Hike in petrol, diesel rates after global oil price jump - ETEnergyworld.com

Hike in petrol, diesel rates after global oil price jump - ETEnergyworld.com

Hike in petrol, diesel rates after global oil price jump - ETEnergyworld.com

Posted: 12 Jan 2021 11:33 PM PST

Hike in petrol, diesel rates after global oil price jumpNew Delhi: Petrol and diesel prices rose sharply by 25 paise per litre on Wednesday after oil marketing companies decided to break the momentary pause in the wake of a sudden spike in the global oil prices.

Accordingly, in the national capital, petrol was sold at the new record high level of Rs 84.45 from the previous days of Rs 84.20 a litre while diesel price increased to Rs 74.63 per litre as against Rs 74.38 a litre earlier.

Across the country as well the pump price of petrol and diesel increased on Wednesday but the quantum varied depending on the prevailing tax structure in each state.

Auto fuel price rise was on hold for the last five days after the petrol and diesel prices had increased on two successive days last Wednesday and Thursday taking gasoline to record high levels in Delhi while keeping its prices very close to record high levels in other metro cities.

But, the OMCs ran out of patience on Wednesday as global crude prices have risen sharply lately taking benchmark Brent crude price to over $57 a barrel now and rising. The rise is primarily on account of Saudi Arabia's decision on unilateral production cuts to balance oil prices on pandemic affected demand reduction in an oversupplied market.

At Rs 84.45 a litre in Delhi, petrol price has breached the highest level in the national capital after October 4, 2018, when the rate had risen to Rs 84 a litre.

The OMCs' patience of holding back fuel prices was broken last week on Wednesday when they increased the retail price of petrol and diesel for the first time this year after over a month-long pause.

Petrol price was very close to breaching the all-time high level of Rs 84 a litre (reached on October 4, 2018) when it touched Rs 83.71 a litre on December 7, 2020. But the march had been halted ever since then with no price revision by the OMCs.

Oil companies executives said that petrol and diesel prices may increase further in coming days as retail prices may have to be balanced in line with global developments to prevent OMCs from making losses on the sale of auto fuels.

Oil dips below US$52 with dollar rising as rally takes a breather - BNN

Posted: 11 Jan 2021 05:51 AM PST

Oil fell as the dollar strengthened, with the steam coming out of a rally that pushed crude to the highest level in 10 months.

Futures in New York lost 1 per cent as the dollar's gains reduced the appeal of raw materials such as oil that are priced in the currency. Both West Texas Intermediate and Brent crude are trading in overbought territory, according to the 14-day relative strength index, signaling prices are due for a correction.

With crude starting the year strongly, Goldman Sachs Group Inc. said it expects Brent to reach US$65 a barrel by the summer, sooner than previously anticipated. Last week, Saudi Arabia pledged deeper output cuts, a move that Goldman said will bring forward market tightness. The kingdom also increased its oil prices to Asia, and was followed by Iraq, Abu Dhabi and Kuwait.

Oil has surged about 45 per cent since the end of October after a series of COVID-19 vaccine breakthroughs raised expectations for a sustained rebound in fuel consumption, even though the rollout of shots will probably take some time. The broader commodity market is seeing renewed confidence from investors, with record wagers that oil, crops and metals are set to gain.

"The market has now reached a price level that potentially doesn't reflect current fundamentals," said Ole Hansen, head of commodities strategy at Saxo Bank A/S. "Oil could be next in line" to suffer from a stronger dollar after other commodity prices came under pressure.


  • WTI for February dropped 53 cents to US$51.71 a barrel at 8:40 a.m. in New York
  • Brent for March settlement fell 1.5 per cent to US$55.16
  • Both WTI and Brent closed above their upper Bollinger bands on Friday, another technical signal that a rally may be overdone

Saudi Arabia's pledge last week for a unilateral output cut of 1 million barrels a day eased concerns about oversupply. WTI for February is at a premium to March, the first time that's happened to the nearest contract since May. The structure, known as backwardation, indicates tight supply.

With crude markets starting the year on the front foot, there's also been an uptick in trading activity. Combined holdings of Brent and WTI futures are at the highest since June, a sign that traders are adding new money to the market.

