Oil markets edged up on Friday, recovering some of the previous day’s losses, as analysts pointed to signs of a tightening market.
Asia is set to ramp up crude oil imports from the United States in late 2017 and early next year, with buyers searching out cheap supplies after hurricanes hit U.S. demand for the commodity at a time of rising production in the country.
Oil prices eased on Thursday as U.S. fuel inventories rose despite efforts by OPEC to cut production and tighten the market.
Oil prices witnessed fall during early trade on Thursday after US reported record crude exports, although market participants said that attempts by OPEC to trim output remained well supported.
Oil prices were narrowly higher on Friday as the market waited to see whether major oil producers would back an extension to output cuts beyond March at a meeting in Vienna.
Oil rose on Wednesday, set for its largest third-quarter gain in 13 years, after the Iraqi oil minister said OPEC and its partners were considering extending or deepening supply cuts to erode an existing global surplus.
Oil prices dipped on Monday as a slowdown in Chinese refining activity growth cast doubts over its crude demand outlook, while rising U.S. shale output suggested supplies would likely remain high.
Oil prices were little changed in early Asian trading on Friday after retreating in the previous session, weighed by ongoing global glut concerns despite a bigger-than-expected draw in U.S. crude inventories.
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.
Mid-Term Expenditure Framework: Government Projects Petroleum Subsidy Falling To Rs 10,000 Crore In FY20
Modi government seems to be taking a lot of comfort from the low crude oil prices while banking on the domestic distribution reforms as it has projected a sequentially lower petroleum subsidy in the next two financial years.