Solid Expectations Of A Supply Cut But Skepticism Over The Final Deal
– Estimation Of A 1-1.4 Million Barrels Per Day Production Cut
– Uncertainty On Whether Russia Would Be Willing To Forego Barrels
– Qatar Announced Plans To Exit OPEC, Citing Limited Benefits From The Cartel
Unrefined petroleum Prices Have Seen A Sharp Plunge In The Last Two Months, Which Impacted Fortunes Of Oil Exporting Countries. The Softness Was Due To:
1: Expectations Of A Slowdown In Demand Growth,
2: Softness In Implementation Of Iranian Sanction, With US Granting Waivers To Eight Countries,
3: Rapidly Rising Supply.
4: An Uptick In The US Reported Inventories,
5: Covering Of Hedged Exposure By Banks,
Indian Has Strong Engagements With OPEC Nations, Sourcing Nearly 83 Percent Of Its Crude, 98 Percent Of Its LPG (Liquefied Petroleum Gas) And 74 Percent Of Its LNG (Liquefied Natural Gas) Needs. Rising Crude Oil Prices Had A Serious Impact On Its Current Account As Well As The Overall Fiscal Math. There Have Been Speculations That India Is Looking At Countries Outside OPEC (Such As The US And China) To Source Its Crude And Gas Supplies At More Competitive Rates.
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