Other oil-market news:

  • Russia raised its crude and condensate production in early January after OPEC+ agreed to a gradual ramp-up.
  • Crude flows from Kazakhstan were halted due to severe frost in the north of the country. Two Kazakh regions remained without power supply, including the pumping station that delivers oil to Russia's pipeline system.
  • Saudi Crown Prince Mohammed bin Salman unveiled his latest vision for the country's future beyond oil: a city with no cars, roads or carbon emissions.
  • India's petroleum consumption fell for the first time in more than two decades in 2020 as the pandemic shuttered businesses and factories, hurting demand from one of the world's largest users.

LNG shipping rates from U.S. surge to record highs on Asia buying boom - ETEnergyworld.com

Posted: 12 Jan 2021 07:24 PM PST

LNG shipping rates from U.S. surge to record highs on Asia buying boomLONDON: The cost of shipping liquefied natural gas (LNG) from the United States to Asia hit a record high on Tuesday as appetite for the fuel from buyers there and delays through the Panama Canal reduced the amount of ships for hire.

Freezing temperatures across Asia and Europe have pushed up LNG prices and lifted wider gas prices as buyers grapple with shrinking inventories and the shortage of tankers.

Shipping sources said an apparent ban on Australian coal imports into China, which has been reported by Chinese media, had also bolstered demand by Chinese buyers for LNG tankers to carry cargoes to Asia.

Average daily tanker rates on the U.S. Gulf to Japan route rose to $253,270 on Tuesday, its highest since earnings were first published in 2019, Baltic Exchange data showed. This compared with $174,000 a day at the end of last year, the Baltic data showed. "The sector continues to establish new all-time highs with no slowdown in activity," shipbroker Clarksons Platou Securities said on Tuesday.

Shipping sources said new build LNG tankers hitting the water were being pulled into service to meet the demand.

The United States, a major LNG producer, ships LNG cargoes through the Panama Canal waterway to buyers in Asia.

Toby Dunipace, with shipbroker SSY, said Panama Canal congestion had led to waiting times of seven to 10 days or more for LNG vessels.

"This bottleneck for shipping has an immediate impact on the demand for gas. Storage supplies are low and therefore, demand is high," he said in a report this week.

"If we see a cold February and March, then the shipping market could see an overall positive (first quarter)."

Shipping sources said delays through the Panama Canal had been compounded of late by weather disruptions, higher than expected LNG traffic as well separate tanker shipments of liquefied petroleum gas (LPG), which were also trying to sail through the waterway.

LNG tanker rates from the U.S. Gulf to Europe softened this week to $310,691 a day from a high of over $320,000 a day last week, Baltic Exchange data showed. (Reporting by Jonathan Saul in London; editing by Jonathan Oatis)

DBO Energy takes pole position in Petrobras deepwater sale, sources say - ETEnergyworld.com

Posted: 12 Jan 2021 07:13 PM PST

DBO Energy takes pole position in Petrobras deepwater sale, sources sayRIO DE JANEIRO, - DBO Energy, an oil and gas firm backed by Germany's RWE AG, is in bilateral talks with Petrobras to buy the Golfinho oilfield cluster in Brazil, two sources said, as the state-run oil company kicks its ambitious divestment program back into gear.

Golfinho is one of dozens of legacy production assets that Petroleo Brasileiro SA, as the company is formally known, is selling in a bid to reduce debt and sharpen its focus on a prolific, deepwater formation called the 'pre-salt.'

The company struggled to deleverage for most of last year, as the pandemic sapped demand for oil-producing assets.

But in recent months, Petrobras has sped back up its asset sales, accepting binding offers for a number of major assets, including five refineries and an onshore oilfield cluster known as Urucu.

Both Petrobras and DBO declined to comment.

Golfinho, a mature, deepwater cluster located off the coast of Espirito Santo state, was among the last major production assets that Petrobras put on the block before COVID-19 hit Brazil in earnest.

The cluster was producing 14,900 barrels of oil and condensate per day, according to January 2020 bidding documents.

One person involved in the deal said the parties were discussing dollar values in the nine-digit range.

Any deal is still months from closing, the source added.

Norway's BW Energy Ltd was among the firms that mulled a bid, but ultimately decided not to make a binding offer, according to another source, as well as a third source with knowledge of the matter. All the sources requested anonymity to discuss confidential matters.

BW did not respond to a request for comment.

Rio de Janeiro-based DBO is composed of Brazilian and Norwegian executives who have experience operating mature assets both in Brazil and in the North Sea, according to the company's website. The firm lists RWE Supply & Trading, an arm of RWE, as an investor. (Reporting by Gram Slattery and Marta Nogueira Editing by Brad Haynes and Rosalba O'Brien)


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