Saudi Arabia’s voluntary production cuts support oil prices

Saudi Arabia’s voluntary production cuts support oil prices
Saudi Arabia has pledged to cut its crude output by 1 million barrels per day in July on top of a broader deal to limit supply into 2024. (Reuters/File)
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Updated 08 June 2023
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Saudi Arabia’s voluntary production cuts support oil prices

Saudi Arabia’s voluntary production cuts support oil prices

RIYADH: Oil prices rose on Thursday as tighter supply resulting from Saudi Arabia’s pledged production cut and a potential pause to US interest rate hikes offset worries over demand weakness and a global economic slowdown.

At a recent meeting of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, Saudi Arabia said it will cut its crude output by 1 million barrels per day in July on top of a broader deal to limit supply into 2024 as the producer group seeks to boost flagging prices.

Brent crude rose 25 cents, or 0.3 percent, to $77.20 a barrel by 1328 GMT. US West Texas Interme- diate crude gained 20 cents, or 0.3 percent, to $72.73.
“With the OPEC+ meeting out of the way, focus is now shifting toward the next move the Fed will make when it meets next week,” said Tamas Varga of oil broker PVM.
There is growing consensus that the central bank will skip a rate hike, which could lift oil prices even before falling supply starts draining global oil inventories, Varga added.
OPEC+ cooperation praised
Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman praised their collaboration during a phone call on Wednesday in a discussion of the work of OPEC+, the Kremlin said.
“The topic of ensuring stability on world energy markets was discussed in detail,” according to a Kremlin statement on the Telegram messaging app.
“Both sides praised cooperation within the framework of OPEC+, allowing for the adoption of timely and effective steps to ensure a balance between supply and demand for oil.”
The statement noted the impor- tance of agreements reached at the group’s meeting this week.
UAE ship insurance rules
Tougher requirements for some ship insurers covering the UAE ships are aimed at boosting environmental safety amid growing concerns over unregu- lated shipping, reported the state- run news agency WAM.
The UAE’s Energy and Infrastructure Ministry, in a June 2 circular, announced it would tighten insurance criteria for vessels registered under its flag for insurers that are not part of the leading ship insurers, known as the International Group of Protec- tion and Indemnity Clubs, which cover 90 percent of the world’s ocean-going fleet.
“By prioritizing stringent P&I standards, we ensure the safety, financial security, and environ- mental stewardship of our maritime activities, attracting reputable investors,” said Hessa Al Malek, adviser to the minister for maritime transport affairs.
The WAM report added that the move would reduce the risk of accidents and oil spills, leading to a safer and more secure marine environment.


Saudi Tourism Authority joins forces with Huawei to boost Chinese tourism

Saudi Tourism Authority joins forces with Huawei to boost Chinese tourism
Updated 8 sec ago
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Saudi Tourism Authority joins forces with Huawei to boost Chinese tourism

Saudi Tourism Authority joins forces with Huawei to boost Chinese tourism

RIYADH: In a bid to enhance the experience for travelers and bolster Chinese visits to Saudi Arabia, the Saudi Tourism Authority has collaborated with Huawei Mobile Services and its advertising branch, Petal Ads. 

The partnership was cemented through a memorandum of understanding signed during the Approved Destination Status launch ceremony in Beijing, according to a press release. 

Fahd Hamidaddin, CEO of the Saudi Tourism Authority, signed the deal alongside Walter Ji Rengui, president of Huawei Consumer Cloud Service Global Ecosystem Development & Operations. 

The primary objective of this collaboration is to reshape the way visitors explore Saudi Arabia by digitizing travel services, with a specific focus on attracting Chinese tourists, the press release added. 

Choon Yang Quek, chief technology officer at the STA, stated: “The partnership with Huawei Mobile Services and Petal Ads is part of Saudi’s innovative approach to marketing tourism and enhancing visitor experiences.”  

He added: “By joining forces with Huawei, known for its strong consumer connections, and combining it with Saudi’s commitment to visitor satisfaction, we can now reach new audiences more effectively through established Huawei channels and gain deeper insights into Chinese travelers to tailor their Saudi journeys.” 

This agreement reflects the ongoing partnership between the two entities and their shared dedication to showcasing Saudi Arabia as a dynamic destination to Chinese audiences, the press release added. 

