Crude has ended its ten-week consecutive rise to stop and fell to $ 54.3 (Brent) from the previous week high of $58. This was amidst prospects of robust supply by the US Shale and Iraqi producers. The new price trend of crude shows limitations of OPEC’s production cut. The oil cartel agreed for a production cut for the first time in nearly eight years in last month. On November 30 last year, the cartel decided to trim output to 32.5 mn barrels a day, supported by Russia. Markets were keenly observing the success of the OPEC policy in a world market where several producers were outside the cartel besides the rookie shale going ultra-market oriented. “Concerns about th
After registering a one-year high, crude prices came down by a dollar in the international market on Tuesday. Cold response from Russian oil industry on production cut is cited as the major reason for the price fall trend. The new turnaround in the global market casts doubts about the strength of the new production cutting agreement between Saudi Arabia from the part of OPEC and Russia. Oil prices that jumped by 3 percent on Monday, after the Russia and Saudi Arabia reached a trend-setting deal bringing cooperation between OPEC and non-OPEC producers. But Brent oil futures fell to $52.84 on Tuesday from $53.73 on the previous day. The International Energy Agency also raised dou
The oil cartel – OPEC has agreed on a path-breaking oil production cut that may test the current low crude price era. This is the first time in eight years that the influential organization of the oil producers agreeing on production cut to stabilize prices. The last production limiting consensus was in 2008. In the latest meeting at Algiers, the OPEC countries decided to limit production to a range of 32.5 to 33 million barrels of oil per day from 33.4 million at present. The production cut will be led by Saudi Arabia, the largest oil producer. Saudi is expected to give up 350,000 barrels a day, according to a senior OPEC source quoting the final proposal. Other OPEC nation
Crude prices failed to move up from $ 50 from the impact of OPEC’s failure to induce a production cut. The Brent crude was trading at $49 per barrel down by 1.3% after the impact of the OPEC decision. This is a downturn in prices after the commodity has achieved rise during the last few weeks. The new development has given considerable relief to leading crude importers like India. Return of crude to above $50 would have opened the previous painful import bill burden for many import dependent countries. The OPEC meeting was dominated by a tussle between Saudi Arabia and Iran with the former insisting all members to cut production. But Iran was reluctant to do so. OPEC’
Crude is making a steady comeback, supported by supply disruptions. The Brent variety of crude has recorded $ 49.47, recording a six month high. Growing political instability in Nigeria in the context of militant threats is the new development that brought up price in the international market. “Developments in Nigeria and the increasingly tense situation in Venezuela … make a breach of the $50 this week a strong possibility,” the Financial Times has quoted market expert David Hufton. Not just demand, rising energy consumption by the lone performer in the world economy – India is also attributed to the recovery of crude. In early May, energy
Crude price has recorded its biggest price gain in seven years one week after the US President Obama’s visit to Saudi Arabia. The surprisingly strong recovery of crude is attributed to a major supply cut made by the US which is a non-OPEC producer. Market analysts found that the existing supply glut trend has eased with slowed production by the US. So far, crude price was ruled by increasing tussle between the non OPEC new boy - the US which was helped by the shale revolution and the OPEC. The Brent crude price has closed at $48 on Friday. Besides the declining US production, declining dollar also added to the price gain. Market is yet to find a balance between demand and
The International Energy Agency has observed that crude oil price may have already passed its lowest levels. According to the institution, it is in course to reach the stabilizing higher levels. In the last couple of weeks, oil is returning from its lowest levels of $28 per barrel to $40. Both major global varieties- WTI and Brent are showing the uptrend. Observers also highlight that oil’s return to the 40s or 50s will be led by production agreement by the producers. Last month, major producers Russia and Saudi Arabia have reached an agreement for keeping the production stable at January 2016 levels. Despite adequate information about production trends, agencies are n
Crude price in international markets continued to be doubtful about the new production limiting decision by Saudi Arabia and Russia. The two largest producers whose income considerably depends upon oil reached to limit production at January 2016 levels. Despite the vocal support for the deal from Iran, prices remained stagnant at $35 Dollar for the Brent variety after rising initially to the production limit news. Increased stockpile data from the US has caused downward pressure on Friday trading. Industry experts say that though the deal between Saudi and Russia- the two major producers within and outside OPEC; what matters is Iran’s stand. Iran which has reentered into t
After several years of legal and administrative battles, the IPR regime of the country has given Geographical Indications tag to the world famous rice variety – Basmati. Intellectual Property Appellate Board (IPAB) – the dispute settlement body for intellectual property issues, instructed Geographical Indications Registry to give GI tag for Basmati rice to the Indo-Gangetic Plain region. Awarding GI means that the crop as a product is a common asset of the specified geographical area. Hence no entities inside or outside India can avail any intellectual property rights including patent or plant verities right for Basmati. In the past, agri-tech companies tried to dupli
Government has made a further push to stop the generation of black money by making PAN quoting mandatory for transactions above Rs 2 lakh. Earlier the budget had suggested this limit at Rs 1 lakh. A higher limit was selected with several business bodies highlighting the ‘inconveniences’ involved. The new regulations that makes high value transactions accounted and adding to the PAN identity of the individual contain other measures as well. In the case of immovable properties including real estate, the new regulation stipulates that all transactions above Rs 5 lakh should be made with PAN quoting. Earlier the limit was Rs 10 lakh. The limit for high value expend
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