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India buying Russian oil none of our business: German envoy

Speaking about Germany’s efforts to find a solution to the war, he said German Chancellor is every now and then on the telephone with Putin…reports Asian Lite News

India buying oil from Russia is “none of our business” German Ambassador to India Dr Philipp Ackermann said on Wednesday and noted that the decision on purchase is that of the Indian government.

The German Ambassador also said that India is a very appropriate candidate at some stage to come up with a solution to the Russia-Ukraine conflict but the stage is not now. “India buying oil from Russia is none of our business basically. That’s something which the Indian Government decides and as you get it at a very low price, I cannot blame any government who buys it,” Ackermann said in response to queries at a press conference about the upcoming visit of German Chancellor Olaf Scholz to India on February 25 and 26.

“But we would like to see some Indian engagement at some stage. India is very appropriate candidate at some stage may be to come up with some solution. But, I don’t think this is the time now. I say this with all due caution because we have listened to what Putin said yesterday. When you want to find a solution to the conflict, you need two parties to be prepared to find this solution,” he added.

He referred to President Putin’s remarks at Russia’s Federal assembly.

“What we heard yesterday, Putin said…he didn’t mention the word – negotiation or peace, one single time. India has very, very skilled diplomacy, very good diplomacy, if they want to step up they will have to find a good moment to step up. What I can say is the moment is not now,” the German envoy added.

Russian President Vladimir Putin on Tuesday said that Moscow wanted to solve the conflict in Ukraine but the Western countries had prepared a “different scenario” behind its back, Reuters reported.

“We were doing everything possible to solve this problem peacefully, negotiating a peaceful way out of this difficult conflict, but behind our backs, a very different scenario was being prepared,” Putin said while addressing the federal assembly.

Speaking about Germany’s efforts to find a solution to the war, he said German Chancellor is every now and then on the telephone with Putin.

“There’s uninterrupted communication between the Kremlin and some European capitals. We have to be honest, this communication has delivered nothing, but we believe the Ukraine crisis must be resolved diplomatically,” he said.

Ackermann said Germany “will continue to help Ukraine to defend its territory”.

“The Russian side is surprised by the unity and strategic patience of the West. It is important to sustain the international order. Our position on Crimea is clear too. It is an integral part of Ukraine,” he said.

Talking about Scholz’s India visit, he said the German leader will also visit Bengaluru besides Delhi.

“German Chancellor Olaf Scholz will arrive in India on Saturday on a bilateral visit. This is his first visit in his current tenure to India. He will visit New Delhi and Bengaluru.”

The envoy said while the Ukraine crisis will figure in the German leader’s talks with Prime Minister Narendra Modi, there will be a focus on strengthening business ties.

“India is growing” and there are many “business opportunities”, he said and noted that there are around 30 CEOs in the German delegation.

“We see Russia and Ukraine very high on agenda during the meeting between German Chancellor Scholz and PM Modi. Recently, we have seen US President Biden in Ukraine. The Indo-Pacific will be on their meeting agenda too,” Ackermann said.

He also talked about the potential of the Free Trade Agreement in boosting trade ties.

“A Free Trade Agreement (FTA) with India will increase our business here in a substantive way. German businesses are very interested in getting an FTA done between Germany and India,” he said. (ANI)

ALSO READ-Britain and Slovakia step up cooperation in security and trade

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India to lead demand for oil till 2045

India to lead demand for oil till 2045, says OPEC report

OPEC report reveals India will take the leading role in crude requirement, along with other Asian and African, reports Animesh Singh…reports Asian Lite News

After China driving the initial demand growth, it is going to be India which will take the leading role in crude requirement, along with other Asian and African countries, as per an OPEC report.

According to the OPEC’s “World Oil Outlook 2045” report, released during the ongoing India Energy Week here on Tuesday, besides India, fairly robust growth during this period is also projected for African and other Asian countries where economic progress, urbanisation, industrialisation, and vehicle fleet expansion will be fastest among all regions.

This, the report said, “will result in respective demand increases of around 1.4 mb/d, 0.8 mb/d and 0.7 mb/d, for India, Africa and Other Asia respectively during the 2040-2045 period”.

Even by 2045, oil demand will still grow at a rate of more than 2 per cent per annum in India and Africa and 1 per cent per annum in Other Asia region, the report, which charts a roadmap for oil sector from 2022 till 2045, said.

In another significant observation, the OPEC report said that it would be a global challenge to meet oil-related investment requirements of $12.1 trillion by 2045.

