Global oil consumption is growing rapidly, helping account for the decline in reported inventories, the recent surge in prices and the shift in futures markets from contango to backwardation.
Brent oil prices hovered near 26-month highs on Tuesday, supported by Turkey’s threat to cut crude exports from Iraq’s Kurdistan region and signs of quicker market rebalancing.
The government is hoping for lower subsidy bills over next two years as the global crude oil market struggles to rise despite the historic agreement between Opec and non-Opec producers to cut output. The government has budgeted Rs 25,000 crore toward petroleum subsidy in the current fiscal.
Oil prices edged down on Monday as a disappointing Chinese economic survey clouded the outlook for demand, although talk that OPEC-led crude output cuts could be extended continued to offer support
A joint committee of ministers from OPEC and non-OPEC oil producers recommended extending by six months a global deal to reduce oil output, a draft press release from their meeting on Sunday showed.
According to data released by the US Energy Information Administration (EIA), stockpiles swelled by a further 4.95 million barrels to 533.1 million barrels.
Oil prices were largely steady on Friday, finishing the week with modest gains, but speculators sharply cut long positions during last week’s rout, on concerns that an OPEC production cut was failing to reduce a global supply overhang.