ORAN, Algeria // Saudi Arabia wants Opec to reduce output by another 2 million barrels per day (bpd) at a ministerial conference tomorrow in Algeria to staunch a collapse in prices in the face of the worst demand projections for a quarter of a century.
If agreed to at the meeting in Oran, the cut will bring Opec's total reduction this year to 4 million bpd, equivalent to 14 per cent of its peak production.
"Supply is somewhat in excess of demand. Inventories are also higher than normal. Therefore, to bring things in balance, there will be a cut in production of about 2 million barrels," said Ali al Naimi, the Saudi oil minister, on arrival in Oran last night. Analysts said a cut of this magnitude would be Opec's biggest single reduction ever. The UAE Minister of Energy, Mohammed bin Dhaen al Hamli, declined to comment on arrival, but GCC nations traditionally speak with one voice in Opec.
Mr al Naimi said Opec had already cut output by about 1.7 million bpd since the reductions began in August.
The expected reduction comes in response to a dramatic contraction in the global appetite for crude, which is expected to fall this year for the first time in a quarter of a century.
World demand had fallen by 100,000 bpd on average this year and would fall further next year because of the rapidly decaying economic conditions and the impact of high prices earlier in the year, Opec said in its monthly oil market report issued today.
Prices, which hit a record above US$147 a barrel in July, have slumped by about $100 in five months, far below the comfort zone for the global energy industry. Budgets in some Opec countries are already in deficit, and many of the highest cost producers of oil and alternative energy are operating at a loss.
Crude oil futures for January delivery on the New York Mercantile Exchange rose $1.50 today to $46 a barrel.
Russia, which has operating costs that are higher than most Opec nations, has dispatched a delegation to tomorrow's meeting. The Russian president, Dmitri Medvedev, has made forceful statements on the need to work with Opec to reverse the price slide, which has proved caustic for the country's hydrocarbon-dependent economy.
On Monday, Chakib Khelil, the Opec president, told reporters in Oran that he was hopeful Russia would join the group in cutting production. "They have already expressed their support - we are hoping for concrete support," he said.
Also on Monday, the chief executive of Lukoil, Vagit Alekperov, told a conference in Moscow that Opec had asked Russia to cut "between 200,000 and 300,000 bpd."
King Abdullah of Saudi Arabia, the group's most influential producer, has said $75 a barrel was "a fair price" for crude. Opec expects demand for its own crude, which accounts for about 40 per cent of the world total, will fall sharply this year and next, a worrying sign for Opec producers, most of whom are engaged in multibillion-dollar capacity expansion programmes.
Opec said demand for its own crude would fall by 700,000 bpd this year and 1.4 million bpd next year. "Given negative growth in world oil demand and positive growth in non-Opec supply, the demand for Opec crude is projected to decline sharply in 2009," the report said.
Opec predicted that a substantial glut of crude on the world market would stop prices rising until the middle of next year.
"The growing imbalance in the oil market over the coming quarters will lead to a much higher overhang in inventories, if the global recession deepens," the report said.
The supply overhang, Opec said, would be "the main focus of discussion" in Oran tomorrow.
cstanton@thenational.ae
Tell Me Who I Am
Director: Ed Perkins
Stars: Alex and Marcus Lewis
Four stars
Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
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Political flags or banners
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Bikes, skateboards or scooters
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
COMPANY PROFILE
Name: Lamsa
Founder: Badr Ward
Launched: 2014
Employees: 60
Based: Abu Dhabi
Sector: EdTech
Funding to date: $15 million
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
COMPANY%20PROFILE
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The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
England's all-time record goalscorers:
Wayne Rooney 53
Bobby Charlton 49
Gary Lineker 48
Jimmy Greaves 44
Michael Owen 40
Tom Finney 30
Nat Lofthouse 30
Alan Shearer 30
Viv Woodward 29
Frank Lampard 29
CREW
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ERajesh%20A%20Krishnan%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3ETabu%2C%20Kareena%20Kapoor%20Khan%2C%20Kriti%20Sanon%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203.5%2F5%3C%2Fp%3E%0A
The%20Emperor%20and%20the%20Elephant
%3Cp%3E%3Cstrong%3EAuthor%3A%20%3C%2Fstrong%3ESam%20Ottewill-Soulsby%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPublisher%3A%20%3C%2Fstrong%3EPrinceton%20University%20Press%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPages%3A%20%3C%2Fstrong%3E392%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAvailable%3A%20%3C%2Fstrong%3EJuly%2011%3C%2Fp%3E%0A
RESULTS
6.30pm: Emirates Holidays Maiden (TB) Dh 82,500 (Dirt) 1,900m
Winner: Lady Snazz, Richard Mullen (jockey), Satish Seemar (trainer).
7.05pm: Arabian Adventures Maiden (TB) Dh 82,500 (D) 1,200m
Winner: Zhou Storm, Connor Beasley, Ali Rashid Al Raihe.
7.40pm: Emirates Skywards Handicap (TB) Dh 82,500 (D) 1,200m
Winner: Rich And Famous, Royston Ffrench, Salem bin Ghadayer.
8.15pm: Emirates Airline Conditions (TB) Dh 120,000 (D) 1,400m
Winner: Rio Angie, Sam Hitchcock, Doug Watson.
8.50pm: Emirates Sky Cargo (TB) Dh 92,500 (D) 1,400m
Winner: Kinver Edge, Richard Mullen, Satish Seemar.
9.15pm: Emirates.com (TB) Dh 95,000 (D) 2,000m
Winner: Firnas, Xavier Ziani, Salem bin Ghadayer.
