Oil prices have jumped at the beginning of the trading week after indications emerged from the Organization of the Petroleum Exporting Countries (OPEC) that the body may maintain production cuts until the end of 2019.
India’s sudden halting of crude oil imports came as a shock for long-standing strategic partner Iran, but Tehran believes purchases will resume as soon as a new government comes to office in New Delhi, Iranian Ambassador to India Ali Chegeni told ThePrint.
Oil hit multi-week highs on Monday after OPEC indicated it was likely to maintain production cuts that have helped boost prices this year, while escalating Middle East tensions provided further support.
Iraq backs an extension of the OPEC/non-OPEC production cut agreement, Thamir al-Ghadbhan, the country’s oil minister said on Sunday, while his Kuwaiti counterpart said current prices indicated the market was well-supplied, despite the US tightening sanctions on Iran.
OPEC said that world demand for its oil would be higher than expected this year as supply growth from rivals including US shale producers slows, pointing to a tighter market if the exporter group refrains from raising output.
South Korea’s oil imports from Iran rose 17 percent in April from a year earlier, customs data showed on Wednesday, but shipments are set to end from May as waivers on US sanctions on Tehran expired at the start of this month.
The world's oil supply fell last month, the International Energy Agency said Wednesday, amid rising global tensions as US sanctions on Iran tightened and OPEC+ members produced less crude in line with their pact.