OPEC and Russia have reached a historic deal to cut oil production. But, the oil markets may not cheer the truce just yet. WION's Palki Sharma decodes the biggest headline in the oil industry in more than a decade.

Gravitas: OPEC & Allies ink historic oil deal

The oil producting countries have finally agreed upon a production cut. As per the historic deal signed today, 10 per cent of the global oil supply would be cut. After a lot of hiccups, Organization of Petroleum Exporting countries (OPEC), and its allies led by Russia reached this deal.&nbsp;

However, the deal got a tepid reaction. The two leading benchmarks of oil sellers and buyers, Brent Crude and West Texas Intermediate remained unmoved in trade today.&nbsp;

Watch |&nbsp;

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-opec-allies-ink-historic-oil-deal-292334/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

What is the historic deal?

As per the deal, the production cut of oil supply will be nine million barrels per day for May and June. The cut is four times more of what was undertaken post 2008 financial crisis.&nbsp;

However, this might not be enough as experts predict a drop in demand of over 30 million barrels a day just in the month of April.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/opinions-blogs/covid-19-a-crisis-manufactured-292248">COVID-19: A crisis manufactured?</a>

Why the demand of oil dropped?

During the beginning of 2020, oil prices were in between 65 to 70 dollars per barrel. When coronavirus hit China, the factories began to shut, which led to a slide in oil prices. China is the biggest consumer of oil in the world.&nbsp;

On March 13, the oil market began to witness its worst slide in over a decade when the&nbsp;World Health Organization (WHO) declared Europe as the new epicentre of the epidemic. Now, the oil market has collapsed with prices dropping to 25 dollars per barrel.&nbsp;

The hindrances in the deal

The deal came after a lot of tensions between Russia and Saudi Arabia. Initially, Russia's Vladimir Putin rejected the deal and started a price war with Saudi Arabia. The US intervened as America was also suffering from losses from Shale oil reserves. US President Donald Trump urged Putin and Saudi Crown Pricne Mohammed bin Salman to work together to strike a deal.&nbsp; 
&nbsp;

The oil producting countries have finally agreed upon a production cut. As per the historic deal signed today, 10 per cent of the global oil supply would be cut.

The oil producting countries have finally agreed upon a production cut. As per the historic deal signed today, 10 per cent of the global oil supply would be cut. After a lot of hiccups, Organization of Petroleum Exporting countries (OPEC), and its allies led by Russia reached this deal. However, the deal got a tepid reaction. The two leading benchmarks of oil sellers and buyers, Brent Crude and West Texas Intermediate remained unmoved in trade today. Watch | What is the historic deal? As per the deal, the production cut of oil supply will be nine million barrels per day for May and June. The cut is four times more of what was undertaken post 2008 financial crisis. However, this might not be enough as experts predict a drop in demand of over 30 million barrels a day just in the month of April. Also read | COVID-19: A crisis manufactured? Why the demand of oil dropped? During the beginning of 2020, oil prices were in between 65 to 70 dollars per barrel. When coronavirus hit China, the factories began to shut, which led to a slide in oil prices. China is the biggest consumer of oil in the world. On March 13, the oil market began to witness its worst slide in over a decade when the World Health Organization (WHO) declared Europe as the new epicentre of the epidemic. Now, the oil market has collapsed with prices dropping to 25 dollars per barrel. The hindrances in the deal The deal came after a lot of tensions between Russia and Saudi Arabia. Initially, Russia's Vladimir Putin rejected the deal and started a price war with Saudi Arabia. The US intervened as America was also suffering from losses from Shale oil reserves. US President Donald Trump urged Putin and Saudi Crown Pricne Mohammed bin Salman to work together to strike a deal.

EXPLAINED: What is the historic oil deal all about?

Oil prices rose ten per cent on Tuesday after Russia indicated that it was open to cooperation with OPEC, a day after prices recorded biggest one-day percentage decline since the first Gulf War in 1991.

<a href="https://www.wionews.com/business-economy/oil-takes-biggest-daily-dive-in-over-a-decade-as-russia-opec-split-284881">Also Read:&nbsp;Oil takes biggest daily dive in over a decade as Russia, OPEC split</a>

Russian energy minister Alexander Novak told state television that various tools including reduction and increasing production could take place after Saudi Arabia indicated it would increase production from current level of &nbsp;9.7 million bpd.

Watch Video:

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"Saudi Aramco announces that it will provide its customers with 12.3 million barrels per day of crude oil in April," the company said in a statement.

Brent crude futures were up $3.36, nearly 10%, to $37.72 a barrel.

"The Company has agreed with its customers to provide them with such volumes starting 1 April 2020. The Company expects that this will have a positive, long-term financial effect," the statement.

Saudi Arabia's decision to ramp up oil output is set to trigger an all-out price war in a sector which has been hit due to fall in demand due to the coronavirus in China and large scale oil inventory present in the world markets with demand not likely to take place in the near future.

Oil prices rose ten per cent on Tuesday after Russia indicated that it was open to cooperation with OPEC, a day after prices recorded biggest one-day percentage decline since the first Gulf War in 1991.

Oil prices rose ten per cent on Tuesday after Russia indicated that it was open to cooperation with OPEC, a day after prices recorded biggest one-day percentage decline since the first Gulf War in 1991. Also Read: Oil takes biggest daily dive in over a decade as Russia, OPEC split Russian energy minister Alexander Novak told state television that various tools including reduction and increasing production could take place after Saudi Arabia indicated it would increase production from current level of 9.7 million bpd. Watch Video: "Saudi Aramco announces that it will provide its customers with 12.3 million barrels per day of crude oil in April," the company said in a statement. Brent crude futures were up $3.36, nearly 10%, to $37.72 a barrel. "The Company has agreed with its customers to provide them with such volumes starting 1 April 2020. The Company expects that this will have a positive, long-term financial effect," the statement. Saudi Arabia's decision to ramp up oil output is set to trigger an all-out price war in a sector which has been hit due to fall in demand due to the coronavirus in China and large scale oil inventory present in the world markets with demand not likely to take place in the near future.

Oil prices rise 10% after Russia indicates 'open to cooperation with OPEC'

Saudi Arabia, the world's top oil exporter, plans to raise its crude oil production significantly above 10 million barrels per day in April. After Russia walks out from OPEC deal.

WION Fineprint: Saudi Arabia plans big oil output hike

OPEC agreed on Thursday to cut oil output by an extra 1.5 million barrels per day (BPD) in the second quarter of 2020 to support prices that have been hit by the coronavirus outbreak but made its action conditional on Russia and others joining in.

Saudi Arabia responds aggressively to collapse of OPEC alliance with Russia

Brent slid to its biggest daily loss in more than 11 years on Friday after Russia balked at OPEC's proposed steep production cuts to stabilize prices hit by economic fallout from the coronavirus, and OPEC responded by removing limits on its own production.

Brent slid to its biggest daily loss in more than 11 years on Friday after Russia balked at OPEC's proposed steep production cuts to stabilize prices hit by economic fallout from the coronavirus, and OPEC responded by removing limits on its own production. More than 1 million US crude contracts changed hands during the session, as the three-year pact between OPEC and Russia ended in acrimony. "Prices plunged because the OPEC confab ended up being an epic fail on the part of all involved. Russia has clearly decided to employ a scorched earth approach to the oil market: every country for itself," said John Kilduff, partner at Again Capital LLC in New York. Brent futures had their its biggest daily percentage fall since December 2008, down $4.72, or 9.4%, to settle at $45.27 a barrel. It was Brent's lowest closing price since June 2017. US West Texas Intermediate crude dropped $4.62, or 10.1%, to $41.28, its lowest close since August 2016 and the largest daily percentage loss since November 2014. More than 4.58 million US front-month crude contracts changed hands this week, the busiest week ever for that contract. Both Brent and WTI are down over 30% so far this year. The number of people infected with coronavirus across the world surpassed 100,000 as the outbreak reached more countries and the economic damage intensified. Business districts began to empty and stock markets tumbled. The split between OPEC and Russia revived fears of a 2014 oil price crash, when Saudi Arabia and Russia fought for market share with U.S. shale oil producers, which have never participated in output-limiting pacts. OPEC was pushing for an additional 1.5 million barrels per day (bpd) of cuts until the end of 2020. Non-OPEC states were expected to contribute 500,000 bpd to the overall extra cut, OPEC ministers said. The new deal would have meant OPEC+ production curbs amounting to a total of 3.6 million bpd, or about 3.6% of global supply. "From (April 1) all oil producers are allowed to produce as much as they like," analysts at ABN AMRO said in a report. The Dutch bank cut its Brent oil price forecast for 2020 by 15.5% to $49 a barrel from the previous forecast of $58. The bank noted that OPEC Secretary-General Mohammad Barkindo indicated there will be more informal meetings on the proposed cuts in coming weeks, however.

Oil takes biggest daily dive in over a decade as Russia, OPEC split

OPEC holds crunch talks with its allies on Friday after the group told Russia and others it wanted an additional 1.5 million barrels per day (bpd) of oil cuts until the end of 2020, saying a big move was needed to deal with the impact of coronavirus.

Big blow to oil industry due to Covid-19 outbreak, OPEC announces massive output cuts

Oil prices rose more than 1 per cent&nbsp;on Thursday ahead of an OPEC meeting in which Saudi Arabia is expected to push the group and its allies including Russia to agree to further output cuts to support the market.

Prices were also supported by a lower-than-expected rise in crude oil inventories in the United States, alleviating some concerns of oversupply in the world's biggest oil consumer.

Brent crude rose by 67 cents, or 1.3 per cent, to $51.80 per barrel by 0436 GMT, while the US&nbsp;West Texas Intermediate (WTI) was up by 55 cents, or 1.2 per cent, at $47.33 per barrel.

Also read: <a href="https://www.wionews.com/business-economy/opec-chops-global-oil-demand-growth-forecast-over-coronavirus-280338">OPEC chops global oil demand growth forecast over coronavirus</a>

"Crude oil prices were boosted by a broad positive sentiment overnight, and a much lower-than-expected ... crude oil inventory data," said Margaret Yang, a market analyst at CMC Markets.

"The&nbsp;market is also anticipating a decent output cut to be carried out by OPEC+, as Covid-19 has brought a significant impact on the world's energy demand. More production curb is needed to shore up crude prices."

US&nbsp;crude stocks rose modestly last week, less than what analysts had expected, while US&nbsp;oil exports surged to more than 4 million barrels per day (bpd) for the first time since December, suggesting a rise in overseas demand.

Also read: <a href="https://www.wionews.com/business-economy/world-bank-announces-up-to-12-billion-in-immediate-funds-for-coronavirus-284072">World Bank announces up to $12 billion in immediate funds for coronavirus</a>

Ministers of the Organization of the Petroleum Exporting Countries (OPEC) hold their formal meeting later on Thursday, followed by a meeting of the broader OPEC+ group including Russia on Friday.

Saudi Arabia and other OPEC members are seeking to win support from Russia to join them in additional oil output cuts to prop up prices that have tumbled by a fifth this year because of the global spread of the coronavirus outbreak.

Russia has instead proposed keeping the existing cuts by the group until the end of the second quarter, sources said.

Saudi Arabia wants extra cuts of 1 million to 1.5 million bpd for the second quarter, and to keep existing cuts of 2.1 million bpd in place until the end of 2020.

"If OPEC+ settles with something in the middle of the Russian request of no change in cuts and the 1.5 million Saudi goals, that might not be enough to keep prices supported here," said Edward Moya, senior market analyst at broker OANDA.

"OPEC+ needs to send a strong message and anything below 1 million barrels in deeper production cuts will send oil prices sharply lower."

Geopolitical tensions in the Middle East also boosted prices. The Saudi-led coalition fighting in Yemen said it had foiled an attack on an oil tanker off Yemen's coast on the Arabian Sea, the Saudi state news agency SPA reported on Wednesday.

Concerns over demand growth remained, however, with the International Monetary Fund chief saying the global spread of the virus has crushed hopes for stronger economic gains this year.

Oil prices rose more than 1 per cent on Thursday ahead of an OPEC meeting in which Saudi Arabia is expected to push the group and its allies including Russia to agree to further output cuts to support the market.

Oil prices rose more than 1 per cent on Thursday ahead of an OPEC meeting in which Saudi Arabia is expected to push the group and its allies including Russia to agree to further output cuts to support the market. Prices were also supported by a lower-than-expected rise in crude oil inventories in the United States, alleviating some concerns of oversupply in the world's biggest oil consumer. Brent crude rose by 67 cents, or 1.3 per cent, to $51.80 per barrel by 0436 GMT, while the US West Texas Intermediate (WTI) was up by 55 cents, or 1.2 per cent, at $47.33 per barrel. Also read: OPEC chops global oil demand growth forecast over coronavirus "Crude oil prices were boosted by a broad positive sentiment overnight, and a much lower-than-expected ... crude oil inventory data," said Margaret Yang, a market analyst at CMC Markets. "The market is also anticipating a decent output cut to be carried out by OPEC+, as Covid-19 has brought a significant impact on the world's energy demand. More production curb is needed to shore up crude prices." US crude stocks rose modestly last week, less than what analysts had expected, while US oil exports surged to more than 4 million barrels per day (bpd) for the first time since December, suggesting a rise in overseas demand. Also read: World Bank announces up to $12 billion in immediate funds for coronavirus Ministers of the Organization of the Petroleum Exporting Countries (OPEC) hold their formal meeting later on Thursday, followed by a meeting of the broader OPEC+ group including Russia on Friday. Saudi Arabia and other OPEC members are seeking to win support from Russia to join them in additional oil output cuts to prop up prices that have tumbled by a fifth this year because of the global spread of the coronavirus outbreak. Russia has instead proposed keeping the existing cuts by the group until the end of the second quarter, sources said. Saudi Arabia wants extra cuts of 1 million to 1.5 million bpd for the second quarter, and to keep existing cuts of 2.1 million bpd in place until the end of 2020. "If OPEC+ settles with something in the middle of the Russian request of no change in cuts and the 1.5 million Saudi goals, that might not be enough to keep prices supported here," said Edward Moya, senior market analyst at broker OANDA. "OPEC+ needs to send a strong message and anything below 1 million barrels in deeper production cuts will send oil prices sharply lower." Geopolitical tensions in the Middle East also boosted prices. The Saudi-led coalition fighting in Yemen said it had foiled an attack on an oil tanker off Yemen's coast on the Arabian Sea, the Saudi state news agency SPA reported on Wednesday. Concerns over demand growth remained, however, with the International Monetary Fund chief saying the global spread of the virus has crushed hopes for stronger economic gains this year.

Oil rises more than 1% ahead of OPEC meeting to discuss supply cuts

Russian President Vladimir Putin said on Sunday that current oil prices were acceptable and that Russia had the tools to react to any negative effects of the spread of the coronavirus on the global economy, Russian news agencies reported.

Also Read:-<a href="https://www.wionews.com/opinions/russia-joins-gulf-states-in-coaching-sudans-military-227032">Russia joins Gulf states in coaching Sudan military</a>

Putin added that he sees the OPEC+ group as an effective mechanism to preserve long-term stability, adding that Russia had to be prepared for different scenarios on oil markets following a global fall in oil prices on coronavirus concerns.

 
&nbsp;

Russian President Vladimir Putin said on Sunday that current oil prices were acceptable and that Russia had the tools to react to any negative effects of the spread of the coronavirus on the global economy, Russian news agencies reported.

Russian President Vladimir Putin said on Sunday that current oil prices were acceptable and that Russia had the tools to react to any negative effects of the spread of the coronavirus on the global economy, Russian news agencies reported. Also Read:-Russia joins Gulf states in coaching Sudan military Putin added that he sees the OPEC+ group as an effective mechanism to preserve long-term stability, adding that Russia had to be prepared for different scenarios on oil markets following a global fall in oil prices on coronavirus concerns.

