Saudi Arabia to restrain oil exports in March, confident cuts will stabilize market

Saudi Energy Minister Khalid Al-Falih and Russian Energy Minister Alexander Novak attend a news conference at the Ritz-Carlton hotel in Riyadh, Saudi Arabia. (Reuters)
Updated 14 February 2018
0

Saudi Arabia to restrain oil exports in March, confident cuts will stabilize market

LONDON: Saudi Arabia will restrain its oil exports in March despite lower domestic need for crude as the Kingdom pushes to eliminate fully the global oil glut and combat worries about a new cycle of oil price weakness.
Saudi Arabia will keep its crude exports below 7 million barrels per day (bpd) in March, despite a maintenance shutdown of the 400,000 bpd SAMREF refinery, the Saudi energy ministry said, confirming a plan given earlier by industry sources.
“Saudi Arabia remains focused on working down excess oil inventories,” a ministry spokesman said in a statement.
“Market volatility is a common concern for producers and consumers, and the Kingdom is committed to mitigating this volatility and moderating its negative impacts by responsibly meeting its pledges” under an OPEC-led supply cut deal.
OPEC and outside producers including Russia are reducing output to get rid of a supply glut. The pact began a year ago and has been extended until the end of 2018.
The cut has boosted oil prices, which in January topped $71 a barrel for the first time since 2014. But crude has since slid and hit a 2018 low of $61.76 this week, pressured by rising US output and forecasts oversupply may persist.
Saudi Arabia’s Energy Minister Khalid Al-Falih sounded an upbeat note even after the price drop, saying on Wednesday he was sure cooperation between OPEC and its non-OPEC allies will continue to stabilize the market.
“I am confident that our high degree of cooperation and coordination will continue and bring the desired results,” Falih told an industry conference attended by Russian Energy Minister Alexander Novak and OPEC Secretary General Mohammad Barkindo.
“Market volatility is unfortunate but ultimately it is the fundamentals that I watch.”
Barkindo said oil demand would grow this year at healthy levels and data pointed to continued high compliance by producers in January with their pledges under the supply-cut deal.
OPEC has delivered more than 100 percent of the output cuts that members pledged under the deal, according to figures from OPEC and other analysts, helped in part by an involuntary drop in Venezuela, where output is falling amid an economic crisis.
The Saudi energy ministry also said production by state oil company Aramco in March will be 100,000 bpd below February’s level, suggesting Saudi Arabia will continue to pump less than its OPEC target.
Novak met with Saudi King Salman at his palace in Riyadh on Wednesday and the two discussed producers’ efforts to rebalance the market and decrease surplus inventories, SPA reported.
Novak had said on Tuesday oil inventories had been declining despite the rise in US production.  


UAE passenger jet makes long haul journey on locally produced biofuel

Updated 17 January 2019
0

UAE passenger jet makes long haul journey on locally produced biofuel

  • The biofuel was produced from plants grown in a local saltwater ecosystem in Abu Dhabi
  • It can be refined using existing infrastructure and used with current engines and airport fueling systems

DUBAI: Etihad Airways flew the first commercial flight powered by locally produced sustainable fuel Wednesday, Emirati airlines Etihad Airways reported on their website from an announcement by the Sustainable Bioenergy Research Consortium (SBRC).

The Boeing 787, flying from Abu Dhabi to Amsterdam, used biofuel produced from the oil of Salicornia plants, which are grown in the Seawater Energy and Agriculture System (SEAS), in Masdar City near the UAE capital - Abu Dhabi.

The SEAS project is the world’s first desert ecosystem made specially to produce fuel and food in saltwater.

While Etihad is not the first airline to use biofuel in its aircraft, it is the first time in the UAE for the source of the biofuel to be grown and produced in the country.

“Etihad’s flight proves SEAS is a game-changer that can substantially benefit air transport and the world,” said Vice President of strategy and market development for Boeing International Sean Schwinn.

“The research and technology being developed shows significant promise to transform coastal deserts into productive farmland supporting food security and cleaner skies.”

The biofuel can be produced using existing refinery facilities, it can be blended with regular jet fuel, and used with existing aircraft, engines and airport fueling delivery systems

Biofuels were introduced for commercial flight use in 2011.

Since then nearly 160,000 passengers have flown on flights powered by a blend of sustainable and traditional jet fuels.

The water used for the SEAS project is drawn from fish and shrimp farmeries that produce food for the UAE.

The system is expected to expand to cover 2 mln square meters over the course of the next few years.