Oil Prices Decline And Brent Barrel Records 97 $

Baghdad Oil prices fell, on Monday, from their highest levels in five weeks, with the market reaping profits following strong gains last week, amid expectations of tight supplies after the OPEC + decision to reduce production and before the European Union imposed an embargo on Russian oil.

Brent crude futures fell 81 cents, or 0.8%, to $97.11 a barrel by 0131 GMT.

While US West Texas Intermediate crude recorded $91.88 a barrel, down 76 cents, 0.8%, according to “Reuters”.

Source: National Iraqi News Agency

Oil falls as investors take profit on China demand concerns

Singapore, Oil prices fell on Monday, snapping five days of gains, as investors took profits after a report on slowing economic activity in China, the world’s biggest crude importer, re-ignited concerns about falling global fuel demand.

Brent crude futures for December settlement fell by as much as 1.1%, and was last down 85 cents, or 0.9%, at $97.07 a barrel by 05:00 GMT.

West Texas Intermediate crude for November delivery declined by as much as 1.1% and was at $91.84 a barrel, down 80 cents, or 0.9%.

Services activity in China during September contracted for the first time in four months as COVID-19 restrictions hit demand and business confidence, data showed on Saturday, Reuters reported.

The slowdown in the economy of China, the world’s second-largest oil consumer after the U.S., adds to growing concerns about a possible global recession triggered by numerous central banks raising interest rates to combat high inflation rates.

“Oil … is getting hit with the triple whammy of China’s economic weakness, U.S. monetary policy tightening and Biden administration SPR intervention,” Stephen Innes, managing director at SPI Asset Management, said in a note.

Innes was referring to the possibility of additional releases from the U.S. Strategic Petroleum Reserve next month in response to the decision last week by the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, known as OPEC+, to lower their output target by 2 million barrels per day.

Brent and WTI posted their biggest percentage gains since March after the reduction was announced.

The OPEC+ cuts, which come ahead of a European Union embargo on Russian oil, will squeeze supply in an already tight market. EU sanctions on Russian crude and oil products will take effect in December and February, respectively.

“The cut is clearly bullish,” ING analysts said in a note.

“However, there is obviously still plenty of other uncertainty in the market, including how Russian oil supply evolves due to the EU oil ban and G-7 price cap, as well as the demand outlook given the deteriorating macro picture.”

Analysts at banks and brokerages have raised their crude price forecasts and expect Brent to rise above $100 a barrel in the coming months.

Despite the promised cuts in output, Saudi Arabian state oil company Saudi Aramco has told at least five North Asian customers they will receive full contract volumes of crude oil in November, according to sources with knowledge of the matter.

That would indicate little change in the physical supply of oil at least to Asian buyers of crude from Saudi Arabia, who as OPEC’s biggest producer will assume a large portion of the announced reductions.

Source: Bahrain News Agency

Al-Mandalawi chairs an expanded meeting of the Finance Committee, in the presence of the Governor of the Central Bank of Iraq

Baghdad The First Deputy Speaker of the House of Representatives, Mohsen Al-Mandalawi, chaired an expanded meeting of the Finance Committee, in the presence of the Governor of the Central Bank, Mustafa Ghaleb to discuss several axes, the most important of which are the Central Bank’s sales file during the foreign currency sale window, the file of loans of all kinds granted by the Bank during the last period, especially the industrial and housing initiative, and the Central Bank’s policy file on increasing the capital of commercial, Islamic and private banks.

A statement by the media office said to Al-Mandalawi that the meeting witnessed a discussion of the feasibility study of the numbers of private commercial and Islamic banks, and the banks that were placed under the tutelage of the Central Bank, as well as discussions on the results achieved by the “Letters of Guarantee Platform” established by the Central Bank and the extent of the banks’ ability to apply it in the areas of work. The banking system and the supervisory role of the bank over commercial and Islamic banks with regard to the fulfillment of some lagging banks of their obligations towards their customers.”

Source: National Iraqi News Agency

Basra crude exceeds $87 a barrel

Basra crude closed with significant gains last week, with the increase in oil prices globally.

