Iran, whose economy is increasingly being squeezed by the United States, has threatened to veto any decisions by Opec that will hurt its national interests at the organisation’s coming sub-committee meeting in Algiers.
Opec is set to convene in the Algerian capital on September 24 to discuss the dynamics of the oil markets. Oil prices have risen close to $80 per barrel this year, supported by earlier production cuts as well as in anticipation of US sanctions against Iran.
Tehran is opposed to Opec and sovereign producers outside the group led by Russia deciding to increase production – which could lower oil prices – and possibly allocate output quotas at a time when its own capacity to export is restricted by sanctions.
"Iran will veto any decision that threatens our national interests. Without a moment of doubt. Veto means that the decision is not legal. If vetoed, that decision is illegal," Iranian Petroleum Minister Bijan Zanganeh told state petroleum news agency Shana.
Mr Zanganeh, who will not be attending the meeting in Algiers, where Iran will be represented by its Opec governor, called out the group and its allies for allowing political interference from the Americans.
US President Donald Trump has repeatedly accused Opec of manipulating prices to remain high this year. On Thursday, he accused the group again of nudging prices ahead of its meeting in Algeria.
After a three-year slump, the price of Brent has averaged a comfortable $72/b for much of the year, after Opec and allies managed to successfully draw down five-year high inventory levels that had led to a glut in the oil markets.
Following increased US pressure, the group reversed an earlier pact to slash approximately 1.8 million barrels per day and had begun to substantially add supply back to the market.
Saudi Arabia and allies have ramped production by almost 350,000 bpd since January.
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Read more:
Sri Lanka stops import of Iranian oil ahead of sanctions
Trade wars and falling Iran exports to impact supply and demand, says Opec
India's Iran oil purchases to fade ahead of US sanctions
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On Tuesday, Opec secretary general Mohammed Barkindo told an audience of energy traders in the UAE's northern emirate of Fujairah that Iran, a founding member of Opec, was an important part of the organisation.
“When you have major producers facing supply challenges it’s a concern not only for Opec but also for the consuming countries,” he told the audience. “We will continue to work with all parties, Iran is a very important player and exporter and so are other countries,” he added.
Iran has seen buyers slash imports in anticipation of US snapback sanctions targeting its energy industry, which will come into force on November 4. Analysts are predicting Iranian exports may fall by as much as 1.5 million bpd.
Countries that had depended on Iranian imports for refining such as Japan have loaded their last cargoes, while South Korean and Indian refiners have already cut back. On Tuesday, Sri Lanka's Petroleum Resources Development minister Arjuna Ranatunga said the country had completely halted its oil imports from Iran. The Islamic Republic had been almost the sole supplier for crude to the South Asian state, which was planning to upgrade its sole refinery with Iranian help.
The retrenchment of Iranian oil buyers further threatens the country's ability to collect foreign exchange which in turn impacts its purchasing power and trading position. The Iranian rial has lost more than 80 per cent of its value against US dollar since the start of the year due to mounting US pressure and re-imposition of American sanctions.
Mr Zanganeh declined to comment on how Iran, which continues to ship crude to select buyers using its own tanker facilities was getting its oil to market.
“I [will] not reveal the client, the destination, the countries, how [we] transfer the oil to the tanker, how to solve the insurance problem. I do not know anything,” he said.
