Oil coup for Saudi Arabia as output cuts are extended

Oil coup for Saudi Arabia as output cuts are extended
Saudi Arabia's Energy Minister Prince Abdul Aziz bin Salman. The Kingdom pulled off a coup in the world of oil diplomacy with an agreement to extend the historic output cuts credited with pulling energy markets out of chaos. (Screenshot)
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Updated 07 June 2020

Oil coup for Saudi Arabia as output cuts are extended

Oil coup for Saudi Arabia as output cuts are extended
  • ‘Compliance is vital,’ Prince Abdul Aziz says

DUBAI: Saudi Arabia pulled off a coup in the world of oil diplomacy on Saturday with an agreement to extend the historic output cuts credited with pulling energy markets out of chaos.

At a virtual meeting of the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC producers led by Russia, 23 exporters agreed to roll over the record-breaking cuts until the end of July, with a monthly option to renew the agreement after that.

The deal has strict provisions against producers who fail to comply. Some countries, notably Iraq and Nigeria, have been accused of ignoring the agreed caps on crude production.

“Effective compliance is vital if we are to secure the hard-won stability in global oil markets and restore confidence in the unity and effectiveness of the OPEC+ group,” said Prince Abdul Aziz bin Salman, the Saudi Energy Minister. “This stability and positive market sentiment will bring its own rewards.”


OPEC+ agreed unanimously that countries that have fallen short of full compliance since May 1 will make up that shortfall over the summer months and will adhere to production limits in the future.

Compliance will be assessed at monthly ministerial monitoring meetings until the end of the year. “We must be vigilant. Each of the 23 countries represented here must be on guard for any signs of backsliding from their commitments,” Prince Abdul Aziz said.


“All OPEC+ partners must deliver on their pledges for the collective pledges to be sustained. Each country has to adhere to its commitment to restrain production along the agreed guidelines.”

The minister referred to the recent “low point” when American crude briefly traded below zero, but said the OPEC+ deal, bolstered by extra voluntary cuts from Saudi Arabia, the UAE and Kuwait, had helped the global market over the worst.


Brent crude, the global benchmark, has more than doubled in price since the cuts took effect. “Demand is returning as big oil-consuming economies emerge from pandemic lockdown,” Prince Abdul Aziz said. “Through our commitment to a proactive policy, within a cohesive and collective framework, we are restoring confidence and stability to global oil markets. Today, we have grounds to be cautiously optimistic about the future.”

Energy experts welcomed the deal, but echoed the minister’s caution. “This is an important success for OPEC+. It shows ability to deliver, willingness to address discipline, and coherence in the approach,” saidChristof Ruehl of the Center on Global Energy Policy at Columbia University.

“The problem is that the more OPEC+ succeeds, the easier it becomes for private producers to enjoy the fruits of its labor.”


Fraudsters up their game, posing as bank officials on the phone in Saudi Arabia

Fraudsters up their game, posing as bank officials on the phone in Saudi Arabia
Vishing that occurs during a telephone call aims to provoke fear in the victim so that customers will be more susceptible to giving out personal, financial, or security details. (shutterstock)
Updated 18 January 2021

Fraudsters up their game, posing as bank officials on the phone in Saudi Arabia

Fraudsters up their game, posing as bank officials on the phone in Saudi Arabia
  • The Saudi Central Bank (SAMA) has warned bank customers, both citizens and expatriates, not to fall victim to financial frauds being perpetrated by scammers

JEDDAH: Fraudsters have developed a new scam, contacting residents in Saudi Arabia and pretending to be bank staffers requesting customer details.
A number of Arab News staff have received such calls in recent weeks. One caller spoke Urdu while two other callers posing as senior officials from the headquarters of the bank spoke in English and Arabic with a local accent.
They used phone numbers that appeared to be local numbers but upon calling back, the lines failed to connect.
The racketeers collect phone numbers of customers and ring them up, saying that their bank account or ATM card requires immediate updating. The scammers use the information provided to gain access to their bank accounts.
Speaking to Arab News, Talat Zaki Hafiz, secretary-general of the Media and Banking Awareness Committee of Saudi banks, said: “Saudi banks represented by the Media and Banking Awareness Committee have repeatedly warned bank customers not to react to stray phone calls of any kind coming from unknown sources that ask to update their banking record or personal information.” He further confirmed that banks do not request such information through phone calls or SMS messages.
Mohammed Khurram Khan, a professor of cybersecurity at the King Saud University in Riyadh, told Arab News: “Phishing, an online scam which targets users through emails where individuals are encouraged to click on a link that takes them to fraudulent sites, was troubling people. Now it’s a different kind of scam known as ‘vishing,’ over-the-phone phishing, where scammers persuade users to share their banking information by impersonating a bank official.”

HIGHLIGHT

The racketeers collect phone numbers of customers and ring them up, saying that their bank account or ATM card requires immediate updating. The scammers use the information provided to gain access to their bank accounts.

Vishing that occurs during a telephone call aims to provoke fear in the victim so that customers will be more susceptible to giving out personal, financial, or security details.
Sharing his experience Zafar Hasan, an e-learning consultant in Riyadh, said: “I received a call from someone on an unknown mobile number who introduced himself as a bank employee and told me that my ATM card was going to be blocked. It required an immediate update so I should give my Iqama number (residence permit number) and sixteen-digit ATM card number. I felt something was fishy, so I told him that I would go personally to the bank to update the card.”
The Saudi Central Bank (SAMA) has warned bank customers, both citizens and expatriates, not to fall victim to financial frauds being perpetrated by scammers.
SAMA called on bank customers to take information only from the official channels of the bodies regulating the Kingdom’s financial and investment sectors and inform the competent security authorities about such fraudulent attempts.