Crude oil price rise: Markets speculate low supply

Crude oil price rise on Tuesday came across with speculation that the future supply may be hit gradually, especially in the United States. At Record price, Brent crude oil went up by 20 cents at $51.86 a barrel by 0930 GMT. U.S. light crude was 15 cents higher at $47.52.

Market analyst, Fawad Razaqzada at futures brokerage Forex.com said that the US crude oil stocks have been falling consistently in recent weeks.

“If the downtrend in oil inventories is maintained, then a bullish case can be made for oil, especially given the ongoing supply restrictions from OPEC and Russia,” Razaqzada added

A 13% fall has been recorded in the US commercial crude inventories from their March figures, to 466.5 million barrels.

In addition, Organization of the Petroleum Exporting Countries and non-OPEC producers including Russia have pledged to hold back around 1.8 million bpd of output between January this year and March 2018 in order to tighten supplies which would eventually lead to rising prices.

Whereas on the contrary, oil production elsewhere has been rising, blunting the impact of output cuts by OPEC and its allies.

With a record crude production in US breaking 9.5 million barrels per day (bpd), its highest since July 2015. Some analysts say that output growth may slow down as energy corporations cut a number of rigs drilling for oil. However, the rise in production has been relentless with increasing volumes from shale, significantly from the enormous Permian basin in Texas and New Mexico.

“With U.S. shale oil production proving more than resilient, the autumn period presents a lot of downside risk to oil prices,” Harry Tchilinguirian, chief oil market strategist at French bank BNP Paribas, told Reuters Global Oil Forum.

To see if the recent downward trend in US stocks continues; the weekly data on US inventories have to be tracked which starts later on Tuesday. According to a Reuters poll, U.S. crude inventories are expected to fall for the eighth week in a row and drop by 3.4 million barrels

Hans van Cleef, senior energy economist at ABN AMRO Bank NV in Amsterdam said, Another decline in US crude stocks may lead to somewhat higher prices again, though the upside may be limited – especially if U.S. crude production ticks higher again.

 

SOURCES: NEW YORK TIMES, REUTERS

IMAGE SOURCE: YAHOO

Drugs worth nearly £515 million seized by Royal Navy warships

Upon completion of a five-month operation against drug-trafficking, Britain’s Royal Navy sailors have seized narcotics worth $515 million in the Gulf region and the Indian Ocean, the Ministry of Defence announced on Sunday.

Xinhua news agency reported that since April, British, French, the United States, and Australian warships have been involved in a Combined Task Force in Operation Southern Surge to counter-narcotics trafficking. HMS Monmouth, the Royal Navy warship, was involved in eight drugs operations, successfully seizing 1.75 tonnes of narcotics.

“The multinational coalition is focused on deterring and denying maritime terrorist activity in the region, which includes some of the world’s most vital trade routes such as the Suez Canal and Bab Al Mandeb Strait,” said a spokesperson.

According to Britain’s Defence Secretary Sir Michael Fallon, the money made from these criminal activities is used to fund terrorism. “As we leave the European Union, we will continue to work alongside our allies to tackle smuggling in the region and maintain the free flow of shipping”, he promised.

From the Combined Maritime Forces, which is a coalition of 31 nations, navies take turns in leading the task force; either from a command ship or from the headquarters in Bahrain. The Franco-British team has been directing operations since April after taking over from the Canadian Navy and has now passed on command to the Pakistan Navy.

Sources –  The TribuneThe Hindu

Rajnath Singh emphasizes on a peaceful solution to the Doklam conflict

Home Minister Rajnath Singh promised that “very soon”, there will be a peaceful solution to the Doklam conflict. He also said that India needs peace rather than any sort of confrontation.  

 
“I’m confident that China, on its part, will make a positive move and a resolution (to the dispute) will be found”, said Singh speaking at an event organized by the Indo-Tibetan Border Police. He emphasized the importance of positive relations with neighboring countries and added that “in life, one can change friends, but one can’t change neighbors”. 

 At the same time, he asserted that the” Indian soldiers cannot be cowed” and appreciated the spirit of Indian soldiers under extremely harsh conditions. “I went to Ladakh once and had never experienced such harsh cold in life. I was told ITBP jawans would meet me in the morning I thought they will be cold and tired but the spirit I saw in them… No one would dare raise eyes towards India. We have such brave soldiers. When I see these jawans, I feel that there is no power in the world which can attack India,” said Rajnath. 

Singh spoke in reference to the India China conflict which started on 16th June after Chinese troops violated the border and made their way into Doklam.

