OPEC+ oil production cut will have muted impact on market: Fitch

Fitch added that oil demand will be increasingly affected by the decarbonization of the global economy in the long term. 
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Updated 11 October 2022
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OPEC+ oil production cut will have muted impact on market: Fitch

RIYADH: The decision by the Organization of the Petroleum Exporting Countries and its allies to slash crude production by 2 million barrels per day from November will have a muted impact on the global oil market, as the actual output cuts will be smaller, according to a report by rating agency Fitch.

Fitch noted that Saudi Arabia and the UAE will have to make the largest actual production cuts, while other countries in the group known as OPEC+, including Nigeria, will have some room under their respective quotas to hike output. 

“The recent increases in global oil inventories suggest that the market is in a production surplus,” said the report. 

It added: “We expect OPEC+ to target a broad balance in the oil market by changing production quotas and available crude supplies, although it may become increasingly difficult to achieve a consensus among the members due to demand uncertainties and the recession in large developed markets.” 

Even though a recessionary economic outlook will lead to lower oil demand, this has recently been boosted by switches from gas to oil in energy generation, and high prices of natural gases, the report added. 

It further noted that price volatility in the oil market is expected to continue in the short term, driven by geopolitical tensions and further sanctions which may lead to a reduction in Russian exports. 

While the US has been critical of OPEC+’s decision to reduce oil output, President Joe Biden last week announced the release of an additional 10 million barrels from the country’s strategic petroleum reserves to global oil markets beginning in November. 

According to Fitch, a potential conclusion of the Iran nuclear deal could increase oil production in the country, which may significantly shift supply patterns causing large price fluctuations. 

The report, however, noted that oil prices are expected to moderate in the medium and long term as geopolitical tensions will eventually ease, with prices moving closer to full-cycle costs. 

Fitch added that oil demand will be increasingly affected by the decarbonization of the global economy in the long term. 


Saudi Arabia launches skills framework to support mining, industrial growth 

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Saudi Arabia launches skills framework to support mining, industrial growth 

JEDDAH: Saudi Arabia has launched a new skills framework for the mining and industrial sectors to standardize job roles and support workforce development. 

The initiative was unveiled by Minister of Industry and Mineral Resources Bandar Alkhorayef on the sidelines of the Global Labor Market Conference 2026, according to Al-Eqtisadiah. 

The framework is intended to help employers, job seekers and training providers better navigate labor demand in mining and industry, as Saudi Arabia accelerates investment in manufacturing, minerals processing and related value chains under Vision 2030. 

“This is, in fact, a tool which ensures clear definitions of occupations and their required skills. It will cover more than 500 job roles, detailing the necessary skills, responsibilities, and titles,” Alkhorayef said during a discussion panel at the event. 

The Ministry of Industry and Mineral Resources said the initiative — known as the Industry & Mining Occupations & Skills Framework — will serve as a national reference for occupations and skills in mining and industry. 

The framework is designed to achieve a set of strategic objectives that support human capital development in the industrial and mining sectors. It aims to strengthen workforce planning, training programs, and career pathways, while supporting informed decision-making. 

Covering more than 500 industrial occupations, over 300 professional specialties, 600 skills, and 900 professional certifications, the framework sets standardized job titles, descriptions, and skill requirements to support recruitment, performance, and competitiveness. 

For each occupation, a profile is developed, outlining the code, job titles, and descriptions, as well as other information such as key tasks, educational qualifications, and required skills.

These profiles give employees clarity on roles, career pathways, and accredited credentials, while helping job seekers match their qualifications with suitable roles and focus on targeted skill development. 

The framework, published by the ministry, runs to nearly 3,200 pages and was developed through collaboration with the General Authority for Statistics, alongside government bodies, private sector organizations and academic institutions. 

The launch comes as Saudi Arabia’s mining push gains momentum after new surveys of the Arabian Shield showed the Kingdom’s mineral resources are larger than previously estimated. 

Official estimates have jumped by about 90 percent to roughly SR9.37 trillion ($2.5 trillion), up from around SR5 trillion in 2016, strengthening the case for further mining investment and skills development.