Kerala announces cut in petrol, diesel prices by Rs 1 per litre from June 1

Amid soaring fuel prices, Kerala Chief Minister Pinarayi Vijayan on Wednesday said petrol and diesel prices in the state would be slashed by Rs one per litre from June 1.

A decision in this regard was taken at the state cabinet on Wednesday.

The reduction would cause a yearly loss of Rs 5.09 billion to the state exchequer on the tax front, he said.

The petrol price in the state on Wednesday was Rs 82 per litre, while for diesel it was Rs 75, he said.

"The Centre should reduce the rising fuel prices as it was causing severe hardship to the common man", Vijayan said, adding that by reducing the petrol and diesel prices in Kerala, the government has set an example for the Centre to follow.

Even as international crude oil prices are coming down, fuel prices in the country were going up, he claimed.

RBI monetary policy: Four charts show markets are preparing for a rate hike

The interest-rate cycle in India is turning. The central bank may be set to tighten policy next week to keep inflation in check and stem the declines in the rupee if the rate-market moves are any indication.

The Reserve Bank of India hasn’t tinkered with rates since August, and even cut inflation projections last month, raising expectations that borrowing costs would remain on hold. But a surprising hawkish tilt revealed in its April policy minutes and the recent spike in oil has boosted speculation the authority may lift rates at its June 6 meeting.

“Front-end bonds are fully pricing in a 25-basis point hike in June,” said Suyash Choudhary, head of fixed income at IDFC Asset Management Co. in Mumbai. “Even accounting for some higher supply absorption premium, one can say that a 75-basis point increase seems to be comfortably discounted over the next year.”

Iran prepares to export new oil grade amid sanctions threat: Sources

Iran is readying the first commercial exports of its West Karoun crude oil grade for May or June, two sources familiar with the matter said, even as fresh economic sanctions against the country loom.

Iran has already been shipping samples of the grade to customers since production from the West Karoun oilfields in southwest Iran nearly doubled in the past year to 300,000 barrels per day (bpd), the sources said. A new export facility allows West Karoun to be shipped directly rather than blended with other grades.

"Initial cargoes of West Karoun will be sold on a spot basis as the quality of the crude is yet to be established." said one of the two sources.

This means that buyers have no obligation to take regular amounts of the crude as they do under the long-term off-take agreements that are typical for Middle East oil sales.

Iran used to sell crude only under long-term deals before economic sanctions were imposed in 2012, but began spot sales after sanctions were lifted in 2016 to regain market share.

EU ministers approve new sanctions to punish North Korea

The European Union mposed fresh sanctions on North Korea today as part of international efforts to punish the pariah regime for its nuclear and ballistic weapons programmes.

Foreign ministers meeting in Luxembourg signed off a new package of measures including a ban on investments in North Korea and on EU exports of oil to Pyongyang.

They also tightened the restrictions on North Korean workers in the EU to try to stop money being sent home that could be used to fund the disputed weapons programmes.

The EU said the new steps were taken in view of the "persistent threat to international peace and stability" posed by Kim Jong-Un's regime.

The North carried out its sixth nuclear test -- and most powerful to date -- on September 3, sparking international outrage and a fresh round of sanctions.

More people and entities associated with Kim Jong-Un's regime have been blacklisted and the ceiling for payments that can be made to North Korea has been cut from 15,000 euros to 5,000 euros.

A total ban on EU investment in North Korea is now in force, along with a complete halt to sales of crude oil and refined petroleum products.

As part of efforts to ensure sanctions are effective, EU members will instruct their embassies in countries seen as a risk of evading North Korean sanctions to deliver formal warnings to comply.
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Oil prices rise as Saudi Arabia plans to cut exports in November

Oil prices extended gains with the US crude posting best daily gain in two weeks, after Saudi Arabia said it would cut oil exports in November.

The West Texas Intermediate for November delivery on Tuesday increased $1.34 to settle at $50.92 a barrel on the New York Mercantile Exchange, while Brent crude for December delivery rose $0.82 to close at $56.61 a barrel on the London ICE Futures Exchange.

According to media reports, Saudi Arabia would cut its November crude oil allocations to customers by 560,000 barrels a day, according to Andrew Lipow, president of Lipow Oil Associates.

The Organization of the Petroleum Exporting Countries (OPEC), Russia and several other producers have cut production by about 1.8 million barrels per day since the start of 2017.

Lipow said the potential impact of maintenance season on demand for Saudi supplies but said any drop in exports from OPEC's biggest producer is bullish to the extent it takes oil off the market.
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Opec calls on US shale oil producers to slash global supply, prop up prices

Opec's Secretary General Mohammed Barkindo on Tuesday called on US shale oil producers to help curtail global oil supply, warning extraordinary measures might be needed next year to sustain the rebalanced market in the medium to long term.

"We urge our friends, in the shale basins of North America to take this shared responsibility with all seriousness it deserves, as one of the key lessons learnt from the current unique supply-driven cycle," said Barkindo.
The comments by the Organisation of the Petroleum Exporting Countries official came during a speech delivered at a conference in New Delhi.

While Opec and some other producers, including Russia have cut supplies this year in order to prop up prices, US production has soared by almost 10 per cent this year, driven largely by shale drillers. Barkindo said he hoped that new producers, not just US shale drillers, would join production cuts.

On Monday, Saudi Arabia cut crude oil allocations for November by 560,000 barrels per day (bpd), in line with the kingdom's commitment to the Opec-led supply reduction pact.

Still, the top oil exporter plans to ship slightly above 7 million bpd next month, up from low levels during summer when domestic demand was at its peak.
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Trump ditches climate deal: Be happy! Now we can blame US, says Putin

While other world leaders have strongly condemned President Donald Trump's decision to abandon the Paris climate accord, Russian President Vladimir Putin has said he won't judge.

"Don't worry, be happy!" Putin quipped yesterday after being asked for his reaction at an economic forum in St Petersburg, Russia. He said the climate deal doesn't formally go into effect until 2021, giving nations years to come up with a constructive solution to combating global warming.

For Putin, leader of the world's biggest crude oil producer and fifth-largest emitter of greenhouse gases, there was plenty to cheer in Trump's rejection of the agreement painstakingly negotiated by the Obama administration and signed by 195 countries.

Trump's move drives another wedge between the United States and its traditional European allies, while aligning its stance closer to Russia in boosting fossil fuels while deferring action to curb climate change.

While Putin's government signed the 2015 Paris accord, he has delayed formally ratifying the agreement for at least two more years. Russia's voluntary reduction goals under the deal are among the weakest submitted by any country, potentially allowing it to spew more planet-warming emissions in future years, not less.

Russia pledged to reduce its carbon emissions by at least 25 per cent below 1990 levels by 2030. That gives Putin lots of wiggle room because the fall of the Soviet Union in the early 1990s triggered the collapse of the country's centrally planned economy, greatly reducing carbon emissions in subsequent years.

Russia also insisted in its Paris submission that it be given the maximum potential credit for carbon adsorbed out of the atmosphere by Siberia's vast undeveloped forests. Under current projections, Russia could step up its carbon emissions and still claim to meet its 2030 goals.

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