OPEC+ confirmed on Sunday that it will prolong its significant oil supply cutbacks well into 2025. The decision comes as a coalition of oil-producing nations seeks to stabilise the market in the face of slow demand growth, rising interest rates, and increased competition from US producers. Brent crude oil prices are currently around $80 per barrel, which is insufficient to balance many OPEC+ nations' budgets.<o:p></o:p>

Deep cuts to persist amid market pressures<o:p></o:p>

The Organisation of Petroleum Exporting Countries and its allies, led by Russia, known collectively as OPEC+, are sustaining severe output cutbacks implemented in late 2022. The group, which accounts for a significant portion of world oil supply, is now reducing output by 5.86 million barrels per day (bpd), which equates to approximately 5.7 per cent of total demand. These cutbacks include 3.66 million bpd, which is expected to expire at the end of 2024, as well as an extra 2.2 million bpd of voluntary reduction by eight members, which will expire in June 2024.<o:p></o:p>

OPEC+ has resolved to extend the 3.66 million bpd cuts until the end of 2025, as well as the voluntary reduction of 2.2 million bpd until September 2024. The latter will be phased out progressively between October 2024 and September 2025.<o:p></o:p>

Challenges and strategic adjustments<o:p></o:p>

Saudi Energy Minister Prince Abdulaziz bin Salman emphasised the importance of patience, saying, "We are waiting for interest rates to fall and a better path for economic growth...not pockets of growth here and there." OPEC expects demand for its crude to average 43.65 million bpd in the second half of 2024, implying a stock depletion if production maintains at the April rate of 41.02 million bpd. However, this drawdown will decrease as voluntary reductions are phased out beginning in October.<o:p></o:p>

The International Energy Agency (IEA), which represents major consumers, predicts that demand for OPEC+ oil will fall to 41.9 million barrels per day in 2024. According to Amrita Sen, co-founder of Energy Aspects, "The deal should allay market fears of OPEC+ adding back barrels at a time when demand concerns are still rife."<o:p></o:p>

Negotiations and new production targets<o:p></o:p>

In an unexpected turn of events, OPEC+ postponed negotiations on each member's specific capacity targets until November 2025. The UAE, which has lobbied for a greater production quota, has achieved a new objective that allows it to increase output by 0.3 million bpd from its existing 2.9 million bpd.<o:p></o:p>

The deal's complexity necessitated substantial preparation, with Prince Abdulaziz conducting conversations behind the scenes. Even though most discussions are held online, certain key ministers convened in Riyadh on Sunday. Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia, Saudi Arabia, and the United Arab Emirates are among the nations making voluntary reductions.<o:p></o:p>

Looking Ahead<o:p></o:p>

This accord, reached in less than four hours of negotiations on Sunday, demonstrates the group's unity and strategic acumen. Prince Abdulaziz's leadership was critical in securing this agreement, which attempts to calm markets and maintain stability in the face of global economic uncertainty. The next OPEC+ meeting is set for December 1, 2024.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

OPEC+ confirmed on Sunday that it will prolong its significant oil supply cutbacks well into 2025. The decision comes as a coalition of oil-producing nations seeks to stabilise the market in the face of slow demand growth, rising interest rates, and increased competition from US producers.

OPEC+ confirmed on Sunday that it will prolong its significant oil supply cutbacks well into 2025. The decision comes as a coalition of oil-producing nations seeks to stabilise the market in the face of slow demand growth, rising interest rates, and increased competition from US producers. Brent crude oil prices are currently around $80 per barrel, which is insufficient to balance many OPEC+ nations' budgets. Deep cuts to persist amid market pressures The Organisation of Petroleum Exporting Countries and its allies, led by Russia, known collectively as OPEC+, are sustaining severe output cutbacks implemented in late 2022. The group, which accounts for a significant portion of world oil supply, is now reducing output by 5.86 million barrels per day (bpd), which equates to approximately 5.7 per cent of total demand. These cutbacks include 3.66 million bpd, which is expected to expire at the end of 2024, as well as an extra 2.2 million bpd of voluntary reduction by eight members, which will expire in June 2024. OPEC+ has resolved to extend the 3.66 million bpd cuts until the end of 2025, as well as the voluntary reduction of 2.2 million bpd until September 2024. The latter will be phased out progressively between October 2024 and September 2025. Challenges and strategic adjustments Saudi Energy Minister Prince Abdulaziz bin Salman emphasised the importance of patience, saying, "We are waiting for interest rates to fall and a better path for economic growth...not pockets of growth here and there." OPEC expects demand for its crude to average 43.65 million bpd in the second half of 2024, implying a stock depletion if production maintains at the April rate of 41.02 million bpd. However, this drawdown will decrease as voluntary reductions are phased out beginning in October. The International Energy Agency (IEA), which represents major consumers, predicts that demand for OPEC+ oil will fall to 41.9 million barrels per day in 2024. According to Amrita Sen, co-founder of Energy Aspects, "The deal should allay market fears of OPEC+ adding back barrels at a time when demand concerns are still rife." Negotiations and new production targets In an unexpected turn of events, OPEC+ postponed negotiations on each member's specific capacity targets until November 2025. The UAE, which has lobbied for a greater production quota, has achieved a new objective that allows it to increase output by 0.3 million bpd from its existing 2.9 million bpd. The deal's complexity necessitated substantial preparation, with Prince Abdulaziz conducting conversations behind the scenes. Even though most discussions are held online, certain key ministers convened in Riyadh on Sunday. Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia, Saudi Arabia, and the United Arab Emirates are among the nations making voluntary reductions. Looking Ahead This accord, reached in less than four hours of negotiations on Sunday, demonstrates the group's unity and strategic acumen. Prince Abdulaziz's leadership was critical in securing this agreement, which attempts to calm markets and maintain stability in the face of global economic uncertainty. The next OPEC+ meeting is set for December 1, 2024. (With inputs from Reuters)

OPEC+ extends deep oil output cuts into 2025 amid market uncertainties

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

OPEC+ extends deep oil output cuts into 2024 & 2025

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

OPEC to extend supply cuts into the second half of 2024

OPEC+, the group of 22-nation oil producing countries, is facing a dilemma. How much oil is too much oil? This question signifies the group's efforts to stabilise the oil market amid the geopolitical uncertainties.

Several OPEC members seek level upgrade to pump more oil in 2025

The United Arab Emirates' state-owned oil giant, ADNOC, has announced an increase in its production capacity to 4.85 million barrels per day. This comes just a month before a crucial OPEC meeting in June, where member nations will decide on production levels for the second half of 2024.

UAE boosts oil production capacity ahead of OPEC+ meeting

The organisation of Petroleum Exporting Countries' (OPEC) crude production stayed steady in April, leaving the group's latest cutback plan incomplete.

OPEC group pumps less oil in April than the previous month

The International Monetary Fund predicts that Saudi Arabia will require a higher oil price than initially anticipated this year. The initiative of the organisation of Petroleum exporting countries, or OPEC+, to reduce output has weighed on revenues.

Will OPEC+ start to unwind production cuts on higher oil?

For the first half of the year, the Organization of Petroleum Exporting Countries and its partners (OPEC+) decided to maintain oil production cutbacks. This will keep global crude markets tight and oil prices elevated. Brent crude rose to over $90 per barrel after the OPEC+ decision.

