NEW YORK: OPEC and allied oil-producing countries decided Thursday to maintain the amount of oil they pump to the world even as the new omicron variant casts a shadow of uncertainty over the global economic recovery from the coronavirus pandemic.
Officials from OPEC countries, led by Saudi Arabia, and their allies, led by Russia, voted to stick with a pre-omicron pattern of steady, modest monthly increases in oil releases — a pace that has frustrated the United States and other oil-consuming nations as gasoline prices rise.
The OPEC+ alliance approved an increase in production of 400,000 barrels per day for the month of January.
The fast-mutating variant led countries to impose travel restrictions when it emerged late last week. In a worst-case scenario, lockdowns triggered by omicron could cut oil demand by nearly 3 million barrels per day in early 2022, according to projections by Rystad Energy.
Positive news about drugs to treat the variant or the vaccines’ effectiveness against it could improve that outlook. But even with positive news, a decrease in oil demand is likely because “the distribution of these remedies may not actually reach all markets with extreme immediacy, which would still necessitate the lockdowns in much of the developing world,” said Louise Dickson, senior oil markets analyst for Rystad.
The price of a barrel of US benchmark crude fell with news of the variant and then fell further as OPEC+ revealed it wasn’t going to curtail production. It was about $78 a barrel a week ago and was trading at about $66 a barrel Thursday. International benchmark Brent crude followed a similar path, falling from $79 a barrel a week ago to about $69 on Thursday.
The decision by OPEC+ to stay the course sends a signal that “the group does what it says and that they will continue their policy on their own terms,” Dickson said. “It also really signals that OPEC+ needs a bit more time to really dig into the numbers on the omicron variant.”
Some analysts had predicted that the OPEC+ alliance — made up of OPEC members and allied non-members like Russia — would act cautiously Thursday, pending more clarity from medical experts on the new variant.
Before omicron’s appearance, the OPEC+ meeting had been shaping up as a potentially fraught moment in a growing dispute between oil-supplying nations and oil-consuming ones, as the global economy rebounds from the worst of the pandemic downturn and demand for oil surged.
Angering the US and its allies, OPEC+ has stuck to a plan to open the petroleum taps bit by bit — even as oil prices surged to seven-year highs — until deep production cuts made during the depths of the pandemic are restored.
With rising gas prices putting him under political pressure at home, President Joe Biden last week responded to OPEC’s refusal to increase supplies more quickly by announcing the US and other nations would release tens of millions of barrels of oil from their strategic reserves, boosting supplies and temporarily lowering prices. But gasoline prices in the US barely moved.
And then, omicron’s emergence unsettled those dynamics.
White House press secretary Jen Psaki said Thursday that there are no plans to slow releases from strategic reserves, despite the advent of the variant and OPEC’s decision.
“We welcome the decision today to continue the 400,000 barrels-per-day increase,” Psaki said. “We believe this should help facilitate the global economic recovery.”
OPEC+ will meet again Jan. 4.
OPEC+ sticks to modest boost in oil output despite omicron
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OPEC+ sticks to modest boost in oil output despite omicron

Death toll from Pakistan building collapse rises to 14

- Friday’s incident was the latest in a string of deadly building collapses in Karachi
- It laid bare the issue of unsafe housing in Karachi, home to over 20 million people
KARACHI: The death toll from a five-storey building collapse in the southern Pakistani city of Karachi rose to 14 on Saturday, officials said, after rescuers pulled three more bodies from the rubble overnight.
The Fotan Mansion residential building, where several families were said to be living, crumbled shortly around 10am on Friday in the impoverished Lyari neighborhood of the city.
Rescue workers, along with residents of the area, continued their operation to find survivors and bodies through the night, once again laying bare the issue of unsafe housing in Karachi.
“So far, we have received 14 bodies at the medico-legal section, including those of 12- and 13-year-old children,” Dr. Summayia Syed, the Karachi police surgeon, told Arab News on Saturday morning.
Many of the occupants were members of the low-income Hindu minority community and residents estimated that around 40 people were inside when the building collapsed.
According to the Sindh Building Control Authority (SBCA), Fotan Mansion had been declared unsafe as far back as 2012.
“This building was declared dangerous by the SBCA in 2012 and had been served multiple notices over the years,” SBCA spokesperson Shakeel Dogar told Arab News. “Before the recent rains, public announcements were also made in the area, but unfortunately, no one was willing to vacate.”
Friday’s incident is the latest in a string of deadly building collapses in Karachi.
In February 2020, a five-storey building collapsed in Rizvia Society, killing at least 27 people. The following month, another residential structure came down in Gulbahar, claiming 16 lives. In June 2021, a three-storey building in Malir collapsed, killing four. And just last year, in August, a building collapse in Qur'angi led to at least three deaths.
Karachi Mayor Murtaza Wahab said on Friday evening that rescue efforts remained their top priority, with accountability and investigation to follow.
“Once we’re done with the rescue aspect, we will focus on who was responsible for this negligence or omission,” he added.
Afghans both hopeful, disappointed after Russia’s Taliban recognition

