عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Aramco’s Oil Production Costs Least in the World at $2.8 Per Barrel

AAWSAT AR
AAWSAT AR
TT
TT

Aramco’s Oil Production Costs Least in the World at $2.8 Per Barrel

AAWSAT AR
AAWSAT AR

Saudi Aramco has revealed that it offers the world’s lowest average cost of crude oil production.

It said the average cost of crude oil production in the company amounted to SAR10.6 ($2.8) per barrel of oil equivalent in 2018.

The average capital expenditure incurred by the company in the exploration and production sector for 2018 is SAR17.1 riyals ($ 4.7) per barrel of oil produced according to the methodology of the market adviser, Aramco said in a statement.

It also explained that it occupies a unique position as the world’s lowest-cost producer, according to a comparison of production cost data in the five major international oil companies: “Exxon Mobil,” “Shell,” “Chevron,” “Total,” “BP” and other oil and gas companies.

The company said its reserves consist of 201.4 billion barrels of crude oil and condensate, 25.4 billion barrels of natural gas liquids and 185.7 trillion standard cubic feet of natural gas.

It pointed out that its oil equivalent reserves are sufficient to cover the 52-year-old proven reserves life span, which is longer than that of any of the five major international oil companies, which ranges from nine to 17 years, based on publicly available information.

According to the news circulated, Saudi Arabia has informed the Organization of the Petroleum Exporting Countries (OPEC) that it raised its crude production in October to 10.3 million barrels per day (BPD), a 1.1 million BPD surge compared to September.

Meanwhile, the Kingdom affirmed on Thursday that the initial public offering (IPO) and listing of the company's shares will have no impact on compliance with the agreement to reduce production.

OPEC’s Secretary-General Mohammed Barkindo said that Saudi Arabia, OPEC’s top producer, and de facto leader, has reassured the exporting group that a stock market listing of oil giant Aramco would not affect the Kingdom’s role in the group or commitment to output deals.

He said he was confident that the OPEC and its allies (OPEC+) would continue with a supply curb agreement in 2020 and that the fundamentals of the global economy remained strong.

Barkindo noted that there would likely be downward revisions of supply going into 2020 especially from United States shale, adding that some US shale oil firms see output growing by only around 300,000-400,000 BPD.

Most Viewed

 
 
Business

Egypt’s Non-Oil Private Sector Contraction Slows Down in November

The contraction of the non-oil private sector in Egypt slows during November, but business confidence declines to the lowest level in 11 and a half years. (Reuters)
The contraction of the non-oil private sector in Egypt slows during November, but business confidence declines to the lowest level in 11 and a half years. (Reuters)
TT
TT

Egypt’s Non-Oil Private Sector Contraction Slows Down in November

The contraction of the non-oil private sector in Egypt slows during November, but business confidence declines to the lowest level in 11 and a half years. (Reuters)
The contraction of the non-oil private sector in Egypt slows during November, but business confidence declines to the lowest level in 11 and a half years. (Reuters)

The Standard & Poor’s Global Purchasing Managers’ Index showed on Tuesday that the contraction of the non-oil private sector in Egypt slowed in November, but business confidence in the sector fell to its lowest level in 11 and a half years.

The group said in its report that the Purchasing Managers’ Index in Egypt, adjusted in light of seasonal factors, rose to 48.4 points in November from 47.9 points in October, noting that the index was still below the 50 level that separates growth from contraction.

The report noted that high inflation rates and a continuing decline in production and new orders led to a drop in business activity expectations over the next 12 months to their weakest levels since data collection began in April 2012. Inflationary pressures also led to a sharp decline in sales to customers, which contributed to decreased hiring and procurement.

According to the report, levels of production and new business continued to decline strongly in November, although the rates of decline slowed from those recorded in October.

According to the companies surveyed, historically high inflation rates continued to reduce customer demand, while some companies indicated that unresolved import issues were restricting business activity.

Although the decline in production and new business was widespread across all sectors studied, it was particularly noticeable among wholesale and retail companies.

