Virus Keeps Black Friday Crowds Thin, Shoppers Shift Online

A shopper walks through Macy's flagship store at Herald Square an hour after its 6 am Black Friday opening, Friday, Nov. 27, 2020, in New York. (AP)
A shopper walks through Macy's flagship store at Herald Square an hour after its 6 am Black Friday opening, Friday, Nov. 27, 2020, in New York. (AP)
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Virus Keeps Black Friday Crowds Thin, Shoppers Shift Online

A shopper walks through Macy's flagship store at Herald Square an hour after its 6 am Black Friday opening, Friday, Nov. 27, 2020, in New York. (AP)
A shopper walks through Macy's flagship store at Herald Square an hour after its 6 am Black Friday opening, Friday, Nov. 27, 2020, in New York. (AP)

The raging coronavirus pandemic kept crowds thin at malls and stores across the United States on Black Friday, but a surge in online shopping offered a small beacon of hope for struggling retailers after months of slumping sales and businesses toppling into bankruptcy.

In normal times, Black Friday is the busiest shopping day of the year, drawing millions of shoppers eager to get started on their holiday spending.

But these are not normal times: A spike in coronavirus cases is threatening the economy's fitful recovery from the sudden plunge in the spring. Crowds at stores were dramatically diminished as shoppers do more of their purchases online.

Many retailers closed their doors on Thanksgiving Day but beefed up their safety protocols to reassure wary customers about coming in on Black Friday. Stores have also moved their doorbuster deals online and ramped up curbside pickup options as a last grasp at sales before the year ends and they head into the dark days of winter with the pandemic still raging.

“Black Friday is still critical," said Neil Saunders, managing director of GlobalData Retail. “No retailer wants it to be tarnished. It's still vital to get their consumers spending and get consumers into the holiday mood."

Macy’s Herald Square in New York featured such deals as 50% off handbags and 60% off women’s and men’s coats, but there was just a trickle of shoppers at around 7 am, an hour after the store opened. There was no one in line at the service area where customers pick up their online orders. Workers could be seen sanitizing door knobs and windows. The scene looked similarly empty at the nearby Manhattan Mall.

At the Garden State Plaza mall in Paramus, New Jersey, parking spots were easy to find shortly after the mall opened at 7 am Inside, there was a line at video game store GameStop and several police officers to control the crowd.

Things were quiet at a Walmart in Saddle Brook, New Jersey. The nation’s largest retailer has been offering its best deals online this month to deter any crowds from showing up on Black Friday.

Mike Mitchell went to a Walmart at 7:30 am expecting to see it packed and the doorbuster deals gone, like past Black Fridays. Instead, the lot was mostly empty. What he wanted — a ride-on battery powered Chevy truck for his daughter — was still in stock, even though it was discounted to $98 from $149.

“It was kind of surprising,” says Mitchell, who lives in Greensboro, North Carolina. “There was no line. It was very easy.”

Several hundred shoppers were lined up ahead of the 8 am opening at Mall of America in Bloomington, Minnesota, which normally attracts several thousand on Black Friday.

The smaller crowds were planned, said Jill Renslow, Mall of America's senior vice president of business development. The mall spread out the Black Friday deals over eight days, kicking them off the Monday before Thanksgiving. Renslow said many retail tenants pivoted more online and added curbside pickup. She said she was confident that many tenants, particularly those that focus on health and wellness, casual apparel and home, will have a strong holiday season.

"“It feels good, and it’s the right thing to do to keep everybody safe,” Renslow said “Everyone is shopping a little differently but that’s OK.”

The US Centers for Disease Control and Prevention has labeled shopping in crowded stores during the holidays a “higher risk” activity and says people should limit any in-person shopping, including at supermarkets. Instead, the health agency recommends shopping online, visiting outdoor markets or using curbside pickup, where workers bring orders to you in the parking lot.

At a popular shopping area in Pinellas Park, Florida, several storefronts were empty, and the only line was at a plasma donation center.

