OPEC cuts 2022 world oil demand forecast again on Ukraine war

OPEC cuts 2022 world oil demand forecast again on Ukraine war
OPEC still expects world consumption to surpass the 100 million bpd mark in the third quarter, and for the 2022 annual average to just exceed the pre-pandemic 2019 rate
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Updated 12 May 2022

OPEC cuts 2022 world oil demand forecast again on Ukraine war

OPEC cuts 2022 world oil demand forecast again on Ukraine war
  • “Demand in 2022 is expected to be impacted by ongoing geopolitical developments in Eastern Europe, as well as COVID-19 pandemic restrictions”

LONDON: OPEC on Thursday cut its forecast for growth in world oil demand in 2022 for a second straight month, citing the impact of Russia’s invasion of Ukraine, rising inflation and the resurgence of the omicron coronavirus variant in China.

In a monthly report, the Organization of the Petroleum Exporting Countries (OPEC) said world demand would rise by 3.36 million barrels per day (bpd) in 2022, down 310,000 bpd from its previous forecast.

The Ukraine war sent oil prices briefly above $139 a barrel in March, the highest since 2008, worsening inflationary pressures. OPEC has cited suggestions that China, with strict COVID lockdowns, is facing its biggest demand shock since 2020 when oil use plunged.

“Demand in 2022 is expected to be impacted by ongoing geopolitical developments in Eastern Europe, as well as COVID-19 pandemic restrictions,” OPEC said in the report.

Nonetheless, OPEC still expects world consumption to surpass the 100 million bpd mark in the third quarter, and for the 2022 annual average to just exceed the pre-pandemic 2019 rate.

OPEC and its allies which include Russia, known as OPEC+, are unwinding record output cuts put in place during the worst of the pandemic in 2020 and have rebuffed Western pressure to raise output at a faster pace.

At its last meeting, OPEC+ swerved the Ukraine crisis and stuck to a previously agreed plan to boost its monthly output target by 432,000 bpd in June.

OPEC+ has been undershooting the increases due to underinvestment in oilfields in some OPEC members and, more recently, losses in Russian output.

The report showed OPEC output in April rose by 153,000 bpd to 28.65 million bpd, lagging the 254,000 bpd rise that OPEC is allowed under the OPEC+ deal.


Saudi airline flynas joins with Amazon Payment to offer installment payment options

Saudi airline flynas joins with Amazon Payment to offer installment payment options
Updated 15 sec ago

Saudi airline flynas joins with Amazon Payment to offer installment payment options

Saudi airline flynas joins with Amazon Payment to offer installment payment options

RIYADH: Saudi Arabia’s budget airline flynas has become the first carrier in the Kingdom to offer installment payment options to customers after joining with Amazon Payment Services.

According to a press release issued by flynas, this new option allows travelers to pay for their booking in regular monthly payments through the bank issuing the credit card.

Currently, installments are supported by banks across three countries; Saudi Arabia, Egypt, and the UAE.

“We are pleased to offer our guests this new payment option to purchase their tickets in installments, which gives them more opportunities to travel and expands their options when choosing their favorite destinations,” said Stefan Magiera, chief commercial officer at flynas.

Amazon Payment Services’ Mona Alsemayen said, “By offering the Installments payment option to their travelers through the bank issuing the credit card, flynas is leading innovation in the Saudi travel industry by adopting technologies that improve the customer experience overall.”

 


MENA startups raise $1.8bn in first half of 2022

MENA startups raise $1.8bn in first half of 2022
Updated 35 min 45 sec ago

MENA startups raise $1.8bn in first half of 2022

MENA startups raise $1.8bn in first half of 2022

RIYADH: Startups in the Middle East and North Africa region raised $1.8 billion in the first half of 2022 — hitting an all-time high of $974 million in the first quarter alone, said a MAGNiTT report.

The region saw three startups in the top-10 investment rounds across the MENA region, Pakistan, Turkey, and Sub-Saharan Africa, thanks to Saudi Arabia’s Foodics, UAE’s Pure Harvest Smart Farms, and Bahrain’s Rain.

The report also indicated that 33 mergers and acquisitions were recorded in the MENA region.

The fintech sector remained the most capital attracting sector, raising nearly $1.7 billion and accounting for 34 percent of the total funding secured across all markets. Transport and logistics and e-commerce came in second and third, each raising respectively $1 billion and $501 million.


Morocco awards first solar contracts since 2020 to increase renewable energy sources 

Morocco awards first solar contracts since 2020 to increase renewable energy sources 
Updated 41 min 50 sec ago

Morocco awards first solar contracts since 2020 to increase renewable energy sources 

Morocco awards first solar contracts since 2020 to increase renewable energy sources 

RIYADH: Morocco has awarded six contracts for solar projects in the second quarter of this year, MEED reported. 

This is part of the North African country’s bid to source up to 52 percent of its energy from renewable sources and cut greenhouse gas emissions by 45.5 percent by 2030. 

The move constitutes the first set of renewable energy contracts that the Moroccan Agency for Sustainable Energy and Morocco's Energy Transition & Sustainable Development Ministry have awarded since 2020, the MEED report added. 

The new contracts also include the first phase of its Noor 2 solar photovoltaic power project.

Three companies have won the contracts to develop the six solar photovoltaic schemes, whose capacity ranges between 36 megawatts and 69 megawatts.


Chinese firm signs deal to build three cranes for Dammam project

Chinese firm signs deal to build three cranes for Dammam project
Updated 05 July 2022

Chinese firm signs deal to build three cranes for Dammam project

Chinese firm signs deal to build three cranes for Dammam project

RIYADH: China’s Shanghai Zhenhua Heavy Industries has signed a deal with Saudi Global Ports to build three quay cranes at King Abdulaziz Port in Dammam, according to a MEED report.

These cranes will have a minimum outreach of 25 rows. SGP is also exploring the possibility of equipping the cranes with remote operations and photovoltaic panels.

According to the report, the agreement is in line with SGP’s commercial concession worth SR7 billion ($1.8 billion) with the Saudi Ports Authority, also known as Mawani.

Signed in April 2020, SGP’s commercial concession with Mawani is a 30-year agreement aimed at developing and modernizing facilities to turn the Dammam port into a container terminal hub by increasing its capacity to 7.5 million twenty-foot equivalent units.


South Korean firm KEPCO wins cogen contract for Saudi Aramco’s giant gas field

South Korean firm KEPCO wins cogen contract for Saudi Aramco’s giant gas field
Updated 05 July 2022

South Korean firm KEPCO wins cogen contract for Saudi Aramco’s giant gas field

South Korean firm KEPCO wins cogen contract for Saudi Aramco’s giant gas field

RIYADH: Korea Electric Power Corp., also known as KEPCO, has won the contract to develop Saudi Aramco’s planned Jafurah cogeneration independent steam and power plant.

The South Korean utility developer and investor won the contract after facing tough competition from two local firms ACWA Power and Al Jomaih, MEED reported, quoting people familiar with the matter. 

Aramco issued the request for proposals for the scheme in the final quarter of last year, and bids were received in February 2022. 

The proposed Jafrua cogen plant will have a power capacity of 270-320 MW and low-pressure steam demand of 77-166 thousand pounds an hour and high-pressure steam demand of 29-126 klb/hour by 2023, the report added. 

The report further noted that the LP and HP steam demand will increase to 283-373 klb/hr and 66-321 klb/hr respectively by 2027