iranian and Angolan oil ministers also said a review of the deal was possible in June in case the market became too tight.

International benchmark Brent crude rose more than 1 percent on Thursday to trade near $64 per barrel.

Capping Nigeria, Libya&nbsp;

With oil prices rising above $60, Russia has expressed concerns that such an extension could prompt a spike in crude production in the United States, which is not participating in the deal.

Russia needs much lower oil prices to balance its budget than OPEC&#39;s leader Saudi Arabia, which is preparing a stock market listing for national energy champion Aramco next year and would hence benefit from pricier crude.

&quot;Prices will be well supported in December with a large global stock draw. The market could surprise to the upside with even $70 per barrel for Brent not out of the question if there is an unexpected interruption in supply,&quot; said Gary Ross, a veteran OPEC watcher and founder of Pira consultancy.

The production cuts have been in place since the start of 2017 and helped halve an excess of global oil stocks although those remain at 140 million barrels above the five-year average, according to OPEC.

Russia has signalled it wants to understand better how producers will exit from the cuts as it needs to provide guidance to its private and state energy companies.

&quot;It is important ... to work out a strategy which we will follow from April 2018,&quot; Russian Energy Minister Alexander Novak said on Wednesday.

OPEC also decided to cap the output of Nigeria at around 1.8 million bpd but had yet to agree a cap for Libya. Both countries have been previously exempt from cuts due to unrest and lower-than-normal production.

OPEC agreed on Thursday to extend oil output cuts until the end of 2018 as it tries to finish clearing a global glut of crude while signalling it could exit the deal earlier if the market overheats. Non-OPEC Russia, which this year reduced production significantly with OPEC for the first time, has been pushing for a clear message on how to exit the cuts so the market doesn't flip into a deficit too soon, prices don't rally too fast and rival U.S. shale firms don't boost output further. The producers' current deal, under which they are cutting supply by about 1.8 million barrels per day (bpd) in an effort to boost oil prices, expires in March. Two OPEC delegates told Reuters the group had agreed to extend the cuts by nine months until the end of 2018, as largely anticipated by the market. OPEC also decided to cap the output of Nigeria at around 1.8 million bpd but had yet to agree a cap for Libya. Both countries have been previously exempt from cuts due to unrest and lower-than-normal production. The Organization of the Petroleum Exporting Countries has yet to meet with non-OPEC producers led by Russia, with the meeting scheduled to begin after 1500 GMT. Before the earlier, OPEC-only meeting started at the group's headquarters in Vienna on Thursday, Saudi Energy Minister Khalid al-Falih said it was premature to talk about exiting the cuts at least for a couple of quarters and added that the group would examine progress at its next meeting in June. "When we get to an exit, we are going to do it very gradually ... to make sure we don’t shock the market," he said. The Iraqi, Iranian and Angolan oil ministers also said a review of the deal was possible in June in case the market became too tight. International benchmark Brent crude rose more than 1 percent on Thursday to trade near $64 per barrel. Capping Nigeria, Libya With oil prices rising above $60, Russia has expressed concerns that such an extension could prompt a spike in crude production in the United States, which is not participating in the deal. Russia needs much lower oil prices to balance its budget than OPEC's leader Saudi Arabia, which is preparing a stock market listing for national energy champion Aramco next year and would hence benefit from pricier crude. "Prices will be well supported in December with a large global stock draw. The market could surprise to the upside with even $70 per barrel for Brent not out of the question if there is an unexpected interruption in supply," said Gary Ross, a veteran OPEC watcher and founder of Pira consultancy. The production cuts have been in place since the start of 2017 and helped halve an excess of global oil stocks although those remain at 140 million barrels above the five-year average, according to OPEC. Russia has signalled it wants to understand better how producers will exit from the cuts as it needs to provide guidance to its private and state energy companies. "It is important ... to work out a strategy which we will follow from April 2018," Russian Energy Minister Alexander Novak said on Wednesday.

OPEC agrees oil cut extension to end of 2018

<a href="http://www.wionews.com/world/saudi-arabia-bahrain-egypt-uae-cut-diplomatic-ties-with-qatar-16432">Bahrain</a>&rsquo;s oil minister, Sheikh Mohammed bin Khalifa al-Khalifa, said on Tuesday he sees no reason why the supply cut agreement between oil producing countries should not be extended on Nov. 30.