The day after Thanksgiving has been losing its luster as the unofficial start to the holiday shopping season for the past several years, with more stores were offering holiday discounts throughout the month. Still, Black Friday has remained the busiest day of the year, according to ShopperTrak, and is expected to hold that title again this year.

The National Retail Federation, the nation's largest retail trade group, has taken an optimistic view, predicting that shoppers will be looking for reasons to celebrate. The trade group expects sales for the November and December period to increase between 3.6% and 5.2% over 2019 compared with a 4% increase the year before. Holiday sales have averaged gains of 3.5% over the past five years.

“After all they’ve been through, we think there’s going to be a psychological factor that they owe it to themselves and their families to have a better-than-normal holiday,” said NRF Chief Economist Jack Kleinhenz.

Retailers were successful in convincing shoppers to spend early by pushing big discounts in mid-October. And shoppers have shown their willingness to spend for other holidays like Easter and Halloween.

Thanksgiving Day hit a new record online as spending reached $5.1 billion, up 21.5% compared to a year ago, according to Adobe Analytics, which measures sales at 80 of the top 100 US online retailers. Among the most popular items were Lego sets, Barbie toys, and kid scooters, HP laptops, and Apple Watches, according to Adobe. The popularity of Netflix’s “Queen’s Gambit” has boosted sales for chess-related items by more than threefold compared to the previous month, Adobe said.

Black Friday is projected to generate $10 billion in online sales, a 39% bump from the year ago period, according to Adobe Analytics. And Cyber Monday, the Monday after Thanksgiving, will remain the biggest online shopping day of the year with $12.7 billion in sales, a 35% jump.

The pandemic has already benefited Amazon, which continues to seal its dominance in the online space as jittery shoppers click on their devices instead of venturing into stores. Likewise, big box chains like Walmart and Target that were allowed to stay open during the spring lockdowns fared far better than department stores and other non-essential retailers that were forced to close. That disparity helped speed up bankruptcy filings of more than 40 chains, including J.C. Penney and J.Crew, and resulted in hundreds of stores closings.

Department stores and other clothing stores that haven't yet recovered from the closures during the spring will have a hard time making up for lost sales, says Ken Perkins, president of Retail Metrics LLC , a retail research firm.

For the fiscal third quarter, mall-based retailers saw their profits down 20% while big box stores and other retailers that operate outside a traditional mall posted a 19% increase, according to RetailMetrics' tally of roughly 100 retailers. For the fiscal fourth quarter, mall-based retailers are expected to see profits down 31%, while off-mall stores should see profits up 1%.



IMF Revises Down Middle East Growth Outlook

An International Monetary Fund police officer walks by an IMF banner, during the World Bank/IMF Spring Meetings in Washington, Thursday, April 18, 2024. (AP Photo/Jose Luis Magana)
An International Monetary Fund police officer walks by an IMF banner, during the World Bank/IMF Spring Meetings in Washington, Thursday, April 18, 2024. (AP Photo/Jose Luis Magana)
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IMF Revises Down Middle East Growth Outlook

An International Monetary Fund police officer walks by an IMF banner, during the World Bank/IMF Spring Meetings in Washington, Thursday, April 18, 2024. (AP Photo/Jose Luis Magana)
An International Monetary Fund police officer walks by an IMF banner, during the World Bank/IMF Spring Meetings in Washington, Thursday, April 18, 2024. (AP Photo/Jose Luis Magana)

The International Monetary Fund said on Thursday Middle East economies would grow at a slower pace this year than it previously projected as the war in Gaza, attacks on Red Sea shipping and lower oil output add to existing challenges of high debt and borrowing costs.

The IMF revised down its 2024 growth forecast for the Middle East and North Africa (MENA) region to 2.7% from 3.4% in its October regional outlook. That would be an improvement from 1.9% growth in 2023.

The downward revision was driven by conflicts in Sudan, the West Bank and Gaza, as well as oil production cuts.

"Assuming these factors ease in 2025, growth is forecast to strengthen to 4.2%," the IMF said.

"Uncertainty is high and medium-term growth is forecast to remain below pre-pandemic historical averages."