Oil nears $90 a barrel after OPEC+ sticks with supply cuts

Australia skipper Pat Cummins says that he'll quit the captaincy the day ace spinner Nathan Lyon retires. Cummins, however, backs Lyon to continue for four more years, given the spinner takes care of his body. The Aussie skipper made the remarks following Australia's 172-run win over New Zealand in the first Test on Sunday, March 3. Notably, Lyon took a six-fer in second innings to help Australia win - his 24th in the Tests.

"I've already told him (Lyon) the day he retires I'm definitely giving up the captaincy because it makes my life a helluva lot easier," said Cummins after the win in first Test.

"The only barrier really is his body, so if he looks after his body and makes sure he's right for 10 Test matches a year, or whatever it is, I'd absolutely love him to play until 2027. And I don't think there's much that's going to get in his way," he added.

Also Read:&nbsp;<a href="https://www.wionews.com/cricket/former-bangladesh-skipper-tamim-iqbal-lays-out-conditions-for-international-return-696141">Former Bangladesh skipper Tamim Iqbal lays out conditions for international return</a>

After the second and the last Test of the ongoing series against New Zealand, Australia's next Test assignment will be against India at home in December later this year. He has played 128 Tests so far, taking 527 wickets.

As for the match, New Zealand had Australia pinned down at 267/9 in the first innings before Cameron Green scored 174 not out to take his team to 383. In reply, New Zealand were bowled out for 179 in the first innings.

Come second innings, New Zealand did well by bowling Australia out for 164 with part-timer Glenn Phillips taking a five-for. With a target of 369, the Kiwis did well to end day 3 at 111/3, needing 256 more to win.

On day 4 (March 3), Aussie spinner Nathan Lyon, was in prime form, taking six wickets in total to bowl New Zealand out for 196 to win the match for his team.

Australia skipper Pat Cummins says that he'll quit the captaincy the day ace spinner Nathan Lyon retires. Cummins, however, backs Lyon to continue for four more years, given the spinner takes care of his body.

Australia skipper Pat Cummins says that he'll quit the captaincy the day ace spinner Nathan Lyon retires. Cummins, however, backs Lyon to continue for four more years, given the spinner takes care of his body. The Aussie skipper made the remarks following Australia's 172-run win over New Zealand in the first Test on Sunday, March 3. Notably, Lyon took a six-fer in second innings to help Australia win - his 24th in the Tests. "I've already told him (Lyon) the day he retires I'm definitely giving up the captaincy because it makes my life a helluva lot easier," said Cummins after the win in first Test. "The only barrier really is his body, so if he looks after his body and makes sure he's right for 10 Test matches a year, or whatever it is, I'd absolutely love him to play until 2027. And I don't think there's much that's going to get in his way," he added. Also Read: Former Bangladesh skipper Tamim Iqbal lays out conditions for international return After the second and the last Test of the ongoing series against New Zealand, Australia's next Test assignment will be against India at home in December later this year. He has played 128 Tests so far, taking 527 wickets. As for the match, New Zealand had Australia pinned down at 267/9 in the first innings before Cameron Green scored 174 not out to take his team to 383. In reply, New Zealand were bowled out for 179 in the first innings. Come second innings, New Zealand did well by bowling Australia out for 164 with part-timer Glenn Phillips taking a five-for. With a target of 369, the Kiwis did well to end day 3 at 111/3, needing 256 more to win. On day 4 (March 3), Aussie spinner Nathan Lyon, was in prime form, taking six wickets in total to bowl New Zealand out for 196 to win the match for his team.

Several OPEC+ countries announce extension of oil cuts

Saudi Arabia has decided to lower the major Crude prices for consumers in all regions, including its primary market in asia, for the month of February. This is due to the ongoing market downturn. Meanwhile, robust global supply, driven by the US, is increasing the possibility of a glut. This will compel the OPEC+ group, led by Saudi Arabia and Russia, to continue cutting output into this year.

OPEC+ group to extend output cuts into this year | World Business Watch

OPEC nations Iraq, Nigeria and the Republic of Congo affirmed their commitment to the oil-producer group following the exit of Angola last week.

OPEC nations affirm commitment to group after Angola's exit

Angola has shocked OPEC by announcing its departure from the oil-producing group led by Saudi Arabia. The oil minister stated that Angola gains nothing by staying in OPEC and opposes the group's decision to cut its 2024 output quota. This unexpected move has dealt a blow to OPEC's efforts to stabilize oil prices, leading to a nearly 2% drop in prices.

Angola quits OPEC grouping

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

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

In a sign of lingering tensions among oil producers, Angola said Thursday that the country would be leaving OPEC. The decision was made at a cabinet meeting led by President Joao Lourenco, the state-owned Jornal de Angola reported. Angola's announcement was not surprising.

Angola leaves OPEC in blow to oil producer group

Angola, Africa's second-largest oil producer, has announced its exit from OPEC following disagreements over production targets, delivering a setback to the oil cartel chaired by Saudi Arabia.

This decision comes after OPEC reduced Angola's oil output target last month as part of broader production cuts led by Saudi Arabia to support prices.

In response to the announcement, Brent, the international crude oil benchmark, fell by 1.8 per cent&nbsp;to $78.26 per barrel, while the US benchmark, West Texas Intermediate, dropped 2.1 per cent&nbsp;to $72.69 per barrel.

<a href="https://www.wionews.com/world/opec-head-told-members-to-block-any-deal-at-cop28-that-targets-fossil-fuels-report-667897">Also read |&nbsp;OPEC head told members to block any deal at COP28 that targets fossil fuels: Report</a>

<h2>Background: Angola's ongoing dispute&nbsp;with OPEC</h2>

Angola, an OPEC member since 2007, has been in conflict with Saudi Arabia over attempts to lower its production baseline. The production baseline determines each member's output quota and is adjusted to reflect declines in the country's production capacity.

In June, Angola walked out of an OPEC meeting but later agreed, along with Nigeria and the Republic of Congo, to have its production baseline reviewed by an independent third party. The review resulted in the reduction of all three countries' baselines for 2024 during the November OPEC meeting.

Helima Croft, head of commodities research at RBC Capital Markets, emphasized that the seeds of Angola's exit were sown in June. The country had not fully accepted the agreement that allowed the UAE to increase its 2024 baseline while reducing Angola's baseline. Additionally, Angola has been characterized as a somewhat unpredictable member, staging multiple walkouts at OPEC secretariat meetings.

While Angola's departure is a blow to OPEC, it is not expected to significantly affect the group's ability to influence the market. Angola's daily production of 1.2 million barrels accounts for about 2 per cent&nbsp;of the total output of the OPEC+ alliance, which includes Russia.

Bjarne Schieldrop, chief commodities analyst at SEB, cautioned against interpreting Angola's departure as indicative of larger problems within OPEC. He emphasised that the crucial factors influencing OPEC's stability are Russia and Saudi Arabia, and Angola's exit should not be seen as a signal of broader disintegration.

Also watch |&nbsp;Top OPEC official opposes any deal targeting fossil fuels

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/top-opec-official-opposes-any-deal-targeting-fossil-fuels-667836/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The decision to leave OPEC aligns with Angola's evolving foreign policy under President João Lourenço, characterized by an increasingly "à la carte" approach. Despite historic ties with the Soviet Union, Angola has become more critical of Russia's actions, such as the invasion of Ukraine, expressing dissatisfaction with OPEC's direction set by Saudi Arabia and Russia.

The growing proximity between the US and Angola was highlighted by President Joe Biden's recent meeting with President Lourenço. The US has committed to investing over $1 billion in Angola, including $900 million in a solar project to accelerate the country's diversification away from oil. While the departure aligns with a pro-western approach, analysts question its automatic alignment with US interests.

