All Measures Will Be Taken to 'Kuwaitize' Oil Sector, Says Minister

A view of Kuwait City, Kuwait. (AFP file photo)
A view of Kuwait City, Kuwait. (AFP file photo)
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All Measures Will Be Taken to 'Kuwaitize' Oil Sector, Says Minister

A view of Kuwait City, Kuwait. (AFP file photo)
A view of Kuwait City, Kuwait. (AFP file photo)

Kuwait’s Deputy Prime Minister and Minister of Oil, Electricity, Water and Renewable Energy Dr. Mohammad Al-Fares, said that "Kuwaitization" as a policy is approved by the Kuwait Petroleum Corporation (KPC) and all necessary measures will be taken to "Kuwaitize" the oil sector.

In response to a parliamentary question about the reason for renewing the contracts of non-Kuwaiti engineers in the KPC, he explained that the Kuwaitization procedures for the sector will take place in two phases.

The first phase begins with direct employment. Two thousand Kuwaitis were employed during the past year, reported the state news agency (KUNA).

The second phase is the Kuwaitization of the private sector represented by contractor companies, equivalent to 30 percent of workers in the sector.

Al-Fares stressed the government's interest in appointing engineering graduates at the ministry, whether university students or diploma holders.

The optimum utilization of engineers in water production plants was reviewed, added Al-Fares, pointing out the preparation of an integrated plan to develop the sector and upscale engineers.

He underscored the ministry's commitment to the decision of the Civil Service Council regarding the dismissal of resident workers and their replacement with Kuwaiti engineers and technicians.

Kuwait has a strategic plan to increase the oil output to 3.2 million barrels per day by 2025 and 4 million bpd by 2035 and to maintain this level by 2040.



Gold Advances as Softer Core CPI Data Revives Fed Easing Hopes

A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
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Gold Advances as Softer Core CPI Data Revives Fed Easing Hopes

A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)

Gold prices extended gains on Wednesday, as the dollar dipped after US core inflation data came in softer than expected, abating inflation pressures and rekindling expectations that the Federal Reserve's easing cycle may not be over yet.

Spot gold gained 0.4% to $2,688.19 per ounce by 0915 a.m. ET (1415 GMT). US gold futures were up 1.1% to $2,711.40.

Excluding volatile food and energy components, core CPI increased 3.2% on an annual basis, compared with an expected 3.3% rise, the US Bureau of Labor Statistics said on Wednesday, Reuters reported.

"Core CPI came in a little bit below expectations. This is a bit of a positive for gold... The corollary to this is that the Fed will not necessarily exclude the possibility of cutting rates," said Bart Melek, head of commodity strategies at TD Securities.

"The probability of a rate cut in January is kind of nothing, but we are pricing some rate cuts by the end of the year here."

Markets now expect the Fed to deliver 40 basis points (bps) worth of rate cuts by year-end, compared with about 31 bps before the inflation data.

The dollar index eased 0.4%, making bullion more attractive for other currency holders. The benchmark 10-year Treasury yields also slipped.

Investors are worried that the potential for tariffs after President-elect Donald Trump re-enters the White House next week could stoke inflation and limit the Fed's ability to lower rates to a greater extent.

Non-yielding bullion is considered a hedge against inflation, although higher rates diminish its appeal.

However, the uncertainties around Trump's tariffs and trade policies for the global economy and their potential impact on growth are likely to sustain safe-haven demand for gold, said Zain Vawda, market analyst at MarketPulse by OANDA.

Spot silver firmed 1% to $30.23 per ounce, platinum rose 0.4% to $938.70, and palladium added 2% to $960.25.