Showing posts with label energy. Show all posts
Showing posts with label energy. Show all posts

Sunday, February 25, 2024

The US troops in Iraq are there to stay unless the US government chooses to pull them out

    Sunday, February 25, 2024   No comments

 Since the 1990 US intervention in Iraq and the UNSC action after Iraq’s invasion of Kuwait, Iraq lost control of its economy and that has not changed. The Iraqi government recently asked the US to schedule full withdrawal of the latter’s troops. That is unlikely to happen unless the US needs or wants to pull troops out, because the US maintains tight control over the Iraqi economy which is entirely dependent on oil. Revenues from the sale of Iraqi oil is processed by US banks and the US government is leveraging it to keep troops in Iraq. 

Member of the Finance Committee in the Iraqi Parliament, Jamal Kujar, confirmed that there are three economic files that the United States uses to pressure Iraq, namely the oil file, Iraqi funds in the US Treasury, and the dollar file, and that the release of Iraqi funds in the US Federal Bank has become conditional in accordance with American controls and specifications.

 Koger explained, “These files represent strong and influential pressure cards if used against Iraq, because the Iraqi economy is fragile and depends entirely on oil revenues at a rate of up to 94% of the gross national product.”

 Oil export revenues in 2023, according to data issued by the Ministry of Oil last January, amounted to about 87.6 billion dollars, at a rate of about 7.3 billion dollars per month. The country sold more than 1.23 billion barrels.

 Iraqi funds deposited with the US Federal Bank from oil export revenues, which is a procedure applied within the requirements of Chapter Seven of the United Nations procedures following the Iraqi invasion of Kuwait in 1990 and is still in effect, in addition to the inclusion of new Iraqi companies and banks on the sanctions list it issues.


Thursday, August 24, 2023

Qatar in talks with Algeria to invest in petrochemical projects in the North African Country

    Thursday, August 24, 2023   No comments

According to an Elkhabar Daily report published on 18 August, Qatar is currently in talks with the Algerian government to construct a chemical power plant for Algiers in a bid to kick-start a potential partnership with state-run petroleum corporation Sonatrach.

Qatari news agency Doha News disclosed that Algerian Minister of Energy and Mines, Mohamed Arkab, met with the Qatari ambassador Abdul Aziz Ali Al-Nama in Algiers on 17 August to discuss the construction project details.

Arkab revealed to Elkhabar Daily that "Sonatrach is ready to work with Power International to achieve that project, which is part of Algeria's strategy to develop the industrial sector."

This recent development comes after Algeria implemented reformed hydrocarbon regulations designed to entice investors, improve processing mechanisms, and establish a longitudinal vision for the North African country that will boost the national economy and increase employment.

The report further disclosed that the next meeting between Qatar and Sonatrach will be organized in September. In addition, Qatar's ambassador to Algiers emphasized that numerous Doha-based companies are highly interested in investing in integral projects in Algeria, specifically in the sectors of exploration, manufacturing, research, and the petrochemical industry.

Sonatrach generates nearly $2 billion in sales annually and employs around 3,000 people. Sonatrach's petrochemical programs have also led several petrochemical construction projects, as well as consolidating partnerships with Turkiye, TotalEnergies, and a UK-Chinese consortium.

Since 2022, Qatar has sought to bolster relations with countries residing outside of the West Asian region in an attempt to diversify its economy and to alleviate the impact of the global energy crisis instigated by the imposition of western sanctions against Russia.

Last week, Qatar began its construction of 500,000 residential units in the northwestern Nigerian state of Kaduna as part of its Mega Economic City project.

Furthermore, Qatar and India reached the final stages of their Liquefied Natural Gas (LNG) agreement earlier this month, which would see Doha providing New Delhi with 1 million metric tonnes of LNG per year.

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Monday, June 05, 2023

Days before Blinken visit to the kingdom, Saudi Arabia welcomes Venezuelan President

    Monday, June 05, 2023   No comments

Maduro's visit comes as the kingdom has restored ties with both Iran and Syria, two nations that are also target of the US 'maximum pressure' sanctions campaign.

Previously, Prince Faisal bin Farhan bin Abdullah, the Saudi Minister of Foreign Affairs, reviewed with his Venezuelan counterpart Eban Eduardo Gil Pinto, on Monday, aspects of cooperation between the two countries, and ways to enhance and develop them in various fields.

This came during their meeting in Jeddah, where they discussed intensifying joint coordination on many regional and international issues of concern to the two countries, and their efforts to establish international peace and security, and contribute to achieving global sustainable development goals.


Friday, June 02, 2023

With the imminent lifting of subsidies, huge queues at petrol stations in Nigeria

    Friday, June 02, 2023   No comments

The persistent problem of strategic planning by Africa's leaders is manifesting itself in the most populous and energy rich African country, Nigeria.

The fuel crisis in Nigeria occupies the largest part of the momentum throughout the country, as it fluctuates from time to time between a shortage of imports and their impact on global prices, and the absence of local refining capabilities and the stoppage of refineries.

