Saudi Arabia not to be blamed for US’s rising energy costs: Prince Turki Al-Faisal

Exclusive Saudi Arabia not to be blamed for US’s rising energy costs: Prince Turki Al-Faisal
Prince Turki Al-Faisal appearing on Frankly Speaking with Katie Jensen (Arab News)
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Updated 03 May 2022

Saudi Arabia not to be blamed for US’s rising energy costs: Prince Turki Al-Faisal

Saudi Arabia not to be blamed for US’s rising energy costs: Prince Turki Al-Faisal

RIYADH: Former Saudi Intelligence chief Prince Turki Al-Faisal said the Kingdom should not be blamed for the US's energy price woes, adding it is the White House's policy agenda that is behind the increase in prices.

In an interview with Arab News' Frankly Speaking with Katie Jensen, the Prince said: “When you say that Saudi Arabia has not budged on the issue of the oil problems that America is facing, basically America itself is the reason for the state that they’re in because of their energy policy."

Following the invasion of Ukraine, oil prices have dramatically surged in the market, as several European nations and western countries announced sanctions on Russian energy imports.

On Monday, Brent crude futures was priced at $105 a barrel, while US West Texas Intermediate was at $103.70 per barrel.

Amid the price hike, the Biden administration has been urging Saudi Arabia to increase its oil output, and it has placed a strain on the relationship between the two countries.


Read moreFrankly Speaking — Saudis feel let down by America, says Prince Turki Al-Faisal


According to Al-Faisal, President Biden’s decision to curtail oil and gas production in the US has ultimately resulted in the instability of oil prices.

The former intelligence chief revealed that the ongoing geopolitical tensions have also contributed to the rise in oil prices.

In March, Yemen’s Houthi group attacked oil facilities in Saudi Arabia, and while it did not affect output, oil prices reacted to the news.

“Another factor that adds to all this is the security issue, the high rates of insurance that have come about as a result of the war in Ukraine, plus the European and American curtailment and sanction of the Russian oil industry. All of these things have added to the increase in oil prices,” stated Al-Faisal.

 

Prince reminds Hillary Clinton that Saudi Arabia is a sovereign country

The Prince also expressed his strong displeasure regarding the comments made by Hillary Clinton, the former US secretary of state, on NBC’s “Meet the Press”, where she supported the idea of a “carrot-and-stick” approach to force Saudi Arabia to increase its share of oil production.

“We are not schoolchildren to be treated with a carrot and stick. We are a sovereign country, and when we are dealt with fairly and squarely, we respond likewise,” added Al-Faisal.

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OPEC+ trying to stabilize the oil market

Al-Faisal also added that OPEC+ members are always trying to stabilize the oil market.

“The Kingdom and the other OPEC members, and the OPEC+ members are sticking to the production quotas that they have assigned themselves. The recent decision by OPEC+ to increase incrementally oil production is in response to the present difficulties that people have in the energy sector,” asserted Al-Faisal.

Meanwhile, OPEC+ is likely to stick to its existing deal and agree to another 432,000 barrel per day output target increase for June as it meets on May 5, Reuters reported citing confidential sources familiar with the matter.

Last month, OPEC told the International Monetary Fund's steering committee that the surge in oil prices was due to the Ukraine crisis, hinting that the producer group would not take further action to increase supply.


NEOM awards London-based Keller major piling contract for ‘The Line’

NEOM awards London-based Keller major piling contract for ‘The Line’
Updated 12 sec ago

NEOM awards London-based Keller major piling contract for ‘The Line’

NEOM awards London-based Keller major piling contract for ‘The Line’

RIYADH: Saudi Arabia’s $500-billion project NEOM has awarded UK’s Keller a major piling contract for “The Line,” a 170-km megacity being developed within the Kingdom’s flagship project. 

Starting in the west at the Gulf of Aqaba and terminating at the NEOM International Airport within the upper valley region, The Line is subdivided into around 135 modules, according to a statement. 

Each module contains eight buildings founded on large diameter bored piles. 

Keller had signed an umbrella framework agreement with respect to the project, and is mobilizing for an anticipated first works order on a portion of Module 40 which has an expected value to Keller of around £50 million ($61.5 million), with the work anticipated to be completed within the next 12 months.

Listed on the London Stock Exchange, Keller is an independent geotechnical solutions specialist.


NEOM, McLaren Racing partner to drive innovation in electric motorsport

NEOM, McLaren Racing partner to drive innovation in electric motorsport
Updated 27 June 2022

NEOM, McLaren Racing partner to drive innovation in electric motorsport

NEOM, McLaren Racing partner to drive innovation in electric motorsport

RIYADH: NEOM, one of Saudi Arabia’s flagship projects, has partnered with McLaren Racing to drive innovation and talent development in electric motorsport, according to a statement. 

With the partnership, NEOM becomes the title partner of the McLaren Formula E and Extreme E racing teams, which brings the two electric race series together under the banner of NEOM McLaren Electric Racing.

