Opec courts Russia ahead of crunch meeting



Just days before its next meeting, OPEC has resumed courting Russia, the top crude producer outside the group supplying 40 per cent of the world's oil. Closer ties could be part of OPEC's next tactical move to confront falling oil prices after a series of drastic export cuts that have stabilised prices below US$50 a barrel. "The ground is ready in OPEC to accept Russia as a new member but, of course, countries request membership by evaluating and considering their own interests," said Gholamhossein Nozari, the Iranian oil minister, according to the semi-official Fars News Agency. His remarks followed a recent call by Jose Botelho de Vasconcelos, the OPEC president, for oil exporters outside the organisation to join OPEC's output curbs to stabilise the world market. Currently at 9.8 million barrels per day (bpd) of crude, according to the Vienna-based JBC Energy, Russia's oil production sometimes tops that of Saudi Arabia. It has done so since the OPEC leader started to bear the brunt of the group's 4.2 million bpd of output cuts announced since September and reduced its production to below 8 million bpd. A partnership with Russia could work even if the country decides not to seek full membership of the 49-year-old organisation. Russia has a well-tested means of controlling its oil exports, through the duties Moscow imposes on oil leaving the country. Following a reduction in that tax early this year, Russia has recently exported oil at a higher rate than it averaged last year, undermining OPEC's efforts to mop up excess oil supplies on the world market. Russian oil exports of between 5.4 million and 5.5 million bpd in the first two months of this year were about 2.7 per cent higher than last year's average, according to government figures. "OPEC members will be unhappy that exports have risen," said Chris Weafer, the chief strategist of Moscow-based UralSib Financial. "With domestic demand falling as the economy slows, the fear is that Russia may add the extra barrels to the export market. OPEC will now want a very definite commitment on production cuts, how much and when." The rise in Russian oil exports complicates the already tough deliberation the group faces at its meeting in Vienna on Sunday. With oil prices up 32 per cent from their December low, some OPEC delegates have argued against a further reduction in quotas until full compliance with previous cuts has been reached. But today, a member of Kuwait's Supreme Petroleum Council called for OPEC to cut output by another 1 million bpd to help push crude to a "fair price" of $75 a barrel. Chakib Khelil, Algeria's oil minister, said the market was expecting a cut. "If we do not reduce, prices would fall," he said. In past periods of low oil prices, OPEC has sometimes made lowering its own output conditional on non-OPEC oil producers cutting exports. But with Russia, the group has been as intent on dangling carrots in recent months as applying sticks. Russia was not only invited to attend the past three official OPEC meetings, but was also offered voting rights. tcarlisle@thenaitonal.ae

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US households add $601bn of debt in 2019

American households borrowed another $601 billion (Dh2.2bn) in 2019, the largest yearly gain since 2007, just before the global financial crisis, according to February data from the New York Federal Reserve Bank.

Fuelled by rising mortgage debt as homebuyers continued to take advantage of low interest rates, the increase last year brought total household debt to a record high, surpassing the previous peak reached in 2008 just before the market crash, according to the report.

Following the 22nd straight quarter of growth, American household debt swelled to $14.15 trillion by the end of 2019, the New York Fed said in its quarterly report.

In the final three months of the year, new home loans jumped to their highest volume since the fourth quarter of 2005, while credit cards and auto loans also added to the increase.

The bad debt load is taking its toll on some households, and the New York Fed warned that more and more credit card borrowers — particularly young people — were falling behind on their payments.

"Younger borrowers, who are disproportionately likely to have credit cards and student loans as their primary form of debt, struggle more than others with on-time repayment," New York Fed researchers said.

Quick facts on cancer
  • Cancer is the second-leading cause of death worldwide, after cardiovascular diseases 
  •  About one in five men and one in six women will develop cancer in their lifetime 
  • By 2040, global cancer cases are on track to reach 30 million 
  • 70 per cent of cancer deaths occur in low and middle-income countries 
  • This rate is expected to increase to 75 per cent by 2030 
  • At least one third of common cancers are preventable 
  • Genetic mutations play a role in 5 per cent to 10 per cent of cancers 
  • Up to 3.7 million lives could be saved annually by implementing the right health
    strategies 
  • The total annual economic cost of cancer is $1.16 trillion

   

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The Perfect Couple

Starring: Nicole Kidman, Liev Schreiber, Jack Reynor

Creator: Jenna Lamia

Rating: 3/5