Oil ministers of the Organisation of Petroleum Exporting Countries (Opec) and producers outside the group will convene in Vienna tomorrow to consider the possibility of extending production cuts amid the backdrop of increasing geopolitical tensions and stronger oil prices.
The price of Brent stood at US$63.07 yesterday afternoon after reaching $64.27 earlier in the month as the fallout over the Kurdish referendum vote and supply disruptions caused production from the disputed northern Kirkuk fields to fall below 40 per cent.
Opec’s historic agreement to cut production among member states and compliant producers outside of the group last year has helped resuscitate an oil market that saw Brent fall to under $29 at the beginning of 2016.
The agreement to slash output by 1.2 million barrels per day from January has kept prices in the $50 range for much of the year. The big question is whether the tepid recovery of oil prices to $60 a barrel can be sustained through to 2018.
On Tuesday, the Minister of Energy Suhail Al Mazrouei, speaking at a petrochemicals forum in Dubai, said the Opec gathering in the Austrian capital “was not going to be an easy meeting”, while Saudi oil minister Khalid Al Falih, who delivered the keynote at the forum, said it “was too early to talk about a normal level for inventories”.
Opec along with producers outside the group have looked at using production cuts as a double-edged sword – driving prices up and lowering the levels of oil inventories to below their five-year average.
Earlier in the month at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec), Mr Al Mazrouei said an oil market which saw prices fall below $40 only to then rise above $60 can’t be considered a stable environment that allows for the return of energy investment.
The consensus among Gulf producers appears to be for an extension, perhaps even until the end of 2018 according to some reports.
In October Saudi Crown Prince Mohammed bin Salman said he supports extending production cuts as well. The kingdom, which is the world’s largest crude exporter, needs prices to remain stable for a planned initial public offering for Saudi Aramco next year that may raise as much as $100 billion.
The UAE would also like to see stable oil prices to boost energy investment into projects.
This week, the country’s Supreme Council of Energy approved a capex plan of Dh400bn to be spent in unlocking unconventional sour gas reserves offshore and onshore Abu Dhabi as well as in investments on downstream projects abroad.
The fall in oil prices from $100 levels in 2014 has impacted investment in energy projects across producing nations – including non-Opec Oman, which has slowly begun wooing oil majors back into its vacant concessions.
While the GCC states’ enthusiasm for slashing production even above their share of the quota is unquestionable, the Vienna gathering may still prove to be a challenge.
Suppliers looking to cut production also have to worry about the rise in flow of US shale oil – emboldened by the recent surge in prices – back into the market. US shale oil looks likely to edge into markets dominated by Gulf Opec oil.
In October, India received its first ever shipment of US shale – a 1.6 million barrel cargo – from its eastern coast as the world’s third largest consumer of oil looks to diversify its supply geopolitically-sensitive Middle East crude.
Also likely to weigh on the oil markets will be policies enacted by Asia’s big consumers India and China to push for electric cars and fuel-efficient consumption as a result of them suffering off-the-charts pollution levels in their big cities in 2017.
With so many factors weighing on the markets and policy makers, the Vienna meeting as Mr Al Mazrouei put it “is not going to be an easy one.”
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
COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
Water waste
In the UAE’s arid climate, small shrubs, bushes and flower beds usually require about six litres of water per square metre, daily. That increases to 12 litres per square metre a day for small trees, and 300 litres for palm trees.
Horticulturists suggest the best time for watering is before 8am or after 6pm, when water won't be dried up by the sun.
A global report published by the Water Resources Institute in August, ranked the UAE 10th out of 164 nations where water supplies are most stretched.
The Emirates is the world’s third largest per capita water consumer after the US and Canada.
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
THE%20SPECS
%3Cp%3EEngine%3A%204.4-litre%20twin-turbo%20V8%20hybrid%0D%3Cbr%3EPower%3A%20653hp%20at%205%2C400rpm%0D%3Cbr%3ETorque%3A%20800Nm%20at%201%2C600-5%2C000rpm%0D%3Cbr%3ETransmission%3A%208-speed%20auto%0D%3Cbr%3E0-100kph%20in%204.3sec%0D%3Cbr%3ETop%20speed%20250kph%0D%3Cbr%3EFuel%20consumption%3A%20NA%0D%3Cbr%3EOn%20sale%3A%20Q2%202023%0D%3Cbr%3EPrice%3A%20From%20Dh750%2C000%0D%3Cbr%3E%3C%2Fp%3E%0A
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
THE BIO
Age: 33
Favourite quote: “If you’re going through hell, keep going” Winston Churchill
Favourite breed of dog: All of them. I can’t possibly pick a favourite.
Favourite place in the UAE: The Stray Dogs Centre in Umm Al Quwain. It sounds predictable, but it honestly is my favourite place to spend time. Surrounded by hundreds of dogs that love you - what could possibly be better than that?
Favourite colour: All the colours that dogs come in
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
The specs: 2018 Mercedes-Benz E 300 Cabriolet
Price, base / as tested: Dh275,250 / Dh328,465
Engine: 2.0-litre four-cylinder
Power: 245hp @ 5,500rpm
Torque: 370Nm @ 1,300rpm
Transmission: Nine-speed automatic
Fuel consumption, combined: 7.0L / 100km
PROFILE
Name: Enhance Fitness
Year started: 2018
Based: UAE
Employees: 200
Amount raised: $3m
Investors: Global Ventures and angel investors
If you go...
Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.
Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50
