If US maintains its sanctions, Kim Jong Un warns North Korea could consider change of tactics

Agencies
January 2, 2019

Pyongyang, Jan 2: Nuclear-armed North Korea wants good relations with the US but could consider a change of approach if Washington maintains its sanctions, leader Kim Jong Un warned in his New Year speech Tuesday after 12 months of diplomatic rapprochement. At a summit with US President Donald Trump in Singapore in June the two signed a vaguely worded pledge on denuclearisation of the Korean peninsula. But progress has since stalled with Pyongyang and Washington arguing over what that means.

"If the US fails to carry out its promise to the world... and remains unchanged in its sanctions and pressure upon the DPRK," Kim said Tuesday, "we might be compelled to explore a new path for defending the sovereignty of our country and supreme interests of our state".

He was willing to meet Trump again at any time, he added, "to produce results welcomed by the international community".

The North is demanding sanctions relief -- it is subject to multiple measures over its banned nuclear weapons and ballistic missile programmes -- and has condemned US insistence on its nuclear disarmament as "gangster-like".

Washington is pushing to maintain the measures against the North until its "final, fully verified denuclearisation".

Kim's speech "expressed his frustration with the lack of progress in negotiations so far", said former South Korean vice unification minister Kim Hyung-seok.

The North Korean leader "obviously had certain expectations that the US would take certain steps -- however rudimentary they are -- after the North blew up a nuclear test site and took other steps. But none of them materialised.

"He is faced with this urgent task to improve his 'socialist economy' -- which is impossible to achieve without lifting of the sanctions."

In marked contrast with January 1, 2018, when he ordered mass production of nuclear warheads and ballistic missiles, Kim said the North had "declared that we would no longer produce, test, use or spread our nuclear arsenal", calling for the US to take "corresponding measures".

The production pledge was a "significant evolution in leadership intent, if true", Ankit Panda of the Federation of American Scientists said on Twitter, but credibility was an issue.

"All this might offer is a temporary cap on warhead production as long as talks are on with the US -- to be withdrawn when sanctions relief doesn't arrive," he added.

The line was not included in the first English-language summary of the speech by the North's official KCNA news agency.

Kim spoke sitting in a dark leather armchair, in a large office lined with packed bookshelves and paintings of his predecessors, father Kim Jong Il and grandfather Kim Il Sung.

As he began speaking -- in a deep, gravelly voice and wearing a dark suit and blue tie -- a clock behind him read at moments after 12.

But at times during the address it was blurred out and towards the end of the half-hour broadcast it was close to 1, suggesting the speech was recorded in several takes.

The leader's New Year speech is a key moment in the North Korean political calendar, reviewing the past and setting out goals for the future.

The 2018 address was a crucial catalyst for the developments that followed.

It came after a year of high tensions when the North made rapid progress with its weapons development, carrying out its sixth nuclear test -- by far its most powerful to date -- and launching rockets capable of reaching the entire US mainland.

The two leaders had traded personal insults -- Trump mocked Kim as "Little Rocket Man", who in turn called him a "mentally deranged US dotard" -- and threats of war as fears of conflict rose.

In last year's speech Kim warned "the nuclear button is on my office desk all the time", but also offered to send a team to the forthcoming Winter Olympics in the South.

That opened the way for the South's dovish President Moon Jae-in to play the role of peace broker.

Seoul and Washington are in a security alliance and the US stations 28,500 troops in the South to protect it against its neighbour.

A rapid sequence of developments followed, with athletes and a senior delegation led by Kim's powerful sister going to the Pyeongchang Games in February, before Kim met Chinese President Xi Jinping in Beijing ahead of the Singapore summit with Trump.

Kim also met Moon three times in 2018 -- twice at the border truce village of Panmunjom and once in the North's capital -- and at the weekend vowed to meet Moon "frequently" this year.

South Korea on Tuesday reacted positively to Kim's speech, which came after Seoul and Pyongyang have pursued several reconciliation initiatives in recent months.

These include projects to upgrade the North's outdated rail infrastructure and reconnect it with the South.

"We welcome Kim's reaffirmation... for complete denuclearisation and permanent peace of the Korean peninsula as well as the improvement in North-South ties," Seoul's unification ministry said in a statement.

Much of Kim's speech Tuesday focused on North Korea's moribund economy, saying that improving people's lives was his top priority and tackling energy shortages was an urgent task.

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Agencies
July 24,2020

Chengdu, Jul 24: China on Friday asked the US to close down its Consulate in Chengdu in retaliation to Washington's decision to shut the Chinese Consulate in Houston.

A statement by the Chinese Foreign Ministry said China has informed the US Embassy of its decision to withdraw its consent for the establishment and operation of the US Consulate General in Chengdu.

This was in response to "unilateral" decision by the US to shut the Houston Consulate. China's decision is legitimate and necessary response to the unreasonable actions of the US, it said.

The US on Wednesday ordered the closure of the Chinese consulate in Houston, a move it said was aimed "to protect American intellectual property and private information."

Reacting strongly to the US move, Chinese Foreign Ministry spokesman Wang Wenbin termed it as an "unprecedented escalation and warned retaliatory measures.