As demand rates continue to deteriorate due to inflationary pressures, non-oil producing companies in Egypt recorded the lowest level of confidence in future activity in the history of the series. The data showed that expectations were only slightly positive, while the manufacturing and construction sectors presented pessimistic forecasts.

David Owen, Senior Economist at S&P Global Market Intelligence, said: “Optimism in the Egyptian non-oil economy is eroding as we approach the end of the year, as economic challenges arising from the Russia-Ukraine war put additional pressure on costs and capacity at businesses. While the resulting downturns in new business and output were not as severe compared to those seen at the start of the year, they are also showing no signs of letting up, stretching a sequence of decline that goes back to late 2021.”

Business

Saudi Private Sector Activity Continues to Grow in November as New Orders Rise

Manufacturers are very optimistic about the next 12 months as they expect a favorable business climate. (SPA)
Manufacturers are very optimistic about the next 12 months as they expect a favorable business climate. (SPA)
TT
TT

Saudi Private Sector Activity Continues to Grow in November as New Orders Rise

Manufacturers are very optimistic about the next 12 months as they expect a favorable business climate. (SPA)
Manufacturers are very optimistic about the next 12 months as they expect a favorable business climate. (SPA)

Saudi Arabia’s non-oil private sector continued its rapid growth during November, driven by the rise of new orders to the highest level in 5 months, according to the Riyad Bank Purchasing Managers’ Index.

The seasonally adjusted Riyad Bank Purchasing Managers' Index slowed to 57.5 in November, from 58.4 in October, but remained well above the 50 mark signaling growth.

According to the report issued by the bank in cooperation with Standard & Poor’s, the index continued to indicate a rapid expansion in the non-oil private sector during the month of November, despite evidence indicating an acceleration of price pressures to their highest levels in nearly a year and a half.

The report added that the rise in raw material prices led to a renewed increase in companies’ sales prices, but demand rates remained strong and new business flows rose at the highest rate since June, with companies acquiring new customers and increasing investment spending.

Naif Al-Ghaith, chief economist at Riyad Bank, said that the Saudi PMI has “shown positive signs of expansion, driven by strong sales, increased orders and effective marketing strategies.”

“Firms anticipate a continuous increase in output, fuelled by a robust inflow of new projects,” he added.

He noted that manufacturers, in particular, were highly optimistic about the next 12 months as they anticipate a favorable business climate.

Al-Ghaith went on to say that the wholesale and retail sectors also showed signs of strong expansion in November, in line with the overall positive sentiment in the Kingdom’s non-oil private sector economy.

“This bodes well for Saudi Arabia's economic growth and suggests a favorable environment for businesses in various industries,” he stated.

Business

China Blue-chip Stocks Hit 5-year Lows, Yuan Eases after Moody's Move

People walk at a shopping compound in Beijing, China December 6, 2023. REUTERS/Tingshu Wang
People walk at a shopping compound in Beijing, China December 6, 2023. REUTERS/Tingshu Wang
TT
TT

China Blue-chip Stocks Hit 5-year Lows, Yuan Eases after Moody's Move

People walk at a shopping compound in Beijing, China December 6, 2023. REUTERS/Tingshu Wang
People walk at a shopping compound in Beijing, China December 6, 2023. REUTERS/Tingshu Wang

