Saudi Arabia regains position as world’s top oil exporter

Workers at an Aramco onshore rig. Saudi Arabia exported nearly 11 million barrels of oil per day in April. (Aramco)
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Updated 17 June 2020
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Saudi Arabia regains position as world’s top oil exporter

  • Kingdom knocks US off top spot it gained last year
  • IEA forecasts less dramatic fall in demand

DUBAI: Saudi Arabia has emerged from three months of oil market volatility as the world’s biggest oil exporter once more, knocking the US off the top slot it gained last year.

Industry experts calculated that in April — when oil prices crashed because of pandemic lockdowns — the Kingdom exported nearly 11 million barrels of oil per day, a record, and the US about 8.6 million barrels.

Both countries’ exports fell in May, after the historic OPEC+ deal to cut output, but the Kingdom was still ahead.

The trend is likely to continue for most of this year, as American production suffers from shut-ins and bankruptcies in its price-sensitive shale oil operations, despite continuing Saudi cuts.

“Over the course of the second quarter of 2020 as a whole Saudi Arabia ought to easily stay ahead of the chasing pack,” said the Middle East Economic Survey, which published the figures compiled by industry experts.

The US overtook Saudi Arabia as the world’s top exporter in the middle of last year. Since the price of the US benchmark, West Texas Intermediate, collapsed in April, many shale producers have cut back on their “rig count” and some have filed for bankruptcy.

Oil prices shrugged off weekend worries over a possible second wave of virus infection in China. Brent crude, the global benchmark, rose back above $40, while West Texas Intermediate stood at $37.

A report from the International Energy Agency forecast a less dramatic fall in 2020 oil demand than expected. Demand would be 91.7 million barrels per day, about 500,000 more than the agency’s previous forecast, but still the biggest fall in history. There would be no recovery in pre-pandemic air fuel demand until 2022 because of the “dire situation” in the aviation industry, the IEA said.

In China, oil demand had recovered fast in March and April, and Indian demand rose sharply in May. “While the oil market remains fragile, the recent modest recovery in prices suggests that the first half of 2020 is ending on a more optimistic note,” the agency said.

“Initiatives in the form of the OPEC+ agreement and the meeting of G20 energy ministers have made a major contribution to restoring stability to the market.”

The joint ministerial monitoring committee of the OPEC+ alliance meets at the end of this week to assess compliance with agreed cuts, amid some speculation that they could be extended for at least another month.


Japan ‘strongly condemns’ Israel’s attack on Iran

Updated 10 min 33 sec ago
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Japan ‘strongly condemns’ Israel’s attack on Iran

TOKYO: Japan has joined in the condemnation of Israel’s attack on Iran with Foreign Minister Takeshi Iwaya saying the attack “escalates the situation” in the Middle East, Japan’s Foreign Ministry reported.

“We deeply regret that military force was used despite ongoing diplomatic efforts, including talks between the US and Iran, to achieve a peaceful resolution to the Iranian nuclear issue,” Iwaya said. “Our country strongly condemns this action, which escalates the situation.”

Iwaya emphasized that peace and stability in the Middle East are “extremely important” to Japan and urged all parties involved to exercise maximum restraint.

He called for de-escalation of the situation, adding that the Japanese government will spare no effort to protect Japanese nationals residing in the region.

“We will continue to take all necessary measures to prevent further deterioration of the situation,” he said.

• This article also appears on Arab News Japan


Trump says had advance notice of Israeli strikes on Iran: Fox News

Updated 14 min 23 sec ago
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Trump says had advance notice of Israeli strikes on Iran: Fox News

  • Secretary of State Marco Rubio said earlier Thursday that the United States was “not involved in strikes against Iran and our top priority is protecting American forces in the region”

Washington: US President Donald Trump told Fox News he was aware Israel was going to conduct strikes on Iran before it happened, and stressed that Tehran “cannot have a nuclear bomb,” according to the US broadcaster.

His comments to Fox came after Israel pounded Iran in a series of air raids on Friday, striking 100 targets including nuclear and military sites.

Israeli Prime Minister Benjamin Netanyahu said the operation took aim at the atomic facility in Natanz, while Iranian media said the country’s Revolutionary Guards leader Hossein Salami and armed forces Chief of Staff Mohammad Bagheri were killed.

Trump told Fox News that he was made aware of Israel’s operation before it happened.

“Iran cannot have a nuclear bomb and we are hoping to get back to the negotiating table. We will see,” Trump said, according to Fox News.

Fox News also reported that “Trump noted the US is ready to defend itself and Israel if Iran retaliates.”

It added that Trump’s administration reached out to at least one key Middle Eastern ally to acknowledge that the strike was going to happen, but reiterated that the US was not involved.

