Production by the 10 member countries, excluding Iraq and Angola which joined the group this year only, increased by 70,000 barrels per day (bpd) to 266.4 lakh bpd from 265.7 lakh bpd in April.
Iraq is willing to double the credit period on crude sales to 60 days if Indian refiners buy more in 2014, the head of refineries at Hindustan Petroleum said. Iran has also sweetened the deal to expand its dwindling market share by offering free shipment and a nominal discount to Indian refiners, sources said last week.
Reliance imported about 1.09 million bpd in January as it had cut runs at its older 660,000 barrels per day (bpd) plant by about 23 per cent from a year ago.
The task of Union Finance Minister Arun Jaitley to keep inflation under check, even when the country reeled under severe drought for two years in a row, and reduce the current account deficit, was made easier by low crude oil prices.
India, with the increases already made in the January-March loading plans from Iran, has to cut its purchases of the crude to about 110,000 barrels per day.
Iran can now unlock $4.2 billion of payments for its oil stuck with major clients including India, China, Japan and South Korea after it reached an interim deal with six world powers in November over its nuclear programme.
Despite the recovery to above $40 levels after hitting $28-29 in Jan, worries of over-supply in the face of weak demand remain.
Saudis are interested in expanding their relationship with India, given it is becoming the main driver of crude demand growth in Asia
Oil accounts for about a third of India's total imports and higher dollar prices combined with a rupee near all-time lows have increased its cost.
India has already pipped Japan as the world's third-largest oil consumer.
Output in the first half of the year was 101.59 million tonnes.
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The investment will be fully funded from the firm's cash resources and will target adding 530 million barrels of oil to its reserves.
Tehran plans to lift exports by 500,000 barrels per day
Indian Oil Corporation has started buying crude oil from Cairn India's Rajasthan oil fields, which have now crossed the 1,00,000 barrels per day mark in production.
India's oil ministry has decided to divert 30,000 barrels per day (bpd) of indigenous crude oil from refiner Hindustan Petroleum Corp, which is being privatised, to feed small state-run refineries in remote areas, officials said.
India is the world's fourth-largest importer of natural gas, accounting for six per cent of the global market.
Rising production from OPEC as well as the US also weighing on prices
Mumbai High during normal days produces 2,42,000 barrel per day (bpd) of crude oil while another 70,000 bpd is contributed by Heera and Neelam fields. The rest comes from South Bassein field, all lying off the west coast. Natural gas production from these fields had fallen to almost nil, impacting supply to industry and city gas operations in Mumbai.
Reliance Industries has sought environment ministry approval for a $13 billion upgrade to its Jamnagar complex, including a 400,000 barrels per day (bpd) refinery.
Saudi Arabia, the world's leading oil producer, is planning to invest $80 billion to increase its oil output to 12.5 million barrels per day (bpd) and expand its refining capacity by 43 per cent to six million bpd within the next few years.
Brent crude was trading at $105 a barrel on Friday while US oil was at $96.75.
OPEC hopes lower fuel prices will stimulate more demand in the long run
The European Commission will propose scrapping tariffs on jet fuel imports starting January 1, an official said on Friday.
Whatever be India's course of action, it will have an impact on India-Iran ties, notes Aveek Sen.
The shift comes as the gap between the international benchmark Brent and the Middle East price marker narrows
Moscow-based OAO Rosneft Chairman Igor Ivanovich Sechin said the agreement was to ship by sea as much as 10 million tons of oil per year to Essar Group.
OPEC agrees to keep pumping as oil glut fears persist.
Insurance companies are anticipating claims of at least Rs 500 crore from the incessant rains and flooding in Chennai.
Officials from India's biggest private refiner recently visited Iran to chalk out the details for resumption of trade ties with Tehran.
The International Energy Agency increased on Thursday its estimate of global demand for oil this year by 470,000 barrels per day to a total of 81.1 million bpd owing particularly to strong first-quarter demand in India and Brazil.\n\n\n\n
Prices are sustainable and not just driven by speculative gains
Oil prices dipped on Wednesday as the market prepared for a gradual increase of Iranian exports into an already oversupplied market from 2016.
Buyers find ways to cope with shipping restrictions.
The drop in oil to around $50 a barrel this year has triggered steep cutbacks in production of US shale oil
There was a fire at its older, 660,000 barrels-per-day (bpd) refinery in Jamnagar.
RIL wants to drill an exploration well on the D1&D3 gas fields in the KG-D6 block, Cairn on the Rajasthan block.
Governments encouraged motorists to switch to diesel in the belief that its superior fuel economy would outweigh the higher pollutants per litre burned.
Given that India will get a huge part of its oil supplies from Iran through its government-owned oil PSUs, any unwelcome shocks in global crude rates could be absorbed well enough.
Cairn India produces 125,000 barrels of crude oil per day (6.25 million tonnes a year) from Mangala oilfield, the largest among the 15 discoveries in the Rajasthan block RJ-ON-90/1.
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