How will the new tax rates impact the oil and gas sector?
How will the new tax rates worked out by the GST Council last week impact the petroleum sector? The oil and gas industry will be left with stranded taxes, higher blockage of working capital and dual compliance under the GST regime effective July 1, tax experts say. “Upstream and downstream companies will be left with stranded taxes leading to higher blockage of working capital, on which they will suffer opportunity loss,” K Ravichandran, Senior Vice President at rating agency ICRA said. India will roll out GST that includes most goods and services but excludes crude oil, natural gas, petrol, diesel and jet fuel. Other oil products such as kerosene, liquefied petroleum gas and naphtha are included in the GST. This means oil companies will have to comply with both the old and the new tax regimes. But the tax credit can’t be transferred between the two systems. Input tax credit allows an oil producer at time of paying the tax on the final output to deduct the tax already paid on inputs (purchase of machinery, crude oil etc). As most of the core petroleum products have not been included in the GST ambit, the tax credit which could have been availed cannot be availed under the new tax regime effective from July 1. “Procurement of goods and services for the upstream and downstream sector will be under GST whereas the majority output will be outside the ambit of GST. This would mean that the majority of GST paid on goods and services by these companies would be a cost to them. This would substantially increase their costing,” said Abhishek Jain, Partner, Indirect Taxes at E&Y. Ravichandran also said the biggest issue will be complying with both GST and existing tax framework as five products are kept outside GST. This will lead to higher compliance-related efforts by companies. The oil ministry had recently submitted its concerns to a Parliamentary panel on the issue including additional stranding of taxes on inter-state purchase of goods, non-availability of credit on local purchase of goods, additional burden due to levy of GST on stock transfer and dual compliance. “The GST Law would not apply on five petroleum products including Crude Oil, Natural Gas, High Speed Diesel, Motor Sprit, and ATF. Consequently, the main products of the E&P Sector, Crude Oil & Natural Gas, shall continue to be leviable to existing levies. However, purchase of goods and services required for exploration and production of Crude Oil and Natural Gas, would attract GST. Hence, it would have adverse implication on E&P Sector,” The ministry submitted to the Parliamentary Standing Committee on Petroleum and Natural gas. State-run ONGC produces Value Added Products such as LPG, Kerosene, Naphtha, ATF and HSD in addition to crude oil and gas. Crude Oil, Natural Gas, HSD and ATF would continue to attract taxes under existing law — Excise Duty, VAT/CST, OID Cess, NCCD, and Royalty — whereas LPG, SKO and Naphtha would be under GST. This would create a complex situation for dual compliance of GST as well as existing laws in addition to increase in compliance cost. The GST council has finalized a four-tier GST rate structure of 5 percent,12 percent, 18 percent and 28 percent with lower rates for essential items and highest for luxury and de-merit goods, many of which would also attract an additional cess. The centre last Thursday released the list of goods which would fall under each tax rate category. According to the document, Kerosene, Liquefied Propane, Liquefied Butane and Liquefied Petroleum Gases (LPG) for supply to consumers will be taxed under the 5 percent bracket. Also, coal gas, water gas, producer gas and similar gases, other than petroleum gases and other gaseous hydrocarbons will also be taxed under the lower tax bracket. “Currently excise duty is nil on PDS Kerosene and LPG-domestic as they are subsidised products. VAT varies from nil to 5% in different States. Hence there will be marginal increase in consumer prices in certain States,” Ravichandran said. Prashant Modi, Chief Executive Officer and Managing Director of Great Eastern Energy Corporation, India’s first coal bed methane producer, hailed the tax structure given under GST and called for inclusion of natural gas under the GST regime. “This is a very positive move for the energy sector. Also, natural gas being a clean and environment-friendly hydrocarbon should be brought under the GST at 5% at the earliest in order to enhance domestic production and consumption. This will also help in achieving reduction in the import of LNG.” Modi said. Under the new system, products that will be taxed under the higher rate of 18 percent include petroleum oil and oil obtained from bituminous minerals, Superior kerosene Oil, Fuel oil, Base oil, textile oil, lubricating oil, waste oil, petroleum gas and other gaseous hydrocarbons such as propane, butane, ethylene, propylene, butylene and butadiene. Greg Lloyd Authentic Jersey
Continuing gas price cuts to deter fresh exploration capex
