India's May oil imports hit lowest since 2011 over drop in demand: Report

India's oil imports in May hit the most reduced since Oct 2011 as purifiers with overflowing stockpiling cut buys after a nonstop decrease in fuel request, starter information got from industry sources appeared.
In May, India imported 3.18 million barrels for every day (bpd) of oil, a decrease of about 31% from April and about 26% from a year prior, the information appeared.
Hit by a startling fall sought after because of lockdown measures to contain the novel coronavirus, Indian purifiers in April filled tanks with less expensive oil, sold extra cargoes to the national government for vital holds and proclaimed power majeure on rough imports.
The purifiers, which typically book cargoes one-to-two months ahead of time, likewise conceded some term cargoes planned for lifting in April.
In May, Saudi Arabia was the top oil provider to India for a second continuous month, in spite of the fact that provisions from the realm declined by almost 28% from April, the information appeared.
India's oil imports from Iraq fell by 43% to around 554,000 bpd, the most reduced since Oct 2016, the information arranged by Reuters appeared.
The admission of Venezuelan oil in May tumbled to the most reduced since June 2011. Dependence Industries , administrator of the world's greatest refining perplexing, got 2 million barrels of oil from Venezuela.
Another private purifier Nayara Energy, part-claimed by Russian oil major Rosneft , didn't import from the Latin American country in May, under tension from the U.S. sanctions against Venezuelan national oil organization PDVSA.
Venezuela and other delivering countries in a gathering known as OPEC+ have concurred yield slices to attempt to balance out worldwide oil markets.
Oil from the Organization of the Petroleum Exporting Countries (OPEC) as a portion of India's imports tumbled to an unequaled low of 71.3%, while the portion of U.S. oil hit a record high of almost 8% in May.

India's oil imports in June are set to recoup as purifiers have raised unrefined handling and request is recuperating with the progressive resumption of transport and modern movement.

Goldman Sachs cuts Brent forecasts to $30 on price war, Coronavirus impact

Current Affairs
Goldman Sachs cut its second-and second from last quarter Brent value gauges to $30 per barrel, refering to the oil value war among Russia and Saudi Arabia and a huge breakdown in oil request due to the coronavirus that has killed more than 3,500 universally.
Oil fell by the most since 1991 on Monday after Saudi Arabia began a value war with Russia by cutting its selling costs and vowing to release its repressed stock onto a market reeling from falling interest on account of the infection episode.
"The forceful slice to Saudi's Official Selling Prices and Russia's hesitance to be driven into an arrangement on Friday point to a low likelihood of a prompt (OPEC+) understanding," Goldman said in a note dated March 8.
A three-year agreement between the Organization of the Petroleum Exporting Countries (OPEC) and Russia finished in bitterness on Friday after Moscow would not bolster further oil cuts and OPEC reacted by expelling all cutoff points on its own creation. "While we can't preclude an OPEC+ bargain in coming months, we additionally accept that this understanding was naturally imbalanced and its creation cuts financially unwarranted," the bank said.
Goldman's base case is presently for no such arrangement, it said.
Lower oil costs will begin making intense budgetary pressure and declining creation from shale just as other significant expense maker, the bank said.

There will be a unimportant reaction from U.S. shale makers in the subsequent quarter, yet yield will fall in the second from last quarter by 75,000 barrels for every day (bpd) and a further 250,000 bpd in the final quarter of 2020, the bank said....Read More