Basra Heavy crude closed in its last session yesterday, Friday, with a rise of 1.32 dollars, to reach 87.68 dollars, and recorded weekly gains of 5.1 dollars, equivalent to 6.06%.

Brent crude closed in the last session, up $3.50 to $97.92, and recorded a weekly profit of $9.96, or 11.32%.

US West Texas Intermediate crude also closed higher in the last session on Friday, by $4.19, to reach $92.64 a barrel, and recorded significant weekly profits as well, amounting to $13.15, or 16.54 percent.

Last week witnessed a rise in oil prices when the OPEC + alliance decided to reduce its production by two million barrels per day, after oil prices witnessed a gradual decline as a result of the economic recession that began to appear in Europe and America after raising interest rates in these countries to curb inflation.

Source: National Iraqi News Agency

Oil Prices Rise To Their Highest Level In Three Weeks

Baghdad Oil prices rose, today, Thursday, to their highest levels in three weeks, with the agreement / OPEC + / on the largest production cuts since the outbreak of the Covid 2020 pandemic, and also against the background of US government data that showed a decline in crude and fuel stocks last week.

Brent crude rose 13 cents, or 0.15 %, to settle at $93.53 a barrel.

Brent crude hit a session high of $93.96 a barrel, the highest since September 15.

US West Texas Intermediate crude rose 12 cents, 0.14 %, and reached 88.42 dollars a barrel during the session, the highest level since September 15.

The cut of 2 million barrels per day from OPEC + could lead to a recovery in oil prices, which fell to about $ 90 from $120 three months ago due to fears of a global economic recession, higher interest rates in the United States, and a stronger dollar.

Source: National Iraqi News Agency

Biden _ I am disappointed with the OPEC + decision and we are studying options

Baghdad US President Joe Biden described the production cut by “OPEC Plus” as “disappointing”, and indicated that he would see if he would meet with Russian President Vladimir Putin at the G-20 summit, and reiterated that his visit to Saudi Arabia was not to discuss the issue of oil prices.

Biden made brief statements to reporters at the White House, during which he described the coalition’s decision to reduce oil production by two million barrels per day as “disappointing.”

The US President continued, saying, “We are looking at alternatives that we may resort to” in order to reduce oil prices, and later added by saying: “There are many alternatives.”

When asked if he plans to meet the Russian president at the G-20 summit next month, Biden said: “We’ll see about that.”

On the impact of the “OPEC Plus” step on relations with Saudi Arabia, Biden reiterated that his visit to Jeddah “was not aimed at discussing oil-related issues” but was about the Middle East.

Source: National Iraqi News Agency

Saudi EXIM Participates in International Events to Support Saudi Non-oil Exports, Enhance Access to New Global Markets

Riyadh, Saudi Export-Import Bank (EXIM) has participated in several international events with official and competent institutions in Senegal, Indonesia and Nigeria, as part of international partnerships it holds with the aim of opening new credit scopes to support Saudi non-oil exports.

The meetings between EXIM Bank and those institutions included discussions over means to encourage and increase the volume of trade exchange between the Kingdom of Saudi Arabia and these countries.

Also, several talks were held on the possibility for the bank to contribute to financing and guaranteeing Saudi exports’ credit to international markets, in addition to discussing opportunities to sign memorandums of understanding with financial and official institutions in these countries to serve the export sector in the Kingdom of Saudi Arabia.

The EXIM Bank participated in the Joint Saudi-Senegalese Committee meetings in Dakar, which were held on the sidelines of the third session of the committee that was headed by Saudi Minister of Investment Eng. Khalid Al-Faleh and saw the participation of more than 120 leaders of the private sectors in the two countries.

These meetings aimed at enhancing joint action, taking relations to new scopes and enhancing economic partnership between the two countries and expanding them, in addition to encouraging mutual investments and enhancing trade exchange between the Kingdom of Saudi Arabia and Senegal.