The ongoing rupee surge coupled with continuing price reductions of gas will push fuel cost down by around 5 per cent, which in turn will lower the gross margins of upstream oil and gas players and deter fresh investment into the sector, says a report. For the fifth consecutive time since implementation of the domestic gas pricing formula in November 2014, the government in March lowered domestic gas prices by 0.8 per cent to USD 2.48 per million British thermal units (mmbtu). The price will be in force from April 1 to September 30, 2017. This came even as the average Henry Hub gas prices rose 12 per cent y-o-y to USD 2.52/mmbtu during the same period. “The latest lowering of domestic gas prices, coupled with the 4 per cent rise of the rupee against the greenback in the second half of FY17, will lower the gross margins for upstream players, especially for ONGC and Oil India which contribute around 80 per cent of the domestic production, while their operating cost is around USD 2.5/mmbtu,” India Ratings said in a note. The price ceiling for gas produced from discoveries in deep-water, ultra-deep water and high pressure-high temperature areas for the period April-September 2017 is USD 5.56/mmbtu on gross calorific value basis, while the domestic prices has been lowered to USD2.48/mmbtu on gross calorific value basis for this period. The report further cautioned that “any reduction in the realisation from this level will adversely impact their gross margins and will act as a deterrent for fresh investments towards gas exploration and related capex”. However, it will marginally benefit the midstream entities like Gail India, which will see its trading revenue fall by Rs 2.50 billion from domestic sales during in 1H of FY18. But since Gail sells its domestic gases on a cost-plus basis, its gross margins will be protected. The report also warned that petroleum crack spreads and GRMs will drop in FY18 in the absence of inventory gains, while crack spreads will have a downward bias. The products crack spread, which is the difference between wholesale petroleum product prices and crude prices, is estimated to remain under pressure in FY18, on the back of the fragile global demand growth amid net capacity additions as Chinese and the US export volumes are likely to remain high helping maintain utilisation levels. The agency expects the rally in crude prices to fade and price to remain in a narrow range in FY18. George Hill Jersey
GAIL India quarterly profit unexpectedly plunges on investment loss
GAIL India, the nation’s largest natural gas distributor, said profit in the fourth quarter plunged to a third from a year earlier, after the company incurred a one-time loss on an investment in a joint venture. Net income for the quarter ended in March stood at 2.60 billion rupees ($40 million), compared with 8.32 billion rupees a year earlier, the state-owned company said in a statement on Monday. Mumbai-based brokerage Kotak Institutional Equities had expected a profit of 11.18 billion rupees. GAIL said the latest quarter included a provision of 7.83 billion rupees towards a loss in the value of its stake in joint venture Ratnagiri Gas and Power. Sales from operations grew more than 16% to 136.44 billion rupees. Revenue from petrochemicals business jumped more than 57% to 17.66 billion rupees, aided by expansion in capacity of its plant in the northern Indian state of Uttar Pradesh. Natural gas sales grew 13% to 103.71 billion rupees, while gas transmission revenue expanded 14% to 11.74 billion rupees. GAIL has been grappling with unsold inventory of expensive long-term contracts of U.S. natural gas which it had bought in the early part of this decade when prices were higher. The U.S. natural gas exports are priced based on domestic prices, while global LNG sales are linked to the price of crude oil. GAIL had got into the agreement with U.S. suppliers when global oil prices hit $100 a barrel, while American gas prices slumped amid a boom in production from Shale fields. However, amid a global glut and a slump in prices, GAIL struggled to find customers for the expensive gas. In a news conference on Monday, Chairman B.C. Tripathi said the company will swap 1 million tons of imported LNG through time contracts in the next fiscal year, he said. According to a Reuters report in March, GAIL has signed its first time-swap deal with Swiss trader Gunvor to sell some of the U.S. LNG. India plans to more than double its liquefied natural gas import capacity to 50 million tons a year, as the nation seeks to reduce pollution and cut reliance on thermal fuels such as coal. India imports more than three-fourth of its crude oil requirements. Revenue from LPG and liquid hydrocarbons sales increased 30%. GAIL’s LPG business has benefited in the second half of the last fiscal year from higher prices and lower domestic gas prices. Garret Sparks Womens Jersey
Pradhan raises with OPEC issue of Asian premium charged on oil
