Energy prices rebalancing after OPEC deal: Qatar

April 28, 2017

Istanbul, Apr 28: Global energy markets are heading to a rebalancing in the next few years after oil prices fell to historic lows due to oversupply, Qatar’s Energy and Industry Minister Mohammed Saleh Abdullah Al-Sada said on Thursday, praising members of the Organization of Petroleum Exporting Countries (OPEC) for their adherence to a “successful” November deal to cut production.

Energy

He told the Atlantic Council summit in Istanbul that a decade of high oil prices had led to a dangerous oversupply and subsequent price falls.

“The consequence was an unprecedented shrinkage in investment and if that trend continues, it will lead to new instability — a price spiral and a tightening of the market which is not in anyone’s interest,” he warned.

OPEC members agreed in November to cut production by 1.2 million barrels per day for six months beginning from the start of the year in a bid to shore up prices.

The move was also partly matched by non-OPEC producers led by Russia and the critical question is whether OPEC will take new action at its next meeting on May 25 or not.

“A balancing was bound to happen. What we want to do is to hasten that process of balancing,” said the minister.

He hailed the fact that compliance to the November agreement has been almost 98 percent including all participants, and had sometimes been over 100 percent among OPEC members, meaning they had exceeded the output cuts demanded.

Compliance has historically been a problem within OPEC and Al-Sada said that adherence to past agreements had been on average only 70 percent. “The agreement was very successful and it helped the process of rebalancing,” he said.

“It (the market) is picking up. We hope to get a more accelerated balancing process in the second half of the year.”

Al-Sada said the rebalancing was coming but would still take time.

“The market today is well supplied and will be for the next years. The upturn is definitely going to come and the market will balance, yes, not in the coming two years but in four or five.”

Oil prices currently hover just around $50 per barrel after shedding around half of their value since mid-2014.

Al-Sada denied that low oil prices were of benefit to anyone.

OPEC Secretary-General Mohammad Barkindo, meanwhile, said that a global oil overhang was declining, but he added that stocks remained high and needed to fall further. OPEC is discussing extending its cuts into the second half of the year, but the group has an uphill task.

Oil prices fell on Thursday after news that two key oilfields in Libya had restarted, pumping crude for export into an already bloated market.

Benchmark Brent crude fell $1.14 a barrel to a low of $50.68 before recovering slightly to trade around $50.85 by 1220 GMT. The contract has fallen more than 10 percent from this month’s peak.

US light crude oil hit a low of $48.51, down $1.11 a barrel on the day.

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News Network
April 14,2024

Qatar and Kuwait have banned any use of their airspace and air bases for attacks against Iran amid heightened tensions between Iran and the Israeli regime following an Israeli attack early this month on an Iranian diplomatic mission in Syria.

Reports on Saturday indicated that both Qatar and Kuwait had issued directives to the United States stressing that the US military will not be allowed to use air bases in the two countries for carrying out any potential airstrikes on Iran.

Qatar and Kuwait have also indicated that their airspace will not be available for any military action against Iran.

The US has military aircraft at the Ali Al Salem Air Base and Ahmed Al Jaber Air Base in Kuwait. The Al Udeid Air Base in Qatar is also the largest US air base in the West Asia region.

The directives issued by Iran’s two Arab neighbors come amid reports showing that Iran is preparing to respond to an Israeli airstrike that killed two of its senior military commanders in its consulate in the Syrian capital Damascus on April 1.

Washington has urged Iran to deescalate while saying that it will defend Israel in case it is attacked.

Iran, which has no direct relations with the US, has called on regional Arab countries to advise the US not to interfere if Israel is attacked.

Countries have been wary of a major confrontation in the region more than six months into an Israeli onslaught on the Gaza Strip.

Reports show they have already limited the ability of the US to use their airspace and air bases for attacks on resistance groups that are allied with Iran and have been attacking Israeli and US interests in the region since the start of the Israeli aggression on Gaza.

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News Network
April 13,2024

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New Delhi, May 13: Warmongering Israel is bracing for a potential direct attack by Iran as warnings grow of retaliation for the provocative killing last week of a senior officer in Iran's embassy in Damascus. US and other intelligence assessments have said the retaliation could come as soon as Sunday. The unprecedented attack could trigger an all-out regional war.

US President Joe Biden has also warned Israel that he expects a strike from Iran soon, but has warned the clerical state not to attack.

"I don't want to get into secure information but my expectation is sooner than later," Biden told reporters after an event.

Asked what his message was to Iran on striking Israel, Biden said, "Don't."

An assault from Iranian soil has emerged as one of the main scenarios expected by the Jewish state and its allies, according to reports by the Wall Street Journal and Bloomberg. A bombardment with drones and precision missiles could come within the next 24 hours, the reports said citing people familiar with the matter.

Any Iranian attack on Israel would likely be a combination of missiles and drones, based on current capabilities outlined in a new Defense Intelligence Agency Worldwide Threat assessment released late Thursday.

The regime "has a substantial inventory of ballistic and cruise missiles capable of striking targets as far as 2,000 kilometers from its borders," the agency said.

The US has rushed additional military assets to protect Israel and American forces in the region. The country has moved two Navy destroyers to the Eastern Mediterranean Sea, according to a Navy official. One is the USS Carney, which was recently in the Red Sea performing air defence against Houthi drones and anti-ship missiles.

America has also doubled down its diplomatic efforts to rein in hostilities in the region, which has been on the edge since Israel launched a mega offensive on Palestine to destroy the militant organisation Hamas.

US officials have been working to send messages to Iran, including through an established Swiss channel, while talking to Israel, Saudi Arabia, Qatar, and other governments. Biden has also sent the head of US Central Command, General Michael Kurilla, to Israel for urgent talks on the threat from Iran.

The 'shadow war' between the two Middle Eastern countries heated up when an Israeli airstrike hit the Iran consulate in Damascus, killing seven people, including two generals. Iran immediately issued a statement saying that it is prepared for war and will deliver a "slap" to Israel.

Israel has been on alert since then, canceling home leave for combat troops, calling up reserves, and bolstering air defenses. Its military scrambled navigational signals over Tel Aviv on Thursday to disrupt GPS-navigated drones or missiles that might be fired at the country.

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News Network
April 23,2024

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The genocidal Israeli war on the Gaza Strip has entered its 200th day, with occupation forces killing more Palestinians in defiance of widespread international outcry to end the carnage.

The aggression marked its 200th day on Tuesday with no end in sight to the Israeli war that has so far killed a shocking number of Palestinians and led to a humanitarian crisis in the besieged territory.

The Gaza Health Ministry said Israeli forces have committed three "massacres" over the past 24 hours, killing at least 32 Palestinians and wounding 59 others.

The numbers, it added, bring the Palestinian death toll to more than 34,183, with at least 77,143 injured and an estimated 7,000 missing and presumed dead since early October.

More than 14,500 children and 9,500 women are among those killed, making up over 70 percent of the victims, according to health officials.

Israel waged its brutal US-backed war on the Gaza Strip on October 7 after the Palestinian Hamas resistance group carried out Operation Al-Aqsa Storm against the usurping entity in retaliation for its intensified atrocities against the Palestinian people.

Israel has been carrying out war crimes in Gaza by deliberately starving people and forcing their evacuation, as well as targeting hospitals and schools sheltering displaced Palestinians.

Despite all these atrocities, the regime has failed to achieve its declared objectives of “destroying Hamas” and finding Israeli captives held in Gaza.

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