PARIS: The Organization of the Petroleum Exporting Countries (OPEC) is complying with a landmark deal to reduce a worldwide glut in oil, but it will take some time yet before the oil market feels the full impact of the reduction in output and prices stabilize, the International Energy Agency (IEA) said on Wednesday.
“The implementation of the OPEC production agreement appears in February to have maintained the solid start seen in January,” the IEA said in its latest monthly report.
“OPEC kept up robust adherence to its ... supply cut. For the first two months of the deal the compliance rate averaged 98 percent,” it said, adding that “global oil supplies rose in February as (both) OPEC and non-OPEC producers pumped more.”
At the end of November, OPEC agreed to cut output by 1.2 million barrels per day (bpd) from Jan. 1, initially for a period of six months.
Then in December, non-OPEC producers led by Russia agreed to cut their own output to 558,000 bpd.
The aim was to reduce a glut in global oil supply that has depressed prices, which currently stand at around $48-$51 per barrel.
Nevertheless, global oil supplies increased by 260,000 bpd to 96.52 million bpd in February, the IEA calculated. OPEC increased output by 170,000 bpd to 32 million bpd and non-OPEC oil production increased by 90,000 bpd to 57.8 million bpd, largely due to higher US output.
This meant that OPEC’s compliance rate with the agreed output cut stood at 91 percent, down from 105 percent in January.
And after a compliance rate of 40 percent in January for the 11 non-OPEC countries, there was still little information available on production levels in February, the IEA said.
Nevertheless, the non-OPEC output was seen “slightly higher following rising output from Kazakhstan and Sudan/South Sudan and with Russian production essentially unchanged,” it added.
The IEA said that Saudi Arabia was shouldering the bulk of the cuts in overall OPEC production.
“The market needs time for the full impact of the big supply cuts under the output reduction agreements to be felt,” the report said.
“If current production levels were maintained to June when the output deal expires, there is an implied market deficit of 500,000 bpd for the first half of 2017, assuming, of course, nothing changes elsewhere in supply and demand,” the agency stated.
“It is unclear at this stage whether OPEC will extend its six-month supply pact to the end of the year,” the IEA said.
Impact of OPEC oil cuts will take time to be felt: IEA
Impact of OPEC oil cuts will take time to be felt: IEA
Saudi Dar Al Arkan, Trump Organization unveil 1st Riyadh project in Wadi Safar
RIYADH: Saudi developer Dar Al Arkan and its international unit Dar Global have unveiled the first of two Trump-branded projects planned for Riyadh, launching a 2.6 million-sq.-meter Trump International Golf Club in Wadi Safar.
The project follows a joint announcement in December 2024 by Dar Al Arkan, Dar Global and The Trump Organization to develop two Trump-branded assets in the Saudi capital. It marks The Trump Organization’s first venture within the Diriyah development, one of the Kingdom’s flagship giga-projects, according to a press statement.
The development aligns with Saudi Arabia’s Vision 2030 goals to diversify the economy away from oil and attract foreign direct investment.
It also comes as Saudi Arabia plans to allow foreigners to own property in designated areas for the first time, starting this month.
In a statement, Eric Trump, executive vice president of The Trump Organization, said:
“We are proud to expand our presence with this landmark development in Wadi Safar. Trump International Golf Club, Wadi Safar will redefine luxury and excellence in the region, setting a new standard that reflects the brand’s enduring commitment to quality, prestige and timeless elegance.”
He added: “We look forward to creating a destination that complements the rich heritage of the region while delivering a global standard of luxury living.”
The Trump International Golf Club, Wadi Safar, will be developed as a gated community featuring a championship golf course, a luxury hotel and premium residential units overlooking surrounding wadis and fairways.
“This new project represents a vision to deliver a destination that captures the prestige and the legacy of the Trump brand. With Dar Global leading the development, we are confident this will become a flagship destination not just for Saudi Arabia, but for the world,” said Yousef Al Shelash, chairman of Dar Al Arkan.
The project will combine top-tier hospitality, design, and lifestyle offerings in a setting that reflects Saudi Arabia’s cultural and natural heritage.
Ziad El Chaar, CEO of Dar Global, said the company is proud to collaborate with Diriyah Co. and Dar Al Arkan on the development of the new site.
“We have delivered landmark projects across Europe and the Gulf Cooperation Council in partnership with globally recognized luxury brands. Bringing this experience to the Diriyah project, we will deliver a destination that combines heritage, elegance, and world-class standards, making Trump International Golf Club, Wadi Safar a truly iconic address,” El Chaar said.
Saudi Tourism Minister Ahmed Al-Khateeb said in a post on X that the project represents a milestone partnership and reflects momentum in developing destinations to international standards.
“From Wadi Safar in Diriyah, we laid the cornerstone for the Trump International Wadi Safar project within the Rayana Wadi Safar masterplan, which includes the launch of the Trump International Golf Club, alongside a Trump-branded hotel and a collection of luxury mansions,” he said.
Al-Khateeb added: “A milestone reflecting strong delivery momentum in developing destinations to global standards, underscoring Saudi Arabia’s growing appeal as a leading destination for tourism and investment through high-calibre international partnerships.”
Located on the outskirts of Riyadh, Wadi Safar in Diriyah is among Saudi Arabia’s most scenic and strategically important areas. It is envisioned as an upscale enclave that aligns with the wider Diriyah master plan, a central pillar of Vision 2030 aimed at economic diversification and enhancing the Kingdom’s global standing.