Russia's Putin says current oil prices acceptable

Oil prices rose on Wednesday, with Brent gaining for a seventh straight day after a slowing of new coronavirus cases in China eased demand worries and supply was curtailed by a US move to cut more Venezuelan crude from the market.

Oil prices rose on Wednesday, with Brent gaining for a seventh straight day after a slowing of new coronavirus cases in China eased demand worries and supply was curtailed by a US move to cut more Venezuelan crude from the market. Brent crude was up by 75 cents at $58.50 a barrel by 1003 GMT, while US oil was up 66 cents at $52.71 a barrel. China, the world's second-largest economy, has imposed city lockdowns and travel restrictions to contain a virus that has now killed more than 2,000 people, stoking concern over an economic slowdown and a hit to oil demand. Also Read: Oil prices fall on oversupply worries as virus hits China demand "Those in doubt of the economic impact from the virus should take heed from Apple's surprise sales warning ... Put simply, this is the surest sign yet of the coronavirus fallout on the global economy," said PVM analysts in a note. S&P Global Ratings said it expected coronavirus would deliver a "short-term blow" to economic growth in China in the first quarter, echoing findings by the International Energy Agency. Official data showed new cases in China fell for a second straight day, although the World Health Organisation has cautioned there is not enough data to know if the epidemic is being contained. Brent has risen nearly 10 per cent since falling last week to its lowest this year. The market structure is also showing signs of prompt demand for oil picking up, as the front-month Brent futures market is moving deeper back into backwardation when near-term prices are higher than later-dated prices. Also Read: China virus could hit oil prices by $3 per barrel: Goldman This week, oil prices were also buoyed by a US decision to blacklist a trading subsidiary of Russia's Rosneft which President Donald Trump's administration said provided a financial lifeline to Venezuela's government. The grouping, known as OPEC+, has been withholding supply to support prices and meets next month to decide a response to the downturn in demand resulting from the coronavirus epidemic. But in the United States, which is not party to any supply cut agreements, crude oil production has been rising as shale output grows. US shale production is expected to rise to a record 9.2 million barrels a day next month, according to the Energy Information Administration.

Oil up on slowing pace of coronavirus, Venezuela sanctions

The <a href="https://www.wionews.com/photos/united-arab-emirates-military-drawdown-raises-stakes-in-south-yemen-240889#attacks-on%C2%A0yemeni-forces-240880">United Arab Emirates</a> has issued an operating licence for the Arab world's first nuclear power plant, a senior official at the nuclear regulator said on Monday, paving the way for it to start production later this year.

The multi-billion-dollar Barakah nuclear power plant in <a href="https://www.wionews.com/world/uae-nuclear-programme-edges-toward-2018-launch-19266">Abu Dhabi</a>, which is being built by Korea Electric Power Corporation (KEPCO), was originally due to open in 2017, but the start-up of its first reactor has been delayed several times.

Also read: <a href="https://www.wionews.com/world/uae-nuclear-programme-edges-toward-2018-launch-19266">UAE nuclear programme edges toward launch</a>

The&nbsp;UAE, a key <a href="https://www.wionews.com/world/uae-nuclear-programme-edges-toward-2018-launch-19266">OPEC</a> oil producer, wants to diversify its energy mix, adding nuclear power to meet the rising demand for electricity and to help free up more crude for export. The country wants nuclear energy to provide 6 per cent&nbsp;of its total energy needs by 2050.

The licence granted to the plant's operator Nawah Energy Company will be for 60 years, Hamad al-Kaabi, deputy chairman of Federal Authority for Nuclear Regulation (FANR) told a news conference.

Also read:&nbsp;<a href="https://www.wionews.com/world/uae-denies-yemens-houthis-fired-missile-at-abu-dhabi-nuclear-reactor-25768">UAE denies Yemen's Houthis fired missile at Abu Dhabi nuclear reactor</a>

Nawah can now start preparing for commercial operations as trials will last for a few months, Kaabi said.

When completed Barakah will have four reactors with a total capacity of 5,600 megawatts (MW), and all with the same capacity. The&nbsp;UAE&nbsp;has not disclosed the total final investment in the project.

Abu Dhabi Crown Prince <a href="https://www.wionews.com/south-asia/pakistan-pm-welcomes-abu-dhabi-prince-sheikh-mohamed-bin-zayed-drives-him-to-pm-house-188542">Sheikh Mohammed bin Zayed</a> wrote on his official Twitter account:

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<blockquote class="twitter-tweet">
Today marks a new chapter in our journey for the development of peaceful nuclear energy with the issuing of the operating license for the first Barakah plant. As we prepare for the next 50 years to safeguard our needs, our biggest strength is national talent.
— محمد بن زايد (@MohamedBinZayed) <a href="https://twitter.com/MohamedBinZayed/status/1229307015442423809?ref_src=twsrc%5Etfw">February 17, 2020</a></blockquote>
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Christer Viktorsson, director-general of FANR, told Reuters that the license would allow Nawah to start loading the nuclear fuel into the reactor which would take between 2-3 weeks.

After that, the operator would need to perform tests and can start initial power production by May or June of this year. Reaching the first reactor's full production capacity would take between 8-12 months if all the tests went well, he added.

Kaabi said that construction of the second reactor was "95 per cent&nbsp;finished" and that FANR has started looking into an operating license for it.

Last month, state news agency WAM reported that an operational readiness assessment performed by the Atlanta Center of the World Association of Nuclear Operators (WANO) concluded that the first of the four planned reactors was fit for its start-up phase.

The United Arab Emirates has issued an operating licence for the Arab world's first nuclear power plant, a senior official at the nuclear regulator said on Monday, paving the way for it to start production later this year.

The United Arab Emirates has issued an operating licence for the Arab world's first nuclear power plant, a senior official at the nuclear regulator said on Monday, paving the way for it to start production later this year. The multi-billion-dollar Barakah nuclear power plant in Abu Dhabi, which is being built by Korea Electric Power Corporation (KEPCO), was originally due to open in 2017, but the start-up of its first reactor has been delayed several times. Also read: UAE nuclear programme edges toward launch The UAE, a key OPEC oil producer, wants to diversify its energy mix, adding nuclear power to meet the rising demand for electricity and to help free up more crude for export. The country wants nuclear energy to provide 6 per cent of its total energy needs by 2050. The licence granted to the plant's operator Nawah Energy Company will be for 60 years, Hamad al-Kaabi, deputy chairman of Federal Authority for Nuclear Regulation (FANR) told a news conference. Also read: UAE denies Yemen's Houthis fired missile at Abu Dhabi nuclear reactor Nawah can now start preparing for commercial operations as trials will last for a few months, Kaabi said. When completed Barakah will have four reactors with a total capacity of 5,600 megawatts (MW), and all with the same capacity. The UAE has not disclosed the total final investment in the project. Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed wrote on his official Twitter account: Today marks a new chapter in our journey for the development of peaceful nuclear energy with the issuing of the operating license for the first Barakah plant. As we prepare for the next 50 years to safeguard our needs, our biggest strength is national talent. — محمد بن زايد (@MohamedBinZayed) February 17, 2020 × Christer Viktorsson, director-general of FANR, told Reuters that the license would allow Nawah to start loading the nuclear fuel into the reactor which would take between 2-3 weeks. After that, the operator would need to perform tests and can start initial power production by May or June of this year. Reaching the first reactor's full production capacity would take between 8-12 months if all the tests went well, he added. Kaabi said that construction of the second reactor was "95 per cent finished" and that FANR has started looking into an operating license for it. Last month, state news agency WAM reported that an operational readiness assessment performed by the Atlanta Center of the World Association of Nuclear Operators (WANO) concluded that the first of the four planned reactors was fit for its start-up phase.

United Arab Emirates issues operating licence for Arab world's first nuclear plant

The <a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">OPEC </a>oil cartel on Wednesday lowered its forecast for growth in global oil demand this year by nearly a fifth due to the impact of the <a href="https://www.wionews.com/world/coronavirus-bats-being-sold-in-indonesias-wildlife-market-despite-warning-280332">coronavirus </a>outbreak in China.

In its monthly report on the world's oil market, <a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">OPEC </a>said it now expects growth in global oil demand of 0.99 million barrels per day&nbsp;this year, down from the 1.22 mbd forecast last month.

"The outbreak of the coronavirus in China during the first half of 2020 is the major factor behind this downward revision," OPEC said.

Also read:&nbsp;<a href="https://www.wionews.com/world/oil-prices-fall-on-oversupply-worries-as-virus-hits-china-demand-279722">Oil prices fall on oversupply worries as virus hits China demand</a>

<a href="https://www.wionews.com/world/oil-prices-fall-on-oversupply-worries-as-virus-hits-china-demand-279722">China </a>remains in crisis mode weeks after the epidemic exploded, with much of the country shut down.

Entire cities have been quarantined and the Lunar New Year holidays were extended in a bid to contain the outbreak of what is now known as the COVID-19 virus. International airlines have also halted flights to <a href="https://www.wionews.com/world/oil-prices-fall-on-oversupply-worries-as-virus-hits-china-demand-279722">China</a>.

Those disruptions are expected to hit economic output and <a href="https://www.wionews.com/world/oil-prices-fall-on-oversupply-worries-as-virus-hits-china-demand-279722">China </a>has been a major source of growth in demand for oil in recent years.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/slippery-slope-indias-imports-from-middle-east-at-four-year-low-275412">Slippery Slope: India's Imports from Middle East at four year low</a>

"The recent outbreak of the coronavirus in China necessitated a further downward revision to the country’s oil demand growth forecast compared to last month, as transportation fuels, notably aviation fuels, are expected to be impacted" in the first half of this year.

The impact on demand for transportation fuels was exacerbated by the outbreak coinciding with the Lunar New Year holidays, when many Chinese return home to celebrate with family.

OPEC said it had also revised lower its forecast for <a href="https://www.wionews.com/world/oil-prices-fall-on-oversupply-worries-as-virus-hits-china-demand-279722">China</a>'s economic growth this year by 0.5 per cent&nbsp;points to 5.4 percent.

"The impact of the coronavirus outbreak on <a href="https://www.wionews.com/world/oil-prices-fall-on-oversupply-worries-as-virus-hits-china-demand-279722">China</a>’s economy has added to the uncertainties surrounding global economic growth in 2020, and by extension global oil demand growth in 2020," it said.

The OPEC oil cartel on Wednesday lowered its forecast for growth in global oil demand this year by nearly a fifth due to the impact of the coronavirus outbreak in China.

The OPEC oil cartel on Wednesday lowered its forecast for growth in global oil demand this year by nearly a fifth due to the impact of the coronavirus outbreak in China. In its monthly report on the world's oil market, OPEC said it now expects growth in global oil demand of 0.99 million barrels per day this year, down from the 1.22 mbd forecast last month. "The outbreak of the coronavirus in China during the first half of 2020 is the major factor behind this downward revision," OPEC said. Also read: Oil prices fall on oversupply worries as virus hits China demand China remains in crisis mode weeks after the epidemic exploded, with much of the country shut down. Entire cities have been quarantined and the Lunar New Year holidays were extended in a bid to contain the outbreak of what is now known as the COVID-19 virus. International airlines have also halted flights to China. Those disruptions are expected to hit economic output and China has been a major source of growth in demand for oil in recent years. Also read: Slippery Slope: India's Imports from Middle East at four year low "The recent outbreak of the coronavirus in China necessitated a further downward revision to the country’s oil demand growth forecast compared to last month, as transportation fuels, notably aviation fuels, are expected to be impacted" in the first half of this year. The impact on demand for transportation fuels was exacerbated by the outbreak coinciding with the Lunar New Year holidays, when many Chinese return home to celebrate with family. OPEC said it had also revised lower its forecast for China's economic growth this year by 0.5 per cent points to 5.4 percent. "The impact of the coronavirus outbreak on China’s economy has added to the uncertainties surrounding global economic growth in 2020, and by extension global oil demand growth in 2020," it said.

OPEC chops global oil demand growth forecast over coronavirus

Oil prices sank about 1 per cent on Tuesday as fears that energy demand would take a long-term hit from the growing coronavirus outbreak outweighed hopes for more production cuts from OPEC and its allies.

Oil prices sank about 1 per cent on Tuesday as fears that energy demand would take a long-term hit from the growing coronavirus outbreak outweighed hopes for more production cuts from OPEC and its allies. Brent crude settled at $53.96 a barrel, sliding 49 cents, or 0.9 per cent, while US West Texas Intermediate (WTI) crude settled at $49.61 a barrel, losing 50 cents, or 1 per cent. Both benchmarks were at their lowest since January 2019. "I think the fear of demand destruction continues to have the market by its throat," said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut. Oil slid sharply over the past two weeks on concerns over the global economic impact of China's coronavirus, which by Tuesday had claimed 427 lives, infected 20,438 in mainland China and had been detected in roughly two dozen countries. Also Read: Oil prices slip over China virus fears In early trading, it bounced higher on hopes of further output cuts from OPEC+, comprising the Organization of the Petroleum Exporting Countries and allies including Russia. An OPEC+ committee weighed the impact on global oil demand and economic growth of the outbreak of the coronavirus at a meeting, hearing from China's envoy to the United Nations in Vienna and discussing how to respond. Sources close to the matter told Reuters that OPEC+ was considering cutting crude output by a further 500,000 barrels per day (BPD). However, the producer group could face an uphill battle to put more cuts in place so soon after the existing pact was agreed to and because of uncertainty over how long the virus crisis will last. Also read: Virus outbreak delays India's cotton exports to China "If the producer group believes the outbreak to be contained, with effects tapering out after a short period, like SARS, they have the option to stand pat and weather the lower price environment until demand returns," the global head of commodity strategy at BNP Paribas, Harry Tchilinguirian, told the Reuters Global Oil Forum. Price gains were also limited by Russian Energy Minister Alexander Novak's comments that he was uncertain it was time to tighten oil output curbs. BP finance chief Brian Gilvary told Reuters the economic impact of the coronavirus will reduce oil consumption for the whole year by 300,000 to 500,000 BPD, roughly 0.5 per cent of global demand. Goldman Sachs warned that the outbreak's impact on demand is likely to keep spot-price volatility elevated. "Oil prices are now at levels where we would expect a supply response from both OPEC and shale producers, and where China would likely seek to build crude inventories," Goldman said in a note.

Oil falls 1% as demand fears outweigh hopes for bigger OPEC+ cuts

Minister of Petroleum and Natural Gas <a href="https://www.wionews.com/india-news/government-approves-funding-of-774-million-for-northeastern-gas-pipeline-272999">Dharmendra Pradhan</a> on Saturday said that there was no dearth of crude oil in the global market and the government was keeping a sharp eye on the global developments.

Speaking to reporters on the sidelines of an event, Pradhan said, "Due to geopolitical situation, conflict in the <a href="https://www.wionews.com/world/us-iran-tensions-washington-turns-down-iraqi-request-to-remove-troops-273509">Middle East</a> there was a spike in the price of crude oil. It is subdued in the last two weeks. Let us wait and watch, let's not create panic. Things are under control. Government of India (GoI) has kept a sharp eye on global development."

He also appealed to oil-producing countries and their leadership for peace and stability in the global economy.

"There is no dearth of crude oil in the global market. We are taking it from <a href="https://www.wionews.com/business-economy/oil-edges-above-65-as-middle-east-concerns-support-273441">OPEC</a>, OPEC+, non-OPEC countries. The issue is&nbsp;price. We are appealing to oil-producing countries and responsible leaderships that there should be peace and stability in the global economy", he added.

Earlier in the day, Pradhan had launched PURVODAYA: Accelerated development of eastern India through an integrated steel hub in Kolkata.

