ORAN// Opec powerhouse Saudi Arabia said Wednesday the group will slash a record 2 million barrels from its daily production as of Jan 1, while Russia and other OPEC outsiders announced their own cutbacks of hundreds of thousands of barrels from the market.
The Saudi oil minister Ali Naimi said there was an Opec consensus ahead of a formal agreement later in the day for the cut. An official decision to pare 2 million barrels from output all at once would be a first for the organization; an Opec reduction of that size four years ago was enacted in stages.
Oil prices rose above $45 a barrel Wednesday in anticipation of the record OPEC reduction. By midday in Europe, light, sweet crude for January delivery was up $1.66 to $45.26 a barrel in electronic trading on the New York Mercantile Exchange. Also significant would be formal support from Russia, Azerbaijan and other non-Opec producers.
Mexico, Norway and Russia slashed production in the late 1990s, at a time oil was selling for about $10 a barrel. Mr Naimi first mentioned the 2 million figure in Oran on Tuesday, the eve of the oil ministers' decision-making meeting.
On Wednesday he said the ministers were likely to agree "on a reduction of 2 million barrels per day from what we are doing today ... a significant cut." He added that the cuts will be effective Jan. 1 "We also hope that other producers who are not in OPEC will chip in for the purpose of bringing stability to the market," he said, in a nod to Russia, the top oil producer after the Saudis.
*AP
Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
if you go
The flights
The closest international airport to the TMB trail is Geneva (just over an hour’s drive from the French ski town of Chamonix where most people start and end the walk). Direct flights from the UAE to Geneva are available with Etihad and Emirates from about Dh2,790 including taxes.
The trek
The Tour du Mont Blanc takes about 10 to 14 days to complete if walked in its entirety, but by using the services of a tour operator such as Raw Travel, a shorter “highlights” version allows you to complete the best of the route in a week, from Dh6,750 per person. The trails are blocked by snow from about late October to early May. Most people walk in July and August, but be warned that trails are often uncomfortably busy at this time and it can be very hot. The prime months are June and September.
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
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