Staff

Staff

The chief executive of Kuwait’s state oil company said a $30 per barrel “war premium” has been built into the cost of oil.

“I see a war premium of about $30 in the price right now,” Kuwait Petroleum Corp.’s Sheikh Nawaf Al-Sabah told Bloomberg TV on the sidelines of the Qatar Economic forum on Tuesday. There’s little sign of demand destruction in oil markets because of high prices, although growth is slowing.

Oil prices have soared almost 50% this year to around $110 a barrel, mainly because of the fallout from Russia’s invasion of Ukraine. Exxon Mobil Corp. said Tuesday in Doha oil markets may remain tight for three to five years largely due to under-investment since the pandemic began.

Kuwait Petroleum’s CEO also said European buyers are asking about more refined oil from the country, partly in anticipation of its Al Zour refinery coming fully onstream. “We’re getting more calls for products,” he said. “By the end of the year, we’ll have about 615,000 barrels of oil a day being converted into mostly diesel and very low sulfur fuel oil.”

Qatar’s Ministry of Commerce and Industry, Qatar Investment Authority and Investment Promotion Agency Qatar are the underwriters of the Qatar Economic Forum, Powered by Bloomberg. Media City Qatar is the host organization./Bloomberg

KUWAIT: Commerce and Industry Ministry inspectors raided a company for accused of committed commercial fraud. The company workers repaired used phones, then repackaged and sold them as new devices, the ministry said in a statement. The raid was made after days of surveillance, and a large quantity of phones were found in the company’s office, it added. The ministry is reviewing the company invoices to identify the shops which bought any if the phones to take action against them for the protection of consumers, the ministry concluded./KT

Kuwaiti Deputy Foreign Minister Ambassador Majdi Dhafiri met Tuesday, in the Czech capital Prague, Deputy Minister of Foreign Affairs for Non-European Countries, Economic and Development Cooperation of the Czech Republic, Martin Talpa.

During the meeting, both sides examined mutual and bilateral ties between the two counties, besides discussing Schengen visa exemption for Kuwaiti citizens. The Czech side affirmed full support for Kuwait for finalizing all required measures as soon as possible, noting the Czech Republic supportive role in this regard particularly when it takes over the European Union Chairmanship in July.

Dhafiri’s visit to the European country came in line with the Kuwaiti Foreign Ministry’s plan for serving the State of Kuwait’s interests, facilitating citizens’ issues, cementing ties with friendly states and opening new horizons for cooperation with the foreign nations at various levels. – KUNA

KUWAIT: Kuwait’s Deputy Prime Minister and Defense Minister Sheikh Talal Al-Sabah hailed on Tuesday recent promotions within the ranks of the country’s army, saying the procedure is among the “undeniable rights” of military personnel.

The minister’s remarks came amid a ceremony in which several army officers ascended to the rank of brigadier in what was the biggest such promotion in Kuwait’s history, he underlined. On the promotions, he said it was the start of a plan to overhaul Kuwait’s military in the face of the “biggest challenges” facing the region and the entire world, urging the officers to “have the nation’s best interest at heart.” – KUNA

 Kuwait is starting its first offshore oil exploration and building the world’s biggest oil refinery, Kuwait Petroleum Corporation’s chief executive said on Tuesday. Kuwait is also committed to investing to meet increasing demand for hydrocarbons. “Kuwait can go higher than current output and is ready to meet any increases OPEC authorizes,” Sheikh Nawaf Saud Al-Sabah told the Qatar Economic Forum hosted by Bloomberg in the capital Doha.

Sheikh Nawaf said the company was supplying all customers, but that multinational oil firms were not matching the investment of national oil enterprises. He also said the first offshore rig had arrived in Kuwait and would begin drilling soon. “We have never touched the offshore in Kuwait. The first offshore drill rig arrived in Kuwait a week ago and will start soon,” he said. The new refinery would come online by the end of 2022, Sheikh Nawaf added. “It will be the largest refinery in the world at 615,000 barrels of oil a day capacity,” he said adding that it would help meet increased demand from Europe and elsewhere.