He was speaking to reporters in <a href="http://www.wionews.com/world/watch-macron-guest-of-honour-at-louvre-abu-dhabi-opening-23831">Abu Dhabi</a> on the sidelines of an energy conference.

<a href="http://www.wionews.com/business-economy/opec-countries-agree-to-first-production-cut-in-8-years-9567">OPEC</a> and other <a href="http://www.wionews.com/world/non-opec-oil-states-agree-to-cuts-in-historic-deal-9993">non-OPEC producers</a> will meet on Nov. 30 in <a href="http://www.wionews.com/world/in-vienna-its-the-homeless-whore-city-guides-11304">Vienna</a> to decide on oil output policy.

OPEC and other non-OPEC producers will meet on Nov. 30 in Vienna to decide on oil output policy

Bahrain’s oil minister, Sheikh Mohammed bin Khalifa al-Khalifa, said on Tuesday he sees no reason why the supply cut agreement between oil producing countries should not be extended on Nov. 30. He was speaking to reporters in Abu Dhabi on the sidelines of an energy conference. OPEC and other non-OPEC producers will meet on Nov. 30 in Vienna to decide on oil output policy.

No reason not to extend oil cuts agreement: Bahrain oil minister

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

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

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

Oil prices slip over Libyan production, OPEC cuts

Oil prices slipped on Monday as further increases in US drilling activity undercut an OPEC-led push to tighten supply.

Trading was subdued due to public holidays in China, the United States and Britain, but concerns lingered over whether OPEC action would be enough to stem the tide of oversupply.

Brent crude futures were trading down 15 cents at $51.98 per barrel at 11:15 GMT. The contract ended the previous week down nearly 3 per cent.

US West Texas Intermediate (WTI) crude futures were also down 17 cents at $49.63 per barrel.

The Organization of the Petroleum Exporting Countries and some non-OPEC producers pledged last week to extend production cuts of around 1.8 million barrels per day (bpd) until March 2018.

An initial agreement, in place since January, would have expired in June this year.

Commerzbank analyst Carsten Fritsch called Monday&#39;s price moves little more than &quot;intraday noise&quot; but said hints of deeper cuts or a longer extension from OPEC left the market deflated after the final decision.

&quot;They increased expectations to such an extent that nine months was a disappointment,&quot; Fritsch said.

High compliance with the cuts so far was unlikely to last, he said, adding to worries about whether the pledge would dent physical oil stockpiles that remain near record levels.

&quot;The pain for OPEC will increase to such a point that 100 per cent compliance is unrealistic,&quot; Fritsch said.

Despite ongoing cuts, oil prices have not risen much beyond $50 per barrel.

OPEC&#39;s success in drawing down inventories may hinge on output in the United States, which is not participating in the cuts. US production has soared 10 per cent since mid-2016 to more than 9.3 million bpd, close to top producer levels Russia and Saudi Arabia.

US drillers have added rigs for 19 straight weeks, bringing the total 722, the highest number since April 2015 and the longest run of additions on record, according to energy services firm Baker Hughes Inc.

Almost all of the recent US output increases have been onshore, from so-called shale oil fields.

Even if the rig count did not rise further, Goldman Sachs said it estimated US output would increase by 785,000 bpd between the fourth quarter of 2016 and the fourth quarter of 2017 across the Permian, Eagle Ford, Bakken and Niobrara shale plays.

Analysts say that reducing bloated global stocks will be key to reining in oversupply.

&quot;It&#39;s going to be all about inventories and whether they fall as much as OPEC thinks,&quot; said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

(Reuters)

The OPEC and some non-OPEC producers pledged last week to extend production cuts of around 1.8 million barrels per day (bpd) until March 2018

