NEW YORK: OPEC and allied oil-producing countries decided Thursday to maintain the amount of oil they pump to the world even as the new omicron variant casts a shadow of uncertainty over the global economic recovery from the coronavirus pandemic.
Officials from OPEC countries, led by Saudi Arabia, and their allies, led by Russia, voted to stick with a pre-omicron pattern of steady, modest monthly increases in oil releases — a pace that has frustrated the United States and other oil-consuming nations as gasoline prices rise.
The OPEC+ alliance approved an increase in production of 400,000 barrels per day for the month of January.
The fast-mutating variant led countries to impose travel restrictions when it emerged late last week. In a worst-case scenario, lockdowns triggered by omicron could cut oil demand by nearly 3 million barrels per day in early 2022, according to projections by Rystad Energy.
Positive news about drugs to treat the variant or the vaccines’ effectiveness against it could improve that outlook. But even with positive news, a decrease in oil demand is likely because “the distribution of these remedies may not actually reach all markets with extreme immediacy, which would still necessitate the lockdowns in much of the developing world,” said Louise Dickson, senior oil markets analyst for Rystad.
The price of a barrel of US benchmark crude fell with news of the variant and then fell further as OPEC+ revealed it wasn’t going to curtail production. It was about $78 a barrel a week ago and was trading at about $66 a barrel Thursday. International benchmark Brent crude followed a similar path, falling from $79 a barrel a week ago to about $69 on Thursday.
The decision by OPEC+ to stay the course sends a signal that “the group does what it says and that they will continue their policy on their own terms,” Dickson said. “It also really signals that OPEC+ needs a bit more time to really dig into the numbers on the omicron variant.”
Some analysts had predicted that the OPEC+ alliance — made up of OPEC members and allied non-members like Russia — would act cautiously Thursday, pending more clarity from medical experts on the new variant.
Before omicron’s appearance, the OPEC+ meeting had been shaping up as a potentially fraught moment in a growing dispute between oil-supplying nations and oil-consuming ones, as the global economy rebounds from the worst of the pandemic downturn and demand for oil surged.
Angering the US and its allies, OPEC+ has stuck to a plan to open the petroleum taps bit by bit — even as oil prices surged to seven-year highs — until deep production cuts made during the depths of the pandemic are restored.
With rising gas prices putting him under political pressure at home, President Joe Biden last week responded to OPEC’s refusal to increase supplies more quickly by announcing the US and other nations would release tens of millions of barrels of oil from their strategic reserves, boosting supplies and temporarily lowering prices. But gasoline prices in the US barely moved.
And then, omicron’s emergence unsettled those dynamics.
White House press secretary Jen Psaki said Thursday that there are no plans to slow releases from strategic reserves, despite the advent of the variant and OPEC’s decision.
“We welcome the decision today to continue the 400,000 barrels-per-day increase,” Psaki said. “We believe this should help facilitate the global economic recovery.”
OPEC+ will meet again Jan. 4.
OPEC+ sticks to modest boost in oil output despite omicron
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OPEC+ sticks to modest boost in oil output despite omicron
Tunisia remands journalists arrested over critical comments
- Broadcaster Borhen Bssais and political commentator Mourad Zeghidi were arrested Saturday under a decree criminalizing ‘spreading false information’ among other charges, spokesman Mohamed Zitouna said
TUNIS: A Tunisian court on Wednesday ordered two journalists to be held in remand until the completion of investigations into critical comments, a court spokesman said.
Broadcaster Borhen Bssais and political commentator Mourad Zeghidi were arrested Saturday under a decree criminalizing “spreading false information” among other charges, spokesman Mohamed Zitouna said.
Zeghidi is being investigated over social media statements last February and a post in support of Mohamed Boughalleb, another journalist and critic of President Kais Saied who has been detained separately.
Bssais was arrested on accusations of “having harmed President Kais Saied through radio broadcasts and statements” online between 2019 and 2022, according to his lawyer Nizar Ayed.
Their trial is set to begin on May 22, according to their lawyers.