Within MENA, oil exporters are seen faring better, with the IMF projecting 2.9% growth this year, up 1 percentage point from last year.

Gulf economies are seen growing 2.4% this year, a downward revision of 1.3 percentage points from October, the IMF said. Non-hydrocarbon growth in the oil-rich region will be the main driver of growth going forward and ambitious plans to diversify their economies are expected to reduce dependence on hydrocarbons, the IMF said.

Non-Gulf oil exporters are seen growing 3.3% in 2024, up from 3% seen in October.

Prolonged disruptions to trade in the Red Sea would further impact trade volumes and shipping costs.

"The conflict in Gaza and Israel is a key downside risk for the MENA region, particularly the risk of further escalation or a protracted conflict and disruptions to trade and shipping," the IMF said.


Iraq to Seek Bids for Oil, Gas Contracts April 27

FILE PHOTO: A general view shows the central station gas processing plant at Rumaila oilfield in Basra, Iraq, November 5, 2020. REUTERS/Essam Al-Sudani/File Photo
FILE PHOTO: A general view shows the central station gas processing plant at Rumaila oilfield in Basra, Iraq, November 5, 2020. REUTERS/Essam Al-Sudani/File Photo
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Iraq to Seek Bids for Oil, Gas Contracts April 27

FILE PHOTO: A general view shows the central station gas processing plant at Rumaila oilfield in Basra, Iraq, November 5, 2020. REUTERS/Essam Al-Sudani/File Photo
FILE PHOTO: A general view shows the central station gas processing plant at Rumaila oilfield in Basra, Iraq, November 5, 2020. REUTERS/Essam Al-Sudani/File Photo

Iraq will hold a bidding round for oil and gas exploration contracts on April 27, the oil ministry said on Thursday.
Iraq will auction 30 new oil and gas projects in two licensing rounds distributed across the country as it seeks to produce much needed natural gas for power stations and cut imports burdening the country's budget.
The "fifth plus" round includes 16 projects, some of which were not awarded in the fifth licensing round, while the sixth round will offer mainly exploration gas blocks, the ministry said in a statement.
The country flares much of its own gas, extracted alongside crude oil at its fields, because it lacks the facilities to process it into fuel. Instead, it uses Iranian power imports to generate electricity.


UN Says Solutions Exist to Rapidly Ease Debt Burden of Poor Nations

UNCTAD's Rebeca Grynspan compared the debt burden facing poorer countries to "a reverse blood transfusion". Fabrice COFFRINI / AFP
UNCTAD's Rebeca Grynspan compared the debt burden facing poorer countries to "a reverse blood transfusion". Fabrice COFFRINI / AFP
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UN Says Solutions Exist to Rapidly Ease Debt Burden of Poor Nations

UNCTAD's Rebeca Grynspan compared the debt burden facing poorer countries to "a reverse blood transfusion". Fabrice COFFRINI / AFP
UNCTAD's Rebeca Grynspan compared the debt burden facing poorer countries to "a reverse blood transfusion". Fabrice COFFRINI / AFP

