Oman, Kuwait urge oil producers to pursue cooperation

Oil barrels (Reuters)
Updated 16 April 2018
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Oman, Kuwait urge oil producers to pursue cooperation

KUWAIT CITY: Omani and Kuwaiti oil ministers on Monday called on OPEC and non-OPEC producers to continue their unprecedented cooperation to maintain stability in the energy market.
Producers from the OPEC oil cartel and non-OPEC countries struck a deal in 2016 to trim production by 1.8 million barrels per day to rebalance the market after its collapse in 2014.
The deal, which runs out at the end of this year, has succeeded in boosting oil prices above $70 a barrel from below $30 a barrel in early 2016.
“I call for the signatories of the (cooperation) declaration agreement, those 24 nations from OPEC and non-OPEC, to continue the dialogue, the understanding and commitment in maintaining the market conditions that will encourage investment,” Omani Oil Minister Mohamed Al-Rumhi told an oil conference in Kuwait.
He also called for enhancing “collaboration and work together to ensure security of supply for consumers and security of demand for producers.”
Kuwait’s Oil Minister Bakheet Al-Rasheedi said he believes that oil producers were on the right path to restore stability to the oil market.
“A year ago, there was a surplus of 340 million barrels of oil. At the end of February, the surplus dropped to 50 million barrels and we believe we are on the right path to get rid of this surplus,” Rasheedi told reporters.
He said that the OPEC and non-OPEC cooperation will be reviewed at an OPEC meeting in June.
“Market conditions will determine whether the deal will be extended beyond 2018 or arrive at a permanent agreement... to support the market on a long-term basis,” he said.
OPEC kingpin Saudi Arabia, the United Arab Emirates and several other countries have called for striking a long-term cooperation deal to stabilize the oil market.
OPEC secretary general Mohammad Sanusi Barkindo told the Kuwait conference that the 2016 deal achieved a great success in overcoming the “worst cycle in the history of oil.”
A “new chapter is being authored” by OPEC and non-OPEC producers to continue cooperation, he said.
“In the months ahead, we will look to institutionalize this long-term framework for continuity with an inclusive and broad-based participation,” Barkindo said.
The joint ministerial committee of OPEC and non-OPEC ministers, which monitors compliance to production cuts, meets in Jeddah, Saudi Arabia on Friday to review adherence and discuss long-term cooperation.


Sri Lanka calls for global coalition to tackle rising dollar

Updated 23 October 2018
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Sri Lanka calls for global coalition to tackle rising dollar

  • The island’s currency bottomed out at a record-low 174.12 rupees to the dollar
  • The rupee has shed more than 12 percent of its value this year and Sri Lanka fears it could slide further

COLOMBO: Sri Lanka on Tuesday called for a “coalition of the willing” to help stabilize free-falling emerging market currencies around the globe, as the beleaguered rupee slumped to fresh lows.
The island’s currency bottomed out at a record-low 174.12 rupees to the dollar, resisting a slew of measures by policymakers to arrest its steady decline.
The rupee has shed more than 12 percent of its value this year and Sri Lanka fears it could slide further as US sanctions squeeze Iran, the island’s chief source of oil.
A stronger dollar has made it difficult for emerging markets to repay debts and battered global currencies from Turkey to India and Argentina.
Finance Minister Mangala Samaraweera invited those nations experiencing currency crises to visit Colombo and hash out a strategy.
“The rise of the dollar is having a serious impact on our currencies. We are not the only one affected,” he told reporters in the Sri Lankan capital.
“I want to build a coalition of the willing to deal with this problem. I don’t see the global situation improving any time soon.”
Washington pulled out of a landmark 2015 nuclear deal with Iran in May and has been reimposing punishing sanctions on the Islamic republic, targeting in particular its financial system.
Iran not only supplies Sri Lanka with most of its oil, but is one of its chief buyers of the island’s celebrated tea.
Samaraweera has warned that blockading Iran will have ripple on effects on Sri Lanka, which has been unable to stop the rupee from nose diving.
Last month, Colombo curbed its state institutions and public servants from importing cars to reduce the outflow of foreign capital.
Banks were also ordered to restrict lending for purchasing overseas and consumer goods, but the rupee has continued its decline.
In August, the government substantially increased taxes on small cars to discourage imports, but officials said there was still pressure on foreign exchange reserves to finance big-ticket imports.