NEW YORK: Saudi Arabia and Russia are working on a historic long-term pact that could extend controls over world crude supplies by major exporters for many years.
Saudi Crown Prince Mohammed bin Salman said that Riyadh and Moscow were considering a deal to greatly extend a short-term alliance on oil curbs that began in January 2017 after a crash in crude prices.
“We are working to shift from a year-to-year agreement to a 10 to 20 year agreement,” the crown prince told Reuters in an interview in New York late on Monday.
“We have agreement on the big picture, but not yet on the detail.”
Russia, not a member of the Organization of the Petroleum Exporting Countries, has worked alongside the 14-member group during previous oil gluts, but a 10 to 20 year deal between the two would be unprecedented.
Top OPEC producer Saudi Arabia recruited Russia and other non-OPEC countries to help drain oversupply when oil prices collapsed to below $30 a barrel in 2016 from over $100 in 2014.
Crude has since recovered to $70 but fast-rising output from US shale producers has capped prices.
“This is all about whether the arrangement is a short-term expedient to deal with this particular crisis in the oil market, or whether it reflects a realignment in world oil,” said oil historian Daniel Yergin, vice chairman at consultancy IHS Markit.
“OPEC countries want to find a way to institutionalize this relationship rather than to have it be a one-shot deal.”
Robert McNally at consultancy Rapidan Energy Group said Riyadh wanted help in breaking the boom-bust cycles that characterize oil markets by capping crude on the upside as well as by helping lift low oil prices.
“History shows that without a long-term, powerful, competent coherent, disciplined swing producer in the oil markets ... you get space-mountain oil prices. Wild volatility of the sort we have seen in the past 10 to 15 years and that Saudi Arabia and Russia do not want to see again,” McNally said.
He said that would require Russia to join Saudi in building spare production capacity to use when prices rise too much.
SAUDI, RUSSIA ALLIANCE “THICKER THAN OIL“
A long-term pact between Moscow and Riyadh would effectively co-opt Russia to the Saudi-led OPEC cartel while strengthening Russia’s hand in the Middle East where the United States has long been the dominant super-power.
News of the potential oil alliance came at a time when the two have been working to cement an economic relationship despite being at odds over the conflict in Syria, where they back opposing sides.
A meeting between the Saudi crown prince and Russian president Vladimir Putin on the sidelines of a G20 meeting in China in September 2016 was instrumental in bringing Russia on board to support OPEC, non-OPEC oil curbs.
Last October, Saudi King Salman became the first Saudi monarch to visit Russia, providing investment and political support for a Russian economy battered by Western sanctions.
“It is a very important strategic development,” Helima Croft at RBC Capital Markets said of a potential 10 to 20 year Saudi-Russia oil collaboration.
“First, the Crown Prince is making the statement, not the oil minister, one more clear sign that he (like Putin) is the final word on his country’s oil policy.
“Second it is one more sign of the major reversal in Saudi-Russia relations. Saudi was a staunch cold war ally of the US Now this Russia-Saudi alliance appears to be thicker than oil and seems to be driven by the personal affinity between Putin and MBS,” said Croft.
ARAMCO IPO LATE 2018, EARLY 2019
The crown prince predicted that world oil demand would not peak until 2040, despite advances in renewable energy technologies and the electric vehicle.
In an attempt to end Saudi Arabia’s reliance on oil, he is leading a push to diversify the Saudi economy away from oil and gas by 2030.
Riyadh plans to raise funds through the flotation of a 5 percent stake in state Saudi oil company Aramco. Time is running out for an initial public offering this year but the crown prince said the IPO could still take place at the end of 2018 or in early 2019, depending on financial market conditions.
Saudi Oil Minister Khalid Al-Falih said last week that documentation was ready but that a venue for the IPO had not yet been decided. The New York stock exchange is still in the running for the IPO, alongside London and Hong Kong, but Falih said there was a risk of a “frivolous” legal action if Aramco were listed in the United States.
OPEC seeks oil alliance with Russia for next 10-20 years - Saudi crown prince
OPEC seeks oil alliance with Russia for next 10-20 years - Saudi crown prince
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Kentucky Derby winner Sovereignty won’t run in the Preakness, dashing Triple Crown possibility
- Sovereignty trainer Bill Mott on Sunday morning had foreshadowed skipping the Preakness in the name of long-term interests
- This is the fifth time since Justify won all three races in 2018 that the Preakness will go on without a true shot at a Triple Crown
- No decision has been made on second-place finisher Journalism, who was the Derby favorite, or third-place Baeza for the 150th running of the Preakness
NEW YORK: Kentucky Derby winner Sovereignty will not run in the Preakness Stakes, officials announced Tuesday, meaning there won’t be a Triple Crown champion for a seventh consecutive year.
