Abu Dhabi Airports to explore airport development with Romania

Abu Dhabi Airports to explore airport development with Romania
Abu Dhabi Airports currently operates five airports in the UAE including the main international airport in the capital. (ADAC)
Updated 26 November 2019

Abu Dhabi Airports to explore airport development with Romania

Abu Dhabi Airports to explore airport development with Romania
  • Abu Dhabi Airports currently operates five airports in the UAE including the main international airport in the capital

DUBAI: Abu Dhabi Airports said on Tuesday it had signed a memorandum of understanding (MOU) with Romania’s South Development Group to explore opportunities to manage and develop airports in the European country in its first foray outside the UAE.
The airports group, wholly owned by the Abu Dhabi government, currently operates five airports in the United Arab Emirates including the main international airport in the capital Abu Dhabi.
“We are exploring partnership opportunities for the future management and development of airports in Romania,” Bryan Thompson, chief executive officer of Abu Dhabi Airports told reporters.
He said the MOU would cover Bucharest airport and five regional airports in Romania.
Thompson said Abu Dhabi Airports, which was created in 2006 to spearhead the re-development of the Emirate’s aviation infrastructure, is also exploring projects with four or five other countries and airport groups.
“We are predominantly focused on Africa, Eastern Europe, Indonesia. There are many opportunities out there,” he said.
Thompson also said Abu Dhabi airport’s new 10.8 billion-dirham ($2.94 billion) Midfield Terminal, was 97.6 percent complete, although he could not give a date for its opening.
Thompson said passenger numbers in 2019 would be very close to 21.5 million, compared to 21.6 million passengers last year.
The Midfield Terminal is set to increase the airport’s passenger handling capacity to 45 million a year but it has faced a series of setbacks, delaying a planned July 2017 opening.


WEEKLY ENERGY RECAP: Despite long-term challenges, oil prices remain in healthy range

WEEKLY ENERGY RECAP: Despite long-term challenges, oil prices remain in healthy range
Updated 24 January 2021

WEEKLY ENERGY RECAP: Despite long-term challenges, oil prices remain in healthy range

WEEKLY ENERGY RECAP: Despite long-term challenges, oil prices remain in healthy range

Oil prices have been stable since early January, with Brent crude price hovering around $55. Brent crude closed the week slightly higher at $55.41 per barrel,
while West Texas Intermediate (WTI) closed slightly lower at $52.27 per barrel.

Oil price movement since early January in a narrow range above $50 is healthy, despite pessimism over an increase in oil demand, while expectations of US President Joe Biden taking steps to revive energy demand growth are
still doubtful. The US Energy Information Administration (EIA) reported a hike in US refining utilization to its highest since March 2020, at 82.5 percent. The EIA reported a surprise weekly surge in US commercial crude stocks by 4.4
million barrels. Oil prices remained steady despite the bearish messages sent from the International Energy Agency (IEA), which believes it will take more time for oil demand to recover fully as renewed lockdowns in several countries weighed on oil demand recovery.

The IEA’s January Oil Market Report came as the most pessimistic monthly report among other market bulletins from the Organization of the Petroleum Exporting Countries (OPEC) and EIA. It forecast oil demand will bounce back to 96.6 million bpd this year, an increase of 5.5 million bpd over 2020 levels.

Though the IEA has lowered its forecast for global oil demand in 2021 due to lockdowns and vaccination challenges, it still expects a sharp rebound in oil consumption in the second half of 2021,
and the continuation of global inventory depletion.

The IEA reported global oil stocks fell by 2.58 million bpd in the fourth quarter of 2020 after preliminary data showed hefty drawdowns toward the end of the year. The IEA reported OECD industry stocks fell for a fourth consecutive month at 166.7
million barrels above the last five-year average. It forecast that global refinery throughput is expected to rebound by 4.5 million bpd in 2021, after a 7.3 million bpd drop in 2020.

The IEA monthly report has led to some short term concern about weakness in the physical crude spot market, and the IEA has acknowledged OPEC’s firm role in stabilizing the market.

Controversially, the IEA believes that a big chunk of shale oil production is profitable at current prices, and hence insinuated that shale oil might threaten OPEC market share.

It also believes that US shale oil producers have quickly responded to oil price gains, winning market share over OPEC producers. However, even if US shale oil drillers added more oil rigs for almost three months in a row, the number of operating rigs is still less than half that of a year ago, at 289 rigs.

The latest figures from the Commodity Futures Trading Commission show that crude futures “long positions” on the New York Mercantile Exchange are at 668,078 contracts, down by 18,414 contracts from the previous week (at 1,000 barrels for each contract).