Oil prices slipped on Monday as further increases in US drilling activity undercut an OPEC-led push to tighten supply. Trading was subdued due to public holidays in China, the United States and Britain, but concerns lingered over whether OPEC action would be enough to stem the tide of oversupply. Brent crude futures were trading down 15 cents at $51.98 per barrel at 11:15 GMT. The contract ended the previous week down nearly 3 per cent. US West Texas Intermediate (WTI) crude futures were also down 17 cents at $49.63 per barrel. The Organization of the Petroleum Exporting Countries and some non-OPEC producers pledged last week to extend production cuts of around 1.8 million barrels per day (bpd) until March 2018. An initial agreement, in place since January, would have expired in June this year. Commerzbank analyst Carsten Fritsch called Monday's price moves little more than "intraday noise" but said hints of deeper cuts or a longer extension from OPEC left the market deflated after the final decision. "They increased expectations to such an extent that nine months was a disappointment," Fritsch said. High compliance with the cuts so far was unlikely to last, he said, adding to worries about whether the pledge would dent physical oil stockpiles that remain near record levels. "The pain for OPEC will increase to such a point that 100 per cent compliance is unrealistic," Fritsch said. Despite ongoing cuts, oil prices have not risen much beyond $50 per barrel. OPEC's success in drawing down inventories may hinge on output in the United States, which is not participating in the cuts. US production has soared 10 per cent since mid-2016 to more than 9.3 million bpd, close to top producer levels Russia and Saudi Arabia. US drillers have added rigs for 19 straight weeks, bringing the total 722, the highest number since April 2015 and the longest run of additions on record, according to energy services firm Baker Hughes Inc. Almost all of the recent US output increases have been onshore, from so-called shale oil fields. Even if the rig count did not rise further, Goldman Sachs said it estimated US output would increase by 785,000 bpd between the fourth quarter of 2016 and the fourth quarter of 2017 across the Permian, Eagle Ford, Bakken and Niobrara shale plays. Analysts say that reducing bloated global stocks will be key to reining in oversupply. "It's going to be all about inventories and whether they fall as much as OPEC thinks," said Greg McKenna, chief market strategist at futures brokerage AxiTrader. (Reuters)

Oil prices slip as US drilling undermines OPEC-led production cut

Oil extended falls on Friday after tumbling in the previous session when OPEC and allied producers extended output cuts but disappointed investors betting on longer or larger supply curbs.

At Thursday&#39;s meeting in Vienna, the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers agreed to extend a pledge to cut around 1.8 million barrels per day (bpd) until the end of the first quarter of 2018. The initial agreement would have expired in June this year.

Crude oil plunged 5 per cent following the announcement, and held its losses early on Friday.

Brent crude futures were at $51.26 per barrel at 0500 GMT, down 20 cents, or 0.4 per cent, from their last close.

US&nbsp;West Texas Intermediate (WTI) crude futures were back below $50, at $48.61, down 29 cents, or 0.6 per cent.

&quot;With Russia and Saudi announcing nine months (of extended cuts) a week before, this was already priced in, so the market wanted the &quot;over-and-above&quot; which didn&#39;t come &ndash; hence the sell-off,&quot; said Virendra Chauhan, oil analyst at Energy Aspects in Singapore, referring to a statement by Saudi Arabia and Russia earlier in May that a none months extension to the cut was needed.

Britain&#39;s Barclays bank said the ongoing production cut would result in a drawdown of bloated fuel inventories, but added that OPEC&#39;s goal of bringing stocks down to their five-year average would not be reached within the timeframe of the production cut.

Other analysts, including at Goldman Sachs and Jefferies bank said a normalisation of oil inventories could occur in early 2018.

Analysts also said that the OPEC-led production cuts would support a further rise in US&nbsp;output.

Ann-Louise Hittle, vice president at energy consultancy Wood Mackenzie said that the &quot;decision in Vienna sends a signal of continued support for oil prices from OPEC which helps US&nbsp;onshore drillers make plans&quot; to further increase their production.

US&nbsp;oil production has already risen by 10 per cent since mid-2016 to over 9.3 million bpd, close to the output of top producers Russia and Saudi Arabia.

&quot;OPEC agreeing to nine months without deeper cuts leaves prices at the mercy of inventories and US&nbsp;production and demand,&quot; said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

Goldman Sachs warned that the biggest risk to oil markets was what would happen next year, at the end of the OPEC-led production cut.

With US&nbsp;output rising steadily and OPEC and its allies potentially ramping up production in 2018 to regain lost market share, many traders are already expect another price slump.

