Iraq, Algeria, Oman, Kuwait and Bahrain Affirm Support for OPEC+ Production Cut

Assurances from OPEC members on the importance of reducing production refute US allegations (Reuters)
Assurances from OPEC members on the importance of reducing production refute US allegations (Reuters)
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Iraq, Algeria, Oman, Kuwait and Bahrain Affirm Support for OPEC+ Production Cut

Assurances from OPEC members on the importance of reducing production refute US allegations (Reuters)
Assurances from OPEC members on the importance of reducing production refute US allegations (Reuters)

OPEC+ member states lined up on Sunday to endorse the production cut agreed this month after the US had accused Riyadh of coercing some other nations into supporting the move.

Algeria's Energy Minister Mohamed Arkab called the decision “historic” and expressed his full confidence in it, Algeria's Ennahar TV reported.

“There is complete consensus among OPEC+ countries that the best approach in dealing with the oil market conditions during the current period of uncertainty and lack of clarity is a pre-emptive approach that supports market stability and provides the guidance needed for the future,” Iraq's state oil marketer SOMO said in a statement.

Iraq is OPEC’s second largest oil producer.

SOMO’s statement explained that “there is a close link between the demand for oil and the growth of the global economy, as one is greatly affected by the other.”

The International Monetary Fund (IMF) had indicated that the global economy is on the verge of recession at a very large rate.

“If a global recession takes place, it will reduce the demand for crude oil,” SOMO explained, adding that the oil production cut decision by OPEC+ was necessary to achieve market balance considering the deteriorating situation.

Kuwait Petroleum Corporation Chief Executive Officer Nawaf Saud al-Sabah also welcomed the decision by OPEC+ and said the body was keen to maintain a balanced oil market, state news agency KUNA reported.

Oman and Bahrain said in separate statements that OPEC had unanimously agreed on the reduction.

Oman’s Energy Ministry said that the decision to cut oil production by 2 million barrels per day was necessary to reassure the market and stabilize it.

The ministry said that OPEC+ decisions are based on purely economic considerations and realities of supply and demand in the market.

The Organization of Arab Petroleum Exporting Countries (OAPEC) said on Saturday that the decision of OPEC+ to cut its oil production target was exact and was taken at the right time.

OAPEC comprises Algeria, Bahrain, Egypt, Iraq, Kuwait, Libya, Qatar, Saudi Arabia, Syria, Tunisia and the UAE.



SABIC Returns to Profit in Q3 Driven by Revenue Growth

SABIC reported a net profit of SAR 1 billion ($266 million) for the three months ending September 30. (SPA)
SABIC reported a net profit of SAR 1 billion ($266 million) for the three months ending September 30. (SPA)
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SABIC Returns to Profit in Q3 Driven by Revenue Growth

SABIC reported a net profit of SAR 1 billion ($266 million) for the three months ending September 30. (SPA)
SABIC reported a net profit of SAR 1 billion ($266 million) for the three months ending September 30. (SPA)

Saudi Basic Industries Corp (SABIC), one of the world’s largest petrochemical firms, returned to profit in the third quarter, recovering from a loss a year earlier, helped by higher revenue and core earnings.

SABIC, 70% owned by Aramco, reported a net profit of SAR 1 billion ($266 million) for the three months ending September 30, according to a disclosure to the Saudi Stock Exchange (Tadawul).

This is a major improvement from a loss of SAR 2.87 billion during the same period last year.

SABIC CEO Abdulrahman Al-Fageeh said: “The increase in the third quarter’s profits compared to the same quarter last year is attributable to higher average selling prices of some key products, and a decrease in total losses on non-continuing operations.”

Analysts had projected that SABIC would achieve profits of up to SAR 1.7 billion.

SABIC attributed its growth mainly to higher average selling prices, which were partially offset by a slight decline in sales volumes.

The company’s net profit was primarily driven by an increase in operating income of about SAR 797 million, thanks to improved profit margins despite higher operating costs. Gains also came from selling its specialized business that produces plastic sheets and films, along with foreign exchange benefits in the third quarter of 2024.

Profit was also driven by a decrease in losses from discontinued operations by around SAR 3.3 billion, mainly due to the fair value assessment of Saudi Iron and Steel Company (Hadeed), classified as a discontinued operation while awaiting the closure of a previously announced sale.

This was partly offset by a drop in financing income of SAR 390 million from the revaluation of equity derivatives, which are non-cash items.