Secretary of State Marco Rubio said earlier Thursday that the United States was “not involved in strikes against Iran and our top priority is protecting American forces in the region.”

“Let me be clear: Iran should not target US interests or personnel.”

Trump will be attending a National Security Council meeting Friday morning.


‘Ocean’ — bleak indictment of mankind offers a glimmer of hope

Updated 26 min 22 sec ago
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‘Ocean’ — bleak indictment of mankind offers a glimmer of hope

  • David Attenborough’s latest documentary is a vital, compelling call to action

JEDDAH: “Ocean with David Attenborough” was released regionally on Disney+ on June 8 — World Ocean Day. It hit cinemas in May, on the 99th birthday of its venerable and venerated presenter, the famed biologist and broadcaster.

Like all Attenborough-fronted nature docs, “Ocean” is gorgeously shot and an immersive viewing experience. But while the vast majority of his output leaves you speechless at the on-screen beauty, “Ocean” also strikes you dumb at the horrifying devastation wrought on the open seas by the 40,000+ super-sized fishing trawlers operating around our planet constantly.

Sweeping the seabed with their giant nets, these ships commit slaughter on an unimaginable scale, leaving little alive in their rapacious search for a few specific species that humans actually eat. In their wake they leave something akin to the dystopian portrayals of a nuclear winter in post-apocalyptic dramas. These grim, heart-breaking shots are interspersed with glorious, vibrant scenes of what a healthy seabed should look like — towering forests of kelp, sea meadows, abundant diverse communities of extraordinary marine life… A reminder of what we are destroying every minute of every day.

Attenborough lays out for us with all of his trademark passion and authority just what is at risk here. The seas, he stresses, are vital for the survival of humankind. And humankind is putting the seas in terrible jeopardy. Marine ecosystems are delicately balanced and linked in complex, subtle ways that we are only now beginning to understand. And industrial fishing is far from subtle. As Attenborough notes, if rainforests were being razed at this rate, the protests would be global and furious. But because this destruction takes place miles below the surface of the water, it goes mainly unnoticed. Incredibly, this mindless, untargeted carnage is not illegal; it is positively encouraged — and heavily subsidized — by many governments. 

Thankfully, there is hope. Attenborough reveals that scientists have discovered that — if left alone through the imposition of “no-take zones” — the oceans can recover at an incredible rate, and the most barren of sea floors can once again flourish in just a few years. There is now an international pact to turn one-third of Earth’s seas into no-take zones by 2030. And if this does happen — note the if — then there’s a good chance that man-made damage can be reversed not just in the water, but on land, as sea life is, it turns out, extremely adept at reducing carbon. The sea could save the world.

As nature documentaries go, it’s hard to imagine “Ocean” being bettered (except perhaps for the distracting clichéd mishmash that serves as its soundtrack, which deserves to be classified as a man-made disaster itself). This is a compelling, vital and urgent narrative delivered by an expert scientist and broadcaster accompanied by awe-inspiring, mind-boggling cinematography showing us wonders that most of us will never come close to seeing first-hand. And it lays out a path for survival. Whether we actually take that path...


Oil Updates — prices soar more than 9% after Israel strikes Iran, rattling investors 

Updated 27 min 44 sec ago
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Oil Updates — prices soar more than 9% after Israel strikes Iran, rattling investors 

SINGAPORE: Oil prices surged more than 9 percent on Friday, hitting their highest in almost five months after Israel struck Iran, dramatically escalating tensions in the Middle East and raising worries about disrupted oil supplies. 

Brent crude futures jumped $6.29, or 9.07 percent, to $75.65 a barrel by 06:15 a.m. Saudi time after hitting an intraday high of $78.50, the highest since Jan. 27. US West Texas Intermediate crude was up $6.43, or 9.45 percent, at $74.47 a barrel after hitting a high of $77.62, the loftiest since Jan. 21. 

Friday’s gains were the largest intraday moves for both contracts since 2022 after Russia invaded Ukraine, causing energy prices to spike. 

Israel said it targeted Iran’s nuclear facilities, ballistic missile factories and military commanders on Friday at the start of what it warned would be a prolonged operation to prevent Tehran from building an atomic weapon. 

“This has elevated geopolitical uncertainty significantly and requires the oil market to price in a larger risk premium for any potential supply disruptions,” ING analysts led by Warren Patterson said in a note. 

Several oil traders in Singapore said it was still too early to say if the strike will affect Middle East oil shipments as it will depend on how Iran retaliates and if the US will intervene. 

“It’s too early to tell but I think the market is worried about shutting off of the Strait of Hormuz,” one of the traders said. 

MST Marquee senior energy analyst Saul Kavonic said the conflict would need to escalate to the point of Iranian retaliation on oil infrastructure in the region before oil supply is materially impacted. 

