Oil nations to do ‘whatever necessary’ to balance market: UAE

Top oil producers will consider fresh output cuts at a meeting this week, but analysts are doubtful they will succeed in bolstering crude prices dented by the US-China trade war. (AFP)
Updated 08 September 2019

Oil nations to do ‘whatever necessary’ to balance market: UAE

  • The UAE energy minister said oil producers were affected by “other concerns” apart from supply and demand
  • The four-day World Energy Congress starts Monday in Abu Dhabi, where a key meeting of oil ministers will also be held

ABU DHABI: Oil producers will do “whatever necessary” to rebalance a crude market depressed by trade tensions and an uncertain global outlook, the United Arab Emirates’ energy minister said Sunday.
Suheil Al-Mazrouei warned however that with the US-China trade row hanging over the world economy, additional output cuts may not be the best way to boost sagging prices.
Deeper production cuts are “not a decision that we take easily,” the minister said ahead of the four-day World Energy Congress starting Monday in Abu Dhabi, where a key meeting of oil ministers will also be held on Thursday.
Mazrouei told a press conference that oil producers were affected by “other concerns” apart from supply and demand.
“Anything that the group sees that will balance the market, we are committed to discuss it and hopefully go and do whatever necessary,” he said.
“But I wouldn’t suggest to jump to cuts every time that we have an issue on trade tensions.”
The Joint Ministerial Monitoring Committee (JMMC), created by an alliance of OPEC oil cartel members and other crude exporters, is scheduled to meet on Thursday to assess the oil market.
European benchmark Brent was selling at $61.54 per barrel on Friday, down from more than $75 this time last year.
OPEC+, dominated by the group’s kingpin Saudi Arabia and non-OPEC production giant Russia, has resorted to massive production cuts to lift prices since the oil market crash in mid-2014.
In June, the group extended by nine months an earlier reduction of 1.2 million barrels per day, but the move has failed to arrest the price decline in light of a faltering global economy.
The one-day JMMC meeting is not set to make decisions but will assess the market and make recommendations to the next full ministerial meeting, to be held in December.
Mazrouei noted that the usual levers to control prices seemed to be having little effect.
The oil market is being affected by factors beyond “supply and demand... which is the main thing that we can control,” he said.


KSE-100 remains bullish after IMF mission recommended second tranche for Pakistan

Updated 11 November 2019

KSE-100 remains bullish after IMF mission recommended second tranche for Pakistan

  • Statistics show the stock market has given a return of 14.10 percent since July 1
  • Analysts believe Pakistan’s external position is comfortable now

KARACHI: Pakistan’s KSE-100 index continued its bullish steak for eighth consecutive sessions as it surged by 2.24 percent on Monday, witnessing a spike of 825 points, in the wake of the recommendation issued by the International Monetary Fund’s Pakistan mission to release the second tranche of $450 million for the South Asian country that is still grappling with economic challenges.
The longest bullish spell in a year was witnessed at the Pakistan bourse following “easing political noise, MSCI emerging market status quo and IMF affirmations over the achievement of First Quarter Performance Criteria by good margins,” Ahsan Mehanti, senior equity analyst, commented.
After the first review of the overall economic performance of the country under the IMF’s $6 billion bailout program, the Fund on Friday declared that the Pakistani authorities had met all performance criteria with comfortable margins.
Following the performance review, Pakistan and the IMF reached a staff-level agreement that paved the way for the second tranche of $450 million that the country expects in December this year.
Analysts say that amid the bullish spell, the equity market’s benchmark KSE 100 Index has witnessed a surge of about 7000 points from its lows. They add that the stock market has given a return of 14.10 percent since July 1.
“The external position of Pakistan seems comfortable now. The political tension has also defused, national saving scheme (NSS) rate cut and IMF review have played a vital role in putting the market on an upward trajectory,” Samiullah Tariq, Director Research at Arif Habib Limited, told Arab News.
On Monday, the market volumes increased from 210.6 million to 283 million shares, contributed mostly by banks, cement firms and the technology sector.
Pakistan’s capital markets are said to be attractive for foreign investors who had spent $675 million in treasury bills (T-Bills) and $3 million in Pakistan Investment Bonds (PIBs) by November 11, 2018.
However, the equity market witnessed outflows of $30 million since July 2019, according to the State Bank of Pakistan (SBP) and AHL Research.
During the past eight sessions, the domestic equity bourse rose by 9 percent or 3,042 points.
Previously, the market had exhibited such a trend on November 2, 2018, when it shot up by 11.4 percent or 4,289 points.