“Cumulative oil-related investment requirements are projected at $12.1 trillion over the entire 2022-2045 period (in 2022 US dollars). This is slightly higher than assessed in the World Oil Outlook (WOO) 2021, as upward-revised demand projections and assumed cost inflation in the short- and medium-term more than offset the forecast period being one year shorter,” it said.

Upstream needs make up $9.5 trillion, while downstream and midstream requirements are $1.6 and $1 trillion, respectively, it noted.

The report further pointed out that “risks to the economic outlook, high inflation, energy policy goals confronted with energy security challenges, and questions regarding a perceived shortfall in upstream investment, coupled with persisting and new geopolitical uncertainties, means that significant risks regarding the longer-term liquids supply outlook remain”.

Detailing a roadmap for the future, the report said that “in the current geopolitical context, besides a pressing need to increase climate ambitions, countries are increasingly focused on energy security issues. There is now more attention on an energy sustainability trilemma, related to affordability, energy security and reducing emissions, evidenced in many countries publicly recognising the need for inclusive and resilient approaches, including through more investments in oil and gas projects going forward”.

ALSO READ-Pakistan’s oil industry on brink of collapse

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‘Russia has become largest oil supplier to India’

In his address, the Russian Ambassador said further that India has taken a neutral stance as regards excluding Moscow from multilateral institutions…reports Asian Lite News

Russia has become the largest oil supplier to India and contribute significantly to the country’s energy security, Russian Ambassador to India Denis Alipov said at the Indian Council of World Affairs (ICWA)-Russian Council Dialogue.

Addressing the meeting at the Indian Council of World Affairs-Russian Council Dialogue, Alipov said, “Russia has become the largest oil supplier in India, significantly contributing to India’s energy security. We are successfully developing an alternative transport route merrily the North-South ITC to attract partners to large-scale energy and infrastructure projects in the Russian forest in Siberia for the northern sea route.” He also stated that a strong push has been given to business and interregional contexts. There is an immense prospect in sectors such as airport infrastructure, sea and rail infrastructure, steel production, petro-chemistry, startups, aircraft and shipbuilding, agriculture, advanced technology, development, and digitalisation.

Russia has a lot to offer to India and vice-versa in all these areas, with western companies leading, Russian Ambassador to India added.

In his address, the Russian Ambassador said further that India has taken a neutral stance as regards excluding Moscow from multilateral institutions.

“India has taken a neutral stance as regards the efforts to exclude Russia from multilateral institutions, including Opcwbwc, back to UNESCO and others. Our India’s priority is to achieve democracy as global governance. With the enhanced role of developing states of Asia, Africa, and Latin America,” Alipov said.

On the ongoing the conflict between Russia-Ukraine, which started last year on February 24, he said, “The Ukraine conflict is not a land-grabbing attempt by Russia to restore them as is being presented. It’s the consequence of the consistent violation of the same universal principles that shrined in the Russia-India treaty and the unwillingness of the dominant world centers to embrace democracy in international relations.

It’s not a coincidence that against this backdrop, the Indian position defending its legitimate national interests and Prime Minister of Sovereign Decisions gets criticized. Russia and India share a ramified network of platforms and groupings that help promote the prospective global agenda for the benefit of the broader international community.”

Delhi-Moscow ties, espeically with regard to the purchase of Russian oil, have drawn much attention since the armed military conflict with Ukraine broke out. (ANI)

ALSO READ-Fresh EU sanctions on Russia by Feb 24

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-Top News UAE News

OPEC+ recommends staying course on oil output policy

Oil prices may soften as OPEC+ cartel agrees to ease production cuts.

The JMMC comprises oil ministers from the OPEC+ countries. It has no decision-making power but provides policy recommendations for the OPEC+ ministerial meeting, the group’s decision-making body…reports Asian Lite News

Leading oil officials on Wednesday recommended to maintain the current oil output policy of OPEC+, the OPEC and its allies, amid an uncertain global economic outlook.

The OPEC+ agreed in October 2022 to cut production by 2 million barrels per day from the following month until the end of 2023. The cut equals to about 2 per cent of the annual global oil demand.

Members of the OPEC+ Joint Ministerial Monitoring Committee (JMMC) “reaffirmed their commitment” to the current output plan at a virtual meeting on Wednesday and “urged all participating countries to achieve full conformity and adhere to the compensation mechanism,” according to an OPEC statement.

The JMMC comprises oil ministers from the OPEC+ countries. It has no decision-making power but provides policy recommendations for the OPEC+ ministerial meeting, the group’s decision-making body. It has also the authority to request additional OPEC+ ministerial meetings “at any time to address market developments,” according to OPEC.