China's blue-chip stocks slumped to an almost five-year trough on Wednesday while the yuan currency extended losses, as markets grappled with Moody's cut to China's credit outlook at a time of growing worries about the economy's stuttering recovery.
The ratings agency issued a downgrade warning on China's credit rating on Tuesday, saying costs to bail out local governments and state firms and control its property crisis would weigh on the world's second-largest economy.
China stocks opened down with the CSI300 Index touching its lowest level since Feb. 2019, before recouping earlier losses. It was up 0.2% by midday, while the Shanghai Composite Index was down 0.1%.
Chinese markets have had a torrid time this year as a shaky economic recovery and a deepening property crisis have added to geopolitical challenges, including protracted Sino-US tensions over tech and trade.
The CSI300 Index has tumbled 12.2% so far this year and is set to record one of the worst performer in the region.
The Hang Seng Index, meanwhile, rebounded roughly 0.7% in morning trade, with tech shares leading gains.
"The CSI300 index was hit the hardest in terms of valuation, as the index gets more allocations from foreign investors. Adding the impact of Moody's cut, the index may find a bottom and rebound soon," said Pang Xichun, research director at Nanjing RiskHunt Investment Management Co.
Foreign capital recorded a net inflow via the northbound trading link as of midday, after three consecutive sessions of outflows.
"Moody's decision to downgrade its outlook on China's debt is the latest link in a long string of recent disappointments for investors in Chinese equities," said Yasser El-Shimy, investment analyst at The Motley Fool.
China's economic recovery has shown signs of losing steam quickly after an initial burst in consumer and business activity at the start of the year, weighed down by an ailing housing market, local government debt risks and slow global growth.
FRAGILE YUAN
In the currency market, China's yuan slipped against the dollar on Wednesday even as major state-owned banks continued their efforts to stabilise the currency.
The central bank, the People's Bank of China (PBOC), extended its months-long trend of setting daily guidance fix at levels stronger than market projections, which traders and analysts have widely interpreted as an official attempt to keep the currency stable.
On Wednesday, the PBOC set the midpoint rate, around which the yuan is allowed to trade in a 2% band, at 7.1140 per dollar prior to market opening, 13 pips weaker than the previous fix of 7.1127. But it was 336 pips firmer than Reuters estimate of 7.1476.
"The strong yuan fix continues to convey a message of support for the yuan as domestic demand remains fragile and China's property market continues to struggle to find a foothold," Maybank analysts said in a note.
The spot yuan rate opened at 7.1570 per dollar and was changing hands at 7.1578 at midday, 98 pips weaker than the previous late session close.
China's major state-owned banks stepped up US dollar selling forcefully after the Moody's statement on Tuesday, and they continued to sell the greenback on Wednesday morning, Reuters reported.
The yuan has had a volatile year, having weakened 6.14% to the dollar at one point before recouping some of the losses on growing bets that US interest rates have peaked.
The yuan strengthened 2.55% in November, its best month this year, but it is still down 3.6% year-to-date.
Other global ratings agencies, Fitch Ratings and S&P Global Ratings, made no changes to their respective China credit ratings.
Fitch affirmed China's A+ rating with a stable outlook in August, while S&P Global said on Wednesday it has retained China's A+ rating with a 'stable' outlook.
"We last affirmed our A+ long term ratings on China in June with stable outlook and there has been no changes to that yet," said S&P in an emailed response to queries from Reuters.

Business

Gold Ticks Up as Dollar Slips

Gold jewellery is seen displayed for sale at a Chow Tai Fook jewellery store in Shanghai, China November 27, 2023. REUTERS/Nicoco Chan
Gold jewellery is seen displayed for sale at a Chow Tai Fook jewellery store in Shanghai, China November 27, 2023. REUTERS/Nicoco Chan
TT
TT

Gold Ticks Up as Dollar Slips

Gold jewellery is seen displayed for sale at a Chow Tai Fook jewellery store in Shanghai, China November 27, 2023. REUTERS/Nicoco Chan
Gold jewellery is seen displayed for sale at a Chow Tai Fook jewellery store in Shanghai, China November 27, 2023. REUTERS/Nicoco Chan

