Kuwait Launches Commercial Operations at Al-Zour Refinery

A general view of one of three Atmospheric Residue Desulphurisation units (ARDS) at the al-Zour refinery. (Reuters)
A general view of one of three Atmospheric Residue Desulphurisation units (ARDS) at the al-Zour refinery. (Reuters)
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Kuwait Launches Commercial Operations at Al-Zour Refinery

A general view of one of three Atmospheric Residue Desulphurisation units (ARDS) at the al-Zour refinery. (Reuters)
A general view of one of three Atmospheric Residue Desulphurisation units (ARDS) at the al-Zour refinery. (Reuters)

The Kuwait Integrated Petroleum Industries Co (KIPIC) launched the first phase of al-Zour refinery commercial operations on Sunday after the project started last month to produce and sell primary quantities of fuel oil and supply it to local power stations.

In a statement to (KUNA), Acting CEO of (KIPIC) Waleed al-Bader said the operation is an important historical event and is considered a pillar of the country's development plan.

Bader stressed that the refinery provides fuel of high quality and environmental standards to meet the local energy demand, as it limits emissions of gases polluting the environment and improves air quality.

He indicated that it is a vital outlet for the disposal of heavy Kuwaiti oil and provides other refined products for export in global markets with standard specifications.

Furthermore, he praised the unique role of the national expertise and the Kuwaiti youth, who were qualified according to the highest professional levels in leading and implementing the operations at the refinery.

Bader expressed his gratitude and appreciation for all the efforts to helped make this national achievement.

The company had already started operation of the refinery's first phase, followed by the second and third phases, moving towards total maximum refining capacity.

Executive Vice President of al-Zour Refinery Khaled al-Awadhi said KIPIC carried out the trial operation of the first crude oil distillation unit and refined 2.5 million barrels of crude oil, securing the main stock of oil derivatives that contributed to the smooth process of the rest of the units.

He added that fuel oil was also produced from the crude oil distillation unit, which was improved to match the specifications required by the Ministry of Electricity and Water, and supplied about 278,000 tons of fuel oil at peak demand from power plants, in coordination with the Kuwait Petroleum Corporation.

Awadhi said the refinery achieved the first commercial operation related to sending petroleum products to meet the needs of the Ministry of Electricity and Water.

Last Tuesday, Reuters quoted two industry sources saying that the Kuwait Foreign Petroleum Exploration Company (KUFPEC) issued a tender to sell a liquefied natural gas (LNG) cargo for loading in Australia in December.

They added that the cargo was free-on-board (FOB) from the Wheatstone plant in Australia for Dec. 19 to 24 loading, and the tender was launched on Wednesday and closed Thursday.

KUFPEC, Kuwait's foreign energy exploration arm, is a stakeholder in the Chevron-operated Wheatstone LNG project.



US Job Growth Surges in September, Unemployment Rate Falls to 4.1%

A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
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US Job Growth Surges in September, Unemployment Rate Falls to 4.1%

A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo

US job growth accelerated in September and the unemployment slipped to 4.1%, further reducing the need for the Federal Reserve to maintain large interest rate cuts at its remaining two meetings this year.
Nonfarm payrolls increased by 254,000 jobs last month after rising by an upwardly revised 159,000 in August, the Labor Department's Bureau of Labor Statistics said in its closely watched employment report on Friday.
Economists polled by Reuters had forecast payrolls rising by 140,000 positions after advancing by a previously reported 142,000 in August.
The initial payrolls count for August has typically been revised higher over the past decade. Estimates for September's job gains ranged from 70,000 to 220,000.
The US labor market slowdown is being driven by tepid hiring against the backdrop of increased labor supply stemming mostly from a rise in immigration. Layoffs have remained low, which is underpinning the economy through solid consumer spending.
Average hourly earnings rose 0.4% after gaining 0.5% in August. Wages increased 4% year-on-year after climbing 3.9% in August.
The US unemployment rate dropped from 4.2% in August. It has jumped from 3.4% in April 2023, in part boosted by the 16-24 age cohort and rise in temporary layoffs during the annual automobile plant shutdowns in July.
The US Federal Reserve's policy setting committee kicked off its policy easing cycle with an unusually large half-percentage-point rate cut last month and Fed Chair Jerome Powell emphasized growing concerns over the health of the labor market.
While the labor market has taken a step back, annual benchmark revisions to national accounts data last week showed the economy in a much better shape than previously estimated, with upgrades to growth, income, savings and corporate profits.
This improved economic backdrop was acknowledged by Powell this week when he pushed back against investors' expectations for another half-percentage-point rate cut in November, saying “this is not a committee that feels like it is in a hurry to cut rates quickly.”
The Fed hiked rates by 525 basis points in 2022 and 2023, and delivered its first rate cut since 2020 last month. Its policy rate is currently set in the 4.75%-5.00% band.
Early on Friday, financial markets saw a roughly 71.5% chance of a quarter-point rate reduction in November, CME's FedWatch tool showed. The odds of a 50 basis points cut were around 28.5%.