(Reuters)

Crude oil plunged 5 per cent following the announcement

Oil extended falls on Friday after tumbling in the previous session when OPEC and allied producers extended output cuts but disappointed investors betting on longer or larger supply curbs. At Thursday's meeting in Vienna, the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers agreed to extend a pledge to cut around 1.8 million barrels per day (bpd) until the end of the first quarter of 2018. The initial agreement would have expired in June this year. Crude oil plunged 5 per cent following the announcement, and held its losses early on Friday. Brent crude futures were at $51.26 per barrel at 0500 GMT, down 20 cents, or 0.4 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were back below $50, at $48.61, down 29 cents, or 0.6 per cent. "With Russia and Saudi announcing nine months (of extended cuts) a week before, this was already priced in, so the market wanted the "over-and-above" which didn't come – hence the sell-off," said Virendra Chauhan, oil analyst at Energy Aspects in Singapore, referring to a statement by Saudi Arabia and Russia earlier in May that a none months extension to the cut was needed. Britain's Barclays bank said the ongoing production cut would result in a drawdown of bloated fuel inventories, but added that OPEC's goal of bringing stocks down to their five-year average would not be reached within the timeframe of the production cut. Other analysts, including at Goldman Sachs and Jefferies bank said a normalisation of oil inventories could occur in early 2018. Analysts also said that the OPEC-led production cuts would support a further rise in US output. Ann-Louise Hittle, vice president at energy consultancy Wood Mackenzie said that the "decision in Vienna sends a signal of continued support for oil prices from OPEC which helps US onshore drillers make plans" to further increase their production. US oil production has already risen by 10 per cent since mid-2016 to over 9.3 million bpd, close to the output of top producers Russia and Saudi Arabia. "OPEC agreeing to nine months without deeper cuts leaves prices at the mercy of inventories and US production and demand," said Greg McKenna, chief market strategist at futures brokerage AxiTrader. Goldman Sachs warned that the biggest risk to oil markets was what would happen next year, at the end of the OPEC-led production cut. With US output rising steadily and OPEC and its allies potentially ramping up production in 2018 to regain lost market share, many traders are already expect another price slump. (Reuters)

Oil drops after OPEC-led output cut extension falls below expectations

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

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

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

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

Oil prices rose slightly after reports Saudi Arabia had started talks with customers about a reduction of up to 7 per cent in crude sales in February to support an attempt by OPEC to reduce global supply.

The Organization of the Petroleum Exporting Countries (OPEC) promised in November to cut output to help prop up prices.&nbsp;Under the deal, Saudi Arabia agreed to cut output by 486,000 barrels per day (bpd), or 4.61 per cent of its October output of 10.544 million bpd.

&quot;Aramco (Saudi Arabia&#39;s state oil company)&nbsp;is approaching all its customers for possible cuts from February and discussing likely (supply) scenarios,&quot; a source said. &quot;Nothing is confirmed yet,&quot; the source said, adding the scenarios were for cuts of 3-7 per cent.

Investors have been suspicious that OPEC may not cut as much as promised, but several sources have expressed&nbsp;that they believe&nbsp;the world&#39;s biggest oil exporter would comply with the OPEC cuts.

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<h5>&quot;There remains a question mark over whether OPEC, with a long history of non-compliance, will actually follow through with the cuts. Very few respondents expect full compliance,&quot; Singapore Exchange (SGX) said, citing results from a survey.</h5>
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Benchmark Brent crude oil was up 20 cents a barrel at $56.66 in mid-day trade.&nbsp;US light crude oil was up 20 cents a barrel at $53.46.&nbsp;

&quot;There remains a question mark over whether OPEC, with a long history of non-compliance, will actually follow through with the cuts. Very few respondents expect full compliance,&quot; Singapore Exchange (SGX) said, citing results from a survey. &quot;Three-quarters of those surveyed went for crude&nbsp;prices averaging within the current $50-$60 a barrel range for 2017,&quot; SGX added.

Analysts at US bank Goldman Sachs&nbsp;said even if OPEC reduced production as promised, there was &quot;only moderate oil spot price upside given the expected supply response to higher oil prices and new production&quot;.

The US bank said it expected Brent prices to peak at $59 a barrel by mid-2017.

In another sign of compliance with the cuts, Abu Dhabi National Oil Company&nbsp;has scheduled maintenance at oilfields for March and April, although it was not immediately clear how much exports might fall.

