Oil poised for gains as Opec+ decision proves price positive for markets | The National
Oil prices are poised for future gains, following the unexpected decision by Opec+ to turn on the taps and add two million barrels per day back to the market.
The group, headed by Saudi Arabia and Russia, will add 350,000 bpd next month, with a similar volume to be added in June. Opec+ will supply 450,000 bpd in July.
Saudi Arabia, the largest exporter within the group, will unwind its extraordinary commitment to supporting prices. The kingdom will boost output by 250,000 bpd in May, 350,000 bpd in June and will add 400,000 bpd in July.
The expected increase in supply caused prices to surge more than 3 per cent following the decision on Thursday. The gradual increases in output signalled higher demand and economic recovery proving price positive for the markets. The oil markets are closed today due to Good Friday.
Brent, the international marker settled 3.38 per cent higher at $64.86 per barrel on Thursday. West Texas Intermediate, the US gauge, closed 3.87 per cent higher at $61.45 per barrel.
Friday, 2 April 2021
World Bank Sees MENA Debt Rising At Fastest Pace in 21st Century - Bloomberg
World Bank Sees MENA Debt Rising At Fastest Pace in 21st Century - Bloomberg
Public debt levels in the Middle East and North Africa are expected to rise to 54% of economic output by the end of this year from 46% in 2019, the fastest accumulation this century, the World Bank said on Friday.
Countries in the region were hit hard by the coronavirus pandemic last year and like the rest of the world, lockdown measures introduced to combat the spread of the virus left many of its economies in distress, the World Bank said in its first economic update of 2021. Despite global efforts to roll out vaccines, the economic situation remains volatile, it said.
The region is expected to see an uptick in its gross domestic product levels this year, after record economic contractions in several countries in 2020, the report said.
“But that recovery is unlikely to be strong enough to get the MENA region’s output back to pre-pandemic levels,” Ferid Belhaj, vice president for the Middle East and North Africa, wrote in the report, “the substantial borrowing that MENA governments had to incur to finance essential health and social protection measures boosted government debt dramatically.”
Public debt levels in the Middle East and North Africa are expected to rise to 54% of economic output by the end of this year from 46% in 2019, the fastest accumulation this century, the World Bank said on Friday.
Countries in the region were hit hard by the coronavirus pandemic last year and like the rest of the world, lockdown measures introduced to combat the spread of the virus left many of its economies in distress, the World Bank said in its first economic update of 2021. Despite global efforts to roll out vaccines, the economic situation remains volatile, it said.
The region is expected to see an uptick in its gross domestic product levels this year, after record economic contractions in several countries in 2020, the report said.
“But that recovery is unlikely to be strong enough to get the MENA region’s output back to pre-pandemic levels,” Ferid Belhaj, vice president for the Middle East and North Africa, wrote in the report, “the substantial borrowing that MENA governments had to incur to finance essential health and social protection measures boosted government debt dramatically.”
Fears over fate of free services ahead of #Saudi privatisation push - @RiyadhBureau ht @ahmed
Fears over fate of free services ahead of Saudi privatisation push - Riyadh Bureau
One thing that marked the rise of Dubai from a small port to a major commerce and tourism hub has been the utter obsession with breaking records: the tallest tower, the biggest mall, the largest fountain, the longest 22-karat handmade gold chain and the largest dish of mango sticky rice.
People may think that getting into the Guinness Book of World Records is a major feat that requires ingenuity and innovation to come up with something that has not been done before, but actually that’s not the case. All you need to do is pay Guinness a consulting fee and its marketing department would work with you to plan a record-breaking event.
As Saudi Arabia began following Dubai’s model for economic diversification, officials in the kingdom appear to have caught the unfortunate Guinness bug from our neighbours in the UAE. Turki al-Alsheikh, the head of the General Entertainment Authority, boasted last December that the GEA has received four certificates from Guinness and that three more are on the way.
The entertainment industry is still a nascent sector in Saudi Arabia, so seeking such records to draw more attention to it is somewhat understandable and can arguably be seen as part of the “fun and games” culture that GEA is trying to promote. But I was nonplussed that far more serious government entities are also getting in on this game.
One thing that marked the rise of Dubai from a small port to a major commerce and tourism hub has been the utter obsession with breaking records: the tallest tower, the biggest mall, the largest fountain, the longest 22-karat handmade gold chain and the largest dish of mango sticky rice.
People may think that getting into the Guinness Book of World Records is a major feat that requires ingenuity and innovation to come up with something that has not been done before, but actually that’s not the case. All you need to do is pay Guinness a consulting fee and its marketing department would work with you to plan a record-breaking event.
