BEIJING/SINGAPORE: Oil prices climbed on Friday, claiming back ground from a tumble of 5 percent in the previous session, on signs that OPEC’s output cuts that start next month will be deeper than expected.
Benchmark Brent crude futures were up 41 cents, or 0.75 percent, at $54.76 per barrel at 0836 GMT, after dropping $2.89 in the previous session. Front-month Brent is set to lose around 9 percent this week.
US West Texas Intermediate (WTI) crude futures rose 45 cents, or 1 percent, to $46.34 per barrel. WTI is on course to decline about 9.5 percent for the week.
Crude prices have lost ground along with major equity markets as investors fret about the strength of the global economy heading into next year. Further concerns were raised as the United States, the world’s biggest oil consumer, may have a government shutdown later on Friday.
The Organization of the Petroleum Exporting Countries (OPEC)plans to release a table detailing the output cut quotas for its members and allies such as Russia in its effort to shore up the price of crude, OPEC Secretary General Mohammad Barkindo said in a letter reviewed by Reuters on Thursday.
To reach the proposed cut of 1.2 million barrels per day (bpd), the effective reduction for member countries was 3.02 percent, Barkindo said.
That is higher than the initially discussed 2.5 percent as OPEC seeks to accommodate Iran, Libya and Venezuela, which are exempt from any requirement to cut.
“The current oil prices will force OPEC to increase compliance with the production cut deals, supporting Brent prices,” said Wang Xiao, head of crude research at Guotai Junan futures.
“The temporary recovery in prices has been driven by short- sellers buying back,” said Wang, referring to investors buying futures to close out positions that profit from falling oil prices.
WTI and Brent futures are down more than 30 percent from their peak in October on concerns that oil demand will drop because of a slowing global economy and signs of a supply glut.
Stephen Innes, head of trading for Asia-Pacific at OANDA said in a note that market volatility was “getting exaggerated by immensely thin liquidity conditions, risk sentiment, and holiday market participation.”
Oil rebounds as OPEC output cuts seen deeper than expected
Oil rebounds as OPEC output cuts seen deeper than expected
- OPEC plans to release a table detailing output cut quotas for its members and allies
- Oil prices climbed on Friday after tumbling 5 percent in the previous session on signs OPEC’s production cuts that start next month
UAE, Uzbekistan expand economic cooperation with mining sector pact
JEDDAH: The UAE has signed an agreement to expand cooperation in Uzbekistan’s mining sector, as the two countries seek to scale investment, modernize infrastructure and deepen economic ties.
The memorandum of understanding was signed by Mohamed Hassan Al-Suwaidi, UAE minister of investment, and Jamshid Khodjaev, Uzbekistan’s deputy prime minister, according to the Emirates News Agency, also known as WAM.
The agreement comes amid growing bilateral investment flows. UAE investments in Uzbekistan reached $1.3 billion in 2024, including about $700 million in renewable energy, with more than $4 billion in joint projects currently under development, WAM reported.
Commenting on the MoU, Al-Suwaidi said that his country and Uzbekistan share a longstanding relationship built on mutual trust and strong economic cooperation.
“Today’s signing reflects the UAE’s commitment to forging strategic international partnerships in sectors of mutual interest that support sustainable development and long-term economic value creation,” he said.
By working closely with Uzbekistan, he added, the UAE aims to unlock high-quality investment opportunities across the minerals value chain for the benefit of both nations.
The agreement focuses on the development and modernization of key supporting infrastructure, including power generation, renewable energy, grid enhancements, water systems, and logistics networks.
It also aims to advance sector digitalization, innovation, and responsible governance to reinforce long-term resilience and sustainability.
Under the MoU, cooperation will span investment activities across the full mining value chain, from exploration and development through to downstream manufacturing.
Khodjaev emphasized that the MoU marks an important step in strengthening cooperation between Uzbekistan and the Gulf state in the minerals sector.
“Through collaboration on investment facilitation, governance, workforce development, and monitoring frameworks, we aim to support responsible mineral development and create sustainable industrial growth opportunities for both economies,” he said.
According to WAM, the agreement establishes a collaboration framework involving government and regulatory authorities, state-owned investment companies and private sector partners, enabling the structuring of financing mechanisms such as foreign direct investment and public-private partnerships.
Uzbekistan’s mining sector is a key economic driver, producing commodities such as gold, copper, uranium, coal, oil, and natural gas, according to the International Trade Administration of the US Department of Commerce.
The sector is undergoing modernization as the government expands upstream-to-downstream capacity, attracts foreign investment, and upgrades infrastructure through state-owned enterprises while tapping international capital markets.