(With inputs from agencies)

Angola, Africa's second-largest oil producer, has announced its exit from OPEC following disagreements over production targets, delivering a setback to the oil cartel chaired by Saudi Arabia.

Angola, Africa's second-largest oil producer, has announced its exit from OPEC following disagreements over production targets, delivering a setback to the oil cartel chaired by Saudi Arabia. This decision comes after OPEC reduced Angola's oil output target last month as part of broader production cuts led by Saudi Arabia to support prices. In response to the announcement, Brent, the international crude oil benchmark, fell by 1.8 per cent to $78.26 per barrel, while the US benchmark, West Texas Intermediate, dropped 2.1 per cent to $72.69 per barrel. Also read | OPEC head told members to block any deal at COP28 that targets fossil fuels: Report Background: Angola's ongoing dispute with OPEC Angola, an OPEC member since 2007, has been in conflict with Saudi Arabia over attempts to lower its production baseline. The production baseline determines each member's output quota and is adjusted to reflect declines in the country's production capacity. In June, Angola walked out of an OPEC meeting but later agreed, along with Nigeria and the Republic of Congo, to have its production baseline reviewed by an independent third party. The review resulted in the reduction of all three countries' baselines for 2024 during the November OPEC meeting. Helima Croft, head of commodities research at RBC Capital Markets, emphasized that the seeds of Angola's exit were sown in June. The country had not fully accepted the agreement that allowed the UAE to increase its 2024 baseline while reducing Angola's baseline. Additionally, Angola has been characterized as a somewhat unpredictable member, staging multiple walkouts at OPEC secretariat meetings. While Angola's departure is a blow to OPEC, it is not expected to significantly affect the group's ability to influence the market. Angola's daily production of 1.2 million barrels accounts for about 2 per cent of the total output of the OPEC+ alliance, which includes Russia. Bjarne Schieldrop, chief commodities analyst at SEB, cautioned against interpreting Angola's departure as indicative of larger problems within OPEC. He emphasised that the crucial factors influencing OPEC's stability are Russia and Saudi Arabia, and Angola's exit should not be seen as a signal of broader disintegration. Also watch | Top OPEC official opposes any deal targeting fossil fuels The decision to leave OPEC aligns with Angola's evolving foreign policy under President João Lourenço, characterized by an increasingly "à la carte" approach. Despite historic ties with the Soviet Union, Angola has become more critical of Russia's actions, such as the invasion of Ukraine, expressing dissatisfaction with OPEC's direction set by Saudi Arabia and Russia. The growing proximity between the US and Angola was highlighted by President Joe Biden's recent meeting with President Lourenço. The US has committed to investing over $1 billion in Angola, including $900 million in a solar project to accelerate the country's diversification away from oil. While the departure aligns with a pro-western approach, analysts question its automatic alignment with US interests. (With inputs from agencies)

Angola quits OPEC following disputes with Saudi Arabia over production targets

After weeks of negotiating, speeches and <a href="https://www.wionews.com/india-news/end-fossil-fuels-indian-climate-activist-licypriya-kangujam-storms-cop28-stage-watch-668823">protests</a>, the nearly 200 countries which participated in the United Nations climate summit or COP28 in the oil-rich nation adopted the historic agreement calling for <a href="https://www.wionews.com/videos/cop28-nations-to-transition-away-from-fossil-fuel-use-669304">“transitioning away”</a> from fossil fuels. While the COP28 president described the agreement which stops short of calling for a <a href="https://www.wionews.com/world/new-cop28-draft-deal-avoids-phase-out-of-fossil-fuels-668630">“phase out”</a> of fossil fuels as a “true victory” not everyone agrees with that sentiment.&nbsp;

The adopted agreement is the <a href="https://www.wionews.com/world/new-cop28-draft-calls-for-transitioning-away-from-fossil-fuels-669108">first time</a> in the nearly three-decade history of the UN climate summits that nations agreed to transition away from fossil fuels after two weeks of debate and wrapping up the conference marred by controversies.&nbsp;

<h2>‘UAE consensus’</h2>

The latest draft pitched on early Wednesday after another night of debate more explicitly “calls on” all nations to take a series of actions as opposed to the previously dismissed draft which listed what “could” be done to combat global warming.&nbsp;

The toughened language of the agreement includes “transitioning away from fossil fuels in energy systems, in a just, orderly and equitable manner, accelerating action in this critical decade, so as to achieve net zero by 2050 in keeping with the science.”&nbsp;

The agreement which ended up being dubbed the “UAE Consensus” calls on countries to take action to transition away from fossil fuels and indicates that the world, for the first time, has expressed a unified desire to eventually end the oil age, in a bid to avert the worst impacts of climate change.&nbsp;

<a href="https://www.wionews.com/world/explained-as-debate-over-fossil-fuels-rages-on-at-cop28-climate-summit-global-co2-emissions-hit-new-record-666515">Fossil fuels</a> account for about 80 per cent of global energy but are also the main culprits in the planet’s rapid warming.&nbsp;

The deal also calls for tripling of renewable energy capacity globally by 2030, phase-downs of “unabated coal power” and accelerating technologies such as carbon capture.&nbsp;

While the agreement calls for “phasing out inefficient fossil fuel subsidies that do not address energy poverty or just transitions, as soon as possible,” it does not call for a “phase-out” of fossil fuels, which had been sought by most countries.&nbsp;

It also set more explicit near-term goals which included ending net emissions by 2050 and called for efforts to cut greenhouse gas emissions by 43 per cent in the next seven years when compared with 2019 levels.&nbsp;

<h2>Will it make a difference?</h2>

While the deal has been touted as “historic”, the <a href="https://www.wionews.com/world/cop28-presidents-no-science-behind-oil-phase-out-statement-causes-alarm-666064">COP28 president</a> said that its true success would be in its implementation and urged countries to “take the steps necessary to turn this agreement into tangible actions.” It is now up to individual countries to take action by proposing and enacting national policies and investments.&nbsp;

But in case you are wondering how an oil-rich nation, not to mention an OPEC member, agreed to this deal, it is because of the list of actions that countries supposedly should take to fight climate change.&nbsp;

The deal calls for increased use of existing technologies to reduce the climate impact of fossil fuels, which mainly includes capturing carbon dioxide when oil, natural gas and coal are burned before they are emitted into the atmosphere.&nbsp;

While this technology has been around for some time, it is also very expensive, not to mention the lack of backing to prove that its global application could have an impact on <a href="https://www.wionews.com/world/un-chief-antonio-guterres-sounds-alarm-in-dubai-says-2023-set-to-be-hottest-year-in-human-history-664688">climate change</a> as opposed to scientists across the world calling to end the use of fossil fuels as a way to stop global warming.&nbsp;

Saudi Arabia reportedly pressured the UAE to drop any mention of fossil fuels from the text but later agreed. A source familiar with Saudi thinking told Reuters that the kingdom could have accepted the deal as it provides a “menu” for every country to follow its own way to the energy transition.&nbsp;

The inclusion of the term “phase out” in the document faced strong opposition from the Saudi Arabia-led oil producer group which argued that the world can reduce emissions without restricting the use of certain fossil fuels.&nbsp;

<h2>True victory?</h2>

COP28 President Sultan Al Jaber ended this year’s conference and called the agreement a “true victory” of unity, solidarity and collaboration between the 194 countries and the European Union.&nbsp;

