Oil rises on ongoing OPEC-led supply cuts, fall in US rig count

High drilling activity last year resulted in a more than 2 million bpd rise in US production, to 12.1 million bpd reached this February. (Reuters)
Updated 12 March 2019
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Oil rises on ongoing OPEC-led supply cuts, fall in US rig count

  • ‘Downward revisions in global growth forecasts by OECD and ECB have capped bullish gains’
  • Oil markets have generally been supported this year by ongoing supply cuts led by OPEC and some non-affiliated allies

SINGAPORE: Oil prices rose on Monday, lifted by comments from Saudi oil minister Khalid Al-Falih that an end to OPEC-led supply cuts was unlikely before June and a report showing a fall US drilling activity.
US West Texas Intermediate (WTI) crude oil futures were at $56.39 per barrel at 0323 GMT, up 32 cents, or 0.6 percent from their last close.
Brent crude futures were at $65.04 per barrel, up 30 cents, or 0.5 percent.
Despite the gains, markets were somewhat held back after US employment data raised concerns that an economic slowdown in Asia and Europe was spilling into the United States, where growth has so far still been healthy.
“Downward revisions in global growth forecasts by OECD and ECB have capped bullish gains,” said Benjamin Lu of Singapore-based brokerage Phillip Futures.
Oil markets have generally been supported this year by ongoing supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and some non-affiliated allies like Russia — known as the OPEC+ alliance. OPEC+ has pledged to cut 1.2 million barrels per day (bpd) in crude supply since the start of the year to tighten markets and prop up prices.
The group will meet in Vienna on April 17-18, with another gathering scheduled for June 25-26, to discuss supply policy.
Saudi oil minister Khalid Al-Falih said on Sunday it would be too early to change OPEC+ output policy at the group’s meeting in April.
“We will see what happens by April, if there is any unforeseen disruption somewhere else, but barring this I think we will just be kicking the can forward,” Al-Falih said.
Prices were also supported by US energy services firm Baker Hughes’ latest weekly report showing the number of rigs drilling for new oil production in the United States fell by nine to 834.
High drilling activity last year resulted in a more than 2 million bpd rise in production, to 12.1 million bpd reached this February, making the United States the world’s biggest producer of crude oil ahead of Russia and Saudi Arabia.
The slowdown in drilling points to more timid output growth going forward, but because the overall drilling level remains relatively high despite the recent decline, many analysts still expect US crude output to rise above 13 million bpd soon.
“This is the third straight week of decline ... after a number of oil producers trimmed their spending outlooks for 2019,” ANZ bank said on Monday.


Protesters in Pakistan’s north continue blockade of key highway to China over power outages

Updated 11 min 49 sec ago
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Protesters in Pakistan’s north continue blockade of key highway to China over power outages

  • Residents of Gilgit-Baltistan started a sit-in on Jan.1, vowing to protest until they got reliable electricity
  • Despite the area’s significance, some residents say they only get electricity for 30 minutes in 24 hours

ISLAMABAD: Hundreds of protesters in Pakistan’s northern Hunza Valley blocked the Karakoram Highway (KKH) for the sixth consecutive day on Tuesday, demonstrating against severe power outages during the region’s freezing winter.
The protest, which began on January 1, involves local residents, political parties and civil society groups who vowed to continue their sit-in until their demands for reliable electricity were met.
Demonstrators on Tuesday voiced frustration over the Gilgit-Baltistan government’s failure to ensure even a few hours of power each day, saying over 80,000 people were struggling for basic needs.
The KKH, a vital trade and strategic route linking Pakistan with China, has been obstructed at Aliabad, the district headquarters of Hunza. The area plays a critical role in bilateral trade facilitated by the China-Pakistan Economic Corridor (CPEC), which has increased since an agreement to keep the Khunjerab Pass open year-round for economic exchanges.
“This is a nerve-breaking power outage in Hunza,” said Baba Jan, a protester, speaking at the sit-in. “We are getting power only 30-40 minutes in 24 hours.
“It is very cold here,” he added. “The temperature drops to minus 15 at night. Students don’t have Internet due to the power outage. There are issues in lighting, heating and cooking that people are facing here.”
Rehan Shah, another protester agreed, emphasizing the area’s important defense and strategic location.
“It’s the gate of CPEC and Pakistan-China connectivity,” he noted. “People here are hardly getting power for one hour and twenty minutes during the daytime. They’ve been out protesting on the streets for the last six days.”
Power cuts, known locally as load shedding, are a chronic issue in Pakistan, with many areas facing significant disruptions. The harsh winters in Gilgit-Baltistan exacerbate the problem, leaving residents without adequate heating or access to essential services.
Last week, Hamid Hussain, an engineer at the Gilgit-Baltistan Water and Power Department, acknowledged the issue but attributed it to technical limitations.
“The region heavily relies on hydropower, which often faces disruption in winter due to the freezing of rivers and lakes,” he told Arab News.
“There are 137 power stations in Gilgit-Baltistan,” he added. “The installed capacity of these power stations is 190 megawatts. However, power generation is 140 megawatts during the summer while 76 megawatts during the winter due to the low flow of water.”
Protesters have demanded thermal power generators to supplement energy needs during the winter, but Hussain said they were costly and were hard to implement due to financial constraints.