“We received a call today from trainer Bill Mott that Sovereignty will not be competing in the Preakness,” said Mike Rogers, executive VP of 1/ST Racing, which operates the Preakness. “We extend our congratulations to the connections of Sovereignty and respect their decision.”
Mott told Preakness officials the plan will be to enter Sovereignty in the Belmont Stakes, the third jewel of the Triple Crown, on June 7 at Saratoga Race Course in upstate New York. Mott on Sunday morning had foreshadowed skipping the Preakness in the name of long-term interests.
“We want to do what’s best for the horse,” he told reporters at Churchill Downs in Louisville, Kentucky. “Of course, you always think about a Triple Crown, and that’s not something we’re not going to think about.”
Sovereignty won a muddy Derby with jockey Junior Alvarado at odds of 7-1 by passing favorite Journalism down the stretch.
Owner Godolphin’s US director of bloodstock, Michael Banahan, deferred an explanation to Mott in a text message sent to The Associated Press, calling it a team decision that “both feel it’s the right direction for the horse going forward.” A message left for Mott was not immediately returned.
This is the fifth time since Justify won all three races in 2018 that the Preakness will go on without a true shot at a Triple Crown. Elevated winner Country House and Maximum Security, who was disqualified for interference, each did not participate in 2019, the races were run out of order in 2020, Bob Baffert-trained Medina Spirit was DQ’d for a positive drug test in 2021 and long shot Rich Strike was held out in 2022 to rest him for the previously planned five weeks.
Mage finished third in the Preakness in 2023, and Mystik Dan was second last year after his owner and trainer also were initially reluctant to run him. The two-week turnaround from the Kentucky Derby to the Preakness and changes in modern racing have sparked debate around the sport about spacing out the races.
Prominent owner Mike Repole earlier Tuesday posted on social media a proposal to move the Belmont to second in the Triple Crown order, four weeks after the Kentucky Derby and sliding the Preakness back further with the aim of keeping more of the top horses involved.
“The Preakness being run two weeks after the Kentucky Derby, in this new day and age in racing, shows the lack of vision and leadership needed to evolve this sport,” Repole wrote. “I expect the top three finishers of this year’s Derby to skip the Preakness and go right to the Belmont.”
No decision has been made on second-place finisher Journalism, who was the Derby favorite, or third-place Baeza for the 150th running of the Preakness, the last at Pimlico Race Course before it is knocked down and rebuilt. The plan is for the 2026 Preakness to take place at Laurel Park between Baltimore and Washington while Pimlico is under construction.
Trump vows ‘seamless’ experience for 2026 World Cup fans
- Vice President JD Vance, the vice-chair of the World Cup task force, said while foreign visitors would be welcome they would have to leave at the end of the tournament
- Infantino, the president of football’s world governing body, said his organization had “full and entire” confidence in the Trump administration to help deliver a successful tournament
WASHINGTON: US President Donald Trump said Tuesday that all fans from across the globe would be welcome at the 2026 World Cup despite concerns over his border crackdown impacting the tournament.
Trump, who has appointed himself chairman of the White House task force for the tournament, said visitors to the US could expect a “seamless” experience.
The US is co-hosting the 2026 World Cup with neighboring Canada and Mexico.
“We can’t wait to welcome soccer fans from all over the globe,” Trump said at a White House briefing alongside FIFA President Gianni Infantino.
“Every part of the US government will be working to ensure that these events are safe and successful, and those traveling to America to watch the competition have a seamless experience during every part of their visit.”
Foreign traveler arrivals in the US are expected to decline by 5.1 percent in 2025, according to one recent study by Tourism Economics.
The World Tourism Forum Institute has said a mix of stringent US immigration policies and global political tensions could “significantly affect” international arrivals.
Vice President JD Vance, the vice-chair of the World Cup task force, said while foreign visitors would be welcome they would have to leave at the end of the tournament.
“I know we’ll have visitors, probably from close to 100 countries. We want them to come. We want them to celebrate. We want them to watch the game,” Vance told Tuesday’s briefing. “But when the time is up, they’ll have to go home.”
