Iraq, Kazakhstan agree to make up for crude overproduction

Iraq, Kazakhstan agree to make up for crude overproduction
The move underscored Iraq’s dedication to supporting the joint efforts made by the OPEC+ group to achieve balance and stability in the oil market. (Reuters/File)
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Updated 22 August 2024
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Iraq, Kazakhstan agree to make up for crude overproduction

Iraq, Kazakhstan agree to make up for crude overproduction
  • Oil prices steady as larger than expected draw in US stocks limited losses

DUBAI/LONDON: The Organization of the Petroleum Exporting Countries has received updated output compensation plans from Iraq and Kazakhstan.

The oil producers’ group said on Thursday the two countries aim to make up for their overproduction in the first seven months of this year by September 2025.
OPEC and other producers including Russia, known as OPEC+, have implemented a series of output cuts since late 2022 to support the market, most of which are in place until the end of 2025.
Iraq’s cumulative overproduction between January and July was 1.4 million barrels per day and Kazakhstan’s was 699,000 bpd, OPEC said.

FASTFACTS

• The two countries aim to make up for their overproduction in the first seven months of this year by September 2025.

• Iraq’s cumulative overproduction between January and July was 1.4 million barrels per day and Kazakhstan’s was 699,000 bpd.

Iraq’s Oil Ministry confirmed on Thursday it had submitted an updated compensation plan to the OPEC Secretariat and said it had “taken real and tangible steps to reduce production levels while working to compensate for the quantities that exceeded the designated production levels in previous months.”
The move underscored Iraq’s “dedication to supporting the joint efforts made by the OPEC+ group to achieve balance and stability in the global oil market, and to safeguard the interests of all producing and consuming countries alike,” it added.
Russia said earlier this month it exceeded its July production quota agreed with OPEC+ but pledged to abide by it and to compensate for excess output.
On Aug. 1, OPEC+ confirmed a plan to start unwinding the most recent layer of cuts of 2.2 million bpd from October, with the caveat that it could be paused or reversed if needed.

Prices
Oil prices steadied on Thursday as a drop in US fuel inventories provided a floor, after four days of declines on investor concern over the global demand outlook.
Brent crude futures gained 29 cents, or 0.4 percent, to $76.34 a barrel by 1330 GMT. US West Texas Intermediate crude futures rose 43 cents, or 0.6 percent, to $72.36.
“Crude oil prices have stabilized but continue to face downward pressure from ongoing macroeconomic factors. Concerns about China’s economic slowdown have weighed heavily on global demand,” said George Khoury, global head of education and research at CFI Financial Group.
Prices plunged on Wednesday as revisions to jobs data in the US added to concerns about crude demand after weak economic data out of China last week.
Underpinning prices, a government report on Wednesday showed US crude, gasoline and distillate inventories fell in the week ending Aug. 16 while refinery runs increased.
The larger than expected draw in US stocks limited losses.


Saudi Arabia leveraging technology to support global interests: Finance minister 

Saudi Arabia leveraging technology to support global interests: Finance minister 
Updated 12 sec ago
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Saudi Arabia leveraging technology to support global interests: Finance minister 

Saudi Arabia leveraging technology to support global interests: Finance minister 

RIYADH: Saudi Arabia is using its technological edge to not only meet domestic goals but support the interests of other nations, according to a top minister. 

Speaking at a session during the 2024 Berlin Global Dialogue, Saudi Arabia’s Finance Minister Mohammed Al-Jadaan emphasized that long-term planning, stable policies, and strong public-private partnerships are crucial factors to ensure sustainable growth globally. 

His comments on Saudi Arabia’s technological advancements align with the National Strategy for Data and Artificial Intelligence, which aims to establish the Kingdom as a global tech leader by 2030. 

“We cannot have prosperity in the world without a very clear environment that supports innovation and technology and then sharing them, particularly with low-income nations and the emerging markets,” said Al-Jadaan. 

