Energy prices rebalancing after OPEC deal: Qatar

April 28, 2017

Istanbul, Apr 28: Global energy markets are heading to a rebalancing in the next few years after oil prices fell to historic lows due to oversupply, Qatar’s Energy and Industry Minister Mohammed Saleh Abdullah Al-Sada said on Thursday, praising members of the Organization of Petroleum Exporting Countries (OPEC) for their adherence to a “successful” November deal to cut production.

Energy

He told the Atlantic Council summit in Istanbul that a decade of high oil prices had led to a dangerous oversupply and subsequent price falls.

“The consequence was an unprecedented shrinkage in investment and if that trend continues, it will lead to new instability — a price spiral and a tightening of the market which is not in anyone’s interest,” he warned.

OPEC members agreed in November to cut production by 1.2 million barrels per day for six months beginning from the start of the year in a bid to shore up prices.

The move was also partly matched by non-OPEC producers led by Russia and the critical question is whether OPEC will take new action at its next meeting on May 25 or not.

“A balancing was bound to happen. What we want to do is to hasten that process of balancing,” said the minister.

He hailed the fact that compliance to the November agreement has been almost 98 percent including all participants, and had sometimes been over 100 percent among OPEC members, meaning they had exceeded the output cuts demanded.

Compliance has historically been a problem within OPEC and Al-Sada said that adherence to past agreements had been on average only 70 percent. “The agreement was very successful and it helped the process of rebalancing,” he said.

“It (the market) is picking up. We hope to get a more accelerated balancing process in the second half of the year.”

Al-Sada said the rebalancing was coming but would still take time.

“The market today is well supplied and will be for the next years. The upturn is definitely going to come and the market will balance, yes, not in the coming two years but in four or five.”

Oil prices currently hover just around $50 per barrel after shedding around half of their value since mid-2014.

Al-Sada denied that low oil prices were of benefit to anyone.

OPEC Secretary-General Mohammad Barkindo, meanwhile, said that a global oil overhang was declining, but he added that stocks remained high and needed to fall further. OPEC is discussing extending its cuts into the second half of the year, but the group has an uphill task.

Oil prices fell on Thursday after news that two key oilfields in Libya had restarted, pumping crude for export into an already bloated market.

Benchmark Brent crude fell $1.14 a barrel to a low of $50.68 before recovering slightly to trade around $50.85 by 1220 GMT. The contract has fallen more than 10 percent from this month’s peak.

US light crude oil hit a low of $48.51, down $1.11 a barrel on the day.

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Saudi Gazette
May 27,2020

Riyadh, May 27: Following the announcement of easing of lockdown measures, which includes reopening of all mosques for daily congressional as well as Friday prayers across the Kingdom except the holy city of Makkah, the Ministry of Islamic Affairs, Call and Guidance has set mandatory guidelines.

In a circular issued to mosque staff, Minister of Islamic Affairs, Call and Guidance Sheikh Abdullatif Al-Asheikh has instructed that all mosques must comply with the following precautionary measures and instructions:

1. Open mosques 15 minutes before the Adhan and close them 10 minutes after prayer

2. Reduce the waiting period between the Adhan and Iqamah to 10 minutes

3. Open windows and doors from entering time to the end of the prayer

4. Remove copies of Holy Qur’an and other books temporarily from mosques

5. Ensure attendees keep a distance of two meters between each other

6. Ensure one space is left between each row

7. Close all water coolers and refrigerators

8. Do not allow distribution of water or food in mosques

9. Close toilets and places of ablution

Precautionary measures on Friday prayers are as follows:

1. Open mosques 20 minutes before Friday prayer and closing them 20 minutes after prayer.

2. Friday sermon with prayer should not exceed 15 minutes.

The circular also stipulates to keep the suspension of the religious courses, programs and lectures, as well as the memorizing Holy Qur'an sessions in the mosques and to continue education and lectures remotely until further notice.

The circular pointed out that the imams of mosques should urge the worshipers to take the following precautionary measures:

1. Wear a face mask

2. Bring their own prayer rugs and not leave them after the prayer

3. Prevent accompanying children under 15 years of age from entering mosques

4. Perform ablution at home

5. Avoid crowding when entering or exiting mosques

Meanwhile, the spokesman of the Ministry of Interior clarified later in the day that people are allowed to perform congressional prayers in their locality during the time of curfew.

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Agencies
April 27,2020

Riyadh, Apr 27: A Saudi Arabia-led coalition said on Monday that all parties need to return to the status that existed before the Southern Transitional Council (STC) in Yemen declared an emergency in Aden, according to a statement published by Spa.

The Coalition to Restore Legitimacy in Yemen, led by Saudi Arabia and the UAE, stresses the need to restore conditions to their previous state following the announcement of a state of emergency by the Southern Transitional Council and the consequential development of affairs in the interim capital (Aden) and some Southern governorates in the Republic of Yemen.

The Coalition urges for an immediate end to any steps contrary to the Riyadh Agreement, and work rapidly toward its implementation, citing the wide support for the agreement by the international community and the United Nations.

The Coalition has and will continue to undertake practical and systematic steps to implement the Riyadh Agreement between the parties to unite Yemeni ranks, restore state institutions and combat the scourge of terrorism. The responsibility rests with the signatories to the Agreement to undertake national steps toward implementing its provisions, which were signed and agreed upon with a time matrix for implementation. The Coalition demands an end to any escalation and calls for return to the Agreement by the participating parties, stressing the immediate need for implementation without delay, and the need to prioritise the Yemeni peoples' interests above all else, as well as working to achieve the stated goals of restoring the state, ending the coup and combatting terrorist organizations.

The Coalition reaffirms its ongoing support to the legitimate Yemeni government, and its support for implementing the Riyadh Agreement, which entails forming a competent government that operate from the interim capital Aden to tackle economic and developmental challenges, in light of natural disasters such as floods, fears of the coronavirus (Covid-19) pandemic outbreak, and work to provide services to the brotherly people of Yemen.

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Agencies
June 20,2020

Riyadh, Jun 20: Saudi Arabia will end a nationwide curfew and lift restrictions on businesses from Sunday morning after three months of lockdown to curb the spread of coronavirus, state news agency SPA quoted a source in the interior ministry as saying on Saturday.

The curfew will be lifted as of 6 AM local time on Sunday. Restrictions will remain, however, for religious pilgrimages, international travel and social gatherings of more than 50 people.

The kingdom introduced stringent measures to curb the spread of the novel coronavirus in March, including 24-hour curfews on most towns and cities.

In May, it announced a three-phase plan to ease restrictions on movement and travel, culminating in the curfew completely ending on June 21.

The number of coronavirus infections has risen in recent weeks following a relaxation of movement and travel restrictions on May 28.

The kingdom has recorded 154,223 cases of COVID-19 and a total of 1,230 deaths, the highest in the six-nation Gulf Cooperation Council.

Saudi Arabia plans to limit numbers at the annual haj pilgrimage to prevent a further outbreak of coronavirus cases, sources familiar with the matter told Reuters earlier this month.

Some 2.5 million pilgrims visit the holiest sites of Islam in Mecca and Medina for the week-long haj, a once-in-a-lifetime duty for every able-bodied Muslim who can afford it. Saudi Arabia asked Muslims in March to put haj plans on hold and suspended the umrah pilgrimage until further notice.

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