US allows UN denounce Israeli settlements

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.

Washington, Jul 7: President Donald Trump on Tuesday formally started the withdrawal of the United States from the World Health Organization, making good on threats to deprive the UN body of its top funding source over its response to the coronavirus.

Public health advocates and Trump's political opponents voiced outrage at the departure from the Geneva-based body, which leads the global fight on maladies from polio to measles to mental health -- as well as Covid-19, at a time when cases have again been rising around the world.

After threatening to suspend the $400 million (Dh1.47 billion) in annual US contributions and then announcing a withdrawal, the Trump administration has formally sent a notice to UN Secretary-General Antonio Guterres, a State Department spokesperson said.

The withdrawal is effective in one year -- July 6, 2021 -- and Joe Biden, Trump's presumptive Democratic opponent, is virtually certain to stop it and stay in the WHO if he wins the November election.

A spokesman for Guterres and the global health body itself confirmed that the United States, a key founding WHO member, gave its notice.

In a speech earlier in the day, WHO chief Tedros Adhanom Ghebreyesus said of Covid-19, "National unity and global solidarity are more important than ever to defeat a common enemy."

In line with conditions set when the WHO was set up in 1948, the United States can leave within one year but must meet its remaining assessed financial obligations, the UN spokesman said.

'Total control'

In late May, Trump said that China exerted "total control" over the WHO and accused the UN body led by Tedros, an Ethiopian doctor and diplomat, of failing to implement reforms.

Blaming China for the coronavirus, Trump, a frequent critic of the UN, said the United States would redirect funding "to other worldwide and deserving, urgent, global public health needs."

Democratic lawmakers have accused Trump of seeking to deflect criticism from his handling of the pandemic in the United States, which has suffered by far the highest death toll of any nation despite the president's stated hope that the virus will disappear.

"To call Trump's response to Covid chaotic and incoherent doesn't do it justice," said Senator Robert Menendez, the top Democrat on the Foreign Relations Committee.

"This won't protect American lives or interests -- it leaves Americans sick and America alone," he wrote on Twitter.

Representative Ami Bera, himself a physician, said that the United States and World Health Organization had worked "hand in hand" to eradicate smallpox and nearly defeat polio.

"Our cases are increasing," Bera said of Covid-19. "If the WHO is to blame: why has the US been left behind while many countries from South Korea to New Zealand to Vietnam to Germany return to normal?"

Even some of Trump's Republican allies had voiced hope that he was exerting pressure rather than making a final decision to abandon the World Health Organization.

The investigative news outlet ProPublica reported last month that most of Trump's aides were blindsided by the WHO withdrawal announcement, which he made during an appearance about China. 

The Trump administration has said that the WHO ignored early signs of human-to-human transmission in China, including warnings from Taiwan -- which, due to Beijing's pressure, is not part of the UN body.

While many public health advocates share some criticism of the WHO, they question what other options the world body had other than to work with China, where Covid-19 was first detected late last year in the city of Wuhan.

The anti-poverty campaign ONE said the United States should work to reform, not abandon, the WHO.

"Withdrawing from the World Health Organization amidst an unprecedented global pandemic is an astounding action that puts the safety of all Americans the world at risk," it said.

Washington, Jul 9: The United States recorded 55,000 new coronavirus cases in 24 hours on Wednesday (Thursday in Malaysia), a tally by Johns Hopkins University showed, bringing its total to 3,046,351 recorded infections since the pandemic began.

The country, the hardest-hit in the world, had earlier on Wednesday passed the grim milestone of three million infections. The actual number is likely far higher due to issues over getting tested in March and April.

The US also added an additional 833 virus deaths, bringing the death toll to 132,195, the Baltimore-based institution showed at 8.30pm (0030 GMT Thursday).

US President Donald Trump regularly downplays the numbers, attributing them to an increase in testing capacity during the month of June.

Coronavirus cases are surging in several southern hotspots including Texas, Florida, Louisiana and Arizona, but the pandemic has almost entirely receded from its former epicentre in New York and the north-east.

Several states have been forced to suspend their reopening processes or even reverse course, with some ordering bars to close again.

On Wednesday morning, Trump called on schools throughout the country to reopen in the fall, lashing out at his own top health agency to ease health and safety requirements aimed at slowing the spread of the virus, such as social distancing.