Morocco's Poor Left Behind by Development Boom

 Mohammed Akki's wife works in the kitchen of their home that has no electricity and is lit by a gas lamp in the community of Ait Hammou Ouhmad on the edge of Azrou in Morocco, November 6, 2019. REUTERS/Abdelhak Balhaki
Mohammed Akki's wife works in the kitchen of their home that has no electricity and is lit by a gas lamp in the community of Ait Hammou Ouhmad on the edge of Azrou in Morocco, November 6, 2019. REUTERS/Abdelhak Balhaki
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Morocco's Poor Left Behind by Development Boom

 Mohammed Akki's wife works in the kitchen of their home that has no electricity and is lit by a gas lamp in the community of Ait Hammou Ouhmad on the edge of Azrou in Morocco, November 6, 2019. REUTERS/Abdelhak Balhaki
Mohammed Akki's wife works in the kitchen of their home that has no electricity and is lit by a gas lamp in the community of Ait Hammou Ouhmad on the edge of Azrou in Morocco, November 6, 2019. REUTERS/Abdelhak Balhaki

Mohammed Akki left his home in Morocco’s Middle Atlas mountains to seek regular work and a better life in the town of Azrou, but he still lives on the margins in a country enjoying an investment boom.

Every morning, Akki walks miles into Azrou, where he may or may not find work as a day laborer. His ramshackle house down a muddy lane has no electricity or running water and his school-age daughter has to study by candlelight.

He is part of a large class of impoverished Moroccans left behind by the rapid development that has transformed much of the northwestern coastline with multi-billion-dollar infrastructure projects.

“It is inconceivable. How can we live in a city but we still need candles? We hear slogans but there is no transparency. We never get any help,” said Akki, standing in his dark kitchen, where a storm lamp lit a few pans hanging from nails on the wall.

Morocco’s rampant inequality is stirring some unease in the country’s political class, particularly after protests in the northern Rif mountain region in 2017-18 and the mass demonstrations in neighboring Algeria this year.

Signs of public frustration include political chanting by football fans in Casablanca and a popular rap song that decried inequality.

“More than poverty, social disparities create frustrations that may trigger protests. These disparities are often viewed as a result of an illegitimate accumulation of wealth,” said Ahmed Lahlimi, head of Morocco’s official statistics agency.

The government said this month it had allocated 7.4 billion dirhams ($770 million) to combating social and regional disparities this year as part of a longer program.

King Mohammed VI, who sets the policy direction in Morocco, though it is implemented by an elected government, is appointing a commission to oversee a new phase of development aimed at tackling such disparities.

Mohammed’s two-decade reign has mostly focused on upgrading infrastructure needed for business, such as a high-speed rail link connecting Casablanca to Tangier, now transformed into Africa’s busiest port.

Economic growth averaged 4.5% from 2000-2012, but only 3% since then, a relatively low figure for an emerging market. A quarter of Moroccans are either poor or at risk of poverty, a recent World Bank report said, and the kingdom ranks 123rd in the UN’s human development index.

In Azrou, located in the Middle Atlas mountains east of Rabat, Akki and his family spend their evenings in the dark. He and his neighbors have to collect drinking water by donkey from a well a mile away.

Their community, Ait Hammou Ouhmad, is entirely populated by people who have left the mountains to settle near Azrou. They have built their homes cheaply without official permits and are unable to gain access to government utility services.

Country folk fleeing the poverty and uncertainty of an agricultural sector utterly dependent on variable rainfall have swelled the poor districts of Moroccan cities.

HARSHER CIRCUMSTANCES
Agriculture employs about 40% of Moroccan workers but a dry year can cut overall economic growth by more than a percentage point and leave many without work, statistics chief Lahlimi said.

The austere circumstances of Akki and his neighbors point to the even harsher conditions endured by those they left behind in the remote mountain regions, many working as shepherds, often tending flocks that belong to absentee owners.

In the high cedar forests of the Middle Atlas, where troupes of macaques lurk along the gloomy treeline, some former nomads still live in tents roofed with plastic sheeting on a barren plateau far from the nearest school or hospital.

Fadma Safsaf, whose tent and thorn animal enclosure lie in a wide meadow ringed with cedar forest, looks after two daughters and a son while her husband grazes the flock in the high pastures.