Diplomat pays tribute as 89 Pakistani devotees attend Sufi saint’s death anniversary in India

Updated 08 January 2025
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Diplomat pays tribute as 89 Pakistani devotees attend Sufi saint’s death anniversary in India

  • Religious devotees are commemorating the 813th anniversary of Khwaja Moinuddin Chishti in Ajmer
  • Despite strained relations between the two nuclear-armed states, cultural and exchanges continue

ISLAMABAD: A group of 89 Pakistani devotees began attending the 813th annual Urs, or death anniversary commemoration, of the 12th-century Sufi saint Khwaja Moinuddin Chishti in India, with a Pakistani diplomat laying a traditional chaddar, or ceremonial cloth, at his shrine on Tuesday.

Born in 1141 in Sistan, modern-day Iran, Chishti arrived in India in the late 12th century and gained a following for his teachings of compassion and service to humanity, which resonated deeply with the region’s marginalized communities. Known as Gharib Nawaz, or Benefactor of the Poor, he established the Chishti Order of Sufism in South Asia.

His legacy as a symbol of interfaith harmony endures through his shrine in Ajmer, Rajasthan, which draws millions of devotees annually, particularly during the commemoration of his death anniversary.

“To participate in the 813th annual Urs Mubarak of Hazrat Khwaja Syed Moinuddin Hasan Chishti (RA), a group of 89 Pakistani Zaireen [pilgrims] is in Ajmeer Sharif from 7-9 January 2025,” the Pakistan High Commission said on X, formerly Twitter.

“Pakistani Zaireen accompanied by Second Secretary, Pakistan High Commission, New Delhi, Mr. Tariq Masroof, placed the traditional Chaddar at the Shrine of Hazrat Khwaja Syed Moinuddin Hasan Chishti,” it added.

The event underscores how cultural and religious exchanges have persisted between India and Pakistan despite strained diplomatic relations since August 2019, when New Delhi revoked Kashmir’s special constitutional status. The disputed Himalayan region has long been a flashpoint between the two nuclear-armed neighbors, who have fought wars and numerous border skirmishes over it.

Religious tourism remains a crucial element of people-to-people exchanges under the 1974 Protocol on Visits to Religious Shrines, which permits citizens of both nations to visit sacred sites. These include Hindu and Sikh temples in Pakistan and Islamic shrines in India.

At the beginning of the year, the Pakistan High Commission announced it had issued 94 visas to Indian nationals to attend the birth anniversary of an 18th-century Hindu spiritual leader in Sindh province.
Pakistan has also promoted religious tourism by hosting Buddhist monks, as well as Hindu and Sikh pilgrims from India and other countries.


Wildfire rages in Los Angeles, forcing 30,000 to evacuate

Updated 08 January 2025
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Wildfire rages in Los Angeles, forcing 30,000 to evacuate

  • Wildfire forces 30,000 evacuations in upscale Los Angeles area
  • Evacuations cause traffic jams, residents flee on foot