Minister of Petroleum and Natural Gas Dharmendra Pradhan on Saturday said that there was no dearth of crude oil in the global market and the government was keeping a sharp eye on the global developments.

Minister of Petroleum and Natural Gas Dharmendra Pradhan on Saturday said that there was no dearth of crude oil in the global market and the government was keeping a sharp eye on the global developments. Speaking to reporters on the sidelines of an event, Pradhan said, "Due to geopolitical situation, conflict in the Middle East there was a spike in the price of crude oil. It is subdued in the last two weeks. Let us wait and watch, let's not create panic. Things are under control. Government of India (GoI) has kept a sharp eye on global development." He also appealed to oil-producing countries and their leadership for peace and stability in the global economy. "There is no dearth of crude oil in the global market. We are taking it from OPEC, OPEC+, non-OPEC countries. The issue is price. We are appealing to oil-producing countries and responsible leaderships that there should be peace and stability in the global economy", he added. Earlier in the day, Pradhan had launched PURVODAYA: Accelerated development of eastern India through an integrated steel hub in Kolkata.

No dearth of crude oil in global market: Union Minister Dharmendra Pradhan

<a href="https://www.wionews.com/business-economy/twitter-makes-global-changes-to-comply-with-privacy-laws-265881">Twitter&nbsp;Inc</a>&nbsp;has suspended more than a&nbsp;dozen&nbsp;accounts&nbsp;associated with Venezuela's government and&nbsp;military, including the OPEC nation's oil ministry and the armed forces' operational command.

Officials criticised the move shortly after the&nbsp;accounts&nbsp;were first suspended on Tuesday, without explanation or any announcement from&nbsp;Twitter. Some of the&nbsp;accounts&nbsp;initially suspended, including those of the central bank and finance ministry, were later restored.

"Alert! People of Venezuela, the oppressive government of the USA blocked the&nbsp;Twitter&nbsp;account for CEOFANB and others,"&nbsp;military&nbsp;commander <a href="https://www.wionews.com/world/venezuelas-maduro-seeks-to-display-military-loyalty-in-political-crisis-215491">Remigio Ceballos</a> wrote on&nbsp;Twitter, referring to the Bolivarian Armed Forces' Strategic Operational command.

Twitter&nbsp;in a statement Wednesday said the service has "proactive systems" which aim to detect "platform manipulations," but that such systems can commit errors which account owners are welcome to appeal.

The company, which offered no further comment on the&nbsp;Venezuelan&nbsp;matter, often discloses takedowns of information operations that seek to manipulate its platform.

In December,&nbsp;Twitter&nbsp;suspended tens of thousands of&nbsp;accounts&nbsp;linked to a Saudi company digging up political dissidents' personal data, and in September it blocked the account of Cuban Communist Party leader <a href="https://www.wionews.com/world/raul-castro-to-remain-head-of-cubas-communist-party-until-2021-131481">Raul Castro</a>.

It also announced three separate removals of&nbsp;Venezuelan&nbsp;accounts&nbsp;last year, two in January and one in June, representing a total of nearly 2,000&nbsp;accounts, some of them part of "a state-backed influence campaign targeting domestic audiences."

While&nbsp;Twitter&nbsp;initially suspected the removed&nbsp;Venezuelan&nbsp;accounts&nbsp;were associated with Russia's Internet Research Agency, in June it said it had new indications they were being operated by "a commercial entity originating in Venezuela."

Social media companies globally are under pressure to stem illicit online political influence campaigns.

Twitter's suspension of the official&nbsp;Venezuelan&nbsp;accounts&nbsp;came about two months after the country's foreign ministry briefly lost access to its account with the social media service. At the time, a&nbsp;<a href="https://www.wionews.com/world/twitter-suspends-thousands-of-accounts-that-were-linked-to-saudi-arabia-269402">Twitter</a>&nbsp;spokeswoman said the account was accidentally caught in a spam filter, which occasionally happens when an account tweets in sudden high volume.

Twitter Inc has suspended more than a dozen accounts associated with Venezuela's government and military, including the OPEC nation's oil ministry and the armed forces' operational command.

Twitter Inc has suspended more than a dozen accounts associated with Venezuela's government and military, including the OPEC nation's oil ministry and the armed forces' operational command. Officials criticised the move shortly after the accounts were first suspended on Tuesday, without explanation or any announcement from Twitter. Some of the accounts initially suspended, including those of the central bank and finance ministry, were later restored. "Alert! People of Venezuela, the oppressive government of the USA blocked the Twitter account for CEOFANB and others," military commander Remigio Ceballos wrote on Twitter, referring to the Bolivarian Armed Forces' Strategic Operational command. Twitter in a statement Wednesday said the service has "proactive systems" which aim to detect "platform manipulations," but that such systems can commit errors which account owners are welcome to appeal. The company, which offered no further comment on the Venezuelan matter, often discloses takedowns of information operations that seek to manipulate its platform. In December, Twitter suspended tens of thousands of accounts linked to a Saudi company digging up political dissidents' personal data, and in September it blocked the account of Cuban Communist Party leader Raul Castro. It also announced three separate removals of Venezuelan accounts last year, two in January and one in June, representing a total of nearly 2,000 accounts, some of them part of "a state-backed influence campaign targeting domestic audiences." While Twitter initially suspected the removed Venezuelan accounts were associated with Russia's Internet Research Agency, in June it said it had new indications they were being operated by "a commercial entity originating in Venezuela." Social media companies globally are under pressure to stem illicit online political influence campaigns. Twitter's suspension of the official Venezuelan accounts came about two months after the country's foreign ministry briefly lost access to its account with the social media service. At the time, a Twitter spokeswoman said the account was accidentally caught in a spam filter, which occasionally happens when an account tweets in sudden high volume.

Twitter suspends over a dozen Venezuelan government, military accounts

US&nbsp;citizens working for foreign&nbsp;oil&nbsp;companies in the southern&nbsp;Iraqi city of Basra were leaving the country on Friday, the&nbsp;oil&nbsp;ministry said after&nbsp;a&nbsp;US&nbsp;airstrike&nbsp;killed a top&nbsp;<a href="https://www.wionews.com/business-economy/oil-prices-surge-after-us-strike-kills-iranian-general-271775">Iranian&nbsp;commander</a> in&nbsp;Iraq.

Hours&nbsp;after&nbsp;the killing of&nbsp;Iranian&nbsp;Quds&nbsp;Force&nbsp;leader&nbsp;<a href="https://www.wionews.com/world/deputy-commander-of-quds-force-to-replace-soleimani-irans-supreme-leader-ayatollah-ali-khamenei-271905">Qassem Soleimani</a> and&nbsp;Iraqi militia commander <a href="https://www.wionews.com/world/deputy-head-of-group-irans-quds-force-head-qasem-soleimani-killed-hashed-al-shaabi-271762">Abu Mahdi al-Muhandis</a>, who was with him, the&nbsp;US&nbsp;embassy in Baghdad urged all its citizens to&nbsp;leave&nbsp;Iraq&nbsp;immediately.

Iraqi officials said the evacuation would not affect&nbsp;oil&nbsp;operations, production or exports from the country, the second-biggest producer in the <a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">Organization of the Petroleum Exporting Countries</a> with the output of about 4.62 million barrels per day (BPD), according to a&nbsp;survey of OPEC output.

Oil&nbsp;company sources told&nbsp;earlier on Friday that dozens of foreign&nbsp;workers&nbsp;were expected to fly out of the country. A&nbsp;witness saw a number of foreigners, including&nbsp;US&nbsp;citizens, queuing at Basra&nbsp;airport and described the atmosphere as relaxed.

Some were travelling to Dubai on&nbsp;airline FlyDubai and others were checking in at the Qatar&nbsp;Airways counter.

A spokesman for BP, which operates the giant Rumaila&nbsp;oil&nbsp;field near Basra, declined to comment. Rumaila produced around 1.5 million BPD as recently as April.

Italian energy group Eni&nbsp;said the Zubair&nbsp;<a href="https://www.wionews.com/world/iraq-protesters-lock-down-oil-field-call-strike-270855">oil&nbsp;field</a>, which produced around 475,000 BPD in 2018, was "proceeding regularly", adding it was closely monitoring the situation.

US&nbsp;major Exxon Mobil declined to comment on whether it was evacuating staff but said the production "continues&nbsp;normally" at its West Qurna 1&nbsp;oil&nbsp;concession in the south of the country near the&nbsp;Iranian&nbsp;border.

"We continue to watch the situation closely," a spokeswoman said.

Exxon removed around 60 foreign staff from West Qurna last May&nbsp;after&nbsp;attacks near its&nbsp;oil&nbsp;facilities. The employees returned about two weeks later&nbsp;after&nbsp;the government agreed to provide additional security.

Schlumberger, which also works in southern&nbsp;Iraq, is evaluating the security situation, a spokesman said, declining to comment on the&nbsp;US&nbsp;call for citizens to evacuate. Last year it won a two-year contract to drill 40 wells for Basra&nbsp;Oil&nbsp;Co.

Ian Bryant, chief executive of Canadian&nbsp;oilfield company Packers Plus, said he was "more concerned than ever" about the safety of their staff in&nbsp;Iraq, adding he was worried that&nbsp;US, British and Canadian citizens might get caught up in any unrest.

Genel, an&nbsp;oil&nbsp;producer in the autonomous region of Kurdistan in northern&nbsp;Iraq, said its operations were continuing normally. It did not comment on any staff movements.

Gulf Keystone Petroleum, which also operates in Kurdistan, said "while these events are taking place ... Gulf Keystone is closely monitoring the situation and operations at (the Shaikan field) are carrying on as per usual".

US citizens working for foreign oil companies in the southern Iraqi city of Basra were leaving the country on Friday, the oil ministry said after a US airstrike killed a top Iranian commander in Iraq.

US citizens working for foreign oil companies in the southern Iraqi city of Basra were leaving the country on Friday, the oil ministry said after a US airstrike killed a top Iranian commander in Iraq. Hours after the killing of Iranian Quds Force leader Qassem Soleimani and Iraqi militia commander Abu Mahdi al-Muhandis, who was with him, the US embassy in Baghdad urged all its citizens to leave Iraq immediately. Iraqi officials said the evacuation would not affect oil operations, production or exports from the country, the second-biggest producer in the Organization of the Petroleum Exporting Countries with the output of about 4.62 million barrels per day (BPD), according to a survey of OPEC output. Oil company sources told earlier on Friday that dozens of foreign workers were expected to fly out of the country. A witness saw a number of foreigners, including US citizens, queuing at Basra airport and described the atmosphere as relaxed. Some were travelling to Dubai on airline FlyDubai and others were checking in at the Qatar Airways counter. A spokesman for BP, which operates the giant Rumaila oil field near Basra, declined to comment. Rumaila produced around 1.5 million BPD as recently as April. Italian energy group Eni said the Zubair oil field, which produced around 475,000 BPD in 2018, was "proceeding regularly", adding it was closely monitoring the situation. US major Exxon Mobil declined to comment on whether it was evacuating staff but said the production "continues normally" at its West Qurna 1 oil concession in the south of the country near the Iranian border. "We continue to watch the situation closely," a spokeswoman said. Exxon removed around 60 foreign staff from West Qurna last May after attacks near its oil facilities. The employees returned about two weeks later after the government agreed to provide additional security. Schlumberger, which also works in southern Iraq, is evaluating the security situation, a spokesman said, declining to comment on the US call for citizens to evacuate. Last year it won a two-year contract to drill 40 wells for Basra Oil Co. Ian Bryant, chief executive of Canadian oilfield company Packers Plus, said he was "more concerned than ever" about the safety of their staff in Iraq, adding he was worried that US, British and Canadian citizens might get caught up in any unrest. Genel, an oil producer in the autonomous region of Kurdistan in northern Iraq, said its operations were continuing normally. It did not comment on any staff movements. Gulf Keystone Petroleum, which also operates in Kurdistan, said "while these events are taking place ... Gulf Keystone is closely monitoring the situation and operations at (the Shaikan field) are carrying on as per usual".

US oil workers leave Iraq after air strike on Iranian leader Qassem Soleimani

Oil&nbsp;prices kicked off the&nbsp;new&nbsp;year&nbsp;higher&nbsp;on Thursday as warming&nbsp;<a href="https://www.wionews.com/world/us-china-phase-one-trade-deal-to-be-signed-january-15-trump-271308">trade&nbsp;relations</a> between the United States and China eased demand concerns while rising&nbsp;tensions&nbsp;in the&nbsp;Middle&nbsp;East&nbsp;fuelled worries about supply.

Global benchmark <a href="https://www.wionews.com/business-economy/oil-prices-steady-on-track-for-biggest-yearly-rise-since-2016-271227">Brent crude</a> futures, rose 35 cents, or 0.5 per cent, to 66.35 a barrel by 0738 GMT, while US&nbsp;<a href="https://www.wionews.com/business-economy/global-markets-china-lifts-asian-shares-oil-up-on-drawdowns-mideast-tensions-270929">West Texas Intermediate</a> (WTI) crude was up 25 cents, or 0.4 per cent, at $61.31 per barrel.

<a href="https://www.wionews.com/opinions/wion-edit-oil-drives-the-global-economy-268116">Oil&nbsp;markets</a> were closed on Wednesday for&nbsp;New&nbsp;Year's Day.

Both benchmarks ended&nbsp;higher&nbsp;in 2019, posting their biggest annual gains since 2016, buoyed at the end of the&nbsp;year&nbsp;by a thaw in the prolonged&nbsp;trade&nbsp;dispute between the United States and China, the world's two largest economies and a deeper output cut pledged by the <a href="https://www.wionews.com/business-economy/oil-prices-inch-higher-amid-support-for-supply-cuts-lower-inventory-forecast-269909">Organization of Petroleum Exporting Countries</a> (OPEC) and its allies.

"Oil&nbsp;remains supported by the back-burner&nbsp;trade&nbsp;truce and the uptick in political unrest in Iraq," said <a href="https://www.wionews.com/business-economy/oil-prices-slip-as-weak-china-exports-highlights-trade-war-impact-267079">Stephen Innes</a>, chief Asia market strategist at AxiTrader.

The US&nbsp;military carried out airstrikes against Iran-backed Katib Hezbollah militia group over the weekend. Angry at the airstrikes, protesters stormed the US&nbsp;Embassy in Baghdad on Wednesday, although they withdrew after the United States deployed extra troops.

In 2020, Brent is forecast to average $63.07 a barrel, up from December's estimate of $62.50, while WTI is forecast to average $57.70 a barrel, up from December's estimate of $57.30, as the OPEC-led supply cuts and the expectations of a US-China&nbsp;trade&nbsp;deal boosted analysts' views on the prospects for the&nbsp;year, a Reuters poll showed.

US&nbsp;President Donald Trump said on Tuesday the US-China Phase One&nbsp;<a href="https://www.wionews.com/business-economy/oil-edges-up-on-trade-optimism-eyes-on-middle-east-tensions-270959">trade&nbsp;deal</a> would be signed on January&nbsp;15 at the White House.

January also marks the start of the deeper output cuts by OPEC and its partners, including Russia. OPEC and its allies have agreed to cut a further of 500,000 barrels per day (BPD) from January&nbsp;1, on top of their previous cut of 1.2 million BPD that started on January&nbsp;1&nbsp;a&nbsp;year&nbsp;ago.

A fall in US&nbsp;<a href="https://www.wionews.com/business-economy/oil-prices-inch-higher-amid-support-for-supply-cuts-lower-inventory-forecast-269909">crude inventories</a> last week also supported prices. US&nbsp;crude stocks fell 7.8 million barrels in the week ended December&nbsp;27, compared with analysts' expectations for a decrease of 3.2 million barrels, according to data from the <a href="https://www.wionews.com/business-economy/oil-falls-as-us-inventories-rise-but-demand-hopes-stem-bigger-drop-268973">American Petroleum Institute</a> (API) released on Tuesday.

