Oil production cuts bring budget boost in Saudi Arabia

Goldman Sachs has estimated that Brent crude — the international oil benchmark — will trade at an average of $62 a barrel in 2018. (Reuters)
Updated 20 December 2017
Follow

Oil production cuts bring budget boost in Saudi Arabia

LONDON: An oil price at its highest for two years — at about $63 per barrel — has allowed Saudi Arabia to deliver a budget that targets growth and investment, while also maintaining fiscal restraint that will see the deficit reduce further.
The Kingdom has been able to pull this off after last month’s accord by the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil producers to retain production cuts of 1.8 million barrels per day (bpd) throughout 2018, albeit with a review halfway through the year.
First agreed at the end of 2016, these cuts have reduced global stockpiles and revived the price after the worst slump in decades in 2014/15 when the price fell below $30 per barrel. This has allowed Saudi Arabia to ease austerity for the poorest and furnished it with funds to diversify and grow the economy. Global investment banks have raised their forecast for the oil price next year, encouraged by the cuts agreement, on the assumption the price will still be low enough to encourage consumption which, in turn, has helped to bring about robust growth in the global gross domestic product (GDP) in 2017.
Goldman Sachs has estimated that Brent crude — the international oil benchmark — will trade at an average of $62 a barrel in 2018.
Another bull, JPMorgan, said “solid fundamentals and tightening balances,” as well as OPEC’s willingness to balance markets, are reasons for its positive outlook. It reckons on an average of $60 per barrel next year.
“OPEC’s decision to extend cuts through 2018 to take OECD oil inventories down to the 5-year average is clearly supportive of prices,” said the bank in a note to clients on Dec. 8.
RBC Capital Markets has forecast $62.30, while UBS increased its 2018 Brent projection to $60 from $55. Citigroup is most bearish, warning in a recent note that the bullish supply and demand dynamic will run out of steam, and an upsurge in US shale production could spook the market. For Barclays, crude’s rally will encourage the US and other non-OPEC producers to boost output in 2018, helping tip the scales toward a gain in inventories once again.
On Dec. 18, the International Energy Agency (IEA) said it expected the early part of 2018 to see a surplus of 200,000 bpd and a deficit of the same order at the end of the year, inferring the market would not be broadly balanced until the concluding months of 2018.
The IEA also said US shale producers were more active now that the oil price is back over $60. It said US drilling and well completion rates have picked up as prices have rebounded.
The worry will always be that a big supply response by US shale producers could depress the price next year. Russian companies are worried that the cuts agreement — though good for their budgets — could mean conceding market share to rivals in America and elsewhere.
But at a recent forum in London, OPEC Secretary-General Mohammed Barkindo said the global oil market was tightening at an “accelerating pace,” and he cited a sharp reduction in worldwide inventories as evidence that last year’s agreement by producers to cut supply was having an effect.
He added: “OPEC stocks in September were about 160 million barrels above the five-year average, down from 340 million in January. There has been a massive drainage of oil tanks across all regions, a balanced oil market was fully in sight.”
OPEC and other producers want to get stocks down to the five-year average in order to remove the glut built up when the price was above $100.


Jeddah’s Islamic Arts Biennale to open in January

The second Islamic Arts Biennale is set to open on Jan. 25, 2025, at King Abdulaziz International Airport in Jeddah. (File/SPA)
Updated 13 sec ago
Follow

Jeddah’s Islamic Arts Biennale to open in January

  • Over 30 artists explore cultural heritage through contemporary art

JEDDAH: The second Islamic Arts Biennale is set to open on Jan. 25, 2025, at the Western Hajj Terminal of King Abdulaziz International Airport in Jeddah.

Organized by the Diriyah Biennale Foundation, the event will showcase a blend of timeless Islamic civilization treasures and contemporary artistic creations.

The biennale will offer visitors a journey through the artistic heritage of Islam, engaging the senses, intellect, and creativity, the Saudi Press Agency reported.

Featuring contributions from over 30 artists from Saudi Arabia and beyond, the artworks will be displayed in both indoor and outdoor spaces until May 25.

Saudi artist Muhannad Shono will curate contemporary art, supported by associate curators Joanna Chevalier and Amina Diab.

Shono, along with artistic directors Julian Raby, Amin Jaffer, and Abdul Rahman Azzam, has tasked the artists with creating new works that complement historical Islamic artifacts.

The biennale’s theme, “And All That Is In-Between,” captures the essence of contemporary artworks, transcending simplistic notions to foster collective understanding, imagination, and interpretation.

The artworks, inspired by themes including space, time, and light, provide insight into preserving and nurturing culture by exploring the evolving landscape of Saudi Arabia.

The new art pieces will be displayed alongside historical artifacts, including religious relics, maps, and jewelry, in five indoor halls and various outdoor spaces beneath the Hajj Terminal canopy.