Since Tuesday, huge queues have formed outside petrol stations across Nigeria, after new President Paula Tinubu announced that fuel subsidies would soon be scrapped, causing panic among consumers.

The new president, Bola Tinubu, 71, who was recently sworn in, said there would be no grant spending in his budget, in line with his campaign promise.

"Instead, we will redirect the money toward better investments in public infrastructure, education, healthcare and jobs that will improve the lives of our citizens," he added.

He pointed out that "support is fading," without specifying a specific date, which led to confusion among the population and prompted motorists to rush to service stations.

Yesterday, Tuesday, the president's communications team said that the subsidy will end at the end of next June, describing the panic buying of fuel as "unnecessary."

Nigeria trades its billions of dollars worth of crude for imported fuel (due to failed state refineries), which it then subsidizes to maintain an artificially low price in the market, creating a financial chasm.

Therefore, it is a very popular measure among the population, but it withdraws billions of dollars from the public treasury every year.

Over the past ten years, the authorities have attempted to abolish this subsidy on several occasions. But to no avail. Each time, they had to back down in the face of public anger that the unions amplified to the limit.

And in 2012, the Nigerian army took to the streets to keep calm during demonstrations against the removal of subsidies.

Tuesday, May 23, 2023

German investigators: Ukraine blew up Nord Stream pipelines

    Tuesday, May 23, 2023   No comments

German investigators are sceptical of claims that Russian naval ships sabotaged the Nord Stream gas pipelines and are instead pursuing leads that point to the Ukrainian authorities, according to a report.

Three of the four strands of the pipelines, built to transport Russian gas to Germany on the bed of the Baltic Sea, were knocked out by underwater explosions last September, effectively severing the main energy link between the two countries.

Previously, Pulitzer Prize-winning investigative journalist Seymour Hersh blamed the US administration for the bombing of the Russian Nord Stream gas pipeline, which took place last September.

Earlier this year, the UNSC, which literally stands for the United Nations Security Council, and whose mission “is to maintain international peace and security;” failed to adopt a resolution that “would have established an international independent investigative commission into the September 2022 “acts of sabotage” committed on the Nord Stream gas pipeline in the Baltic Sea.”

Thereafter, the US administration released its own report claiming that a pro-Ukraine group was behind the attack on the pipeline, a statement that was ridiculed by China, with Chinese official posting a reaction to the statement saying, "Is the [pro-Ukraine group] named Biden Administration?"

Wednesday, April 05, 2023

Media Review: The world of the dollar reserve system is coming to an end

    Wednesday, April 05, 2023   No comments

The American magazine "The National Interest" reported that "the American president said that the ruble will turn to rubble, and the French finance minister said that the Russian economy will collapse, but despite these statements, the sanctions did not result in any major tsunami of regime change."

And it reported that “the movement to (Eurasian) resource-backed currencies was accelerated by the United States’ recognition of the trend and its attempt to reverse it, ostensibly through the war in Ukraine,” noting that “the revolution in the economy is not Bitcoin, but rather resource-based currencies.”

She explained, “With the Russians capping the price of their gold, Russian investors were stuck with an undervalued ruble, forcing it to appreciate against the dollar. In the past six months, the ruble has strengthened steadily. Then Putin added the double whammy that buyers of Oil can be bought with rubles or gold.

According to her, "If they buy oil with gold, they actually get a discount on oil, which leads to increased pressure on the supply of gold, which raises the price."

Therefore, "the West's commitment to burning the ruble backfired, and the strengthening of oil prices had a reinforcing effect on the ruble. As a result, in the land of paper, Russia and China are now able to control gold and oil prices," she says.

"The world of the dollar reserve system is coming to an end, as domestic funds were artificially inflated by the West in order to buy the assets of the East cheaply, and now it is payback time for the East," The National Interest confirmed.

The magazine concluded: "The dollar is still the reserve currency. This seismic change will not happen overnight, but the seeds were sown," stressing that "the current banking crisis is a symptom of the weakness of the monetary system, and what is happening in the West is the gradual death of paper currencies."

Thursday, March 16, 2023

Saudi Arabia will stop oil supplies to countries that set a price ceiling on its oil

    Thursday, March 16, 2023   No comments

In another guesture in support of Russia and dismiss of EU actions, Saudi Arabia announced that it will stop oil supplies to countries that set a price ceiling on its oil

This was stated by the Minister of Energy of the Kingdom, Prince Abdulaziz bin Salman.

In his view, price ceilings set for a country or a group of countries, for oil or any other commodity, will lead to individual or collective responses with serious consequences.

"So if there is a price cap on Saudi oil exports, we will not sell oil to any country that imposes a price cap on our supplies, and we will cut oil production, and I would not be surprised if others do the same," he said. the minister said.

The Saudi Energy Minister, Abdulaziz bin Salman, and the Russian Deputy Prime Minister, Alexander Novak, confirmed during their meeting in Riyadh, today, Thursday, their countries’ commitment to the decision taken by “OPEC +” to reduce oil production by two million barrels per day until the end of 2023.