- Russia became the first country to acknowledge the Taliban authorities on Thursday
- Move hailed as an opening for deeper cooperation, notably in economic and security arenas
KABUL: Russia’s decision to formally recognize the Taliban government has been seen as an opening for a stronger economy by some Afghans, while others were skeptical that it would improve their lot.
Russia became the first country to acknowledge the Taliban authorities on Thursday, after a gradual building of ties that included removing their “terrorist organization” designation and accepting an ambassador in recent months.
The Taliban authorities had not been recognized by any state in the nearly four years since sweeping to power in 2021, ousting the foreign-backed government as US-led troops withdrew after a two-decade war.
Afghanistan is one of the poorest countries in the world and in a fragile recovery from four decades of conflict.
“With the current situation in Afghanistan, with all the challenges, everyone is worried. If the world recognizes Afghanistan, we will be happy, currently, even the tiniest thing matters,” Gul Mohammad, 58, said on Friday in the capital Kabul.
Despite having bitter memories of the Soviet invasion of Afghanistan in 1979, when he “lost everything” and became a refugee in Pakistan, he acknowledges that “the priorities are different now.”
Jamaluddin Sayar, 67, predicted that “trade and economic prosperity will now blossom.”
The retired pilot said other countries, “both western and eastern,” should recognize the government and “stop spreading propaganda against the Islamic Emirate,” using the Taliban authorities’ name for their administration.
Russian and Afghan officials praised the move as an opening for deeper cooperation, notably in economic and security arenas.
Security concerns have been a key avenue for coordination between the Taliban authorities and the international community, amid fears Afghanistan would become fertile ground for increased militant activity.
The authorities have prioritized security and made repeated assurances that Afghan soil would not be used by any group to plan attacks on other nations.
However, Pakistan’s ties with the Taliban authorities have been strained over a surge in militant activity since their takeover and last year, an attack claimed by the Daesh group’s branch in Afghanistan killed 137 people in a Moscow concert hall.
In a country where dissent and protest is tightly controlled, some Kabul residents were afraid to openly criticize the Taliban authorities.
Atef, not his real name, was unconvinced better relations between Afghanistan and Russia would improve the livelihoods of ordinary Afghans.
“I think Afghanistan will fall into the traps of the Russians again, the issues and challenges will increase, and there is nothing that can help ordinary people,” the unemployed 25-year-old said.
“People are struggling, and they will still struggle with or without the recognition.”
For Afghan women’s rights activists, particularly those who have advocated for isolating the Taliban government, the recognition was seen as a setback that “legitimizes” restrictions on women.
The Taliban authorities, who also ruled the country between 1996 and 2001, have again imposed an austere version of Islamic law.
Norway-based Afghan women’s rights activist Hoda Khamosh was defiant against the impact of the Russian move.
“Human rights organizations right now are trying to recognize gender apartheid in Afghanistan because the Taliban are a repressive regime against women,” she said.
“Therefore, these recognitions will not lead to anything.”
Pakistan seeks Saudi investment in agri-infrastructure, eyes long-term food security

- Pakistan proposes joint work on desert agriculture, seed development and water efficiency
- It highlights commitment to climate-adaptive agriculture amid environmental degradation
KARACHI: Pakistan on Friday urged Saudi Arabia to invest in agricultural research and storage infrastructure as part of a broader push for sustainable food security, according to an official statement.
The call was made during a meeting between Federal Minister for National Food Security Rana Tanveer Hussain and Saudi Ambassador Nawaf bin Said Al-Malki in Islamabad, following the launch ceremony of the third phase of the Saudi Food Security Support Project in Pakistan.
“Rana Tanveer Hussain shared Pakistan’s long-term vision for achieving sustainable food security through investment in agricultural research, innovation and modernized farming systems,” said the statement circulated after the meeting.
“The Minister proposed deeper collaboration between Pakistan and Saudi Arabia in key areas such as joint agricultural research, technological exchange and investment in food processing and storage infrastructure,” it added.
Hussain also highlighted Pakistan’s commitment to improving irrigation practices and promoting climate-adaptive agriculture to address the growing challenges posed by environmental degradation.
He invited Saudi investors to explore opportunities in agri-based projects, particularly in high-yield zones, and called for institutional cooperation between universities and research centers in both countries.
The minister also proposed joint work on desert agriculture, seed development and water efficiency, describing them as high-impact areas for regional collaboration.
Earlier, he distributed food baskets to families under the Saudi Food Security Support Project and interacted with recipients.
Now in its third phase, the Saudi-backed initiative is delivering essential food supplies to thousands of households across Pakistan, providing much-needed relief amid climate-related challenges.
Search continues after Pakistan building collapse kills 14