The works, also inspired by the concept of the garden in Islamic civilization, blend nature and traditional design while addressing contemporary environmental and social issues.

The Islamic Arts Biennale will be organized into seven sections — Al-Bidaya (the beginning), Al-Madar (the orbit), Al-Muqtani (homage), Al-Mathala (the canopy), Makkah Al-Mukarramah, Al-Madinah Al-Munawwarah, and Al-Musalla (the prayer hall) — spread across various galleries and outdoor areas, covering 100,000 square meters of dedicated exhibition space.


Saudi ambassador presents credentials to Ukraine’s president

Updated 24 December 2024
Follow

Saudi ambassador presents credentials to Ukraine’s president

RIYADH: Saudi Arabia’s ambassador to Ukraine, Mohammed bin Abdulaziz Al-Barakah, presented his credentials to Ukrainian President Volodymyr Zelensky, at a ceremony held in the capital, Kyiv.
Ambassador Al-Barakah conveyed the greetings of King Salman and Crown Prince Mohammed bin Salman to President Zelensky along with their wishes for continued progress and prosperity for the government and people of Ukraine.

 


 
 

 


Saudi artist crafts Madinah’s culture in resin 

Updated 24 December 2024
Follow

Saudi artist crafts Madinah’s culture in resin 

RIYADH: Resin art, a crafting technique using the liquid form of the substance to create 3D objects or glossy coatings, has gained widespread popularity. When mixed with a hardener, resin solidifies, forming a glass-like finish.

Elyan Al-Aufi, a citizen from Madinah and a visual arts graduate of Taibah University, has significantly contributed to the medium, the Saudi Press Agency reported.

Her pieces reflect Madinah’s culture, incorporating local elements including Madani script, roses, mint and basil. 

Travelers to Madinah and the Prophet's Mosque often purchase her art as souvenirs, including keychains, jewelry, wall clocks, decorative pieces, and prayer beads, the SPA reported.

Resin art is versatile, used to create accessories and jewelry — such as necklaces, rings and earrings — via special molds. It is also key to paintings made with pouring techniques, producing distinctive results. 

Resin is popular in household items including tables and trays, often featuring natural elements such as flowers or wood. It also used to preserve memorabilia and natural objects including leaves, photos and other items. 

With its glass-like transparency and glossy finish, resin art allows creative use of colors, dyes, and natural elements such as flowers and shells. It produces durable, timeless pieces.


Saudi Arabia honors Qur’an contest winners in Nepal

Updated 4 min 52 sec ago
Follow

Saudi Arabia honors Qur’an contest winners in Nepal

RIYADH: Saudi Arabia’s Ministry of Islamic Affairs recently honored winners of a Qur’an memorization competition in Nepal, involving more than 750 contestants and with 18 winners in four categories for boys and girls.

The competition, supervised by the Saudi Embassy in Kathmandu and coordinated with Nepal’s Muslim Commission, concluded with awards presented by the ministry’s undersecretary, Awad Al-Anzi.

Saudi Ambassador to Nepal Saad Nasser Abu Haimed and Nepal’s Speaker of the House of Representatives Dev Raj Ghimire attended the ceremony, alongside Islamic leaders, diplomats and parliamentarians.

The event featured Qur’an recitations by contestants and highlighted the Kingdom’s efforts to promote the Qur’an globally, the Saudi Press Agency reported.

Al-Anzi reiterated the Kingdom’s commitment to Islam’s values of justice, mercy and kindness and emphasized its longstanding support for Qur’an-related initiatives, including competitions and free distribution through the King Fahd Qur’an Printing Complex in Madinah.

Abu Haimed praised the competition as part of Saudi Arabia’s dedication to the Qur’an and congratulated the winners.

Participants expressed gratitude for the Kingdom’s support of Islam and encouragement of Qur’an memorization and recitation.


Qassim craftsmen shine at Security Oasis exhibition

Updated 24 December 2024
Follow

Qassim craftsmen shine at Security Oasis exhibition

RIYADH: The Qassim municipality pavilion at the Ministry of Interior’s Security Oasis exhibition, held alongside the King Abdulaziz Camel Festival, impressed visitors with a stunning display of wooden sculptures.

The intricate works show the region’s cultural heritage and the exceptional craftsmanship of local artisans, the Saudi Press Agency reported on Tuesday.

Characterized by exquisite detail, the sculptures demonstrate the remarkable skill of Qassim’s craftsmen in transforming wood into captivating art that blends authenticity and creativity.

The display reflects the strong support provided by the municipality and the Heritage Commission to local artisans, according to the SPA.

By fostering this talent, the region promotes a thriving creative environment and ensures Qassim’s heritage reaches a wider audience through events such as this festival.

The exhibition runs in Al-Sayahid, northeast of Riyadh, until Dec. 31.