As Saudi Arabia began following Dubai’s model for economic diversification, officials in the kingdom appear to have caught the unfortunate Guinness bug from our neighbours in the UAE. Turki al-Alsheikh, the head of the General Entertainment Authority, boasted last December that the GEA has received four certificates from Guinness and that three more are on the way.
The entertainment industry is still a nascent sector in Saudi Arabia, so seeking such records to draw more attention to it is somewhat understandable and can arguably be seen as part of the “fun and games” culture that GEA is trying to promote. But I was nonplussed that far more serious government entities are also getting in on this game.
OPEC+ Shows Confidence in Economic Recovery With Oil-Supply Hike - Bloomberg video
OPEC+ Shows Confidence in Economic Recovery With Oil-Supply Hike - Bloomberg
OPEC+ expressed growing confidence in the global economic recovery by agreeing to increase oil production gradually in the coming months.
Before Thursday’s meeting, the cartel had been widely expected to maintain its cautious stance by rolling over the current supply cuts, just as it did last month. Yet Saudi Arabia and its allies showed they are more convinced now that fuel demand is on a firmer footing after a yearlong beating from the coronavirus.
As countries like the U.S. rapidly expand their vaccination programs, there are growing signals that the oil market is healing. Last week, American refiners processed the most crude since the pandemic started as they prepared for a surge in driving and flying.
Although European oil consumption is weak as France, Germany and Italy extend or impose new lockdowns, demand indicators from China remain strong. The global seven-day average of commercial flights taking off each day hit on a post-pandemic high of 77,708 on Wednesday, according to data from Flightradar24.
“Even in those sectors that were badly hit such as airline travel, there are signs of meaningful improvement,” Saudi Energy Minister Prince Abdulaziz bin Salman said at the opening session of the OPEC+ videoconference.
Before Thursday’s meeting, the cartel had been widely expected to maintain its cautious stance by rolling over the current supply cuts, just as it did last month. Yet Saudi Arabia and its allies showed they are more convinced now that fuel demand is on a firmer footing after a yearlong beating from the coronavirus.
As countries like the U.S. rapidly expand their vaccination programs, there are growing signals that the oil market is healing. Last week, American refiners processed the most crude since the pandemic started as they prepared for a surge in driving and flying.
Although European oil consumption is weak as France, Germany and Italy extend or impose new lockdowns, demand indicators from China remain strong. The global seven-day average of commercial flights taking off each day hit on a post-pandemic high of 77,708 on Wednesday, according to data from Flightradar24.
“Even in those sectors that were badly hit such as airline travel, there are signs of meaningful improvement,” Saudi Energy Minister Prince Abdulaziz bin Salman said at the opening session of the OPEC+ videoconference.
Analysis: Power play: India wields oil 'weapon' to cut dependence on #Saudi | Reuters
Analysis: Power play: India wields oil 'weapon' to cut dependence on Saudi | Reuters
When India’s government last month asked refiners to speed up diversification and reduce dependence on the Middle East - days after OPEC+ said it would maintain production cuts - it sent a message about its clout and foreshadowed changes to the world’s energy maps.
It was a move that had been in the works for years, fuelled by repeated comments from Indian Oil Minister Dharmendra Pradhan, who in 2015 called oil purchases a “weapon” for his country.
When the Organisation of Oil Exporting Countries and Major Producers (OPEC+) extended the production cuts into April, India unsheathed that weapon. Indian refiners plan to cut imports from the Kingdom by about a quarter in May, sources told Reuters, dropping them to 10.8 million barrels from monthly average of 14.7-14.8 million barrels.
Oil secretary Tarun Kapoor, the top bureaucrat in the ministry, told Reuters that India is asking state refiners to jointly negotiate with oil producers to get better deals, but declined to comment on plans to cut Saudi imports.
“India is a big market so sellers have to be mindful of our country’s demand as well to keep the long-term relationship intact,” he said.
When India’s government last month asked refiners to speed up diversification and reduce dependence on the Middle East - days after OPEC+ said it would maintain production cuts - it sent a message about its clout and foreshadowed changes to the world’s energy maps.
It was a move that had been in the works for years, fuelled by repeated comments from Indian Oil Minister Dharmendra Pradhan, who in 2015 called oil purchases a “weapon” for his country.
When the Organisation of Oil Exporting Countries and Major Producers (OPEC+) extended the production cuts into April, India unsheathed that weapon. Indian refiners plan to cut imports from the Kingdom by about a quarter in May, sources told Reuters, dropping them to 10.8 million barrels from monthly average of 14.7-14.8 million barrels.
Oil secretary Tarun Kapoor, the top bureaucrat in the ministry, told Reuters that India is asking state refiners to jointly negotiate with oil producers to get better deals, but declined to comment on plans to cut Saudi imports.
“India is a big market so sellers have to be mindful of our country’s demand as well to keep the long-term relationship intact,” he said.