JEDDAH — Saudi Minister of Energy, Industry and Mineral Resources Khalid Al-Falih’s announcement on Thursday that the Kingdom has reduced its oil output to its lowest levels in two years has created a wave of cautious optimism.
The announcement, made at the Atlantic Council Global Energy Forum in Abu Dhabi, comes 12 days after the official start date of the six-month deal reached by the Organization of Petroleum Exporting Countries (OPEC) in November to cut production in order to curb the fall in oil prices.
Experts say Saudi Arabia has shown commitment to the deal by exceeding its pledge to cut production. Output fell below 10 million barrels per day, Al-Falih said.
Energy expert and former professor at King Fahd University of Petroleum and Minerals, Mohamed Ramady, told Arab News: “The latest comments by Al-Falih underscores the seriousness by which the Kingdom and other GCC (Gulf Cooperation Council) countries are taking on their commitments to not only meet their production-cut targets, but also exceed them if needed, especially if there’s progress on compliance by May.”
Ramady emphasized the significance of Russia’s commitment to make this deal a success along with Saudi Arabia, which according to him adds a new, positive element that was missing before.
Riyadh-based economist John Sfakianakis said OPEC members, and Saudi Arabia in particular, impress the market by being more than fully compliant by creating a floor in oil prices.
“The commitment of Saudi Arabia and OPEC to lower output is obvious, and will become more so when hard output data are produced in early February,” Sfakianakis, director of economic research at the Gulf Research Center, told Arab News.
“Prices have found support from growing confidence that Saudi Arabia and other members are successfully implementing production cuts.”
Despite optimism in the oil industry after the OPEC deal, some analysts speculate that it may be faced by obstacles if some countries show a lack of commitment.
Ramady said verifiable compliance is central to ensure market confidence that the agreed OPEC and non-OPEC production cuts are met.
“No matter what encouraging statements come out, there will be a credibility gap based on past non-compliance by some countries,” he said.
“This will only delay any real market balancing, and will put a strain on current oil prices, which might also come under pressure given global trade uncertainties following a Trump presidency’s commitment to renegotiate trade agreements.”
Achieving stability in the oil market is deemed to reflect positively on the economy. Sfakianakis said given the fiscal constraints oil producers are facing, any medium-term rebalancing would be positive.
“The market is in a consolidation pattern, and as we get more and more signs of Saudi Arabia and OPEC implementing cuts, we’ll have another test of $55. The market tries to push higher then wait to see the level of compliance applied.”
Mohammed Al-Sabban, former senior adviser to the minister of petroleum, told Arab News: “Despite the continued improvement in prices in the past week, an extension of the optimism that began with the OPEC agreement at the end of last year, the second active week of the deal witnessed a wave of price fluctuations.”
He added: “Any non-adherence would result in oil prices dropping significantly, probably to levels much below current prices.”
Al-Sabban, professor of economics at King Abdulaziz University and a member of the Supreme Economic Council, said prices would range between $55 and $60 per barrel, and the upcoming increase in US shale oil would put a cap on oil prices of not more than $60. He added that $55 would ease the financial pressure facing Saudi Arabia.
He further noted that fixing prices over $50 is subject to serious monitoring and commitment among oil producers.
In the US, Sfakianakis said, inventories of crude and products last week rose more than anticipated, while a sharp increase in refining production to record highs pointed to solid demand.
Oil experts cautiously optimistic over Saudi oil output cut
Oil experts cautiously optimistic over Saudi oil output cut
New Saudi envoy to Oman presents credentials to Sultan Haitham
MUSCAT: Saudi Arabia’s new envoy to Oman, Ibrahim bin Saad bin Bishan, presented his credentials to Sultan Haitham bin Tariq at the Al Baraka Palace on Thursday, the Saudi Press Agency reported.
During their meeting, Sultan Haitham commended the historical Saudi-Omani ties and the two nations’ continued progress across various sectors.
The ambassador also conveyed greetings from King Salman and Crown Prince Mohammed bin Salman to the sultan, wishing the Omani people continued prosperity.
Saudi Arabia and Oman are both members of the Gulf Cooperation Council, which also includes Bahrain, Kuwait, Qatar and the UAE.
