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.
Oil production cuts bring budget boost in Saudi Arabia
Oil production cuts bring budget boost in Saudi Arabia
Saudi authorities seize drugs, arrest two suspects in Riyadh
- Authorities sezied 35 kg of hashish and 32,338 controlled medical tablets
RIYADH: Saudi Arabia’s drug control authority seized quantities of narcotics and arrested two suspects for drug promotion in Riyadh on Tuesday.
The General Directorate of Narcotics Control reported the seizure of 35 kg of hashish, 32,338 controlled medical tablets, as well as amphetamine and methamphetamine drugs.
It said that it had arrested two suspects in the case — a Syrian resident and a national — in Riyadh’s region, and referred them to prosecution, the Saudi Press Agency reported.
Saudi security authorities are urging people to report any activities related to drug smuggling or promotion by calling 911 in the Makkah, Riyadh and Eastern Province regions, and 999 in the rest of the Kingdom.
Alternatively, information can be emailed to [email protected]. All reports are treated in confidence.
KSrelief concludes urology surgery project in Yemen
- Project included nine volunteers from different medical specialties
- KSrelief medical team successfully performed 109 specialized urology surgeries
RIYADH: King Salman Humanitarian Aid and Relief Center has completed a medical project for urology surgeries in Yemen’s Aden governorate.
The project included nine volunteers from different medical specialties and was carried out from Dec. 15-22 in collaboration with the Saudi Program for the Development and Reconstruction of Yemen.
The KSrelief medical team examined 53 cases and successfully performed 109 specialized surgeries, the Saudi Press Agency reported.
KSrelief’s project is one of Saudi Arabia’s medical initiatives to assist the Yemeni people and ease their suffering amid the humanitarian crisis.
Saudi interior minister rewards winners of King Abdulaziz Falconry Festival
- Prince Abdulaziz awarded the prestigious King’s Sword to falconers Barghash Mohammed Al-Mansouri and Faisal Al-Qahtani
- He honored the winners of the festival’s elite rounds with King Abdulaziz Cup
RIYADH: Prince Abdulaziz bin Saud bin Naif, Saudi minister of interior and chairman of the Saudi Falcons Club, honored on Tuesday the winners of the 2024 King Abdulaziz Falconry Festival.
Prince Abdulaziz awarded the prestigious King’s Sword to falconers Barghash Mohammed Al-Mansouri and Faisal Al-Qahtani, the Saudi Press Agency reported.
He also honored the winners of the festival’s elite rounds, who received the King Abdulaziz Cup. The champions included Al-Mansouri, Amin Abdullah Al-Mallah, Mohammed Hafez Al-Marri, Fahd Mohammed Al-Mansouri, Mohammed Ibrahim Al-Buainain, and Hamid Mohammed Al-Mansouri, the SPA added.
Additional awards were given to winners in the Mazayen falcon beauty pageant, covering both amateur and professional rounds, the SPA reported.
Prince Abdulaziz also honored the sponsors of the 2024 Saudi Falcons Club events at the end of the ceremony.
King Abdulaziz Falconry Festival was held from Dec. 3-19 at the club’s headquarters in Malham, north of Riyadh.
The event drew 1,032 falconers from nine countries, including 160 international participants, and showcased 3,322 falcons from countries such as Saudi Arabia, Kuwait, the UAE and Italy.
The festival featured 138 rounds in Al-Malwah, highlighting falcon speed and talent, along with Mazayen competitions. It awarded more than SR 36 million ($9.6 million) in prizes, marking a record-breaking year for the festival.
Festival in Riyadh finds Common Ground between Iraqi and Saudi cultures
- We are ‘all one culture, one society and one message,’ says Iraqi official
RIYADH: From heritage to long-standing traditions, the deep connections between Iraq and Saudi Arabia span thousands of years to the pre-Islamic era.
The second Common Ground festival, an initiative by Saudi Arabia’s Ministry of Culture, is an immersion in the bonds of the two nations through art, cuisine and performance.
Alataf Ebrahim, the head of the festival department at the Iraqi Ministry of Culture, Tourism and Antiquities, told Arab News: “Baghdad and all the Iraqi governorates are passionate about embracing Saudi culture. While the event is called Common Ground, with pride, we say that we are all one culture, one society and one message.
“This is a big and very important event, and the project is bold for planning and drawing joint cultural events now, and in the future. As the Ministry of Culture, this venture has been initiated for two years and we plan on having Saudi cultural nights in Baghdad as well as in 2025.”
HIGHLIGHT
Common Ground festival features an exhibition dedicated to the history of traditional clothing, musical instruments, songs, and significant cultural figures of Saudi Arabia and Iraq.
One of the main festival attractions is Al-Mutanabbi Street, which is recreated based on the historical road in Baghdad along with its iconic main gate. The renowned hub for intellectual life hosts various bookstores, clothing stores, live painting and oud performances, and panel discussions around various cultural crossovers.
In the heart of the bookshop district is one of Baghdad’s oldest coffee shops, Shabandar cafe, which opened its doors over a century ago and has since become a landmark in the city. The establishment has born witness to the twists and tragedies of Iraq’s tumultuous history.
“Shabandar cafe is an open corner for poets and intellectuals, and visitors as well, as they read about the latest cultural news through physical newspapers that are always on each table. This area is where the most prominent cultural activities in the capital (take place),” Ebrahim explained.
Al-Mutanabbi’s poems are also honored through 10, 3-meter-high scrolls. The works are written in a font that has the characteristics of the 4th century in the style of Ibn Al-Bawwab, the famous calligrapher who was born about a year after Al-Mutanabbi’s death.