Indian Petroleum Minister Dharmendra Pradhan on Monday raised the issue of premium being charged on oil supplied to Asian countries by some OPEC members and asked that a reasonable pricing policy be adopted by the 13-nation producers’ cartel. “Raised issue of Asian Premium still being charged from us by few OPEC countries; asked for ‘Responsible Price’ & ‘seller-buyer alignment’,” Pradhan said in a tweet following his meeting here with Organisation of the Petroleum Exporting Countries (OPEC) Secretary General (SG) Mohammad Sanusi Barkindo. “Had delegation level talks with SG & his technical team; Indian side had all 7 Refiners including IOCL, HPCL, BPCL, MRPL, Reliance, Essar, HMEL,” Pradhan said in another tweet. He will be representing India at the head of a delegation comprising major Indian refiners at a meeting scheduled by the OPEC here on Thursday. The agenda of the meeting, to be attended by both OPEC and non-OPEC producers, is to extend output cuts in view of the recent rise in US shale inventories. “SG, OPEC briefed about their efforts for price stabilisation of crude oil, including their cooperation with non-OPEC countries for this,” the Indian minister said in a separate tweet “Had exchange of views with Secretary General of OPEC as part of India-OPEC Institutional Dialogue in Vienna,” he added. Prior to Pradhan’s departure for here on Sunday, Petroleum Ministry officials in New Delhi said India’s strategy at the OPEC meeting would be to leverage its massive market size for better terms like discounts and longer credit period. The demand for crude oil in India is expected to grow by over 3 per cent in 2017 at around 4.5 million barrels per day (mbd). Last November, major oil producers agreed to cut output as a response to the global supply glut that had been pushing down prices for nearly two years. OPEC’s largest producer, Saudi Arabia said on Sunday that most members are agreeable on extending the output cut in the face of the global supply glut. “Everybody I talked to expressed support and enthusiasm to join in this direction (output cuts), but of course it doesn’t pre-empt any creative suggestions that may come about,” Saudi Arabian Energy Minister Khalid al-Falih told reporters in Riyadh. He said extending the supply cuts by a further nine months until next March, and adding one or two small producers to the pact, should reduce oil inventories to their five-year average “We believe that continuation with the same level of cuts, plus eventually adding one or two small producers, if they wish to join, will be more than adequate to bring the five-year balance to where they need to be by the end of the first quarter 2018,” Al-Falih said. Last week, Saudi Arabia and Russia agreed on the need to prolong the current agreement on cuts, which expires in June, until March 2018. In early December, oil producers outside OPEC, led by Russia, agreed to reduce output by 558,000 barrels per day (bpd). This came in the wake of the OPEC’s November 30 decision to cut output by 1.2 million bpd for six months effective from January 1. This is the first time since 2001 that OPEC and some of its rivals had reached a deal to jointly reduce output to tackle the global oil glut. Oil prices had earlier fallen by more than 50 per cent in less than two years, from levels of over $120 a barrel. As per available data, the Indian basket, comprising 73 per cent sour-grade Dubai and Oman crudes, and the balance in sweet-grade Brent, closed trade on Friday at $52.30 for a barrel of 159 litres, which was higher than the previous day’s close at $51.28. DeMarcus Ware Womens Jersey
Right-wing opposition parties plan to merge in Canada’s oil-rich Alberta
The Progressive Conservative and Wildrose parties in Canada’s oil-rich province of Alberta signed a tentative agreement on Thursday to merge, creating a unified right-wing opposition to the ruling New Democratic Party. The United Conservative Party could provide a serious challenge in the next provincial election, due in 2019, to Premier Rachel Notley’s left-leaning NDP, which was helped by divisions on the right when it swept to power in 2015. Alberta is home to Canada’s vast oil sands and is the largest exporter of crude to the United States. But it has been struggling with a three-year slump in global oil prices and a C$10.3 billion ($7.57 billion) deficit. The energy industry is likely to welcome unification of the right, with the new party eager to develop policies aimed at cutting costs for the oil and gas sector. Jason Kenney and Brian Jean, leaders of the PC and Wildrose parties, have both pledged to scrap unpopular environmental regulations, including carbon taxes and the phase-out of coal-fired power plants. “The first act of a United Conservative government will be the carbon tax repeal act, the first job will be restarting Alberta’s economy, restoring investor confidence, getting jobs back to our province,” Kenney told a news conference in the provincial capital, Edmonton, where he and Jean signed an agreement to start