“Our partnership with McLaren Racing complements NEOM’s commitment to driving sustainable solutions and tackling some of society's most pressing challenges,” CEO Nadhmi Al-Nasr said. 

“The partnership will allow us to share our collective resources and experience to yield exciting results, not only for our own organizations, but also for the broader automotive and sports industries,” he added. 

McLaren will be located within OXAGON’s Research and Innovation Campus, which will provide cutting edge facilities and collaboration spaces. 

During 2023, McLaren and NEOM will create a bespoke program to nurture engineers and students, in line with the mega project’s commitment to develop Saudi talent. 


Thailand to seek fertilizer supply from Saudi producers

Thailand to seek fertilizer supply from Saudi producers
Updated 27 June 2022

Thailand to seek fertilizer supply from Saudi producers

Thailand to seek fertilizer supply from Saudi producers

RIYADH: Thailand is planning to negotiate with Saudi Arabia for the supply of fertilizers as the country is currently facing a shortage, especially due to the high cost of imports.

The Thai Chamber of Commerce will coordinate with Saudi suppliers and a business event is to be held between three major Saudi-based fertilizer suppliers and Thai importers on June 29, Thai local media reported citing Commerce Minister Jurin Laksanawisit.

Laksanawisit added that two Saudi suppliers were recently provided permission to sell fertilizers to Thailand.

Thailand heavily relies on imports for its fertilizers, with only 8 percent coming from domestic sources and a usage of about 5 million tons of fertilizer a year, according to the minister.

The country’s overall demand for fertilizer from Saudi Arabia is about 808,000 tons, the media report noted citing industry statistics.


US stocks — Wall Street sheds opening gains on losses in high-growth stocks

US stocks — Wall Street sheds opening gains on losses in high-growth stocks
Updated 27 June 2022

US stocks — Wall Street sheds opening gains on losses in high-growth stocks

US stocks — Wall Street sheds opening gains on losses in high-growth stocks
  • S&P 500 energy stocks among few gainers
  • Robinhood rises on Goldman Sachs upgrade
  • Indexes down: Dow 0.24 percent, S&P 0.36 percent, Nasdaq 0.68 percent

REUTERS: Wall Street’s main indexes fell after opening higher on Monday, as a rally last week on easing concerns over inflation lost steam, with high-growth stocks leading declines.

“We had a nice rally last week, so I think we’re seeing a little bit of profit taking this morning,” said Dennis Dick, a proprietary trader at Bright Trading LLC in Las Vegas.

“The stocks that were up the most last week are the ones getting hit the hardest here today.”

The tech-heavy Nasdaq Composite index, which gained 7.5 percent last week, fell 0.7 percent to lead declines among the three major indexes.

Investors were betting on the retreat in oil prices from the three-month highs hit in June to potentially ease inflationary pressures and likely push the Federal Reserve to moderate its aggressive policy tightening.

However, data on Monday showed new orders for US-made capital goods and shipments increased solidly in May, pointing to sustained strength in business spending on equipment in the second quarter.

Oil prices also moved back into positive territory, pushing up the S&P 500 energy index by 2.2 percent, reining in expectations for inflation falling on the back of lower energy prices.

The US central bank has rapidly raised interest rates to tame 40-year-high inflation, stoking fears its actions could tip the world’s largest economy into a recession.

After the benchmark S&P 500 index earlier this month recorded a 20 percent drop from its January closing peak to confirm a bear market, investors have been trying to gauge when the market might hit its bottom.

At 10:11 a.m. ET the Dow Jones Industrial Average was down 76.62 points, or 0.24 percent, at 31,424.06, the S&P 500 was down 13.94 points, or 0.36 percent, at 3,897.80 and the Nasdaq Composite was down 78.44 points, or 0.68 percent, at 11,529.19.

Shares of Robinhood Markets rose 0.6 percent after media reports said Goldman Sachs upgraded the retail broker’s stock to “neutral” from “sell.”

Goldman Sachs, however, cut rating on Coinbase Global Inc. to “sell” from “buy,” according to media reports, sending shares of the cryptocurrency exchange lower by 9.4 percent.

Declining issues outnumbered advancers for a 1.03-to-1 ratio on the NYSE and a 1.31-to-1 ratio on the Nasdaq.

The S&P index recorded one new 52-week high and 29 new lows, while the Nasdaq recorded 16 new highs and 41 new lows.


OPEC+ trims 2022 market surplus projection to 1m bpd -report

OPEC+ trims 2022 market surplus projection to 1m bpd -report
Updated 27 June 2022

OPEC+ trims 2022 market surplus projection to 1m bpd -report

OPEC+ trims 2022 market surplus projection to 1m bpd -report

LONDON: The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, trimmed its projected 2022 oil market surplus to 1 million barrels per day, down from 1.4 million bpd previously, a report seen by Reuters showed.

The report was prepared ahead of a meeting of the OPEC+ Joint Technical Committee scheduled to take place on Tuesday.