(Reuters)

Saudi Arabia is mulling over a 7% cut in oil prices, but some analysts fear they will not follow through

Oil prices rose slightly after reports Saudi Arabia had started talks with customers about a reduction of up to 7 per cent in crude sales in February to support an attempt by OPEC to reduce global supply. The Organization of the Petroleum Exporting Countries (OPEC) promised in November to cut output to help prop up prices. Under the deal, Saudi Arabia agreed to cut output by 486,000 barrels per day (bpd), or 4.61 per cent of its October output of 10.544 million bpd. "Aramco (Saudi Arabia's state oil company) is approaching all its customers for possible cuts from February and discussing likely (supply) scenarios," a source said. "Nothing is confirmed yet," the source said, adding the scenarios were for cuts of 3-7 per cent. Investors have been suspicious that OPEC may not cut as much as promised, but several sources have expressed that they believe the world's biggest oil exporter would comply with the OPEC cuts. "There remains a question mark over whether OPEC, with a long history of non-compliance, will actually follow through with the cuts. Very few respondents expect full compliance," Singapore Exchange (SGX) said, citing results from a survey. × Benchmark Brent crude oil was up 20 cents a barrel at $56.66 in mid-day trade. US light crude oil was up 20 cents a barrel at $53.46. "There remains a question mark over whether OPEC, with a long history of non-compliance, will actually follow through with the cuts. Very few respondents expect full compliance," Singapore Exchange (SGX) said, citing results from a survey. "Three-quarters of those surveyed went for crude prices averaging within the current $50-$60 a barrel range for 2017," SGX added. Analysts at US bank Goldman Sachs said even if OPEC reduced production as promised, there was "only moderate oil spot price upside given the expected supply response to higher oil prices and new production". The US bank said it expected Brent prices to peak at $59 a barrel by mid-2017. In another sign of compliance with the cuts, Abu Dhabi National Oil Company has scheduled maintenance at oilfields for March and April, although it was not immediately clear how much exports might fall. (Reuters)

Oil prices rise as Saudi Arabia eyes supply cut

Eleven countries agreed on Saturday to cut their oil output, teaming up with the OPEC cartel in an exceptional bid to end the world`s glut of crude and reverse a dramatic fall in income.

Russia and 10 other non-OPEC states will reduce their production by more than half a million barrels per day (bpd), OPEC announced.

The deal will take effect from the start of 2017 and last for six months, though it may be extended depending on market conditions.

&quot;I am happy to announce that a historic agreement has been reached,&quot; said Qatar`s Energy Minister Mohammed Bin Saleh Al-Sada, whose country holds the rotating presidency of the Organization of the Petroleum Exporting Countries (OPEC).

The cut will contribute to OPEC`s own initiative to ease a saturated market and end a price slump that has brutally affected the economies of many oil producers.

On November 30 its members announced a slash in output by 1.2 million barrels per day (bpd) beginning in January, to 32.5 million bpd.

Under that deal, OPEC called on non-member producer states to lower their output by 600,000 bpd. Saturday`s deal approves cuts totalling 558,000 bpd.&nbsp;

Russia had already signalled it would provide half of that production cut in the first half of 2017.

Among the other countries that will contribute cuts Kazakhstan agreed to reduce production by 20,000 bpd, Mexico 100,000 bpd,

Oman 40,000 bpd and Azerbaijan 35,000 bpd, according to Bloomberg.

The deal also includes Malaysia, Bahrain, Equatorial Guinea, Sudan, South Sudan and Brunei.

&quot;This is a truly historic event, the first time that so many oil-producing countries are meeting in one room, to accomplish what we`ve done,&quot; Russian Energy Minister Alexander Novak told a press conference.

&quot;In the room we had more than half of the global oil&quot; production, he said.

In a statement following the meeting, OPEC said the other oil giants were working &quot;to achieve oil market stability in the interest of all oil producers and consumers&quot;.

A monitoring committee, comprising three OPEC and two non-OPEC members, will now be set up.

Sada said OPEC would continue its efforts to persuade non-OPEC producers to join the reduction effort.

And in another signal to the markets, the cartel`s leading producer Saudi Arabia announced that it would go &quot;substantially&quot; beyond its commitment of production cuts made last week.In a speech to the conference earlier, Novak stressed the plunge in oil prices had led to &quot;severe consequences&quot;.

&quot;What the past two months have shown is that there is a growing consensus among producers that the market recovery process has taken far too long... It has had a major impact on all our countries, in terms of economic growth, heavy losses in revenue and deep social spending cuts.&quot;

As for the impact on consumers, he said: &quot;We only have to look at the damaging levels of deflation in some OECD countries, as well as the record low interest rates, sometimes in negative territory in real terms, which is partly attributed to lower oil prices.&quot;

Oil prices had climbed Friday as hopes grew of a deal. In late European business, West Texas Intermediate (WTI) crude stood at $51.44, 60 cents up on the day, while Brent rose 20 cents to $54.09.