the merger process. Both parties will ask members to vote on the proposed merger in coming weeks. Once approved, the new party will hold a contest to elect a new leader, in which both Kenney and Jean have said they will take part. Some voters in the traditionally right-wing western province say NDP policies like higher corporate taxes and a cap on oil sands emissions have exacerbated the downturn by making Alberta less attractive to potential investors. In recent months, international oil majors have sold off billions in oil sands assets and Canada has not made any progress on building new crude export pipelines. A February poll by Mainstreet/Postmedia showed the Wildrose Party had 38 percent support among decided and leaning voters, while the PC party had 29 percent and the NDP 23 percent. “If the election was today, they (the NDP) would be sunk and defeating a unified conservative party would be very difficult,” said Duane Bratt, a political scientist at Mount Royal University in Calgary. “Some people are blaming the entire economic downturn on the NDP, even though it was occurring before they were elected.” The PC party ruled Alberta for 44 years until 2015, while the Wildrose Party was formed in 2008 because of dissatisfaction with the PCs. The two parties have a combined 30 seats in the Alberta legislature, versus 55 for the NDP. Any move to scrap the carbon tax would cause tensions with the federal Liberal government of Prime Minister Justin Trudeau, which says it will impose a tax on provinces that do not move independently to meet binding targets set by Ottawa to combat emissions. Robert Alford Jersey
Iran and India further talks on oil and gas cooperation, Farzad B Gas field
India and Iran carried forward talks on the contentious Farzad B Gas field row with a high-profile delegation from India, headed by Foreign Secretary S Jaishankar met with Iranian Minister of Petroleum Bijan Zangeneh in Tehran on Tuesday to further discussions on oil and gas cooperation. Iran is headed for its first round of presidential elections today and the current President Hassan Rouhani has been trying to attract investor interest in various sectors including oil and gas. The Iranian government has been working on a new framework called the Iran Petroleum Contract that would permit foreign investors to form joint ventures lasting up to 25 years. According to a report by Iran’s news agency SHANA, development of Iran’s Farzad B gas field by India’s ONGC Videsh Ltd (OVL) and its financing model were discussed in the meeting between the Indian and Iranian delegation. “Senior officials from the both countries are firmly determined to finalize talks on development of Farzad B Gas Field by OVL,” SHANA quoted Amir Hossein Zamani-nia, deputy petroleum minister in international affairs and trading, as saying after the meeting. The high level delegation discussed development of the Farzad B gas field in the meeting and it was decided that OVL officials will meet with National Iranian Oil Company (NIOC) managing director Ali Kardor and his assistant Gholamreza Manouchehri to resolve the various issues on the project. Other highlights of the meeting included working out methods for sending Iran’s natural gas to India. Farzad B gas field was discovered by OVL in the Farsi block about 10 years ago. The project has so far cost the OVL-led consortium, which also includes Oil India Ltd and Indian Oil Corp (IOC), over $80 million. Iran was initially unhappy with the $10 billion plan submitted by OVL for development of the 12.5 trillion cubic feet reserves in Farzad-B field and an accompanying plant to liquefy the gas for transportation in ships. The field in the Farsi block has an in-place gas reserve of 21.7 tcf, of which 12.5 tcf are recoverable. Eric Fehr Authentic Jersey
HPCL to set up Rs 6 billion bio-ethanol unit in Bathinda
Hindustan Petroleum Corporation Ltd. (HPCL) has roped in Engineers India Ltd (EIL), Department of Biotechnology (DBT) and International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) for setting up India’s first second generation (2G) ethanol bio-refinery in Bathinda at a cost of Rs 600 llion. The proposed capacity of the plant will be 100 kilolitres of ethanol per day and may use sugarcane, biomass and other agricultural residues like rice-straw, wheat stubble and maize residue for the production of ethanol. It will also help in reducing CO2 emissions from the paddy straw, which is currently burnt after harvesting. The bio-refinery will also produce about 32,000 tonne of bio-fertiliser per annum which can be used as a soil nutrient. Apart from this, the plant will also yield bio-CNG, which can be used as fuel for cooking and vehicles. The unit is likely to use around 400 tonne of agriculture residue per day or 128000 ton of biomass as fuel to produce around 100 KL ethanol per day. “Since this is the first-of-its-kind project in India, we are taking utmost care to turn it into a reality. We have entrusted EIL for detailed feasibility