Saudi extends oil production cut as Russia reduces exports

RIYADH, Saudi Arabia - Saudi Arabia said on Monday it was extending a voluntary oil production cut of one million barrels per day, and Russia said it was slashing exports by 500,000 bpd.

The moves were the latest attempts by major producers to stabilize markets rocked by factors including continued fallout from the Russian invasion of Ukraine and China's faltering economic recovery.

The cut by Saudi Arabia, the world's biggest crude exporter, was first announced after a June meeting of oil producers and took effect at the weekend.

Saudi Energy Minister Prince Abdulaziz bin Salman noted at the time that it was "extendable".

In a report on Monday announcing that the cut would continue through August, the official Saudi Press Agency said it "can be extended" further, citing an energy ministry source.

"The source confirmed that this additional voluntary cut comes to reinforce the precautionary efforts made by OPEC+ countries with the aim of supporting the stability and balance of oil markets," SPA said.

Monday's extension announcement leaves the kingdom's production at approximately nine million bpd.

Also on Monday, Russia unveiled its export cut of 500,000 bpd for August "as part of efforts to ensure that the oil market remains balanced".

The announcement by Alexander Novak, Russian deputy prime minister responsible for energy policy, came on the back of cuts to Russian oil production this year by the same volume as part of Moscow's response to Western sanctions levied over the conflict in Ukraine.

Since the beginning of large-scale hostilities in Ukraine last February, Moscow has pivoted energy exports from Europe to India and China.

The initial market reaction to Monday's announcements by Riyadh and Moscow was muted.

Brent was up 0.98 percent to $76.15 per barrel, and West Texas Intermediate was up 1.02 percent to $71.36 per barrel.

Recent efforts by OPEC+ to bolster prices by reducing output have not succeeded.

In April, several OPEC+ members opted to slash production voluntarily by more than one million bpd -- a surprise move that briefly raised prices but failed to bring about lasting recovery.

Brent is down 11 percent since the beginning of the year and WTI is down 7 percent, as a sluggish recovery in China and worries about the US economy weigh on demand forecasts.

Saudi Arabia is counting on high oil prices to fund an ambitious reform agenda that could shift its economy away from fossil fuels.

Oil giant Saudi Aramco, the jewel of the kingdom's economy, said it recorded profits totaling $161.1 billion last year, allowing Riyadh to notch up its first annual budget surplus in nearly a decade.

Analysts say the kingdom needs oil to be priced at $80 per barrel to balance its budget, which is well above recent averages.

Agence France-Presse

Golf: Mickelson apologizes for 'reckless' comments on Saudi-backed league

Phil Mickelson apologized on Tuesday for comments he made about the proposed Saudi-backed Super Golf League that set off a firestorm of controversy and said he planned to take "time away" from the sport.

In a November interview that was published on the firepitcollective.com last weekend, Mickelson criticised the government of Saudi Arabia for its "horrible record" on human rights, which he said included the 2018 killing of journalist Jamal Khashoggi and the execution of gay people.

Despite the government's "scary" actions, he said he would use the prospect of a new, highly-lucrative tour to gain economic leverage over the PGA Tour, a position that drew the ire of fellow golfers including Rory McIlroy and Justin Thomas.

Saudi Arabia's government denies accusations of human rights abuses.

"Although it doesn't look this way now given my recent comments, my actions throughout this process have always been with the best interest of golf, my peers, sponsors, and fans," Mickelson said at the beginning of a lengthy social media post, where he claimed his previously reported comments were "off the record," a charge the journalist denies.

"The bigger issue is that I used words I sincerely regret that do not reflect my true feelings or intentions. It was reckless, I offended people, and I am deeply sorry for my choice of words. I'm beyond disappointed and will make every effort to self-reflect and learn from this."

The six-time major champion said golf "desperately needs change" and that real change is always preceded by disruption.

"I have always known that criticism would come with exploring anything new. I still chose to put myself at the forefront of this to inspire change, taking the hits publicly to do the work behind the scenes."

No golfers have publicly signed up for the proposed rival league, which is trying to lure top players away from the PGA Tour with the promise of huge paydays.

Mickelson praised LIV Golf Investments, Super Golf League's financial backer, and called the people he has worked with there "visionaries".

"They have a clear plan to create an updated and positive experience for everyone including players, sponsors, networks, and fans," he said.

But the 51-year-old closed by saying he planned to take a break from the sport.

"The past 10 years I have felt the pressure and stress slowly affecting me at a deeper level," he said.

"I know I have not been my best and desperately need some time away to prioritize the ones I love most and work on being the man I want to be."

(Additional reporting by Frank Pingue in TorontoEditing by Christian Radnedge)

-reuters

Oil goes below $48 as Saudis defend stance

NEW YORK, United States – Oil prices tumbled Tuesday to fresh 5.5-year lows as Saudi Arabia blamed weak global economic growth and said it would stick to its guns on production policy.

