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Crude futures rise on spot demand

January 20, 2021 00:00:00


NEW YORK, Jan 19: Crude oil futures on Tuesday rose on spot demands, reports Reuters.

US West Texas Intermediate (WTI) crude oil gained 0.40 per cent to $52.57 per barrel, while Brent crude traded 1.06 per cent higher at $55.33 per barrel in New York.

In India, crude oil prices increased by Rs 27 to Rs 3,840 per barrel on Tuesday as participants widened their positions on firm spot demand.

On the Multi Commodity Exchange, crude oil for January delivery traded higher by Rs 27, or 0.71 per cent, at Rs 3,840 per barrel in 1,409 lots. Analysts said raising of bets by participants kept crude oil prices higher in futures trade.

Meanwhile, Kazakh oil production remains some 130,000 barrels per day below average amid power outages caused by winter weather, a source familiar with the daily output data told Reuters on Tuesday.

Last week, Kazakhstan, a party to the agreement to cut oil production led by Russia and Saudi Arabia, reduced its oil output by nearly 200,000 bpd per day as poor winter weather caused power outages and led to transit disruptions at some routes.

As of January 17, oil output in Kazakhstan was restored to 1.62 million bpd but was still some 130,000 bpd less than the 1.75 million bpd pumped before the power outages, the source said, citing the energy ministry's data.

Production was still down at Kazakhstan's two main oil fields, Tengiz and Kashagan, said the first source and the second source, familiar with the output data at the two fields, confirmed.

Kashagan is due to undergo planned maintenance on January 15-27, the energy ministry has said. The ministry did not immediately reply to a Reuters request for a comment, the same as companies-operators of Tengiz and Kashagan.

According to the sources, production remained under pressure amid fresh power outages in Kazakhstan's west, where the two fields are located.

Kazakh power company KEGOC said in a statement last week that winter weather had triggered power outages in the country's western areas on January 15 but operations were fully restored on January 16.

Another report adds: The European Union (EU)'s proposed carbon border charge is essential to the survival of its own industries and the bloc will impose the levy on non-EU competitors unless they commit to lowering their emissions, the bloc's climate policy chief said.

The EU's executive Commission is expected to propose its carbon border adjustment policy before the end of June, 2021.


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