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.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 5,2020

Dubai, May 5: Saudi Arabian prosecutors have ordered the arrest of a Saudi citizen for insulting an Asian expatriate and abusing him for not embracing Islam.

A video went viral online showing the expat, apparently with little knowledge of the Arabic language, being insulated by an Arabic-speaking man who does not appear in the clip, for having not embraced Islam and for not fasting.

A monitoring centre affiliated with the public prosecution examined the video the content of which “shows the citizen’s use of abusive words against the Asian resident on the pretext of inviting him to Islam,” the prosecution source said.

“The public prosecution closely follows up whatever infringes rights of citizens and residents including harm to their dignity and legal rights regardless of pretexts of such infringement,” the source added.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
July 16,2020

Riyadh, Jul 16: Prince Abdul Aziz bin Saud bin Naif, minister of interior and chairman of the Hajj Supreme Committee, chaired a virtual meeting on Wednesday with the heads of  security agencies and officials in charge of this year’s Hajj season.

During the meeting, the minister and security officials discussed organizational issues related to Hajj, including preventive and precautionary steps related to fighting the coronavirus disease, procedures related to pilgrims commuting to the holy sites, and mechanisms to facilitate performing the Hajj rituals.

Prince Abdul Aziz confirmed abiding by the directives of King Salman and Crown Prince Mohammed bin Salman to take all precautions to preserve the safety of the pilgrims, and facilitate their performance of their Hajj rituals, according to the highest health standards to contain the new coronavirus pandemic.

Saudi Arabia has decided to allow only a limited number of domestic pilgrims to perform Hajj this year in the wake of the COVID-19 outbreak.

Only those expatriates between the ages of 20 and 50 who are not suffering from any chronic diseases can apply for the pilgrimage.

Earlier, the Ministry of Hajj and Umrah said that requests from people of 160 nationalities in the Kingdom have been screened electronically to select who will perform Hajj this year.

Of the pilgrims who will receive approval, 70 percent will be non-Saudis residing in the Kingdom and the remaining 30 percent will be Saudi citizens.

Meanwhile, the Ministry of Interior said that anyone found entering the sites of Hajj (Mina, Muzdalifah and Arafat) without a permit from July 18 till the end of Dhu Al-Hijjah 12 will be issued with a fine of SR10,000 ($2,600).

The fine will be doubled if the offence is repeated. Security personnel will be posted on roads leading to the holy sites to ensure that anyone who breaks the law will be stopped and fined.

Around 2.5 million foreign and domestic pilgrims performed Hajj last year.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
April 28,2020

Dubai, Apr 28: Riyadh municipality has announced 13 requirements to restore commercial activity in malls starting Wednesday (April 29), in accordance with the government’s coronavirus precautionary measures.

The requirements include: the continued closure of all entertainment and playing areas inside malls, and not allowing the entry of children under the age of 15.

The municipality requires all malls to ensure the availability of medical examination and sterilization teams to measure the temperature of all individuals entering the mall at all entrances throughout opening hours, prevent any person with a temperature exceeding 38 degrees Celsius from entering, remove all chairs and benches in the corridors, and provide masks and gloves for visitors at the entrances.

All malls are to have security personnel stationed at all entrances to ensure that visitors are wearing masks.

The municipality also requires all malls to sterilize the entire facility every 24 hours, allocate rooms for medical isolation when there is any suspicion of an individual being infected with COVID-19, ensure the presence of a sufficient number of security personnel, and carry out regular rounds to verify full compliance, and suspend the valet service.

It also called for malls to put up explanatory signs of the guidelines to ensure that everyone understands the precautionary measures.

Malls should rely on the use of escalators and stairs for movement between floors, and in the event they are not available, only two people are allowed to ride the elevator at a time.

Revised curfew

Saudi Arabia had revised on April 21 its coronavirus curfew timings for the holy month of Ramadan, allowing residents in all areas and cities not currently under a 24-horu lockdown to go out between 9 a.m. and 5 p.m.

However, areas under a complete lockdown will only be allowed to go out for essential needs, such as grocery shopping or medical visits, between the hours of 9 a.m. and 5 p.m. Residents in these areas must stay within their neighborhoods

A 24-hour lockdown was previously imposed on the cities of Riyadh, Tabuk, Dammam, Dhahran, and Hofuf and throughout the governorates of Jeddah, Taif, Qatif, and Khobar.

The government had imposed a full lockdown on the holy cities of Makkah and Madinah as well. Other cities and governorates had a curfew implemented from 3 p.m. to 6 a.m. daily.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.