State-owned Indian Oil Corp (IOC) has signed its first annual deal to buy usa oil, paying about $1.5 billion for 60,000 barrels a day in the year to March 2020 Reuters reported yesterday quoting the company's chairman.
Oil rose for a fifth day on Monday, on track for its strongest first quarter in eight years, thanks to a growing belief among investors that OPEC's supply cuts will prevent a build-up in unused fuel, though concern over China's economy tempered gains.
For both benchmarks, these were their highest levels since November 20, 2018.
Brent crude slipped 64 cents to $65.86 a barrel by 1435 GMT, having reached a 2019 high of $66.83 on Monday.
The supply curbs led by the Organization of the Petroleum Exporting Countries have helped crude oil prices to rise more than 20 percent this year.
Traders said financial markets, including crude futures, were also generally supported by hopes that the United States and China would soon resolve their trade disputes, which have dragged on global economic growth.
India has emerged as Venezuela's biggest crude buyer in February after USA imposed sanctions on Latin American nation's oil giant PDVSA, NDTV news channel reported.
Renewed trade concerns keep weighing on crude oil. "China trade talks", said Harry Tchilinguirian, global head of commodity markets strategy at BNP Paribas.
Prices have been bolstered by a tightening market because of supply cuts organized by the Organization of the Petroleum Exporting Countries (OPEC) and some non-affiliated producers like Russian Federation. Venezuela has sent its oil minister, Manuel Quevedo, to India to convince refiners to double their oil purchases.
At least partly offsetting supply falls has been a surge in USA crude oil production by more than 2 million bpd in 2018, to a record 11.9 million bpd.
To overcome this, International Olympic Committee previous year floated a tender to buy three shiploads of the USA crude instead of the usual practice of one cargo, an official said, adding that now the board has authorised it to buy crude oil on a term basis.