Thursday’s historic agreement by Saudi Arabia, Russia and other major crude producers to extend supply caps for another year may prompt directors to spend more on drilling.
That is because the producer group’s restraint has meant higher prices for US shale drillers, who have not been shy about hiring more rigs or flooding global markets with more cargoes.
After climbing out of a crater dug by the worst oil-market collapse in a generation, North American explorers probably will boost spending by 20 per cent next year, according to an Evercore ISI survey of industry budget trends. That would follow an estimated 41 per cent jump in 2017.
“The North American E&P industry is very itchy to spend more capital dollars,” said James West, an Evercore analyst. “They’re in the board rooms right now talking about budgets and Opec is saying what they’re going to do through 2018.”
The nine-month extension was strengthened with the inclusion of Nigeria and Libya, two Opec members originally exempted from the curbs. Oil stockpiles in developed countries are still 150 million barrels above a five-year average, leaving Opec and its allies with more work to do, Saudi Arabia’s energy minister Khalid Al Falih said Thursday.
Saudi Arabia and Russia displayed unprecedented unity in Vienna on Thursday with Mr Al Falih saying he and his Russian counterpart Alexander Novak stood “shoulder to shoulder”. The show of friendship sought to dispel fears flagged by Wall Street analysts about Moscow’s reluctance to keep its side of the bargain in the absence of an exit strategy for the deal.
“[Thursday's] meeting established a very firm confidence in the market that the cooperation between Saudi Arabia and Russia specifically and their agreement is no fly-by-night and it is here to stay,” said Bjarne Schieldrop, chief commodities analyst at SEB in Oslo.
“The downside risk to oil prices was taken away last evening and a sub-$50 risk for Brent is now gone unless we have a global recession.”
Benchmark Brent was at US63.61 per barrel at the close on Friday and wti AT $5825.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The Sky Is Pink
Director: Shonali Bose
Cast: Priyanka Chopra Jonas, Farhan Akhtar, Zaira Wasim, Rohit Saraf
Three stars
What is dialysis?
Dialysis is a way of cleaning your blood when your kidneys fail and can no longer do the job.
It gets rid of your body's wastes, extra salt and water, and helps to control your blood pressure. The main cause of kidney failure is diabetes and hypertension.
There are two kinds of dialysis — haemodialysis and peritoneal.
In haemodialysis, blood is pumped out of your body to an artificial kidney machine that filter your blood and returns it to your body by tubes.
In peritoneal dialysis, the inside lining of your own belly acts as a natural filter. Wastes are taken out by means of a cleansing fluid which is washed in and out of your belly in cycles.
It isn’t an option for everyone but if eligible, can be done at home by the patient or caregiver. This, as opposed to home haemodialysis, is covered by insurance in the UAE.
Saturday's results
West Ham 2-3 Tottenham
Arsenal 2-2 Southampton
Bournemouth 1-2 Wolves
Brighton 0-2 Leicester City
Crystal Palace 1-2 Liverpool
Everton 0-2 Norwich City
Watford 0-3 Burnley
Manchester City v Chelsea, 9.30pm
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
The%20specs
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Lewis Hamilton in 2018
Australia 2nd; Bahrain 3rd; China 4th; Azerbaijan 1st; Spain 1st; Monaco 3rd; Canada 5th; France 1st; Austria DNF; Britain 2nd; Germany 1st; Hungary 1st; Belgium 2nd; Italy 1st; Singapore 1st; Russia 1st; Japan 1st; United States 3rd; Mexico 4th
Brief scores:
Toss: Sindhis, elected to field first
Kerala Knights 103-7 (10 ov)
Parnell 59 not out; Tambe 5-15
Sindhis 104-1 (7.4 ov)
Watson 50 not out, Devcich 49
if you go
The flights
Emirates flies to Delhi with fares starting from around Dh760 return, while Etihad fares cost about Dh783 return. From Delhi, there are connecting flights to Lucknow.
Where to stay
It is advisable to stay in Lucknow and make a day trip to Kannauj. A stay at the Lebua Lucknow hotel, a traditional Lucknowi mansion, is recommended. Prices start from Dh300 per night (excluding taxes).
