Opec+, the producer alliance headed by Saudi Arabia and Russia, is expected to stick to tapered output cuts to be made at the end of the year, according to the UAE energy minister, who said the group did not anticipate a peak in oil demand before 2040.
“Opec+ have set a plan, and that started with almost 10 million or the 9.7 million barrels [per day] reduction. Volumes have been reduced and it will be reduced again at the end of this year, as we move to 2021,” Suhail Al Mazrouei told an Energy Intelligence Forum panel.
The minister said the group is likely to reduce the output cut to 5.7-6m bpd until April 2022.
Opec+ undertook a historic level of production cuts of up to 9.7m bpd between May and July to reverse a record plunge in demand due to the pandemic. The alliance is currently drawing back 7.7m bpd from the markets.
"That's what we estimated, for what it would take to balance the markets, and we are hoping that countries will slowly increase their production because we don't want to see a spike in one country that leads to others not behaving,” he added.
The group is also convening its joint technical and monitoring committees monthly to oversee compliance among members and enforced mechanisms to prompt laggards to make compensatory cuts. Opec+ is expected to convene the JTC and JMMC on October 15 and 19 respectively.
On Tuesday, Saudi Araba's crown prince Mohammed Bin Salman and Russian president Vladimir Putin called on producers in the alliance to stick to the cuts during a phone call ahead of the meetings.
Riyadh and Moscow “agreed on the importance of all oil-producing countries to continue cooperating and abiding by Opec+ agreement to achieve these goals for the benefit of both producers and consumers,” according to a statement from the kingdom.
On Tuesday, Opec left its crude demand forecast for 2020 largely unchanged in its latest oil market report. Global oil demand is expected to decline by 9.5m bpd in 2020, with overall consumption expected at 90.3m bpd.
Opec also revised its demand forecast for 2021 down by 80,000 bpd reflecting slower growth for OECD and non-OECD countries. Demand growth for next year is expected at a "solid" 6.5m bpd, Opec said.
The minister also said the oil demand has not peaked, despite several energy companies writing off the value of their hydrocarbon assets following the crash in crude prices earlier this year.
"Not before 2040 or so can we expect peak demand [for oil]. We still need a base load. We’re moving away from liquid hydrocarbons towards more gas and more renewables. It will take time for the world to significantly reduce the demand for fossil,” Mr Al Mazrouei told the panel.
The International Energy Agency on Tuesday said the pandemic may usher in the slowest decade of energy demand in a century and the global response to the coronavirus can reshape the energy landscape for years to come.
The Paris-based agency warned of a fragile recovery for oil markets reeling from the economic impact of the pandemic and urged countries to pursue a transition to cleaner forms of energy.
In its latest World Economic Outlook, the International Monetary Fund revised up its estimates for oil prices. The lender expects prices to average $41 per barrel this year and $43.8 per barrel in 2021. Prices are set to increase thereafter to $48, which is still 25 per cent lower than the 2019 average price, due to weaker demand.
However, other heads of energy companies such as Saudi Aramco’s president and chief executive, Amin Nasser noted that a recovery of energy prices is on track.
“The worst is definitely behind us,” Mr Nasser told another panel. "We are seeing a recovery. Most of the demand comes from the developing countries. We see a big pick-up from East Asia, especially China,” he added.
Brent, the international benchmark for crude, was down 0.57 per cent, trading at $42.21 per barrel at 11.31am UAE time, while West Texas Intermediate, the gauge for US oi, was up 0.6 per cent at $39.96 per barrel.
Killing of Qassem Suleimani
The specs
Engine: four-litre V6 and 3.5-litre V6 twin-turbo
Transmission: six-speed and 10-speed
Power: 271 and 409 horsepower
Torque: 385 and 650Nm
Price: from Dh229,900 to Dh355,000
Dubai World Cup nominations
UAE: Thunder Snow/Saeed bin Suroor (trainer), North America/Satish Seemar, Drafted/Doug Watson, New Trails/Ahmad bin Harmash, Capezzano, Gronkowski, Axelrod, all trained by Salem bin Ghadayer
USA: Seeking The Soul/Dallas Stewart, Imperial Hunt/Luis Carvajal Jr, Audible/Todd Pletcher, Roy H/Peter Miller, Yoshida/William Mott, Promises Fulfilled/Dale Romans, Gunnevera/Antonio Sano, XY Jet/Jorge Navarro, Pavel/Doug O’Neill, Switzerland/Steve Asmussen.
