Opec may not need to extend a six-month agreement with non-Opec members to pare oil output because demand is rising and compliance with cuts is high, the Saudi oil minister said on Monday.
Opec agreed in November to trim output by some 1.2 million barrels per day (bpd) starting this month and some members including Saudi Arabia and Kuwait have pledged to outdo their commitments and pare some more barrels, helping prices to rally.
Non-Opec members led by Russia have also agreed to cut output by 558,000 bpd, the first such collaboration between Opec and non-Opec countries since 2001.
“We don’t think it’s necessary, given the level of compliance we have seen and given the expectations of demand,” said Khalid Al Falih at the World Future Energy Summit in Abu Dhabi.
“My expectation, and I believe it’s been corroborated by the IEA, is that the rebalancing which started slowly in 2016 will have its full impact by the first half. Of course there are many variables that can come into play between now and June and at that time we will be able to reassess. “
International benchmark Brent was down 0.2 per cent at $55.36 per barrel in London afternoon trading. “Once we get close to the 5-year average of global stocks and inventories, we will basically lift our foot from brakes so to speak and let the market do its thing,” said Mr Falih.
Opec will meet in May to discuss production plans but a monitoring committee that is charged with developing a mechanism to ensure compliance with Opec and non-Opec cuts will convene on January 22 at Opec headquarters in Vienna.
“All players have indicated their willingness to extend if necessary,” said Mr Al Falih. “Demand is going to pick up in the summer and we want to make sure the markets continue to be supplied well, we don’t want to create a shortage or a squeeze, so the extension will only happen if there’s a need and if there’s a a need we will do it. “
Saudi Arabia is currently pumping less than 10 million bpd, exceeding its commitment for cuts.
Opec in November ended a two-year policy of protecting its market share rather than propping up prices, which have lost half of their value since mid-2014 amid a supply glut.
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Origin
Dan Brown
Doubleday
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
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Sustainable Development Goals
1. End poverty in all its forms everywhere
2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture
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5. Achieve gender equality and empower all women and girls
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8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
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10. Reduce inequality within and among countries
11. Make cities and human settlements inclusive, safe, resilient and sustainable
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13. Take urgent action to combat climate change and its effects
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Classification from Tour de France after Stage 17
1. Chris Froome (Britain / Team Sky) 73:27:26"
2. Rigoberto Uran (Colombia / Cannondale-Drapac) 27"
3. Romain Bardet (France / AG2R La Mondiale)
4. Fabio Aru (Italy / Astana Pro Team) 53"
5. Mikel Landa (Spain / Team Sky) 1:24"
The bio
Date of Birth: April 25, 1993
Place of Birth: Dubai, UAE
Marital Status: Single
School: Al Sufouh in Jumeirah, Dubai
University: Emirates Airline National Cadet Programme and Hamdan University
Job Title: Pilot, First Officer
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Killing of Qassem Suleimani
Match info
Huddersfield Town 0
Chelsea 3
Kante (34'), Jorginho (45' pen), Pedro (80')
Killing of Qassem Suleimani
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