Both media figures are prosecuted under a law ratified by Saied in September 2022.
The law punishes people with up to five years in prison for the use of social media to “produce, spread (or) disseminate ... false news” and “slander others, tarnish their reputation, financially or morally harm them.”
Journalists and opposition figures have said it has been used to stifle dissent.
Since the decree came into force, more than 60 journalists, lawyers and opposition figures have been prosecuted under it, according to the National Union of Tunisian Journalists.
The same night Bssais and Zeghidi were taken into police custody, masked police raided the Tunisian bar association and arrested lawyer Sonia Dahmani, also on the same law.
On Monday, another lawyer was forcibly arrested at the association’s headquarters.
The president of the bar, Hatem Meziou, on Tuesday called for an end to “the abuse of power” and “violence” targeting the lawyers.
The European Union also expressed concern over a string of arrests of civil society figures in Tunisia — the latest sign of a tightening clampdown on freedoms under Saied.
Nongovernmental organizations have decried a rollback of freedoms in Tunisia since Saied began ruling by decree after a sweeping power grab in 2021.
Saudi institute gears up to tackle organized crime
- Riyadh forum pushes for stronger global efforts to combat financial crimes
RIYADH: Legal enforcement agencies must outperform organized crime groups by “miles, not just steps,” to prevent criminal alliances forming and flowing across borders, a major Riyadh forum on combating corruption has been told.
In a speech on “Building Human Capabilities to Fight Corruption and Fraud” delivered at the Arab Forum of Anti-Corruption Agencies and Financial Intelligence Units on Wednesday, Abdulmajeed bin Abdullah Al-Banyan, president of Naif Arab University for Security Sciences, said that developing strategies to fight organized crime “presents a significant challenge for both the creators and enforcers of these initiatives.”
He added: “They must ensure that the individuals they train will gain superior knowledge and skills compared to even the most adept criminal organizations as the crimes in question are intricate in nature, often orchestrated by sophisticated transnational gangs that leverage cyberspace and technology to perpetrate their illegal activities while evading detection.”
Organized crime encompasses terrorist groups, drug trafficking, money laundering, migrant smuggling, and human trafficking.
Naif Arab University for Security Sciences examined specialized training programs in the field of economic crime as part of a survey of the Arab region in 2018 .
“We noticed a shortage in the number and type of programs available compared with other regions of the world,” said Al-Banyan.
As a result, the university — the scientific body of the Arab Interior Ministers Council — made fighting economic crime one of its main priorities.
“We launched several master’s programs aimed at building capabilities in this field, the most important of which is the master’s program in financial integrity in cooperation with Case Western Reserve University in the US, which specifically aims to prepare experts in combating money fraud,” he said.
The university provides a master’s program in dealing with economic crimes, including corruption and financial fraud, and a master’s program in digital forensic investigation, which focuses on combating cybercrime and suspicious activities online.
NAUSS also launched a new master’s program in artificial intelligence this year, Al-Banyan said.
“We are currently considering adding a new master’s program in forensic accounting, which aims to qualify accountants to detect fraudulent financial practices, and qualifies them to conduct detailed financial investigations and reviews,” he added.
The university signed a memorandum of understanding with the Presidency of State Security in 2016 as part of its efforts to increase its work with key local and international partners.
“We strengthened our relations with the Oversight and Anti-Corruption Authority (Nazaha), and today, we will witness the MoU signing on the sidelines of this forum,” he added.
The university has partnered with the United Nations Office on Drugs and Crime, establishing a joint center at its headquarters to support the international and Arab community in combating organized crime, corruption, and money laundering.
Experts highlighted that fighting economic and financial crimes is a complex task that requires clear national strategies and effective cross-border cooperation.
Countries must work together to counter the threat posed by such crimes, which have the potential to severely damage economies and undermine financial systems.
Hassan Mohamud, Somalia’s Minister of Justice and Constitutional Affairs, told the forum that continuing conflict in Somalia has created a “complex money laundering landscape,” making international cooperation crucial for identifying and returning illicit funds.
