Saudi Arabia determined to end oil glut

Saudi Energy Minister Khalid Al-Falih
Updated 25 October 2017

Saudi Arabia determined to end oil glut

RIYADH: Saudi Arabia is determined to reduce inventories further through an OPEC-led deal to cut crude output and raised the prospect of prolonged restraint once the pact ends to prevent a buildup in excess supplies.
Saudi Energy Minister Khalid Al-Falih, speaking during an investment conference in Riyadh, said on Tuesday that the focus remained on reducing the level of oil stocks in OECD industrialized countries to their five-year average.
OPEC plus Russia and nine other producers have cut oil output by about 1.8 million barrels per day (bpd) since January. The pact runs to March 2018, but they are considering extending it.
“We are very flexible, we are keeping our options open. We are determined to do whatever it takes to bring global inventories down to the normal level which we say is the five-year average,” Al-Falih told Reuters.
The market has been concerned that, once the supply cut deal comes to an end, producers will ramp up supplies again, causing prices to fall. But Al-Falih raised the prospect of continued output restraint to prevent this.
“When we get closer to that (five-year average) we will decide how we smoothly exit the current arrangement, maybe go to a different arrangement to keep supply and demand closely balanced so we don’t have a return to higher inventories.”
The oil price has recovered from below $30 a barrel at the start of 2016 to trade above $57 on Tuesday, and rose after Al-Falih’s comments. Oil remains, however, at half its price in mid-2014.
Reuters reported last week, citing OPEC sources, that producers were leaning toward extending the deal for nine months, although any decision could be postponed until early next year depending on the market.
Al-Falih did not comment on an extension but said the cuts had reduced the supply overhang in storage by half.
“The intent is to keep our hands on the wheel between now and until we get to a balanced market and beyond, we are not going to do anything that is going to disrupt the path we are on,” he said.
Al-Falih said oil investment had returned after the OPEC-led pact began at the start of the year and helped by a global economic recovery.
The minister said there was consensus to continue the cuts until targets were reached to balance the market but said shocks to the market by reducing more than needed should be avoided.
— Reuters


Four Saudi students to compete at international science and engineering fair

Updated 24 min 13 sec ago

Four Saudi students to compete at international science and engineering fair

  • Intel ISEF is the world’s largest pre-college science competition
  • The four women from Jeddah were winners at the Kingdom’s National Olympiad for Scientific Creativity

RIYADH: Four Saudi students will represent the Kingdom at a major international science and engineering fair in the US later this year.

The four women from Jeddah were winners at the Kingdom’s National Olympiad for Scientific Creativity. They will be competing against more than 1,700 students from 77 countries at the Intel International Science and Engineering Fair (Intel ISEF) for more than $5 million in awards and scholarships.

The Saudi students traveling to Arizona in May are Dan Mohammed Al-Yafei and Tharaa Tariq Al-Dabbagh, who won an award at the olympiad in the field of science and the environment, and Lana Fahd Al-Abbasi and Zeina Tariq Maimani, who won in the field of physics and astronomy.

Intel ISEF is the world’s largest pre-college science competition and is an opportunity for young minds around the world to share ideas and showcase cutting-edge projects.

Intel ISEF says the winners are selected on their creative ability, scientific thought, as well as the thoroughness, skill and clarity shown in their projects.

Former Intel ISEF participant Wud Al-Saadoon won first place in the finals of the Kingdom’s National Olympiad for Scientific Creativity after working extensively on her project. She discovered her passion for science when she was in third grade, passing all aptitude tests for elementary, intermediate and high school and registering in Mawhiba enrichment programs starting from elementary school to high school.

“These programs allow students to enrol temporarily in a Saudi university,” she told Arab News. “This is how I participated as a high school student in the second olympiad program before I enrolled at King Fahd University of Petroleum and Minerals.”

She specialized in renewable chemical energy and made a special device which won her third place in a local competition.

She then qualified for Intel ISEF, where she won fourth place in the field of chemical energy last year.