OPEC set to prolong output cut after Saudi-Russia deal

Agencies
July 1, 2019

Vienna, Jul 1: OPEC and its allies are set this week to prolong oil output cuts to further boost prices, after the two biggest players Russia and Saudi Arabia agreed to do so.

Ministers from the 14-nation Organization of the Petroleum Exporting Countries (OPEC) meet in Vienna on Monday to discuss output, before gathering a day later for OPEC+, a group of 24 oil-producing countries that includes Russia.

Russian President Vladimir Putin and OPEC cartel kingpin Saudi Arabia agreed Saturday on the sidelines of the G20 in Osaka to extend their deal which aims to keep oil output low owing to abundant world supplies.

"We will extend this deal, Russia and Saudi Arabia. For how long? We will think about that. For six or nine months. It is possible that it could be up to nine months," Putin said.

OPEC and its oil-producer allies decided in December to trim daily crude output by 1.2 million barrels.

The reduction contributed to oil prices soaring by almost one-third in the first quarter of 2019, boosting precious revenues for OPEC and non-OPEC members alike.

The cartel meanwhile remains on red alert over escalating US-Iran tensions that have fuelled recent strong oil-price gains -- but it and other producers are unlikely to end output cutbacks just yet.

Saudi Arabia's influential energy minister Khalid al-Falih, arriving in Vienna early on Sunday, declared that he wanted the cutbacks which began in January to be extended by nine more months.

"We have to talk about it with the other ministers. My preference will be nine (months)", he told reporters. That would extend the deal to March 2020.

United Arab Emirates energy minister Suhail al-Mazrouei, upon arrival in the Austrian capital, voiced his support to an extension.

"We look forward to a positive meeting, my view is that an extension is needed given the current conditions of the market," he told reporters.

Quizzed about the so-called "pre-deal" unveiled in Osaka, Mazrouei replied: "Each country's voice counts and each country can veto a decision."

OPEC's meeting comes against a background of ample global crude supplies, according to both the cartel and International Energy Agency.

The Paris-based IEA watchdog has cut its forecast for 2019 oil demand-growth for a second straight month and has trimmed also its second-quarter forecast.

Saudi Arabia argues that oil supplies are sufficient, pointing to rising stockpiles despite significant output reduction in sanctions-hit Iran and Venezuela, both members of OPEC.

Falih admitted on Sunday that demand "is softening a little bit" but stressed that he expected demand and supply to strike a balance.

"It is still healthy. So it is likely that the market will balance in due course in six to nine months. So we are happy," he said.

Global oil prices began a sharp ascent in mid-May after the sabotage of several tankers off the Emirati coast.

They jumped further after Washington blamed Tehran for a second spate of such incidents close to the strategic Strait of Hormuz shipping lane in mid-June.

Oil prices rose even more after Iran shot down a US spy drone and President Donald Trump axed retaliatory strikes against Tehran at the last minute.

Worries over the demand backdrop persist -- particularly from the US-China trade war despite a truce agreed over the weekend.

"Geopolitical risk means the supply outlook is tightening, offsetting the moderate weakening in oil demand growth thus far this year," said oil specialist Ann-Louise Hittle at consultancy Wood Mackenzie.

"There is a downside risk for oil demand through the rest of the year if the ongoing trade war intensifies," she added.

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News Network
May 9,2020

New Delhi, May 9: The Trinamool Congress on Saturday responded to Union home minister Amit Shah’s charge that the Mamata Banerjee-led West Bengal government is not facilitating the movement of stranded migrant workers.

Amit Shah has written to West Bengal chief minister Mamata Banerjee, saying her government is doing “injustice” to migrant workers by not allowing the special Shramik trains to reach the state.

“Union home minister Amit Shah speaks after weeks of silence only to mislead people with lies,” the TMC’s Abhishek Banerjee was quoted as saying by news agency PTI.

“The Centre is lying… West Bengal is running 711 camps for migrants in the state. We are taking good care of them,” Abhishek Banerjee, who is also the chief minister’s nephew, said.

