NEW DELHI: Oil-producing group OPEC+ Sunday approved another modest increase of 188,000 barrels per day (bpd) in production for Aug, the fifth such hike in as many months since the war broke out in West Asia.Analysts said the move is expected to increase crude availability in the market, put downward pressure on prices and ease the burden on countries such as India, which imports nearly 90% of its crude oil requirement.Global benchmark Brent crude has slipped close to its pre-conflict level of about $72 a barrel, while the Indian basket has eased to $67-68 a barrel. Higher supplies are expected to reduce inflationary pressure and help India build up its strategic reserves. tnn

Oil firms may break even on petrol, diesel within 10 days if prices hold current levels

Though oil companies continue to report under-recoveries, they may break even on petrol and diesel in the next seven to 10 days if crude prices hold around current levels, although they are losing around Rs 500 on every cylinder of cooking gas sold by them. State-run refiners have lost more than Rs 75,000 crore during the first quarter of the current financial year, and given the stock of higher-cost oil purchased by them, their bottom lines remain under pressure during this quarter as well.The decision was taken at a virtual meeting of seven major producers led by Saudi Arabia and Russia to review market conditions and the global outlook. According to reports, the group has added 940,000 bpd to production quotas since the West Asia war began on Feb 28 – equivalent to nearly 1% of global oil demand.The increase, however, has largely remained on paper as the US-Israel attack on Iran disrupted energy supplies through the Strait of Hormuz, the key maritime route for crude shipments from Saudi Arabia, Kuwait and Iraq. More than a fifth of the world’s oil supplies passed through the strait before the war. The availability of Iranian crude – for which payments can be made in dollars – has eased the pressure for countries, as has the entry of oil from Venezuela.“The group of seven kept unwinding their production cuts as widely expected,” UBS analyst Giovanni Staunovo told Reuters. “The near-term focus will remain on how many tankers will manage to cross the Strait of Hormuz and how quickly demand and Chinese crude imports recover.”The announcement came days after founding member Iraq said it may quit the group if it was denied a higher production limit. The UAE exited the group in May to align its output with its production capacity.The latest increase is part of the gradual unwinding of production cuts totalling 2.2 million barrels per day announced by eight OPEC+ countries in Nov 2023. These were in addition to cuts of 1.66 mbd announced in May 2023 to support oil prices and market stability.