Gold prices edged higher on Wednesday as the dollar eased and weaker-than-expected US jobs data cemented expectations that the Federal Reserve's policy tightening cycle has come to an end.
Spot gold rose 0.2% at $2,023.40 per ounce by 0538 GMT. US gold futures for February delivery also rose 0.2% to $2,041.20.
"Volatility in gold prices is likely to remain capped heading into Friday's US non-farm payrolls data," said City Index Senior Analyst Matt Simpson.
"It might take a particularly weak set of numbers for gold to post strong gains from here – as many bullish fingers were likely burned with gold's false break to a record high."
Bullion climbed to a record high of $2,135.40 on Monday on elevated bets for a Fed rate cut, before dropping more than $100 in the same session, on uncertainty over the timing of the monetary policy easing, Reuters reported.
Data on Tuesday showed US job openings fell to a more than two-and-a-half year low in October, signaling that higher rates were dampening demand for workers.
The dollar index fell 0.2% against a basket of currencies after rising to a two-week high on Tuesday, making gold less expensive for other currency holders.
Focus now shifts to the Friday release of the November non-farm payrolls data that could provide more clues on US interest rate outlook ahead of Fed's policy meeting next week.
Traders are pricing in about a 60% chance of a rate cut by March next year, CME's FedWatch Tool shows. Lower interest rates tend to support non-interest-bearing bullion.
Spot gold may bounce into a range of $2,033-$2,039 per ounce, as it has stabilized around a support of $2,009, according to Reuters technical analyst Wang Tao.
Silver rose 0.6% to $24.27 per ounce, while platinum gained 0.3% to $901.30. Palladium rose 0.9% to $943.01 per ounce, after hitting an over five-year low on Tuesday.

Business

Saudi Arabia's PIF Buys 49% of Rocco Forte's Luxury Hotel Chain

Founder Rocco Forte indicated that Saudi Arabia's support will give the company more financial strength (Rocco Forte) Founder Rocco Forte indicated that Saudi Arabia's support will give the company more financial strength (Rocco Forte)
Founder Rocco Forte indicated that Saudi Arabia's support will give the company more financial strength (Rocco Forte) Founder Rocco Forte indicated that Saudi Arabia's support will give the company more financial strength (Rocco Forte)
TT
TT

Saudi Arabia's PIF Buys 49% of Rocco Forte's Luxury Hotel Chain

Founder Rocco Forte indicated that Saudi Arabia's support will give the company more financial strength (Rocco Forte) Founder Rocco Forte indicated that Saudi Arabia's support will give the company more financial strength (Rocco Forte)
Founder Rocco Forte indicated that Saudi Arabia's support will give the company more financial strength (Rocco Forte) Founder Rocco Forte indicated that Saudi Arabia's support will give the company more financial strength (Rocco Forte)

Saudi Arabia's Public Investment Fund (PIF) has bought a 49 percent stake in Sir Rocco Forte's luxury hotel group and plans to double the chain's size over the next five years with new hotels in the Middle East, Italy, and the US.

The deal, announced on Monday, values Forte's group of 14 hotels across Europe at £1.2bn and implies an enterprise value, including debt, of £1.4bn, according to people familiar with the details.

As part of the deal, Italian sovereign wealth fund CDP Equity, which owned a 23 percent stake, will exit the business, along with four of Forte's five sisters, according to the Financial Times.

Founder Rocco Forte, alongside his sister Olga Polizzi, will retain a controlling 51 percent stake. They will remain in the positions of CEO and Vice President, respectively.

In an interview with the Financial Times in Brown's Hotel in London's Mayfair, Forte, who chairs the group, said he was "very bullish" about demand from US travelers, which account for more than a third of turnover, and that he expected "a lot more business" from visitors based in the Middle East thanks to the partnership with Saudi Arabia.

It is not the first time that Forte has promised expansion, but he said the backing of Saudi Arabia would give the business more financial firepower this time.

"We're in a good position in the right industry at the right time," said Forte, arguing that the luxury hotel sector was "quite protected [from an economic slowdown] compared to the rest of the economy."

"Having a partner like PIF gives you much more solidity to the outside eye . . . banks love you much more," said Forte.

The deal is the latest in a long line of investments in the luxury hospitality sector by the PIF as part of a push by the Fund to diversify Saudi Arabia's economy away from fossil fuels.

PIF Deputy Governor Turqi al-Nowaiser said the investment reflects the Fund's belief in the "current potential of the hospitality and tourism industry."

The Fund will be given two board seats, and the Forte family will have three.

From the year to the end of April, Rocco Forte Hotels recorded group revenues of £ 293.5 million, up from £ 166.5 million a year earlier when coronavirus restrictions affected trading. Earnings before interest, tax, depreciation, and amortization were £64 million, up from £18.1 million a year earlier.