Meanwhile, EXIM Bank also participated in the Saudi-Indonesia Commercial Mission and the Saudi-Indonesian Business Forum in Jakarta.

The EXIM Bank submitted a work paper about its finance and credit services offered to both importers and exporters of national services and goods and the level of its contribution to enhancing the growth of Saudi non-oil exports and enabling their access to global markets, including Indonesia.

It also held sidelines meetings with several Indonesian institutions to review prospects of cooperation and increase commercial benefits between the two countries.

As part of its tour, the EXIM Bank also participated in the Big5 Exhibition that was held in Lagos, Nigeria, with the participation of more than 2,000 representatives of government institutions and commercial factories from 150 countries that are interested in the construction sector.

Source: Saudi Press Agency

Lebanon, Israel Close to Maritime Gas Deal

Lebanon and Israel appear close to completing a maritime deal that would permit offshore natural gas exploration and potentially defuse a historic conflict between the Jewish state and the Iran-backed Hezbollah militia, Lebanon’s powerbroker. The Qana natural gas field in the eastern Mediterranean has long been disputed by Israel and Lebanon, which have been technically at war for decades.

The two countries have been locked in a maritime border dispute, in part, over coastal drilling rights in the Mediterranean Sea’s potentially hydrocarbon-rich waters. Both have claimed about 860 square kilometers there as being within their exclusive economic zones.

Elias Bou Saab – Lebanon’s deputy speaker of parliament and lead envoy to the U.S., mediated indirect negotiations. He said the proposed U.S.-brokered deal was produced by thinking — as he put it — “outside of the box.” Israel’s high-level security cabinet is expected to discuss the terms Thursday.

Under the deal, Lebanon would have sovereignty over the area north of Line 23 on the sea map, including the Qana gas field, while Israel will remain in control of the Karish gas field. Observers believe that a foreign company operating under Lebanese license would produce natural gas at Qana, with Israel receiving a partial share of the revenues.

Although not confirmed, Lebanese officials have suggested that the French company TotalEnergies SE could be involved.

Israel’s prime minister, Yair Lapid, initially welcomed the draft agreement. Even arch foe Hezbollah, Lebanon’s powerful armed militia and political party backed by Iran, has expressed cautious optimism that a deal could be secured.

But negotiations in the final hours have been delicate and doubts about the economic and political benefits persist.

Lebanese analyst Dania Koleilat Khatib, an affiliated scholar with Stanford University’s Hoover Institute, told VOA she sees the demarcation as having more value as a way to pressure the Lebanese political elite to resolve their differences than economic benefit at this time.

“Once you do the demarcation, you would need a time of agreement to make sure that this is like a de-confliction,” she said. “So, there would not be any conflict, any clash. I don’t think at this current time it has much of an economic value. First, they need to see if there are proven reserves. After that they start the extraction, so you won’t have the gas before a few years. Once there is gas, and the political class want things to move, there will be more pressure from outside to find a solution, like to elect a president, elect a government, do reforms.”

Marc Ayoub, an associate fellow at the American University of Beirut’s Issam Fares Institute, told the French news agency AFP that “if commercially viable reservoirs are in fact found,” it could take five to six years to extract gas.

Although Hezbollah leader Hassan Nasrallah has threatened several times to hit Israeli drilling operations, alleging it was infringing on Lebanon’s maritime rights, Khatib and other analysts say Hezbollah doesn’t want a war with Israel because it could ill-afford to retaliate.

Nizar Abdel Kader, a retired Lebanese Army Brigadier General, told the online publication Breaking Defense that if Israel launches a full-scale war on Hezbollah’s areas of control in Lebanon, there will be extensive destruction, which will likely cause huge anger within the Shiite community against Hezbollah and Iran.

Source: Voice of America

KREMLIN SAYS OPEC+ DECISION TO CUT OIL OUTPUT IS AIMED AT MARKET STABILIZATION

The decision of the OPEC+ group of leading oil producers to reduce output by 2 million barrels per day is aimed at market stabilization, a Kremlin spokesman said on Thursday.