US benchmark West Texas Intermediate for delivery in February sank $2.11 to $47.93 a barrel, a low last witnessed in late April 2009.

Brent North Sea crude for delivery in February dived $2.01 to $51.10 per barrel, the lowest level since early May 2009.

“The market is still worried that there are no signs that the supply glut will start falling,” Nordea Markets analyst Thina Margrethe Saltvedt told AFP.

James Williams of WTRG said the weakness in the market could take prices below $40 a barrel.

“Basically, there are continuing concerns about OPEC not cutting back, particularly Saudi Arabia, and US production continuing to grow,” he said.

Saudi Arabia’s Crown Prince Salman, in a speech on behalf of ailing King Abdullah Tuesday, said weak growth was to blame for the price fall, which has sliced deeply into the income of the world’s largest exporter.

“This development is not new in the oil market, and the kingdom has in the past dealt with it firmly and wisely,” he said, adding that Saudi Arabia will maintain its “same approach” towards the market.

That appeared to confirm Riyadh’s determination to defend its market share rather than reduce output, even if that pushes prices lower.

On Monday Saudi Arabia reportedly cut its European and US export prices in order to maintain market share.

source: business.inquirer.net

Amnesty says Saudi rights record getting worse

DUBAI – Amnesty International on Monday said Saudi Arabia had failed to act on UN recommendations and “ratcheted up the repression” since 2009, with the arbitrary detention and torture of activists.

The London-based watchdog’s statement was released ahead of a UN Human Rights Council meeting in Geneva on Monday to discuss the oil-rich kingdom’s record, and comes after Riyadh rejected a seat on the UN Security Council, citing the international body’s “double standards” and inability to resolve regional conflicts.

“Saudi Arabia’s previous promises to the UN have been proven to be nothing but hot air,” said Amnesty’s MENA director Philip Luther, accusing the kingdom of relying “on its political and economic clout to deter the international community from criticising its dire human rights record.”

In its report titled “Saudi Arabia: Unfulfilled Promises,” Amnesty criticized “an ongoing crackdown including arbitrary arrests and detention, unfair trials, torture and other ill-treatment over the past four years” in the kingdom.

“Not only have the authorities failed to act, but they have ratcheted up the repression” since 2009, said Luther.

“For all the peaceful activists that have been arbitrary detained, tortured or imprisoned in Saudi Arabia since, the international community has a duty to hold the authorities to account,” he said.

Amnesty renewed calls for Saudi authorities to release two prominent rights activists handed heavy jailed terms in March.

Mohammed al-Gahtani and Abdullah al-Hamed were sentenced to 11 and 10 years imprisonment respectively for violating a law on cybercrime by using Twitter to denounce various aspects of political and social life in the ultra-conservative kingdom.

They are co-founders of the independent Saudi Civil and Political Rights Association (ACPRA).

“These men are prisoners of conscience who should be released immediately and unconditionally,” said Luther.

“Their peaceful activism against human rights violations deserves praise not punishment. The only guilty party here is the government,” he added.

Amnesty documented other rights violations it said are committed by Saudi authorities such as “systemic discrimination of women in both law and practise” and “abuse of migrant workers.”

Women in the kingdom are not allowed to drive and need permission from their male guardians to travel.

It also accused the Sunni-ruled kingdom of “discrimination against minority groups,” including Shiites concentrated in the Eastern Province who occasionally protest to demand more rights.

Amnesty also faulted the kingdom for “executions based on summary trials and ‘confessions’ extracted under torture.”

The kingdom has executed 69 people so far this year, according to an AFP count.

Rape, murder, apostasy, armed robbery and drug trafficking are all punishable by death under the Gulf state’s strict version of sharia, or Islamic law.

source: newsinfo.inquirer.net

Filipinos in Saudi warned on sexy FB posts

The Philippine Embassy in Riyadh recently warned Filipinos in Saudi Arabia not to post revealing pictures on online social media sites.

The Embassy said it had received e-mail commenting on contents of social media sites, particularly photos uploaded by a Filipino community organization of a female “model” based in the Kingdom wearing a transparent night gown.

“The photo drew negative reactions from locals, who requested the Embassy to remind those concerned to refrain from uploading such material online, as these photos are inconsistent with local customs and cultural sensitivities,” the Embassy statement said.

“The Philippine Embassy in Riyadh urges all Filipinos in the Kingdom to be prudent and careful on the nature of photos and videos that they upload on social media sites. The Embassy is issuing this advisory to avoid unnecessary actions that might be taken against any group or individual by local authorities.”

source: http://globalnation.inquirer.net/27827/filipinos-in-saudi-warned-on-sexy-fb-posts