Price of oil surges past $80-a-barrel landmark

Price of oil surges past $80-a-barrel landmark
Oil has risen in price by more than 90 percent over the past year. (Shutterstock)
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Updated 29 September 2021

Price of oil surges past $80-a-barrel landmark

Price of oil surges past $80-a-barrel landmark
  • OPEC urges investment in production

DUBAI: The price of oil surged above $80 a barrel on Tuesday amid soaring demand from global economies and increasingly tight supply.
Brent crude, the global benchmark, jumped past the psychologically significant landmark for the first time in three years, after five days of rising prices.
Oil analysts believe the surge could have a long way to go. Christyan Malek, head of oil and gas at US bank JP Morgan, told Arab News: “The bull case suggests that oil could hit more than $100 a barrel by 2023, though it could reach that level within the next six to 12 months.”
Another US banking giant, Goldman Sachs, this week forecast a price of $90 a barrel for Brent by the end of this year.
Oil has risen in price by more than 90 percent over the past year as the output strategy of OPEC+ — the oil alliance led by Saudi Arabia and Russia — drained the global oil glut that depressed prices in 2020.
Global crude inventories that ballooned during the pandemic have shrunk to their lowest levels since January 2020 as the biggest oil consumers, the US and China, fuel their recovery.
Several other factors are also behind the recent run. Robin Mills, chief executive of consultancy Qamar Energy, said it was down to “gas shortages and revived demand colliding with US hurricanes and maintenance delays.”
Adding to the upward pressure on prices, oil demand will grow sharply in the next few years as economies recover from the pandemic, OPEC forecast in its World Oil Outlook published on Tuesday.
“Energy and oil demand have picked up significantly in 2021 after the massive drop in 2020,” OPEC Secretary-General Mohammad Barkindo said. “Continued expansion is forecast for the longer term.”
Oil use will rise by 1.7 million barrels per day in 2023 to 101.6 million bpd, OPEC said, adding to robust growth already predicted for 2021 and 2022, and pushing demand back above the pre-pandemic 2019 rate.
The organization said the world must continue investing in oil production to avert an energy shortage, despite the transition to renewables. Upstream oil capital spending dropped by nearly 30 percent to about $240 billion last year because of the pandemic.
“It is clear that underinvestment remains one of the great challenges for the oil industry,” Barkindo said. “Without the necessary investments, there is the potential for further volatility and a future energy shortfall.”
Nevertheless, OPEC is upbeat about its prospects. “Oil is still expected to retain its No. 1 position in the energy mix,” Barkindo said.


Lebanon’s negotiations with IMF likely to start in November: minister

Lebanon’s negotiations with IMF likely to start in November: minister
Updated 6 sec ago

Lebanon’s negotiations with IMF likely to start in November: minister

Lebanon’s negotiations with IMF likely to start in November: minister
  • Economy Minister Amin Salam said he was not expecting funds to be dispersed before elections in March

BEIRUT: Lebanon’s foreign minister said on Sunday negotiations with the International Monetary Fund (IMF) were likely to start in November, Lebanon’s Al Jadeed TV reported.
Economy Minister Amin Salam had said on Friday, in an interview with Reuters, that the new government aimed to make progress toward starting full negotiations for an IMF deal by the end of this year or early next, but was not expecting funds to be dispersed before elections in March.
Foreign Minister Bou Habib also spoke about the maritime border dispute between Lebanon and Israel, telling Al Jadeed that he was “optimistic about reaching an agreement.”
Lebanon and Israel are in dispute over the delineation of their territorial waters and negotiations between the old foes could lead to Lebanon being able to unlock valuable gas reserves amid its worst-ever financial crisis.
The two countries have been holding on-off US mediated talks since October to try to resolve the issue. 


Jubail Commercial Port handles more than 53,000 containers in September 


Jubail Commercial Port handles more than 53,000 containers in September 

Updated 31 min 27 sec ago

Jubail Commercial Port handles more than 53,000 containers in September 


Jubail Commercial Port handles more than 53,000 containers in September 


RIYADH: Jubail Commercial Port’s containers handling increased to 27 percent by more than 53,000 containers during September 2021 as compared to the same period in 2020.

The port also achieved a record in handling container ships by clearing procedures within five minutes.
The speedy and efficient handling is part of the Saudi Ports Authority strategy to attract international shipping lines and expand the Kingdom’s ports capacity and operations to transform the country into a logistics hub.