“We’re presenting a mini cultural week that encompasses many experiences, not just books and literature, but also extends to musical performances; and an absorption between the two cultures and deepening that relationship,” he added.
As the Ministry of Culture, this venture has been initiated for two years and we plan on having Saudi cultural nights in Baghdad as well in 2025.
Alataf Ebrahim, Iraqi Ministry of Culture, Tourism and Antiquities official
Visitors can also indulge in local delicacies from both countries while enjoying the live folk music and dance performances that take place twice daily on the main stage.
The festival’s concert series featured an iconic performance by Iraqi singer Kadim Alsahir on the opening day, and a joint oud performance by Saudi singer and songwriter Abadi Al-Johar and Iraqi artist Naseer Shamma on Dec. 21.
The last show of the series will be on Dec. 25, featuring Aseel Hameem and Nawaf Al-Jabarti.
Over 100 artworks are on display at the “Beneath the Gaze of the Palms” exhibition, which examines questions of identity and heritage in Iraq and Saudi Arabia. The showcase includes Islamic, Mesopotamian and contemporary art.
At the entrance of the exhibition is a large structure known as the Mudhif, which is a traditional reed house, particularly in the Al-Ahwar region of southern Iraq. It is a type of communal guesthouse or gathering space that plays a central role in the social and hospitality traditions of the region.
A large part of the exhibition highlights Darb Zubaida, one of the historical pilgrimage routes from the city of Kufa to Makkah that not only facilitated the movement of people, goods, and ideas but also played a crucial role in the cultural and religious life of the Islamic world.
“This road became a place for exchanging ideas with our communities in the Kingdom. Saudi poetry and handicrafts were transferred to Iraq while Iraqi literary and cultural heritage was transferred to Saudi Arabia.
“This is an important aspect of the exhibition, alongside the many artworks that spotlight the traditional, modern, and contemporary art and the traditional tales that are embodied by the contributions of the participating artists.”
The festival also features an exhibition dedicated to the history of traditional clothing, musical instruments, songs, and significant cultural figures of Saudi Arabia and Iraq.
The festival, which runs until Dec. 31, is being held at Mega Studio in Riyadh’s Boulevard City.
Creative youth collective hosts art auction in Jeddah with jazz, community spirit
- One of Nama’s key collaborators, Mohammad Aboalola, founder and writer at Mena Youth Magazine, expressed his admiration for the collective’s approach: “Nama and Menayouth struck a chord in terms of their values and vision
JEDDAH: Nama, a new collective dedicated to empowering young creatives, hosted its first event in Jeddah this week at the bustling Huna Alhabib.
The two-day Jazz Night and Silent Art Auction was a display of the power of collaboration and a cultural celebration.
Nama’s debut featured more than 30 pieces by artists from Saudi Arabia, Egypt, the UAE, Kuwait, Bahrain, Spain, Canada, and beyond. These works were donated specifically for the auction to bridge artistic communities across borders.
Jana Abdulaziz, Nama’s founder and director, told Arab News: “For the longest time, Nama was nothing more than an online group of about a dozen high schoolers that joined solely off the identity statement I wrote. No logo, no solid plans, just an idea.
“I remember a couple months in with next to no progress almost giving up the idea of having an event or Nama becoming anything. I reached out to potential sponsors and hundreds of local and international artists from my personal accounts as a last-ditch effort, expecting nothing ... and to my surprise, people did.”
With the participation of 15-plus local brands and businesses as vendors, the event was much more than an art exhibition. Visitors enjoyed an immersive experience complete with live jazz and blues performances, as well as an artist sketching portraits of guests.
The event seems to have resonated with artists and attendees alike. Yousef Zaini, a local artist and artwork donor, said: “As an artist, my work is intended to invoke emotions, raise questions, and offer perspectives. I borrow heavily from my readings in philosophy.
“I’m honored to work with Nama and showcase my works and share the philosophies they embody. The event organized by Nama was a great mix and I am eager to collaborate with them in the future. Much better is to come.”
French-Tunisian artist E. L. Seed donated one of his lithographs to Nama, describing it as a valuable opportunity. He said that participating in Nama was a chance to support the event and inspire young artists, emphasizing that no event is too big or small when it comes to reaching art enthusiasts, especially in Jeddah.
The idea for Nama came to Abdulaziz in late 2023. Despite initial setbacks, her determination and passion brought the project to life. The seamless blend of jazz music and visual art has created an atmosphere that elevated creativity and engagement, bringing people together to celebrate the cultural richness of the region.
Jwan Abdulhafeez, Nama’s head of media, said: “We wanted our launch event to be more than just an auction, we envisioned a true celebration of art, culture, and fun. The evening featured a carefully curated silent art auction that showcased emerging talent while creating an atmosphere of sophistication with live jazz performances.
“Through the silent art auction, we were able to connect talented artists with art enthusiasts, creating meaningful relationships within our community.”
The auction was a celebration of global perspectives and artistic diversity, featuring works from renowned artists while providing a platform for young creatives to share their stories and build connections in the art world.
One of Nama’s key collaborators, Mohammad Aboalola, founder and writer at Mena Youth Magazine, expressed his admiration for the collective’s approach: “Nama and Menayouth struck a chord in terms of their values and vision. When Nama approached Menayouth for us to help with managing media and activities, their approach to things proved that they have ultimate care for who they work with. They came up to us offering to deal with the event as if it was our own.”
