Gas Is Stronger Than Politics between Algeria, Spain

The Algerian president receives the Spanish Foreign Minister on September 30, 2021. (Algerian News Agency)
The Algerian president receives the Spanish Foreign Minister on September 30, 2021. (Algerian News Agency)
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Gas Is Stronger Than Politics between Algeria, Spain

The Algerian president receives the Spanish Foreign Minister on September 30, 2021. (Algerian News Agency)
The Algerian president receives the Spanish Foreign Minister on September 30, 2021. (Algerian News Agency)

Algerian gas topped Spain’s gas imports during the first quarter of 2024 despite a trade rift between Algiers and Madrid over the Sahara conflict.

According to a report on gas imports published by El Espanol newspaper, Algerian gas accounted for 42 percent of Spain’s gas imports during the past three months, while imports from Russia reached 25.7 percent, and 18.2 percent from the US, during the same period.

The newspaper relied on data published by Enagas, the leading Spanish company in the field of transporting natural gas from abroad, and the technical supervisor of energy systems in Spain.

The company explained that the rise in the quantities of gas imported from Algeria was the result of the increase in the pumping through the Medgas pipeline, which connects the city of Beni Saf, in western Algeria, to the city of Almeria in southern Spain.

According to a report by the company, the flow of Algerian gas to Spain via Medgas, between January and March, increased by 15.4 percent compared to the same period in 2023, when the quantity reached 25.8 terawatts.

Algeria topped the countries supplying energy to Spain throughout 2023, with coverage reaching 29.2 percent of the country’s needs, ahead of the United States, which came in second.

Algeria had frozen foreign trade operations of products and services with Spain from June 2022 following an announcement by Spanish Prime Minister Pedro Sanchez that his country was siding with the Moroccan autonomy plan for Western Sahara.

Algeria strongly supports Polisario’s efforts to establish a Sahrawi state, causing a yearslong rift between Algiers and Rabat.

However, Algiers excluded gas from the decision to stop trade with Spain, as the two countries are bound by long-term energy contracts and any violation of these agreements would have resulted in the case being referred to international arbitration.



Oil Edges Up on Strong US GDP Data

A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
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Oil Edges Up on Strong US GDP Data

A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo

Oil prices were up slightly on Friday on stronger-than-expected US economic data that raised investor expectations for increasing crude oil demand from the world's largest energy consumer.

But concerns about soft economic conditions in Asia's biggest economies, China and Japan, capped gains.

Brent crude futures for September rose 7 cents to $82.44 a barrel by 0014 GMT. US West Texas Intermediate crude for September increased 4 cents to $78.32 per barrel, Reuters reported.

In the second quarter, the US economy grew at a faster-than-expected annualised rate of 2.8% as consumers spent more and businesses increased investments, Commerce Department data showed. Economists polled by Reuters had predicted US gross domestic product would grow by 2.0% over the period.

At the same time, inflation pressures eased, which kept intact expectations that the Federal Reserve would move forward with a September interest rate cut. Lower interest rates tend to boost economic activity, which can spur oil demand.

Still, continued signs of trouble in parts of Asia limited oil price gains.

Core consumer prices in Japan's capital were up 2.2% in July from a year earlier, data showed on Friday, raising market expectations of an interest rate hike in the near term.

But an index that strips away energy costs, seen as a better gauge of underlying price trends, rose at the slowest annual pace in nearly two years, suggesting that price hikes are moderating due to soft consumption.

China, the world's biggest crude importer, surprised markets for a second time this week by conducting an unscheduled lending operation on Thursday at steeply lower rates, suggesting authorities are trying to provide heavier monetary stimulus to prop up the economy.