Official data from the Energy Information Administration (EIA) is due on Friday as the release has been delayed by two days by the&nbsp;New&nbsp;Year's holiday.

"Traders will look towards Friday's EIA report for forwarding guidance on&nbsp;oil&nbsp;prices," said <a href="https://www.wionews.com/business-economy/oil-prices-steady-on-track-for-biggest-yearly-rise-since-2016-271227">Benjamin Lu</a>, an analyst at Singapore-based brokerage Phillip Futures.

Oil prices kicked off the new year higher on Thursday as warming trade relations between the United States and China eased demand concerns while rising tensions in the Middle East fuelled worries about supply.

Oil prices kicked off the new year higher on Thursday as warming trade relations between the United States and China eased demand concerns while rising tensions in the Middle East fuelled worries about supply. Global benchmark Brent crude futures, rose 35 cents, or 0.5 per cent, to 66.35 a barrel by 0738 GMT, while US West Texas Intermediate (WTI) crude was up 25 cents, or 0.4 per cent, at $61.31 per barrel. Oil markets were closed on Wednesday for New Year's Day. Both benchmarks ended higher in 2019, posting their biggest annual gains since 2016, buoyed at the end of the year by a thaw in the prolonged trade dispute between the United States and China, the world's two largest economies and a deeper output cut pledged by the Organization of Petroleum Exporting Countries (OPEC) and its allies. "Oil remains supported by the back-burner trade truce and the uptick in political unrest in Iraq," said Stephen Innes, chief Asia market strategist at AxiTrader. The US military carried out airstrikes against Iran-backed Katib Hezbollah militia group over the weekend. Angry at the airstrikes, protesters stormed the US Embassy in Baghdad on Wednesday, although they withdrew after the United States deployed extra troops. In 2020, Brent is forecast to average $63.07 a barrel, up from December's estimate of $62.50, while WTI is forecast to average $57.70 a barrel, up from December's estimate of $57.30, as the OPEC-led supply cuts and the expectations of a US-China trade deal boosted analysts' views on the prospects for the year, a Reuters poll showed. US President Donald Trump said on Tuesday the US-China Phase One trade deal would be signed on January 15 at the White House. January also marks the start of the deeper output cuts by OPEC and its partners, including Russia. OPEC and its allies have agreed to cut a further of 500,000 barrels per day (BPD) from January 1, on top of their previous cut of 1.2 million BPD that started on January 1 a year ago. A fall in US crude inventories last week also supported prices. US crude stocks fell 7.8 million barrels in the week ended December 27, compared with analysts' expectations for a decrease of 3.2 million barrels, according to data from the American Petroleum Institute (API) released on Tuesday. Official data from the Energy Information Administration (EIA) is due on Friday as the release has been delayed by two days by the New Year's holiday. "Traders will look towards Friday's EIA report for forwarding guidance on oil prices," said Benjamin Lu, an analyst at Singapore-based brokerage Phillip Futures.

Oil starts new year higher on trade optimism, Middle East in 'supply' tensions

<a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">Oil&nbsp;prices</a>&nbsp;held&nbsp;steady&nbsp;on the final day of the year on Tuesday, heading for their&nbsp;biggest&nbsp;annual&nbsp;rise&nbsp;since&nbsp;2016, supported by a thaw in the prolonged <a href="https://www.wionews.com/opinions/us-china-trade-talks-free-trade-must-not-be-derailed-198923">US-China trade</a> dispute and supply cuts.

Brent crude futures for March delivery, the new front-month contract, were at $66.66 a barrel, down 1 cent, by 0258 GMT. Brent for February delivery closed on Monday at $68.44 .

US&nbsp;<a href="https://www.wionews.com/business-economy/crude-oil-prices-fall-1-on-fears-for-global-economy-233148">West Texas Intermediate</a> (WTI) crude for February was down 3 cents at $61.65.

Brent has gained about 24 per cent&nbsp;in 2019 and WTI has&nbsp;risen roughly 36 per cent. Both benchmarks are set for their&nbsp;biggest&nbsp;yearly&nbsp;gain in three years, backed by a breakthrough in US-China trade talks and output cuts pledged by the Organization of Petroleum Exporting Countries (<a href="https://www.wionews.com/business-economy/opec-gearing-up-for-deeper-oil-cuts-russia-yet-to-agree-266198">OPEC</a>) and its allies.

The White House's trade adviser said on Monday that the US-China Phase 1 trade deal would likely be signed in the next week.

"Oil&nbsp;prices&nbsp;have followed the general de-risking drift into year-end despite a&nbsp;rise&nbsp;in Middle East tensions and last week's bullish-for-oil-price inventory draws as the broader markets appear to be losing some of that holiday cheer," said Stephen Innes, chief Asia market strategist at AxiTrader.

Tensions remain high in the Middle East after <a href="https://www.wionews.com/world/us-airstrikes-kill-25-pro-iran-militia-fighters-in-iraq-and-syria-triggering-anger-271052">US&nbsp;airstrikes</a> on Sunday against the Katib Hezbollah militia group in Iraq and Syria. Operations resumed at Iraq's Nassiriya&nbsp;oilfield resumed on Monday after protesters briefly halted production.

Looking ahead, US&nbsp;crude inventories are expected to fall by about 3.2 million barrels in the week to December 27, heading for a third consecutive weekly fall, a preliminary Reuters poll showed on Monday. US&nbsp;stockpiles fell by 5.5 million barrels in the week to December&nbsp;20. The figures will be released on Friday.

Innes said traders would also closely watch the EIA's US&nbsp;October crude production figures, set to come out later on Tuesday.

"It's expected to show robust continuous growth in the agency's short-term outlook," he said.

The United States is on&nbsp;track&nbsp;to become a net petroleum exporter on an annual basis for the first time in 2020, with output expected to&nbsp;rise&nbsp;by 930,000 barrels per day (bpd) to a record of 13.18 million bpd next year, the EIA said earlier this month.

Brokers and analysts expect growing US&nbsp;supplies to offset cuts from OPEC in 2020 amid sluggish worldwide demand, weighing on&nbsp;oil&nbsp;prices.

"Oil&nbsp;prices, though largely expected to trade positive, will face headwinds from subdued global growth momentum and robust US&nbsp;shale output levels in the first quarter," said Benjamin Lu, analyst at Singapore-based brokerage Phillip Futures.

Oil prices held steady on the final day of the year on Tuesday, heading for their biggest annual rise since 2016, supported by a thaw in the prolonged US-China trade dispute and supply cuts.

Oil prices held steady on the final day of the year on Tuesday, heading for their biggest annual rise since 2016, supported by a thaw in the prolonged US-China trade dispute and supply cuts. Brent crude futures for March delivery, the new front-month contract, were at $66.66 a barrel, down 1 cent, by 0258 GMT. Brent for February delivery closed on Monday at $68.44 . US West Texas Intermediate (WTI) crude for February was down 3 cents at $61.65. Brent has gained about 24 per cent in 2019 and WTI has risen roughly 36 per cent. Both benchmarks are set for their biggest yearly gain in three years, backed by a breakthrough in US-China trade talks and output cuts pledged by the Organization of Petroleum Exporting Countries (OPEC) and its allies. The White House's trade adviser said on Monday that the US-China Phase 1 trade deal would likely be signed in the next week. "Oil prices have followed the general de-risking drift into year-end despite a rise in Middle East tensions and last week's bullish-for-oil-price inventory draws as the broader markets appear to be losing some of that holiday cheer," said Stephen Innes, chief Asia market strategist at AxiTrader. Tensions remain high in the Middle East after US airstrikes on Sunday against the Katib Hezbollah militia group in Iraq and Syria. Operations resumed at Iraq's Nassiriya oilfield resumed on Monday after protesters briefly halted production. Looking ahead, US crude inventories are expected to fall by about 3.2 million barrels in the week to December 27, heading for a third consecutive weekly fall, a preliminary Reuters poll showed on Monday. US stockpiles fell by 5.5 million barrels in the week to December 20. The figures will be released on Friday. Innes said traders would also closely watch the EIA's US October crude production figures, set to come out later on Tuesday. "It's expected to show robust continuous growth in the agency's short-term outlook," he said. The United States is on track to become a net petroleum exporter on an annual basis for the first time in 2020, with output expected to rise by 930,000 barrels per day (bpd) to a record of 13.18 million bpd next year, the EIA said earlier this month. Brokers and analysts expect growing US supplies to offset cuts from OPEC in 2020 amid sluggish worldwide demand, weighing on oil prices. "Oil prices, though largely expected to trade positive, will face headwinds from subdued global growth momentum and robust US shale output levels in the first quarter," said Benjamin Lu, analyst at Singapore-based brokerage Phillip Futures.

Oil prices steady, on track for biggest yearly rise since 2016

<a href="https://www.wionews.com/world/paralysis-in-iraq-as-protesters-harden-position-270033">Iraqi anti-government protesters</a> blockaded an oil field and rallied in southern cities Sunday while political factions remained paralysed in their attempts to form a new government.

Several hundred people demanding jobs shut off access to the Nassiriya field, 300 kilometres (190 miles) south of Baghdad, which produces 82,000 barrels of oil per day, executives said.

The two-day-old blockade is the first to disrupt operations in OPEC's second-largest producer since the start of the popular revolt set to enter its fourth month in early January.

The youth-led protests demand the ouster of the entire political class that has run the country in the aftermath of the 2003 US-led invasion that toppled dictator Saddam Hussein.

Demonstrators have vented their fury at what they consider inept politicians who have mismanaged the economy, enriched themselves and are beholden to powerful neighbour Iran.

Sit-in protests have shut down state offices and schools across the Shiite-majority south for weeks, and demonstrators again declared a "general strike" in Diwaniya on Sunday, the first day of the working week.

Mass rallies and picket lines also paralysed Kout, al-Hilla, Amara and the shrine city of Najaf, AFP correspondents said.

Murders and abductions&nbsp;

The protests have continued despite being met with batons, tear gas and, at times, live rounds in violence that has claimed nearly 460 lives and left some 25,000 people wounded.

The activists scored a partial success in November with the resignation of prime minister <a href="https://www.wionews.com/world/iraq-parliament-approves-resignation-of-prime-minister-mahdi-265661">Adel Abdel Mahdi</a>, who however remains in charge in a caretaker role.

Pro-Iranian and other political factions have since wrangled over finding a successor -&nbsp;so far without success.

And although parliament has just voted for an electoral reform package, there has been no indication that the early polls many citizens are calling for will be held anytime soon.&nbsp;

Heightening the turmoil, President Barham Saleh last week threatened to resign rather than put forward the name of a pro-Iran candidate to form the next government.

Nassiriya student demonstrator Osama Ali praised the head of state, saying he had "foiled the attempts by parties and militiamen to kill off the revolution to protect their own interests".

"This gives us hope to continue our peaceful movement until we obtain all our demands," he told AFP.

Those demands include an end to a system that doles out state jobs according to ethnicity and religion, and a stop to the endemic corruption estimated to have swallowed up twice Iraq's GDP in 16 years.

The protesters also want justice for those activists who have been murdered, many shot dead in the streets or outside their homes.

Dozens have also reported being abducted to rural areas near <a href="https://www.wionews.com/business-economy/rockets-hit-military-base-near-baghdad-airport-6-wounded-military-statement-267191">Baghdad</a> for several hours or days before being abandoned by the roadside.

The United Nations has accused "militias" of waging a sweeping campaign of threats, kidnappings and murders of demonstrators.

The state-run Human Rights Commission says it has still not heard from 56 missing activists.

Iraqi anti-government protesters blockaded an oil field and rallied in southern cities Sunday while political factions remained paralysed in their attempts to form a new government.

Iraqi anti-government protesters blockaded an oil field and rallied in southern cities Sunday while political factions remained paralysed in their attempts to form a new government. Several hundred people demanding jobs shut off access to the Nassiriya field, 300 kilometres (190 miles) south of Baghdad, which produces 82,000 barrels of oil per day, executives said. The two-day-old blockade is the first to disrupt operations in OPEC's second-largest producer since the start of the popular revolt set to enter its fourth month in early January. The youth-led protests demand the ouster of the entire political class that has run the country in the aftermath of the 2003 US-led invasion that toppled dictator Saddam Hussein. Demonstrators have vented their fury at what they consider inept politicians who have mismanaged the economy, enriched themselves and are beholden to powerful neighbour Iran. Sit-in protests have shut down state offices and schools across the Shiite-majority south for weeks, and demonstrators again declared a "general strike" in Diwaniya on Sunday, the first day of the working week. Mass rallies and picket lines also paralysed Kout, al-Hilla, Amara and the shrine city of Najaf, AFP correspondents said. Murders and abductions The protests have continued despite being met with batons, tear gas and, at times, live rounds in violence that has claimed nearly 460 lives and left some 25,000 people wounded. The activists scored a partial success in November with the resignation of prime minister Adel Abdel Mahdi, who however remains in charge in a caretaker role. Pro-Iranian and other political factions have since wrangled over finding a successor - so far without success. And although parliament has just voted for an electoral reform package, there has been no indication that the early polls many citizens are calling for will be held anytime soon. Heightening the turmoil, President Barham Saleh last week threatened to resign rather than put forward the name of a pro-Iran candidate to form the next government. Nassiriya student demonstrator Osama Ali praised the head of state, saying he had "foiled the attempts by parties and militiamen to kill off the revolution to protect their own interests". "This gives us hope to continue our peaceful movement until we obtain all our demands," he told AFP. Those demands include an end to a system that doles out state jobs according to ethnicity and religion, and a stop to the endemic corruption estimated to have swallowed up twice Iraq's GDP in 16 years. The protesters also want justice for those activists who have been murdered, many shot dead in the streets or outside their homes. Dozens have also reported being abducted to rural areas near Baghdad for several hours or days before being abandoned by the roadside. The United Nations has accused "militias" of waging a sweeping campaign of threats, kidnappings and murders of demonstrators. The state-run Human Rights Commission says it has still not heard from 56 missing activists.

Iraq protesters lock down oil field, call strike

<a href="https://www.wionews.com/business-economy/oil-eases-but-supported-by-trade-deal-hopes-269679">Oil&nbsp;prices</a>&nbsp;edged&nbsp;higher&nbsp;on Tuesday in thin pre-Christmas trading after Russia's energy minister said cooperation with OPEC to&nbsp;support&nbsp;the market would continue and as analysts&nbsp;forecast&nbsp;a second weekly decline in <a href="https://www.wionews.com/business-economy/oil-falls-as-us-inventories-rise-but-demand-hopes-stem-bigger-drop-268973">US&nbsp;crude inventories</a>.

Brent crude was up 5 cents at $66.44 a barrel by 0321 GMT. US&nbsp;West Texas Intermediate was 1 cent&nbsp;higher&nbsp;at $60.53 a barrel.

OPEC, Russia and other producers that have linked up to curtail production and&nbsp;support&nbsp;prices&nbsp;will continue their cooperation as long as it is "effective and brings results," Russian energy minister <a href="https://www.wionews.com/business-economy/opec-and-allies-prepare-to-deepen-oil-output-cuts-266447">Alexander Novak</a> said in an interview on Monday.

Cooperation with the Organization of the Petroleum Exporting Countries (<a href="https://www.wionews.com/business-economy/oil-slips-as-opec-gears-up-to-confirm-supply-cut-266600">OPEC</a>) would continue "until the market requires it," Novak added.

OPEC and other producers agreed in November to extend and deepen output curbs in place since 2017. The reduction of output could see as much as 2.1 million barrels per day (bpd) taken off the market, or about 2 per cent&nbsp;of global demand.