There was also a meeting between the ambassador and Omani Foreign Minister Sayyid Badr bin Hamad Al-Busaidy, reported the Oman News Agency.
Previously, bin Bishan was supervisor of the Yemen operations room and minister plenipotentiary at the Saudi Ministry of Foreign Affairs.
4th Global Ministerial Conference on Antimicrobial Resistance kicks off in Jeddah
- Three-day conference aims to enhance international efforts to confront challenges associated with antimicrobial resistance
RIYADH: The fourth high-level Global Ministerial Conference on Antimicrobial Resistance kicked off in Jeddah on Thursday under the theme “From declaration to implementation – accelerating actions through multi-sectoral partnerships for the containment of AMR.”
The three-day conference, being held under the patronage of the Ministry of Health, includes ministers of health, environment and agriculture from various countries, besides the participation of a number of heads of international organizations such as the World Health Organization, the Food and Agriculture Organization, the World Organization for Animal Health, and non-governmental organizations such as the Bill and Melinda Gates Foundation, in a move to enhance international efforts to confront the escalating challenges associated with antimicrobial resistance, which has become a threat to global health.
Saudi Minister of Health Fahd Al-Jalajel stressed that the conference is an opportunity for the international community to commit to a unified roadmap and set clear guidelines that will help address the increasing drug resistance in humans and animals.
Antimicrobial resistance poses a threat to all age groups, as it affects human, animal and plant health, as well as the environment and food security.
To curb the spread of antimicrobial resistance, the minister explained that we must adopt a comprehensive approach that systematically addresses the challenges that hinder progress, including sharing best practices, innovative financing initiatives, and developing new tools to combat antimicrobial resistance, stressing that the meeting is a vital opportunity to strengthen our collective global response to the risks of this growing “silent epidemic.”
Director General of the World Health Organization Dr Tedros Adhanom Ghebreyesus said that antimicrobial resistance is not a future threat but a present one, making many of the antibiotics and other medicines we rely on less effective, and routine infections more difficult to treat.
He praised Saudi leadership in hosting the conference, stressing that the world must work together across a range of sectors, health, environment and agriculture, to stop the spread of antimicrobial resistance.
He pointed out that the Jeddah meeting will help coordinate global efforts across diverse ecosystems, including human, animal and agricultural health, in addition to protecting the environment.
A number of countries have already resorted to imposing laws that prevent the dispensing of antibiotics in pharmacies without a prescription, and the use of antibiotics in animal farms such as poultry and livestock has been regulated in a bid to slow resistance.
Saudi and British defense ministers hold talks on cooperation and Middle East security
- Prince Khalid bin Salman and John Healey discuss ‘joint efforts to address regional challenges’ and ‘shared vision’ for regional and international security and stability
RIYADH: The defense ministers of Saudi Arabia and the UK held talks on Thursday on cooperation between their nations and efforts to bring stability to the Middle East.
During their meeting in Riyadh, Prince Khalid bin Salman and John Healey discussed the “Saudi-British strategic partnership and explored avenues to enhance defense cooperation,” the Saudi Press Agency reported.
Prince Khalid said: “We also discussed our joint efforts to address regional challenges, as well as our shared vision to promote regional and international security and stability.”
Ahead of the talks, the British Defense Ministry said Healey would “reaffirm the UK’s commitment to a future-facing defense relationship with the Kingdom of Saudi Arabia. The defense secretary will build on the decades-long defense relationship between the (countries) to enhance cooperation on shared security priorities.”
Healey, making his first visit to Riyadh since becoming defense minister following the Labour Party’s election victory in July, was also expected to discuss with Prince Khalid the ongoing efforts to secure ceasefire agreements in Gaza and Lebanon.
Earlier on Thursday, Healey met in Ankara with Yasar Guler, his counterpart in Turkiye, a NATO ally.
Ancient organic farming practices in Taif feed growing industry
- Closed-loop farming supports environment
- Rising Saudi demand for organic products
RIYADH: Organic farming in Taif province’s villages and its serene mountain and valley farms represents a continuation of an ancient tradition.
This approach avoids synthetic fertilizers and pesticides, ensuring that farms do not damage their surrounding environment, according to the Saudi Press Agency.
