OPEC News

Biden has said he has no plans to meet Saudi Crown Prince This comes after OPEC's decision to cut oil production The cuts have infuriated Washington

Hardeep Singh Puri said that India will buy oil from wherever it has to Puri further said that he hasn't been stopped from buying Russian oil by anyone Puri, however, refrained from commenting on OPEC's controversial decision

Hardeep Singh Puri refrained from commenting on OPEC's decision to cut oil production However, Puri said the move is likely to be scrutinized very carefully He said that India as one of the major consumers of oil and gas also has a major say in the global oil market

Brent crude, the global benchmark, was up $1.93, or 2%, at $97.32 by 1448 GMT. The Ukraine crisis has added further support to an oil market that has surged on tight supplies as demand recovers from the COVID-19 pandemic. The Organization of the Petroleum Exporting Countries (OPEC) and allies, together known as OPEC+, have resisted calls to boost supply more rapidly.

Brent has risen by more than 45% this year. Oil, which plunged by more than 10% on Nov. 26 when reports of a new variant first appeared. OPEC+ stuck to its plans at its last meeting to boost output for January despite Omicron.

Oil prices have collapsed by more than 60% since January to levels well below the costs necessary for many shale drillers to break even, leading to drilling halts and drastic spending cuts. 

The planned output curbs by OPEC+ amount to 10 million barrels per day (bpd) or 10% of global supplies, with another 5 million bpd expected to come from other nations to help deal with the deepest oil crisis in decades.

India is 83 percent dependent on imports to meet its oil needs and is reliant on nations like the UAE to meet half of its cooking gas (LPG) needs.

The attacks near Iran and the Strait of Hormuz pushed oil prices up as much as 4.5% on Thursday, putting the brakes on a slide in prices in recent weeks over concerns about global demand. US crude. 

World oil demand will rise by 1.14 million barrels per day this year, 70,000 bpd less than previously expected, the Organization of the Petroleum Exporting Countries said in a monthly report.

The 15-member group agreed to cut crude oil output by 800,000 barrels per day, while Russia and its allied producers would slash oil production by around 400,000 barrels per day.

Special Representative for Iran Brian Hook will be in the country this week to find alternatives once US sanctions against Iran come into effect.

"We have a dream One World, One Sun One Grid."

Trump`s order for oil producing countries to raise output "is very insulting to the people of these countries and would undermine their national sovereignty and destabilize the oil market," minister said.

US has put back sanctions on Iran after pulling out of a nuclear deal with the country. During previous sanctions, India had continued to import Iranian oil. Sources tell Reuters that current situation is different and there could be a 'drastic reduction or zero' imports.

Production cuts by OPEC have led to international oil prices hitting a four year high last month that forced a Rs 3.8 per litre hike in petrol and Rs 3.38 a litre increase in diesel prices.

Brent crude futures fell $2.35, or 3 percent, to settle at $76.44 a barrel. 

Petrol prices on Sunday touched a record high of Rs 76.24 per litre and diesel climbed to its highest-ever level of Rs 67.57 as the oil PSUs passed on four weeks of relentless rise in international oil prices to consumers.

The PSU booked higher inventory gains due to a sharp rise in global oil prices.

Analysts said that rising oil prices would likely start to have an inflationary effect.