Speaking during a panel session on “Enhancing Cross-Border Enforcement and Asset Recovery Mechanisms,” Mohamud said that judicial cooperation between countries, and the public and private sectors, is key to addressing these evolving issues.
“The need for sharing information on cross-border flows of money is important to combat money laundering effectively not just in Somalia, but globally,” he said.
In a keynote speech on “National Strategies: Risk Assessment in the Light of Rapidly Changing Realities,” Raed Radwan, head of the Palestinian Anti-Corruption Commission, said: “A national strategy directs efforts and resources fairly and effectively toward achieving specific goals to reduce financial crimes, and enhance integrity and transparency in the financial and economic system.”
He added that citizens have an important role to play in monitoring and reporting crimes, and raising awareness of likely threats.
“Reinforcement training is an awareness-raising activity usually supported by national strategies. It is not limited to employees, but should be available to citizens who wish to acquire knowledge to protect them and make them partners in combating these crimes,” he said.
National strategies also must include a continuous assessment of the risks surrounding financial crimes.
“This basis for evaluation can provide stakeholders with a view of the developments that perpetrators of financial crime can resort to or already resort to,” he said.
Radwan added that political and economic stability are key factors when it comes to halting the rise in financial crimes, which is evident in unstable countries.
“Financial crimes erode trust, affect economic and financial systems, leading to instability in the market, decreased investments, and hindered economic growth, resulting in financial crises,” he said.
Combating corruption and financial crimes is not the task of institutions based on and mandated by law, but is a participatory community task in which various societal sectors participate, Radwan said.
Designer unveils collection inspired by Al-Balad
- Through this collection, we invite our guests to not just wear garments, but to immerse themselves in an experience of a journey through time, culture and elegance: Makram Marzuki
JEDDAH: Saudi designer Makram Marzuki, in collaboration with Al-Balad Hospitality, hosted a captivating trunk show at heritage hotel Beit Jokhdar in Al-Balad on May 14-15.
The event showcased Marzuki’s latest collection, which draws inspiration from the rich cultural heritage of the historic district of Jeddah.
Marzuki’s latest show not only celebrated the beauty of Al-Balad but also offered a glimpse into the designer’s creative process and dedication to preserving Saudi heritage through contemporary fashion.
Speaking about the setting of the show, which emphasized telling the story beind the collection, Marzuki expressed his vision of creating a distinctive shopping experience that resonates with the history and essence of Al-Balad.
“Understanding the psychology of the Saudi woman who values luxury, we recognize her desire for more than just a generic store,” Marzuki said.
“Our goal is to provide an engaging and enjoyable shopping experience where connections are forged and memories are made. Witnessing women greet each other warmly, sharing stories and embracing the fusion of old and new, reaffirms our belief in bringing the past into the future.”
Marzuki revealed that the collection, which features luxurious and refined pieces, is a reflection of the heritage and architectural elements of Al-Balad, such as the intricate designs of “rawasheen” or “roshan,” the patterned wooden frames on windows and balconies.
The designer highlighted the attention to detail and craftsmanship that went into creating each garment, evoking a sense of quiet luxury that aligns with the ambiance of Beit Jokhdar.
“The trunk show and the hotel seamlessly blend together,” he said. “We aimed for an atmosphere of understated elegance, echoing the hotel’s over 100-year-old legacy.”
The designer shared insights into the design process, adding that the collaboration with Samaher Bashammakh from the Royal Institute of Traditional Arts was instrumental in bringing the collection to life as well as ensuring that every detail harmonized with the concept of luxury.
“The result is an intimate and luxurious experience, similar to browsing through a woman’s own closet,” he said. “We wanted to create a space that felt personal, where guests could immerse themselves in the brand’s ethos of sophistication and refinement.”
A white dress crafted from a luxurious cotton-silk blend and adorned with lace details reminiscent of the graceful lines of the roshan exemplified the fusion of traditional elements with modern design, he said. “Through this collection, we invite our guests to not just wear garments, but to immerse themselves in an experience of a journey through time, culture and elegance.”