Amit Shah had pointed out in his letter that the Centre was not receiving the “expected support” from the state government in helping stranded migrant workers from West Bengal.

“West Bengal government is not allowing trains with migrants reaching the state. This is injustice with WB migrant labourers. This will create further hardship for them,” Amit Shah had said in his letter to Mamata Banerjee.

The issue of migrant workers is the latest flashpoint between the Centre and the West Bengal government amid a row over the state’s efforts to control the coronavirus disease (Covid-19).

The Centre and the state have exchanged allegations over the criteria for reporting deaths from the infection, and while While Bengal says the Centre is trying to politicise a public health crisis, the Union government maintains that state officials are ignoring repeated warnings to step up the fight against the disease.

Federal officials have said that the region has not conducted adequate tests and that there has been mismanagement over identifying hotspots and containing them.

Union home secretary Ajay Bhalla also slammed the state government for a very low rate of testing and high rate of mortality, 13.2%, by far the highest for any state.

The Centre has also accused the state government of not allowing cross-border movement of goods trucks to Bangladesh.

There are 1,678 Covid-19 cases and 160 deaths in West Bengal until Saturday morning.

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News Network
January 22,2020

Jan 22: Microsoft Corp’s chief executive officer said he worries that mistrust between the US and China will increase technology costs and hurt economic growth at a critical time.

Using the $470 billion semiconductor industry as an example of a sector that is already globally interconnected, Satya Nadella said the two countries will have to find ways to work together, rather than creating different supply chains for each country.

“All you are doing is increasing transaction costs for everybody if you completely separate,” Nadella said in an interview with Bloomberg News Editor-in-Chief John Micklethwait at Bloomberg’s The Year Ahead conference in Davos. That’s a concern as the executive said the world is on the cusp of a revolution around technology and artificial intelligence.

“If we take steps back in trust or increase transaction costs around technology, all we are doing is sacrificing global economic growth,” he said.

The agreement signed last week between the US and China was “not sufficient,” said Nadella, but represented “progress” on the issue of intellectual property protections for US technology companies working with China.

Nadella said he worries about the development of two separate internets, noting that to some degree they already exist “and they will get amplified in the future” with massive technology companies already in place in China.

The viewpoint clashes with Microsoft co-founder Bill Gates, who has been sceptical about the idea that ongoing US-China trade tensions could ever lead to a bifurcated system of two internets.

China and the US are the two leading AI superpowers, however the cooling political relations between them have slowed the international collaboration.

Nadella also warned that countries that fail to attract immigrants will lose out as the global tech industry continues to grow. The CEO has previously voiced concern about India’s Citizenship Amendment Act, calling it “sad.”

“However, Nadella said he remained hopeful.

“The fact that there is a 70-year history of nation-building, I think it’s a very strong foundation. I grew up in that country. I’m proud of that heritage. I’m influenced by that experience.”

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News Network
June 29,2020

Karachi, Jun 29: Four heavily-armed militants attacked the busy Pakistan Stock Exchange on Monday morning, killing four security guards and a police sub-inspector before being shot dead in an exchange of fire, media reports said.

The unidentified militants opened indiscriminate fire and lobbed hand grenades at the main gate of the building as they tried to storm it, Geo News reported.

Police said that all the terrorists have been killed while five persons injured in the attack.

Four security guards and a police sub-inspector were also killed in the attack.

"An unfortunate incident took place at the Pakistan Stock Exchange. They made their way from our parking area and opened fire on everyone," said Abid Ali Habib, Director of Pakistan Stock Exchange.

The firing by militants caused panic among the people in the building.

Sindh province Governor Imran Ismail condemned the incident.

"Strongly condemn the attack on PSX aimed at tarnishing our relentless war on terror. Have instructed the IG & security agencies to ensure that the perpetrators are caught alive & their handlers are accorded exemplary punishments. We shall protect Sindh at all costs," he said on Twitter.

Police and rangers have arrived on the spot and surrounded the area.

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