Japan: Matera Sky/Hideyuki Mori, KT Brace/Haruki Sugiyama. Bahrain: Nine Below Zero/Fawzi Nass. Ireland: Tato Key/David Marnane. Hong Kong: Fight Hero/Me Tsui. South Korea: Dolkong/Simon Foster.
Company profile
Name: Fruitful Day
Founders: Marie-Christine Luijckx, Lyla Dalal AlRawi, Lindsey Fournie
Based: Dubai, UAE
Founded: 2015
Number of employees: 30
Sector: F&B
Funding so far: Dh3 million
Future funding plans: None at present
Future markets: Saudi Arabia, potentially Kuwait and other GCC countries
MATCH INFO
Crawley Town 3 (Tsaroulla 50', Nadesan 53', Tunnicliffe 70')
Leeds United 0
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Abu Dhabi GP starting grid
1 Lewis Hamilton (Mercedes)
2 Valtteri Bottas (Mercedes)
3 Sebastian Vettel (Ferrari)
4 Kimi Raikkonen (Ferrari)
5 Daniel Ricciardo (Red Bull)
6 Max Verstappen (Red Bull)
7 Romain Grosjean (Haas)
8 Charles Leclerc (Sauber)
9 Esteban Ocon (Force India)
10 Nico Hulkenberg (Renault)
11 Carlos Sainz (Renault)
12 Marcus Ericsson (Sauber)
13 Kevin Magnussen (Haas)
14 Sergio Perez (Force India)
15 Fernando Alonso (McLaren)
16 Brendon Hartley (Toro Rosso)
17 Pierre Gasly (Toro Rosso)
18 Stoffe Vandoorne (McLaren)
19 Sergey Sirotkin (Williams)
20 Lance Stroll (Williams)
UAE currency: the story behind the money in your pockets
KILLING OF QASSEM SULEIMANI
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The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
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Gran Gala del Calcio 2019 winners
Best Player: Cristiano Ronaldo (Juventus)
Best Coach: Gian Piero Gasperini (Atalanta)
Best Referee: Gianluca Rocchi
Best Goal: Fabio Quagliarella (Sampdoria vs Napoli)
Best Team: Atalanta
Best XI: Samir Handanovic (Inter); Aleksandar Kolarov (Roma), Giorgio Chiellini (Juventus), Kalidou Koulibaly (Napoli), Joao Cancelo (Juventus*); Miralem Pjanic (Juventus), Josip Ilicic (Atalanta), Nicolo Barella (Cagliari*); Fabio Quagliarella (Sampdoria), Cristiano Ronaldo (Juventus), Duvan Zapata (Atalanta)
Serie B Best Young Player: Sandro Tonali (Brescia)
Best Women’s Goal: Thaisa (Milan vs Juventus)
Best Women’s Player: Manuela Giugliano (Milan)
Best Women’s XI: Laura Giuliani (Milan); Alia Guagni (Fiorentina), Sara Gama (Juventus), Cecilia Salvai (Juventus), Elisa Bartoli (Roma); Aurora Galli (Juventus), Manuela Giugliano (Roma), Valentina Cernoia (Juventus); Valentina Giacinti (Milan), Ilaria Mauro (Fiorentina), Barbara Bonansea (Juventus)
Global Fungi Facts
• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil
Federer's 19 grand slam titles
Australian Open (5 titles) - 2004 bt Marat Safin; 2006 bt Marcos Baghdatis; 2007 bt Fernando Gonzalez; 2010 bt Andy Murray; 2017 bt Rafael Nadal
French Open (1 title) - 2009 bt Robin Soderling
Wimbledon (8 titles) - 2003 bt Mark Philippoussis; 2004 bt Andy Roddick; 2005 bt Andy Roddick; 2006 bt Rafael Nadal; 2007 bt Rafael Nadal; 2009 bt Andy Roddick; 2012 bt Andy Murray; 2017 bt Marin Cilic
US Open (5 titles) - 2004 bt Lleyton Hewitt; 2005 bt Andre Agassi; 2006 bt Andy Roddick; 2007 bt Novak Djokovic; 2008 bt Andy Murray
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