Still, OPEC needs to do more to balance out the market on a sustainable basis, Bjornar Tonhaugen, head of&nbsp;oil&nbsp;market research at Rystad Energy said in a note.

"The OPEC&nbsp;cuts&nbsp;didn't fully solve the problem&nbsp;instead they offer a light bandage to get through the first quarter of 2020," said Tonhaugen, adding "after that, we believe the market will begin to realize the looming oversupply."

US&nbsp;producers have been happy to fill any gaps in the market, pumping ever greater amounts of crude to reach a record high of around 13 million bpd in November.

That has helped swell inventories, which have been stubbornly resistant to drawdowns. US&nbsp;stocks are up around 1 per cent&nbsp;this year.

Crude stocks are, however, expected to have fallen by about 1.8 million barrels last week, a second week of declines, according to a preliminary&nbsp;poll.

Still, <a href="https://www.wionews.com/business-economy/oil-gains-on-us-crude-stocks-fall-opec-comments-on-slower-us-shale-growth-262061">gasoline stocks</a> are expected to have risen for a seventh week in a row and distillate inventories are&nbsp;forecast&nbsp;to have gained for a fifth consecutive week.

Oil prices edged higher on Tuesday in thin pre-Christmas trading after Russia's energy minister said cooperation with OPEC to support the market would continue and as analysts forecast a second weekly decline in US crude inventories.

Oil prices edged higher on Tuesday in thin pre-Christmas trading after Russia's energy minister said cooperation with OPEC to support the market would continue and as analysts forecast a second weekly decline in US crude inventories. Brent crude was up 5 cents at $66.44 a barrel by 0321 GMT. US West Texas Intermediate was 1 cent higher at $60.53 a barrel. OPEC, Russia and other producers that have linked up to curtail production and support prices will continue their cooperation as long as it is "effective and brings results," Russian energy minister Alexander Novak said in an interview on Monday. Cooperation with the Organization of the Petroleum Exporting Countries (OPEC) would continue "until the market requires it," Novak added. OPEC and other producers agreed in November to extend and deepen output curbs in place since 2017. The reduction of output could see as much as 2.1 million barrels per day (bpd) taken off the market, or about 2 per cent of global demand. Still, OPEC needs to do more to balance out the market on a sustainable basis, Bjornar Tonhaugen, head of oil market research at Rystad Energy said in a note. "The OPEC cuts didn't fully solve the problem instead they offer a light bandage to get through the first quarter of 2020," said Tonhaugen, adding "after that, we believe the market will begin to realize the looming oversupply." US producers have been happy to fill any gaps in the market, pumping ever greater amounts of crude to reach a record high of around 13 million bpd in November. That has helped swell inventories, which have been stubbornly resistant to drawdowns. US stocks are up around 1 per cent this year. Crude stocks are, however, expected to have fallen by about 1.8 million barrels last week, a second week of declines, according to a preliminary poll. Still, gasoline stocks are expected to have risen for a seventh week in a row and distillate inventories are forecast to have gained for a fifth consecutive week.

Oil prices inch higher in pre-Christmas trading

Iraqi protesters stepped up their demonstrations Tuesday with the authorities in Baghdad increasingly paralysed as they seek a way out of a political impasse.

Once again the capital's iconic Tahrir Square began filling early in the day, with protesters making clear their opposition to names touted by the establishment to fill the post of <a href="https://www.wionews.com/world/thousands-protest-in-iraq-as-deadline-for-new-pm-looms-269585">prime minister</a>.

Portrait pictures of these candidates marked by a huge red cross increasingly adorn facades of buildings and tents in the protest area.&nbsp;

And once again the main avenues and roads in cities in the south of the country were blocked, as well as entrances to schools, universities and government buildings.

After dwindling in recent weeks, the <a href="https://www.wionews.com/world/iraq-forces-fire-on-baghdad-protesters-after-four-killed-in-karbala-259925">civil disobedience campaign</a> has rediscovered its vigour, as the protesters seek to uproot a political system condemned as deeply corrupt.

Negotiations over a candidate to replace premier <a href="https://www.wionews.com/world/iraq-parliament-approves-resignation-of-prime-minister-mahdi-265661">Adel Abdel Mahdi</a>, who quit in November in the face of protests against corruption and unemployment,&nbsp;have remained deadlocked since the latest in a series of deadlines expired at midnight on Sunday.

While a pro-Iran camp has tried to impose a candidate, Iraqi <a href="https://www.wionews.com/world/iraq-parliament-approves-cabinet-resignation-265571">President Barham Saleh</a> has reportedly put up resistance.

For Iraqis protesting since October 1, the system installed by the United States after it led a military coalition to overthrow dictator Saddam Hussein in 2003 has become overly beholden to Iran and is beyond reform.

A long-promised economic revival in <a href="https://www.wionews.com/business-economy/oil-market-to-remain-oversupplied-despite-opec-pact-says-iea-267861">OPEC's</a> number two oil producer never came, protesters say, with more than half of all oil revenues syphoned off by crooked politicians and their cronies.

Watch:&nbsp;Thousands Protest in Iraq Ahead of Deadline to Name New PM

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Rallies have continued despite a campaign of intimidation that has included targeted killings and abductions of activists, which the <a href="https://www.wionews.com/world/united-nations-says-this-must-stop-after-iraqi-protest-violence-kills-nearly-100-253995">United Nations</a> blames on militias.

Politicians have been desperately trying to agree on who will be the next prime minister. But unable to find a parliamentary majority, time is running out.

The timetable set out in the constitution has already been overshot, with new negotiations due on Tuesday in the face of intransigence by pro-Iranian parties.&nbsp;

Parliament failed to meet as planned on Monday as there was no quorum.

"Every hour they come up with a new candidate, but we want someone who is independent," said one young demonstrator, standing in front of burning tyres on a road into southern Basra.

"We're ready to continue the general strike, a day, two days, three days even a hundred years if that's what it takes," he added, his face covered by a scarf to keep out the acrid smoke.

Officials say Iran wants to install <a href="https://www.wionews.com/world/students-flood-iraq-streets-defying-government-and-parents-258522">Qusay&nbsp;al-Suhail</a>, who served as higher education minister in the government of Abdel Mahdi.

Parliament speaker Mohammed al-Halbusi, a Sunni, has announced he has dropped his support for Suhail, after a source in the presidency said Saleh had vetoed the proposed appointment.&nbsp;

Instead,&nbsp;<a href="https://www.wionews.com/world/calm-returns-after-iraq-protests-but-political-crisis-remains-254513">Halbusi</a> has urged his pro-Iran allies to come forward with another name.

As soon as the name of Assaad al-Aidani, the governor of Basra, began circulating, however, protests erupted in his oil-rich southern province, with demonstrators blocking roads to the ports, an AFP correspondent said.

Roads to Nasiriyah, Diwaniyah and Hilla in the south were also cut as well as in Kut and the holy Shiite shrine city of Najaf, as strikers stopped government officials from reaching work and closed the doors to schools.

After "all the sacrifices" with close to 460 dead since the start of the <a href="https://www.wionews.com/world/iraq-cleric-urges-cabinet-change-as-protesters-regroup-after-crackdown-265258">demonstrations</a> in early October and 25,000 wounded, the protesters say they will not return home "until all their goals are met".

They are demanding a new constitution, a new electoral law and a complete overhaul of the political system, in a country with crippling unemployment, especially among the young people who make up more than half the population.

Iraqi protesters stepped up their demonstrations Tuesday with the authorities in Baghdad increasingly paralysed as they seek a way out of a political impasse. Once again the capital's iconic Tahrir Square began filling early in the day, with protesters making clear their opposition to names touted by the establishment to fill the post of prime minister.

Iraqi protesters stepped up their demonstrations Tuesday with the authorities in Baghdad increasingly paralysed as they seek a way out of a political impasse. Once again the capital's iconic Tahrir Square began filling early in the day, with protesters making clear their opposition to names touted by the establishment to fill the post of prime minister. Portrait pictures of these candidates marked by a huge red cross increasingly adorn facades of buildings and tents in the protest area. And once again the main avenues and roads in cities in the south of the country were blocked, as well as entrances to schools, universities and government buildings. After dwindling in recent weeks, the civil disobedience campaign has rediscovered its vigour, as the protesters seek to uproot a political system condemned as deeply corrupt. Negotiations over a candidate to replace premier Adel Abdel Mahdi, who quit in November in the face of protests against corruption and unemployment, have remained deadlocked since the latest in a series of deadlines expired at midnight on Sunday. While a pro-Iran camp has tried to impose a candidate, Iraqi President Barham Saleh has reportedly put up resistance. For Iraqis protesting since October 1, the system installed by the United States after it led a military coalition to overthrow dictator Saddam Hussein in 2003 has become overly beholden to Iran and is beyond reform. A long-promised economic revival in OPEC's number two oil producer never came, protesters say, with more than half of all oil revenues syphoned off by crooked politicians and their cronies. Watch: Thousands Protest in Iraq Ahead of Deadline to Name New PM × Rallies have continued despite a campaign of intimidation that has included targeted killings and abductions of activists, which the United Nations blames on militias. Politicians have been desperately trying to agree on who will be the next prime minister. But unable to find a parliamentary majority, time is running out. The timetable set out in the constitution has already been overshot, with new negotiations due on Tuesday in the face of intransigence by pro-Iranian parties. Parliament failed to meet as planned on Monday as there was no quorum. "Every hour they come up with a new candidate, but we want someone who is independent," said one young demonstrator, standing in front of burning tyres on a road into southern Basra. "We're ready to continue the general strike, a day, two days, three days even a hundred years if that's what it takes," he added, his face covered by a scarf to keep out the acrid smoke. Officials say Iran wants to install Qusay al-Suhail, who served as higher education minister in the government of Abdel Mahdi. Parliament speaker Mohammed al-Halbusi, a Sunni, has announced he has dropped his support for Suhail, after a source in the presidency said Saleh had vetoed the proposed appointment. Instead, Halbusi has urged his pro-Iran allies to come forward with another name. As soon as the name of Assaad al-Aidani, the governor of Basra, began circulating, however, protests erupted in his oil-rich southern province, with demonstrators blocking roads to the ports, an AFP correspondent said. Roads to Nasiriyah, Diwaniyah and Hilla in the south were also cut as well as in Kut and the holy Shiite shrine city of Najaf, as strikers stopped government officials from reaching work and closed the doors to schools. After "all the sacrifices" with close to 460 dead since the start of the demonstrations in early October and 25,000 wounded, the protesters say they will not return home "until all their goals are met". They are demanding a new constitution, a new electoral law and a complete overhaul of the political system, in a country with crippling unemployment, especially among the young people who make up more than half the population.

Iraq: Protesters harder position, further paralysing the country

Saudi Arabia and Kuwait signed an agreement Tuesday to resume pumping at two major oilfields in a shared neutral zone shut for five years due to a bilateral disagreement, officials said.

Kuwait's oil minister <a href="https://www.wionews.com/business-economy/oil-falls-more-than-2-on-us-china-trade-deal-doubts-stronger-dollar-256002">Khaled al-Fadhel</a> said on Twitter that the memorandum of understanding signed with Saudi Arabia included "the resumption of production in the divided zone."

The state-run KUNA news agency reported that the two countries also signed an agreement on the demarcation of land and maritime borders in the neutral zone.

<a href="https://www.wionews.com/world/kuwait-announces-new-government-kuna-268683">KUNA</a> did not give details on the contents of the deal which likely revolves around amending previous border agreements between the two Arab nations.

The two fields were pumping some 500,000 barrels per day before production was halted, first at Khafji in October 2014 and then at Wafra seven months later, over a dispute between the neighbours.

Riyadh said at the time that the decision was due to environmental issues.&nbsp;

The oil produced in the neutral zone in the border area is shared equally between the two nations.

Khafji, an offshore field, was jointly operated by Kuwait Gulf Oil Co&nbsp;and Saudi Aramco Gulf Operations, while the onshore Wafra field was operated by KGOC and Saudi Arabian Chevron.&nbsp;

Kuwait had blamed Saudi Arabia for unilaterally halting output at Khafji, noting it was entitled to five years' notice under a joint agreement signed in 1965.

The two countries have been negotiating to resolve the row and resume production since June 2015.

The talks involved Kuwait's Emir Sheikh Sabah al-Ahmad Al-Sabah visiting Riyadh and Saudi Crown Prince <a href="https://www.wionews.com/pakistan/cash-strapped-pakistan-to-host-saudi-crown-prince-197175">Mohammed bin Salman</a> visiting Kuwait City.

Tuesday's agreement comes as oil prices are under pressure due to abundant reserves and weak global economic growth.&nbsp;

Continued soft pricing has prompted <a href="https://www.wionews.com/business-economy/opec-gearing-up-for-deeper-oil-cuts-russia-yet-to-agree-266198">OPEC</a> and its allies to make deeper production cuts starting next month.

OPEC kingpin Saudi Arabia pumps just under 10 million barrels per day (bpd), while Kuwait produces around 2.7 million bpd.

Saudi Arabia and Kuwait signed an agreement Tuesday to resume pumping at two major oilfields in a shared neutral zone shut for five years due to a bilateral disagreement, officials said.

Saudi Arabia and Kuwait signed an agreement Tuesday to resume pumping at two major oilfields in a shared neutral zone shut for five years due to a bilateral disagreement, officials said. Kuwait's oil minister Khaled al-Fadhel said on Twitter that the memorandum of understanding signed with Saudi Arabia included "the resumption of production in the divided zone." The state-run KUNA news agency reported that the two countries also signed an agreement on the demarcation of land and maritime borders in the neutral zone. KUNA did not give details on the contents of the deal which likely revolves around amending previous border agreements between the two Arab nations. The two fields were pumping some 500,000 barrels per day before production was halted, first at Khafji in October 2014 and then at Wafra seven months later, over a dispute between the neighbours. Riyadh said at the time that the decision was due to environmental issues. The oil produced in the neutral zone in the border area is shared equally between the two nations. Khafji, an offshore field, was jointly operated by Kuwait Gulf Oil Co and Saudi Aramco Gulf Operations, while the onshore Wafra field was operated by KGOC and Saudi Arabian Chevron. Kuwait had blamed Saudi Arabia for unilaterally halting output at Khafji, noting it was entitled to five years' notice under a joint agreement signed in 1965. The two countries have been negotiating to resolve the row and resume production since June 2015. The talks involved Kuwait's Emir Sheikh Sabah al-Ahmad Al-Sabah visiting Riyadh and Saudi Crown Prince Mohammed bin Salman visiting Kuwait City. Tuesday's agreement comes as oil prices are under pressure due to abundant reserves and weak global economic growth. Continued soft pricing has prompted OPEC and its allies to make deeper production cuts starting next month. OPEC kingpin Saudi Arabia pumps just under 10 million barrels per day (bpd), while Kuwait produces around 2.7 million bpd.

Saudi, Kuwait signed an agreement to resume joint oil output

Oil prices remained atop three-month peaks on Thursday, extending a robust streak that began a week ago, as thawing trade relations between the United States and China supported global markets.

Brent crude futures edged up 8 cents to $66.25 a barrel by 0645 GMT, while US&nbsp;West Texas Intermediate (WTI) crude gained 4 cents to $60.97. Trading volume was thin, with not even news of President <a href="https://www.wionews.com/opinions/donald-trumps-attitude-towards-india-unpredictable-unreliable-238560">Donald Trump</a>'s impeachment by the US&nbsp;House of Representatives stirring the oil market.

"We're near the top of trading ranges for both Brent and WTI so it's interesting to see them holding here," said Michael McCarthy, chief market analyst at CMC Markets in Sydney.

