(Bloomberg) -- Oil fell to near $45 a barrel -- but was still on track for a fourth weekly gain -- amid signs of division among OPEC+ members just days before a key policy meeting on whether to extend production curbs.Futures in New York fell 1.5% from Wednesday, with prices not closing on Thursday due to the Thanksgiving holiday. While most analysts are forecasting OPEC+ will postpone planned supply increases by three months to March at a meeting next week, some see a chance of a shorter delay amid resistance from the United Arab Emirates and Iraq, which are eager to resume oil sales.Crude is up around 7% this week as signs Covid-19 vaccines could be rolled out within weeks led to expectations for a swift recovery in energy demand next year. The gains have happened even as the virus surges in Europe and the U.S., with Germany extending a partial lockdown for at least three more weeks.OPEC’s president said Thursday the group must remain cautious, with internal data pointing to the risk of a new oil surplus early next year if output is hiked in January. That came after Iraq’s deputy leader criticized the group, saying the economic and political conditions of member countries should be considered before they are asked to withhold production. The recent oil rally gives leverage to members reluctant go go along with the delay, Standard Chartered Plc said in a note. OPEC+ meets Nov. 30 to Dec. 1.Oil is up around 26% this month, with WTI settling technically overbought on Wednesday, a sign that a possible reversal had been on the cards. Several key timespreads have flipped to backwardation this week, a bullish signal where near-dated prices are more expensive than later-dated ones.Industrial action in Norway, meanwhile, could threaten some oil and gas production. If a long running safety guard strike isn’t resolved before the weekend, two of the country’s fields may have to stop flows.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- India, the world’s biggest palm buyer, reduced its levy on the crude variety of the tropical oil to shield local consumers from a rally in global prices.The duty on crude palm oil has been lowered to 27.5% from 37.5%, the finance ministry said in a notification. The reduction is effective from Friday, it said.Palm oil purchases by the south Asian nation, which imports more than two-thirds of its edible oil needs, climbed to a three-month high last month. The lower tax is expected to further boost inbound shipments and support benchmark prices of the commodity, used in everything from cooking oil to shampoo.Palm oil futures in Malaysia have surged about 66% since the year’s low in May amid strong demand from India and China. The duty move is expected to help Indonesia and Malaysia, the world’s biggest growers.Exports of the commodity from Malaysia slumped almost 19% from a month earlier to 1.15 million tons during Nov. 1-25, according to cargo surveyor AmSpec Agri.Lower duties, however, may impact domestic farmers, who are sowing winter crops at present, said B.V. Mehta, executive director of the Solvent Extractors’ Association of India. “The government has taken the decision from the consumer’s angle. It would have been better if they had cut duties of other oils also.”India’s monsoon-sown oilseeds output is seen rising 15% from a year earlier to 25.73 million tons in 2020-21, according to the farm ministry. Production of soybeans is expected to rise to 13.58 million tons from 11.22 million tons, it added.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Peru’s oil industry is facing a serious crisis, with COVID-19, inconsistent regulation, and constant conflict in the Amazon significantly impacting investment