The JMMC has reviewed the oil production data for November and December last year and “noted the overall conformity” for the OPEC+ countries, OPEC added.

The next JMMC meeting is scheduled for April 3. The next OPEC+ ministerial meeting, where the group will formally decide its output policy, is set for June 4.

ALSO READ-Putin, MBS discuss cooperation ahead of OPEC+ meeting

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Hasina hopes to import oil from India by 2023

Bangladesh wants to import oil from India through the pipeline within 2023-Hasina.

Hasina also mentioned the connectivity routes which were closed during the 1965 war, saying the routes were now being opened in phases…reports Sumi Khan

Bangladesh Prime Minister Sheikh Hasina expressed hope to import oil from India by 2023 through a proposed pipeline project.

She made the remarks on Sunday during a meeting with Speaker of the Assam Legislative Assembly, Biswajit Daimary at her official Ganabhaban residence in Dhaka.

The Speaker led a four-member delegation which is part of a team of 32 MLAs from the northeast visiting Bangladesh.

The 130-km India-Bangladesh Friendship Pipeline (IBFPL) project aims to import oil products from the Siliguri Marketing Terminal in West Bengal.

Hasina also mentioned the connectivity routes which were closed during the 1965 war, saying the routes were now being opened in phases.

The Prime Minister also expressed gratitude to the contribution of the northeastern statesand West Bengal for sheltering the freedom fighters and refugees from Bangladesh in 1971.

Laying emphasis on regional cooperation, the premier said that Nepal, Bhutan, and India’s northeastern states can use the Chittagong air and sea ports, as well as Syedpur airports for mutual benefits.

On his part, Daimary called his trip to Bangladesh fruitful, adding that the people of Assam will be benefited from cooperation from the neighboring country.

He said said Assam wants Bangladeshi experts’ cooperation in the agriculture sector as the country has huge experience in this regard.

The delegation also stressed the need for strengthening people-to-people contact as well as trade and commerce in the region.

ALSO READ-India seeks early free trade deal with Bangladesh

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“We will not play by the rules others set”: Putin on oil price cap

Russian President Vladimir Putin speaks at the opening ceremony of the Army-2022 International Military-Technical Forum and the International Army Games 2022 in Moscow Region, Russia on Aug. 15, 2022. (Kremlin press release/IANS)

The cap by G7 would prevent Russian cargoes from selling oil that exceeds the still-undefined G7 limit….reports Asian Lite News

Russian President Vladimir Putin on Wednesday announced that Moscow would not sell oil at a lower price cap after the Group of Seven (G7) pledged to put a cap on the price of Russian oil sold across the world.

Speaking at the Russian Energy Week 2022 event at the Russia state-affiliated media – RT, Putin said, “I have to say that Russia will not act against our own benefit, we will not act to decrease our standing by providing oil or gas at lower prices. No, we will not succumb to this. We will not play by the rules others set and will not act to our detriment.”

Western countries are stepping up efforts to strip Russia of its largest source of income ‘oil’.

As the war in Ukraine nears its eighth month with no resolution in sight, the West suspects the Kremlin is bankrolling the invasion with its profits from the continued sale of fossil fuels, which make up over 40 per cent of its budget, reported Euronews.

The cap by G7 would prevent Russian cargoes from selling oil that exceeds the still-undefined G7 limit. As a result, Russia would be deprived of a significant portion of the oil revenues that it would otherwise earn without the cap.

According to Russia’s central bank, crude oil exports accounted for Euro113 billion in 2021, on top of the Euro70 billion earned from refined products, such as gasoline and diesel, reported Euronews.

Recently, Saudi Arabia and Russia, acting as leaders of the OPEC Plus energy cartel, agreed to their first large production cut in more than two years in a bid to raise prices, countering efforts by the United States and Europe to choke off the enormous revenue that Moscow reaps from the sale of crude. President Biden and European leaders have urged more oil production to ease gasoline prices and punish Moscow for its aggression in Ukraine. Putin has been accused of using energy as a weapon against countries opposing its invasion of Ukraine, and the optics of the decision could not be missed, reported The New York Times.

The White House was not happy. “The president is disappointed by the shortsighted decision by OPEC Plus to cut production quotas while the global economy is dealing with the continued negative impact of Putin’s invasion of Ukraine,” Brian Deese, the director of the National Economic Council, and Jake Sullivan, the national security adviser, said in a statement. The cut of two million barrels a day represents about 2 percent of global oil production.

By reducing output, OPEC Plus was also seeking to make a statement to energy markets about the group’s cohesion during the Ukraine war and its willingness to act quickly to defend prices, analysts say.