UAE medallists at Asian Games 2023
Gold
Magomedomar Magomedomarov – Judo – Men’s +100kg
Khaled Al Shehi – Jiu-jitsu – Men’s -62kg
Faisal Al Ketbi – Jiu-jitsu – Men’s -85kg
Asma Al Hosani – Jiu-jitsu – Women’s -52kg
Shamma Al Kalbani – Jiu-jitsu – Women’s -63kg
Silver
Omar Al Marzooqi – Equestrian – Individual showjumping
Bishrelt Khorloodoi – Judo – Women’s -52kg
Khalid Al Blooshi – Jiu-jitsu – Men’s -62kg
Mohamed Al Suwaidi – Jiu-jitsu – Men’s -69kg
Balqees Abdulla – Jiu-jitsu – Women’s -48kg
Bronze
Hawraa Alajmi – Karate – Women’s kumite -50kg
Ahmed Al Mansoori – Cycling – Men’s omnium
Abdullah Al Marri – Equestrian – Individual showjumping
Team UAE – Equestrian – Team showjumping
Dzhafar Kostoev – Judo – Men’s -100kg
Narmandakh Bayanmunkh – Judo – Men’s -66kg
Grigorian Aram – Judo – Men’s -90kg
Mahdi Al Awlaqi – Jiu-jitsu – Men’s -77kg
Saeed Al Kubaisi – Jiu-jitsu – Men’s -85kg
Shamsa Al Ameri – Jiu-jitsu – Women’s -57kg
The five pillars of Islam
Results
Stage 2:
1. Soudal–Quick-Step - 18’11”
2. EF Education – EasyPost - 1"
3. Ineos Grenadiers - 3"
General classification:
1. Lucas Plapp (AUS) Ineos Grenadiers
2. Remco Evenepoel (BEL) Soudal–Quick-Step - ST
3. Nikias Arndt (GER) Bahrain Victorious - 3"
COMPANY PROFILE
Name: Haltia.ai
Started: 2023
Co-founders: Arto Bendiken and Talal Thabet
Based: Dubai, UAE
Industry: AI
Number of employees: 41
Funding: About $1.7 million
Investors: Self, family and friends
Director: Paul Weitz
Stars: Kevin Hart
3/5 stars
ASHES FIXTURES
1st Test: Brisbane, Nov 23-27
2nd Test: Adelaide, Dec 2-6
3rd Test: Perth, Dec 14-18
4th Test: Melbourne, Dec 26-30
5th Test: Sydney, Jan 4-8
Race card
6.30pm: Handicap (TB) $68,000 (Dirt) 1,200m
7.05pm: Meydan Cup – Listed Handicap (TB) $88,000 (Turf) 2,810m
7.40pm: UAE 2000 Guineas – Group 3 (TB) $125,000 (D) 1,600m
8.15pm: Firebreak Stakes – Group 3 (TB) $130,000 (D) 1,600m
9.50pm: Meydan Classic – Conditions (TB) $$50,000 (T) 1,400m
9.25pm: Dubai Sprint – Listed Handicap (TB) $88,000 (T) 1,200m
MATCH INFO
Manchester City 6 Huddersfield Town 1
Man City: Agüero (25', 35', 75'), Jesus (31'), Silva (48'), Kongolo (84' og)
Huddersfield: Stankovic (43')
Mrs Chatterjee Vs Norway
Director: Ashima Chibber
Stars: Rani Mukerji, Anirban Bhattacharya and Jim Sarbh
Rating: 2/5
UAE SQUAD
Ali Khaseif, Mohammed Al Shamsi, Fahad Al Dhanhani, Khalid Essa, Bandar Al Ahbabi, Salem Rashid, Shaheen Abdulrahman, Khalifa Al Hammadi, Mohammed Al Attas, Walid Abbas, Hassan Al Mahrami, Mahmoud Khamis, Alhassan Saleh, Ali Salmeen, Yahia Nader, Abdullah Ramadan, Majed Hassan, Abdullah Al Naqbi, Fabio De Lima, Khalil Al Hammadi, Khalfan Mubarak, Tahnoun Al Zaabi, Muhammed Jumah, Yahya Al Ghassani, Caio Canedo, Ali Mabkhout, Sebastian Tagliabue, Zayed Al Ameri
Four reasons global stock markets are falling right now
There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:
1. Rising US interest rates
The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.
Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”
At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.
2. Stronger dollar
High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”
3. Global trade war
Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”
4. Eurozone uncertainty
Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.
Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”
The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”
The Sandman
Creators: Neil Gaiman, David Goyer, Allan Heinberg
Stars: Tom Sturridge, Boyd Holbrook, Jenna Coleman and Gwendoline Christie
Rating: 4/5
The specs
BMW M8 Competition Coupe
Engine 4.4-litre twin-turbo V8
Power 625hp at 6,000rpm
Torque 750Nm from 1,800-5,800rpm
Gearbox Eight-speed paddleshift auto
Acceleration 0-100kph in 3.2 sec
Top speed 305kph
Fuel economy, combined 10.6L / 100km
Price from Dh700,000 (estimate)
On sale Jan/Feb 2020
Company Profile
Company name: Cargoz
Date started: January 2022
Founders: Premlal Pullisserry and Lijo Antony
Based: Dubai
Number of staff: 30
Investment stage: Seed
Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)