Saudi Ministry of Education to showcase innovations at 2025 Geneva International Exhibition    7,523 violators of residency, labor, and border security laws deported in a week    Video contradicts Israeli army account of deadly March 23 strike on Gaza paramedics    Saudi Arabia spends over $241 million to implement de-mining projects in 3 countries    Italy's Meloni government approves controversial security decree expanding police protections and penalties    Egypt submits new Gaza ceasefire and prisoner exchange proposal: Report    'Everything is possible' — Ronaldo focused on titles, not 1,000-goal milestone after Riyadh Derby win    Saudi, US military leaders discuss enhanced defense cooperation in Riyadh    King Salman Global Academy for Arabic Language launches program with Indiana University    Ronaldo brace powers Al Nassr past Al Hilal in Riyadh derby thriller    Ed Sheeran weaves Persian music into new song, Azizam    Al-Jadaan: Crown Prince's directives confirm government's ability to bring back balance to real estate market    Veteran Bollywood actor Manoj Kumar dies at 87    Foreign investors are allowed to engage in real estate business outside Makkah and Madinah Commercial speculation should not be the purpose of real estate transaction    Aubameyang fires Al Qadsiah into King's Cup final with stoppage-time winner over Al Raed    Musk's X is suing India, as Tesla and Starlink plan entry    Tesla sales plunge after backlash against Elon Musk    Danilo Pereira fires Al Ittihad into King's Cup final with dramatic stoppage-time double    Screen time in bed linked to insomnia, study finds    Mexico bans junk food in schools to fight childhood obesity epidemic    Sweet sales surge ahead of Eid as Saudi chocolate imports top 123 million kg in 2024    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    King Salman prays for peace and stability for Palestinians in Ramadan message King reaffirms Saudi Arabia's commitment to serving the Two Holy Mosques and pilgrims    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



OPEC meets under oil supply glut cloud
Published in The Saudi Gazette on 03 - 12 - 2015

OPEC gathers in Vienna this week to decide on whether to trim the cartel's oil output faced with a global supply glut, sliding prices and weak demand growth. Alongside a formal decision on production due Friday, the Organization of the Petroleum Exporting Countries is set to approve Indonesia's return as a member.
Analysts expect OPEC — whose 12 member nations from the Middle East, Africa and Latin America pump out about one third of the world's oil — to leave its daily oil output target at 30 million barrels. Nevertheless, it may agree to trim excess production in a bid to support prices and in turn producers' revenues.
According to a survey by Bloomberg, OPEC production in November rose to 32.12 million barrels per day. "We will discuss... and then decide" on output, Saudi Arabia's Minister of Petroleum and Mineral Resources Ali Al-Naimi told reporters on arrival Tuesday in the Austrian capital, home to OPEC's headquarters.
At its last regular meeting in June, OPEC defied calls to cut output despite the low oil price, extending what is now a yearlong strategy of attempting to preserve market share and fend off competition from oil extracted from North American shale rock.
A world leader in crude oil production along with non-OPEC countries Russia and the United States, Saudi Arabia holds significant influence over the cartel's other 11 members. But the policy of maintaining high output has contributed to prices slumping from above $100 a barrel in mid-2014 to between $40-$45 currently.
This has caused much friction within OPEC, with poorer members such as Venezuela suffering badly from a collapse in income. Oil prices slid Wednesday on expectations the cartel would maintain output levels.
"The pressure is growing on Saudi Arabia to cut production after it convinced the cartel to keep oil output high in order to maintain market share and presumably squeeze shale and other weaker producers out of the market," noted Fawad Razaqzada, oil market analyst at Gain Capital trading group.
"That strategy has so far failed to work effectively with rivals proving to be surprisingly resilient and shale output has fallen only slightly. Meanwhile oil prices have dropped far more, and remained depressed longer, than what the Saudis and indeed many other oil producers had envisaged," he added.
The price situation could meanwhile worsen next year, when growth in global demand for crude is set to slow as the allure of cheap oil fades, the International Energy Agency said last month.
Demand growth is being impacted also by slowing economic growth in China, the world's biggest consumer of energy.
Further downward pressure on oil prices is expected to come from OPEC member Iran ramping up exports as sanctions are lifted as part of July's nuclear deal with major powers.
In addition, an expected rise in US interest rates later this month may boost the dollar and make oil priced in the US currency more expensive for holders of rival units, further denting demand.
Ministers head to Vienna during the week-long Paris climate summit — a springboard for billion-dollar initiatives designed to leverage the huge investments for encouraging clean technology and helping poor countries go green.
Rebecca O'Keeffe, head of investment at stockbroker Interactive Investor, said that while "climate change may yet deliver long-term opportunities for investors... with coal and oil prices so low, the short-term incentive for alternative energy sources has diminished".
OPEC will also approve Indonesia's return to the organization following a six-year absence that had been triggered by southeast Asia's largest economy becoming a net importer of oil. Its return is seen as a way for the resource-rich country to access cheaper oil supplies as local demand soars while domestic production falls.


Clic here to read the story from its source.