“This is a true victory for those who are sincere and genuine in addressing this global climate challenge. This is a true victory for those who are pragmatic, results-oriented, and led by the science,” said Al Jaber.&nbsp;

“I hear no objection? It is so decided,” he announced prompting applause and a standing ovation from delegates, but not all. As it turns out, representatives from the small island nations which are at most risk due to climate change were not even in the room when the decision was made.&nbsp;

“We didn’t want to interrupt the standing ovation when we came into the room, but we are a little confused about what happened,” said Alliance of Small Island States representative Anne Rasmussen from Samoa.&nbsp;

She also explained that they were delayed as they tried to agree on a coordinated position on the text, and declared the bloc unhappy with the final result. “It seems that you just gavelled the decisions and the small island developing states were not in the room,” she added.&nbsp;

AOSIS, a bloc of 39 countries in a statement said that while the new text is an improvement it did not “reflect a number of submissions made by small island developing states,” expressed their concerns about the <a href="https://www.wionews.com/world/cop28-summit-kicks-off-with-breakthrough-climate-disaster-fund-agreement-664840">“litany of loopholes”</a> and noted that “course correction is needed.”

“It is not enough for us to reference the science and then make agreements that ignore what the science is telling us we need to do. This is not an approach that we should be asked to defend,” said Rasmussen.

<h2>Mixed reactions</h2>

Representatives of most countries lauded the deal and the cooperation it took to make it happen including the US and EU.&nbsp;

“This is a moment where multilateralism has actually come together and people have taken individual interests and attempted to define the common good,” said American climate envoy John Kerry after the agreement was adopted.&nbsp;

EU chief negotiator Wopke Hoekstra told a press huddle outside the plenary that the agreement was “truly consequential” and the “beginning of the end of fossil fuels”. &nbsp;&nbsp; &nbsp;

While others expressed disappointment. “I came here from my home in the islands to work with you all to solve the greatest challenge of our generation. I came here to build a canoe together for my country. Instead we have built a canoe with a weak and leaky hull, full of holes. Instead we have put it in the water,” said Marshall Islands’ head of delegation, John Silk.&nbsp;

Meanwhile, <a href="https://www.wionews.com/entertainment/lifestyle/news-cop28-five-passionate-environmentalists-who-are-restoring-indias-biodiversity-tirelessly-665225">India </a>and <a href="https://www.wionews.com/world/cop28-india-china-abstain-from-renewable-power-pledge-118-nations-sign-665671">China</a>, among the largest emitters of carbon dioxide in the world, called on developed countries to lead based on their “historical contributions” to climate change.&nbsp;

“This COP has largely disappointed on all fronts. It hasn’t sufficiently raised climate ambition, held historical polluters accountable, or established effective mechanisms to finance climate resilience and a just low-carbon transition for the Global South,” said Dr Arunabha Ghosh, CEO of Council on Energy, Environment and Water (CEEW), a New Delhi based think tank.&nbsp;

He added, “The exclusive focus on rapidly phasing down unabated coal, as opposed to all fossil fuels, heightens the risk of exacerbating the North-South global divide.”

(With inputs from agencies) 
&nbsp;

&nbsp;

After weeks of negotiating, speeches and protests, the nearly 200 countries which participated in the United Nations climate summit or COP28 in the oil-rich nation adopted the historic agreement calling for “transitioning away” from fossil fuels.

After weeks of negotiating, speeches and protests, the nearly 200 countries which participated in the United Nations climate summit or COP28 in the oil-rich nation adopted the historic agreement calling for “transitioning away” from fossil fuels. While the COP28 president described the agreement which stops short of calling for a “phase out” of fossil fuels as a “true victory” not everyone agrees with that sentiment. The adopted agreement is the first time in the nearly three-decade history of the UN climate summits that nations agreed to transition away from fossil fuels after two weeks of debate and wrapping up the conference marred by controversies. ‘UAE consensus’ The latest draft pitched on early Wednesday after another night of debate more explicitly “calls on” all nations to take a series of actions as opposed to the previously dismissed draft which listed what “could” be done to combat global warming. The toughened language of the agreement includes “transitioning away from fossil fuels in energy systems, in a just, orderly and equitable manner, accelerating action in this critical decade, so as to achieve net zero by 2050 in keeping with the science.” The agreement which ended up being dubbed the “UAE Consensus” calls on countries to take action to transition away from fossil fuels and indicates that the world, for the first time, has expressed a unified desire to eventually end the oil age, in a bid to avert the worst impacts of climate change. Fossil fuels account for about 80 per cent of global energy but are also the main culprits in the planet’s rapid warming. The deal also calls for tripling of renewable energy capacity globally by 2030, phase-downs of “unabated coal power” and accelerating technologies such as carbon capture. While the agreement calls for “phasing out inefficient fossil fuel subsidies that do not address energy poverty or just transitions, as soon as possible,” it does not call for a “phase-out” of fossil fuels, which had been sought by most countries. It also set more explicit near-term goals which included ending net emissions by 2050 and called for efforts to cut greenhouse gas emissions by 43 per cent in the next seven years when compared with 2019 levels. Will it make a difference? While the deal has been touted as “historic”, the COP28 president said that its true success would be in its implementation and urged countries to “take the steps necessary to turn this agreement into tangible actions.” It is now up to individual countries to take action by proposing and enacting national policies and investments. But in case you are wondering how an oil-rich nation, not to mention an OPEC member, agreed to this deal, it is because of the list of actions that countries supposedly should take to fight climate change. The deal calls for increased use of existing technologies to reduce the climate impact of fossil fuels, which mainly includes capturing carbon dioxide when oil, natural gas and coal are burned before they are emitted into the atmosphere. While this technology has been around for some time, it is also very expensive, not to mention the lack of backing to prove that its global application could have an impact on climate change as opposed to scientists across the world calling to end the use of fossil fuels as a way to stop global warming. Saudi Arabia reportedly pressured the UAE to drop any mention of fossil fuels from the text but later agreed. A source familiar with Saudi thinking told Reuters that the kingdom could have accepted the deal as it provides a “menu” for every country to follow its own way to the energy transition. The inclusion of the term “phase out” in the document faced strong opposition from the Saudi Arabia-led oil producer group which argued that the world can reduce emissions without restricting the use of certain fossil fuels. True victory? COP28 President Sultan Al Jaber ended this year’s conference and called the agreement a “true victory” of unity, solidarity and collaboration between the 194 countries and the European Union. “This is a true victory for those who are sincere and genuine in addressing this global climate challenge. This is a true victory for those who are pragmatic, results-oriented, and led by the science,” said Al Jaber. “I hear no objection? It is so decided,” he announced prompting applause and a standing ovation from delegates, but not all. As it turns out, representatives from the small island nations which are at most risk due to climate change were not even in the room when the decision was made. “We didn’t want to interrupt the standing ovation when we came into the room, but we are a little confused about what happened,” said Alliance of Small Island States representative Anne Rasmussen from Samoa. She also explained that they were delayed as they tried to agree on a coordinated position on the text, and declared the bloc unhappy with the final result. “It seems that you just gavelled the decisions and the small island developing states were not in the room,” she added. AOSIS, a bloc of 39 countries in a statement said that while the new text is an improvement it did not “reflect a number of submissions made by small island developing states,” expressed their concerns about the “litany of loopholes” and noted that “course correction is needed.” “It is not enough for us to reference the science and then make agreements that ignore what the science is telling us we need to do. This is not an approach that we should be asked to defend,” said Rasmussen. Mixed reactions Representatives of most countries lauded the deal and the cooperation it took to make it happen including the US and EU. “This is a moment where multilateralism has actually come together and people have taken individual interests and attempted to define the common good,” said American climate envoy John Kerry after the agreement was adopted. EU chief negotiator Wopke Hoekstra told a press huddle outside the plenary that the agreement was “truly consequential” and the “beginning of the end of fossil fuels”. While others expressed disappointment. “I came here from my home in the islands to work with you all to solve the greatest challenge of our generation. I came here to build a canoe together for my country. Instead we have built a canoe with a weak and leaky hull, full of holes. Instead we have put it in the water,” said Marshall Islands’ head of delegation, John Silk. Meanwhile, India and China, among the largest emitters of carbon dioxide in the world, called on developed countries to lead based on their “historical contributions” to climate change. “This COP has largely disappointed on all fronts. It hasn’t sufficiently raised climate ambition, held historical polluters accountable, or established effective mechanisms to finance climate resilience and a just low-carbon transition for the Global South,” said Dr Arunabha Ghosh, CEO of Council on Energy, Environment and Water (CEEW), a New Delhi based think tank. He added, “The exclusive focus on rapidly phasing down unabated coal, as opposed to all fossil fuels, heightens the risk of exacerbating the North-South global divide.” (With inputs from agencies)