He also underscored the need to invest in strengthening the multilateral trading system to mitigate economic risks, address challenges, and ensure equitable growth within societies. 

Al-Jadaan called for continued engagement in forums like the Berlin Global Dialogue through multilateral institutions to discuss critical global issues. 

In May, at the third meeting of G7 finance ministers and central bank governors under Italy’s presidency, Al-Jadaan stated that Saudi Arabia is on track to help propel sustainable development globally through its pivotal role in artificial intelligence. 

A report by global consulting firm Strategy& Middle East in September echoed this sentiment, projecting that Saudi Arabia’s technology sector could see an increase in operating profit of SR15 billion ($4 billion) by 2028 through the adoption of generative AI.

During the Berlin event, Al-Jadaan met with government officials and major international investors to explore opportunities for cooperation and partnership with Saudi Arabia. He also discussed strengthening the Kingdom’s role in various international forums. 

The Saudi minister also met with German Finance Minister Christian Lindner and discussed ways to enhance bilateral relationship between both nations. 

The second edition of the Berlin Global Dialogue began in the German capital on Oct. 1 under the theme ‘Building Common Ground.’ 

The two-day event focused on how the international community can continue cooperating amid increased fragmentation, misinformation, and distrust. 

This year, the German government launched the next phase of the Green Guarantee Group, designed to unlock private capital for green investments. 

According to the Berlin Global Dialogue website, Green Guarantees are innovative but underutilized financial tools that promote environmentally sustainable projects by reducing risks for investors.


Global Cybersecurity Forum launches major initiatives to strengthen online resilience and child protection

Global Cybersecurity Forum launches major initiatives to strengthen online resilience and child protection
Updated 19 min 33 sec ago
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Global Cybersecurity Forum launches major initiatives to strengthen online resilience and child protection

Global Cybersecurity Forum launches major initiatives to strengthen online resilience and child protection

RIYADH: A center for bolstering economic resilience against online threats and a new child protection initiative were among the announcements at the opening of the Global Cybersecurity Forum in Riyadh.

In his opening speech at the two-day event, Governor of the National Cybersecurity Authority Majed Al-Mazyed emphasized the event’s focus on advancing collective action and the roadmap set by previous editions of the forum. 

He highlighted the GCF’s commitment to ensuring a safe and secure digital world, saying: “The GCF activities and partnerships embody this year’s theme: advancing collective action in cyberspace, building on the road map established in previous editions, and setting the direction for the UN.” 

The Center for Cyber Economics is a global initiative by the GCF created in collaboration with the World Economic Forum. 

This center aims to empower decision-makers across public and private sectors with insights into how to tackle cyber threats, and it will also develop models to quantify the economic impacts of cyber activities, foster an ecosystem for knowledge sharing, and ensure that cybersecurity remains central to economic growth, particularly in promoting inclusivity in the digital economy.

Al-Mazyed also underlined the forum’s role in launching new projects that address vital issues in cyberspace, from economic resilience to child safety.

This includes the Child Protection in Cyberspace initiative, which focuses on safeguarding children in the digital world.

The forum aims to introduce a “child safe” label for tech products, educational content for parents, and a centralized reporting platform to combat cybercrimes against children.

A significant collaboration with UNICEF will see the launch of a global program spanning over 30 countries, contributing to safer cyberspace for youth. This initiative will also develop the CPC Index, a comprehensive measure of child protection in cyberspace, in partnership with Digital Intelligence Quotient. 

Further strengthening global cybersecurity efforts, the forum unveiled the Women Empowerment in Cybersecurity initiative. 

This effort aims to broaden the talent pool in the sector by encouraging young girls to pursue STEM education while also addressing gender stereotypes in the cybersecurity profession. 

The WEC initiative will support progressive recruitment policies and mentorship programs, empowering women to take on leadership roles in the industry.

These developments reflect Saudi Arabia’s broader strategy to position itself as a leader in the cybersecurity space, in line with its Vision 2030 goals. 