LOS ANGELES: A rapidly growing wildfire raged across an upscale section of Los Angeles on Tuesday, destroying homes and creating traffic jams as 30,000 people evacuated beneath huge plumes of smoke that covered much of the metropolitan area.
At least 2,921 acres (1,182 hectares) of the Pacific Palisades area between the coastal settlements of Santa Monica and Malibu had burned, officials said, after they had already warned of extreme fire danger from powerful winds that arrived following extended dry weather.
The fire spread as officials warned the worst wind conditions were expected to come overnight, leading to concerns that more neighborhoods could be forced to flee. The city of Santa Monica later ordered evacuations in the northern fringe of town.
Witnesses reported a number homes on fire with flames nearly scorching their cars when people fled the hills of Topanga Canyon, as the fire spread from there down to the Pacific Ocean.
“We feel very blessed at this point that there’s no injuries that are reported,” Los Angeles Fire Chief Kristin Crowley told a press conference, adding that more than 25,000 people in 10,000 homes were threatened.
Firefighters in aircraft scooped water from the sea to drop it on the nearby flames. Flames engulfed homes and bulldozers cleared abandoned vehicles from roads so emergency vehicles could pass, television images showed.
As the sun set over Los Angeles, towering orange flames illuminated the hills leading to Topanga Canyon.
The fire singed some trees on the grounds of the Getty Villa, a museum loaded with priceless works of art, but the collection remained safe largely because of preventive efforts to trim brush surrounding the buildings, the museum said.
With only one major road leading from the canyon to the coast, and only one coastal highway leading to safety, traffic crawled to a halt, leading people to flee on foot.
Cindy Festa, a Pacific Palisades resident, said that as she evacuated out of the canyon, fires were “this close to the cars,” demonstrating with her thumb and forefinger.
“People left their cars on Palisades Drive. Burning up the hillside. The palm trees — everything is going,” Festa said from her car.
Before the fire started, the National Weather Service had issued its highest alert for extreme fire conditions for much of Los Angeles County from Tuesday through Thursday, predicting wind gusts of 50 to 80 mph (80 to 130 kph).
With low humidity and dry vegetation due to a lack of rain, the conditions were “about as bad as it gets in terms of fire weather,” the Los Angeles office of the National Weather Service said on X.
Governor Gavin Newsom, who declared a state of emergency, said the state positioned personnel, firetrucks and aircraft elsewhere in Southern California because of the fire danger to the wider region, he added.
“Hopefully, we’re wrong, but we’re anticipating other fires happening concurrently,” Newsom told the press conference.
A second blaze dubbed the Eaton Fire later broke out some 30 miles (50 km) inland in the foothills above Pasadena, consuming 200 acres (80 hectares), Cal Fire said.
The powerful winds changed President Joe Biden’s travel plans, grounding Air Force One in Los Angeles. He had planned to make a short flight inland to the Coachella Valley for a ceremony to create two new national monuments in California but the event was rescheduled for a later date at the White House.
“I have offered any federal assistance that is needed to help suppress the terrible Pacific Palisades fire,” Biden said in statement. A federal grant had already been approved to help reimburse the state of California for its fire response, Biden said.
Pacific Palisades is home to several Hollywood stars. Actor James Woods said on X he was able to evacuate but added, “I do not know at this moment if our home is still standing.”
Actor Steve Guttenberg told KTLA television that friends of his were impeded from evacuating because others had abandoned their cars in the road.
“It’s really important for everybody to band together and don’t worry about your personal property. Just get out,” Guttenberg said. “Get your loved ones and get out.”


Wild weather halted ferries between New Zealand’s main islands again. Why isn’t there a tunnel?

Updated 08 January 2025
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Wild weather halted ferries between New Zealand’s main islands again. Why isn’t there a tunnel?

WELLINGTON: Wild weather during New Zealand ‘s peak summer holiday period has disrupted travel for thousands of passengers on ferries that cross the sea between the country’s main islands.
The havoc wrought by huge swells and gales in the deep and turbulent Cook Strait between the North and South Islands is a recurring feature of the country’s roughest weather. Breakdowns of New Zealand’s aging ferries have also caused delays.
But unlike in Britain and Japan, New Zealand has not seriously considered an undersea tunnel beneath the strait that more than 1 million people cross by sea each year. Although every New Zealander has an opinion on the idea, the last time a prime minister was known to have suggested building one was in 1904.
A tunnel or bridge crossing the approximately 25-30 kilometers (15-18 miles) of volatile sea is so unlikely for the same reason that regularly vexes the country’s planners — solutions for traversing New Zealand’s remote, rugged and hazard-prone terrain are logistically fraught, analysts said.
Why isn’t a tunnel practical?
A Cook Strait tunnel would dramatically reduce the three- to four-hour sailing time between the North Island, home to 75 percent of the population, and the South.
“But it would chew up, off the top of my head, about 20 years of the country’s entire transport infrastructure development budget in one project,” said Nicolas Reid, transport planner at MRCagney.
He estimated a cost for a tunnel of 50 billion New Zealand dollars ($28 billion), comparable in today’s terms to the price of the undersea tunnel that connects Britain and Europe by rail. New Zealand is the same size as the United Kingdom — but the UK has a population of 69 million, more than 13 times New Zealand’s.
It’s also about the same size as Japan, which is home to the Seikan undersea rail tunnel connecting the islands of Honshu and Hokkaido — and has a population of 124 million.
“We have a large infrastructure burden if we want to reach out across the country,” said Reid. “And we’ve only got 5 million people to pay for it.”
New Zealand’s volatile ground could also prove a problem. Perched on the boundary between tectonic plates, fault lines run under both the North and South Islands and earthquakes are sometimes centered in the strait, said seismologist John Risteau of GNS.
Opposing tides and winds make journeys unpredictable
Sailing on both Cook Strait ferry services — which have five ships transporting people, vehicles and freight — resumed Tuesday after two days of dangerous waves. Clearing the backlog meant more waiting and some passengers on one carrier said they could not book a new berth for a fortnight.
The Cook Strait is less calm than many worldwide because it features opposing tides at each end — one where it joins the Tasman Sea and the other where it meets the Pacific Ocean.
“We tend to have the prevailing, dominating wind funnel through Cook Strait, northerlies or southerlies, and that’s why they’re stronger there,” said Gerard Bellam, a forecaster for the weather agency MetService. Swells in the strait this week reached 9 meters (30 feet), he said.
Julia Rufey, an English tourist waiting at the Wellington terminal, said she had flown between North Island and South Island on previous trips, but “adventure” had prompted her to choose the ferry.
“We thought, come to Wellington, try the ferry, which is already 3 1/2 hours late,” she said.
No clear plans on what to do about aging ferries
The ferries themselves, prone to breakdowns and more than half of them state-owned, have long been a political hot potato. The current government scrapped their predecessors’ plan to replace the vessels before they become defunct in 2029 as too costly. The opposition has criticized the government for only partly revealing its new ferry replacement plan in December and for not divulging the cost.
Still, some delayed on Tuesday said they would choose the ferry even if they had alternatives. Laurie Perino, an Australian tourist, said the pristine and scenic ocean views had prompted her to book.
“It would be more convenient,” she said, referring to a Cook Strait tunnel. “But I think a lot of people would still like to travel on the ferry.”


