Oil prices touch fresh 11-month highs after fall in US crude stockpiles

The drop in US crude stocks is a typical year-end occurrence as energy companies take oil out of storage to avoid tax bills. (AFP file photo)
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Updated 08 January 2021
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Oil prices touch fresh 11-month highs after fall in US crude stockpiles

  • Oil prices have been supported this week by a pledge by Saudi Arabia to cut output

LONDON: Oil prices were steady on Thursday after hitting fresh 11-month highs on a fall in US stockpiles and in the wake of a pledge by Saudi Arabia to cut output by more than expected.

Brent crude was up 5 cents to $54.35 a barrel at London afternoon trade after touching $54.90, a fresh high not seen since before the first COVID-19 lockdowns in the West.

US West Texas Intermediate (WTI) was up 26 cents, or 0.5 percent to $50.89 after touching $51.28.

Wednesday’s storming of the US Capitol by supporters of US President Donald Trump appeared to have little impact, while a slight rise in global equities suggested investors believed President-elect Joe Biden would be empowered to spend more freely.

Oil prices have been supported this week by a pledge by Saudi Arabia to cut output by an additional 1 million barrels per day (bpd) in February and March.

“Saudi Arabia ... intimately knows the relationship between the oil price and the global inventory levels. Lower inventories equal higher prices,” SEB chief commodity analyst Bjarne Schieldrop said.

BACKGROUND

$63 - UBS expects Brent to trade at $63 per barrel in the second half of 2021 and WTI to trade at a $3 per barrel discount to Brent prices.

“The strategy of course only works if the OPEC+ (group of oil producers) stays disciplined,” he added. UBS analysts raised their forecast for Brent to $60 per barrel by mid-year, citing the Saudi output decision.

“The Kingdom’s preemptive move suggests to us a desire to defend prices and support the oil market amid demand concerns due to extended mobility restrictions in Europe,” they said.

US crude stocks fell and fuel inventories rose, the Energy Information Administration said on Wednesday.

Crude inventories were down by 8 million barrels in the week to Jan. 1 to 485.5 million barrels, against a Reuters poll showing analysts expected a 2.1 million barrel fall.

The drop in crude stocks is a typical year-end occurrence as energy companies take oil out of storage to avoid tax bills.

UBS raised its Brent forecast amid expectations of a sharp recovery in demand in the second quarter on vaccine rollouts and increased travel.

With Saudi Arabia’s move, OPEC’s production increase of 0.5 million barrels per day (bpd) for January is reversed in full, which will result in a tighter oil market in the first half of the year, analysts at the Swiss bank wrote in a note.

The bank expects Brent to trade at $63 per barrel in the second half of 2021 and WTI to trade at a $3 per barrel discount to Brent prices.


Israel’s old Lebanese allies grapple with new Hezbollah threat

Updated 2 min 13 sec ago
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Israel’s old Lebanese allies grapple with new Hezbollah threat

  • The South Lebanon Army was a mostly Christian militia recruited by Israel when it occupied south Lebanon in the 1980s and 1990s

The looming threat of a war between Israel and Hezbollah in Lebanon is reviving painful memories for former Lebanese militiamen and their families who fled to Israel, their erstwhile ally, more than 20 years ago.
The South Lebanon Army was a mostly Christian militia recruited by Israel when it occupied south Lebanon in the 1980s and 1990s.
The Zadalnikim, as the SLA’s former members are known in Israel from the group’s Hebrew acronym, sought shelter south of the border in the aftermath of Israel’s sudden withdrawal from Lebanon in May 2000, fearing reprisals from Hezbollah, whom they had fought for years in a brutal and uncompromising conflict.
Iran-backed Hezbollah — a Hamas ally with a large arsenal of rockets and missiles — has exchanged fire with Israeli forces almost daily since Hamas attacked Israel on October 7 triggering war in Gaza.
In response, Israel has carried out strikes deeper and deeper into Lebanese territory, targeting several Hezbollah commanders.
A strip several kilometers (miles) wide on either side of the border has become a de facto war zone, emptied of its tens of thousands of civilian residents.
“They told us to prepare for two weeks in a hotel in Tiberias” in northern Israel, said Claude Ibrahim, one of Israel’s more prominent Lebanese collaborators.
“It’s already been six months. I hope it won’t last 24 years,” he told AFP, referring to his exile from Lebanon.


