OPEC, Russia oil output freeze deal may be ‘meaningless’: IEA

Updated 23 March 2016

OPEC, Russia oil output freeze deal may be ‘meaningless’: IEA

SINGAPORE: A deal among some OPEC producers and Russia to freeze production is perhaps “meaningless” as Saudi Arabia is the only country with the ability to increase output, a senior executive from the International Energy Agency (IEA) said.
Brent crude futures are up more than 50 percent from a 12-year low near $27 a barrel hit early this year, bouncing back after Russia and OPEC’s Saudi Arabia, Venezuela and Qatar struck an agreement last month to keep output at January levels.
Qatar has invited all 13 members of the Organization of the Petroleum Exporting Countries (OPEC) and major non-OPEC producers to Doha on April 17 for another round of talks to widen the production freeze deal.
“Amongst the group of countries (participating in the meeting) that we’re aware of, only Saudi Arabia has any ability to increase its production,” said Neil Atkinson, head of the IEA’s oil industry and markets division, at an industry event.
“So a freeze on production is perhaps rather meaningless. It’s more some kind of gesture which perhaps is aimed ... to build confidence that there will be stability in oil prices.”
Libya has joined Iran in snubbing the initiative, and the absence of the two OPEC producers — both with ample room to increase output — would limit the impact of any success in broadening the freeze at the April meeting.
The rise in output from Iran in the first quarter post-sanctions has been in line with IEA’s expectation of 300,000 barrels per day (bpd), Atkinson said, adding that Tehran’s output could rise again by the same amount by the third quarter.
“Iran has not exactly been flooding the market with lots more oil. It seems to be far more measured,” Atkinson said.
It will take a while for Iran to regain its pre-sanctions share in Europe, where markets have been taken over by Saudi Arabia, Russia and Iraq, he added.
The IEA, energy watchdog for the Organization for Economic Co-operation and Development (OECD), expects the wide gap between supply and demand to narrow later this year, paving the way for an oil price recovery in 2017.
“We think the worst is over for prices ... Today’s prices may not be sustainable at exactly $40 a barrel, but in this mid-$30s and upward range, we think there will be some support unless there’s a major change in fundamentals,” Atkinson said.


Excavation begins at historic Dakar market in renovation project

Updated 04 August 2020

Excavation begins at historic Dakar market in renovation project

DAKAR: Heavy-duty excavators have begun to raze the famed Sandaga market, a sprawling hub of informal trade in the heart of Senegal’s capital Dakar, which the authorities want to rebuild and modernize.

The great hall, built in the Sudanese-Sahel tradition in 1933, has housed hundreds of stalls selling merchandise of all kinds, from food to craft goods. It was closed in 2013 for public safety after the edifice was weakened by several fires.

Under the watchful eyes of city and state authorities, three heavy diggers on Sunday evening began to destroy dozens of makeshift shops that had proliferated at the foot of the hall.

Police deployed in force to keep onlookers well clear of the work.

The machines threw up thick clouds of dust while they smashed market stalls and tipped loads of rubble, beams and corrugated iron into dump trucks.

The traders, whose stands overflowed into neighboring streets, had shut up shop and packed their things after a final deadline from President Macky Sall.

Many stallholders “are in the process of setting up shop at the racecourse,” in a less central part of town, Dakar-Plateau Mayor Alioune Ndoye said. Authorities have laid out 500 stalls there for use by vendors while the renovation takes place.

Shopkeepers voiced opposition over the relocation last month, telling the government that they would lose customers at the new site far from Sandaga, a curiosity for tourists which drew large crowds.

An iconic establishment lying between the old French colonial quarter and more working-class districts, Sandaga has been one of Dakar’s main trading centers for almost a century.

“It wasn’t holding up and so we decided to level it, to build an identical site while modernizing it and adding an underground car park,” Ndoye said.

Frequented daily by residents of the capital, the market also drew people from the provinces and from the West African region. Many tourists came to hunt down artisanal carvings and other artifacts.

“Sandaga cannot continue in its current state of insecurity, the irregular occupation of the public highway and insanitary conditions,” said Minister of Urban Affairs Abdou Karim Fofana, who attended the demolition on Sunday.

“If there are problems, firefighters can’t even reach the middle. The day there is a catastrophe, people would ask where the authorities were,” Fofana recently warned.

Boubacar Dieng, a 47-year-old baker, watched the ballet of the excavating machines with a benevolent gaze from his front door, just opposite the market.

“This is good. There’s no problem, because it had become filthy, not pretty,” he told AFP. “And then there was the risk of aggression by bandits who occupied the abandoned building.”

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