The Saudi Press Agency, "SPA", stated that bin Salman and Novak discussed the conditions of the global oil market, and the efforts of the "OPEC +" group aimed at "enhancing market stability and balance."

The two sides affirmed their countries' commitment to the decision taken by the "OPEC +" group, last October, to reduce production by two million barrels per day until the end of 2023, and the continuation of cooperation between the two countries, within the framework of the group, to enhance the stability and balance of the global market.

A few days ago, the US Assistant Secretary of State for Economic and Energy Affairs, Jose Fernandez, called on oil-producing countries, including the Organization of Petroleum Exporting Countries (OPEC), to "increase the quantities of crude supplied in the markets."

And in early October 2022, “OPEC +” decided to reduce its production by two million barrels per day, at a level that it has not changed since then.

It is noteworthy that the American "The Intercept" website had previously stated, quoting informed Saudi sources, that Riyadh had pressured to cut oil production twice more than what Russian President Vladimir Putin had requested.

On October 14, a spokesman for the National Security Council at the White House, John Kirby, said that "more than one member" of "OPEC +", without specifying them, disagreed about the size of the cut, but Saudi Arabia forced them to agree to it.


Thursday, February 09, 2023

Investigative journalist Seymour Hersh: The CIA carried out the Nord Stream bombing

    Thursday, February 09, 2023   No comments

Pulitzer Prize-winning investigative journalist Seymour Hersh blamed the US administration for the bombing of the Russian Nord Stream gas pipeline, which took place last September.

According to a report by the veteran journalist, the bombing of an underwater gas pipeline in the Baltic Sea was a covert operation ordered by the White House and carried out by the CIA.

In a 5,000-word lengthy report, Hirsch wrote that the operation was disguised "under the guise of a widely publicized NATO mid-summer exercise known as Operation Baltic-22" that took place this past June. .

In the report, Hersh says that the American divers in the deep sea used NATO military exercises as a cover, and planted mines along the pipelines, which were later remotely detonated.

The famous American journalist added that the "black operation" was ordered by President Biden, and the attack was carried out by the CIA in cooperation with Norway.

He added that Biden's decision to sabotage the pipelines came after more than 9 months of top-secret planning within the US national security community.

Speaking about his source, Hirsch said: "At the time, the issue was not whether the task should be done, but how to get it done without a clear clue as to who was responsible."

In his report, Hersh included statements and information that he considered as indications of the US administration's responsibility for the attack, describing its behavior as a result of complete insistence.

The journalist mentioned that Biden met in his office, in the White House, the German Chancellor, Olaf Scholz, less than 3 weeks before the Russian military operation that began at that time in Ukraine, and he had defiantly said in the press conference that followed the meeting: “If Russia invaded Ukraine, There will be no Nord Stream 2, and we will put an end to it."

Hersh continued in this context, recalling that the US Undersecretary of State, Victoria Nuland, had delivered the same message in a press briefing at the Ministry, with little press coverage. In response to a question at the time, she said: "I want to be very clear with you today, if Russia invades Ukraine, Nord Stream 2 will somehow not move forward."

The American journalist Hersh, known for his investigative reports on American crimes in Vietnam and the Middle East wars, was able to obtain information about the operation from an unnamed source, but he stated that he was directly involved in its preparation, as he put it.

It is noteworthy that Hersh was the one who revealed the torture scandal in the Iraqi Abu Ghraib prison, which sparked a global outcry and widespread condemnation of the US administration.

For its part, the Pentagon responded to Hersh's report and said that the United States had nothing to do with the bombing of the Nord Stream gas pipeline.

Today, Department Spokesperson Jaron Gorn stated that the United States was not involved in the Nord Stream explosion, as he referred to the speech of Deputy Assistant Secretary of Defense Laura Cooper, who claimed on October 4 that "the United States was not involved in any Anyway" in this matter.

On the other hand, the spokeswoman for the Russian Foreign Ministry, Maria Zakharova, said that all the facts cited by the American journalist in his investigation, about the role of the United States in the sabotage of "Nord Stream", must be commented on by the White House.

Zakharova added that Moscow has repeatedly expressed Russia's position on the involvement of the United States and NATO in this incident.

The Russian Foreign Ministry spokeswoman stressed that the West did not hide this, adding, "The West was bragging to the whole world about its intention to destroy the civilian infrastructure through which Europe obtained Russian energy resources."

Last Thursday, Russian Foreign Minister Sergey Lavrov, in a joint interview on the "Russia 24" channel and the "Novosti" agency, accused the United States of being directly involved in the bombing of the "Nord Stream" gas pipeline.

Last September, a series of powerful explosions destroyed the Nord Stream 1 and 2 pipelines, which pass through the Baltic Sea from Russia to Germany and provide cheap gas to Europe, and it was soon revealed that the attack was an act of deliberate sabotage. The perpetrator has not yet been identified.

Friday, January 27, 2023

Pakistan: We will get Russian oil starting next April

    Friday, January 27, 2023   No comments

Pakistan's Petroleum Minister Mossadeq Malik announces that Pakistan will start importing crude oil from Russia in April 2023, stating that this "will be beneficial for both countries."