Sheikh Nawaf said there was a “dangerous trend”, with world consumers wanting energy but not being prepared for the change from polluting hydrocarbons to green energy. “That is a paradox here that is causing quite a tremendous disruption in the investment cycle. We are making the long-term investments, but not international oil companies.” Sheikh Nawaf said the world currently produces and consumes about 100 million barrels of oil a day but that the equivalent of Kuwait’s production – about 3.5 million barrels a day – was being lost through declining fields.

Sheikh Nawaf later said a $30 per barrel “war premium” has been built into the cost of oil. “I see a war premium of about $30 in the price right now,” he told Bloomberg TV on the sidelines of the forum. He also said European buyers are asking about more refined oil from the country, partly in anticipation of its Al-Zour refinery coming fully onstream. “We’re getting more calls for products,” he said. “By the end of the year, we’ll have about 615,000 barrels of oil a day being converted into mostly diesel and very low sulfur fuel oil.”

Consumers must be prepared to endure up to five years of turbulent oil markets, the head of ExxonMobil said Tuesday, citing under-investment and the coronavirus pandemic. Energy markets have been roiled by the Ukraine war as Russia has reduced some exports and faced sanctions while Europe has announced plans to wean itself off dependency on Russian fossil fuels in coming years.

Speaking ahead of ExxonMobil’s unveiling as the fourth international partner for Qatar’s natural gas expansion, chairman and chief executive Darren Woods said major uncertainty lies ahead. “You are probably looking at three to five years of continued fairly tight markets,” Woods told the Qatar Economic Forum. “How that manifests itself in price will obviously be a big function of demand, which is difficult to predict.”

On top of under-investment in finding new oil sources in 2014-2015, Woods said the pandemic “really sucked a lot of revenues out of the industry”. Woods said companies and governments needed to think long-term. “We are going to see a lot of volatility and discontinuity in the marketplace if we don’t get to more thoughtful policies,” he predicted. Representatives from the Middle East energy industry also renewed calls for better planning in consumer countries.

Qatar’s Energy Minister Saad Sherida Al-Kaabi meanwhile criticized the “demonization” of oil companies, and the windfall taxes on oil majors that many governments are proposing. “I don’t see the governments coming to pitch in when they (oil companies) were losing money and borrowing when the oil price was negative in Texas,” he said.

ExxonMobil has taken a 6.25 percent stake in the expansion of Qatar’s North Field, which contains the world’s biggest natural gas reserves. The stake is the same as France’s TotalEnergies while Italy’s Eni and US firm ConocoPhillips have 3.13 percent shares. Woods said the project will “bring balance to the global market”. – Agencies

Umm Mohammed, 74, waves a fan back and forth to cool down, but in the blistering heat of Iraq’s southern city of Basra there is nothing but stiflingly hot air. While Basra is used to scorching summers, this year it has started sooner than expected, bringing misery to residents in a city also plagued by chronic electricity shortages. “By God, we are tired,” Umm Mohammed said faintly, adding that the heat had woken her up in the middle of the night.

Just days into summer, the temperature in Basra has already soared to around 45 degrees Celsius. Umm Mohammed’s modest home has a flimsy sheet-metal roof that retains the sweltering heat. Further north in the capital Baghdad, temperatures have already topped 50 Celsius – in the shade. Battered by decades of conflict that has sapped its infrastructure, Iraq is struggling with droughts, repeated sandstorms, desertification and a drop in some river levels.

Chronic power cuts are exacerbated in the summer, and only those who can afford private generators are able to keep their fridges or air conditioning units running. In Basra, high humidity compounds the oppressive heat. And with many Iraqis struggling to survive, spending around $105 dollars a month for a private generator is not an option. The authorities “must help poor people”, Umm Mohammed said, decrying their failure to provide an adequate mains supply. Referring to how the government treats its citizens, she said: “Even God does not agree to that.”

Iraq is the second-largest oil producer in the OPEC cartel. But the once thriving country has for years bought gas from neighboring Iran, which supplies about one-third of its power sector needs. US sanctions on Iranian oil and gas have complicated Baghdad’s payments for the imports, leaving Iraq in heavy arrears and prompting Tehran to periodically switch off the taps.