Explained | Nations at COP28 adopt historic deal to transition away from fossil fuels. What is it about?

A top OPEC official has urged member countries to oppose any deal that targets fossil fuels at COP28. Secretary-general Haitham Al Ghais said that producers should (quote unquote) "Proactively reject any text or formula that targets energy".

COP28: Iraq, Saudi Arabia fiercely oppose fossil fuel phase out at Summit

The United Nations' largest-ever climate conference the COP28 meeting is now in its last week. For the first time, the question of whether the world should put an end to the oil age has been Central to the COP28 Summit. Watch to know more.

COP28 Summit: 200 countries to hash out solutions for climate change

The Oil Producing and Exporting Countries (OPEC) Secretary-General Haitham Al Ghais in a letter&nbsp; addressed to the oil cartel's member nations has pleaded with them to&nbsp;reject proposals for any text under negotiation at the&nbsp;COP28 Climate Summit, reported news agency Reuters on&nbsp;Friday (Dec 8). The letter referred to a draft of the COP28 text under negotiation that was published by the UN climate body on Tuesday.

A different draft was published on Friday. This new draft included a range of options from agreeing to a "phase-out of fossil fuels in line with best available science", to phasing out "unabated fossil fuels", to including no language on them at all.

"It seems that the undue and disproportionate pressure against fossil fuels may reach a tipping point with irreversible consequences, as the draft decision still contains options on fossil fuels phase out," the letter read.

It also urged delegations at COP28 to "proactively reject any text or formula that targets energy i.e. fossil fuels rather than emissions."

Also read:&nbsp;<a href="https://www.wionews.com/world/explained-as-debate-over-fossil-fuels-rages-on-at-cop28-climate-summit-global-co2-emissions-hit-new-record-666515">Explained | Global CO2 emissions due to fossil fuels hit new record. Will world leaders at COP28 act now?</a>

"While OPEC Member Countries and Non-OPEC Countries participating in the Charter of Cooperation (CoC) are taking climate change seriously and have a proven record on climate actions, it would be unacceptable that politically motivated campaigns put our people's prosperity and future at risk," the letter further added.

Speaking to Reuters, OPEC said it did not comment on official communication with member nations but it continued to advise them and its partners.

Reacting to the letter, Nikki Reisch from the Center for International Environmental Law said, "The inclusion of some options that focus on the need for action toward phaseout of all fossil fuels this critical decade is a step in the right direction."

"But language calling for the massive scale-up of risky and speculative carbon capture and removal technologies risks blowing a gaping loophole through the energy package and must be struck," Reisch added.

Another climate expert said the new draft of the COP28 agreement was the beginning of the end.&nbsp;

Li Shuo, director of China Climate Hub at the Asia Society Policy Institute, told Reuters the first version included options from "two extreme sides of the political spectrum" and the new options were filling in "the empty field in the middle."

(With inputs from agencies)

The Oil Producing and Exporting Countries (OPEC) Secretary-General Haitham Al Ghais in a letter addressed to the oil cartel's member nations has pleaded with them to reject proposals for any text under negotiation at the COP28 Climate Summit, reported news agency Reuters on Friday (Dec 8).

The Oil Producing and Exporting Countries (OPEC) Secretary-General Haitham Al Ghais in a letter addressed to the oil cartel's member nations has pleaded with them to reject proposals for any text under negotiation at the COP28 Climate Summit, reported news agency Reuters on Friday (Dec 8). The letter referred to a draft of the COP28 text under negotiation that was published by the UN climate body on Tuesday. A different draft was published on Friday. This new draft included a range of options from agreeing to a "phase-out of fossil fuels in line with best available science", to phasing out "unabated fossil fuels", to including no language on them at all. "It seems that the undue and disproportionate pressure against fossil fuels may reach a tipping point with irreversible consequences, as the draft decision still contains options on fossil fuels phase out," the letter read. It also urged delegations at COP28 to "proactively reject any text or formula that targets energy i.e. fossil fuels rather than emissions." Also read: Explained | Global CO2 emissions due to fossil fuels hit new record. Will world leaders at COP28 act now? "While OPEC Member Countries and Non-OPEC Countries participating in the Charter of Cooperation (CoC) are taking climate change seriously and have a proven record on climate actions, it would be unacceptable that politically motivated campaigns put our people's prosperity and future at risk," the letter further added. Speaking to Reuters, OPEC said it did not comment on official communication with member nations but it continued to advise them and its partners. Reacting to the letter, Nikki Reisch from the Center for International Environmental Law said, "The inclusion of some options that focus on the need for action toward phaseout of all fossil fuels this critical decade is a step in the right direction." "But language calling for the massive scale-up of risky and speculative carbon capture and removal technologies risks blowing a gaping loophole through the energy package and must be struck," Reisch added. Another climate expert said the new draft of the COP28 agreement was the beginning of the end. Li Shuo, director of China Climate Hub at the Asia Society Policy Institute, told Reuters the first version included options from "two extreme sides of the political spectrum" and the new options were filling in "the empty field in the middle." (With inputs from agencies)

OPEC head told members to block any deal at COP28 that targets fossil fuels: Report

The OPEC+ cartel has agreed to cut oil production by a further 1 million barrels per day (BPD) for early next year, with Saudi Arabia also announcing voluntary cuts of a similar amount, in a move that would likely drive up the oil prices across the world.

The announcement was made on Thursday (Nov 30) following a relentless push from Saudi to make additional production cuts since July. The kingdom wanted its OPEC+ allies to reduce oil production on the back of crude prices falling by more than 10 per cent from their September high.

The move follows a meeting in June where OPEC+ agreed on a complex deal that revised production targets for several members.

<h2>Individual members revise targets</h2>

Final details of the accord, including national production levels, will be announced individually by each country rather than in the customary OPEC+ communique, Bloomberg reported citing delegates of the group.

Russia, on the other hand, has voluntarily agreed to a supply cut of 500,000 bpd through the end of the first quarter, according to a statement by Deputy Prime Minister Alexander Novak.

A source in the Saudi Energy Ministry told the Saudi Press Agency that the kingdom will extend its voluntary production cut through the end of the first quarter of 2024.