Pakistani Petroleum Minister Mussadeq Malik announced today, Friday, that Pakistan will start importing crude oil from Russia in April 2023, after Moscow and Islamabad ended their negotiations on the terms of supply, including the issue of payment related to the use of a currency other than the dollar.

Malik added, "In March, all trade clauses of the agreement with Russia will be finalized, after which low-cost crude oil will start arriving in Pakistan. It will be beneficial for both countries," according to the Pakistani newspaper News.

Pakistan has also begun to develop a comprehensive energy security plan, which will be completed by the end of 2023, and includes the import of Russian liquefied natural gas (LNG), pipeline gas, and other petroleum products, according to the newspaper's report.

Earlier, Russian Energy Minister Nikolai Shulginov and Pakistan's Economy Minister Ayaz Sadiq held a meeting, where the two sides agreed to agree on all details of oil and gas supplies by March.

Shulginov noted that discussions on oil supplies will not begin until after February 5, after the price ceiling for Russian refined products, introduced by Western countries, comes into effect.

Shulginov added that "Russia may participate in power generation projects in Pakistan, including the modernization and construction of hydroelectric power plants and thermal power plants."

On January 19, Russia and Pakistan announced their readiness to sign the necessary documents for the construction of the "Pakistani Stream" gas pipeline.

The Russian delegation headed by Shulginov arrived in Pakistan, on January 17, to hold bilateral talks for a period of 3 days, within the framework of the work of the joint Russian-Pakistani governmental committee for trade, economic, scientific and technical cooperation.

Western countries have been seeking ways to limit Russia's revenues from oil and gas exports, as well as its dependence on Russian fuel since Moscow launched a military operation in Ukraine on February 24, 2022.

On December 5, the European Union set a ceiling for the price of Russian oil, $60 a barrel, and the G7 countries and Australia joined.

Despite this, Washington and its allies agreed to review the level of the ceiling imposed on the export prices of this oil next March.

Friday, October 28, 2022

Erdogan presents the expected tidings to Europe at the gates of the winter crisis: We will distribute Russian gas to you through our Turkish lands

    Friday, October 28, 2022   No comments

President Recep Tayyip Erdogan announced that Turkey will distribute natural gas coming from Russia to Europe through its territory through the “Turkish Stream” project.

In a speech during an introductory event for the "Turkey Century" campaign in the capital, Ankara, Erdogan indicated that this will be the result of talks with Moscow.

On the other hand, the President revealed that his government will soon start work on the Istanbul Canal project, and that it will thus save the Bosphorus Strait from environmental threats.

He referred to the discovery of 540 billion cubic meters of natural gas reserves in the Black Sea previously, adding: "God willing, we will soon share good news with our people in energy."

The “Turkish Stream” is two pipelines to transport gas from Russia to Turkey and Europe, passing through the Black Sea. The first pipeline feeds Turkey, and the second is eastern and southern European countries.

Erdogan stressed that one of the first goals of the “Turkey Century” vision is to give the country a new constitution that will be the product of the national will.

He said, "In the past twenty years, we have implemented historical monuments and services in all fields, from education to health, from justice to security, from transportation to energy, and from industry to agriculture, but there are also things that we have not been able to achieve despite our efforts."

He added: "Acquiring a new constitution for our country, the product of the national will, is one of the first goals of our vision, the century of Turkey. This new constitution will enhance the stability of the country, increase the prosperity of the people, enhance the rule of law, pluralism and justice, guarantee the freedoms of every citizen, and provide our young people with a hope for the future."

And he added: “We will raise the century of Turkey by meeting the aspirations of our young people in all fields from technology to art, and from sports to the environment. We will advance Turkey’s century by making our country one of the top ten countries in the world in all political, economic, technological, military and diplomatic fields.”

Erdogan indicated that “Turkey’s century” is the century of replacing identity politics with a politics of unity, polarization with integration, denial with embrace, domination with freedom, and hate with love.

He pointed out that "Turkey's Century" is the name of a new beginning for combining real actions with sincere acceptance, putting human values ​​before ideological fanaticism, giving preference to truth over fanaticism, and showing the truth to those who turn their backs on it.

He explained that the vision, spirit and philosophy of "Turkey's Century" means the Century of Sustainability, saying: "Based on this concept, we will strengthen an ecosystem that embraces life with all its elements. In parallel, we will move forward in our struggle to keep pace with the path of the world."

He stressed that "Turkey's century" will be the century of peace for the country, and that it will continue to work to achieve stability in its geographical region and the world, based on the concept of "the world is greater than five."

The Turkish president set a short-term goal for Turkey to reach a trillion dollars in foreign trade, and 100 billion dollars in tourism revenues.

He pointed out that they are moving forward in establishing and developing infrastructure facilities in order to transform Turkey into a global production and supply center whose necessity has been demonstrated during the Corona pandemic.

In this regard, President Erdogan announced raising the production capacity of electric energy from 31,846 megawatts to 101,518 megawatts.