Business

Saudi Green Initiative Forum at COP28: Kingdom Advances Climate Ambitions

Saudi Energy Minister Prince Abdulaziz bin Salman (Ministry of Energy)
Saudi Energy Minister Prince Abdulaziz bin Salman (Ministry of Energy)
TT
TT

Saudi Green Initiative Forum at COP28: Kingdom Advances Climate Ambitions

Saudi Energy Minister Prince Abdulaziz bin Salman (Ministry of Energy)
Saudi Energy Minister Prince Abdulaziz bin Salman (Ministry of Energy)

Saudi Arabia has unveiled its efforts to launch renewable energy projects with a capacity of 20 gigawatts by 2024. This comes after the kingdom having quadrupled its renewable energy production from 700 megawatts to 2.8 gigawatts so far.
Saudi Minister of Energy Prince Abdulaziz bin Salman announced on Monday that the Saudi Green Initiative was launched in 2021 to achieve the country’s climate ambitions of reaching zero neutrality by 2060.
“Within this initiative, the Kingdom is committed to reducing 278 million tons of carbon emissions annually by 2030,” he said while inaugurating the third edition of the Saudi Green Initiative 2023 (SGI) Forum in Dubai on Monday.
“When the international community called for increasing climate ambition, the Kingdom came forward and launched the Green Saudi Arabia initiative as a fundamental pillar for achieving the Kingdom’s climate ambitions.”
“We are working to expand our efforts regionally and internationally through the Green Middle East Initiative to achieve global climate goals,” said Prince Abdulaziz.
The energy minister further said that Saudi Arabia, through the previous session of the SGI forum during “COP27,” which was held in Sharm El-Sheikh, Egypt, and during the current “COP28” being held in Dubai, showed its utmost keenness and strenuous efforts to achieve those ambitions regarding renewable energy.
“The Kingdom’s concrete action on implementing renewables are reflected by its ability to quadruple its capacity from 700 megawatts last year to 2.8 gigawatts with more than eight gigawatts of renewable under construction and around 13 gigawatts in various development stages,” said Prince Abdulaziz.
“We are also planning to tender an additional 20 gigawatt by 2024 as part of our commitment to accelerate the development to renewable energy projects,” he added.
He explained that Saudi Arabia has launched a geophysical survey project, starting next year, which is one of the few projects of this extensive scale implemented nationally, involving over 1200 measurement stations.
Prince Abdulaziz stressed that Saudi Arabia aims to become a major exporter of green hydrogen globally, as the NEOM Project has completed its first phase and achieved investments worth $8.5 billion.
This project will produce 1.2 million tons of green ammonia annually, he said while pointing out that the Kingdom is developing international partnerships to develop more green hydrogen projects in the country, in addition to hydrogen mobility solutions, including trains.
The minister said that Saudi Arabia, in its bid to boost its ambition to export clean and green electricity and hydrogen, has signed a memorandum of understanding for the economic corridor between India, the Middle East and Europe, during the G20 summit meetings in India.
“This will be an essential possibility for export, and this corridor includes electricity, transmission lines and hydrogen pipelines, where we will supply clean energy on a large scale at a low cost and in a reliable manner,” said Prince Abdulaziz.
“Saudi Arabia is working closely to achieve circular carbon in the energy transition, which was approved by the G20 summit,” he affirmed.

 

 

Business

Türkiye's Inflation Ticks up to 62%

A woman shops at a street market in Istanbul, Türkiye, 04 December 2023. (EPA)
A woman shops at a street market in Istanbul, Türkiye, 04 December 2023. (EPA)
TT
TT

Türkiye's Inflation Ticks up to 62%

A woman shops at a street market in Istanbul, Türkiye, 04 December 2023. (EPA)
A woman shops at a street market in Istanbul, Türkiye, 04 December 2023. (EPA)

Türkiye's annual inflation rate ticked up slightly in November, the state statistics agency said on Monday, showing further signs of levelling off following a series of sharp interest rate hikes.

The rate moved to 61.98 percent last month from 61.36 percent in October, the TUIK state statistics agency said.