Speaking about his favorite piece, he said: “The challenge of translating the delicate intricacy of the roshan into velvet jacquard fabric was immense, but the result is truly breathtaking. It’s a testament to the craftsmanship and dedication that went into every detail. This garment symbolizes the fusion of tradition and innovation, and it’s truly fantastic to see it come to life.”
Reflecting on the event, Marzuki emphasized the importance of storytelling in design and encouraged young designers to delve deep into their inspirations to create meaningful collections.
He hinted at a new collection set to launch in October, promising another showcase of exquisite craftsmanship and cultural references.
Digital ID launched for pilgrims arriving from outside Saudi Arabia
- The digital identity service is part of Saudi government efforts to enable digital transformation
- The move aims to facilitate pilgrims’ use of digital identity to enhance quality of services
RIYADH: The Saudi Ministry of Interior on Wednesday launched the digital identity service for pilgrims arriving from outside the Kingdom with a Hajj visa for this year’s season, the Saudi Press Agency reported.
The digital identity service is part of the Saudi government’s efforts to enable digital transformation and harness technology to help people in accordance with the goals of the Saudi Vision 2030.
Developed in cooperation with the Ministry of Foreign Affairs and the Ministry of Hajj and Umrah and the Saudi Data and Artificial Intelligence Authority, the service caters to those performing the annual ritual, according to the Interior Ministry, and enables pilgrims to prove their identity electronically through the Absher and Tawakkalna platforms.
The move aims to facilitate pilgrims’ use of digital identity to enhance the quality of services provided to them and enrich their experience.
It was also launched for pilgrims to experience the highest quality of service, and to keep pace with developments in digital transformation in the services provided to them throughout their stay in Saudi Arabia.
The ministry’s General Directorate of Passports also launched on Wednesday a special passport stamp for those benefiting from the Makkah Route Initiative. The stamp contains the initiative’s visual identity.
The stamp will be made available through designated lounges at 11 airports around the seven countries benefiting from the initiative, which are Morocco, Indonesia, Malaysia, Pakistan, Bangladesh, Turkiye and Cote d’Ivoire.
The Makkah Route Initiative is one of the ministry’s initiatives within the program of serving pilgrims.
In major relief for consumers, Pakistan slashes petrol price by Rs15.39 per liter
- After Rs15.39 per liter reduction, new price of petrol has been set at Rs273.10 per liter
- Finance Division says decision taken due to declining prices of petroleum products in global market
KARACHI: Pakistan’s government on Wednesday slashed the price of petrol by Rs15.39 per liter for the next 15 days, with the move expected to bring major relief for consumers in a country reeling from inflation over the past two years.
Pakistan typically adjusts petroleum prices on a fortnightly basis, taking into account fluctuations in the international energy market and the rupee-dollar exchange rate. The latest decrease brings the price of petrol down from Rs288.49 to Rs273.10 per liter.
According to an official notification by the Finance Division released on Wednesday night, the price of high-speed diesel has also seen a downward revision of Rs7.88 per liter, setting it at Rs274.08 from Rs281.96.
“The prices of petroleum products have seen a decreasing trend in the international market during the last fortnight,” the Finance Division said in a press release.
“The Oil & Gas Regulatory Authority (OGRA) has worked out the consumer prices, based on the price variations in the international market. The prices of Motor Spirit & HSD for the next fortnight, starting from 16th May, 2024, are accordingly being lowered.”
Pakistan slashed prices of petrol by Rs5.45 per liter on May 1 due to declining prices of petroleum products in the global energy market.
The South Asian country significantly increased fuel prices after securing a short-term, $3 billion loan from the International Monetary Fund (IMF) last year.
The rising rates also led to spiraling inflation in the country, though the government started offering relief to the people by gradually bringing down the petroleum prices.
Pakistan is already in talks with the International Monetary Fund (IMF) to secure another loan which is expected to be bigger in terms of size and duration.