Infantino, the president of football’s world governing body, said his organization had “full and entire” confidence in the Trump administration to help deliver a successful tournament.
“The entire world will focus on the United States of America, and America welcomes the world,” Infantino told the meeting. “Everyone who wants to come here to enjoy, to have fun, to celebrate the game will be able to do that.
Homeland Security Secretary Kristi Noem said US officials were using next month’s FIFA Club World Cup as a testing ground for the World Cup, stating that the US expected 2 million overseas visitors.
“We’re processing those travel documents and visa applications already ... that is obviously going to be a precursor to what we can do next year for the World Cup as well,” Noem said. “It is all being facilitated.”
Trump, meanwhile, said he was confident of working closely with Canada and Mexico despite his broiling trade disputes with the two World Cup co-hosts.
“I don’t see any tension either,” Trump said, shortly after meeting Canada’s Prime Minister Mark Carney. “We get along very well with both.”
Flights to and from Yemen’s Sanaa airport suspended following Israeli attack, director says
All flights to and from Yemen’s Sanaa International Airport have been suspended until further notice due to extensive damage following Israeli strike, the airport’s general director said on Wednesday in a post on X.
The Israeli military carried out an airstrike on Yemen’s main airport in Sanaa on Tuesday, its second attack in two days on Iran-aligned Houthis after a surge in tensions between the group and Israel.
Gaza rescuers say 31 killed in Israeli strikes on school sheltering displaced
GAZA CITY: Gaza’s civil defense agency said Wednesday that Israeli strikes on a school sheltering displaced people in the war-ravaged Palestinian territory killed 31 people and wounded dozens, with Israel saying it had targeted Hamas militants.
Gaza civil defense media officer Ahmad Radwan told AFP that a total of 31 people were killed and dozens more wounded in Israeli strikes “on a school sheltering displaced persons” in the Bureij refugee camp in the center of the Gaza Strip.
The Israeli military meanwhile said in a statement that its forces had struck a “Hamas command and control center in the central Gaza Strip” which was used “to store weapons.”
The strikes came as Israel drew international condemnation on Tuesday over its plans for an expanded Gaza offensive, as the country’s far-right finance minister called for the Palestinian territory to be “destroyed.”
Nearly all of Gaza’s 2.4 million people have been displaced at least once during the war, sparked by Hamas’s October 7, 2023 attack on Israel.
On Tuesday, Hamas dismissed as pointless ceasefire talks with Israel, accusing it of waging a “hunger war” on Gaza.
Israel’s military resumed its offensive on the Gaza Strip in March, ending a two-month truce that saw a surge in aid into the territory and the release of hostages in exchange for Palestinian prisoners held by Israel.
Gaza aid dries up as Israeli blockade enters a third month
- The current blockade has lasted longer than any previous Israeli halt in aid to Gaza since the Israel-Hamas war began
JERUSALEM: Israel has blockaded all entrances to the Gaza Strip since March.
While pummeling the strip with airstrikes, it has banned any food, water, shelter or medication from being trucked into the Palestinian territory, where the UN says the vast majority of the population is reliant on humanitarian aid to survive. Israel says the blockade aims to pressure Hamas to release the hostages it still holds. Of the 59 captives remaining in Gaza, 21 are believed to still be alive, US President Donald Trump said Tuesday, revealing that three had died.
Here’s a look at the humanitarian crisis spiraling in Gaza, through key statistics and charts:
The current blockade has lasted longer than any previous Israeli halt in aid to Gaza since the Israel-Hamas war began. Hamas attacked Israel on Oct. 7, 2023 and Israel froze aid to Gaza for two weeks.
Now, Gaza is entering its third month without supplies. Thousands of trucks queue along the border of the territory, waiting to be let in. Community kitchens are closing down and bakeries are running out of fuel. Families spend hours waiting in line for small portions of rice.
In their desperation, Palestinians have begun scavenging warehouses and stores for anything left. Aid groups report a rise in looting incidents over the last week. At least some have been looted by armed groups.
Meanwhile, Israel is moving forward with plans to seize all of Gaza and to stay in the Palestinian territory for an unspecified amount of time. It says it will expand operations there, defying calls for an immediate renewal of a ceasefire from families whose relatives are still held hostage in Gaza.
Israel’s offensive has displaced more than 90 percent of Gaza’s population and, Palestinian health officials say, killed more than 52,000 people, many of them women and children. Palestinian officials do not distinguish between combatants and civilians in their count.