While there is a clear uptrend in place on the daily technical price chart for<a href="https://www.wionews.com/business-economy/international-oil-prices-stabilise-as-opec-production-cut-looms-178478"> WTI</a> to potentially move towards $61.50 a barrel, there are also near-term risks - touching that price level may encourage traders to sell, McCarthy said.

"(Trading) volumes are terrible. A lot of people have given up for the year with no scheduled events to push oil markets around," he said.

The trend leaves oil prices set to rise for a third consecutive week, surfing momentum from announcements this month about deeper output cuts by major producers as well as the 'Phase One' deal between the United States and China to resolve their long-running trade war.

The deal between the world's two largest economies has improved the global economic outlook, lifted the prospect for higher energy demand next year and underpinned oil prices.

In a further sign of thawing relations, China's finance ministry on Thursday published a new list of six US products that will be exempt from tariffs starting December&nbsp;26.

Just the week before, the Organization of the Petroleum Exporting Countries (<a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">OPEC</a>) and non-OPEC producers such as Russia agreed to deepen production cuts by a further 500,000 barrels per day (bpd) from January 1 on top of previous reductions of 1.2 million bpd.

According to weekly data released by the Energy Information Administration on Wednesday, US&nbsp;crude inventories dropped 1.1 million barrels in the week to December&nbsp;13, while gasoline and distillate stockpiles rose.

Oil prices remained atop three-month peaks on Thursday, extending a robust streak that began a week ago, as thawing trade relations between the United States and China supported global markets.

Oil prices remained atop three-month peaks on Thursday, extending a robust streak that began a week ago, as thawing trade relations between the United States and China supported global markets. Brent crude futures edged up 8 cents to $66.25 a barrel by 0645 GMT, while US West Texas Intermediate (WTI) crude gained 4 cents to $60.97. Trading volume was thin, with not even news of President Donald Trump's impeachment by the US House of Representatives stirring the oil market. "We're near the top of trading ranges for both Brent and WTI so it's interesting to see them holding here," said Michael McCarthy, chief market analyst at CMC Markets in Sydney. While there is a clear uptrend in place on the daily technical price chart for WTI to potentially move towards $61.50 a barrel, there are also near-term risks - touching that price level may encourage traders to sell, McCarthy said. "(Trading) volumes are terrible. A lot of people have given up for the year with no scheduled events to push oil markets around," he said. The trend leaves oil prices set to rise for a third consecutive week, surfing momentum from announcements this month about deeper output cuts by major producers as well as the 'Phase One' deal between the United States and China to resolve their long-running trade war. The deal between the world's two largest economies has improved the global economic outlook, lifted the prospect for higher energy demand next year and underpinned oil prices. In a further sign of thawing relations, China's finance ministry on Thursday published a new list of six US products that will be exempt from tariffs starting December 26. Just the week before, the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers such as Russia agreed to deepen production cuts by a further 500,000 barrels per day (bpd) from January 1 on top of previous reductions of 1.2 million bpd. According to weekly data released by the Energy Information Administration on Wednesday, US crude inventories dropped 1.1 million barrels in the week to December 13, while gasoline and distillate stockpiles rose.

Oil prices surf US-China trade thaw to 3-month highs

<a href="https://www.wionews.com/business-economy/oil-prices-jump-to-61-over-opec-supply-cut-reports-265782">Oil prices</a> fell on Monday after data showing China's overall exports of goods and services shrank for a fourth straight month, sending shivers through a market already concerned about damage being down to global demand by the Sino-US&nbsp;trade war.

Brent futures were down 21 cents, or 0.3 per cent, at $64.18 per barrel by 0220 GMT, after gaining about 3&nbsp;per cent&nbsp;last week on the news that OPEC and its allies would deepen output cuts.

West Texas Intermediate oil futures were down 28 cents, or 0.47&nbsp;per cent&nbsp;to $58.92 a barrel, having risen about 7&nbsp;per cent&nbsp;last week on the prospects for lower production from '<a href="https://www.wionews.com/business-economy/saudi-energy-minister-talks-opec-unity-backs-aramco-to-soar-266793">OPEC+</a>', which is made up of the Organization of the Petroleum Exporting Countries (<a href="https://www.wionews.com/business-economy/opec-gearing-up-for-deeper-oil-cuts-russia-yet-to-agree-266198">OPEC</a>) and associated producers including Russia.

Monday's sudden chill came after customs data released on Sunday showed exports from the world's second-biggest economy in November fell 1.1&nbsp;per cent&nbsp;from a year earlier - a sharp reversal from expectations for a 1per cent&nbsp;rise in a Reuters poll.

The weak start to the week came despite data showing China's crude imports jumped to a record, revealing just how deep jitters are embedded in the market over the US-China trade row that has stymied global growth and oil demand.

The sagging export data is "a casualty again of the protracted trade war," said Stephen Innes chief&nbsp;Asia market strategist at AxiTrader.

Washington and Beijing have been trying to agree on a trade deal that will end tit-for-tat tariffs, but talks have dragged on for months as they wrangle over key details.

Monday's declines also went against signs on Friday that China was easing its stance on resolving its trade dispute with the United States, confirming on Friday that it was waiving import tariffs for some soybean and pork shipments.

The price drops also put an end to a strong run in previous sessions fuelled by hopes for the OPEC+ production curb deal.

On Friday, those producers agreed to deepen their output cuts from 1.2 million barrels per day (BPD) to 1.7 million BPD, representing about 1.7 per cent&nbsp;of global production.

"What made the announcement constructive was the fact that Saudi Arabia said it will produce around 400,000 BPD below its new quota level," ING Economics said in a note.

"This would effectively take OPEC+ cuts to 2.1 million BPD," ING said.

Still, US&nbsp;production has surged since the OPEC+ cuts were first introduced in 2017 in an attempt to drain a supply glut that had long weighed on prices. American output has risen even as the drill count has fallen, reflecting more efficient well extraction.

Energy services firm Baker Hughes said in its closely watched weekly drilling report on Friday that the US&nbsp;drill count fell in the week to December&nbsp;6 a seventh week of decline.

Drilling companies cut five oil rigs, leaving a total of 661, the lowest since April 2017.

Oil prices fell on Monday after data showing China's overall exports of goods and services shrank for a fourth straight month, sending shivers through a market already concerned about damage being down to global demand by the Sino-US trade war.

Oil prices fell on Monday after data showing China's overall exports of goods and services shrank for a fourth straight month, sending shivers through a market already concerned about damage being down to global demand by the Sino-US trade war. Brent futures were down 21 cents, or 0.3 per cent, at $64.18 per barrel by 0220 GMT, after gaining about 3 per cent last week on the news that OPEC and its allies would deepen output cuts. West Texas Intermediate oil futures were down 28 cents, or 0.47 per cent to $58.92 a barrel, having risen about 7 per cent last week on the prospects for lower production from 'OPEC+', which is made up of the Organization of the Petroleum Exporting Countries (OPEC) and associated producers including Russia. Monday's sudden chill came after customs data released on Sunday showed exports from the world's second-biggest economy in November fell 1.1 per cent from a year earlier - a sharp reversal from expectations for a 1per cent rise in a Reuters poll. The weak start to the week came despite data showing China's crude imports jumped to a record, revealing just how deep jitters are embedded in the market over the US-China trade row that has stymied global growth and oil demand. The sagging export data is "a casualty again of the protracted trade war," said Stephen Innes chief Asia market strategist at AxiTrader. Washington and Beijing have been trying to agree on a trade deal that will end tit-for-tat tariffs, but talks have dragged on for months as they wrangle over key details. Monday's declines also went against signs on Friday that China was easing its stance on resolving its trade dispute with the United States, confirming on Friday that it was waiving import tariffs for some soybean and pork shipments. The price drops also put an end to a strong run in previous sessions fuelled by hopes for the OPEC+ production curb deal. On Friday, those producers agreed to deepen their output cuts from 1.2 million barrels per day (BPD) to 1.7 million BPD, representing about 1.7 per cent of global production. "What made the announcement constructive was the fact that Saudi Arabia said it will produce around 400,000 BPD below its new quota level," ING Economics said in a note. "This would effectively take OPEC+ cuts to 2.1 million BPD," ING said. Still, US production has surged since the OPEC+ cuts were first introduced in 2017 in an attempt to drain a supply glut that had long weighed on prices. American output has risen even as the drill count has fallen, reflecting more efficient well extraction. Energy services firm Baker Hughes said in its closely watched weekly drilling report on Friday that the US drill count fell in the week to December 6 a seventh week of decline. Drilling companies cut five oil rigs, leaving a total of 661, the lowest since April 2017.

Oil prices slip as weak China exports highlights trade war impact

<a href="https://www.wionews.com/business-economy/global-markets-biting-bears-sink-world-shares-to-1-year-low-173030">World shares</a> ticked up on Friday, buoyed by comments from US&nbsp;President <a href="https://www.wionews.com/business-economy/global-stocks-rattled-after-donald-trump-says-no-deadline-on-us-china-trade-deal-266025">Donald Trump</a> that talks aimed at dialing down the damaging trade war with China were "moving right along".

Trump's relatively upbeat tone in comments on Thursday was enough to encourage riskier bets by investors, despite a lack of agreement over whether existing tariffs should be dropped as part of an initial deal to ease the long standoff.

European shares, including the broader Euro STOXX 600 gained 0.3&nbsp;per cent&nbsp;in early trade, with indexes in Frankfurt and Paris up by similar amounts.

The cautiously buoyant mood mirrored an appetite for riskier bets in Asia, where MSCI's broadest index of <a href="https://www.wionews.com/business-economy/flare-up-of-sino-us-tensions-over-hong-kong-knocks-world-shares-off-22-month-high-263395">Asia-Pacific shares</a> outside Japan was up 0.5 per cent.

The MSCI world equity index, which tracks shares in 47 countries, added 0.2&nbsp;per cent&nbsp;to 554.91 points, not far off a record high of 550.63 hit last January but still on track for a weekly fall.

Investors were hoping the two sides can reach a compromise to at least avoid their worst fear: that the United States goes ahead with its final batch of tariffs on about $156 billion of Chinese exports, due to take effect on December&nbsp;15.

Trump's remarks came after Chinese officials reiterated demands that some US&nbsp;tariffs be rolled back if the sides are to reach a so-called phase one deal.

Markets had expected the sides to seal the initial deal in November. Instead, investors are nervously watching the approaching deadline for the new US&nbsp;levies.

"The difficulty with this is it's very difficult to time and to trade," said Jeremy Gatto, a multi-asset investment manager at Unigestion. "We are relatively favorable towards riskier assets in general but with hedges."

Gatto said those hedges include currencies such as the US&nbsp;dollar, Japanese yen, and Australian dollar, as well as options.

Investors have already taken precautions against a possible slide in stocks by buying put options, with demand for "put" options to hedge exposure to the S&amp;P500 index climbing in recent days.

In one sign of detente, China said it would waive import tariffs imposed last year on some US&nbsp;soybean and pork shipments. Beijing is rushing to source more meat to fill a gap in protein supplies.

China stocks posted their biggest weekly advance in nearly two months, with the blue-chips up 0.6 per cent.

Investors were looking out for US&nbsp;jobs data, due out at 1330 GMT. The non-farm payrolls report is expected to show 180,000 new jobs were created in November, up from 128,000 a month earlier.

Signs of buoyancy in the labour market would soothe anxiety over the impact of the trade war.

"Markets are in consolidation phase," said Salman Ahmed, chief investment strategist at Lombard Odier. "It's wait and watch for first, how does the non-farm payrolls look and, more importantly, the December&nbsp;15 tariff deadline."

In other economic data, German industrial output fell unexpectedly in October, pointing to persistent weakness in the backbone of the economy. Berlin said, however, that new orders and business expectations suggest output may stabilise.

While markets have largely priced in the view that the world economy has dodged the bullet of recession, there are still signs of fragility in many major economies.

Oil lost ground as investors awaited a meeting of OPEC and its allies later on Friday, which is expected to formally agree to more output curbs in early 2020.

Details of the agreement and how the cuts will be distributed among producers still need to be ratified at a meeting of OPEC and non-OPEC nations, otherwise known as OPEC+, in Vienna.

Brent crude futures were flat at $63.46 a barrel after earlier gaining ground.

The agreement coincided with the initial public offering of state oil firm Saudi Aramco, which was priced at the top of its range and raised $25.6 billion in the world's biggest IPO.

In currencies, the British pound stepped back some 0.2 per cent. Sterling spiked to a seven-month high of $1.3166 on Thursday on bets that next week's election will give the Conservative party the majority it needs to deliver Brexit, ending near-term uncertainty.

The pound last stood at $1.313. It hit 2-1/2-year highs versus the euro.

Against a basket of currencies the dollar has dropped every day this week, falling to a one-month low of 97.356 on Thursday. The index was last down a smidgeon at 97.370 and has lost nearly 1 per cent&nbsp;this week.

World shares ticked up on Friday, buoyed by comments from US President Donald Trump that talks aimed at dialing down the damaging trade war with China were "moving right along".

World shares ticked up on Friday, buoyed by comments from US President Donald Trump that talks aimed at dialing down the damaging trade war with China were "moving right along". Trump's relatively upbeat tone in comments on Thursday was enough to encourage riskier bets by investors, despite a lack of agreement over whether existing tariffs should be dropped as part of an initial deal to ease the long standoff. European shares, including the broader Euro STOXX 600 gained 0.3 per cent in early trade, with indexes in Frankfurt and Paris up by similar amounts. The cautiously buoyant mood mirrored an appetite for riskier bets in Asia, where MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.5 per cent. The MSCI world equity index, which tracks shares in 47 countries, added 0.2 per cent to 554.91 points, not far off a record high of 550.63 hit last January but still on track for a weekly fall. Investors were hoping the two sides can reach a compromise to at least avoid their worst fear: that the United States goes ahead with its final batch of tariffs on about $156 billion of Chinese exports, due to take effect on December 15. Trump's remarks came after Chinese officials reiterated demands that some US tariffs be rolled back if the sides are to reach a so-called phase one deal. Markets had expected the sides to seal the initial deal in November. Instead, investors are nervously watching the approaching deadline for the new US levies. "The difficulty with this is it's very difficult to time and to trade," said Jeremy Gatto, a multi-asset investment manager at Unigestion. "We are relatively favorable towards riskier assets in general but with hedges." Gatto said those hedges include currencies such as the US dollar, Japanese yen, and Australian dollar, as well as options. Investors have already taken precautions against a possible slide in stocks by buying put options, with demand for "put" options to hedge exposure to the S&P500 index climbing in recent days. In one sign of detente, China said it would waive import tariffs imposed last year on some US soybean and pork shipments. Beijing is rushing to source more meat to fill a gap in protein supplies. China stocks posted their biggest weekly advance in nearly two months, with the blue-chips up 0.6 per cent. Investors were looking out for US jobs data, due out at 1330 GMT. The non-farm payrolls report is expected to show 180,000 new jobs were created in November, up from 128,000 a month earlier. Signs of buoyancy in the labour market would soothe anxiety over the impact of the trade war. "Markets are in consolidation phase," said Salman Ahmed, chief investment strategist at Lombard Odier. "It's wait and watch for first, how does the non-farm payrolls look and, more importantly, the December 15 tariff deadline." In other economic data, German industrial output fell unexpectedly in October, pointing to persistent weakness in the backbone of the economy. Berlin said, however, that new orders and business expectations suggest output may stabilise. While markets have largely priced in the view that the world economy has dodged the bullet of recession, there are still signs of fragility in many major economies. Oil lost ground as investors awaited a meeting of OPEC and its allies later on Friday, which is expected to formally agree to more output curbs in early 2020. Details of the agreement and how the cuts will be distributed among producers still need to be ratified at a meeting of OPEC and non-OPEC nations, otherwise known as OPEC+, in Vienna. Brent crude futures were flat at $63.46 a barrel after earlier gaining ground. The agreement coincided with the initial public offering of state oil firm Saudi Aramco, which was priced at the top of its range and raised $25.6 billion in the world's biggest IPO. In currencies, the British pound stepped back some 0.2 per cent. Sterling spiked to a seven-month high of $1.3166 on Thursday on bets that next week's election will give the Conservative party the majority it needs to deliver Brexit, ending near-term uncertainty. The pound last stood at $1.313. It hit 2-1/2-year highs versus the euro. Against a basket of currencies the dollar has dropped every day this week, falling to a one-month low of 97.356 on Thursday. The index was last down a smidgeon at 97.370 and has lost nearly 1 per cent this week.