- Residential block in the impoverished Lyari neighborhood of Karachi crumbled Friday morning
- Area was once plagued by gang violence and considered one of the most dangerous areas in Pakistan
KARACHI: Rescue teams pulled more bodies from the rubble of a five-story building collapse in Pakistan overnight, taking the toll on Saturday to 14 as the recovery operation continued for a second day.
The residential block crumbled shortly after 10:00 a.m. on Friday in the impoverished Lyari neighborhood of Karachi, which was once plagued by gang violence and considered one of the most dangerous areas in Pakistan.
Abid Jalaluddin Shaikh, leading the government’s 1122 rescue service at the scene, said the operation continued through the night “without interruption.”
“It may take eight to 12 hours more to complete,” he said.
Police official Summiaya Syed, at a Karachi hospital where the bodies were received, said that the death toll on Saturday morning stood at 14, half of them women, with 13 injured.
Up to 100 people had been living in the building, senior police officer Arif Aziz said.
All six members of 70-year-old Jumho Maheshwari’s family were at his flat on the first floor when he left for work early in the morning.
“Nothing is left for me now – my family is all trapped and all I can do is pray for their safe recovery,” he said on Friday afternoon.
Another resident, Maya Sham Jee, said her brother’s family was also trapped under the rubble.
“It’s a tragedy for us. The world has been changed for our family,” she said.
“We are helpless and just looking at the rescue workers to bring our loved ones back safely.”
Shankar Kamho, 30, a resident of the building who was out at the time, said around 20 families were living inside.
He described how his wife called him in a panic that the building was cracking.
I told her to get out immediately,” he said at the scene.
“She went to warn the neighbors, but one woman told her ‘this building will stand for at least 10 more years’,” he said.
“Still, my wife took our daughter and left. About 20 minutes later, the building collapsed.”
Congregation flees after arsonist sets fire to an Australian synagogue door

- A man doused the double front doors of the downtown East Melbourne Hebrew Congregation and set it alight around 8 p.m.
- Also in downtown Melbourne on Friday night, around 20 masked protesters harassed diners in an Israeli-owned restaurant
MELBOURNE: An arsonist set fire to the door of a Melbourne synagogue and forced the congregation to flee on Friday, seven months after criminals destroyed a synagogue in the same Australian city with an accelerant-fueled blaze that left a worshipper injured.
A man doused the double front doors of the downtown East Melbourne Hebrew Congregation and set it alight around 8 p.m., a police statement said on Saturday. Around 20 worshippers sharing a meal to mark the Shabbat Jewish day of rest evacuated through a rear door and no one was injured, police said.
Fire fighters extinguished the blaze which was contained to the front entrance, police.
Antisemitic attacks roil Australia since 2023
A wave of antisemitic attacks has roiled Australia since the Oct. 7, 2023, Hamas assault on Israel triggered the war in Gaza.
Jewish and Muslim organizations and hate researchers have recorded drastic spikes in hate-fueled incidents on both groups. The Australian government last year appointed special envoys to combat antisemitism and Islamophobia in the community.
Last December, two masked men struck the Adass Israel Synagogue in Melbourne’s southeast. They caused extensive damage by spreading a liquid accelerant with brooms throughout the building before igniting it. A worshipper sustained minor burns.
No charges have been laid for that attack, which Prime Minister Anthony Albanese blamed on antisemitism.
The Victorian Joint Counter-Terrorism Team, which includes Victoria state police, federal police and Australia’s main domestic spy agency, said the fire was likely a politically-motivated attack.
Police say synagogue attack is a serious crime
Acting Victoria Police Commander Zorka Dunstan described the latest synagogue fire as a serious crime. Police released a CCTV image of a suspect.
“I’d like to make it very clear that we do recognize that these crimes are disgusting and abhorrent. But at this stage, we are not declaring this a terrorist incident,” Dunstan told reporters.
“In the course of our investigation, we will examine the intent and the ideology of the persons involved, or person, to determine if this is in fact terrorism. At the moment, we are categorizing it as a serious criminal incident and responding accordingly,” she added.
A terrorism declaration opens the investigation to more resourcing and can result in charges that carry longer prison sentences.
The synagogue’s president, Danny Segal, called for the wider Australian community to stand with his congregation.
“We’re here to be in peace, you know, we’re here for everybody to live together and we’ve got a fresh start in Australia, such a beautiful country, and what they’re doing is just not fair and not right, and as Australians, we should stand up and everybody should stand up,” Segal told reporters.
Protesters harass diners in Israeli-owned restaurant
Also in downtown Melbourne on Friday night, around 20 masked protesters harassed diners in an Israeli-owned restaurant. A Miznon restaurant window was broken. A 28-year-old woman was arrested for hindering police.
Anti-Defamation Commission chair Dvir Abramovich, a leading opponent of antisemitism in Australia, said diners were terrorized as the group chanted “Death to the IDF,” referring to the Israel Defense Forces.
“Melbourne, for one night, stopped being a safe place for Jews,” Abramovich said.
Melbourne Lord Mayor Nicholas Reece condemned both the synagogue and restaurant incidents.
“These criminal acts against a Melbourne synagogue and an Israeli business are absolutely shocking,” Reece said. “All of us as a community need to stand up against it.”
Victoria Premier Jacinta Allan said both incidents were designed to “traumatize Jewish families.”
“Any attack on a place of worship is an act of hate, and any attack on a Jewish place of worship is an act of antisemitism,” she said in a statement.