Saudi Arabia Vows to Take Legal Action Against Unlicensed Energy Use

 The Saudi government stressed the importance of obtaining the necessary licenses for the use petroleum products to generate electricity. (Asharq Al-Awsat)
The Saudi government stressed the importance of obtaining the necessary licenses for the use petroleum products to generate electricity. (Asharq Al-Awsat)
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Saudi Arabia Vows to Take Legal Action Against Unlicensed Energy Use

 The Saudi government stressed the importance of obtaining the necessary licenses for the use petroleum products to generate electricity. (Asharq Al-Awsat)
The Saudi government stressed the importance of obtaining the necessary licenses for the use petroleum products to generate electricity. (Asharq Al-Awsat)

As Saudi Arabia continues to push for energy efficiency, rationalization of consumption, and adherence to sustainability standards, the Saudi Ministry of Energy vowed to hold accountable those who waste oil products, or transfer them to various facilities for the purpose of generating electric power without obtaining the necessary licenses.

In a statement on Sunday, the ministry said that the use of petroleum products for such purposes exposes violators to legal accountability, in accordance with the provisions of the petroleum products trading system and within the framework of efforts to curb the waste of vital resources.

Electric power shall be obtained through the licensed service provider, in accordance with the rules and procedures issued by the Water and Electricity Regulatory Authority, the ministry added.

For its part, the Water and Electricity Regulatory Authority said that practicing any of electricity activities without obtaining the necessary statutory licenses was a violation of the provisions of the electricity system.

It added that the electricity by-law stipulates that all electrical activities are subject to the authority’s regulation, and that whoever practices any of them must have a valid license issued by the authority.

The authority noted that licensing aims to regulate these activities and to monitor the quality and reliability of services due to their importance to the consumers, the environment and the national economy.

It also urged those who practice any unlicensed activity to apply to the authority to rectify their status to avoid penalties for violations.

Saudi Arabia is a leading country in energy awareness and the rationalization of its uses. The Kingdom established a center for energy efficiency, which aims to be an international reference in this field, by working with local and international stakeholders in the government and private sectors, with the aim of developing knowledge and experience and applying best practices at home and abroad.

Saudi Arabia, through the Public Investment Fund (PIF), owns the National Company for Energy Efficiency Services (Tarshid), which seeks to be a pioneer in the energy efficiency field and to build towards a more sustainable future.

Tarshid has a mandate to develop, fund and manage impactful energy efficiency projects in government and commercial sectors that achieve significant energy savings for the Kingdom.



Oil Prices Rise on Iran Sanctions, Decline in US Crude Stocks

A container ship sails along Nakhodka Bay near the oil terminal in the port city of Nakhodka, Russia August 12, 2022. REUTERS/Tatiana Meel/File Photo
A container ship sails along Nakhodka Bay near the oil terminal in the port city of Nakhodka, Russia August 12, 2022. REUTERS/Tatiana Meel/File Photo
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Oil Prices Rise on Iran Sanctions, Decline in US Crude Stocks

A container ship sails along Nakhodka Bay near the oil terminal in the port city of Nakhodka, Russia August 12, 2022. REUTERS/Tatiana Meel/File Photo
A container ship sails along Nakhodka Bay near the oil terminal in the port city of Nakhodka, Russia August 12, 2022. REUTERS/Tatiana Meel/File Photo

Oil prices rose on Wednesday after a fresh round of US sanctions on Iran, a drop in US crude stocks and a softer tone from US President Donald Trump towards the Federal Reserve and his tariff war with China.

Brent crude futures hit their highest since April 4 at $68.65 a barrel and were up 54 cents, or 0.8%, at $67.98 by 1134 GMT US West Texas Intermediate crude rose 55 cents, or 0.9%, to $64.22.

Sending bullish signals on the supply side, the US issued new sanctions targeting an Iranian shipping magnate whose network handles Iranian liquefied petroleum gas and crude oil worth hundreds of millions of dollars, the US Treasury said.

Further price support came from US crude oil inventories that fell by about 4.6 million barrels last week while gasoline stocks declined by 2.2 million barrels and distillate inventories dropped by 1.6 million barrels, market sources said, citing American Petroleum Institute data.

US government data on oil stockpiles is due at 10:30 a.m. ET (1430 GMT) on Wednesday. US crude oil stocks are expected to have declined by 800,000 barrels last week, a Reuters poll showed.

Stoking hopes of higher energy demand, Trump on Tuesday signalled the possibility of lower tariffs on Chinese imports. The Chinese foreign ministry said on Wednesday that the United States should stop making threats if it wants to make a deal.

Trump also backed away from the threat of firing Fed Chair Jerome Powell after days of criticising the Fed for not cutting interest rates.

Capping gains, the International Monetary Fund said on Tuesday that global economic output will slow as Trump's steep tariffs on virtually all trading partners begin to bite.