'Moving right along'? Global shares nudge up after Trump trade talk

Oil edged lower on Friday as investors awaited a meeting of OPEC and its allies later in the day which is expected to formally agree to more output curbs in early 2020.

Despite the new cuts, <a href="https://www.wionews.com/business-economy/opec-gearing-up-for-deeper-oil-cuts-russia-yet-to-agree-266198">OPEC</a> stopped short of pledging action beyond March and analysts questioned the impact of the latest curbs.

Brent futures were down 10 cents, or 0.2 per cent, at $63.29 by 0730 GMT.

West Texas Intermediate oil futures fell 7 cents, or 0.1 per cent, to $58.36 a barrel. They hit $59.12 a barrel on Thursday, the highest since the end of September.

The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia - a grouping known as OPEC+ - agreed on Thursday to more output cuts to avert oversupply early next year as economic growth stagnates amid the <a href="https://www.wionews.com/world/china-says-in-close-communication-with-us-over-trade-deal-266442">US-China trade war</a>.

The agreement, which needs to be formally adopted later on Friday, will cut an extra 500,000 barrels per day (bpd) of production, through tighter compliance and some adjustments. The group has been withholding 1.2 million bpd and the increased amount represents about 1.7 per cent&nbsp;of global oil output.

"The key question is whether these reported cuts will actually reflect fresh cuts and so help to reduce the surplus in 1Q20, or whether they will just formalise the over-compliance that we have seen from the group as a whole," ING Economics said in a note.

A panel of ministers representing OPEC and non-OPEC producers led by Russia recommended the cuts, according to Russian Energy Minister Alexander Novak.

Details need to be hammered out at Friday's OPEC+ meeting in Vienna.

Any price gains from the OPEC+ output cut are likely to benefit American producers not party to any supply curbing agreement. American drillers have been breaking production records even as they cut the number of oil rigs in operation, filling gaps in global supplies.

"North American shale supply will continue growing even in an environment with lower oil prices," Rystad Energy said in a note.

Higher oil prices are also supporting the initial public offering of Saudi Arabia's state-owned oil company, Saudi Aramco, which priced its shares on Thursday at the top of an indicated range.

The sale was the world's biggest IPO, beating Alibaba Group Holdings' $25 billion listing in 2014, but fell short of valuing <a href="https://www.wionews.com/business-economy/saudi-aramco-ipo-institutional-tranche-295-times-oversubscribed-266097">Aramco</a> at $2 trillion, a target sought by Saudi Crown Prince Mohammed bin Salman.

Foreign investors stayed away and the sale was restricted to Saudi individuals and regional investors.

Oil edged lower on Friday as investors awaited a meeting of OPEC and its allies later in the day which is expected to formally agree to more output curbs in early 2020.

Oil edged lower on Friday as investors awaited a meeting of OPEC and its allies later in the day which is expected to formally agree to more output curbs in early 2020. Despite the new cuts, OPEC stopped short of pledging action beyond March and analysts questioned the impact of the latest curbs. Brent futures were down 10 cents, or 0.2 per cent, at $63.29 by 0730 GMT. West Texas Intermediate oil futures fell 7 cents, or 0.1 per cent, to $58.36 a barrel. They hit $59.12 a barrel on Thursday, the highest since the end of September. The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia - a grouping known as OPEC+ - agreed on Thursday to more output cuts to avert oversupply early next year as economic growth stagnates amid the US-China trade war. The agreement, which needs to be formally adopted later on Friday, will cut an extra 500,000 barrels per day (bpd) of production, through tighter compliance and some adjustments. The group has been withholding 1.2 million bpd and the increased amount represents about 1.7 per cent of global oil output. "The key question is whether these reported cuts will actually reflect fresh cuts and so help to reduce the surplus in 1Q20, or whether they will just formalise the over-compliance that we have seen from the group as a whole," ING Economics said in a note. A panel of ministers representing OPEC and non-OPEC producers led by Russia recommended the cuts, according to Russian Energy Minister Alexander Novak. Details need to be hammered out at Friday's OPEC+ meeting in Vienna. Any price gains from the OPEC+ output cut are likely to benefit American producers not party to any supply curbing agreement. American drillers have been breaking production records even as they cut the number of oil rigs in operation, filling gaps in global supplies. "North American shale supply will continue growing even in an environment with lower oil prices," Rystad Energy said in a note. Higher oil prices are also supporting the initial public offering of Saudi Arabia's state-owned oil company, Saudi Aramco, which priced its shares on Thursday at the top of an indicated range. The sale was the world's biggest IPO, beating Alibaba Group Holdings' $25 billion listing in 2014, but fell short of valuing Aramco at $2 trillion, a target sought by Saudi Crown Prince Mohammed bin Salman. Foreign investors stayed away and the sale was restricted to Saudi individuals and regional investors.

Oil slips as OPEC+ gears up to confirm supply cut

<a href="https://www.wionews.com/business-economy/opec-gearing-up-for-deeper-oil-cuts-russia-yet-to-agree-266198">OPEC</a> and its allies led by Russia were moving closer on Thursday to agree to deeper oil supply cuts next year to support crude prices and prevent a glut, sources from OPEC and its allied producers said.

The Organization of the Petroleum Exporting Countries (OPEC) meets on Thursday in Vienna followed by a meeting with Russia and others, a grouping known as OPEC+, on Friday.

OPEC+ has curbed supply since 2017 to counter booming output from the United States, which has become the world's biggest producer.

Next year, rising production in the United States and other non-OPEC countries such as Brazil and Norway threaten to add to the glut.

OPEC's actions in the past have angered US&nbsp;President Donald Trump, who has repeatedly demanded OPEC's de facto leader Saudi Arabia to bring oil prices down if it wants Washington's to provide Riyadh with military support against arch-rival Iran.

In the past few months, Trump has said little about OPEC but that might change later in 2020 if oil and gasoline prices rise a politically sensitive issue as he seeks re-election in November.

Washington's ongoing trade dispute with China has also clouded the economic and therefore oil demand outlook for 2020.

Two OPEC+ sources told Reuters on Thursday the group would discuss increasing current cuts of 1.2 million barrels per day by more than 400,000 BPD.

Iraq, OPEC's second-largest producer, said on Tuesday OPEC de facto leader Saudi Arabia was supporting cuts of 1.6 million BPD, or 1.6 per cent&nbsp;of global demand.

The current cuts expire in March and OPEC sources and delegates have said the new deal could be extended to June or until the end of 2020.

Saudi Energy Minister Prince Abdulaziz bin Salman has so far declined to comment on policy matters in Vienna.

Russian Energy Minister Alexander Novak was cited by his ministry as telling Prince Abdulaziz on Thursday that Russia-Saudi energy cooperation should continue.

Saudi Arabia needs higher oil prices to support its budget revenue and the pending initial public offering (IPO) of state-owned oil giant Saudi Aramco with the pricing of the IPO expected on Thursday.

OPEC's actions have supported oil prices at around $50-$75 per barrel over the past year. Brent crude futures on Thursday were trading near $63 per barrel.

OPEC sources have also said Riyadh was pressing fellow members Iraq and Nigeria to improve their compliance with quotas, which could provide an additional reduction of up to 400,000 BPD.

Non-OPEC Russia has yet to agree to extend or deepen cuts from its current pledge of 228,000 BPD as its companies are arguing they are finding it tough to reduce output during winter months due to very low temperatures.

A source familiar with the Russian thinking told Reuters that Moscow would likely reach a deal with OPEC this week and just needed to iron out a few outstanding issues.

One sticking point for Russia is how its output is measured. Russia includes gas condensate in production figures, while other producers do not.

OPEC and its allies led by Russia were moving closer on Thursday to agree to deeper oil supply cuts next year to support crude prices and prevent a glut, sources from OPEC and its allied producers said.

OPEC and its allies led by Russia were moving closer on Thursday to agree to deeper oil supply cuts next year to support crude prices and prevent a glut, sources from OPEC and its allied producers said. The Organization of the Petroleum Exporting Countries (OPEC) meets on Thursday in Vienna followed by a meeting with Russia and others, a grouping known as OPEC+, on Friday. OPEC+ has curbed supply since 2017 to counter booming output from the United States, which has become the world's biggest producer. Next year, rising production in the United States and other non-OPEC countries such as Brazil and Norway threaten to add to the glut. OPEC's actions in the past have angered US President Donald Trump, who has repeatedly demanded OPEC's de facto leader Saudi Arabia to bring oil prices down if it wants Washington's to provide Riyadh with military support against arch-rival Iran. In the past few months, Trump has said little about OPEC but that might change later in 2020 if oil and gasoline prices rise a politically sensitive issue as he seeks re-election in November. Washington's ongoing trade dispute with China has also clouded the economic and therefore oil demand outlook for 2020. Two OPEC+ sources told Reuters on Thursday the group would discuss increasing current cuts of 1.2 million barrels per day by more than 400,000 BPD. Iraq, OPEC's second-largest producer, said on Tuesday OPEC de facto leader Saudi Arabia was supporting cuts of 1.6 million BPD, or 1.6 per cent of global demand. The current cuts expire in March and OPEC sources and delegates have said the new deal could be extended to June or until the end of 2020. Saudi Energy Minister Prince Abdulaziz bin Salman has so far declined to comment on policy matters in Vienna. Russian Energy Minister Alexander Novak was cited by his ministry as telling Prince Abdulaziz on Thursday that Russia-Saudi energy cooperation should continue. Saudi Arabia needs higher oil prices to support its budget revenue and the pending initial public offering (IPO) of state-owned oil giant Saudi Aramco with the pricing of the IPO expected on Thursday. OPEC's actions have supported oil prices at around $50-$75 per barrel over the past year. Brent crude futures on Thursday were trading near $63 per barrel. OPEC sources have also said Riyadh was pressing fellow members Iraq and Nigeria to improve their compliance with quotas, which could provide an additional reduction of up to 400,000 BPD. Non-OPEC Russia has yet to agree to extend or deepen cuts from its current pledge of 228,000 BPD as its companies are arguing they are finding it tough to reduce output during winter months due to very low temperatures. A source familiar with the Russian thinking told Reuters that Moscow would likely reach a deal with OPEC this week and just needed to iron out a few outstanding issues. One sticking point for Russia is how its output is measured. Russia includes gas condensate in production figures, while other producers do not.

OPEC and allies prepare to deepen oil output cuts

<a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">OPEC</a> is gearing up to deepen production cuts later this week but still needs to agree with allies such as Russia over details of a deal to support oil prices and head off a looming oil glut next year.

The Organization of the Petroleum Exporting Countries (OPEC) meets on Thursday in Vienna followed by a meeting with Russia and others, a grouping known as<a href="https://www.wionews.com/business-economy/oil-prices-jump-to-61-over-opec-supply-cut-reports-265782"> OPEC+</a>, on Friday.

OPEC+ has been curbing output since 2017 to counter oversupply as a result of booming output in the United States, which has become the world's biggest producer and is not taking part in cuts.

Next year, rising production in non-OPEC countries such as Brazil and Norway threatens to add to the glut.

OPEC's actions in the past have angered US&nbsp;President Donald Trump, who has repeatedly demanded OPEC's de facto leader Saudi Arabia to bring oil prices down if it wants Washington's to provide Riyadh with military support against arch-rival Iran.

In the past few months, Trump has remained silent on OPEC but he faces re-election in November next year when the issue of gasoline prices is likely to become a hot political topic again.

Washington's ongoing trade dispute with China has also clouded the economic and therefore oil demand outlook for 2020.

OPEC's second-largest oil producer Iraq said on Tuesday key members supported deepening cuts for OPEC+ from the current level of 1.2 million barrels per day, or 1.2 per cent of global demand.

"My understanding is that they (Saudis) do (prefer it)," Iraqi Oil Minister Thamer Ghadhban told reporters in Vienna.

The current deal expires in March and two OPEC sources have said it would be extended at least until June. Oman's oil minister Mohammed al-Rumhi said on Wednesday his delegation would recommend extending cuts until the end of 2020.

Saudi Arabia needs higher oil prices to support its budget revenue and the pending share sale of state-owned oil giant Saudi Aramco with pricing expected on Thursday.

OPEC's actions have supported oil prices at around $50-$75 per barrel over the past year and on Wednesday they traded at $61 per barrel.

Iraq's Ghadhban said new cuts could be expanded to 1.6 million BPD while OPEC sources have also said Riyadh was pressing fellow members Iraq and Nigeria to improve their compliance with quotas, which could provide an additional reduction of up to 400,000 BPD.

Not all OPEC members were convinced of the need to cut deeper, however. One OPEC delegate said the move would boost prices and help spur a new phase of US&nbsp;oil output growth.

Non-OPEC Russia has yet to agree to extend or deepen cuts from its current pledge of 228,000 BPD as its companies are arguing they are finding it tough to reduce output during winter months due to very low temperatures.

Russian Energy Minister <a href="https://www.wionews.com/world/russian-oil-contamination-crisis-is-almost-over-energy-minister-alexander-novak-225266">Alexander Novak</a> said on Tuesday that Moscow had yet to finalise its position: "Let's wait but I think the meeting, as usual, will be of a constructive nature."

A source familiar with the Russian thinking told Reuters that Moscow would "most likely" reach a consensus with OPEC this week and just needed to iron out a few outstanding issues.

One sticking point for Russia this time is how its output is measured it includes gas condensate in its figures, while other producers do not.

OPEC is gearing up to deepen production cuts later this week but still needs to agree with allies such as Russia over details of a deal to support oil prices and head off a looming oil glut next year.

OPEC is gearing up to deepen production cuts later this week but still needs to agree with allies such as Russia over details of a deal to support oil prices and head off a looming oil glut next year. The Organization of the Petroleum Exporting Countries (OPEC) meets on Thursday in Vienna followed by a meeting with Russia and others, a grouping known as OPEC+, on Friday. OPEC+ has been curbing output since 2017 to counter oversupply as a result of booming output in the United States, which has become the world's biggest producer and is not taking part in cuts. Next year, rising production in non-OPEC countries such as Brazil and Norway threatens to add to the glut. OPEC's actions in the past have angered US President Donald Trump, who has repeatedly demanded OPEC's de facto leader Saudi Arabia to bring oil prices down if it wants Washington's to provide Riyadh with military support against arch-rival Iran. In the past few months, Trump has remained silent on OPEC but he faces re-election in November next year when the issue of gasoline prices is likely to become a hot political topic again. Washington's ongoing trade dispute with China has also clouded the economic and therefore oil demand outlook for 2020. OPEC's second-largest oil producer Iraq said on Tuesday key members supported deepening cuts for OPEC+ from the current level of 1.2 million barrels per day, or 1.2 per cent of global demand. "My understanding is that they (Saudis) do (prefer it)," Iraqi Oil Minister Thamer Ghadhban told reporters in Vienna. The current deal expires in March and two OPEC sources have said it would be extended at least until June. Oman's oil minister Mohammed al-Rumhi said on Wednesday his delegation would recommend extending cuts until the end of 2020. Saudi Arabia needs higher oil prices to support its budget revenue and the pending share sale of state-owned oil giant Saudi Aramco with pricing expected on Thursday. OPEC's actions have supported oil prices at around $50-$75 per barrel over the past year and on Wednesday they traded at $61 per barrel. Iraq's Ghadhban said new cuts could be expanded to 1.6 million BPD while OPEC sources have also said Riyadh was pressing fellow members Iraq and Nigeria to improve their compliance with quotas, which could provide an additional reduction of up to 400,000 BPD. Not all OPEC members were convinced of the need to cut deeper, however. One OPEC delegate said the move would boost prices and help spur a new phase of US oil output growth. Non-OPEC Russia has yet to agree to extend or deepen cuts from its current pledge of 228,000 BPD as its companies are arguing they are finding it tough to reduce output during winter months due to very low temperatures. Russian Energy Minister Alexander Novak said on Tuesday that Moscow had yet to finalise its position: "Let's wait but I think the meeting, as usual, will be of a constructive nature." A source familiar with the Russian thinking told Reuters that Moscow would "most likely" reach a consensus with OPEC this week and just needed to iron out a few outstanding issues. One sticking point for Russia this time is how its output is measured it includes gas condensate in its figures, while other producers do not.