The November agreement ended weeks of uncertainty and volatility on crude markets, pushing prices above $50 for the first time in a month.

It also represented a dramatic reversal from OPEC`s Saudi-led game plan, introduced in 2014, of flooding the market to force out rivals, in particular US shale oil producers.

The strategy saw production outstrip demand, causing prices to plunge from more than $100 a barrel in June 2014 to near 13-year lows below $30 earlier this year.

OPEC produces around 40 percent of the world`s crude so needed non-OPEC members to join the cuts to drain current stockpiles. 
But Bloomberg calculations, based on OPEC data, indicated there would be little overall reduction in record oil inventories in 2017 -- even if OPEC could convince non-members to come on board.

(AFP)

Russia and 10 other non-OPEC states will reduce their production by more than half a million barrels per day, OPEC said

Eleven countries agreed on Saturday to cut their oil output, teaming up with the OPEC cartel in an exceptional bid to end the world`s glut of crude and reverse a dramatic fall in income. Russia and 10 other non-OPEC states will reduce their production by more than half a million barrels per day (bpd), OPEC announced. The deal will take effect from the start of 2017 and last for six months, though it may be extended depending on market conditions. "I am happy to announce that a historic agreement has been reached," said Qatar`s Energy Minister Mohammed Bin Saleh Al-Sada, whose country holds the rotating presidency of the Organization of the Petroleum Exporting Countries (OPEC). The cut will contribute to OPEC`s own initiative to ease a saturated market and end a price slump that has brutally affected the economies of many oil producers. On November 30 its members announced a slash in output by 1.2 million barrels per day (bpd) beginning in January, to 32.5 million bpd. Under that deal, OPEC called on non-member producer states to lower their output by 600,000 bpd. Saturday`s deal approves cuts totalling 558,000 bpd. Russia had already signalled it would provide half of that production cut in the first half of 2017. Among the other countries that will contribute cuts Kazakhstan agreed to reduce production by 20,000 bpd, Mexico 100,000 bpd, Oman 40,000 bpd and Azerbaijan 35,000 bpd, according to Bloomberg. The deal also includes Malaysia, Bahrain, Equatorial Guinea, Sudan, South Sudan and Brunei. "This is a truly historic event, the first time that so many oil-producing countries are meeting in one room, to accomplish what we`ve done," Russian Energy Minister Alexander Novak told a press conference. "In the room we had more than half of the global oil" production, he said. In a statement following the meeting, OPEC said the other oil giants were working "to achieve oil market stability in the interest of all oil producers and consumers". A monitoring committee, comprising three OPEC and two non-OPEC members, will now be set up. Sada said OPEC would continue its efforts to persuade non-OPEC producers to join the reduction effort. And in another signal to the markets, the cartel`s leading producer Saudi Arabia announced that it would go "substantially" beyond its commitment of production cuts made last week.In a speech to the conference earlier, Novak stressed the plunge in oil prices had led to "severe consequences". "What the past two months have shown is that there is a growing consensus among producers that the market recovery process has taken far too long... It has had a major impact on all our countries, in terms of economic growth, heavy losses in revenue and deep social spending cuts." As for the impact on consumers, he said: "We only have to look at the damaging levels of deflation in some OECD countries, as well as the record low interest rates, sometimes in negative territory in real terms, which is partly attributed to lower oil prices." Oil prices had climbed Friday as hopes grew of a deal. In late European business, West Texas Intermediate (WTI) crude stood at $51.44, 60 cents up on the day, while Brent rose 20 cents to $54.09. The November agreement ended weeks of uncertainty and volatility on crude markets, pushing prices above $50 for the first time in a month. It also represented a dramatic reversal from OPEC`s Saudi-led game plan, introduced in 2014, of flooding the market to force out rivals, in particular US shale oil producers. The strategy saw production outstrip demand, causing prices to plunge from more than $100 a barrel in June 2014 to near 13-year lows below $30 earlier this year. OPEC produces around 40 percent of the world`s crude so needed non-OPEC members to join the cuts to drain current stockpiles. But Bloomberg calculations, based on OPEC data, indicated there would be little overall reduction in record oil inventories in 2017 -- even if OPEC could convince non-members to come on board. (AFP)

Non-OPEC oil states agree to cuts in 'historic' deal

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