The result is longer power cuts for most of Iraq’s 41-million-strong population, many of whom blame politicians and endemic corruption for their plight. Anger over blackouts helped fuel deadly protests from late 2019 to mid-2020, including many in southern Iraq. Nataq Al-Khafaji, who lives in Nasiriyah, just north of Basra, said getting by in the heat without electricity was “very difficult for the children and the elderly”. “It’s hell,” he added.

During the summer holidays, Khafaji’s three children have nowhere to go and little to do. Stuck in their darkened home, they try as best as they can to escape the suffocating heat outdoors. Khafaji has bought a battery-operated fan, but expressed worry that it would not be enough during the worst months “when it will be close to 50 degrees”.

The United Nations ranks Iraq as one of the top five countries most vulnerable to climate change. Since mid-April, it has been battered by 10 sandstorms – a product of intense drought, soil degradation, high temperatures and low rainfall linked to climate change. President Barham Saleh has warned that tackling climate change “must become a national priority for Iraq as it is an existential threat to the future of our generations to come”. Saleh said desertification affects 39 percent of Iraq, where water supplies are also dwindling drastically and crop yields are declining.

With heat waves and dust storms “expected to increase over the years”, so will health issues, said Seif Al-Badr, a spokesman for the health ministry. “We expect to be treating more people for a variety of illnesses linked to climate” change, he told AFP. But efforts to address such issues appear to have been shelved, as Iraq grapples with political deadlock that has left it without a new government after polls last October. The World Bank has warned that unless solutions are found, Iraq could lose 20 percent of its water resources by 2050 due to climate change. – AFP

KUWAIT: The Kuwaiti opposition stepped up its anti-government campaign on Tuesday as about 20 MPs continued an open-ended sit-in at the National Assembly building, while prominent former politicians continued holding daily rallies. The aim of the campaign, which began a week ago, is to force the resumption of Assembly sessions, suspended since the Cabinet resigned on April 5, and to ward off attempts to undermine the 1962 constitution.

Kuwait has effectively been without a proper Cabinet for almost the past 80 days after HH the Prime Minister Sheikh Sabah Al-Khaled Al-Sabah submitted his resignation to HH the Amir after 26 lawmakers, two more than the required quorum, said they will support a non-cooperation motion filed following a grilling.

HH the Amir accepted the resignation more than a month ago and asked the premier and the Cabinet to continue to manage urgent matters in a caretaker capacity. Since the resignation, the Assembly has not convened regular sessions, which opposition MPs claim amounts to preventing the legislature from meeting to decide on issues relevant to the people.

The opposition claimed that this was an attempt to undermine the rule of the constitution which governs relations between the lawmakers and the government. Around 20 MPs decided to stage an indefinite sit-in at the Assembly building, including sleeping in their offices to protest the paralysis of the constitution and the country’s democracy.

Around 19 former prominent opposition MPs issued a statement backing the MPs’ action and decided to hold gatherings at diwaniyas in support of the striking lawmakers. The first rally was hosted by former speaker Ahmad Al-Saadoun. The next two rallies were hosted by former MPs Abdullah Al-Nafisi and Waleed Al-Jari. Jari said that all that the people want is to safeguard the 1962 constitution and democracy.

Monday’s rally saw the attendance of former prominent opposition leader, ex-MP Musallam Al-Barrak, and a number of former MPs who had returned from more than three years in exile in Turkey a few months ago. One of these former lawmakers, Jamaan Al-Harbash, said their attendance is a sign of support and to unify the ranks of the opposition to protect the constitution.

But Deputy Speaker Ahmad Al-Shuhoumi launched a scathing attack on the opposition, accusing them of “terrorizing” their opponents. Former pro-government MP Ahmad Al-Fadhl, writing on Twitter, held the prime minister responsible for the turn of events, claiming the government failed to stop violations during the Dec 5, 2020 parliamentary elections, where the opposition scored an impressive victory.

Meanwhile, pro-government MP Abdullah Al-Turaiji said he has obtained information that the bank accounts of four MPs have been inflated with illegal deposits. He said he has sent questions to the finance minister, requesting details on the issue and on what legal procedures will be taken./KT

It is critical for Africa that grains stranded in Ukraine can be exported out of the country, the African Union's top official said on Tuesday.

