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Saudi Arabia Stresses Importance of Energy Transition to Address Climate Challenges

Riyadh proceeds with the implementation of the Green Saudi Initiative in support of addressing climate challenges. (SPA)
Riyadh proceeds with the implementation of the Green Saudi Initiative in support of addressing climate challenges. (SPA)
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Saudi Arabia Stresses Importance of Energy Transition to Address Climate Challenges

Riyadh proceeds with the implementation of the Green Saudi Initiative in support of addressing climate challenges. (SPA)
Riyadh proceeds with the implementation of the Green Saudi Initiative in support of addressing climate challenges. (SPA)

The Saudi Ministry of Energy emphasized the importance of the global energy transition to address climate challenges and the expansion of international cooperation to support sustainable development and the zero emissions target.

Saudi Minister of Energy Prince Abdulaziz bin Salman held a meeting via video conference on Thursday with the Minister of Environment and Climate Action of Portugal, Duarte Cordeiro.

The two officials discussed the importance of supporting the stability of global oil markets by encouraging dialogue and cooperation between producing and consuming countries, and the need to ensure the security of power supply.

The two officials touched on cooperation in various energy fields, such as clean hydrogen and renewable energy, and the security and reliability of electrical systems.

They also underlined their keenness to advance cooperation through the imminent signing of a memorandum of understanding in the field of energy.

The meeting emphasized Saudi Arabia’s reliable role as partner and one of the countries exporting crude oil to Portugal.

The two ministers agreed that energy transition was an important element in addressing energy and climate challenges, noting that this issue would be the focus of the United Nations Climate Change Conference (COP27), which kicks off on Sunday in Sharm El Sheikh, Egypt.

This comes as Saudi Arabia advanced 10 places in the Green Future Index for 2022.

Issued by the MIT Technology Review of the Massachusetts Institute of Technology, the Index highlighted Saudi Arabia’s 10 place advancement, following leading programs and initiatives led by Crown Prince Mohammed bin Salman.

In a report, the Saudi Press Agency (SPA) noted that the Kingdom’s rapid progress in the Green Future Index crowns the efforts, programs, and initiatives, which include the Saudi and Middle East Green Initiatives (SGI & MGI) and the establishment of royal natural reserves to increase vegetation in the Kingdom.

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Business

Oil Prices Steady as Markets Weigh Demand against US Inventories

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 Steady as Markets Weigh Demand against US Inventories

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 prices were little changed on Thursday as investors weighed firm winter fuel demand expectations against large US fuel inventories and macroeconomic concerns.

Brent crude futures were down 3 cents at $76.13 a barrel by 1003 GMT. US West Texas Intermediate crude futures dipped 10 cents to $73.22.

Both benchmarks fell more than 1% on Wednesday as a stronger dollar and a bigger than expected rise in US fuel stockpiles pressured prices.

"The oil market is still grappling with opposite forces - seasonal demand to support the bulls and macro data that supports a stronger US dollar in the medium term ... that can put a ceiling to prevent the bulls from advancing further," said OANDA senior market analyst Kelvin Wong.

JPMorgan analysts expect oil demand for January to expand by 1.4 million barrels per day (bpd) year on year to 101.4 million bpd, primarily driven by increased use of heating fuels in the Northern Hemisphere.

"Global oil demand is expected to remain strong throughout January, fuelled by colder than normal winter conditions that are boosting heating fuel consumption, as well as an earlier onset of travel activities in China for the Lunar New Year holidays," the analysts said.

The market structure in Brent futures is also indicating that traders are becoming more concerned about supply tightening at the same time demand is increasing.

The premium of the front-month Brent contract over the six-month contract reached its widest since August on Wednesday. A widening of this backwardation, when futures for prompt delivery are higher than for later delivery, typically indicates that supply is declining or demand is increasing.

Nevertheless, official Energy Information Administration (EIA) data showed rising gasoline and distillates stockpiles in the United States last week.

The dollar strengthened further on Thursday, underpinned by rising Treasury yields ahead of US President-elect Donald Trump's entrance into the White House on Jan. 20.

Looking ahead, WTI crude oil is expected to oscillate within a range of $67.55 to $77.95 into February as the market awaits more clarity on Trump's administration policies and fresh fiscal stimulus measures out of China, OANDA's Wong said.