The pace at which consumer prices are rising has started to ease, after six successive months of interest rate hikes took borrowing cost to 40 percent from 8.5 percent.

Analysts are penciling in a final rate hike of 2.5 percentage points at the central bank's next policy meeting on December 21.

The latest batch of data show higher borrowing costs starting to slow down consumption -- a key goal of the central bank.

Türkiye's gross domestic product rose by just 0.3 percent between July and September. It had risen by 3.3 between April and June.

"The central bank will welcome these figures as evidence that demand is cooling and inflation pressures continue to soften," said analyst Liam Peach of Capital Economics.

Reset will take time

"However, bringing inflation down to much lower levels will require monetary policy to remain tight for a prolonged period and we expect the central bank to leave interest rates unchanged throughout 2024," Peach said.

Signs of Türkiye's economy starting to emerge from crisis are starting to be noticed by foreign investors, who had pulled out of the market because of President Recep Tayyip Erdogan's unpredictable past policies.

Analysts blame Erdogan for setting off the inflation spiral by forcing the nominally independent central bank to slash borrowing costs far below the rate at which prices were rising.

The official annual inflation rate peaked at 85.51 percent in October 2022.

Standard and Poor's revised Türkiye's long-term sovereign credit rating to positive from stable last month.

"Inflation appears to have peaked, albeit at elevated levels of over 60 percent," the ratings agency said.

But it also warned: "The policy reset will take at least two years to tame inflation."

Türkiye's central bank expects inflation to peak in May of next year at between 70 and 75 percent.

Business

UAE Banks Pledge $200 bln in Green Finance at COP28 Climate Talks

A general view of Abu Dhabi, UAE. (WAM)
A general view of Abu Dhabi, UAE. (WAM)
TT
TT

UAE Banks Pledge $200 bln in Green Finance at COP28 Climate Talks

A general view of Abu Dhabi, UAE. (WAM)
A general view of Abu Dhabi, UAE. (WAM)

Banks in the United Arab Emirates on Monday pledged to mobilize 1 trillion dirhams, or around $200 billion, in green finance, the chair of the country's banking federation told the COP28 climate talks.

Announced on the day dedicated to finance at the event in Dubai, it joins a growing list of pledges on everything from building renewable energy to helping farmers improve soil quality, Reuters reported.

"At this pivotal moment it is my great honor to announce a landmark commitment that, fulfilling the UAE ambition, our UBF banking, national banks, have collectively pledged to mobilize over 1 trillion dirham," Abdul Aziz Al Ghurai said.

Business

COP28 Focuses on Protecting Health from Climate Risks

Participants walk next to COP28 flags in Expo City in Dubai (AFP)
Participants walk next to COP28 flags in Expo City in Dubai (AFP)
TT
TT

COP28 Focuses on Protecting Health from Climate Risks

Participants walk next to COP28 flags in Expo City in Dubai (AFP)
Participants walk next to COP28 flags in Expo City in Dubai (AFP)

UN Climate Conference (COP28) focused on climate-related health issues, while discussions behind closed doors addressed vital other problems, such as the future of energy.

The UAE and several charities at the climate summit on Sunday offered $777 million in funding to eradicate neglected tropical diseases that are expected to worsen as temperatures rise.

COP28 President Sultan Ahmed al-Jaber said in a statement that climate-related factors "have become one of the greatest threats to human health in the 21st century."

The pledges made during the summit on Sunday, which focused on climate-related health risks, included $100 million from the UAE and another $100 million from the Bill & Melinda Gates Foundation.

Others to announce funds for climate-related health issues included Belgium, Germany, and the US Agency for International Development (USAID).

The World Bank launched a program to explore possible support measures for public health in developing countries where climate-related health risks are incredibly high.

The burden of tropical diseases will worsen as the world warms, along with other climate-driven health threats, including malnutrition, malaria, diarrhea, and heat stress.

More than 120 countries have signed a COP28 declaration acknowledging their responsibility to keep people safe amid global warming.

Climate change also increases the frequency of dangerous storms and more erratic rainfall.