Out of all sanctions imposed by the bloc, this gradual ban on Russian oil is arguably the most radical decision owing to its potentially disruptive impact on the economies of both Russia and Europe. It was also subject to fraught negotiations between EU countries, reported euronews.

The West now plans to go beyond national embargoes.

An international price cap “will help deliver a major blow for Russian finances and will both hinder Russia’s ability to fight its unprovoked war in Ukraine and hasten the deterioration of the Russian economy,” said US Treasury Secretary Janet Yellen.

But analysts warn the G7 initiative is untested and ridden with risks and unknowns, many of which escape Western control. A botched implementation, they say, could reverberate on a global scale. (ANI)

ALSO READ: Zelensky bats for more sanctions against Russia

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China increases Russian energy imports

Chinese President Xi Jinping (L) shakes hands with his Russian counterpart Vladimir Putin ahead of their talks in Moscow, Russia, June 5, 2019. (Xinhua/Li Xueren/IANS)

While many European countries are trying to wean themselves off Russian gas, China is importing an increasing amount of energy from its neighbour.

Data from Beijing’s Customs Office on Saturday showed that Russia is China’s largest supplier of oil for the third month in a row, reports dpa news agency.

In July, China imported a total of 7.15 million tonnes of Russian oil, up 7.6 per cent year-on-year.

At the same time, China’s coal imports from Russia rose to the highest level in more than five years with 7.42 million tonnes in July — around 14 per cent more than in the same month last year.

While the European Union has been trying to reduce its dependency on Russian energy supplies in light of the country’s invasion of Ukraine, which started nearly six months ago, China has been taking advantage of discounted commodity prices from Moscow to increase imports.

Beijing has so far not condemned Russia’s war in Ukraine.

ALSO READ: US top commander calls for action against China

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Business India News

Time to revisit windfall tax on oil

The decline in global prices may force a rethink of this tax if not now but in the subsequent reviews, said CLSA…reports Asian Lite News

The fall in the crude oil prices as well as the refining margin for diesel, petrol and aviation turbine fuel, raises the question whether the Indian government should continue with its windfall tax, said CLSA Ltd in a report.

The last two weeks have seen a massive crash in the refining spreads of diesel, gasoline and aviation fuel coinciding with a cool-off in crude prices from their respective peaks seen in June, the report said.

Given this situation, CLSA wondered whether there is a need for the continuation of the windfall tax imposed about two weeks back.

Post windfall tax, the realised spread on diesel and gasoline has fallen to near loss-making levels while the realisation on aviation fuel and crude have also gone below 15-year averages, CLSA said.

The CLSA expects the government to relook at the windfall tax in its fortnightly reviews.

Any relaxation would be a big trigger for ONGC and Oil India and a relief for Reliance Industries, the report added.

Early this month, the Indian government announced the levy of additional excise duty/cess of Rs 6/litre on petrol and Rs 13/litre on diesel exports.

The government also announced the levy of additional excise duty/cess of Rs 23,250/tonne on crude oil as special additional excise duty, since domestic crude producers sell to domestic refineries at international parity prices, and as a result, are making windfall gains.

Similarly in the case of aviation turbine fuel (ATF) exports, a special additional excise duty of Rs 6/litre was announced.

While crude prices have increased sharply in recent months, the prices of diesel and petrol have shown a sharper increase, the government had said.

The government also said the tax will be reviewed every 15 days.

The decline in global prices may force a rethink of this tax if not now but in the subsequent reviews, CLSA said.

“If this tax remains for long, we fear it may hamper the positioning of this government as an export and manufacturing friendly regime,” the report noted.

ALSO READ: Global PC shipments fall 12.6%

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Oil prices are yet to peak: UAE energy minister

Suhail bin Mohammed Al Mazrouei, Minister of Energy

Oil prices are nowhere near their peak as an impending rise in Chinese demand threatens to strain a global market already pinched by tight supplies…reports Asian Lite News

UAE energy minister Suhail Al Mazrouei on Wednesday said that oil prices are nowhere near their peak as an impending rise in Chinese demand threatens to strain a global market already pinched by tight supplies, media reported.

The comments came from the minister days after the Organisation of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, agreed to significant oil output increases in July amid calls for the alliance to help contain the surging oil prices.

Efforts by OPEC+ oil producers to boost output are “not encouraging”, the UAE minister told an energy conference in Jordan, noting the group was currently 2.6 million barrels per day short of its target, the Khaleej Times reported.

“The risk is when China is back,” Al Mazrouei said in an apparent reference to Chinese demand. Prospects for demand growth in China, which is relaxing lockdowns, have been buoying crude prices recently.

