Heavy rain floods Qatar roads

Dubai, Mar 9: The eyes of the world will be on the oil markets when the big trading hubs in Europe and North America open following the end of the deal between Saudi Arabia and Russia that has helped to sustain crude at relatively high levels for the past three years.

There were big falls on Friday when ministers from the Organization of the Petroleum Exporting Countries (OPEC) failed to get a deal with non-OPEC members — the so-called OPEC+ — to extend output agreements. Brent oil was down nearly 10 percent at $45.27 going into the western weekend.

Saudi Aramco took immediate action to cut prices after the OPEC+ collapse, offering big discounts for crude deliveries from next month, when the current output restrictions end.

According to a notification sent to customers by Saudi Aramco, seen by Arab News, the Kingdom’s oil giant will cut between $4 and $8 per barrel, with the biggest discounts being offered to buyers in northwest Europe and the US.

Roger Diwan, an oil analyst at consultancy IHS Market, said: “We are likely to see the lowest oil prices of the past 20 years in the next quarter.”

West Texas Intermediate, the US oil benchmark, fell to $28.27 in November 2001.

The move raises the possibility of a “crude war” between the three biggest oil blocs — the US, Russia and the Arabian Gulf. Some analysts believe the American shale industry is more vulnerable to low prices than either the Russians or the Saudis.

Robin Mills, head of the Qamar consultancy, told Arab News: “I don’t think this was premeditated but Saudi Arabia has clearly swung quickly into action to put the Russians under pressure. But the Russians, with low debt and a flexible exchange rate, can cope with a few months of low prices.”

The boom in US shale has made the country the biggest oil producer in the world, but with high financing costs. Lower global prices would put a lot of shale companies out of business.

On the other hand, American motorists, and President Donald Trump, would be pleased to see lower fuel prices in an election year.

In Moscow, one prominent financier with ties to the Kingdom played down the long-term significance of the Vienna fallout.

Kirill Dmitriev, chief executive of the Russian Direct Investment Fund, told Arab News: “Saudi Arabia is our strategic partner, and cooperation between our two countries will continue in all areas. We will also continue to work within the framework of the Russia-Saudi Economic Council.”

One Russian official, who asked not to be named, added: “There is a good relationship between Alexander Novak, Russian energy minister, and his Saudi counterpart Prince Abdul Aziz bin Salman, and I am sure they will continue talking to each other less formally.”

Riyadh, Mar 18: Private-sector businesses in Saudi Arabia on Wednesday were ordered to introduce enforced remote working for all employees for 15 days in an attempt to prevent the spread of the coronavirus.

Businesses that require staff to be physically present to ensure they continue to operate — including those in vital or sensitive sectors such as electricity, water and communications — must reduce the number of workers in their offices to the bare minimum. This can be no more than 40 percent of the total number of staff.

In such cases precautionary measures set by the Ministry of Health must be followed. At offices, and staff accommodation, with more than 50 workers, an area at the entrance must be provided where temperatures can be taken and symptoms checked.

Employers must also set up a mechanism for workers to report any symptoms, such as high temperature, coughing or shortness of breath, or contact they have had with infected individuals or people who recently returned from other countries without following proper Ministry of Health quarantine procedures.

Inside offices, a safe amount of space between employees must be maintained at all times. In addition, all health clubs and nurseries provided by employers must close.

Pregnant women and new mothers, people suffering from respiratory diseases, those with immune-system problems or chronic conditions, cancer patients and employees above the age of 55 are to be given 14 days compulsory paid leave, which will not be deducted from their annual entitlement.

Businesses that are excluded from the new measures include pharmacies and supermarkets, and their suppliers. Private-sector organizations that provide services to government agencies must contact them before suspending workplace attendance. Any other business that considers it impossible to operate with only 40 percent of staff in the workplace must submit an exemption request to the authority that supervises it.

Dubai, Mar 23: All inbound, outbound and transit passenger flights to and from the United Arab Emirates – home to one of the world’s busiest hubs – are to be suspended for two weeks.

The UAE’s National Emergency Crisis and Disasters Management Authority (NCEMA) and General Civil Aviation Authority (GCAA) has announced that passenger flights to, from and through the country will be suspended from 25 March for a period of two weeks, in order to “curb the spread of the Covid-19”.

Freight and emergency evacuation flights will still be permitted to operate.

The suspension affects major global hubs in Dubai and Abu Dhabi. Dubai-based Emirates has already announced that it will suspend most of its passenger flights from 25 March.

“Additional examination and isolation arrangements will be taken later should flights resume, in order to ensure the safety of passengers, air crews and airport personnel and their protection from infection risks,” state the NCEMA and the GCAA.

Dubai International Airport was the third-busiest airport in the world in 2018, handling 89 million passengers.