report. They will submit the report within two months. We have also signed an MoU with DBT-ICT (Institute of Chemical Technology) for supply of technology,” a senior official said. “ICRISAT will conduct a viability study on various sources of ethanol in the state. We are exploring additional sources of ethanol besides sugarcane so as to cut our dependence on one particular source. ICRISAT will explore various sources such as biomass, rice straw, wheat stubble, maize residue and their availability plus viability for producing the ethanol,” he said. In order to reduce dependency on import of crude oil, Ethanol-Blending Programme (EBP) was announced by the Government of India on September 4, 2002. Initially, the mandate was for blending of 5% ethanol in Petrol, which was revised up to 10% on January 2, 2013. Ethanol is produced in India mainly from molasses and foodgrains, but out of total ethanol produced from molasses, only one-third is available for EBP and the rest is consumed by liquor and chemical industries. According to government data, only 3.2% ethanol blending could be achieved during 2015-16. The government is encouraging production of second generation (2G) ethanol from agricultural residues to provide additional source of income to farmers and address the growing environmental concerns and support the EBP programme. Josh Shaw Womens Jersey
ONMy Eco Energy to set up a network of franchise fuel bunks for biofuel Indizel
My Eco Energy plans to set up a network of franchisee operated fuel dispensing stations for its non-petroleum based fuel Indizel, which the company states can be safely used in diesel vehicles. The Indizel is made from renewable vegetable oils at a refinery in Singapore from inputs from Indonesia and Malaysia. This will be sold through a network of franchisee stations, Santosh Verma, Co-Founder of My Eco Energy, a Mumbai-based company, said. Addressing a press conference, Verma said, “Indizel is made from biodegradable products. It is not only a better alternative to conventional diesel but economical and suitable for vehicles as it offers better fuel efficiency, smoother ride and will be about Rs. 2 cheaper than the conventional diesel sold in fuel bunks.” The company, which has thus far invested about Rs. 500 million in the venture, has come up with innovative models for fuel dispensing stations, which includes traders, supermarkets, hotels and malls among others. The company fuel station models are multi-funtional and can be set up in their existing business premises or at a standalone facilities. It has different models for Urban, Semi-Urban and Highways for dispensing stations, he said. The fuel made of vegetable oils has low sulphur content of about 10 ppm (parts per million) as against higher ppm in conventional petroleum based fuels. “As we expand out network into some select States in the country and the volumes go up, we will look at potential of processing the fuel locally,” he said. Indizel meets European EN 590 Euro 6 and BIS (IS 1460) Bharat Stage VI fuel quality norms collating with World Wide Fuel Charter requirements, Verma said. Dallas Goedert Authentic Jersey
India’s Second-Biggest Gas Retailer Plans Buyouts for Expansion
The sole city gas distributor in India’s capital city is looking to buy out its partners in two joint ventures as it seeks to expand beyond New Delhi and its suburbs. Indraprastha Gas Ltd., which owns 50 percent in Central UP Gas Ltd. and Maharashtra Natural Gas Ltd., plans to wholly own both the joint ventures, Managing Director E.S. Ranganathan said in an interview. Indraprastha Gas plans to buy out its partners in the joint ventures — state-run GAIL India Ltd. and Bharat Petroleum Corp. — to drive the company’s expansion in western and central India. GAIL and BPCL officials weren’t immediately able to comment. “Our strategy consultant has suggested this as a first step, which will be presented to the board next week,” he said. “If these come through, then the expansion in western India can be through MNGL, central India by CUGL and northern India will be done by IGL,” he said. The acquisitions will help the country’s second-biggest gas distributor tap into a widening market as Prime Minister Narendra Modi’s administration seeks to increase the share of the cleaner fuel to 15 percent by 2020 from 6.5 percent. The company is aiming to add a record 300,000 new piped gas customers in the year ending March as India pushes more urban households to use natural gas and help free up liquefied petroleum gas for rural users. Indraprastha Gas expects the acquisitions to boost sales volumes by 2.5 million cubic meters a day, against the 4.5 million it sells now in Delhi and its adjoining suburbs. The company aims to complete one of the acquisitions this year, Ranganathan said. It will fund the purchases with cash generated from existing operations. Indraprastha Gas has about 8 billion rupees ($123 million) in spare cash. “We have enough cash right now and we may not need to borrow,” he said. Noel Acciari Womens Jersey
