Saudi Arabia’s Apicorp predicts $60-$70 oil price by summer

A Chinese commuter sets off for work in Beijing. After a turbulent end to 2018, hopes of an end to the China-US trade dispute have buoyed oil prices. (AP Photo)
Updated 09 January 2019
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Saudi Arabia’s Apicorp predicts $60-$70 oil price by summer

  • Arab Petroleum Investments Corporation (Apicorp) made the prediction in a report as the oil price again ticked higher
  • After a turbulent final quarter in 2018, oil prices have been supported in the first week of 2019 by cuts from OPEC producers and Russia

LONDON: A top Saudi energy project funder expects oil to trade between $60 and $70 by mid-2019 as the price of crude rose on Tuesday.
Arab Petroleum Investments Corporation (Apicorp) made the prediction in a report as the oil price again ticked higher, supported by the hopes that talks between China and the US would defuse current trade tensions.
“I think there is a very good chance that we will get a reasonable settlement that China can live with and that we can live with,” US Commerce Secretary Wilbur Ross said.
After a turbulent final quarter in 2018, oil prices have been supported in the first week of 2019 by cuts from OPEC producers and Russia.
However, a glut of new US supply and a surge in shale oil drilling is also putting downward pressure on the price.
S&P Global Ratings on Tuesday lowered its average annual price assumptions for both Brent and West Texas Intermediate (WTI) crude oil for 2019 by $10 per barrel to $55 and $50, respectively.
“The ongoing trade war between the US and China as well as news of China’s economic slowdown, has led to concerns about the outlook for global demand,” the ratings agency said in a statement.
“Moreover OPEC, particularly Saudi Arabia and Russia, were producing at record levels to offset what was expected to be a meaningful reduction in global supply due to the Iranian sanctions.
“However, the sanctions fell short of expectations on Nov. 2 when it was announced that eight countries would be exempted for six months from Iranian oil import sanctions. This had the effect of drastically increasing the amount of oil expected to be on the market.”

Apicorp, which is headquartered in Saudi Arabia, is a multilateral development bank with shareholders from KSA, the UAE, Bahrain, Kuwait, Qatar, Egypt, Syria, Algeria, Iraq and Libya.


US intelligence says Huawei funded by Chinese state security: report

Updated 20 April 2019
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US intelligence says Huawei funded by Chinese state security: report

  • The accusation comes at a time of trade tensions between Washington and Beijing
  • Huawei dismissed the allegations

US intelligence has accused Huawei Technologies of being funded by Chinese state security, The Times said on Saturday, adding to the list of allegations faced by the Chinese technology company in the West.
The CIA accused Huawei of receiving funding from China’s National Security Commission, the People’s Liberation Army and a third branch of the Chinese state intelligence network, the British newspaper reported, citing a source.
Earlier this year, US intelligence shared its claims with other members of the Five Eyes intelligence-sharing group, which includes Britain, Australia, Canada and New Zealand, according to the report.
Huawei dismissed the allegations in a statement cited by the newspaper.
“Huawei does not comment on unsubstantiated allegations backed up by zero evidence from anonymous sources,” a Huawei representative told The Times.
The company, the CIA and Chinese state security agencies did not respond immediately to requests for comment.
The accusation comes at a time of trade tensions between Washington and Beijing and amid concerns in the United States that Huawei’s equipment could be used for espionage. The company has said the concerns are unfounded.
Authorities in the United States are probing Huawei for alleged sanctions violations.
Meng Wanzhou, Huawei’s chief financial officer and daughter of its founder, Ren Zhengfei, was arrested in Canada in December at the request of the United States on charges of bank and wire fraud in violation of US sanctions against Iran.
She denies wrongdoing and her father has previously said the arrest was “politically motivated.”
Amid such charges, top educational institutions in the West have recently severed ties with Huawei to avoid losing federal funding.
Another Chinese technology company, ZTE Corp. , has also been at the center of similar controversies in the United States.
US sanctions forced ZTE to stop most business between April and July last year after Commerce Department officials said it broke a pact and was caught illegally shipping US-origin goods to Iran and North Korea. The sanctions were lifted after ZTE paid $1.4 billion in penalties.
Reuters reported earlier this week that the United States will push its allies at a meeting in Prague next month to adopt shared security and policy measures that will make it more difficult for Huawei to dominate 5G telecommunications networks.