Al Mazrouei warned that without more investment across the globe, OPEC+ can’t guarantee sufficient oil supplies as demand fully recovers from the coronavirus pandemic.

Prices can reach “unseen” levels if Russian oil and gas is completely taken off the market, he said.

Meanwhile, Goldman Sachs, the multinational investment and financial services firm, said in a report that fundamentals for crude oil weakened in April-May with modest declines in the Russian exports, record large sales by Strategic Petroleum Reserve and severe Chinese lockdowns bringing the oil market to its first surplus since June 2020.

The surplus, which the report termed as “politically created surplus”, is already ending, driven by the ongoing recovery in the Chinese demand.

“Chinese demand is recovering, yet we remain conservative on its further normalisation. The government’s push for achieving robust growth this year, therefore leaves risk to our downgraded Chinese demand expectation as skewed to the upside,” the report said.

Going forward, it downgrades China’s demand expectations by 0.2-0.4 million barrels per day in the second half of 2022-23.

ALSO READ:India, UAE to boost cooperation in industries, advanced tech

“Given our already cautious demand expectations for China at the beginning of this year, this reflects the view that rolling lockdowns will remain a headwind to mobility (in the country) this year.”

Meanwhile, Russian crude oil production is expected to fall by a 0.5 million barrel per day following the European ban, the report said.

“Oil’s structural deficit therefore remains unresolved, with in fact an even tighter oil market through April than we had expected. Supply remains inelastic to higher prices with core-OPEC (higher) and exempt countries (lower) production shifts broadly offsetting.”

On the demand side, the report said that the negative global growth impulse remains insufficient to rebalance inventories at the current prices.

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OPEC+ to boost oil production

The group on Thursday agreed to increase oil production by 648,000 barrels per day (bpd) in July, higher than its previous monthly increases of 432,000 bpd, reports Asian Lite Newsdesk

The Organisation of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, has agreed to significant oil output increases in July amid calls for the alliance to help contain the surging oil prices.

The group on Thursday agreed to increase oil production by 648,000 barrels per day (bpd) in July, higher than its previous monthly increases of 432,000 bpd, it was reported.

The 29th OPEC and non-OPEC Ministerial Meeting decided to advance the planned production adjustment for September and “redistribute equally” the 432,000 bpd output increases for July and August, according to an OPEC statement released after the meeting.


The statement, however, did not confirm the 648,000 bpd production hike in August.

The members agreed to extend the compensation period until the end of December 2022 as requested by some underperforming countries and request that underperforming countries submit their plans by 17 June 2022. Compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting. They reiterate the critical importance of adhering to full conformity and to the compensation mechanism.

The OPEC+ production plan for August, according to the group’s practice, will be announced at its next ministerial meeting, which is to convene on June 30.

According to the statement, Thursday’s meeting noted “the most recent reopening from lockdowns in major global economic centres” and the expected capacity increase of global refinery after seasonal maintenance. The participants also “highlighted the importance of stable and balanced markets for both crude oil and refined products”.

OPEC+ slashed oil production massively in 2020, when the Covid-19 pandemic impacted demand.

In July 2021, the group agreed to raise oil output by around 400,000 bpd each month to gradually unwind the output cuts.

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Before Thursday, the oil producer group had been sticking to its plan of gradual output increases, while ignoring repeated calls from major consumers, including the US, to open taps wider to rein in soaring oil prices.

Thursday’s decision came as crude prices remained high amid continued tight supplies, demand recovery and geopolitical tensions. Prices for both the West Texas Intermediate and Brent crude have hovered around $110 a barrel in recent weeks.

Earlier this week, the European Union decided to ban more than two-thirds of Russian oil imports, further heightening supply concerns.Xxx

Kuwait to increase to 2.77 mn bpd

 Kuwait has announced that its oil production will rise to nearly 2.77 million barrels per day (bpd) in July.

Kuwaiti Deputy Prime Minister and Oil Minister Mohammad Al-Fares made the announcement on Thursday after participating in the 29th Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC Ministerial Meeting held through video-conferencing.

Al-Fares said that Kuwait’s oil production will rise to nearly 2.77 million bpd in July, based on the decision of the OPEC and its allies, a group known as OPEC+, Xinhua news agency reported.

The Minister praised the decision of OPEC+ to raise the monthly production, saying that it would contribute to enhancing the security of supplies in the oil markets.

“This means that the OPEC+ countries will recover a large part of their production quotas in the coming months, close to the levels before the outbreak of the Covid-19 pandemic at the beginning of 2020,” he said.