Oil price to rise? Millions of barrels of Iran oil piled up in China ports

International News

Tankers are offloading millions of barrels of Iranian oil into storage tanks at Chinese ports, creating a hoard of crude sitting on the doorstep of the world's biggest buyer.
Two and a half months after the White House banned the purchase of Iran's oil, the nation’s crude is continuing to be sent to China where it's being put into what's known as "bonded storage," say people familiar with operations at several Chinese ports. This oil doesn't cross local customs or show up in the nation's import data and is not necessarily in breach of sanctions. And while it remains out of circulation for now, its presence is looming over the market.
The store of oil has the potential to push down global prices if Chinese refiners decide to draw on it, even as Organization of Petroleum Exporting Countries and allies curb production amid slowing growth in major economies. It also allows Iran to keep pumping and move its oil nearer to potential buyers.
"Iranian oil shipments have been flowing into Chinese bonded storage for some months now, and continue to do so despite increased scrutiny," said Rachel Yew, an analyst at industry consultant FGE in Singapore. “We can see why the producer would want to do so, as a build-up of supplies near key buyers is clearly beneficial for a seller, especially if sanctions are eased at some point.”
There could be more Iranian oil headed for China's bonded storage tanks, Bloomberg ship-tracking data show. At least ten very-large crude carriers and two smaller tankers owned by the state-run National Iranian Oil Company and its shipping arm are currently sailing toward China or idling off its coast. The vessels have a combined carrying capacity of over 20 million barrels.

 The bulk of Iranian oil in China's bonded tanks is still owned by Tehran and therefore not in breach of sanctions, according to the people. The oil hasn't crossed Chinese customs so it is theoretically in transit...Read More

US-Iran tensions, Opec's indication of continuing cuts lead to oil surge

International News

Oil rose to multi-week highs on Monday after Organization of the Petroleum Exporting Countries (Opec) indicated it will likely maintain production cuts that have helped support prices this year, while tensions continued to escalate in the Middle East.

Brent crude was up by 96 cents, or 1.3%, at $73.17 a barrel by 0227 GMT, having earlier touched $73.40, the highest since April 26.

U.S. West Texas Intermediate crude was 82 cents, 1.3%, higher at $63.58 a barrel. The US benchmark reached $63.81 earlier, the highest since May 1.

Saudi Energy Minister Khalid al-Falih said on Sunday there was consensus among the Opec and allied oil producers to drive down crude inventories "gently" but he would remain responsive to the needs of a "fragile market".

United Arab Emirates (UAE) Energy Minister Suhail al-Mazrouei earlier told reporters that producers were capable of filling any market gap and that relaxing supply cuts was not "the right decision".
Meanwhile, US President Donald Trump threatened Tehran on Sunday, tweeting that a conflict would be the "official end" of Iran, while Saudi Arabia said it was ready to respond with "all strength" and that it was up to Iran to avoid war.

The rhetoric follows last week's attacks on Saudi oil assets and the firing of a rocket on Sunday into Baghdad's heavily fortified "Green Zone" that exploded near the US embassy.

 "Al-Falih and the UAE both put paid to suggestions of increasing production over the weekend and then President Trump essentially telling Iran to bring it on, was a perfect short-term storm for oil prices," Greg McKenna, strategist at McKenna Macro, told Reuters by email.

Oil prices near 2019 highs amid supply cuts by OPEC, US sanctions

International News

Oil prices on Friday hovered close to 2019 peaks reached the previous day, propped up by supply cuts led by producer club OPEC and by US sanctions against Iran and Venezuela.

Brent crude oil futures were at $67.82 per barrel at 0122 GMT, down 4 cents from their last close but within a dollar of the $68.69 per barrel 2019-high marked the day before.

US West Texas Intermediate (WTI) futures were at $60 per barrel, virtually unchanged from their last settlement and not far off their 2019 peak of $60.39 touched on Thursday.

Prices have been propped up by supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and non-affiliated allies such as Russia, often referred to as 'OPEC+'.

Despite a more than a quarter increase in crude prices this year, Canadian investment bank RBC Capital Markets said oil was "still below the fiscal breakeven level in a number of OPEC countries", meaning that many producers have an interest in further propping up the market.

"With the driver of the OPEC bus, Saudi Arabia, showing no signs of wavering in the face of renewed pressure from Washington, we believe that OPEC is likely to extend the deal for the duration of 2019 when they next assemble in Vienna in June," RBC said.

RBC said Russia was only a reluctant partner in the supply cuts, but would "ultimately opt to preserve the arrangement and retain a leadership role of a 21-nation group that accounts for around 45 per cent of global oil output".


 Beyond OPEC and Russia's supply policy, oil prices have also been boosted by US sanctions on OPEC-members Iran and Venezuela...Read More