UAE economy minister expects oil to start recovering by mid-year

Updated 27 January 2015
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UAE economy minister expects oil to start recovering by mid-year

ABU DHABI: Oil prices are expected to start recovering by the middle of this year, along with improvement in major economies, UAE Economy Minister Sultan bin Saeed Al-Mansouri said.
“My expectation is that by the middle of this year we should see some turn in oil prices and an expected positive turn in the economies of Europe, the US and China,” he told reporters on the sidelines of a financial conference.
Al-Mansouri, speaking with Brent crude at about $48 per barrel, did not elaborate on why he expected a recovery in oil prices.
Other Gulf officials have indicated they are cautiously optimistic about oil turning up in that timeframe.
Asked if he stood by UAE officials’ previous forecasts of 4.5 percent gross domestic product growth for 2014, Al-Mansouri said: “We review on a quarterly basis and by March we have to review that on the basis of oil prices...
“Also we have to see what’s happening in the nonoil sector. If we have growth that matches the drop in oil prices, we can say yes, it will stay at 4.5 percent. If not, we have to review that.”
Industry sources, meanwhile, said Emirates General Petroleum Corp. (Emarat) has increased its 2015 spot and term volumes of jet fuel from last year because of an increase in demand from Dubai International Airport.
Passenger traffic at the airport, one of the world’s busiest, rose 5.9 percent in the first 11 months of 2014, according to latest statistics from the airport’s operator.
Demand from the airport could rise further as lower oil prices could encourage airlines to slash fuel surcharges on ticket prices, traders said.
In its latest tender, Emarat bought 60,000 tons of jet fuel for delivery into Jebel Ali in February from Aramco Trading Company at a premium of $3.40 a barrel to Middle East quotes, on a delivered basis, they said.
Emarat usually buys 40,000 tons of jet fuel every month, but its requirements for February increased due to rising demand from Dubai International Airport, one of the sources close to the matter said.
Its term volumes for this year have also risen, the source added.
The company has term contracts with Aramco Trading Company (ATC), Kuwait Petroleum Company (KPC) and Abu Dhabi National Oil Company (ADNOC) to buy 460,000 tons of jet fuel this year.
While the increase in overall term volumes was not immediately clear, Emarat contracted to buy 160,000 tons of jet fuel for 2015, about a third higher than last year, from ATC, Saudi Aramco’s trading arm, the source said.
This is the second year that Aramco has supplied jet fuel to Emarat, following recent capacity additions in Saudi Arabia.
Emarat stopped imports of gasoline after it handed over its retail stations to ADNOC from Jan. 1 this year, the source added.
Previously it imported about 1.2 million tons a year of gasoline through spot and term contracts and 60,000 tons of gasoil through a term agreement with ADNOC.
Its gasoil imports were halted this year after its main client switched to natural gas for power generation, the source said.
The company is now focusing on imports of jet fuel primarily and smaller volumes of liquefied petroleum gas and lubricants, he said.


Scottish government wins fracking case against energy giant Ineos

Updated 19 June 2018
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Scottish government wins fracking case against energy giant Ineos

  • The devolved government said a moratorium on fracking was in place
  • neos had argued that the ban was imposed unlawfully

EDINBURGH: Scotland’s highest court has ruled in favor of a government ban on fracking which had been challenged by energy giant Ineos, the Scottish government said on Tuesday.
“This decision vindicates the extensive process of research and consultation which the Scottish government has undertaken since 2015,” Scottish business minister Paul Wheelhouse said in a statement. “Our preferred position is not to support unconventional oil and gas extraction in Scotland (fracking), and that position remains unchanged.”
The devolved government said a moratorium on fracking — gas extraction via hydraulic fracturing of the ground — was in place. That meant no local authority could grant planning permission until an impact assessment process had been carried out.
Ineos had argued that the ban was imposed unlawfully, and that it contradicted evidence that shale gas could be produced safely by unconventional methods.
Scotland decided to outlaw fracking in October after a public consultation found overwhelming opposition to it.