Amid Opec snub, Saudi Arabia asks India to use cheap oil it bought last year

Agencies
March 5, 2021

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New Delhi, Mar 5: International oil prices rose after Opec and its allies ignored India's plea to ease production control, with Saudi Arabia asking New Delhi to instead use oil it bought at rock bottom rates last year.

Brent crude, the most widely used benchmark, on Friday rose nearly 1 per cent to $67.44 a barrel after the Organization of the Petroleum Exporting Countries (Opec) and its allies, a group known as Opec, agreed not to increase supplies in April awaiting more substantial recovery in demand.

India's oil minister Dharmendra Pradhan had in the run-up to Thursday's Opec meeting urged the producers' group to ease production curbs to fulfil their promise of stable oil prices.

He felt rising international oil prices were hurting economic recovery and demand.

Responding to a question on India's pleas, Saudi energy minister Prince Abdulaziz bin Salman at a press conference after the OPEC+ decision on Thursday said New Delhi should take some of the crude out of storage that they had purchased at very cheap rates last year.

"With regard to India, very simple. I would ask my friend that he withdraw some of the cheap oil that they bought in April, May and June (last year)," the Saudi minister said. "There is an opportunity cost for not withdrawing it now."

India had purchased 16.71 million barrels of crude in April-May, 2020 and filled all the three Strategic Petroleum Reserves created at Visakhapatnam in Andhra Pradesh and Mangalore and Padur in Karnataka. The average cost of that crude purchase was $19 per barrel, according to Pradhan's written reply to a question in the Rajya Sabha on September 21, 2020.

Retail petrol and diesel prices, which already are at historic highs, should rise if the oil companies decide to pass on the surge in international oil prices to consumers.

Petrol and diesel prices have remained unchanged for the last five years and oil companies have in past not revised prices in the run to crucial assembly elections in 2017 and 2018 ahead of elections in states like Uttar Pradesh and Gujarat.

West Bengal, Tamil Nadu, Kerala, Pondicherry and Assam will go to the polls in the next few weeks.

Earlier this week, Pradhan had said India, where fuel demand is recovering to pre-pandemic levels, wants reasonable and responsible oil prices.

India, the world's third-biggest oil importer and consumer, had supported the decision of the oil producers' cartel Opec and its allies to cut production last year in view of the oil demand collapsing due to the spread of Covid-19.

"At that point in time, the producers especially Opec assured the global market, that by the beginning of the 2021 demand will be coming back and production will be as usual. But I am sorry to say the production is yet to be normal," he said. "If you do not supply properly if there is a gap in demand and supply artificially (created), there is a price rise."

The average price of crude oil India imports was less than $50 per barrel between April and December 2020 and comparable to 2019-20 average rate of $60.47 in months thereafter but petrol and diesel prices are at historic highs now as the government has so far not rolled back the taxes it levied when prices plummeted almost a year back.

The record taxes coupled with international rates returning to pre-Covid levels on resurrecting demand have meant that petrol has crossed Rs 100 mark in some places in Rajasthan, Madhya Pradesh and Maharashtra.

Excise duty was raised by Rs 13 and Rs 16 per litre on petrol and diesel between March 2020 and May 2020 and now accounts for more than one-third of the Rs 91.17 a litre price of petrol in Delhi and 40 per cent of Rs 81.47 per litre rate of diesel.

'Excise duty on petrol, diesel can be reduced by Rs 8.5 a litre without hurting revenues'

The basket of crude oil India imported in February averaged $61.22 per barrel and $54.79 in January this year. It had fallen to $19.90 in April last year and was between $40 and $49 during June and December.

India imports about 85 per cent of its oil needs and local retail rates are benchmarked to international prices.

Opec+, which is currently reining in about 7 million barrels per day of production -- about 7 per cent of pre-pandemic supply -- has helped engineer a nearly 80 per cent rise in the Dated Brent benchmark since November. Saudi Arabia has taken a voluntary extra 1 million bpd production cut in February and March.

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News Network
November 13,2024

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Beirut: The Israeli army on Tuesday continued to launch attacks against civilians in Lebanon, targeting them in several areas without prior evacuation warnings.

However, 13 airstrikes on Beirut’s southern suburbs in the space of only three hours were preceded by evacuation warnings.

The attacks caused no injuries but resulted in widespread destruction of residential buildings and commercial, medical and educational centers.

The airstrikes in southern Lebanon and Bekaa region, reaching Akkar in Lebanon’s far north, erased any hope of a near-term ceasefire settlement.

The strikes were accompanied by an announcement on Israel’s Channel 14 that “the Israeli army has expanded its operations in southern Lebanon to areas it had not reached since the beginning of the ground operation.”

About 50 days have passed since Israel intensified its hostile operations in Lebanon targeting Hezbollah. The death toll from these confrontations and attacks has passed 3,200, with more than 14,000 wounded.

For the first time, an airstrike targeted a mountainous area between Baalchmay and Aabadiyeh on the road leading to Aley, destroying a building housing displaced people.

The mayor of Baalchmay, Adham Al-Danaf, confirmed that “the airstrike targeted a residential building in the Dhour Aabadiyeh area.”

The initial toll from the Ministry of Health showed “five people killed and two injured.”

The raids that targeted Beirut’s southern suburbs for the first time in the morning, unlike nightly raids before, caused huge destruction. Those who evacuated their homes after Israeli warnings, used their phones to record the collapse of empty buildings in Sfeir, Haret Hreik, Bir Al-Abed, Mrayjeh, Laylaki and Hadath.