The heavy debt weighing on developing countries can be alleviated through readily available measures, the UN's trade and development chief said, pleading for bold international action.
Rebeca Grynspan compared the debt burden facing poorer countries to "a reverse blood transfusion", with money flowing "from the ones that need it to the ones that don't".
In 2022 -- the last year for which there are clear statistics -- developing countries "paid almost $50 billion more to their external creditors than they received in fresh disbursements", UNCTAD said in a recent report.
"What we need to be aware of is that the markets are not in distress, people are," Grynspan told AFP in an interview this week. "We are in a debt crisis."
The former Costa Rican vice president and government minister pointed out that it was "the small and medium-sized countries that don't move the markets, that are the ones that are in the distress".
They are "in a situation where they are spending more on their debt than on human development, on their own health or education" systems.
'Too slow'
UNCTAD, she said, estimated that currently "there are 52 countries that are either in debt distress or on the brink of debt distress".
Grynspan said she planned to address the issue during this week's meetings of the International Monetary Fund and World Bank in Washington.
Grynspan, who in 2021 became the first woman to lead the agency, has raised its profile by participating in G20 meetings, and also by representing the UN on difficult briefs.
She has among other things played a vital role in negotiations towards ensuring the continued export of fertilizers from Russia -- vital for global food security.
There have been numerous efforts over the decades to resolve debt problems weighing on poor countries, but Grynspan said they have been so slow and complicated that they often act as a "deterrent".
"Countries think twice before they go into a restructuring process that takes so long," she said, so "they prefer to pay, although the cost and pain is so big".
"It's a huge cost for the population."
Grynspan hailed efforts underway to lessen the burden on countries appealing for aid, including an IMF call to speed up the treatment of debt relief applications.
She stressed though that "these are ad hoc mechanisms".
In the long term, "we need an internationally-agreed, stable mechanism for debt restructure."
'Great relief'
Some countries do not have the luxury of waiting for the creation of such a mechanism, and need immediate relief, she said.
Grynspan highlighted that the dire situations many countries face stem more from cascading crises suffered during the Covid-19 pandemic than from government mismanagement.
"So there is a reason and a rationale for the international community to come with much more help and support for these countries," she said.
"A low-hanging fruit," she said, would be to remove the surcharges that 17 countries currently pay to the IMF.
Exempting them from those charges, which are aimed at encouraging countries to quickly exit IMF assistance, would swiftly free up $2 billion, according to Grynspan.
That money, she said, could provide "great relief" if used towards "the needs of the people of these countries".
She also hailed an idea put forward by the World Bank, the Inter-American Development Bank and its African counterpart to provide guarantees to "really lower the premium of the interest rates in the developing countries" to attract private investment.
And she suggested accelerating the IMF's Resilience and Sustainability Trust (RST), aimed at helping vulnerable countries build resilience to shocks, including from climate change.
Other interesting proposals, she said, included to swap debt for nature, and to automatically suspend interest payments for countries hit by natural disasters.
"Those are things that can be decided today," Grynspan said.
"We don't have to wait a decade to have results."


11.2 Million Saudis Join Private Employment Market

According to the Labor Observatory statistics, the total number of workers in the private sector reached about 10.9 million. (SPA)
According to the Labor Observatory statistics, the total number of workers in the private sector reached about 10.9 million. (SPA)
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11.2 Million Saudis Join Private Employment Market

According to the Labor Observatory statistics, the total number of workers in the private sector reached about 10.9 million. (SPA)
According to the Labor Observatory statistics, the total number of workers in the private sector reached about 10.9 million. (SPA)

A new report has shown that the Saudi private sector employment market has for the first time incorporated over 11.2 million employees, 8.8 of whom are expatriates and 2.3 million are Saudi nationals.
The increase in the number of Saudis in the employment market comes at a time when the unemployment rate among Saudis recorded the lowest level at 7.7 percent during the last quarter of 2023.
This is very close to the Vision 2030 unemployment target of 7 percent, thanks to the increase in the number of female workers and the government’s efforts to create more job opportunities for Saudis.
In its statistical figures, the National Labor Observatory said on Wednesday that over 28.1 thousand citizens joined, for the first time, the private sector’s labor force last March.
According to the Observatory, 9.9 million employees in the private sector are males, while the number of females touched 1.3 million.


UAE, Costa Rica Sign Trade Deal

The UAE and Costa Rica signed a Comprehensive Economic Partnership Agreement (CEPA) during a virtual ceremony. WAM
The UAE and Costa Rica signed a Comprehensive Economic Partnership Agreement (CEPA) during a virtual ceremony. WAM
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UAE, Costa Rica Sign Trade Deal

The UAE and Costa Rica signed a Comprehensive Economic Partnership Agreement (CEPA) during a virtual ceremony. WAM
The UAE and Costa Rica signed a Comprehensive Economic Partnership Agreement (CEPA) during a virtual ceremony. WAM

The United Arab Emirates and Costa Rica have signed an agreement that will help improve bilateral trade and investment ties, UAE President Sheikh Mohammed bin Zayed Al Nahyan said on Thursday.