Saudi EXIM Bank signs MoU with Omani banks to boost cooperation

Saudi EXIM Bank signs MoU with Omani banks to boost cooperation
Updated 39 min 46 sec ago

Saudi EXIM Bank signs MoU with Omani banks to boost cooperation

Saudi EXIM Bank signs MoU with Omani banks to boost cooperation

RIYADH: Saudi EXIM Bank on Sunday signed memorandums of understanding with three major Omani banks to boost financing ties and exchange expertise.

The MoUs were signed with the National Bank of Oman, Muscat Bank and Sohar International Bank.The banks also discussed cooperation in extending credit financing and securing financing guarantees for Saudi exporters’ Omani clients.

The banks agreed to develop training programs in financial trade, risk analysis, loan management, Saad Al-Khallab, CEO of the Saudi bank said. 


MODON signs deal for 1st factory to manufacture prosthetic limbs in Kingdom

MODON signs deal for 1st factory to manufacture prosthetic limbs in Kingdom
Reuters/File
Updated 50 min 17 sec ago

MODON signs deal for 1st factory to manufacture prosthetic limbs in Kingdom

MODON signs deal for 1st factory to manufacture prosthetic limbs in Kingdom

RIYADH: The Saudi Authority for Industrial and Technology Zones, known as MODON, signed on Sunday a contract with a company to manufacture prosthetics in the Kingdom.

The first factory to manufacture prosthetics in Saudi Arabia will be established in Asir Industrial City, the Saudi Press Agency reported.

Qusai Al-Abdulkarim, a spokesman for MODON, said the establishment of the facility is a valuable addition to Saudi Arabia and it is in line with Vision 2030.

The factory, to be established with an investment of SR40 million, aims to localize manufacture of prosthetics in the Kingdom. It seeks to meet 20 percent of the local demand in the first phase of its operations. It aims to expand its operation to export Saudi products to other countries.


MGI: Charting a regional road map for sustainable living

MGI: Charting a regional road map for sustainable living
Updated 24 October 2021

MGI: Charting a regional road map for sustainable living

MGI: Charting a regional road map for sustainable living
  • Saudi initiatives demonstrate Kingdom’s willingness to address environmental challenges

RIYADH: The final event of the Saudi Green Initiative, the Middle East Green Initiative, is taking place today to create a sustainable road map for the region and highlight green transition, green policy solutions, the finance sector’s contribution to the goals of the SGI as well as insight from an international perspective. 

It will be attended by several heads of state, with key speakers including Crown Prince Mohammed bin Salman, US Special Presidential Envoy for Climate John Kerry, UN Deputy Secretary Amina Mohammed,  BlackRock CEO Larry Fink, HSBC Group Chief Executive Noel Quinn, and André Esteves, senior partner, BTG Pactual, Brazil.

Earlier this year, the crown prince highlighted that the Saudi and the Middle East green initiatives are a continuation of the environmental efforts in the Kingdom over the past few years in line with Saudi Vision 2030. 

The two initiatives demonstrate the Kingdom’s strong willingness to address the environmental challenges it has faced, from increase in temperatures and dust waves to low levels of rain and desertification.

The SGI and MGI are also aiming to collectively plant 50 billion trees as well as propel the Middle East region toward achieving more than 10 percent of global carbon emissions reduction targets.

The SGI aims to reach net zero emissions of greenhouse gases, mostly produced by burning fossil fuels, by 2060.

Saudi Arabia said the transition to net zero carbon emissions “will be delivered in a manner that preserves the Kingdom’s leading role in enhancing the security and stability of global energy markets.”

Announcing a plan to reach net zero in carbon by 2060, Crown Prince Mohammed bin Salman on Saturday said the move was in line with the Kingdom’s development plans, “while preserving and reinforcing its leading role in the security and stability of global energy markets.”

The Kingdom has pledged to double the amount of carbon it will cut in its domestic economy, removing 278 million tons of the pollutant pr year by 2030.

“As a region, we have always had to live with harsh climate conditions and we will have to continue to innovate in both mitigation and adaptation,” said Dr. Sultan bin Ahmed Al-Jaber, at a forum on COP26 in Riyadh. 

“The UAE highly commends the leadership and the people of Saudi Arabia, particularly the youth, for such a landmark, bold and long-term strategic initiative. It represents a paradigm shift in ambition for this region,” the minister said.

The SGI aims to raise vegetation cover, reduce carbon emissions, combat pollution and land degradation, and preserve marine ecosystems.