According to Erdogan, successive Turkish governments have worked to increase the number of archaeological sites of the country included in the World Heritage List of the United Nations Educational, Scientific and Cultural Organization "UNESCO", and increased the number of archaeological sites that have been restored from 46 to 5,781 sites.

In addition to the Istanbul Canal project, President Erdogan indicated that he will announce new projects in Turkey before the elections.

In light of the "Turkey Centenary" vision, Erdogan confirmed their goal of transforming Turkey into the most important and largest industrial and commercial country in the world, saying: "In the next stage, we will discuss the latest and most effective production strategies and implement them on the ground."

To achieve this goal, the Turkish President promised to continue supporting high-tech value-added industries, increasing direct production centers in order to expand the market and increase world opportunities.

He stressed the importance of science in the "centennial of Turkey", saying: "We are going through a stage in which we are looking for the impact of science and technological development on the future of humanity, and we plan to have a say in this field in the future, by supporting scientific research in the public and private sectors in order to achieve the well-being of our country and our citizens. “.

He added, "We will work to enter at least 10 Turkish universities in the global ranking of the first 500 universities in the world."

Tuesday, October 11, 2022

The White House: Washington is reassessing the relationship with Riyadh after the “OPEC +” decision

    Tuesday, October 11, 2022   No comments

 The United States announced that it needs to reconsider relations with Saudi Arabia, after it supported the decision of the "OPEC +" group to reduce oil production.

John Kirby, the strategic communications coordinator for the National Security Council at the White House, told CNN that the United States needs to reassess its relationship with the kingdom, including arms sales.

"I think the president has been very clear that this is a relationship that we have to continue to re-evaluate, that we need to be ready to reconsider, and certainly in light of the OPEC decision, I think this is his time," he added.


"We are willing to work with Congress to think about what that relationship should look like," Kirby said when asked about his reaction to Democrats' call for a freeze on arms sales to Saudi Arabia.

On Friday, oil prices jumped to their highest level in five weeks, two days after “OPEC +” cut its production by two million barrels per day, before falling back on Monday amid fears of a possible global recession.

This comes after Democratic lawmakers called for a freeze in relations with Riyadh, most notably Democratic Senator Bob Menendez, Chairman of the Committee on Foreign Relations in the US Senate, who called for a freeze on cooperation with Saudi Arabia, including arms sales.

 "I think it's time for a comprehensive reassessment of the U.S. alliance with Saudi Arabia," Senator Chris Murphy, chair of the Senate Foreign Relations Subcommittee on the Middle East, told CNBC.

In the House of Representatives, Tom Malinowski, Sean Kasten, and Susan Wilde introduced legislation seeking to withdraw US forces from Saudi Arabia and the UAE.

Rep. Robin Gallego suggested that the United States restore the Patriot missile defense systems deployed in Saudi Arabia, adding on Twitter: "If they prefer the Russians that much, they can use their very reliable military technology."

A few days ago, the "Washington Times" newspaper reported that a group of US Democratic representatives proposed a bill that would provide for the withdrawal of all forces from Saudi Arabia, in addition to the withdrawal of missile defense systems.

And the newspaper "Bloomberg" indicated that the United States should end the "special status" of the Kingdom in US foreign policy, and reduce the level of diplomatic relations with it.

As for US Secretary of State Anthony Blinken, he said that the United States is studying a number of response measures, including Saudi Arabia, after the "OPEC +" decision to reduce oil production.

The United States criticized the decision, considering it "short-sighted", while the White House saw that the decision shows the bias of the "OPEC +" alliance to Russia.

Meanwhile, UAE's Mohamed bin Zayed meets Putin, highlighting the shifting of allliances and roles resulting from the war in Ukraine.

Speaking with Bin Zayed al-Nahyan, Putin said Russia aimed to create stability on energy markets and ensure that supply and consumption were balanced.

Sunday, October 09, 2022

Media Review: The West is Paying the Price for Instrumentalizing Human Rights and Convenience-Driven Policies

    Sunday, October 09, 2022   No comments

As revealed again by the West’s rhetorical support of protesters in Iran, the practice of using human rights claims to go after governments the West does not like and ignoring human rights abuses when they are done by Western-supported regimes or when done in Western countries, such a practice is very short-sighted and tends to backfire.

Case in point: for more than seventy years, the US and other

European governments provided unwavering support to the Saudi regime even when such regime banned women from driving, unleashed its morality police to beat shop owners who did not close their shops during Friday prayers, abused migrant workers, oppressed its Shia community, beheaded dissidents, launched illegal wars against its neighbors, and sent a team of 15 operatives to lure a dissident into its embassy building and dismember his body. Then, after one single decision by the Saudi regime to cut oil export just one month before midterm elections in the US and when Russia's oil is sanctioned, and the media and politicians are now gearing up to tell the world how bad the Saudi regime is. Soon, you will see more commentaries and political talking points unmasking Saudi Arabia’s “bad” human rights record. Given the context, few informed people will pay attention, and even fewer will trust the human rights claims behind which the West stands to justify its sanctions or interventions in countries run by leaders who do not follow and obey Western preferences. Here, the preeminent NYT and its top influencer is using a line from Trump’s book, They Are Laughing At Us, to promote the idea of punishing the Saudi regime.