The Saudi Arabia-led OPEC+ cartel at a Vienna meeting on Wednesday ignored pleas from the White House to keep oil flowing and agreed the cut, its deepest since the 2020 COVID-19 pandemic. 

Source: National News Agency

Oil prices stabilize at their highest level in 3 weeks

Washington, Oil prices stabilized near three-week highs after Organization of the Petroleum Exporting Countries (OPEC) agreed to further tighten global crude supply with a deal to slash production by about 2 million barrel per day, the largest reduction since 2020.

Brent crude futures for December settlement edged down 8 cents to $93.29 per barrel by 0656 GMT after settling 1.7% higher in the previous session, Reuters reported.

U.S. West Texas Intermediate (WTI) crude futures for November delivery slid 15 cents to $87.61 per barrel, building on a 1.4% rise on Tuesday.

The agreement between the Organization of Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+, comes ahead of a European Union embargo on Russian oil and would squeeze supplies in an already tight market, adding to inflation.

“This latest action from OPEC+ suggests that there is upside to our current full year 2023 forecast of $97/bbl,” Internationale Nederlanden Groep (ING) analysts said in a note.

However, given that production at some of the OPEC+ countries are below target levels, the actual cut would be smaller than the 2 million barrel per day reduction agreed to at the meeting.

Saudi Energy Minister Abdulaziz bin Salman said the real supply cut would be about 1 million to 1.1 million bpd, and they were in response to rising interest rates in the West and a weakening global economy.

The administration of U.S. President Joe Biden has criticized the deal as being shortsighted. The White House said Biden would continue to assess whether to release further strategic oil stocks to lower prices.

The White House said it would consult with Congress on additional paths to reduce OPEC and its allies’ control over energy prices in an apparent reference to legislation that could expose members of the group to antitrust lawsuits.

“The final market impact would depend on the duration of the agreement, as OPEC+ decided to extend its Declaration of Cooperation until the end of 2023,” Citi analysts said in a note, adding that the supply cuts will keep global inventories low for longer and tighten markets in 2023.

More than half of the 1 million bps supply cut is expected to come from world’s top exporter Saudi Arabia, analysts at RBC Capital said.

A draw in U.S. oil stockpiles last week also supported prices. Crude inventories dropped by 1.4 million barrels in the week ended September 30 to 429.2 million barrels, the Energy Information Administration said.

Source: Bahrain News Agency

Saudi, Bahraini Interior Ministers Chair 2nd Meeting of Security and Military Coordination Committee

Riyadh, Prince Abdulaziz bin Saud bin Naif bin Abdulaziz, Minister of Interior and General Shaikh Rashid bin Abdulla Al Khalifa, Minister of Interior of the Kingdom of Bahrain, chaired the second meeting of the Security and Military Coordination Committee which is affiliated with the Saudi-Bahraini Coordination Council.

The meeting was held at the Ministry of Interior’s office here today.

At the beginning of the meeting, Prince Abdulaziz bin Saud welcomed the Bahraini Minister of Interior and the accompanying delegation, and conveyed to them the greetings of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, and their wishes the success of the meeting and its expecting fruitful outcome that may contribute to preserving and strengthening the security of the two fraternal countries.

Prince Abdulaziz bin Saud bin Naif bin Abdulaziz also hailed the well-established historical relations, which have become a model for strategic cooperation in the field of employing resources and capabilities in order to maintain the common interests of the two fraternal countries, stressing that the meeting comes as a continuation of strengthening cooperation and coordination in security areas of common interest.

For his part, General Sheikh Rashid bin Abdullah Al Khalifa delivered a speech in which he stressed that the historical relations between the two countries contribute to strengthening their security, citing the distinguished relations between the ministries of the interior in the two countries, which are witnessing tangible development in various security fields.

The meeting discussed topics on the agenda, and issued a number of necessary recommendations and initiatives.

The meeting also witnessed the signing of a cooperation agreement in the security field between the government of the Kingdom of Saudi Arabia and the government of the Kingdom of Bahrain.

Source: Saudi Press Agency