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RIYADH: Oil prices rose on Tuesday after the Organization of Petroleum Exporting Countries and its allies, known as OPEC+, planned to cut more production the earlier day, jolting the markets as investors switched their attention toward the changing demand situation and the resulting impact of higher prices on the global economy.
Brent crude futures were up 22 cents, or 0.26 percent, to $85.15 a barrel by 12.30 p.m. Saudi time. US West Texas Intermediate crude futures were trading at $80.78 a barrel, up 36 cents, or 0.45 percent.
Both benchmarks jumped more than 6 percent on Monday after OPEC+ rocked markets with Sunday’s announcement of plans to lower output targets by a further 1.16 million barrels per day.
India cuts windfall tax on crude oil to zero, diesel halved
India cut its windfall tax on crude oil to zero from 3,500 rupees ($42.56) a ton and halved the tax on diesel to 0.5 rupees per liter, a government notification said on Tuesday.
India in July imposed a windfall tax on crude oil producers and on gasoline, diesel and aviation fuel exports to encourage private refiners to sell fuel products domestically instead of shipping them overseas to take advantage of robust refining margins in global markets.
The government adjusts the tax rates twice a month according to global crude oil price movements.
The windfall tax on exports of aviation turbine fuel and petrol, which had been zero, was left unchanged, the notification said.
The government intends to withdraw the windfall tax once global crude oil prices fall firmly below $70 a barrel, a top government official told Reuters last year.
Bid to pause ConocoPhillips’ Alaska Willow project fails
A federal judge on Monday rejected a bid by environmentalists to temporarily suspend the US government’s approval of ConocoPhillips’ multibillion-dollar oil drilling project in Alaska’s Arctic.
US District Judge Sharon Gleason in Anchorage had been asked by environmental groups and a Native American community in two lawsuits filed last month for an order blocking construction on the $7 billion Willow project over concerns it would exacerbate climate change and damage pristine wildlife habitat.
Gleason said an injunction was inappropriate because the groups would not be irreparably harmed by the construction that ConocoPhillips has scheduled for this month, which includes building roads and a gravel mine.
The judge didn’t address whether the lawsuits appeared likely to succeed at later stages in the proceedings.
A ConocoPhillips spokesperson said the decision would allow the company to begin construction activities “immediately” and said the project would provide “meaningful opportunities” for the state, its Native American communities and domestic US energy production.
Bridget Psarianos, an attorney challenging the approval, called the planned construction schedule “aggressive” and said the judge’s decision is “heartbreaking.”
(With input from Reuters)