"Yesterday, we listened to the president of Ukraine. What we want is, first, peace and stability and then the possibility to free trade on grains. It is very important for us," Moussa Faki Mahamat told Anadolu Agency while attending a tree planting event in the Ethiopian capital Addis Ababa, which is also home to the African Union's headquarters.

"The response we got so far is positive," said Faki, citing a video conference he held on Monday with Ukrainian President Volodymir Zelensky and African Union chairman Macky Sall.

"This war may seem very distant to you and your countries. But, catastrophically rising food prices have already brought it home to millions of African families, as well as to many in Asia, Europe, Latin America," he told the African Union's Bureau of the Assembly.

Shipments out of Ukraine, one of the world's top wheat suppliers, have stalled since Russia began its war on the country on Feb. 24.

Also, a major grain producer, Russia, denies responsibility for the food crisis, blaming it on Western sanctions.

According to the African Union, Western sanctions on Russia, in particular its exclusion from the international payment mechanism SWIFT, is preventing some member countries from buying food products.

The EU has defended its sanctions, saying they do not target food and fertilizers.
Africa, home to 1.3 billion people, has become a "collateral victim" of the Russia-Ukraine conflict, further denting the continent's ability to fulfill its "enormous promise and potential," top officials of the African Union and UN have said.

The Russia-Ukraine conflict that escalated into a war on Feb. 24 caused the largest refugee influx ever seen since WWII, according to analysts while it disrupts the global gain supply chain that many fear may entail widespread hunger, particularly in the developing countries./aa

The European Union will support vulnerable countries with an additional €600 million ($633 million) to face the food crisis aggravated by Russia’s war on Ukraine.

“To help our partners we will mobilize an additional 600 million euros to avoid a food crisis and an economic shock,” Ursula von der Leyen, president of the European Commission, announced at the 2022 European Development Days conference in Brussels on Tuesday.

She said the war that began in February is taking a "heavy and senseless toll," not only on the Ukrainian population but also on those most vulnerable around the world.

"Russia is still blocking millions of tons of desperately needed grain," she added.

The European Commission adopted the proposal on mobilizing the funds from the reserves of the European Development Fund to help African, Caribbean, and Pacific countries “to cope with the dire situation,” the EU executive said in a statement.

With the additional funds, "we will strengthen our support to address the crisis, while contributing to sustainable and resilient food systems,” said European Commissioner for International Partnerships Jutta Urpilainen.

Of the total amount, €150 million will be earmarked for humanitarian assistance, €350 million for sustainable production and resilience of food systems, and €100 million for macro-economic support.

The aid tops up the bloc’s previously announced €3 billion package for food security.

EU foreign policy chief Josep Borrell said on Monday that he will send a letter to every African country’s top diplomat to counter "Russian propaganda" on global food security.

He said the global food supply has not been endangered by EU sanctions, but because Russia is blocking grain shipments from Black Sea ports and destroying crops.

Russia denies responsibility for the food crisis, blaming it on Western sanctions.

According to the African Union, sanctions on Russia, in particular its exclusion from the international payment mechanism SWIFT, are preventing some member countries from buying food products./aa

Russian journalist Dmitry Muratov has auctioned off his Nobel Peace Prize medal for a record $103.5 million to help children displaced by the war in Ukraine.

All proceeds will benefit UNICEF’s humanitarian response for Ukrainian children displaced by war, read a statement by Heritage Auctions, which conducted the sale in New York on Monday night.

The previous high for a Nobel medal was $4.74 million, paid for US scientist James Watson’s medal at an auction in 2014.

Muratov, editor-in-chief of the independent Russian newspaper Novaya Gazeta, was co-awarded the 2021 peace prize for defending freedom of expression in Russia.

He was among the people who started the daily in 1993, with the paper becoming known for its critical stance on Russia’s political and social affairs.

It was forced to suspend operations in March, just after Moscow launched its war on Ukraine.

“The most important message today is for people to understand that there’s a war going on and we need to help people who are suffering the most,” Muratov said in a video message released by Heritage Auctions.​​​​​​​/aa

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