The Gulf and Central American countries signed a Comprehensive Economic Partnership Agreement (CEPA) during a virtual ceremony, the president said in a post on social media platform X.

CEPAs signed by the UAE are broad free trade agreements that typically also include clauses covering investment and services.

“The agreement, which was signed by Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Manuel Tovar, Minister of Foreign Trade of Costa Rica, heralds a new era of bilateral cooperation between the two countries. It will also enhance trade flows, increase private-sector collaboration, and provide new opportunities for investment, particularly in priority sectors such as logistics, energy, aviation, tourism, and infrastructure development,” UAE's state news agency (WAM) said.

Bilateral non-oil trade between the two countries was worth $65 million in 2023, up 7% on the previous year, according to the report carried by WAM on the CEPA signing.

Sheikh Mohamed welcomed the agreement as a new chapter in UAE-Costa Rican economic relations.

He highlighted the importance of trade to international cooperation, particularly in the pursuit of secure, resilient supply chains and solutions to pressing global issues such as climate change and food security.


Oil Stabilizes after Sharp Drop on Demand Concerns, Easing of Middle East Tension

Men work at an oil refinery in Sodegaura, Japan February 8, 2017. Reuters/Issei Kato
Men work at an oil refinery in Sodegaura, Japan February 8, 2017. Reuters/Issei Kato
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Oil Stabilizes after Sharp Drop on Demand Concerns, Easing of Middle East Tension

Men work at an oil refinery in Sodegaura, Japan February 8, 2017. Reuters/Issei Kato
Men work at an oil refinery in Sodegaura, Japan February 8, 2017. Reuters/Issei Kato

Oil prices were little changed after a 3% drop in the previous session as the market remains concerned about demand this year and on signs that a wider conflict in the key Middle East producing region could be avoided.
Brent futures were up 13 cents, or 0.15%, at $87.42 a barrel, while US West Texas Intermediate (WTI) crude futures traded 6 cents higher, up 0.07%, at $82.75 a barrel at 0636 GMT.
The two benchmarks slid 3% in the previous session on signs that fuel demand this year is lower than expected amid flagging economic growth in China and as oil inventories in the US, the world's biggest crude consumer, rose.
Analysts at JP Morgan highlighted in a note late on Tuesday that worldwide oil consumption so far in April has been 200,000 barrels per day (bpd) below its forecast, averaging 101 million bpd. From the start of the year, demand has risen by 1.7 million bpd, down from its forecast in November of 2 million bpd.
At the same time, investors are discounting the chance that Israel will strongly retaliate against Iran's missile and drone attack on April 13, which was prompted by Israel's alleged killing of Iranian military leaders at a Syrian diplomatic site on April 1.
Iran is the third-largest producer in the Organization of the Petroleum Exporting Countries, according to Reuters data, and an easing of its conflict with Israel would reduce the potential for supply disruptions in the Middle East.
"Brent is now back to levels before the April 1 attack on the Iranian consulate, suggesting that the latest bout of risk premium from heightened Israel-Iran tensions has eroded," said Vandana Hari, founder of oil market analysis provider Vanda Insights.
Surging US crude inventories also kept a lid on prices. Oil inventories rose by 2.7 million barrels to 460 million barrels in the week ending April 12, the Energy Information Administration said, nearly double analysts' expectations in a Reuters poll for a 1.4 million-barrel build.
Stockpiles built as refinery utilization declined at a time when processing typically rises ahead of summer driving demand in the US.
Gasoline stocks fell by 1.2 million barrels in the week to 227.4 million barrels, the EIA said
Distillate stockpiles, which include diesel and heating oil, fell by 2.8 million barrels to 115 million barrels, versus expectations for a 300,000-barrel drop, the EIA data showed.
"A bearish EIA inventory report appears to have been the perfect opportunity for investors to lock in profits after the recent gains," Daniel Hynes, the senior commodity strategist at ANZ, said in a note on Thursday.