Ibrahim, a former right-hand man of the late SLA commander Antoine Lahad, was evacuated from the northern Israeli town of Kiryat Shmona, near the Lebanese border, in October when the entire city was emptied.
“It’s as if history repeated itself... generation after generation,” he said, referring to how the Zadalnikim had to flee their homeland after years spent moving from village to village during the Lebanese civil war of the 1970s and 1980s.
Of the 6,000 to 7,000 Lebanese who fled to Israel in May 2000, around 3,500 still live in Israel, according to the authorities. They are registered with the interior ministry as “Lebanese of Israel” and were granted citizenship in 2004.
Shortly after their arrival in Israel — where authorities only partly took responsibility for them — many moved on to Sweden, Germany or Canada. Others returned to Lebanon, where they were tried for collaboration with Israel.
All former SLA members in Israel have relatives in Lebanon, mostly in villages in the south, a few kilometers (miles) from the Israeli border.
Few agreed to be interviewed out of fear of reprisals against their families in Lebanon, whom they stay in touch with via third parties for the same reason.
Maryam Younnes, a 28-year-old communications student at Bar-Ilan University near Tel Aviv, was five when she arrived in Israel with her parents.


When her father, a former SLA officer, died a decade ago, they were able to bury him in their ancestral village of Debel, roughly 10 kilometers (six miles) as the crow flies from Ma’alot-Tarshiha, the northern Israeli town they moved to.
The rest of their family remained in Lebanon, in Debel and the capital Beirut.
With fears growing that the near-daily exchanges of fire across the border might escalate into a full-scale war, Younnes was worried about her relatives.
“I’m very concerned for my family, for my village (in Lebanon),” said Younnes, who sees herself as “half Lebanese, half Israeli.”
“I hope that there will be a way to protect them,” she said, if there is an all-out war with Hezbollah.
Ibrahim was equally worried, although he voiced hope that a new conflict with Israel would “finish off” his old enemy Hezbollah.
“The only solution is a big strike on Hezbollah so that it understands that there is no way forward but through peace,” he said.
Ibrahim said there was no reason Israel and Lebanon should not be at peace.
But Asher Kaufman, a history professor at Notre Dame University in Indiana who specializes in Lebanon and the wider Middle East, said attitudes in Israel had shifted significantly in the decades since the civil war and the cooperation between Lebanese Christian militias and the Israeli military.
The vision of an alliance between “Lebanese Christians and the Israelis, which was at the root of the 1982 invasion (of Lebanon by Israel) has completely collapsed.”
Israel has stopped “viewing Lebanon as the Switzerland of the Middle East,” a peaceful and prosperous country, and now sees it as “a violent quagmire it wants nothing to do with.”


stc Group top workplace in Saudi Arabia, LinkedIn study finds

Updated 6 min 28 sec ago
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stc Group top workplace in Saudi Arabia, LinkedIn study finds

RIYADH: Telecommunications major stc Group has been named the best workplace in Saudi Arabia by the professional networking platform LinkedIn. 

According to a press statement, the firm was followed in second place by hospitality giga-project Red Sea Global, with energy giant Saudi Arabian Oil Co., also known as Aramco, ranked third.

Motor vehicle manufacturing company Ceer took fourth place on the list, while ROSHN, backed by the Kingdom’s Public Investment Fund, and Riyad Bank, secured fifth and sixth spots, respectively. 

“LinkedIn top companies is an annual list created by data on its platform, which will help professionals identify the top workplaces to grow their careers. The list uncovers the organizations leading the way in growth and learning opportunities for their employees, equity in the workplace, and strong company culture,” according to the report. 

Business consulting firm Bain & Co. was named the top organization in the UAE, followed by Mastercard and Procter & Gamble. 

“This year’s lists show how companies in the UAE and Saudi Arabia are continuing to grow and expand, which further cements the region’s reputation as a leading business hub,” said Salma Altantawy, senior news editor at LinkedIn. 

