collected by :Molly Tony
as declared in The US’ ability to quickly ratchet up oil production in response to higher prices has put a ceiling on global crude prices.
Despite a successful effort to reduce oil production by the Organization of Petroleum Exporting Countries, oil prices recently fell to below $ 50 a barrel, a three-month low.
The primary reason: A countervailing surge in shale oil production by the United States.
The Indian government can breathe more easily about one of its macro-economic concerns: Rising global oil prices.
The Narendra Modi government has benefited hugely from the slump in oil prices that began in 2014.
Oil “is finding tailwind from agency reports that OPEC is seriously considering extending its production cuts to beyond June.
OPEC sources have indicated the members increasingly favor an extension but want the backing of non-OPEC oil producers, which have yet to deliver fully on existing cuts.
“That said, OPEC’s condition for extending the production cuts is that non-OPEC countries — and particularly Russia — sign up to the deal,” the analysts said.
May Brent crude (IFEU:LCOK7) rose 40 cents, or 0.8%, to $52.02 a barrel on the ICE Futures exchange in London.
Elsewhere, April gasoline (XNYM:RBJ7) rose by 1.1% to $1.63 a gallon, while April heating oil (XNYM:HOJ7) gained 1% to $1.53 a gallon.