Saudi-European businessmen explore opportunities

Updated 20 November 2013

Saudi-European businessmen explore opportunities

The British consulate in Jeddah brought together European and Saudi businessmen on one to one level at 2nd Saudi-European business networking event and reception at the consulate premises on Monday.
The event took place with the support of the European Union delegation to Saudi Arabia and was organized by Jeddah-based European business groups and the consulates of Austria, France, Germany, Greece, Italy, Switzerland and UK.
European Union Ambassador Adam Kulach said that the European business groups had been traditionally coming to Jeddah and interacting with their local counterparts.
“It is all the more interesting if members of the different groups can meet and exchange ideas at a joint event like this one, across national borders under the European flag. This year we see a bigger number of participants even as some countries don’t have consulate generals in Jeddah but have business relations with the Kingdom,” he said.
Michael Cockel, head of UK trade and Investment in Jeddah, told Arab news that this year the Riyadh-based embassies from Belgium, Ireland, the Netherlands, Spain and Sweden also took part in the event to enhance the business relationship with Saudis.
He said Saudi Arabia was the European Union’s 11th largest trading partner.
European businessmen are respected here because of their professionalism, experience, expertise, dynamism and their innovative approaches, he added.
“We hold this event in collaboration with our European colleagues to further strengthen these ties and to establish new business connections that will benefit the growth of trade between us,” he added.
Swiss Consul General Hans Stalder said: “Our presence in such events Jeddah may be our last because the consulate is going to close. Hope the participation of Switzerland will come from Riyadh or Dubai in the future.”

OPEC sees small 2020 oil deficit even before latest supply cut

Updated 12 December 2019

OPEC sees small 2020 oil deficit even before latest supply cut

  • OPEC keeps its 2020 economic and oil demand growth forecasts steady and is more upbeat about the outlook

LONDON: OPEC on Wednesday pointed to a small deficit in the oil market next year due to restraint by Saudi Arabia even before the latest supply pact with other producers takes effect, suggesting a tighter market than previously thought.

In a monthly report, OPEC said demand for its crude will average 29.58 million barrels per day (bpd) next year. OPEC pumped less oil in November than the average 2020 requirement, having in previous months supplied more.

The report retreats further from OPEC’s initial projection of a 2020 supply glut as output from rival producers such as US shale has grown more slowly than expected. This will give a tailwind to efforts by OPEC and partners led by Russia to support the market next year.

OPEC kept its 2020 economic and oil demand growth forecasts steady and was more upbeat about the outlook.

“On the positive side, the global trade slowdown has likely bottomed out, and now the negative trend in industrial production seen in 2019 is expected to reverse in 2020,” the report said.

Oil prices were steady after the report’s release, trading near $64 a barrel, below the level some OPEC officials have said
they favor.

The Organization of the Petroleum Exporting Countries, Russia and other producers, a group known as OPEC+, have since Jan. 1 implemented a deal to cut output by 1.2 million bpd to support the market. At meetings last week, OPEC+ agreed to a further cut of 500,000 bpd from Jan. 1 2020.

The report showed OPEC production falling even before the new deal takes effect.

In November, OPEC output fell by 193,000 bpd to 29.55 million bpd, according to figures the group collects from secondary sources, as Saudi Arabia cut supply.

Saudi Arabia told OPEC it made an even bigger cut in supply of over 400,000 bpd last month. The Kingdom had boosted production in October after attacks on its oil facilities in September briefly more than halved output.

The November production rate suggests there would be a 2020 deficit of 30,000 bpd if OPEC kept pumping the same amount and other factors remained equal, less than the 70,000 bpd surplus implied in November’s report and an excess of over 500,000 bpd seen in July. OPEC and its partners have been limiting supply since 2017, helping to revive prices by clearing a glut that built up in 2014 to 2016. But higher prices have also boosted US shale and other rival supplies.

In the report, OPEC said non-OPEC supply will grow by 2.17 million bpd in 2020, unchanged from the previous forecast but 270,000 less than initially thought in July as shale has not grown as quickly as first thought.

“In 2020, non-OPEC supply is expected to see a continued slowdown in growth on the back of decreased investment and lower drilling activities in US tight oil,” OPEC said, using another term for shale.