Oil Prices Rise as OPEC+ Plans Further Production Cuts

(MENAFN) Oil prices increased on Tuesday after OPEC+ announced on Monday that it plans to cut more production, causing a stir in the markets as investors shifted their focus to the changing demand situation and the resulting impact of higher prices on the global economy. brent crude futures rose by 0.26 percent to USD85.15 a barrel, while US West Texas Intermediate crude futures were trading at USD80.78 a barrel, up 0.45 percent. Both benchmarks had already jumped over 6 percent on Monday after OPEC+ announced its plans to lower output targets by a further 1.16 million barrels per day.

India Eliminates Windfall Tax on Crude Oil, Halves Tax on Diesel

India has abolished its windfall tax on crude oil and has halved the tax on diesel to 0.5 rupees per liter, according to a government notification on Tuesday. The windfall tax was introduced in July to encourage private refiners to sell fuel products domestically, rather than shipping them overseas to take advantage of robust refining margins in global markets. The Indian government adjusts tax rates twice a month based on global crude oil price movements. The windfall tax on exports of aviation turbine fuel and petrol, which had been zero, has been left unchanged. The government intends to withdraw the windfall tax once global crude oil prices fall firmly below USD70 a barrel, as stated by a top government official to Reuters last year.

Environmentalists' Bid to Temporarily Halt ConocoPhillips' Alaska Willow Project Fails

Environmentalists’ attempt to temporarily suspend the US government's approval of ConocoPhillips' multibillion-dollar oil drilling project in Alaska's Arctic, known as the Willow project, has been rejected by a federal judge. The request was made by environmental groups and a Native American community in two lawsuits filed last month over concerns that the project would exacerbate climate change and damage pristine wildlife habitat. US District Judge Sharon Gleason in Anchorage refused to grant an injunction because the groups would not be irreparably harmed by the construction that ConocoPhillips has scheduled for this month. This includes building roads and a gravel mine. However, the judge did not address whether the lawsuits appeared likely to succeed at later stages in the proceedings. ConocoPhillips welcomed the decision, stating that 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 was "heartbreaking."

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