Reducing Oil Production: A New Pillar to Support Global Economic Conditions

Saudi Arabia and Arab countries decide to voluntarily reduce oil production to enhance the conditions of oil markets and the global economy. (AP)
Saudi Arabia and Arab countries decide to voluntarily reduce oil production to enhance the conditions of oil markets and the global economy. (AP)
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Reducing Oil Production: A New Pillar to Support Global Economic Conditions

Saudi Arabia and Arab countries decide to voluntarily reduce oil production to enhance the conditions of oil markets and the global economy. (AP)
Saudi Arabia and Arab countries decide to voluntarily reduce oil production to enhance the conditions of oil markets and the global economy. (AP)

In support of the stability of the global oil markets, and the enhancement of the balance between supply and demand, the member of the Organization of Petroleum Exporting Countries (OPEC) and the producing countries within the OPEC+ have decided to implement a voluntary reduction of crude oil production.

Experts described the move, which was adopted by Saudi Arabia and international producers, as a new pillar that takes into account the conditions of the global economy, amid the crises hitting the financial and banking sector.

Dr. Mohammad Al-Sabban, former senior adviser to the Saudi Minister of Energy, told Asharq Al-Awsat that the decision of some members of OPEC+ was not new, as Saudi Arabia had voluntarily reduced its production by one million barrels per day over the past year. The latest move is a proactive and precautionary step by the producing countries that would take in the effects of the reduction until the end of the year.

Al-Sabban stressed the importance of the decision, pointing to the West’s expectations that oil prices will continue to decline, unlike now, with prices reaching $80 per barrel of crude oil.

The OPEC+ alliance is historically successful, and achieves economic stability in the oil markets, he said, adding that the group was also concerned with creating a balance between supply and demand.

Mohammed Al-Qabbani, an energy expert, told Asharq Al-Awsat that the stability of the markets, the continued flow of oil supplies and their balance with demand were the bases of OPEC decisions.

He underlined that Saudi Arabia has always sought to achieve the optimal balance between supply and demand, which in turn contributes to market stability.

He stated that the organization’s decisions differed from one period to another, taking into account all the circumstances surrounding the industry.

“Thanks to these pure and strict technical and administrative decisions, devoid of bias or external agendas, and focused only on market fundamentals, we find that the organization in the past few years has succeeded remarkably in managing markets and protecting them from several crises, benefiting in particular consumers and producers, and the global economy global in general,” Qabbani stated.



Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
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Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)

flynas, Saudi Arabia’s leading low-cost carrier, has signed a Memorandum of Understanding (MoU) with Airbus for 75 A320neo family aircraft and 15 A330-900. This strategic agreement will expand the airline's capacity, range and enhance its overall fleet capabilities.
Signed during Farnborough International Airshow in the presence of President of the General Authority of Civil Aviation (GACA) of Saudi Arabia, Abdulaziz bin Abdullah Al-Duailej, Chairman of the Board of NAS Holding Ayed Al Jeaid, flynas Chief Executive Officer & Managing Director Bandar Almohanna, and Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer, Airbus said on its website.
The new aircraft will join the carrier’s all Airbus fleet serving international, domestic and regional routes. The new A330-900 aircraft will boast a two-class configuration, accommodating up to 400 passengers.
"We are excited to further strengthen our long-standing partnership with Airbus," said Bander Almohanna, CEO and Managing Director of flynas. "The A320neo Family provides exceptional operational performance and environmental benefits, allowing us to offer unique, low-cost travel experiences. Additionally, the A330neowill enhance our long-haul capabilities with its advanced technology and efficiency while supporting our growth plans and Saudi Arabia’s pilgrim program."
Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer said, "We are delighted to expand our partnership with flynas through this significant milestone for both A320neo and A330-900 aircraft. The A330neo will allow flynas to further grow into widebody markets by building on the A320, benefiting from Airbus’ unique commonality. Both aircraft types offer flynas the perfect versatility and economics to expand into new markets while offering their passengers the latest cabin experience and comfort. We look forward to continuing our successful collaboration with flynas as they embark on this exciting new chapter."
The addition of the A330-900 aircraft will support flynas' ambitious growth plans. The airline anticipates significant operational efficiency gains by combining the new widebody aircraft with its existing A320neo fleet. The A330-900 offers increased capacity and range at unrivaled seat costs, ensuring flynas can compete effectively in the growing regional market, a key focus area for the airline.
The A330neo delivers unbeatable operating economics, powered by the latest-generation Rolls-Royce Trent 7000 engines, featuring new wings and a range of aerodynamic innovations resulting in a 25 percent reduction in fuel consumption and CO₂ emissions compared to previous generation competitor aircraft. The A330neo is capable of flying 8,150 nm / 15,094 km non-stop, providing ultimate comfort with more passenger space, a new lighting system, latest in-flight entertainment systems and full connectivity throughout the cabin.
As with all Airbus aircraft, the A330 family is already able to operate with up to 50% Sustainable Aviation Fuel (SAF). The manufacturer is targeting to have its aircraft up to 100% SAF capable by 2030.