OPEC gearing up for deeper oil cuts, Russia yet to agree

<a href="https://www.wionews.com/business-economy/oil-prices-jump-to-61-over-opec-supply-cut-reports-265782">Oil prices</a> gained on Tuesday, as hopes rose for OPEC and its allies to agree deeper output cuts when they meet this week, although gains were limited, amid some analysts' skepticism over the achievement of further reductions.

Brent futures rose 17 cents, or 0.3 per cent, to $61.09 a barrel by 0516 GMT, after having gained 0.7 per cent&nbsp;on Monday.

US&nbsp;West Texas Intermediate crude was up 25 cents, or 0.5 per cent, at $56.21 a barrel. The contract rose by 1.4 per cent&nbsp;on Monday.

The Organization of the Petroleum Exporting Countries (<a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">OPEC</a>) and its allies, known as OPEC+, are discussing a plan to increase an existing supply cut of 1.2 million barrels per day (BPD) by a further 400,000 BPD and extend the pact until June, two sources familiar with the matter said.

Saudi Arabia is pushing the plan to deliver a positive surprise to the market before the initial public offering (IPO) of state-owned Saudi Aramco, the sources said.

"We believe the global oil supply-demand balance requires an extension of the current OPEC+ cuts," Goldman Sachs said in a research note.

The factors behind this view included a large increase in production from legacy non-OPEC projects and a still uncertain outlook for demand growth, it added.

The investment bank said it expected Brent to trade around $60 a barrel in 2020, "absent new growth or geopolitical shocks".

OPEC ministers will meet in Vienna on Thursday and the wider OPEC+ group will gather on Friday.

"(The) oil price is little moved today, suggesting that traders are skeptical about the additional 400,000 BPD cut on top of the extension of (the) current production cut agreement," said Margaret Yang, market analyst at CMC Markets in Singapore.

Concerns about the inability of the United States and China, the world's two biggest oil users, to reach a preliminary deal to resolve their 17-month trade dispute also weighed on oil prices, along with discouraging US&nbsp;economic data.

A senior adviser to <a href="https://www.wionews.com/americas/china-loves-ripping-off-america-says-us-president-donald-trump-218218">President Donald Trump</a> said a US-China trade deal was still possible before the end of the year, adding that the first phase of the agreement was being put to paper, although the talks have dragged on for weeks.

While OPEC may cut output,&nbsp;US&nbsp;producers have been only too happy to meet any market shortfalls, with production set successive records. Growth into 2020, though, may range between 100,000 BPD and 1 million BPD.

US&nbsp;crude inventories are expected to have declined last week, which may support prices, with analysts in a preliminary Reuters poll suggesting a contraction of 1.8 million barrels.&nbsp;

In a sign of buying interest for oil, fund managers increased net long positions in US&nbsp;crude futures and options in the week to November&nbsp;26, the US&nbsp;Commodities Futures Trading Commission said.

Oil prices gained on Tuesday, as hopes rose for OPEC and its allies to agree deeper output cuts when they meet this week, although gains were limited, amid some analysts' skepticism over the achievement of further reductions.

Oil prices gained on Tuesday, as hopes rose for OPEC and its allies to agree deeper output cuts when they meet this week, although gains were limited, amid some analysts' skepticism over the achievement of further reductions. Brent futures rose 17 cents, or 0.3 per cent, to $61.09 a barrel by 0516 GMT, after having gained 0.7 per cent on Monday. US West Texas Intermediate crude was up 25 cents, or 0.5 per cent, at $56.21 a barrel. The contract rose by 1.4 per cent on Monday. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, are discussing a plan to increase an existing supply cut of 1.2 million barrels per day (BPD) by a further 400,000 BPD and extend the pact until June, two sources familiar with the matter said. Saudi Arabia is pushing the plan to deliver a positive surprise to the market before the initial public offering (IPO) of state-owned Saudi Aramco, the sources said. "We believe the global oil supply-demand balance requires an extension of the current OPEC+ cuts," Goldman Sachs said in a research note. The factors behind this view included a large increase in production from legacy non-OPEC projects and a still uncertain outlook for demand growth, it added. The investment bank said it expected Brent to trade around $60 a barrel in 2020, "absent new growth or geopolitical shocks". OPEC ministers will meet in Vienna on Thursday and the wider OPEC+ group will gather on Friday. "(The) oil price is little moved today, suggesting that traders are skeptical about the additional 400,000 BPD cut on top of the extension of (the) current production cut agreement," said Margaret Yang, market analyst at CMC Markets in Singapore. Concerns about the inability of the United States and China, the world's two biggest oil users, to reach a preliminary deal to resolve their 17-month trade dispute also weighed on oil prices, along with discouraging US economic data. A senior adviser to President Donald Trump said a US-China trade deal was still possible before the end of the year, adding that the first phase of the agreement was being put to paper, although the talks have dragged on for weeks. While OPEC may cut output, US producers have been only too happy to meet any market shortfalls, with production set successive records. Growth into 2020, though, may range between 100,000 BPD and 1 million BPD. US crude inventories are expected to have declined last week, which may support prices, with analysts in a preliminary Reuters poll suggesting a contraction of 1.8 million barrels. In a sign of buying interest for oil, fund managers increased net long positions in US crude futures and options in the week to November 26, the US Commodities Futures Trading Commission said.

Oil prices rise as Saudi Arabia pushes for further supply cuts

Oil jumped above $61 a barrel on Monday, supported by <a href="https://www.wionews.com/business-economy/opecs-share-of-indian-oil-imports-fell-down-43-lowest-since-2011-263065">hints that OPEC</a> and its allies may agree to deepen output cuts at a meeting this week and as rising manufacturing activity in China suggested stronger demand.

The Organization of the Petroleum Exporting Countries and allies including Russia are expected to extend output cuts this week and could increase the size of the curb by at least 400,000 barrels per day (bpd), two sources said.

"There is a discussion about a deeper cut taking place," an OPEC source said, citing forecasts of oversupply in the first six months of 2020. "There is a big stock build in the first half of the year - we need to keep an eye on that."

Brent crude, the global benchmark, rose $1.13 to $61.62 a barrel by 1426 GMT. US West Texas Intermediate (WTI) crude added $1.07 to $56.24.

The so-called OPEC+ group has coordinated output for three years to balance the market and support prices. Their current deal to cut supply by 1.2 million bpd started in January and expires at the end of March 2020.

"Any sign of discontent between the producers will send out negative signals and will put significant downward pressure on the oil price," said Tamas Varga of oil broker PVM. "We believe this is unlikely to happen."

OPEC's ministers will meet in Vienna on Thursday and the wider OPEC+ group will gather on Friday.

On Friday Brent and US crude both fell on concerns that talks to end the trade war between the United States and China, the world's two biggest oil consumers, would be disrupted by US support for protesters in Hong Kong.

Oil also rose on Monday because of an unexpected return to growth in Chinese factory activity in November as domestic demand picked up on Beijing's accelerated stimulus measures. That is supportive of the oil demand outlook.

But US production keeps rising, led by shale oil, filling the gaps left by OPEC. Output in September increased to a record 12.46 million bpd, the U.S. government said in a monthly report on Friday.

It is not certain OPEC+ will agree this week to deepen its curbs. Some in the group are wary measures to support prices will encourage more U.S. production.

"A deeper cut could boost prices, which would bring on more shale output and not help," the OPEC source said.

Oil jumped above $61 a barrel on Monday, supported by hints that OPEC and its allies may agree to deepen output cuts at a meeting this week and as rising manufacturing activity in China suggested stronger demand.

Oil jumped above $61 a barrel on Monday, supported by hints that OPEC and its allies may agree to deepen output cuts at a meeting this week and as rising manufacturing activity in China suggested stronger demand. The Organization of the Petroleum Exporting Countries and allies including Russia are expected to extend output cuts this week and could increase the size of the curb by at least 400,000 barrels per day (bpd), two sources said. "There is a discussion about a deeper cut taking place," an OPEC source said, citing forecasts of oversupply in the first six months of 2020. "There is a big stock build in the first half of the year - we need to keep an eye on that." Brent crude, the global benchmark, rose $1.13 to $61.62 a barrel by 1426 GMT. US West Texas Intermediate (WTI) crude added $1.07 to $56.24. The so-called OPEC+ group has coordinated output for three years to balance the market and support prices. Their current deal to cut supply by 1.2 million bpd started in January and expires at the end of March 2020. "Any sign of discontent between the producers will send out negative signals and will put significant downward pressure on the oil price," said Tamas Varga of oil broker PVM. "We believe this is unlikely to happen." OPEC's ministers will meet in Vienna on Thursday and the wider OPEC+ group will gather on Friday. On Friday Brent and US crude both fell on concerns that talks to end the trade war between the United States and China, the world's two biggest oil consumers, would be disrupted by US support for protesters in Hong Kong. Oil also rose on Monday because of an unexpected return to growth in Chinese factory activity in November as domestic demand picked up on Beijing's accelerated stimulus measures. That is supportive of the oil demand outlook. But US production keeps rising, led by shale oil, filling the gaps left by OPEC. Output in September increased to a record 12.46 million bpd, the U.S. government said in a monthly report on Friday. It is not certain OPEC+ will agree this week to deepen its curbs. Some in the group are wary measures to support prices will encourage more U.S. production. "A deeper cut could boost prices, which would bring on more shale output and not help," the OPEC source said.

Oil prices jump to $61 over OPEC+ supply cut reports

OPEC's share of India's oil imports fell to 73 per cent&nbsp;in October, its lowest monthly share since at least 2011, tanker data from sources showed, as refiners shipped in fuel from the United States and other suppliers.

India, which usually imports about 80 per cent of its needs from members of the Organization of the <a href="https://www.wionews.com/business-economy/oil-prices-hold-above-63-on-trade-talk-optimism-opec-262945">Petroleum Exporting Countries</a> (OPEC), has been diversifying its sources of oil as local refiners have upgraded plants to process cheaper crude grades.

India, the world's third-biggest oil importer, shipped in 4.56 million barrels per day (bpd) of oil in October, about 3.3 per cent less compared with a year ago, data showed. Of that, it bought 3.43 million bpd from OPEC.

OPEC's share of India's imports in September was about 81 per cent although&nbsp;total volumes were lower, as the South Asian nation cut imports to a three-year low due to maintenance at some refineries.

OPEC oil output dipped to an eight-year low in September after attacks on Saudi oil plants led to production cuts, a Reuters survey showed. The kingdom's output has since recovered.

In October, Iraq replaced Saudi Arabia as India's top oil supplier, tanker arrival data showed, with refiners cutting purchases of the more expensive Saudi oil.

Sources who supplied the data asked not to be named.

"Saudi had raised its official selling price (OSP). That led to some buyers migrating to Iraqi and other producers," said Ehsan Ul Haq, an analyst with Refinitiv.

Saudi Arabia raised its October OSP for its Arab Light grade for Asia by $0.60/barrel compared to a $0.35/barrel increase in Iraq's Basra Light.

To make up for lower Saudi purchases, India also boosted purchases from Nigeria, its third-biggest supplier in October, as well as from Kuwait and Mexico.

India shipped in a record 336,000 bpd of US&nbsp;oil in October, about 7.5 per cent&nbsp;of total imports, as private refiner Reliance Industries bought three tanker cargoes, data showed. The United States was Indian's fourth-biggest supplier in October.

"Indian demand for Gasoil has been falling but overall Asian demand has been relatively strong because of new marine fuel rules from January. And good diesel cracks is prompting refiners to buy distillate rich crudes like that of Nigeria," Haq said.

Refining margins or cracks for 10 ppm Gasoil traded at $15.46 per barrel over Dubai crude during Asian trade on Monday. Cash premiums for the fuel climbed to 34 per cent&nbsp;barrel to Singapore quotes, compared with 31 cents&nbsp;per barrel on Friday.

India's fuel demand in October declined by 1.4 per cent&nbsp;from a year earlier, and its diesel consumption fell by the steepest in about three years, government data showed on Thursday.

OPEC's share of India's oil imports fell to 73 per cent in October, its lowest monthly share since at least 2011, tanker data from sources showed, as refiners shipped in fuel from the United States and other suppliers.

OPEC's share of India's oil imports fell to 73 per cent in October, its lowest monthly share since at least 2011, tanker data from sources showed, as refiners shipped in fuel from the United States and other suppliers. India, which usually imports about 80 per cent of its needs from members of the Organization of the Petroleum Exporting Countries (OPEC), has been diversifying its sources of oil as local refiners have upgraded plants to process cheaper crude grades. India, the world's third-biggest oil importer, shipped in 4.56 million barrels per day (bpd) of oil in October, about 3.3 per cent less compared with a year ago, data showed. Of that, it bought 3.43 million bpd from OPEC. OPEC's share of India's imports in September was about 81 per cent although total volumes were lower, as the South Asian nation cut imports to a three-year low due to maintenance at some refineries. OPEC oil output dipped to an eight-year low in September after attacks on Saudi oil plants led to production cuts, a Reuters survey showed. The kingdom's output has since recovered. In October, Iraq replaced Saudi Arabia as India's top oil supplier, tanker arrival data showed, with refiners cutting purchases of the more expensive Saudi oil. Sources who supplied the data asked not to be named. "Saudi had raised its official selling price (OSP). That led to some buyers migrating to Iraqi and other producers," said Ehsan Ul Haq, an analyst with Refinitiv. Saudi Arabia raised its October OSP for its Arab Light grade for Asia by $0.60/barrel compared to a $0.35/barrel increase in Iraq's Basra Light. To make up for lower Saudi purchases, India also boosted purchases from Nigeria, its third-biggest supplier in October, as well as from Kuwait and Mexico. India shipped in a record 336,000 bpd of US oil in October, about 7.5 per cent of total imports, as private refiner Reliance Industries bought three tanker cargoes, data showed. The United States was Indian's fourth-biggest supplier in October. "Indian demand for Gasoil has been falling but overall Asian demand has been relatively strong because of new marine fuel rules from January. And good diesel cracks is prompting refiners to buy distillate rich crudes like that of Nigeria," Haq said. Refining margins or cracks for 10 ppm Gasoil traded at $15.46 per barrel over Dubai crude during Asian trade on Monday. Cash premiums for the fuel climbed to 34 per cent barrel to Singapore quotes, compared with 31 cents per barrel on Friday. India's fuel demand in October declined by 1.4 per cent from a year earlier, and its diesel consumption fell by the steepest in about three years, government data showed on Thursday.

OPEC's share of indian oil imports fell down 43% , lowest since 2011

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