Thursday, October 06, 2022

“OPEC +” agrees to reduce oil production by an average of two million barrels per day

    Thursday, October 06, 2022   No comments

 Reuters quoted sources in Vienna as confirming that the "OPEC +" group agreed today to reduce oil production by two million barrels per day.

The Joint Ministerial Monitoring Committee of the Global Oil Exporters Alliance "OPEC +", which includes ministers of prominent producing countries, agreed to reduce crude production by two million barrels per day in response to the decline in prices.

This came according to what was quoted by "Reuters" agency, quoting 3 sources familiar with the events, and as expected by media reports earlier, and in a move believed to destroy the efforts of the United States to increase supplies and reduce prices.

A disaster for the United States and will cause crises

On Tuesday, CNN reported, quoting a White House document, that "the United States is concerned that a possible decision by "OPEC" to reduce oil production may cause major crises for the country, and can be considered a hostile act."

And a report by the American network stated that the White House “warns that the “OPEC +” meeting may cause great damage to the United States, and that the decision to reduce oil production will be a “complete disaster” for the country.

The United States, in an attempt to persuade its OPEC allies, is proposing to buy back up to 200 million barrels of oil from its OPEC partners, which will be used to refill the US Strategic Petroleum Reserve, which President Joe Biden uses to help lower oil prices.

This is while another US official stated, according to "CNN", that the White House "is in a state of panic and panic."

"We have made clear that energy supplies must meet demand to support economic growth and lower prices for consumers around the world, and we will continue to talk to our partners about that," National Security Council spokeswoman Adrian Watson said in a statement.

A few days ago, the Wall Street Journal reported, quoting participants in the upcoming “OPEC +” meeting, that the coalition countries were “considering reducing oil production by more than one million barrels per day.”

Action to Prevent fluctuations

Saudi Arabia and other members of OPEC Plus, which includes OPEC countries and non-OPEC producers including Russia, say they are seeking to prevent volatility and not target a specific oil price.

Brent crude, the global benchmark, rose today, Wednesday, towards $93 a barrel, after rising yesterday.

The West accuses Russia of using energy as a weapon, and of creating a crisis in Europe that may force it to ration gas and electricity this winter.

In contrast, Moscow accuses the West of using the dollar and financial systems - such as Swift - as a weapon in response to Russia sending troops to Ukraine last February.


US President Joe Biden expressed his disappointment over the decision of the OPEC Plus alliance to reduce oil production, and stressed that his administration would seek to reduce the alliance's control over energy prices, according to a statement issued by the White House.

The statement described the OPEC Plus decision as "short-sighted", and said that the decision - which is the largest reduction in oil production since the Covid-19 pandemic - will harm countries that are "already reeling" under the weight of high oil prices in light of a global economy that in turn suffers from the "negative impact". Russia's attack on Ukraine, according to the statement.

The White House considered that the "wrong" decision was in Russia's own interest, and said, "It is clear that OPEC Plus is allied with Russia."

He added that "in light of today's decision, the Biden administration will consult with Congress on additional tools and mechanisms to reduce the control of the coalition of oil-producing countries on energy prices."

On the other hand, Russian Deputy Prime Minister Alexander Novak described the decision taken by the OPEC Plus alliance during its meeting in Vienna today, Wednesday, as "unprecedented", and attributed it to the need to achieve balance in the oil market.

Novak warned - in statements he made to state television - that the trend to impose a ceiling on the price of Russian oil - a step proposed by the European Union as part of new planned sanctions on Moscow - will have a detrimental effect on global markets.

Novak stressed that Russian companies will not send oil supplies to countries that adopt this ceiling.

On Thursday, the US administration seem to escalate its reaction to this event. The White House hinted that it would “re-evaluate the issue of Saudi Arabia’s trade preference with regard to arms sales and defense support,” following the decision of the “OPEC +” group to reduce the collective production limit.

The President of the US National Economic Council, Brian Dees, indicated today, Thursday, that "the administration of President Joe Biden is in the process of consulting with Congress on the issue of Saudi Arabia's commercial preference for arms sales and defense support."
In response to a question about whether Saudi Arabia deserves to obtain weapons and US defense support in light of the decision of the “OPEC +” group, Deiss said: “We will conduct an assessment and consult closely with Congress on a number of issues related to this matter.”
The member countries of the “OPEC +” alliance agreed, yesterday, Wednesday, to reduce the collective production limit by two million barrels per day, in what is considered the largest supply curb since the 2020 agreement, in the midst of the historic price collapse due to the Corona pandemic.
Following the producers' decision, US President Joe Biden expressed his disappointment with the "OPEC +" agreement, stressing the importance of global energy supplies in light of the war in Ukraine.
White House spokeswoman Karen Jean-Pierre said that the “OPEC +” decision to reduce oil production, which is likely to raise prices in Western countries, “shows that the alliance is biased towards Russia.”
And the American network “CNN” reported, earlier, quoting a document of the White House, that “the United States is concerned that a possible decision by “OPEC” to reduce oil production may cause major crises for the country, and it can be considered a “hostile act.”
And a report by the American network stated that the White House “warns that the “OPEC +” meeting may cause great damage to the United States, and that the decision to reduce oil production will be a “complete disaster” for the country.
Read also: The “OPEC +” decision to reduce production .. its political and economic impact on the Biden administration
In turn, the Saudi Energy Minister, Abdulaziz bin Salman, confirmed that the decision of the “OPEC +” group to reduce oil production by two million barrels per day “is not an aggressive move and does not aim to harm anyone.”
As for Russian Deputy Prime Minister Alexander Novak, he announced that the decision of the “OPEC +” alliance to reduce oil production “is an unprecedented decision,” noting that the reason for taking such a decision “is the need to balance the market before winter.”