Sources: Times of India, NDTV

Gorakhpur Incident repeats itself again in B R Ambedkar Hospital Raipur

Not many days have passed since the Gorakhpur tragedy, a same infamous incident repeated itself in Raipur. On August 21, Sunday between 12.30 am to 1.30 am at night, three children died in B R Ambedkar Government Hospital due to the low level of oxygen supply pressure. It is one of the biggest government hospitals and patients come there from different places within the state for treatment. Among the victims there was a five-day old baby, who had a whole in his heart, as told by the boy’s father, a resident of Balaghat to The Indian Express.

R Prasanna, Director of Health Services said that there was a problem in oxygen supply, but the CMO and Superintendent immediately took action and the issue was sorted. As reported by the Hindustan Times, he also claimed that the children died because of various illnesses. However, the hospital authorities have suspended the operator in-charge of oxygen supply after he was found in a blitzed condition, while on duty. Chhattisgarh Chief Minister Raman Singh expressed his condolences and had promised thorough investigation. After hearing the news Raipur North MLA Shrichand Sundarani visited the hospital. Both the Secretary of Health and the Director of Health Services are overseeing the situation.

Earlier this month a same incident of lack of oxygen supply killed over seventy children in Baba Raghav Das Medical College in Gorakhpur, Uttar Pradesh. After the incident, the State Government led by Yogi Adityanath, had probed into the matter and promised strict punishment for the guilty.

 

Sources: Financial Express, Hindustan Times 

China’s brings placidity in the next video

In a sudden change of tone from last week’s video, Chinese news agency Xinhua News has attempted a subtle description of the Doklam standoff involving India, Bhutan, and China as part of a series named ‘Talk India’.

In a one-minute-35-second video, a smartly dressed anchor proclaims that the Doklam issue shows a lack of “strategic trust” on the Indian side. An emphasis is then made on the symbiotic aspect of the Indo-Chinese relationship through their rich cultural histories, and how they both need to nurture a more “solid trust” between them. This reference is concluded by a blatant suggestion, “India must immediately and unconditionally withdraw all troops from Chinese territory”.

The concerned video is the second such product by the same news agency after it produced one titled ‘Seven Sins’ last week. In the latter, it was claimed that India broke the law by trespassing into China’s ‘undisputed territory’. It features a man with a turban and a fake beard – an apparent attempt at parodying a Sikh – speaking the way Indians are perceived to speak English.

This narrative runs contradictory to both India’s and Bhutan’s side of the story, according to which, China’s People’s Liberation Army violated the border and crossed into Bhutanese territory on the tri-junction of the three countries in the Sikkim sector.

The Chinese media has vigorously protested the Indian resistance on the border, wherein some 125 articles on the ‘Indian trespass’ have been written in August alone. These videos are merely latest among these protests.

Sources – Hindustan Times, Times of India 

Nigerian president Muhammadu Buhari promises to step up against Boko Hara

During his first address to the nation, Nigerian President Muhammadu Buhari said that his government will direct all its efforts towards eliminating Boko Haram.

“Terrorists and criminals must be fought and destroyed relentlessly so that the majority of us can live in peace and safety,” said Buhari in a televised speech. In addition to Boko Haram, he also assured of targeting ” political mischief makers” and whoever is a threat to the unity and integrity of the nation. 

He believes that the Nigerians are lively and robust people as far as discussions are concerned. However, he stated that some of the social media comments have crossed their limits and asserted that people must know their boundaries. 

Prior to his address, he spent around three months for his medical treatment. However, he did not specify the ailment that caused him to leave Nigeria and move to Britain for the treatment. He was very excited to be back on Nigerian soil and be a part of Nigerian politics. Vice President Yemi Osinbajo was the acting president during his absence.

Sources – The Hindu, The Indian Express 

Nine injured in Acid Accident in Pune factory

Nine workers were injured after an accident took place at Shubham Metals manufacturing unit in Katraj on Saturday, August 19. While an acid container was being moved from a tempo to factory, it fell down majorly burning three workers.

The injured have been recognized as Kumar Kavi (19), Ajay Kamble (19), Kumar Shivprasad (21), Sunita Nagre (35), Anil Gautam (39), Mathura Rathod (40), Meena Soni (40), Baydabai Khadse (50) and Suman Mohite (57).

Bharti Vidyapeeth Police has booked a case against the owner of the Utensil manufacturing unit, Sudhir Raghunath Barot, for negligence and inefficiency of taking safety measures. A case under areas 285 (Negligent direct as for flame or ignitable issue), 337 (Causing hurt by act imperiling life or individual security of others) of the Indian Penal Code have been filed. Though he has not been arrested as of yet.

The Indian Express quoted Investigating officer Dattatray Madne saying, “The unit uses acid to clean manufactured metal utensils. On Saturday, some of the workers were moving containers of acid, when one of the boxes fell on the ground and broke.”

Police is enquiring if the unit had permissions and license to use acid in the premises. The chemical has been sent to laboratory for test.

Source: Indian Express