Saudi Arabia Discusses Solutions to Overcome Global Economy Crises

Spain’s Acting Foreign Minister Josep Borrell Fontelles (C) gestures during a family photo session at the G20 Foreign Ministers' Meeting in Nagoya, Japan, November 23, 2019. REUTERS/Kim Kyung-Hoon
Spain’s Acting Foreign Minister Josep Borrell Fontelles (C) gestures during a family photo session at the G20 Foreign Ministers' Meeting in Nagoya, Japan, November 23, 2019. REUTERS/Kim Kyung-Hoon
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Saudi Arabia Discusses Solutions to Overcome Global Economy Crises

Spain’s Acting Foreign Minister Josep Borrell Fontelles (C) gestures during a family photo session at the G20 Foreign Ministers' Meeting in Nagoya, Japan, November 23, 2019. REUTERS/Kim Kyung-Hoon
Spain’s Acting Foreign Minister Josep Borrell Fontelles (C) gestures during a family photo session at the G20 Foreign Ministers' Meeting in Nagoya, Japan, November 23, 2019. REUTERS/Kim Kyung-Hoon

Saudi Arabia steps into the new year amid a challenge to provide sustainable development solutions to overcome the new century’s crises. This was revealed in the G20 hosting statement.

The kingdom relies on its capabilities, potentials, and successful experiences, which enable it to lead the 2020 G20 Riyadh Summit.

Saudi Arabia is expected to present suggestions that contribute positively to reinforcing the global economy, which has been staggering since the global financial crisis in 2008.

For his part, Accounting Professor at Taif University Salem Baajaja explained to Asharq Al-Awsat newspaper that the economic policies going in tandem with the changes have consolidated the kingdom’s economic posture.

Notably, these policies resulted in the programs of Saudi Vision 2030 and the National Transformation Program besides other programs.

Baajaja noted that the Saudi Vision 2030 embraced the transformation changes and requirements in order to achieve a transition in structural activities and infrastructure and to introduce new sectors.

He affirmed that the kingdom has the ability to issue more visions and ideas during the G20 Summit, to be held in Riyadh in 2020 -- the kingdom is starting the new year in its capacity as a main producer of oil in the world with reserves of global oil equal to 18.1 percent.

Further, President of al-Shorouk Center for Economic Studies Dr. Abdulrahman Baashen told Asharq Al-Awsat that the kingdom enjoys a rich and diversified weight as new sectors get involved in the output.

Baashen noted that the kingdom has issued the Saudi Vision 2030 and the National Transformation Program in a rational manner in order to empower the added value of output. The reforms have resulted in urging the private sector to lead the budget and reinforce the domestic product as well as increase its contribution to the Saudi economy, he added.

Moreover, economist Dr. Khaled Ramadan said that the kingdom is qualified to provide experiences that could get the G20 countries’ confidence in Riyadh next year.



Oil Prices Reset as Supply Uncertainty Reigns

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Prices Reset as Supply Uncertainty Reigns

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil lost early gains on Tuesday and prices were back near their previous close in the face of uncertainty over how supply will be affected by Ukraine-Russia peace talks, international trade tariffs and OPEC+ crude output.

Brent crude futures were up only 1 cent at $75.23 per barrel by 1242 GMT, retreating from $76.07 earlier in the session.

US West Texas Intermediate crude futures were up 51 cents from Friday's close to $71.25 a barrel. There was no settlement for WTI on Monday because of the US Presidents' Day holiday, Reuters reported.

"Each rally seems to find willing sellers, whether or not it is because of neighbouring technical numbers that keep movement trapped or notions of a war settlement topped with tariffs is hard to tell," said John Evans of oil broker PVM.

"Day trading and short-term flows are ruling the fate of oil prices at present."

US and Russian officials held more than four hours of talks in Riyadh on Tuesday, their first on ending the war in Ukraine. But Moscow made a new demand: that NATO cancel its 2008 promise on Ukraine membership.

Ukraine was not at the talks and has said that no peace deals can be made on its behalf.

If a deal is reached, Washington and its allies could abandon sanctions throttling the supply of Russian oil to the world.

Oil prices were bolstered on Tuesday by a Ukrainian drone attack on a Russian pipeline that pumps about 1% of global crude supply.

The damage could reduce oil transit volumes from Kazakhstan by about 30% and take up to two months to repair, Russian oil transport company Transneft said.

Another question hanging over oil markets is whether OPEC+ is considering a delay to monthly supply increases scheduled in April.

Russian state media said the group's members were not looking to hold off from the increases after Bloomberg News reported that OPEC+ members were exploring a possible delay.