Indian refiners are ready to start transferring cash owed for Iranian oil as early as next week following a landmark deal to curb Tehran’s nuclear program that allows importers to shift billions of dollars back to Iran.
Middle East oil exporters are locked in an increasingly fierce battle for the world’s fastest-growing markets in Asia, as producers worldwide ship more crude east to compensate for shrinking demand from the United States and Europe.
The fight for the trillion-dollar Asian oil market has ended decades of comfortable dominance for Middle East producers, who faced so little competition that refiners in Asia complained of being charged a premium of a dollar or so per barrel above what buyers in Europe or the Americas paid.
NEW DELHI: India will conduct a feasibility study to import crude oil and gas from Kazakhstan through a pipeline or as LNG in ships, Oil Minister Dharmendra Pradhan said today. Kazakhstan is land-locked from three sides. The other side is the Caspian Sea, which essentially is like a large, deep pond surrounded by countries on all sides. Transporting oil from Kazakhstan will involve taking it to Iran via Caspian Sea or land route.
LONDON: Oil slipped back below $67 a barrel on Thursday as a market torn between a US stock draw and an overall glut of crude in the Atlantic Basin struggled for direction. Prices were briefly supported by news that Iran's Revolutionary Guard fired warning shorts over a cargo ship in international waters in the Gulf. Trade was in a narrow range as players tried to square bullish factors including the US stocks data, spot demand for crude in Asia and Middle East unrest with basic supply fundamentals. "The market is really in a pause," said Harry Tchillgurian.
Introduced to help enforce price controls in the fuel-hungry 1970s, America's ban on crude-oil exports was all but forgotten when the economy boomed and imports soared. Now it is in the news again. It keeps American crude, measured by the West Texas Intermediate benchmark, around $10 below the world price (see chart).
LONDON — Brent crude oil fell to a 5-1/2-year low of less than $57 a barrel on Tuesday as a global supply glut outweighed concerns of lost supply from Libya where battling militias have closed ports.
The North Sea oil benchmark recovered some ground later but was on track for its weakest month since the global financial crisis of 2008, and traders said the sell-off that has halved crude prices in six months showed no sign of coming to an end.
World oil production stagnated between 2005 and 2007, which given rapid growth in demand from emerging economies sent oil prices shooting up. Some observers suggested that production might never rise much above the levels seen in 2005. Among those who raised this possibility, two of the more thoughtful have changed their mind.