The Kingdom has invested heavily in technology and online safety, recognizing the vital role a secure digital infrastructure plays in economic diversification. 

As Al-Mazyed highlighted during the opening ceremony, the forum is dedicated to pushing the boundaries of knowledge and ensuring a unified, secure global cyberspace.


Saudi POS transactions surge 11% in late September to reach $3bn

Saudi POS transactions surge 11% in late September to reach $3bn
Updated 02 October 2024
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Saudi POS transactions surge 11% in late September to reach $3bn

Saudi POS transactions surge 11% in late September to reach $3bn

RIYADH: Saudi Arabia’s point-of-sale transactions surged 11.9 percent in the last week of September, reaching SR13.3 billion ($3.4 billion), with the food and beverages sector leading the uptick.

The latest figures from the Saudi Central Bank, also known as SAMA, showed that spending in this sector during the week from Sept. 22-28 recorded the highest increase at 28 percent, with total transactions reaching SR2.14 billion.

Spending on recreation and culture followed with a 24.6 percent increase to SR308.2 million. The telecommunications division recorded the third largest uptick with a 21 percent positive change, reaching SR116.3 million. 

Expenditure on education recorded the most significant decline at 21.3 percent, coming in at SR100 million during this period. The latest figures showed that spending in the education sector continued its downfall trajectory for over a month after surging for four consecutive weeks, coinciding with the start of the academic year on Aug. 18.

Saudis spent SR238.9 million on hotels in the seven-day period, reflecting an 18.3 percent drop frrom the previous week, and SR741.9 million on transportation, marking a 2.6 percent decrease.

Only those three sectors experienced declines this week, with most other industries seeing growth. 

The food and beverages sector saw the largest share of the POS, followed by restaurants and cafes at SR1.98 billion and miscellaneous goods and services at SR1.62 billion.

Spending in the top three categories accounted for approximately 43 percent or SR5.7 billion of this week’s total value.

Geographically, Riyadh dominated POS transactions, representing 33.5 percent of the total, with spending in the capital reaching SR4.49 billion — an 8.4 percent increase from the previous week. 

Jeddah followed with a 6.8 percent surge to SR1.82 billion, accounting for 13.6 percent of the total, and Dammam came in third at SR658.7 million, up by 7.1 percent.

Tabuk saw the most significant increase in spending, up by 23 percent to SR265.1 million. Hail and Abha came in second and third places, with expenditures surging 22.5 percent and 11 percent to SR220.9 million and SR167.8 million, respectively.

In terms of the number of transactions, Tabuk recorded the highest increase at 10.9 percent, reaching 4,737. Makkah recorded the smallest increase at 2.2 percent, reaching 8,204 transactions.


OPEC+ doing ‘noble’ job of balancing oil market, says UAE

OPEC+ doing ‘noble’ job of balancing oil market, says UAE
Updated 02 October 2024
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OPEC+ doing ‘noble’ job of balancing oil market, says UAE

OPEC+ doing ‘noble’ job of balancing oil market, says UAE

FUJAIRAH: UAE Energy Minister Suhail Al-Mazrouei said on Wednesday OPEC+ was doing a noble job of balancing the oil market even if does not produce the majority of oil in the world.

“OPEC+ has sacrificed more than others but the critical element is that it is staying together,” Mazrouei said at an industry event in the emirate of Fujairah.

“I would like you to imagine the world without this group. We would be in chaos,” Mazrouei said speaking hours before a planned virtual meeting of an OPEC+ committee.

His comments echo those of Russian Deputy Prime Minister Alexander Novak who said on Monday that OPEC+ was strategically reducing oil supply and ceding market share with a long-term aim that producing countries secure enough investments and oil prices to suit producers and consumers.

Output from OPEC+, which groups OPEC and allies such as Russia, equates to 48 percent of world oil supply, according to Reuters calculations based on figures from the International Energy Agency.

Mazrouei would not comment on the outlook for oil in 2025, saying that there were many moving parts, including geopolitics.