Alhasan Al-Dabbagh, president of Asia-Pacific markets at the STA, said: “By incorporating Huawei’s cutting-edge technology into the travel experience, we can leverage established channels to reach a wider audience and gain a deeper understanding of potential visitors.” 

Through the integration of Huawei Mobile Services’ advanced technology solutions, tourists visiting Saudi Arabia can anticipate a smarter travel experience. 

This includes features such as seamless navigation, language translation services, and augmented reality-guided tours, all aimed at helping tourists make the most of their time while exploring the Kingdom. 

The partnership is part of the STA’s efforts to enhance the tourist experience through technology while highlighting Saudi Arabia’s cultural heritage, landscapes, and hospitality. 

This comes as the Kingdom aims to deliver personalized experiences for Chinese tourists, with readily available support throughout their trip. 

In partnership with Petal Ads, the STA looks to attract more Chinese tourists to discover Saudi Arabia’s attractions.  


OIC plans cooperation framework on contract farming among members   

OIC plans cooperation framework on contract farming among members   
Updated 10 min 43 sec ago
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OIC plans cooperation framework on contract farming among members   

OIC plans cooperation framework on contract farming among members   

RIYADH: A new framework to help boost food security across the Muslim world will be unveiled at the next meeting of the Organization of Islamic Cooperation, set to be held in 2025, it has been announced.

The OIC confirmed the move at its latest gathering in Doha on Tuesday, as it called for a new business model entered on contract farming for its member nations.    

This initiative is expected to be in the spotlight at the next OIC ministerial conference due to in the capital of Chad in 2025, with the exact date yet to be announced.  


Monsha’at, E-Commerce Council organize tour to promote online trade 

Monsha’at, E-Commerce Council organize tour to promote online trade 
Updated 03 October 2023
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Monsha’at, E-Commerce Council organize tour to promote online trade 

Monsha’at, E-Commerce Council organize tour to promote online trade 

RIYADH: Saudi Arabia can expect a considerable penetration of online trading as the General Authority for Small and Medium Enterprises, or Monsha’at, organized the third phase of its tour with the E-Commerce Council on Monday. 

According to the Saudi Press Agency, the tour concludes on Wednesday and has witnessed the participation of service providers and e-commerce specialists. 

The tour included discussions on developing an environment conducive to developing e-commerce in the Kingdom and the platform's role in various government sectors, including transportation, rural and municipal affairs, housing and SMEs. 


Saudi Arabia dispatches first crude iron shipment to US

Saudi Arabia dispatches first crude iron shipment to US
Updated 03 October 2023
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Saudi Arabia dispatches first crude iron shipment to US

Saudi Arabia dispatches first crude iron shipment to US

RIYADH: Saudi Arabia has strengthened its position in global supply chains after a ship loaded with 37,000 tons of crude iron set sail from the Port of Jazan City to New Orleans, US.

According to the Saudi Press Agency, this product marks a significant milestone as it is the first to be manufactured within the region, produced at the Advanced Smelting Industries Co. factory in Jazan.

Crude iron, also known as pig iron, is a more brittle form of the material and is used in steel production.

Traditionally recognized for its vast oil reserves, the Gulf nation has been proactively pursuing economic diversification, as outlined in Vision 2030.

The successful production and export of crude iron are crucial steps toward achieving this goal.

The Port of Jazan City boasts extensive capabilities and advanced logistical transportation services, solidifying its status as a pivotal trade hub in Saudi Arabia.

Positioned as one of the region’s most modern ports, it lies along the international trade route through the Red Sea, in close proximity to the Bab Al-Mandab Strait, various African nations, and the maritime Silk Road.

Consequently, this port is a crucial gateway for the southern regions and neighboring countries.


Saudi SWCC signs 5 agreements to localize the water industry

Saudi SWCC signs 5 agreements to localize the water industry
Updated 03 October 2023
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Saudi SWCC signs 5 agreements to localize the water industry

Saudi SWCC signs 5 agreements to localize the water industry

RIYADH: Amid efforts to localize the water industry and support advances and innovative technologies, Saudi government firm Saline Water Conversion Corp. has inked five deals with prominent organizations and companies.

During the second session of the Innovation Driven Desalination Conference 2023 in Jeddah, two agreements were signed with the Small and Medium Enterprises General Authority, also known as Monsha’at, and University of Tabuk.

The remaining three deals were in agreement with software firm UiPath, design and manufacturer Fluid Equipment Development Co., and American chemicals corporation Dow, the Saudi Press Agency reported.