While Algeria agreed to cut January oil production by another 50,000 bpd.

The are 14 countries that are members of the OPEC+ cartel, with Brazil declaring it to be the 15th member on Thursday.

These 14 countries represent around 40 per cent of world oil production.

<h2>Oil cuts to drive up prices</h2>

Also read |&nbsp;<a href="https://www.wionews.com/world/brazil-confirms-joining-opec-from-next-year-minister-says-all-set-664820">Brazil confirms joining OPEC+ from next year, minister says 'all set'</a>

The announcement comes at a time when the prices of oil were down to a near $98 a barrel in September due to the sluggish global economy and growing supplies outside the cartel’s quota system.

Also read |&nbsp;<a href="https://www.wionews.com/world/henry-kissinger-the-most-controversial-and-influential-american-of-20th-century-dies-at-100-664470">Henry Kissinger, America's most controversial and equally influential diplomat, dies at 100</a>

It has been further predicted that the price could fall even further next year, when forecasters including the International Energy Agency anticipate a sharp slowdown in demand growth.

Meanwhile, the move boosted Brent crude above $84 a barrel, up about 1.3 per cent on the day and up 6 per cent since Friday to its highest level in three weeks.

(With inputs from agencies)

The OPEC+ cartel has agreed to cut oil production by a further 1 million barrels per day (BPD) for early next year, with Saudi Arabia also announcing voluntary cuts of a similar amount, in a move that would likely drive up the oil prices across the world.

The OPEC+ cartel has agreed to cut oil production by a further 1 million barrels per day (BPD) for early next year, with Saudi Arabia also announcing voluntary cuts of a similar amount, in a move that would likely drive up the oil prices across the world. The announcement was made on Thursday (Nov 30) following a relentless push from Saudi to make additional production cuts since July. The kingdom wanted its OPEC+ allies to reduce oil production on the back of crude prices falling by more than 10 per cent from their September high. The move follows a meeting in June where OPEC+ agreed on a complex deal that revised production targets for several members. Individual members revise targets Final details of the accord, including national production levels, will be announced individually by each country rather than in the customary OPEC+ communique, Bloomberg reported citing delegates of the group. Russia, on the other hand, has voluntarily agreed to a supply cut of 500,000 bpd through the end of the first quarter, according to a statement by Deputy Prime Minister Alexander Novak. A source in the Saudi Energy Ministry told the Saudi Press Agency that the kingdom will extend its voluntary production cut through the end of the first quarter of 2024. While Algeria agreed to cut January oil production by another 50,000 bpd. The are 14 countries that are members of the OPEC+ cartel, with Brazil declaring it to be the 15th member on Thursday. These 14 countries represent around 40 per cent of world oil production. Oil cuts to drive up prices Also read | Brazil confirms joining OPEC+ from next year, minister says 'all set' The announcement comes at a time when the prices of oil were down to a near $98 a barrel in September due to the sluggish global economy and growing supplies outside the cartel’s quota system. Also read | Henry Kissinger, America's most controversial and equally influential diplomat, dies at 100 It has been further predicted that the price could fall even further next year, when forecasters including the International Energy Agency anticipate a sharp slowdown in demand growth. Meanwhile, the move boosted Brent crude above $84 a barrel, up about 1.3 per cent on the day and up 6 per cent since Friday to its highest level in three weeks. (With inputs from agencies)

OPEC+ announces significant oil production cuts

Ahead of Organization of Petroleum Exporting Countries (OPEC+) meet in Vienna on November 26, Saudi Arabia is reportedly preparing to extend oil production cuts into 2024 as the bloc appears to ramp up its response to falling oil prices and regional tumult with larger geo-economic consequences amid Israel-Hamas war.

As of 2023, OPEC+ have 22 members which include 13 OPEC members (Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates, and Venezuela) and 9 Non-OPEC members&nbsp; including Russia, Mexico, Sudan, South Sudan, Azerbaijan and&nbsp;Kazakhstan. The Non-OPEC countries which export&nbsp;crude oil along with 13 OPEC members are termed as OPEC+ countries.&nbsp;

Earlier this week on Thursday (Nov 16), the oil prices slumped to their lowest since July, reflecting the pressure on OPEC+ group to consider further steps — extend or deepen — over their daily oil production capabilities.&nbsp;

Brent crude, the conventional international oil benchmark dropped 5.2 per cent on Thursday (Nov 16) as the prices went under $77 per barrel. Besides, in the backdrop of Russian offensive in Ukraine launched in February 2022, the crude oil price cap has been imposed at $60 per barrel for Russian oil exports, a benchmark Moscow has managed to evade.

Also read |&nbsp;<a href="https://www.wionews.com/world/the-capitals-bogotas-great-amazon-miracle-riyadhs-oil-games-in-vienna-and-more-603219">The Capitals: Bogota's great Amazon miracle, Riyadh's oil games in Vienna and more</a>&nbsp;

After the oil prices hit a four-month low of $77 a barrel this week, Financial Times cited four people familiar with the Saudi government’s thinking to add that OPEC+ was highly likely to extend its 1mn barrel-a-day cut at least until the spring next year.

<h2>Why the Saudi-led&nbsp;OPEC+ is considering&nbsp;oil cuts?</h2>

The primary cause is the oil price drop. But the OPEC+ members are also reportedly incensed over Israel-Hamas war and unprecedented humanitarian crisis that has gripped Gaza Strip, one of the world's most densely populated regions.&nbsp;

Kuwait, Algeria and Iran are among the OPEC+ members most agitated by the conflict, Financial Times reported.&nbsp;

"You should not underestimate the level of anger there is and the pressure leaders in the Gulf feel from their populations to be seen to respond in some manner," a person close to senior OPEC figures in West Asia was quoted as saying by the publication.

Also watch |&nbsp;OPEC + leaders emphasise investment for stable energy transition

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While there won't be a repeat of the oil shock of the 1970s when the West Asian states halted oil exports to the West.

But, the person cited by the Financial Times further added: "People have become complacent about the potential to tighten oil supplies to send a subtle message, which will be well understood both in the streets and Washington DC."

(With inputs from agencies)

Ahead of Organization of Petroleum Exporting Countries (OPEC+) meet in Vienna on November 26, Saudi Arabia is reportedly preparing to extend oil production cuts into 2024 as the bloc appears to ramp up its response to falling oil prices and regional tumult with larger geo-economic consequences amid Israel-Hamas war.