She added: “Our research has previously indicated professionals’ appetite for new career moves in 2024, and this list recognizes those employers that can be a top choice for professionals looking to make those moves.” 

Saudi Entertainment Ventures, also known as SEVEN, was named the tenth-top company in Saudi Arabia, an indication of the sector’s growth in the Kingdom. 

“Entertainment companies Miral and Saudi Entertainment Ventures have joined the top 15 companies in the UAE and Saudi Arabia in 2024. Both companies took 10th place in their respective countries, which shows the rise of the entertainment industry across the region,” said LinkedIn in the report. 

According to the survey, a majority of regional professionals are considering switching jobs this year and the UAE has seen a growth in hiring over the last 12 months. 

In February, stc Group revealed that its net profit in 2023 rose 9 percent to SR13.3 billion ($3.55 billion) compared to the previous year. 

In a Tadawul statement, the company revealed that the rise in profit was driven by an SR4.90 billion year-on-year rise in revenues. 


UK MPs vote down plan to protect Afghan ‘heroes’ from deportation

Updated 7 min 51 sec ago
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UK MPs vote down plan to protect Afghan ‘heroes’ from deportation

  • 10B amendment seeks to exclude Afghan veterans from removal to Rwanda
  • Top military officials warn of ‘grave damage to our ability to recruit local allies in future military operations’

London: Conservative MPs in the UK have voted against a plan to prevent Afghan veterans who served alongside British soldiers from facing deportation to Rwanda.

An amendment to the controversial Rwanda bill was overturned by 312 votes to 253 on Monday, in a rejection of plans to exempt agents, allies and employees of the UK from being deported to the African country, The Independent reported.

The House of Lords’ amendment 10B is part of the larger bill, which seeks the deportation of illegal migrants to Rwanda.

Several amendments set in the House of Lords have sought to prevent Afghan veterans who fought alongside the British military in the decade-long war from being included in deportation orders.

The 10B amendment included people eligible to enter the UK under the Afghan Relocations and Assistance Policy, which supports Afghans who helped the British campaign in their country and who are at risk under the Taliban government.

After the vote, the Rwanda bill will now return to the House of Lords for new scrutiny.

UK Prime Minister Rishi Sunak had told Conservative MPs to vote against all amendments to the bill, including 10B.

The move to exclude Afghan veterans from potential deportation to Rwanda has received support from the highest levels of Britain’s military establishment.

Thirteen senior military officials, two former chiefs of defense staff, a former defense secretary and a former UK ambassador to the US have supported the amendment.

The Sunday Telegraph carried a letter from top military officials ahead of Monday’s vote. They warned that a rejection of the amendment would cause “grave damage to our ability to recruit local allies in future military operations.”

The letter added: “It is essential that those who have made it to British shores are not unduly punished by being removed to Rwanda when the government’s scheme is up and running.”


Wife of British cyclist in Islamophobic social media rant

Updated 9 min 17 sec ago
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Wife of British cyclist in Islamophobic social media rant

  • Michelle Froome: ‘There are no innocent Gazans,’ Muslims a ‘drain on modern society’
  • Husband Chris Froome rides for Israel-Premier Tech cycling team

LONDON: The wife of a former Tour de France-winning cyclist has caused controversy in the UK following an Islamophobic outburst on social media.

Michelle Froome, wife of Chris Froome, said on her X profile on Monday that there are “no innocent Gazans” and called Muslims a “drain on modern society.”

In her first posts on the platform since 2020, she told her 15,000 followers that she is “sick of sitting idly by quietly supporting Israel while the Hamas propaganda takes over social media.”

Her husband, who won four Tours de France and was an Olympian for Team GB, is a member of the Israel-Premier Tech cycling team.

While not directly affiliated with the Israeli state, it has strong ties to the country through billionaire owners Sylvan Adams and Ron Baron.

Earlier this year, the team dropped “Israel” from its vehicles for security reasons. In recent weeks, pro-Palestinian activists have called for the team to be confronted with “more protests than ever” ahead of the upcoming Giro d’Italia race in May.