Most of the sheep and the tent they live in are owned by a landlord in France. Their annual payment is a quarter of the lambs born to the flock each year, Safsaf said.

“We lack water and electricity and suffer from snow and extreme cold. We lack clothes and shoes,” she said.

“We often have access only to muddy water. I want to go to the city, but my husband does not have a job. What could we do there? My husband has no skills,” she said.



China's Russian Oil Imports to Hit New Record in February as India Cuts Back

Oil tankers are seen at a terminal of Sinopec Yaogang oil depot in Nantong, Jiangsu province, China (Reuters) 
Oil tankers are seen at a terminal of Sinopec Yaogang oil depot in Nantong, Jiangsu province, China (Reuters) 
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China's Russian Oil Imports to Hit New Record in February as India Cuts Back

Oil tankers are seen at a terminal of Sinopec Yaogang oil depot in Nantong, Jiangsu province, China (Reuters) 
Oil tankers are seen at a terminal of Sinopec Yaogang oil depot in Nantong, Jiangsu province, China (Reuters) 

China's Russian oil imports are set to climb for a third straight month to a new record high in February as independent refiners snapped up deeply discounted cargoes after India slashed purchases, according to traders and ship-tracking data.

Russian crude shipments are estimated to amount to 2.07 million barrels per day for February deliveries into China, surpassing January's estimated rate of 1.7 million bpd, an early assessment by Vortexa Analytics shows.

Kpler's provisional data showed February imports at 2.083 million bpd, up from 1.718 million bpd in January, according to Reuters.

China has since November replaced India as Moscow's top client for seaborne shipments as Western sanctions over the war in Ukraine and pressure to clinch a trade deal with the US forced New Delhi to scale back Russian oil imports to a two-year low in December.

India's Russian crude imports are estimated to fall further to 1.159 million bpd in February, Kpler data showed.

Independent Chinese refiners, known as teapots, are the world's largest consumers of US sanctioned oil from Russia, Iran and Venezuela.

“For the quality you get from processing Russian oil versus Iranian, Russian supplies have become relatively more competitive,” said a senior Chinese trader who regularly deals with teapots.

ESPO blend last traded at $8 to $9 a barrel discounts to ICE Brent for March deliveries, while Iranian Light, a grade of similar quality, was last assessed at $10 to $11 below ICE Brent, the trader added.

Uncertainty since January over whether the US would launch military strikes on Iran if negotiations for a nuclear deal failed to yield Washington's desired results curbed buying from Chinese teapots and traders, said Emma Li, Vortexa's China analyst.

“For teapots, Russian oil looks more reliable now as people are worried about loadings of Iranian oil in case of a military confrontation,” Li said.

Part of the elevated Russian oil purchases came from larger independent refiners outside the teapot hub of Shandong, Li added.

Vortexa estimated Iranian oil deliveries into China – often banded by traders as Malaysian to circumvent US sanctions - eased to 1.03 million bpd this month, down from January's 1.25 million bpd.

 

 

 


Oil in Spotlight as Trump's Iran Warning Rattles Sleepy Markets

FILE - In this Oct. 21, 2013, file photo, smoke billows from an oil refinery in Kawasaki, southwest of Tokyo. (AP Photo/Koji Sasahara, File)
FILE - In this Oct. 21, 2013, file photo, smoke billows from an oil refinery in Kawasaki, southwest of Tokyo. (AP Photo/Koji Sasahara, File)
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Oil in Spotlight as Trump's Iran Warning Rattles Sleepy Markets

FILE - In this Oct. 21, 2013, file photo, smoke billows from an oil refinery in Kawasaki, southwest of Tokyo. (AP Photo/Koji Sasahara, File)
FILE - In this Oct. 21, 2013, file photo, smoke billows from an oil refinery in Kawasaki, southwest of Tokyo. (AP Photo/Koji Sasahara, File)

Oil prices stabilized on Tuesday as investors assessed supply disruption risks after Iran conducted naval exercises near the Strait of Hormuz ahead of nuclear talks with the United States later in the day.

US President Donald Trump said on Monday that he would participate "indirectly" in the Geneva talks, adding that he believed Tehran wanted to reach an agreement. Trump said at the end of the week that regime change in Iran would be the "best thing that could happen."