Tuesday, September 06, 2022

Russian-Chinese agreement: “Siberia Power” gas payments in rubles and yuan

    Tuesday, September 06, 2022   No comments

Russia's Gazprom and China's CNPC have agreed to transfer payments for gas supplied through the "Siberia Power" to the ruble and yuan.

In a related context, the Russian government is studying a proposal saying that "Moscow may buy between three and four billion dollars worth of Chinese yuan, per month, until the end of the year, to help stop the rise of the ruble."

On August 12, the Chinese ambassador to Russia, Zhang Hanhui, announced Friday that "China will continue to increase national currency settlements in trade with Russia."

"Currently, the sanctions imposed by the United States and other Western countries on Russia have caused certain obstacles in trade cooperation between Russia and China. The competent authorities of the two countries need to improve coordination and interaction in order to solve all the difficulties associated with this," the ambassador told Sputnik.

In related news, and commenting on the energy crisis in Europe, Turkish President Recep Tayyip Erdogan said today, Tuesday, that Europe will witness a difficult winter against the background of the gas crisis, stressing that Russia was forced to use this weapon after European sanctions, noting that "Turkey does not face that problem."

"Ankara does not have a gas problem, and Putin was forced to use the gas weapon against Europe's position and its sanctions," Erdogan told reporters, before heading to the Balkan countries, including Bosnia, Serbia and Croatia.

The Turkish president explained that "Europe will live in a difficult situation this winter because of the gas outage... However, we do not have any problem with natural gas so far," noting that "Europe is reaping the fruits of what it sowed by taking measures and decisions against Russia, and the latter used the weapons that it has sown." With her hand, the most important of which is gas.

A document seen by Reuters on Monday showed that European Union energy ministers are set to discuss options to rein in high energy prices, including setting gas price caps and emergency credit lines for energy market participants.

On August 28, the High Representative of the European Union for Foreign Affairs and Security Policy, Josep Borrell, said that the European Union will face, in the short term, serious challenges with regard to sanctions imposed on Russia, due to the situation in Ukraine.

Monday, August 08, 2022

UAE backs China on Taiwan, condemns 'provocative visits' after Pelosi trip

    Monday, August 08, 2022   No comments

A day after Pelosi's trip, on Thursday, the influential GCC state, UAE,  reiterated its support for China's "sovereignty" over Taiwan and condemned "provocative visits" after US House of Representatives Speaker Nancy Pelosi landed on the island earlier this week.

"The UAE affirmed its support for China's sovereignty and territorial integrity, as well as the importance of respecting the 'One China' principle... the UAE indicated its concern over the impact of any provocative visits on stability and international peace," the Emirati foreign ministry said in a statement.

Pelosi landed in Taiwan as part of a wider Indo-Pacific tour on Tuesday - enraging China, which regards Taiwan as a breakaway province.

The UAE is a key US ally in the Middle East, but also has burgeoning ties with China. It has previously expressed strong support for China's sovereignty over Taiwan.

A Sky News investigation found earlier this year that the UAE was providing China with "black sites" to detain and forcibly disappear Uighur activists.

Abu Dhabi and Washington have taken differing stances on some key global issues, including Russia's invasion of Ukraine - with the UAE failing to follow the US in condemning Moscow for its actions.

The US reportedly intervened last year in Beijing's construction of a Chinese military base in the UAE.

Saturday, August 06, 2022

Türkiye, Russia to work against terror groups in Syria; Erdoğan confirms the payment of Russian natural gas in rubles

    Saturday, August 06, 2022   No comments

President Recep Tayyip Erdoğan said on Aug. 5 that he discussed with his Russian counterpart Vladimir Putin the steps to be taken against terrorist organizations in Syria and agreed to take necessary steps to protect Syria’s territorial integrity.

Erdoğan has also confirmed that Türkiye will start paying for some of its Russian natural gas imports in rubles.

"As Türkiye, our door is open to everyone. One good thing about this Sochi visit is that we agreed on the ruble with Mr. Putin," Erdoğan said.

"Since we will conduct this trade in rubles, it will of course bring money to Türkiye and Russia."

Neither Erdoğan nor Russian officials have said what portion of the gas will be covered by ruble payments.

Putin and Erdoğan on Aug. 5 adopted a statement pledging to boost political and economic cooperation including in energy and trade.