Ahead of Organization of Petroleum Exporting Countries (OPEC+) meet in Vienna on November 26, Saudi Arabia is reportedly preparing to extend oil production cuts into 2024 as the bloc appears to ramp up its response to falling oil prices and regional tumult with larger geo-economic consequences amid Israel-Hamas war. As of 2023, OPEC+ have 22 members which include 13 OPEC members (Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates, and Venezuela) and 9 Non-OPEC members including Russia, Mexico, Sudan, South Sudan, Azerbaijan and Kazakhstan. The Non-OPEC countries which export crude oil along with 13 OPEC members are termed as OPEC+ countries. Earlier this week on Thursday (Nov 16), the oil prices slumped to their lowest since July, reflecting the pressure on OPEC+ group to consider further steps — extend or deepen — over their daily oil production capabilities. Brent crude, the conventional international oil benchmark dropped 5.2 per cent on Thursday (Nov 16) as the prices went under $77 per barrel. Besides, in the backdrop of Russian offensive in Ukraine launched in February 2022, the crude oil price cap has been imposed at $60 per barrel for Russian oil exports, a benchmark Moscow has managed to evade. Also read | The Capitals: Bogota's great Amazon miracle, Riyadh's oil games in Vienna and more After the oil prices hit a four-month low of $77 a barrel this week, Financial Times cited four people familiar with the Saudi government’s thinking to add that OPEC+ was highly likely to extend its 1mn barrel-a-day cut at least until the spring next year. Why the Saudi-led OPEC+ is considering oil cuts? The primary cause is the oil price drop. But the OPEC+ members are also reportedly incensed over Israel-Hamas war and unprecedented humanitarian crisis that has gripped Gaza Strip, one of the world's most densely populated regions. Kuwait, Algeria and Iran are among the OPEC+ members most agitated by the conflict, Financial Times reported. "You should not underestimate the level of anger there is and the pressure leaders in the Gulf feel from their populations to be seen to respond in some manner," a person close to senior OPEC figures in West Asia was quoted as saying by the publication. Also watch | OPEC + leaders emphasise investment for stable energy transition × While there won't be a repeat of the oil shock of the 1970s when the West Asian states halted oil exports to the West. But, the person cited by the Financial Times further added: "People have become complacent about the potential to tighten oil supplies to send a subtle message, which will be well understood both in the streets and Washington DC." (With inputs from agencies)

Return to 1970s? Saudi-led OPEC+ deliberating further oil cuts amid Israel-Hamas war, says report

Oil prices experienced a substantial drop of more than 4 per cent on Tuesday, hitting their lowest point since late July. The decline in prices was attributed to a combination of factors, including mixed Chinese economic data, an increase in OPEC exports, and the strengthening of the U.S. dollar.&nbsp;

According to a Reuters report, Brent crude futures closed below the $84 per barrel mark for the first time since the October 7 attack by Hamas Islamists on Israel. The global benchmark, Brent crude, settled at $81.61 per barrel, marking a decrease of $3.57, equivalent to 4.2 per cent.&nbsp;

Simultaneously, U.S. West Texas Intermediate (WTI) crude futures ended at $77.37 per barrel, down by $3.45 or 4.3 per cent. Analysts noted that while traders remain watchful for signs of potential supply disruptions due to geopolitical conflicts, such concerns appear to be diminishing.&nbsp;

A contributing factor to the downward pressure on oil prices was a noticeable recovery in oil exports from the Organisation of Petroleum Exporting Countries (OPEC). According to UBS analyst Giovanni Staunovo, OPEC's crude exports have risen by approximately 1 million barrels per day (bpd) since their August low. This increase in supply has raised questions about whether oil-consuming nations can absorb the excess.&nbsp;

Furthermore, the premium on front-month loading Brent contracts over those loading six months later reached a two-and-a-half-month low, suggesting reduced anxiety regarding potential supply shortages.&nbsp;

On the demand side, although China's crude oil imports in October displayed robust growth, the country's overall exports of goods and services contracted more rapidly than anticipated. This has led analysts to speculate that the Chinese economic outlook is being impacted by declining demand in Western markets, which are the country's primary export destinations.&nbsp;

The U.S. also contributed to the pressure on oil prices as it reported a substantial increase in crude oil stocks, rising by nearly 12 million barrels in the last week. This data contradicted&nbsp;the earlier forecast by the U.S. Energy Information Administration, which had predicted a 100,000-bpd increase in total petroleum consumption for the year. Instead, the latest report now expects a 300,000-bpd decrease in petroleum consumption.&nbsp;

Additionally, fading hopes for a peak in global interest rates boosted the U.S. dollar from recent lows. A stronger U.S. dollar has the effect of making oil more expensive for holders of other currencies. The U.S. central bank may take further actions to reduce inflation to its 2 per cent target, according to comments by Minneapolis Federal Reserve President Neel Kashkari. &nbsp;

Investors are also awaiting remarks from Federal Reserve Chair Jerome Powell, to be delivered on Wednesday and Thursday.&nbsp;

(With inputs from Reuters)&nbsp;

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Oil prices experienced a substantial drop of more than 4 per cent on Tuesday, hitting their lowest point since late July. The decline in prices was attributed to a combination of factors, including mixed Chinese economic data, an increase in OPEC exports, and the strengthening of the U.

Oil prices experienced a substantial drop of more than 4 per cent on Tuesday, hitting their lowest point since late July. The decline in prices was attributed to a combination of factors, including mixed Chinese economic data, an increase in OPEC exports, and the strengthening of the U.S. dollar. According to a Reuters report, Brent crude futures closed below the $84 per barrel mark for the first time since the October 7 attack by Hamas Islamists on Israel. The global benchmark, Brent crude, settled at $81.61 per barrel, marking a decrease of $3.57, equivalent to 4.2 per cent. Simultaneously, U.S. West Texas Intermediate (WTI) crude futures ended at $77.37 per barrel, down by $3.45 or 4.3 per cent. Analysts noted that while traders remain watchful for signs of potential supply disruptions due to geopolitical conflicts, such concerns appear to be diminishing. A contributing factor to the downward pressure on oil prices was a noticeable recovery in oil exports from the Organisation of Petroleum Exporting Countries (OPEC). According to UBS analyst Giovanni Staunovo, OPEC's crude exports have risen by approximately 1 million barrels per day (bpd) since their August low. This increase in supply has raised questions about whether oil-consuming nations can absorb the excess. Furthermore, the premium on front-month loading Brent contracts over those loading six months later reached a two-and-a-half-month low, suggesting reduced anxiety regarding potential supply shortages. On the demand side, although China's crude oil imports in October displayed robust growth, the country's overall exports of goods and services contracted more rapidly than anticipated. This has led analysts to speculate that the Chinese economic outlook is being impacted by declining demand in Western markets, which are the country's primary export destinations. The U.S. also contributed to the pressure on oil prices as it reported a substantial increase in crude oil stocks, rising by nearly 12 million barrels in the last week. This data contradicted the earlier forecast by the U.S. Energy Information Administration, which had predicted a 100,000-bpd increase in total petroleum consumption for the year. Instead, the latest report now expects a 300,000-bpd decrease in petroleum consumption. Additionally, fading hopes for a peak in global interest rates boosted the U.S. dollar from recent lows. A stronger U.S. dollar has the effect of making oil more expensive for holders of other currencies. The U.S. central bank may take further actions to reduce inflation to its 2 per cent target, according to comments by Minneapolis Federal Reserve President Neel Kashkari. Investors are also awaiting remarks from Federal Reserve Chair Jerome Powell, to be delivered on Wednesday and Thursday. (With inputs from Reuters) WATCH WION LIVE HERE

Oil prices tumble over 4pc to its lowest level since July. Here's why

OPEC + leaders emphasise investment for stable energy transition | WION

OPEC + leaders emphasise investment for stable energy transition

Russia is making waves in the global oil market as it sells oil to India at nearly 80 dollars per barrel, a significant premium over western prices. This surge in prices is primarily driven by tight global oil markets and production cuts by key OPEC+ producers, including Russia and Saudi Arabia. As of mid-July, Urals crude has consistently traded above the western price cap of 60 dollars per barrel.

Russian oil sales surge in India

The Organisation of Oil Producing Countries or OPEC kept its production steady in June, a Bloomberg report said. According to the report, the 13-member OPEC on an average produced 28.57 million barrels a day, a modest rise of 80,000 barrels a day from May.&nbsp;

However, oil production in July is expected to decline as Saudi Arabia is expected to cut oil production by another 1 million barrels per day. The oil-rich kingdom&nbsp;is likely to continue with its additional oil cut in August too,&nbsp;media reports said.&nbsp;&nbsp;

It is not just the world's biggest oil producer that has decided to further cut oil production. Russia, another major oil producer, which has been under&nbsp;Western sanctions after the Ukraine war, has also promised to cut its oil exports by 500,000 barrels per day in August.