Brent crude futures fell 0.2 percent to $68.59 a barrel by 01:06 GMT, after rising 1.3 percent on Monday.

US West Texas Intermediate crude was at $63.73 a barrel, up 84 cents, or 1.34 percent, but that gain incorporated all price movement on Monday, as the contract was not settled that day due to the US Presidents Day holiday.

Many markets were closed on Tuesday for the Lunar New Year, including China, Hong Kong, Taiwan, South Korea and Singapore.

"The market remains jittery amid ongoing geopolitical uncertainty," Daniel Hynes, an analyst at ANZ Bank, said in a research note.

He added: "Should tensions in the Middle East ease, or tangible progress be made on the Ukrainian situation, the risk premium currently embedded in oil prices may quickly dissipate. However, any negative outcome or further escalation could be positive for oil prices."

Iran began military exercises on Monday in the Strait of Hormuz, a vital international waterway and a major oil export route from Gulf countries, which have called for diplomacy to end the conflict.

Meanwhile, Citigroup said that if Russian supply disruptions continue to keep Brent crude within a range of $65 to $70 a barrel in the coming months, OPEC+ is likely to respond by increasing production from spare capacity.

Three sources in OPEC+ said the organization is inclined to resume increasing oil production from April, as the group prepares for peak summer demand, and higher prices are reinforced by tensions over US-Iranian relations.

"We expect, in the base case, that two oil deals will be reached, one with Iran and the other with Russia and Ukraine, by or during the summer of this year, which will contribute to a decline in prices to $60-62 a barrel of Brent," Citigroup said.


Greece… Chevron’s Gateway to Strengthening Europe’s Energy Security

The lease allows Chevron to lead the search for gas in four deep-sea blocks, south of the Peloponnese peninsula and the island of Crete (AFP)
The lease allows Chevron to lead the search for gas in four deep-sea blocks, south of the Peloponnese peninsula and the island of Crete (AFP)
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Greece… Chevron’s Gateway to Strengthening Europe’s Energy Security

The lease allows Chevron to lead the search for gas in four deep-sea blocks, south of the Peloponnese peninsula and the island of Crete (AFP)
The lease allows Chevron to lead the search for gas in four deep-sea blocks, south of the Peloponnese peninsula and the island of Crete (AFP)

A consortium led by US oil major Chevron signed exclusive lease agreements on Monday to look for natural gas off southern Greece, expanding the United States' presence in the eastern Mediterranean. The deal doubles the amount of Greek maritime acreage available for exploration and is the second in months involving a US energy major as the European Union seeks to phase out supplies from Russia and the US seeks ‌to replace them.

Exxon ‌Mobil in November joined Energean and Helleniq to search ‌for ⁠gas in another ⁠offshore block in Western Greece. Monday's agreement allows Chevron - which also plans to expand production in Israel - to lead the search for gas in four deep-sea blocks, south of the Peloponnese peninsula and the island of Crete, stretching across 47,000 square kilometers (18,147 square miles). It follows Chevron and Helleniq Energy, Greece's biggest oil refiner, last year winning an international tender.

GREECE SEEKS TO BE A GATEWAY FOR US GAS

Greece, which ⁠has no gas production and relies on gas imports ‌for power generation and domestic consumption, has revived ‌its quest for gas exploration after a 2022 energy price shock driven by Russia's ‌invasion of Ukraine. It also aims to be a gateway for US ‌liquefied natural gas transported via the Vertical Gas Corridor, a route that carries gas from Greece to central Europe and Ukraine. US Ambassador to Greece Kimberly Guilfoyle said US LNG flowing through Greece had strengthened the alliance between the United States and Europe.

"It redraws, ‌quite simply, the energy map of Europe, creating a durable alternative to Russian gas not just for one season ⁠but for generations ⁠to come," Guilfoyle said during a presentation of the contracts in Athens. The European Union is building renewables capacity to cut greenhouse emissions, but has acknowledged the need for natural gas as a transition fuel to help stabilize the grid when intermittent wind and solar energy are not available.

The Greek parliament will need to approve the lease contracts before the Chevron-led consortium can start seismic research later this year. Greece has said the consortium has up to five years to locate potential recoverable deposits and any test drilling would not take place before 2030-2032.