He added that Iran could hinder up to 20 million barrels per day of oil supply via attacks on infrastructure or limiting passage through the Strait of Hormuz, in an extreme scenario. 

Iran’s Supreme Leader Ayatollah Ali Khamenei said Israel will receive “harsh punishment” following Friday’s attack that he said killed several military commanders. 

US Secretary of State Marco Rubio on Thursday called Israel’s strikes against Iran a “unilateral action” and said Washington was not involved while also urging Tehran not to target US interests or personnel in the region. 

“Iran has announced an emergency and is preparing to retaliate, which raises the risk of not just disruptions but of contagion in other neighbouring oil producing nations too,” said Priyanka Sachdeva, senior market analyst at Phillip Nova. 

“Although Trump has shown reluctance to participate, US involvement could further raise concerns.” 

In other markets, stocks dived in early Asian trade, led by a selloff in US futures, while investors scurried to safe havens such as gold and the Swiss franc. 


Norway’s Warholm shatters own world best time in 300m hurdles

Updated 31 min 35 sec ago
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Norway’s Warholm shatters own world best time in 300m hurdles

  • KarstenWarholm delivers for home crowd at Oslo Diamond League
  • Sweden’s Armand Duplantis cruises to pole vault victory

OSLO: Norwegian hurdling great Karsten Warholm destroyed his own world best time in the rarely run 300 meters hurdles at the Oslo Diamond League meeting on Thursday, chasing down American Rai Benjamin in a stunning finish.

Roared on by the home crowd, the 2020 Olympic champion came off the corner behind Benjamin but roared past the man who had beaten him for Olympic gold last year in Paris to finish in a blistering 32.67 seconds, breaking his previous mark of 33.05 set in April.

Warholm ripped off his shirt and spun it around his head in delight when his record time flashed on the Bislett Stadium screen.

“I never really went away of course, but it is good to be back for sure,” Warholm said. “I usually fade at the end of the 400, so the 300 suits me to some degree but I will be back strong in the 400 on Sunday (in Stockholm).

“The crowd was amazing as ever and the atmosphere was something else and I am just so happy that I could perform at my best in front of the support.”

Benjamin was second in 33.22, while Alison dos Santos of Brazil was third in 33.38.

World record holder Armand Duplantis of Sweden cruised to an easy victory in the pole vault, while Nico Young became the fastest American over 5,000 meters outdoors.

Julien Alfred opened her season with a win in the 100m to set the pace as the woman to beat at this year’s world championships in Tokyo.

Duplantis, a twice Olympic and world champion, cleared 6.15m and then called it a night rather than chase a world record attempt in chilly 14 C temperatures.

“It did get cooler so that was why I stopped jumping,” said Duplantis, who soared 6.27m in February to break the world mark for the 11th time.

“On Sunday in Stockholm it would be an absolute dream to break the world record, in fact I could retire if I do,” he said laughing.

“At the moment the forecast is good for Sunday and I am feeling good. I need to build on tonight and get ready now for the big one.”

“Crazy race“

Young outsprinted an excellent 5,000 field to win in 12 minutes 45.27 seconds in a race full of national records and personal bests.

While Young’s time was a US outdoor record, fellow American Grant Fisher clocked a world and national indoor record of 12:44.09 in February.

“It was a crazy race,” Young said. “This surprised me a little bit but I am really proud that I managed to stay on this pace all this time. The best is yet to come.”

Ethiopia’s Biniam Mehary and Kuma Girma crossed second and third respectively, while Englishman George Mills was fourth in 12.46.59 to obliterate the British record of 12:53.11 held by distance great Mo Farah.

Alfred, the first athlete from Saint Lucia to win an Olympic gold medal when she triumphed last year in Paris, enjoyed victory in the 100m in a time of 10.89 seconds.

“I was a little rusty but I got the win under my belt which is the main thing,” Alfred said. “As for my season I am Olympic champion so I am the one to beat but I really want to add world champion to my name as well.”

Paris Olympic champion Emmanuel Wanyonyi of Kenya raced to victory in the men’s 800m, holding off a fast-closing field over the final 100m to finish in 1:42.78.

“My body felt a little tired as I have come from Kenya so the travel has been long but I am happy with my performance against a strong field,” Wanyonyi said. “I am happy with the start to my season in this world championship year.”

Kenya’s Faith Cherotich won the women’s 3,000m steeplechase, outsprinting Olympic champion Winfred Yavi of Bahrain in a neck-and-neck battle over the final 200m, clocking 9:02.60 to edge Yavi by 0.16 seconds.

Haruka Kitaguchi of Japan, women’s javelin gold medalist at the Paris Games, threw almost a meter more than the rest of the field to win in Oslo with a toss of 64.63m.