China on Thursday said that "malicious slander" is behind an order by the US government to close its consulate in Houston, Texas, and maintained that its officials have never operated outside ordinary diplomatic norms.

Wang said the order to close the consulate violates international law and basic norms governing international relations, and seriously undermines China-US relations.

This is breaking down the bridge of friendship between the Chinese and American people, Wang said.

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Agencies
June 7,2020

Moscow, Jun 7: OPEC, Russia and allies agreed on Saturday to extend record oil production cuts until the end of July, prolonging a deal that has helped crude prices double in the past two months by withdrawing almost 10% of global supplies from the market.

The group, known as OPEC+, also demanded countries such as Nigeria and Iraq, which exceeded production quotas in May and June, compensate with extra cuts in July to September.

OPEC+ had initially agreed in April that it would cut supply by 9.7 million barrels per day (bpd) during May-June to prop up prices that collapsed due to the coronavirus crisis. Those cuts were due to taper to 7.7 million bpd from July to December.

“Demand is returning as big oil-consuming economies emerge from pandemic lockdown. But we are not out of the woods yet and challenges ahead remain,” Saudi Energy Minister Prince Abdulaziz bin Salman told the video conference of OPEC+ ministers.

Benchmark Brent crude climbed to a three-month high on Friday above $42 a barrel, after diving below $20 in April. Prices still remain a third lower than at the end of 2019.

“Prices can be expected to be strong from Monday, keeping their $40 plus levels,” said Bjornar Tonhaugen from Rystad Energy.

Saudi Arabia, OPEC’s de facto leader, and Russia have to perform a balancing act of pushing up oil prices to meet their budget needs while not driving them much above $50 a barrel to avoid encouraging a resurgence of rival U.S. shale production.

It was not immediately clear whether Saudi Arabia, the United Arab Emirates and Kuwait would extend beyond June their additional, voluntary cuts of 1.18 million bpd, which are not part of the deal.

BULGING INVENTORIES

The April deal was agreed under pressure from U.S. President Donald Trump, who wants to avoid U.S. oil industry bankruptcies.

Trump, who previously threatened to pull U.S. troops out of Saudi Arabia if Riyadh did not act, spoke to the Russian and Saudi leaders before Saturday’s talks, saying he was happy with the price recovery.

While oil prices have partially recovered, they are still well below the costs of most U.S. shale producers. Shutdowns, layoffs and cost cutting continue across the United States.

“I applaud OPEC-plus for reaching an important agreement today which comes at a pivotal time as oil demand continues to recover and economies reopen around the world,” U.S. Energy Secretary Dan Brouillette wrote on Twitter after the extension.

As global lockdowns ease, oil demand is expected to exceed supply sometime in July but OPEC has yet to clear 1 billion barrels of excess oil inventories accumulated since March.

Rystad’s Tonhaugen said Saturday’s decisions would help OPEC reduce inventories at a rate of 3 million to 4 million bpd in July-August. “The quicker stocks fall, the higher prices will get,” he said.

Nigeria’s petroleum ministry said Abuja backed the idea of compensating for its excessive output in May and June.

Iraq, with one of the worst compliance rates in May, agreed to extra cuts although it was not clear how Baghdad would reach agreement with oil majors on curbing Iraqi output.

Iraq produced 520,000 bpd above its quota in May, while overproduction by Nigeria was 120,000 bpd, Angola’s was 130,000 bpd, Kazakhstan’s was 180,000 bpd and Russia’s was 100,000 bpd, OPEC+ data showed.

OPEC+’s joint ministerial monitoring committee, known as the JMMC, will meet monthly until December to review the market, compliance and recommend levels of cuts. JMMC’s next meeting is scheduled for June 18.

OPEC and OPEC+ will hold their next scheduled meetings on Nov. 30-Dec. 1.

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News Network
March 23,2020

Singapore, Mar 23: Oil prices fell at the open in Asia on Monday after a trillion-dollar Senate proposal to help the coronavirus-hit American economy was defeated and death tolls soared across Europe and the US.

US benchmark West Texas Intermediate initially tumbled more than three percent but then pulled back some ground to trade 1.5 percent lower, at $22 a barrel.

Brent crude, the international benchmark, fell 4.9 percent to $25 a barrel.

Prices have fallen to multi-year lows in recent weeks as lockdowns and travel restrictions to fight the virus hit demand, and top producers Saudi Arabia and Russia engage in a price war.

The latest drop came after a trillion-dollar Senate proposal to rescue the US economy was defeated after receiving zero support from Democrats, and with five Republicans absent from the chamber because of virus-related quarantines.

The bill had proposed funding for American families, thousands of shuttered or suffering businesses and the nation's critically under-equipped hospitals.

Coronavirus deaths soared across Europe and the United States at the weekend despite heightened restrictions.

The death toll from the virus -- which has upended lives and closed businesses and schools across the planet -- surged to more than 14,300 Sunday, according to an AFP tally.

AxiCorp chief markets strategist Stephen Innes said that "total demand devastation" had set it.

"Oil markets collapsed out of the gate this morning as prices react... to stringent containment lockdown measures," he said.

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