Petrobras turnaround could yield first dividend in years in 2017
Brazil’s state-controlled oil company Petrobras will pay its first shareholder dividend in three years if the company turns a profit in 2017, Chief Executive Officer Pedro Parente said on Wednesday. Parente took the helm of the world’s most indebted energy company a year ago and said he is ahead of schedule with an aggressive restructuring plan to cut its $95 billion debt, reduce costs and sell assets. Petroleo Brasileiro SA, or Petrobras, made a record operating profit in the first quarter and if that continues throughout the year, chances are good that the firm will pay a dividend, Parente told Reuters in an interview in New York. “We really are keen to start paying dividends as fast as we can,” he said. “If at the end of the year I have a profit, we would be more than happy to start paying dividends.” Petrobras’ bylaws say that shareholders are entitled to dividends if the company turns a profit, pending approval from the board and considering factors such as cash requirements and investment opportunities. Company executives have in the past said Petrobras is not obliged to pay dividends on its profits. Rising output in Brazil’s prodigious offshore fields is helping Parente turn Petrobras around from its nadir in 2014, when the firm last paid dividends. Then, investors lost confidence as Petrobras sank into a political and financial maelstrom with the oil price fall reducing its revenues, a corruption scandal swamping the company and losses mounting due to government fuel subsidies. Ratings firms downgraded Petrobras’ creditworthiness, landing the firm with a huge interest bill to service its debt, which then stood at around $130 billion, accumulated to finance development of massive reserves in Brazil’s deep Atlantic waters. Parente says he was hopeful about hitting his key metric to reduce leverage by the end of this year – a full year ahead of schedule. “It is likely we will reach that target … before 2018. I hope, but I don’t know.” he said. He is targeting reducing Petrobras’ debt to 2.5 times its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from 5.1 times EBITDA at the end of 2015. At the end of the first quarter the ratio stood at 3.24. Even if he hits that target, Parente has no plans to stop reducing debt or to let up on asset sales. “We’re not going to stop our plan… This is not yet a healthy leverage level for Petrobras,” he said. A more appropriate level that would put Petrobras in line with global oil majors would be around 1.5 EBITDA, he said. He has no plans, for now, to make that a new target. Investors have rewarded Parente for the turnaround. The firm achieved an interest rate of below 5 percent this week on a five-year bond for the first time since the crisis, Parente said. At the worst point, the rate was around 13 percent. Parente said he would consider serving as chief executive beyond the end of next year if the government that is elected in 2018 wants him to continue in the post. A full cycle of management at the company would be four years, he said. AUCTIONS Petrobras has yet to decide whether it will participate in three government auctions this year for oilfields, he said. If it does, it will be go for deepwater fields, as operating there is Petrobras’ strength, he added. The company will not adjust its five-year capital expenditure plan of $75 billion through 2021 to finance the development of new fields, Parente said, adding that the firm would fund any expansion through cost reductions. Petrobras will not bid for onshore or shallow water oilfields, he said, and is committed to selling its participation in onshore and shallow water fields as part of a $21 billion divestment plan, he said. He declined to say how much cash he hoped to raise with field sales. Rising Brazilian output, both from Petrobras and from international oil firms operating there, has contributed to a strong rise in output from non-OPEC producers this year that is making it hard for the Organization of the Petroleum Exporting Countries to curb global supply and end a two-year glut. Petrobras’ crude exports rose to 725,000 barrels per day in the first quarter, up 72 percent on the year. The rise came in part because of higher output, but also because a recession in Brazil has hit domestic oil demand. Output stood at 2.182 million bpd, up from 1.980 million bpd from the year earlier. Parente declined to estimate exports for the full year, but said his target was to ensure the country was a net oil exporter and could keep expensive refined fuel imports to a minimum. Brazil had no plans to join OPEC and non-OPEC producers in curbing global supply, in part because the country’s laws would not permit it, he said. OPEC meets next week to decided whether to extend output cuts agreed in December, when it joined with top non-OPEC producers such as Russia to reduce global supply in an effort to boost oil prices. Jaquiski Tartt Authentic Jersey