COP28 Sees Calls for Balance, Realism in Dealing with Energy File

Expo Dubai hosts the COP28 summit (Reuters)
Expo Dubai hosts the COP28 summit (Reuters)
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COP28 Sees Calls for Balance, Realism in Dealing with Energy File

Expo Dubai hosts the COP28 summit (Reuters)
Expo Dubai hosts the COP28 summit (Reuters)

As the negotiations in COP28 entered the heated stages, discrepancy between countries regarding the position on traditional fuels increased.
While Western states are pressing to adopt a position towards getting rid of fuel, another front appears to be resisting this course, and pushing towards a solution based on treating traditional fuels and the resulting emissions, in order to achieve balanced economic growth.
The latest trend is led by OPEC member states, and is approved by countries with developing or small economies. These countries indicate that their position does not stem from opposition to environmental and climate protection agendas, but rather from the fact that getting rid of traditional fuels will result in a major economic blow that the world will be unable to bear.
A number of officials told Asharq Al-Awsat that this position has nothing to do with the interests of oil producers alone, but rather with the wellbeing of other countries as well.
Speaking on condition of anonymity, an official from a sub-Saharan African country said: “We do not have sufficient development, and we barely produce electricity using gas and diesel... Now they are asking us to dispense with traditional fuel... Shall we live in the darkness? This is not a fair agreement.”
In the corridors of the conference, news was circulated about an internal memorandum from the OPEC secretariat dated Dec. 6, in which OPEC Secretary-General Haitham Al-Ghais called on the members of the organization to reject any agreement targeting fuel and not emissions.
“It seems that the undue and disproportionate pressure against fossil fuels may reach a tipping point with irreversible consequences, as the draft decision still contains options on fossil fuels phase out," the letter said, as reported by Reuters.
The letter urged delegations at COP28 to “proactively reject any text or formula that targets energy i.e. fossil fuels rather than emissions.”
Although OPEC refused to comment on the matter, Al-Ghais stressed during a session on Wednesday evening the need to pay attention to the idea of tackling emissions, especially since it achieves good results “on the ground” and can lead to the same final results.
On Saturday, an OPEC official said on behalf of the organization’s Secretary-General that the COP28 summit must find “realistic methods” to reduce emissions that need to involve all “energies” and technologies.

 



Oil Heads for Weekly Gains on Anxiety over Intensifying Ukraine War

Pump jacks operate in front of a drilling rig in an oilfield in Midland, Texas US August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford/File Photo
Pump jacks operate in front of a drilling rig in an oilfield in Midland, Texas US August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford/File Photo
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Oil Heads for Weekly Gains on Anxiety over Intensifying Ukraine War

Pump jacks operate in front of a drilling rig in an oilfield in Midland, Texas US August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford/File Photo
Pump jacks operate in front of a drilling rig in an oilfield in Midland, Texas US August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford/File Photo

Oil prices extended gains on Friday, heading for a weekly uptick of more than 4%, as the Ukraine war intensified with Russian President Vladimir Putin warning of a global conflict.
Brent crude futures gained 10 cents, or 0.1%, to $74.33 a barrel by 0448 GMT. US West Texas Intermediate crude futures rose 13 cents, or 0.2%, to $70.23 per barrel.
Both contracts jumped 2% on Thursday and are set to cap gains of more than 4% this week, the strongest weekly performance since late September, as Moscow stepped up its offensive against Ukraine after the US and Britain allowed Kyiv to strike Russia with their weapons.
Putin said on Thursday it had fired a ballistic missile at Ukraine and warned of a global conflict, raising the risk of oil supply disruption from one of the world's largest producers.
Russia this month said it produced about 9 million barrels of oil a day, even with output declines following import bans tied to its invasion of Ukraine and supply curbs by producer group OPEC+.
Ukraine has used drones to target Russian oil infrastructure, including in June, when it used long-range attack drones to strike four Russian refineries.
Swelling US crude and gasoline stocks and forecasts of surplus supply next year limited price gains.
"Our base case is that Brent stays in a $70-85 range, with high spare capacity limiting price upside, and the price elasticity of OPEC and shale supply limiting price downside," Goldman Sachs analysts led by Daan Struyven said in a note.
"However, the risks of breaking out are growing," they said, adding that Brent could rise to about $85 a barrel in the first half of 2025 if Iran supply drops by 1 million barrels per day on tighter sanctions enforcement under US President-elect Donald Trump's administration.
Some analysts forecast another jump in US oil inventories in next week's data.
"We will be expecting a rebound in production as well as US refinery activity next week that will carry negative implications for both crude and key products," said Jim Ritterbusch of Ritterbusch and Associates in Florida.
The world's top crude importer, China, meanwhile on Thursday announced policy measures to boost trade, including support for energy product imports, amid worries over Trump's threats to impose tariffs.