Above, an Iranian worker walks on pipelines at an oil facility in Khark Island. AFP
Above, an Iranian worker walks on pipelines at an oil facility in Khark Island. AFP

Hopes dim for Algiers agreement to limit oil production



Hopes are fading for a deal to limit oil supply levels at a much-anticipated meeting of oil-producing countries this week in Algeria, in spite of signs that Saudi Arabia and Iran may be edging towards an agreement on production levels.

Opec members, together with the non-Opec member Russia, will this week hold informal talks on oil production levels at the International Energy Forum in Algeria, with many producers desperate for an agreement to cut overall production to raise prices.

However a source familiar with Saudi oil thinking said that the kingdom regarded the talks as “consultations”, and not a decision-making meeting.

The comments came after it emerged that Saudi Arabia had offered to reduce its output if Iran keeps its own output at current levels of about 3.6 million barrels per day, as part of discussions with Tehran in Vienna earlier this month. Such signals have proved of little comfort to the market, with most analysts believing the talks in Algeria will produce no new agreement.

“We are convinced that [this] week’s meeting will end without any result, and warn that prices could well correct in view of the high net long positioning of financial investors,” Carsten Fritsch, an analyst with Commerzbank, said in a research note.

Pessimism was compounded by news that the United States was on track to add the highest number of rigs in a quarter since prices began falling two years ago. Brent crude futures fell 3.69 per cent to $45.89 per barrel on Friday, while West Texas Intermediate futures fell 3.97 per cent to $44.48.

Saudi Arabia’s offer to cut production, which has so far not been accepted or rejected by Iran, is the kingdom’s first of its kind since it led Opec to increase production in a move to defend the group’s market share against higher-cost suppliers in the US.

The new Saudi offer has led some to believe that a comprehensive deal on production levels may be agreed at Opec’s next scheduled formal meeting in Vienna in November.

The Opec secretary general Mohammed Barkindo said last week that Iran had assured him that the country was committed to building a consensus on stabilising the oil market between Opec and non-member countries.

Iraq’s Opec governor Falah Alamri, meanwhile, said that oil market circumstances are now more favourable for Opec and other producers to reach a deal to support the market than was the case ahead of similar summit in Doha in April.

That summit imploded after Iran decided at the last minute not to attend, prompting Saudi Arabia to insist that no agreement on production levels was possible without Iranian buy- in.

“This time I think a little bit different [than in Doha] because circumstances are a little bit better, helping [producers] to reach a deal,” Mr Alamri said, when asked about the prospect of an agreement in Algeria.

Brent crude prices have risen by about 25 per cent since the start of the year, but still remain 60 per cent below their peak in June 2014.

The Algerian energy minister Noureddine Bouterfa said Opec – and oil-producing countries outside the group – must find a way to cut crude supplies by 1 million barrels per day to rebalance markets and stabilise prices.

“The question is at what level we would freeze or reduce output – we need to find the good compromise in order not to destabilise the market,” Mr Bouterfa said. “It’s necessary at least to reduce by 1 million barrels a day to rebalance the market. Will we get there? We are working for that.”

jeverington@thenational.ae

* with agencies

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Why does a queen bee feast only on royal jelly?

Some facts about bees:

The queen bee eats only royal jelly, an extraordinary food created by worker bees so she lives much longer

The life cycle of a worker bee is from 40-60 days

A queen bee lives for 3-5 years

This allows her to lay millions of eggs and allows the continuity of the bee colony

About 20,000 honey bees and one queen populate each hive

Honey is packed with vital vitamins, minerals, enzymes, water and anti-oxidants.

Apart from honey, five other products are royal jelly, the special food bees feed their queen 

Pollen is their protein source, a super food that is nutritious, rich in amino acids

Beewax is used to construct the combs. Due to its anti-fungal, anti-bacterial elements, it is used in skin treatments

Propolis, a resin-like material produced by bees is used to make hives. It has natural antibiotic qualities so works to sterilize hive,  protects from disease, keeps their home free from germs. Also used to treat sores, infection, warts

Bee venom is used by bees to protect themselves. Has anti-inflammatory properties, sometimes used to relieve conditions such as rheumatoid arthritis, nerve and muscle pain

Honey, royal jelly, pollen have health enhancing qualities

The other three products are used for therapeutic purposes

Is beekeeping dangerous?

As long as you deal with bees gently, you will be safe, says Mohammed Al Najeh, who has worked with bees since he was a boy.

“The biggest mistake people make is they panic when they see a bee. They are small but smart creatures. If you move your hand quickly to hit the bees, this is an aggressive action and bees will defend themselves. They can sense the adrenalin in our body. But if we are calm, they are move away.”

 

 

Schedule:

Friday, January 12: Six fourball matches
Saturday, January 13: Six foursome (alternate shot) matches
Sunday, January 14: 12 singles

The five pillars of Islam

1. Fasting

2. Prayer

3. Hajj

4. Shahada

5. Zakat 

MATCH INFO

Pakistan 106-8 (20 ovs)

Iftikhar 45, Richardson 3-18

Australia 109-0 (11.5 ovs)

Warner 48 no, Finch 52 no

Australia win series 2-0

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Our Time Has Come
Alyssa Ayres, Oxford University Press

Thank You for Banking with Us

Director: Laila Abbas

Starring: Yasmine Al Massri, Clara Khoury, Kamel El Basha, Ashraf Barhoum

Rating: 4/5

Abu Dhabi traffic facts

Drivers in Abu Dhabi spend 10 per cent longer in congested conditions than they would on a free-flowing road

The highest volume of traffic on the roads is found between 7am and 8am on a Sunday.

Travelling before 7am on a Sunday could save up to four hours per year on a 30-minute commute.

The day was the least congestion in Abu Dhabi in 2019 was Tuesday, August 13.

The highest levels of traffic were found on Sunday, November 10.

Drivers in Abu Dhabi lost 41 hours spent in traffic jams in rush hour during 2019

 

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