DUBAI: The price of oil surged above $80 a barrel on Tuesday amid soaring demand from global economies and increasingly tight supply.
Brent crude, the global benchmark, jumped past the psychologically significant landmark for the first time in three years, after five days of rising prices.
Oil analysts believe the surge could have a long way to go. Christyan Malek, head of oil and gas at US bank JP Morgan, told Arab News: “The bull case suggests that oil could hit more than $100 a barrel by 2023, though it could reach that level within the next six to 12 months.”
Another US banking giant, Goldman Sachs, this week forecast a price of $90 a barrel for Brent by the end of this year.
Oil has risen in price by more than 90 percent over the past year as the output strategy of OPEC+ — the oil alliance led by Saudi Arabia and Russia — drained the global oil glut that depressed prices in 2020.
Global crude inventories that ballooned during the pandemic have shrunk to their lowest levels since January 2020 as the biggest oil consumers, the US and China, fuel their recovery.
Several other factors are also behind the recent run. Robin Mills, chief executive of consultancy Qamar Energy, said it was down to “gas shortages and revived demand colliding with US hurricanes and maintenance delays.”
Adding to the upward pressure on prices, oil demand will grow sharply in the next few years as economies recover from the pandemic, OPEC forecast in its World Oil Outlook published on Tuesday.
“Energy and oil demand have picked up significantly in 2021 after the massive drop in 2020,” OPEC Secretary-General Mohammad Barkindo said. “Continued expansion is forecast for the longer term.”
Oil use will rise by 1.7 million barrels per day in 2023 to 101.6 million bpd, OPEC said, adding to robust growth already predicted for 2021 and 2022, and pushing demand back above the pre-pandemic 2019 rate.
The organization said the world must continue investing in oil production to avert an energy shortage, despite the transition to renewables. Upstream oil capital spending dropped by nearly 30 percent to about $240 billion last year because of the pandemic.
“It is clear that underinvestment remains one of the great challenges for the oil industry,” Barkindo said. “Without the necessary investments, there is the potential for further volatility and a future energy shortfall.”
Nevertheless, OPEC is upbeat about its prospects. “Oil is still expected to retain its No. 1 position in the energy mix,” Barkindo said.
Price of oil surges past $80-a-barrel landmark
https://arab.news/2t8dm
Price of oil surges past $80-a-barrel landmark
- OPEC urges investment in production
Qualitative leaps and record numbers are leading the Kingdom’s fisheries sector toward global leadership: vice minister
RIYADH: His Excellency the Vice Minister of Environment, Water and Agriculture, Engineer Mansour bin Hilal Al-Mushaiti, affirmed that the fisheries sector in the Kingdom has achieved qualitative accomplishments and record figures, with aquaculture production exceeding 192,000 tonnes.
This comes alongside the implementation of more than 410 projects in marine and inland waters, in addition to the export of approximately 59,000 tonnes of fishery products to more than 35 countries around the world, with a value exceeding SR1.3 billion ($346.66 million).
This was stated during His Excellency’s opening of the activities of the fifth edition of the Saudi International Marine Exhibition and Conference at the Riyadh International Convention and Exhibition Center, amid broad local and international attendance reflecting the exhibition’s growing stature as a regional and global specialized platform for the sector.
He stressed that the exhibition is no longer merely an event, but has become a global meeting platform, a growth driver, and a showcase reflecting the Kingdom’s leadership in the fisheries sector regionally and internationally.
He also underlined that this development is the result of the work of an integrated system that includes strategic planning, the development of policies and regulations, investor stimulation, and the capacity building of fishermen and practitioners.
These efforts have been led by the Ministry of Environment, Water and Agriculture, represented by the National Program for the Development of the Livestock and Fisheries Sector. They also include qualitative initiatives to support fishermen, regulate fishing activities, and develop port, transport, processing, and marketing services, positioning the Kingdom among advanced countries in the fisheries sector.
The vice minister of environment, water and agriculture also witnessed the signing of 13 memoranda, cooperation agreements, and investment contracts between a number of local and international entities, with an estimated value exceeding SR316 million.
These aim to develop investment opportunities in the fisheries sector, enhance the growth of local fishery exports to global markets, support fish and algae processing industries, and increase production efficiency to achieve food security and economic growth in line with the objectives of Saudi Vision 2030.
The exhibition, which runs for three days, is witnessing the participation of more than 30 countries and 120 exhibitors, and is expected to attract 15,000 visitors from various segments.
The event’s activities include 20 workshops in which 3,500 international and local investors and businesspeople are participating, in addition to 25 global speakers and experts.
Several countries are participating in the gathering, including China, Korea, Russia, and Norway, as well as Spain, France, and Germany, alongside the Food and Agriculture Organization of the UN.
This presence reflects the diversity of international expertise and the depth of global interest in the fisheries and aquaculture sector.
At the conclusion of the ceremony, His Excellency toured the exhibition pavilions, reviewed prominent modern technologies and solutions in the fields of fisheries and aquaculture, and listened to exhibitors’ explanations of the latest innovations, products, and services. He stressed the importance of such exhibitions in transferring knowledge, supporting investment, and enhancing the competitiveness of the fisheries sector in the Kingdom.