In a 13-post diatribe, Michelle Froome said: “The silent majority needs to stand up and be heard. We don’t want your religion, we don’t want your beliefs. It is not compatible with modern civilisation … There are no innocent Gazans.”

She added: “Muslims are no longer the minority they claim to be. They are here to take over. The UK, France, they are happy to claim the benefits but will not integrate into those communities. They will continue to TAKE what suits them. They are a drain on modern society.

“It’s time people stop pandering to the political correctness. It’s all a facade. They burned babies alive. They deserve no remorse what so ever. This is just the beginning. WAKE UP.”

Israel’s war on Gaza recently entered its sixth month, with over 34,000 Palestinians having been killed so far. 


India’s Lok Sabha election 2024: What you need to know

Updated 9 min 34 sec ago
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India’s Lok Sabha election 2024: What you need to know

  • India is holding the world’s biggest election starting this month, with nearly one billion people eligible to vote
  • Votes to be counted on June 4 after polling done on April 19, April 26, May 7, May 13, May 20, May 25, June 1

India is holding the world’s biggest election starting this month, with nearly 1 billion people eligible to vote and Prime Minister Narendra Modi in the pole position.

WHAT IS IT?

Elections to the 543 contested seats in the lower house of parliament, called the Lok Sabha, for a term of five years. To rule, a party or a coalition needs a simple majority of 272 seats. Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) won 303 seats the last time, followed by 52 for the main opposition Indian National Congress (INC).

In addition to the contested seats, India’s president can nominate up to two Anglo-Indians to the Lok Sabha.

The Bharatiya Janata Party, BJP, won 303 seats in 2019 general election. The second largest party, the Indian National Congress, INC, won 52 seats. The Dravida Munnetra Kazhagam, DMK, emerged as the third largest party.

People walk past a model of Electronic Voting Machine (EVM) displayed outside the office of the Election Commission of India, ahead of the country's upcoming general elections, in New Delhi on April 15, 2024. (AFP)

WHERE AND WHEN IS IT TAKING PLACE?

The elections will be conducted in seven phases partly to ensure sufficient security at polling booths across the vast country. Voters can make their choice by pressing a button on an electronic voting machine, first used in India in 1982 and more widely since the early 2000s.

Votes will be counted on June 4 after polling is done on April 19, April 26, May 7, May 13, May 20, May 25 and June 1.

The elections in the world’s largest democracy for 543 seats will be held in 7 phases.

HOW DOES IT WORK?

The world’s most populous nation follows the first-past-the-post system, where voters cast a vote for a single candidate in a constituency and the candidate with the most votes wins the seat. The voting age is 18 years and contestants need to be at least 25 years old.

A total of 968 million voters are registered, out of which 497 million are men and 471 million are women. A higher percentage of women voters than men are likely to vote for the second time in a row.

WHO ARE THE MAIN CANDIDATES?

Modi headlines the race, followed by his de facto deputy Amit Shah and the main opposition face, Rahul Gandhi of the Congress party. Gandhi’s mother Sonia, the matriarch of the Nehru-Gandhi dynasty, is not contesting this time.

WHY IS IT IMPORTANT?

Modi is chasing a record-equalling third straight term like India’s first prime minister, Jawaharlal Nehru. Modi says another overwhelming victory for the National Democratic Alliance, led by the BJP, is crucial to meet his goal of lifting India to a developed economy by 2047 from middle-income levels. The world’s fifth-largest economy has grown fast in the past few years and Modi has “guaranteed” to take it to the third position if he wins the election.

The BJP draws its support mainly from Hindus, who form 80 percent of the country’s 1.42 billion people and for whom Modi earlier this year delivered on a key party promise of building a grand Hindu temple on a disputed site.

The opposition “INDIA” alliance, largely a center-left grouping of more than two dozen disparate parties, says a victory for it is essential to save the country’s democratic and secular setup, lift its marginalized communities, raise prices for farmers and create jobs for its young. Opinion polls, which have a mixed record in India, predict another thrashing of the Congress alliance at the hands of the BJP.