Inherited organic farming wisdom from previous generations boosts the health of consumers and the vitality of soil, water, plants, and wildlife.
The farming methods practiced in Taif involve a closed-loop system in which animal and plant waste is recycled into natural fertilizers.
This approach supports crop cultivation and animal husbandry, aligning with Saudi Arabia’s Vision 2030’s food security and sustainability objectives.
Drawing upon his years of experience tending terraced fields in the Al-Shafa mountains, 80-year-old farmer Abdullah Saed Al-Talhi told the SPA that organic agriculture is a fast-growing industry.
“Consumer demand for nutritious organic products is reshaping our industry,” he explained.
“Working these mountain terraces has taught me that organic farming is more than a cultivation method — it is our legacy to future generations, ensuring sustainable food production for years to come.”
“Organic farming operates through two distinct approaches,” Al-Talhi said. “We have protected greenhouse cultivation and open-field farming, but both share the same fundamental principle: producing pure food without chemical interventions.”
He emphasized that this natural approach encompasses every aspect of farming — from soil enhancement and seed selection to pest control methods.
“The Ministry of Environment, Water and Agriculture has spearheaded remarkable efforts to advance organic farming in Taif,” he added.
The ministry offers instructional programs to budding organic farmers, supporting the establishment of new farms, increased production from existing farms, and the import and export of organic products.
Other support from the ministry includes securing certification to ensure the credibility of products in Saudi and international markets.
Speaking at a recent organic market event in Taif, Al-Talhi said: “The market for organic products is experiencing remarkable growth.”
Light fantastic: Countdown begins to Noor Riyadh 2024
- Event ‘embodies the essence of striving toward new horizons,’ curator says
- World’s largest light art festival gets underway on Nov. 28
RIYADH: The start of this year’s Noor Riyadh Festival is now just two weeks away and preparations for the annual event are well underway.
Launched in 2021, the festival is a celebration of light and the arts and includes contributions from leading Saudi and international artists. It also features community activities, workshops, discussions and shows.
Billed as the largest light art festival in the world, Noor Riyadh is part of the broader Riyadh Art initiative and aims to support and inspire young artists to drive the Kingdom’s creative economy.
This year’s theme is “Light Years Away” and a host of activities are planned at three key locations — King Abdulaziz Historical Center, Wadi Hanifa and Diriyah’s JAX District — between Nov. 28 and Dec. 14.
The title is inspired by the Thuraya star cluster, which has long been a guiding light and symbol of aspiration, according to Dr. Effat Abdullah Fadag, the curator of Noor Riyadh 2024 and board member of the Visual Arts Commission.
“This year’s theme explores our journey from Althara, or Earth, toward Althuraya, or the stars, celebrating how art can bridge the physical and metaphysical,” she told Arab News.
“‘Light Years Away’ is a theme that embodies the essence of striving toward new horizons, where light is used as a metaphor for hope, creativity and resilience.
“We want the audience to feel connected to the stars above and the Earth below, experiencing how art can unite diverse elements such as science, technology, philosophy and spirituality, fostering a shared sense of inspiration and identity.”
Among the 60 artworks on offer this year are sculptural light installations and laser shows from artists like Ali Alruzaiza and Javier Riera, who use light to reimagine iconic sites like Murabba Palace.
“The works of artists like Saad Al Howede, Kimchi and Chips explore our relationship with the environment, challenging us to reflect on our impact on the Earth,” Fadag said.
“The landscapes of Wadi Hanifa serve as a living canvas, inviting the audience to consider how we can preserve the environment and the beauty of our natural heritage.
“The JAX District is a hub for innovation, experimentation and digital creativity. Originally an industrial area, it has now transformed into a space that bridges art and technology. Here, traditional and modern techniques converge in an environment that supports the creative economy.”
Fadag said she hoped visitors would leave the festival with a renewed sense of curiosity and wonder.
“The Noor exhibition reminds us that, as individuals, we aspire to connect and engage. Art and light have the power to bring us together, inspire us and illuminate new paths forward.
“I believe these experiences will remain alive long after the festival ends, encouraging visitors to carry the festival’s light with them and continue exploring their own journeys, connecting the Earth to the sky in their unique ways.”