In September, Storm Daniel killed more than 11,000 people in Libya, and last year's massive flooding in Pakistan fueled a 400 percent increase in malaria cases across the country, according to the World Health Organization (WHO).

Earlier on Sunday, Microsoft co-founder Bill Gates said scientists were working on new treatments for and prevention of mosquito-spread malaria as the rise in temperatures creates more hospitable habitat for the insects to breed.

"We have new tools at the lab level that decimate mosquito populations," said Gates, whose foundation supports public health research and projects for the developing world.

"These innovations give us a chance, at a reasonable cost, to make progress."

Former US Secretary of State Hillary Clinton spoke on Sunday, urging reform of the global insurance system as another key demand to keep people safe.

"Right now, insurance companies are pulling out of so many places; they're not insuring homes, they're not insuring businesses," Clinton said, addressing a panel on women and climate resiliency.

She continued, "People everywhere will be left out with no backup, no insurance for their business or home."

Meanwhile, Emirates News Agency (WAM) quoted a senior World Bank official saying that the bank had offered to host the Lost and Damage Fund.

Speaking to WAM, World Bank's Senior Managing Director (SMD) Axel van Trotsenburg said the agency will "work very closely with the United Nations Framework Convention on Climate Change (UNFCC) to create that fund."

Van Trotsenburg mentioned that countries face different challenges related to climate change.

"COP28 started with great announcements on the Loss and Damage Fund. It has been an extremely important decision and now needs to be set up."

He pointed out that small island countries with rising sea levels face different challenges than coastal regions. Therefore, solutions must be tailored to each country, but there is a global challenge.

"We need to be global. We need all countries to participate in this global challenge," van Trotsenburg noted, adding, "We need to ensure that we can keep the 1.5 degrees. So that means consequences for all of us."

Business

Gold Prices Sprint to All-time Peak on Fed Rate-cut Bets

(FILES) Gold bullion bars are pictured after being inspected and polished at the ABC Refinery in Sydney on August 5, 2020. (Photo by DAVID GRAY / AFP)
(FILES) Gold bullion bars are pictured after being inspected and polished at the ABC Refinery in Sydney on August 5, 2020. (Photo by DAVID GRAY / AFP)
TT
TT

Gold Prices Sprint to All-time Peak on Fed Rate-cut Bets

(FILES) Gold bullion bars are pictured after being inspected and polished at the ABC Refinery in Sydney on August 5, 2020. (Photo by DAVID GRAY / AFP)
(FILES) Gold bullion bars are pictured after being inspected and polished at the ABC Refinery in Sydney on August 5, 2020. (Photo by DAVID GRAY / AFP)

Gold prices hit all-time highs above $2,100 per ounce on Monday as Federal Reserve Chair Jerome Powell's remarks elevated traders' confidence that the US central bank could cut interest rates early next year.

Spot gold was up 0.6% at $2,083.81 per ounce by 0627 GMT, after surging to an all-time high of $2,111.39 earlier.

US gold futures rose 0.7% to $2,103.30.

"After his (Powell) speech, traders were more convinced that we're currently at the peak of the US interest rates and therefore, the path forward from here is more likely to be down rather than up," said KCM Trade chief market analyst Tim Waterer.

Powell on Friday said "the risks of under- and over-tightening are becoming more balanced", but the Fed is not thinking about lowering rates right now.
Lower rates reduce the opportunity cost of holding a non-interest-bearing bullion.

Traders are now pricing in a 70% chance for a Fed rate cut by next March, CME's FedWatch Tool showed, according to Reuters.

Backing market sentiment, data last week pointed out to cooling inflationary pressures, a gradually easing labor market, with Fed Governor Christopher Waller flagging a possible rate cut if inflation continues to decline.

"Technically, momentum is still looking strong after prices broke the resistance of $2,050/oz. Investors have been adding fresh long to position both against rising geopolitical tensions and rising prospects of Fed rate cuts," ANZ commodity strategist Soni Kumari said.

"Long positions have reached the highest since May 2022, still positionings are not crowded. This suggest there will be further move up this week, if news flows remain supportive."