In April this year, OPEC+, which includes the OPEC countries and Russia, agreed to voluntarily cut their oil production from May onward. As per reports, the grouping had decided to cut oil production by 1.15 million barrels per day.&nbsp;

The oil producers' grouping has been cutting oil supply to lift up prices since November last year due to weaker Chinese demand and rising US supply. However, it been unable to move oil prices from the range of $70-$80 a barrel.

Initially, there were expectations that the output cut will add pressure on the global oil prices. However, oil prices have dipped about 12 percent in 2023. That is largely due to a lackluster post-pandemic recovery in China and fears of a global recession later this year.&nbsp;

While rising oil prices add&nbsp;to the inflationary pressure across the world, it is good news for top oil producers like Saudi Arabia. The West Asian kingdom is heavily dependent on oil to manage its government budget.&nbsp;

According to the International Monetary Fund, Saudi Arabia needs global oil prices to be over $80 in order to balance its yearly budget.&nbsp;

(With inputs from agencies)

The Organisation of Oil Producing Countries or OPEC kept its production steady in June, a Bloomberg report said. According to the report, the 13-member OPEC on an average produced 28.

The Organisation of Oil Producing Countries or OPEC kept its production steady in June, a Bloomberg report said. According to the report, the 13-member OPEC on an average produced 28.57 million barrels a day, a modest rise of 80,000 barrels a day from May. However, oil production in July is expected to decline as Saudi Arabia is expected to cut oil production by another 1 million barrels per day. The oil-rich kingdom is likely to continue with its additional oil cut in August too, media reports said. It is not just the world's biggest oil producer that has decided to further cut oil production. Russia, another major oil producer, which has been under Western sanctions after the Ukraine war, has also promised to cut its oil exports by 500,000 barrels per day in August. In April this year, OPEC+, which includes the OPEC countries and Russia, agreed to voluntarily cut their oil production from May onward. As per reports, the grouping had decided to cut oil production by 1.15 million barrels per day. The oil producers' grouping has been cutting oil supply to lift up prices since November last year due to weaker Chinese demand and rising US supply. However, it been unable to move oil prices from the range of $70-$80 a barrel. Initially, there were expectations that the output cut will add pressure on the global oil prices. However, oil prices have dipped about 12 percent in 2023. That is largely due to a lackluster post-pandemic recovery in China and fears of a global recession later this year. While rising oil prices add to the inflationary pressure across the world, it is good news for top oil producers like Saudi Arabia. The West Asian kingdom is heavily dependent on oil to manage its government budget. According to the International Monetary Fund, Saudi Arabia needs global oil prices to be over $80 in order to balance its yearly budget. (With inputs from agencies)

OPEC keeps June output steady ahead of anticipated dip in July oil production

In the world of oil trading, something unexpected is happening. Traders are paying less attention to Saudi Arabia's energy minister, Prince Abdulaziz bin Salman, despite his recent pledge to cut oil production to the lowest level in over a decade.

Traders ignore Saudi’s Energy Minister’s production cuts

Days after Saudi Arabia announced an oil output cut of 1 million barrels per day, US Secretary of State Antony Blinken met Saudi Crown Prince Mohammed bin Salman in Jeddah on Tuesday, his first bilateral visit to the kingdom as the top diplomat.

Days after Saudi Arabia announced an oil output cut of 1 million barrels per day, US Secretary of State Antony Blinken met Saudi Crown Prince Mohammed bin Salman in Jeddah on Tuesday, his first bilateral visit to the kingdom as the top diplomat. A statement by the US State Department stated the two sides affirmed their shared commitment "to advance stability, security, and prosperity across the Middle East and beyond, including through a comprehensive political agreement to achieve peace, prosperity, and security in Yemen." Though there was no explicit mention of talks regarding oil during the meeting, it is expected that Blinken may raise the issue later during his three-day trip. Notably, in the lead-up to the meeting, Washington was asked to comment on the decision by the kingdom to slash oil production. At the time, Deputy State Department spokesperson Vedant Patel took a safe line and refrained from commenting anything substantial. “We believe that supply should meet demand, and we’ll continue to work with all producers and consumers to ensure that energy markets support economic growth and lower prices for American families,” Patel said at a briefing. “That’s what we’re focusing on.” Watch | Oil rises on Saudi plan to deepen output cuts × Washington also raised the human rights issue, adding that bilateral relations are strengthened by it. "The Secretary also emphasised that our bilateral relationship is strengthened by progress on human rights. The Secretary and the Crown Prince discussed deepening economic cooperation, especially in the clean energy and technology fields," the readout stated. Step towards rapprochement? Blinken's visit is being dubbed as the latest step towards rapprochement between the two nations, especially after US President Joe Biden, during his campaign trail, promised to make Saudi Arabia "the pariah that they are" and "make them pay the price" for Jamal Khashoggi's murder. Khashoggi, a former royal insider-turned monarchy critic, was killed in the Saudi consulate in Turkey in 2018, an operation allegedly ordered by the prince. Even as the president, Biden did no favours to the bilateral relations when he met MBS last year and took a provocative stance. "What happened to Khashoggi was outrageous... I just made it clear if anything occurs like that again they will get that response and much more," said Biden. Also read | Saudi Arabia announces further voluntary oil production cut of 1mn barrels per day "I was straightforward and direct in discussing it. I made my view crystal clear. I said very straightforwardly, for an American president to be silent on an issue of human rights is inconsistent with who we are and who I am," he added. The US might also be wary of the growing might of China in the region, especially after Xi Jinping managed to broker the restoration of diplomatic ties between regional heavyweights Saudi Arabia and Iran. Even as Blinken was visiting, Iran reopened its embassy in Saudi for the first time in seven years. The embassy had been closed after a row over Saudi's hanging of a Shia cleric. (With inputs from agencies) WATCH WION LIVE HERE:

Days after Saudi cut oil output, Blinken meets Crown Prince Mohammed bin Salman

Saudi Arabia - the prominent member of the OPEC - has taken a decisive action of addressing the sliding crude prices to stabilise oil market. The kingdom plans to slash its oil supply by a significant one million barrels per day.

Saudi Arabia cuts supply to stabilise oil prices; oil-cut leaves investors guessing

OPEC's share of India's oil imports fell at the fastest pace in 2022-23 to the lowest in at least 22 years, as intake of cheaper Russian oil surged and the major producers' share could shrink further this year.

OPEC's oil market share in Indian imports falls

The price of crude oil dropped by more than $1 a barrel as traders booked profits after benchmarks reached multi-month highs the previous session and an OPEC report fueled concerns about summer demand. Only the second time this month did the global benchmark Brent crude finish lower, down $1.24 or 1.4% to settle at $86.09 per barrel. US West Texas Intermediate (WTI) prices fell $1.10, or 1.3%, to $82.16 per barrel at the market close.

Crude oil prices decline 1% after scaling multi-month highs

At a time when countries were already grappling with high oil prices, the OPEC+ announced fresh cuts in its oil production. The U.S. says the world needs lower prices to support economic growth. We ask, the world needs it? Or the west does?

Surprise new cuts in oil production by OPEC+ | The West Asia Post

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