Saudi Energy Minister: Soon We Will Start Working on New OPEC+ Deal

Saudi Energy Minister Prince Abdulaziz bin Salman. Asharq Al-Awsat
Saudi Energy Minister Prince Abdulaziz bin Salman. Asharq Al-Awsat
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Saudi Energy Minister: Soon We Will Start Working on New OPEC+ Deal

Saudi Energy Minister Prince Abdulaziz bin Salman. Asharq Al-Awsat
Saudi Energy Minister Prince Abdulaziz bin Salman. Asharq Al-Awsat

Saudi Energy Minister Prince Abdulaziz bin Salman has said a new deal between OPEC+ partners beyond 2022 would be agreed.

“The paper and physical markets have become increasingly more disconnected,” he said in response to written questions from Bloomberg News.

"Soon we will start working on a new agreement beyond 2022 which will build on our previous experiences, achievements, and successes," he told Bloomberg.

"We are determined to make the new agreement more effective than before. Witnessing this recent harmful volatility disturb the basic functions of the market and undermine the stability of oil markets will only strengthen our resolve."

The Organization of the Petroleum Exporting Countries and allies led by Russia, a group known as OPEC+, agreed to increase output by 648,000 bpd in each of July and August as they fully unwind nearly 10 million bpd of cuts implemented in May 2020 to counter the COVID-19 pandemic.

The group agreed earlier this month to raise production quotas by another 100,000 bpd in September.

"Without sufficient liquidity, markets can’t reflect the realities of the physical fundamentals in a meaningful way and can give a false sense of security at times when spare capacity is severely limited and the risk of severe disruptions remains high," the minister said.



China Approves Plan to Raise Retirement Age from January 2025 

Commuters ride an escalator at a subway station during the morning rush hour in Beijing, Friday, Sept. 13, 2024. (AP)
Commuters ride an escalator at a subway station during the morning rush hour in Beijing, Friday, Sept. 13, 2024. (AP)
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China Approves Plan to Raise Retirement Age from January 2025 

Commuters ride an escalator at a subway station during the morning rush hour in Beijing, Friday, Sept. 13, 2024. (AP)
Commuters ride an escalator at a subway station during the morning rush hour in Beijing, Friday, Sept. 13, 2024. (AP)

China's top legislative body has approved a proposal to raise the country's retirement age, the official Xinhua news agency said on Friday, accelerating an overhaul of decades-old laws to tackle the economic pressure of a shrinking workforce.

China's retirement ages are currently amongst the lowest globally.

Reform is urgent with life expectancy in China having risen to 78 years as of 2021 from about 44 years in 1960 and projected to exceed 80 years by 2050. At the same time, the working population needed to support the elderly is shrinking.

The retirement age will be raised for men to 63 years old from 60, while for women in white collar work it would be raised to 58 years from 55. For women in blue collar work it will be adjusted to 55 from 50.

The changes are set to come into force on Jan. 1, 2025.

Having people work for longer would ease pressure on pension budgets with many Chinese provinces already reeling from large deficits. But delaying pension payouts and requiring older workers to stay at their jobs longer may not be welcomed by all of them.

Hundreds of thousands of people took to social media after Xinhua reported that China's top lawmakers discussed the topic on Sept. 10, with many expressing concern there would be more job seekers chasing too few openings.

By raising the retirement age, the government can increase the labor force participation rate, helping to mitigate the adverse effects of population aging, said Xiujian Peng, senior research fellow at the Center of Policy Studies at Victoria University in Australia.

"The government must take action. If the population continues to decline, the shrinking of the labor force will accelerate, further negatively impacting economic growth."

Xing Zhaopeng, ANZ's senior China strategist said the move would likely have "no impact on the short-term economy. In the long run, it will help to avoid premature labor shortages and maintain stable productivity growth."