Israeli warplanes also targeted Tyre, where a strike on a building killed three people and injured many others, while a raid on Tefahta killed a man identified as Kifah Khalil and his family.

Attacks were widespread, with Yater and Zebqine subject to artillery shelling, a civilian being killed in Hermel, and further attacks on Bouday and an area between the towns of Srifa and Arsoun.

A raid on the town of Siddiqin killed two people and injured several others, while an attack on the Mechref farm led to one fatality and multiple injuries.

The search for those missing after an Israeli raid on the town of Ain Yaacoub in Akkar, in the northernmost part of Lebanon, continued until dawn.

During the operation, 14 bodies were retrieved, identified as those of residents displaced from the town of Arabsalim in the Iqlim Al-Tuffah area of the south, along with members of a Syrian family, a mother and three of her children. Additionally, there were 10 people in critical condition.

The targeted residence belongs to a Lebanese citizen, Hussein Hashim, who is reported to be a member of the Syrian Social Nationalist Party.

An airstrike on the town of Saksakiyeh in the Sidon region on Monday night resulted in yet another tragedy.

It appeared that the intended target was the Shoumer family, who just days before lost Hussein Amin Shoumer and his two sisters in a drone strike near Al-Awali River.

Israeli army spokesperson Avichay Adraee issued additional evacuation warnings for towns in the southern region along the Litani River, which, according to estimates from the mayors, are currently 90 percent uninhabited.

In the meantime, Hezbollah announced its continued efforts to “combat the intrusions of Israeli forces and to strike military installations and towns in the north.”

Hezbollah said in a statement that it confronted “an Israeli Hermes 450 drone in the airspace of Nabatieh and forced it to leave Lebanese airspace.”

The party also announced that it targeted “Kfar Blum settlement with a rocket salvo.”

On the Israeli side, air raid sirens sounded in areas of Upper and Western Galilee and in the town of Kiryat Shmona and its surroundings.

The Israeli army confirmed that “a drone exploded in Nesher, east of Haifa, without activating the air raid sirens,” and that “a drone launched from Lebanon crashed into a school in Gesher HaZiv, north of Nahariya.”

Israel’s Channel 13 reported the Israeli military’s assessment regarding Hezbollah’s military strength, claiming that the group currently possesses approximately 100 precision missiles, thousands of artillery shells, and hundreds of rockets. Additionally, it was highlighted that “there are around 200 Lebanese towns that remain unvisited.”

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News Network
November 10,2024

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Mangaluru: A heart-wrenching tragedy unfolded in the quiet Bellayuru village on the outskirts of Mangaluru as a man’s life ended on a railway track following an apparent double murder. Authorities from the Mulki police station identified the man as Karthik Bhat, 32, whose lifeless body was discovered on the tracks with his head positioned on the rail, indicating a tragic suicide.

Nearby, police recovered keys to a scooter and a house, which eventually led them to uncover a series of chilling events. Following the trail, officers located Bhat’s scooter parked near Mahammayi Temple. Inside the vehicle, they found documents confirming his identity, including an RC, insurance papers, and his driving license.

Their search continued to Bhat's home in Pakshikere, Kemral village, where they discovered a locked room. With the keys retrieved from the tracks, police unlocked the door, only to be confronted by a horrifying sight. The bodies of Priyanka (28) and her young son Hriday (4) lay in a pool of blood, pointing to a brutal murder that occurred just hours before Bhat’s suicide.

Initial investigations suggest Bhat, beleaguered by ongoing family disputes, committed the murders of his wife and son on the evening of November 8 before tragically ending his own life. A death note found in his diary hinted at his mental state and tragic intentions.

Priyanka’s family, residing in Shivamogga, was informed of the incident. The couple, married for six years, now leaves behind grieving relatives and unanswered questions. Police have initiated formal proceedings, collecting statements from family members as they continue their investigation into the tragic sequence of events.

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News Network
November 7,2024

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In a significant gesture towards a smooth transition, President Joe Biden invited President-elect Donald Trump to the White House to discuss the transfer of power, following a pledge from Vice President Kamala Harris to uphold a peaceful handover.

Vice President Harris, in a heartfelt address last night, publicly acknowledged Trump’s victory and assured her full commitment to a respectful and orderly shift in governance. "Our allegiance is not to any individual but to the Constitution itself," Harris emphasized, highlighting the need for national unity and respect for democratic processes.

Reports from The Washington Post reveal that Trump’s team is already hard at work on transition plans, actively considering candidates for key Cabinet positions. For Treasury Secretary, billionaire investor John Paulson and economic strategist Scott Bessent are in the running, while Senator Marco Rubio and former acting Director of National Intelligence Richard Grenell are top contenders for Secretary of State.

Additionally, the Trump camp is eyeing influential figures for strategic roles. North Dakota Governor Doug Burgum and former primary rival Vivek Ramaswamy are rumored to be cabinet-bound, with Senator Tom Cotton potentially taking on the role of Defense Secretary. The highest priority, however, is securing a Chief of Staff, with Trump advisor Susie Wiles and Brooke Rollins among the frontrunners for this critical post.

Trump's campaign has reportedly conducted a rigorous vetting process, aimed at bringing loyalists into his administration to ensure alignment with his goals. Campaign spokesperson Karoline Leavitt confirmed that personnel selections would be announced soon, while Trump spokesperson Steven Cheung confirmed that White House transition talks are imminent.

Adding to the intrigue, there are whispers that Robert F. Kennedy Jr. might take on a prominent role in restructuring health and food safety agencies. Known for his controversial views on vaccines, Kennedy’s potential appointment is already sparking debates across the political spectrum.

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