Pakistani authorities deny detaining 800 Afghans, say only repatriating illegal immigrants

Updated 08 January 2025
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Pakistani authorities deny detaining 800 Afghans, say only repatriating illegal immigrants

  • Afghan embassy recently said Islamabad administration was making arrests, targeting registered refugees
  • Pakistani authorities announced in November Afghan nationals would require NOCs to stay in Islamabad

ISLAMABAD: The Islamabad Capital Territory (ICT) administration on Tuesday rejected claims by Afghanistan’s diplomatic mission it had detained approximately 800 Afghan citizens, asserting it was only repatriating illegal foreign nationals in accordance with the law.

Pakistan, which hosted over four million Afghan refugees after the Soviet invasion of Afghanistan in 1979, registered these individuals with the United Nations Refugee Agency (UNHCR). They were issued Proof of Registration (PoR) cards and Afghan Citizen Cards (ACC) to allow legal residence and access to services such as health care and banking.

Another wave of Afghan refugees arrived after the Taliban’s capture of Kabul in 2021 amid the withdrawal of US-led international forces. Confronted with economic challenges and a surge in militant violence perpetrated by groups reportedly operating from Afghan territory, Pakistan initiated a crackdown against “illegal immigrants,” mostly Afghans, citing security concerns.

Pakistani officials said in 2023 that some Afghan nationals had been involved in attacks, including suicide bombings, targeting civilians and security forces, a claimed denied by the administration in Kabul.

The Afghan embassy in Pakistan said on Monday authorities in Pakistan’s federal capital had detained about 800 Afghan nationals, including individuals registered with the UNHCR.

“It is clarified that only the illegal foreign nationals are being repatriated as per law of the land,” the ICT administration said in a statement.

“With regard to Afghan nationals, it is being clarified that those holding valid documentation— such as Proof of Registration (PoR) cards, Afghan Citizen Cards (ACC), visas, or those listed for third-country resettlement— are not being repatriated,” it added. “Islamabad Civil Administration remains committed to safeguarding the rights of all documented individuals.”

The statement further noted that search and combing operations were also conducted in compliance with the law, offering undocumented foreign nationals the chance to validate their status.

It also confirmed that in 2025, Islamabad authorities deported 183 illegal foreign nationals, while two were still in holding areas. Officials stressed that those deported lacked any legal documentation and reiterated that actions are taken strictly against undocumented individuals.

“The civil administration reaffirms its commitment to ensuring fair and humane treatment of all individuals while strictly adhering to legal requirements,” the ICT statement said, urging foreign nationals to carry valid documentation to avoid inconvenience.

Last year in November, Pakistani authorities announced that Afghan nationals would need no-objection certificates (NOCs) to stay in Islamabad. The decision followed the detention of several Afghan nationals who reportedly participated in a political rally by former Prime Minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party, which turned violent, resulting in casualties.

The Afghan embassy expressed concern over alleged “unwarranted arrests, home searches, and extortion targeting Afghan nationals,” highlighting the reported detentions, including 137 who, it said, were temporarily registered with the UNHCR and had applied for visa extensions.