At the start of the talks Putin also praised the TurkStream natural gas pipeline project, saying Europe should be grateful to Türkiye for uninterrupted supplies of Russian gas.

"I believe that (today’s meeting) will open a whole different page in Turkish-Russian relations," Erdoğan said.

Putin and Erdoğan last met for a three-way summit in Iran in July.

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Friday, August 05, 2022

Putin and Erdogan agreed to buy Turkey part of Russia's gas in rubles; Kadyrov to visit Turkey

    Friday, August 05, 2022   No comments

Russian Deputy Prime Minister Alexander Novak announced that Russian President Vladimir Putin and his Turkish counterpart Recep Tayyip Erdogan have agreed to sell part of Russian gas to Turkey in rubles.

"Gas supplies to Turkey were discussed, which is supplied in fairly large quantities: 26 billion cubic meters annually. During the negotiations, the two presidents agreed that part of the gas supplies would be paid for in rubles," Novak said.

"We are talking about a gradual transition to national currencies, and in the first stage, part of the supplies will be paid in Russian rubles," he added.

Earlier in the day, Russian presidential spokesman Dmitry Peskov announced the end of talks between Russian President Vladimir Putin and his Turkish counterpart, Recep Tayyip Erdogan, in the Russian city of Sochi, after they lasted for four hours. Putin and Erdogan discussed several files, most notably the files of Syria, Libya, Ukraine and energy.

It is worth mentioning here that the Russian President issued his instructions to transfer all payments for gas supplies to Europe into the national currency, stressing that "it makes no sense to supply Russian goods to the European Union or the United States of America and to receive payments in euros and dollars."

There were reports that the president of Chechnya, Ramazan Kadyrov attended the meetings in Sochi. Perhaps responding to such reports, Kadyrov released the following statement:

During the face-to-face talks between Vladimir Vladimirovich Putin and Recep Tayyip Erdogan, I personally met Turkish Foreign Minister Mevlut Cavusoglu and head of the Turkish national intelligence organization Hakan Fidan. We had an informal rich and productive conversation, during which we came to a common opinion on the need to establish close cooperation between Turkey and the Chechen Republic on various issues.

Historically, our peoples are connected by a lot, especially since a fairly large number of ethnic Chechens currently live in Turkey. Mevlut Cavusoglu expressed hope that this informal meeting would be the beginning of further development of relations and establishing contacts. I agreed with the Turkish Foreign Minister and also noted that both sides would benefit from joint undertakings.

At the end of the meeting, the distinguished guests invited me to visit Turkey, during which we could discuss a wide range of cooperation issues, including economic ones. Of course, I accepted the invitation.

Saturday, April 23, 2022

Russia Is Making Even More Money on Energy under Sanctions Regime; Ukrainian Finance Minister: embargo would raise prices so high that Russia could still earn significant revenue from oil and gas sales elsewhere

    Saturday, April 23, 2022   No comments

Ukrainian Finance Minister Sergii Marchenko said a potential European embargo on Russian energy would significantly raise prices and thus increase Russia’s earnings, according to a Wall Street Journal report.

Marchenko said that an embargo would raise prices so high that Russia could still earn significant revenue from oil and gas sales elsewhere.

This is not an unforseen outcome; any systems thinker should be able to see how shortage in a product or good can increase profit. For example, amid chip shortage and the pandemic slowdown, car makers were producing less cars but they were selling what they were making at much higher prices, not only offsetting the lower production, but increasing profits.

Similarly, Russian profit from oil export increased and will continue to increase until the market adjust.

 Russia expects to earn 798.4 billion rubles ($9.6 billion) in additional revenue from energy sales in April due to high oil prices, the finance ministry said, as Moscow needs cash to finance its obligations while being cut off from its reserves.

In related news, Argentine Foreign Minister Santiago Cafiero talks about Western sanctions imposed on Russia, and says that his country does not consider them an effective way to solve the crisis in Ukraine.

Today, Saturday, Argentine Foreign Minister Santiago Cafiero stressed that his country does not consider the sanctions imposed on Russia an effective way to resolve the crisis in Ukraine.

He said that his country proposes a return to dialogue and calm, pointing out that imposing sanctions and siege is not a fruitful way to achieve peace, dialogue and diplomatic negotiations.

"For Argentina, the interests of Latin America are a priority, and there are now problems in the region that deserve attention," Cafiero noted.

He added, "It is true that the war in Europe has, to a certain extent, captured the public's attention, but the humanitarian crisis in Haiti is no less urgent, and it does not surface because the media does not focus on it."

Regarding preparations for the Ninth Summit of the Americas, which will be held in June in Los Angeles, Cafiero stressed "the need to discuss food security in the region," adding that the United States "cannot stand aside."

He believed that judging countries and imposing sanctions and embargoes "are not Argentina's style, and they never were, and it seems to us that these measures in the region have only led to more inequality and social backwardness."

"Buenos Aires will not support Russia's exclusion from all international organizations, including the G20, so that we do not believe that this contributes to resolving the crisis," said Gabriela Cerruti, a press spokeswoman for the President of Argentina.


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