Saudi Energy Minister: It is Important to Provide Clean, Sustainable Energy for Africa

The Minister of Energy during the dialogue session on the sidelines of the Saudi-Arab-African Conference (Asharq Al-Awsat)
The Minister of Energy during the dialogue session on the sidelines of the Saudi-Arab-African Conference (Asharq Al-Awsat)
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Saudi Energy Minister: It is Important to Provide Clean, Sustainable Energy for Africa

The Minister of Energy during the dialogue session on the sidelines of the Saudi-Arab-African Conference (Asharq Al-Awsat)
The Minister of Energy during the dialogue session on the sidelines of the Saudi-Arab-African Conference (Asharq Al-Awsat)

Access to clean and sustainable energy is important for Africa, announced Saudi Energy Minister Prince Abdulaziz bin Salman at the Saudi-Arab-African Economic Conference in Riyadh.

Prince Abdulaziz indicated that African economies need to grow and their people need to prosper, indicating that if these two things happen, the global economy will grow.

At the opening session on Thursday, Prince Abdulaziz stressed that climate change is crucial and essential, but it should not be "attended to by crushing the bones and the future of the less empowered people."

The Minister reported that after speaking to his African counterparts, they indicated they had not received any money from the Green Climate Fund.

Prince Abdulaziz reiterated that African people need to grow and prosper, which will help the global economy grow and prosper.

Saudi Arabia wants to pursue cooperation with all countries suffering from climate change as part of the Middle East Green Initiative, which Crown Prince Mohammed bin Salman bin Abdulaziz founded.

In 2021, the Kingdom launched the Middle East Green Initiative, a step that confirms its commitment to leading global efforts in the field of sustainability.

The initiative is a regional endeavor to mitigate the effects of climate change and work together to achieve global climate action goals.

The Minister asserted that the Kingdom focuses on efforts and actions rather than words and will continue to implement its initiatives.

Prince Abdulaziz asserted that oil demand is healthy and robust, noting that speculators are to blame for the recent drop in crude prices.

The Minister said some participants in the oil market have been misunderstanding increases in oil exports in recent months from Arab nations in OPEC and their correlation with those countries' production.

Shipments are seasonal and tend to dip in summer, then rise again in September and October, meaning they should not be viewed as reflecting fluctuations in output, he said.

"It's an abuse of numbers" to fail to distinguish between rising exports and rising production, said Prince Abdulaziz.

- Memoranda of Understanding

Prince Abdulaziz signed on Thursday five memorandums of understanding with several African countries, including Ethiopia, Senegal, Chad, Nigeria, and Rwanda.

The memorandum of understanding signed between the Kingdom and Rwanda aims to implement the initiatives of the oil demand sustainability program, raise the economic and environmental efficiency of gas and oil, and focus on innovation and environmental friendliness.

It also asserts the need to enhance integration between the petroleum and petrochemical industries, develop demand for hydrocarbon resources, and achieve the goals of the 'Middle East Green Initiative.'

The memorandum is a practical implementation of the Kingdom's 'Empowering Africa Initiative,' launched last month during the Middle East and North Africa Climate Week in Riyadh.

It aims to assist African countries in meeting the challenges of obtaining reliable and sustainable energy supplies at the most affordable costs while reducing greenhouse gas emissions and pollution and improving human health and well-being.



Oil Slips as Iran-Israel Conflict Enters Sixth Day

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
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Oil Slips as Iran-Israel Conflict Enters Sixth Day

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo

Oil prices fell on Wednesday, after a gain of 4% in the previous session, as markets weighed up the chance of supply disruptions from the Iran-Israel conflict and as they ponder a direct US involvement.

Brent crude futures fell 93 cents, or 1.2%, to $75.52 a barrel by 0918 GMT. US West Texas Intermediate crude futures fell 88 cents, also 1.2%, to $73.96 per barrel.

US President Trump warned on social media on Tuesday that US patience was wearing thin, and called for an "unconditional surrender" from Iran.

While he said there was no intention to kill Iran's leader Ali Khamenei "for now," his comments suggested a tougher stance toward Iran as he weighs whether to deepen US involvement.

A source familiar with internal discussions said one of the options Trump and his team are considering included joining Israel on strikes against Iranian nuclear sites.

A direct US involvement threatens to widen the confrontation further, putting energy infrastructure in the region at higher risk of attack, analysts say.

"The biggest fear for the oil market is the shutdown of the Strait of Hormuz," ING analysts said in a note.

"Almost a third of global seaborne oil trade moves through this chokepoint. A significant disruption to these flows would be enough to push prices to $120 [a barrel]," the bank added.

Iran is OPEC's third-largest producer, extracting about 3.3 million barrels per day (bpd) of crude oil.

Meanwhile, Iranian ambassador to the United Nations in Geneva Ali Bahreini said on Wednesday that Tehran has conveyed to Washington that it will respond firmly to the United States if it becomes directly involved in Israel's military campaign.

Markets are also looking ahead to a second day of US Federal Reserve discussions on Wednesday, in which the central bank is expected to leave its benchmark overnight interest rate in the range of 4.25% to 4.50%.

However, the conflict in the Middle East and the risk of slowing global growth could potentially push the Fed to cut rates by 25 basis points in July, sooner than the market's current expectation of September, said Tony Sycamore, market analyst with IG.

Lower interest rates generally boost economic growth and demand for oil.

Confounding the decision for the Fed, however, is the Middle East conflict's potential creation of a new source of inflation via surging oil prices.

US crude stocks fell by 10.1 million barrels in the week ended June 13, market sources told Reuters, citing American Petroleum Institute figures on Tuesday. Official Energy Information Administration data is due later on Wednesday.