Oil prices jumped by over a dollar on Wednesday due to rising concerns Middle East tensions could escalate, potentially disrupting crude output from the region, following Iran’s biggest military blow against Israel to date. Brent crude stood at $74.56 a barrel at 6:30 a.m. Saudi time.

“I would refer you to the OPEC outlook because I stopped personally commenting on the short term,” the minister said.

“I think there are so many moving parts of the world, including geopolitics, that put us all on pause when we predict the future. We hope for peace, we hope for prosperity, but facts of life are facts of life.”

Ministers from OPEC+ will hold an online joint ministerial monitoring committee meeting on Wednesday at 3:00 p.m. Saudi time.

Oil prices have fallen in 2024, with Brent crude last month slipping below $70 a barrel for the first time since 2021, pressured by expectations of weaker global demand and rising supply outside OPEC+.

OPEC+ has cut output by around 5.7 percent of global demand in a series of steps agreed since late 2022.

The JMMC meeting on Wednesday is unlikely to recommend any changes to a current plan to start unwinding some cuts from December, five sources from the producer group told Reuters.

In September, OPEC+ agreed to delay a planned gradual oil output increase to December from October, saying it could further pause or reverse the hikes if needed. 


Oil Updates – prices jump more than $1 as Middle East tensions escalate

Oil Updates – prices jump more than $1 as Middle East tensions escalate
Updated 02 October 2024
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Oil Updates – prices jump more than $1 as Middle East tensions escalate

Oil Updates – prices jump more than $1 as Middle East tensions escalate

SINGAPORE: Oil prices jumped by over a dollar on Wednesday due to rising concerns Middle East tensions could escalate, potentially disrupting crude output from the region, following Iran’s biggest ever military blow against Israel.

Brent futures leapt $1.08, or 1.47 percent, to $74.64 a barrel, while US West Texas Intermediate crude spiked $1.12, or 1.6 percent, to $70.95 at 9:50 a.m. Saudi time. 

During trading on Tuesday, both crude benchmarks surged more than 5 percent.

Oil markets were largely focusing on the narrative of a weakening global economic outlook denting demand for fuel, said Priyanka Sachdeva, senior market analyst at Phillip Nova.

“Still, the scale quickly turned toward fears of oil supply disruptions in the Middle East after Iran fired ballistic missiles at Israel,” Sachdeva said.

Iran said early on Wednesday that its missile attack on Israel was over barring further provocation, while Israel and the US promised to retaliate against Tehran as fears of a wider war intensified.

Tehran said any Israeli response to the attack, which Israel said involved more than 180 ballistic missiles, would be met with “vast destruction.”

The UN Security Council scheduled a meeting about the Middle East for Wednesday, and the EU called for an immediate ceasefire.

The direct involvement of Iran, an OPEC member, raises the prospect of disruptions to oil supplies, ANZ analysts said in a note, adding that the country’s oil output rose to a six-year high of 3.7 million barrels per day in August.

“A major escalation by Iran risks bringing the US into the war,” Capital Economics said in a note. “Iran accounts for about 4 percent of global oil output, but an important consideration will be whether Saudi Arabia increases production if Iranian supplies were disrupted.”

A panel of ministers from the OPEC and allies, together called OPEC+, meets later on Wednesday to review the market, with no policy changes expected. From December, OPEC+, which includes Russia, is set to raise output by 180,000 barrels per day (bpd) monthly.

“Any suggestion that production hikes will proceed could offset concerns of supply disruptions in the Middle East,” ANZ’s note said.

US stockpile data was mixed: crude oil and distillate inventories fell last week while gasoline inventories rose, market sources said, citing American Petroleum Institute figures on Tuesday.

Oil investors will also be closely watching Friday’s US jobless claims data as it is expected to influence projections of the Federal Reserve’s monetary easing, which may aid long-term oil demand by stimulating overall economic activity, Phillip Nova’s Sachdeva said.