US to Reimpose Oil Sanctions on Venezuela

FILE PHOTO: El Palito refinery of the Venezuelan state oil company PDVSA is seen, in Puerto Cabello, Venezuela February 10, 2024. REUTERS/Leonardo Fernandez Viloria/File Photo
FILE PHOTO: El Palito refinery of the Venezuelan state oil company PDVSA is seen, in Puerto Cabello, Venezuela February 10, 2024. REUTERS/Leonardo Fernandez Viloria/File Photo
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US to Reimpose Oil Sanctions on Venezuela

FILE PHOTO: El Palito refinery of the Venezuelan state oil company PDVSA is seen, in Puerto Cabello, Venezuela February 10, 2024. REUTERS/Leonardo Fernandez Viloria/File Photo
FILE PHOTO: El Palito refinery of the Venezuelan state oil company PDVSA is seen, in Puerto Cabello, Venezuela February 10, 2024. REUTERS/Leonardo Fernandez Viloria/File Photo

The Biden administration will reimpose oil and gas sanctions on Venezuela after President Nicolas Maduro failed to comply with a US-backed agreement to allow free and fair elections this year.

Barring any last-minute concessions by Maduro, the US has made clear it is not likely to renew a six-month license that granted the OPEC member partial sanctions relief from October, following an election deal reached between the government and the Venezuelan opposition. It expires just after midnight EST (0400 GMT on Friday).

Washington had repeatedly threatened in recent months to reinstate punitive measures on Venezuela's vital oil and gas sector unless Maduro made good on his promises, including allowing the opposition to run the candidate of its choice against him in the July 28 election.

Maduro's government has complied with some of the terms of the deal, signed in Barbados. The Venezuelan President on Tuesday accused Washington of blackmail over sanctions.

The withdrawal of the most significant element of US sanctions relief would mark a major step back from US President Joe Biden's policy of re-engagement with the Maduro government.

But the Biden administration is expected to stop short of a full return to the “maximum pressure” campaign waged under former US President Donald Trump, according to people familiar with the matter.

Weighing on the US decision have been concerns about whether reimposing sanctions on Venezuela's energy sector could spur higher global oil prices and increase the flow of Venezuelan migrants to the US-Mexico border as Biden campaigns for reelection in November.

“We have made very clear that if Maduro and his representatives did not fully implement their agreements under the Barbados agreement, we would reimpose sanctions, and I would just say stay tuned,” US State Department spokesperson Matthew Miller told a daily briefing in Washington on Tuesday. He declined to elaborate.

Maduro's government has repeatedly reacted with defiance the Washington's warnings.

“International companies continue coming to Venezuela,” Venezuelan Oil Minister Pedro Tellechea said in Caracas. “With or without sanctions, Venezuela will be respected.”

Venezuela's oil exports in March rose to their highest level since early 2020 as customers rushed to complete purchases ahead of the possible return of sanctions, Reuters reported this month.

Deliberations on Sanctions Options

Deliberating on how far to go, Biden's aides had discussed a range of options ahead of the expiration of the US Treasury license that has allowed Venezuela to freely sell its crude, US sources said.

Among the steps they considered was allowing Venezuela to continue shipping oil but reimposing a ban on the use of US dollars in such transactions.

Failure to renew the current license would not rule out the possibility that the US could at some point issue a new version to replace it if Maduro starts to give ground on electoral commitments.

Without a general license, however, most foreign partners of Venezuela's state-run oil firm PDVSA may have no other option but to increase pressure for individual US authorizations, which they have been seeking for years.

The Biden administration initially re-engaged diplomatically with Maduro when the US was looking for ways to get more oil on world markets to offset the rise in crude prices from Western sanctions imposed on Russia over its 2022 invasion of Ukraine. Those contacts led to a deal for easing some of the harsh Trump-era sanctions on Caracas.

Earlier, a group of Republican US senators sent a letter to Biden urging his administration not to renew the license. “We must not cede American leverage by lifting US sanctions while the Maduro government deliberately disregards its obligations,” the senators said.


Japan Oil Refiners to Tap Reserves in Case of Middle East Disruption

Men work at an oil refinery in Sodegaura, Japan February 8, 2017. Reuters/Issei Kato
Men work at an oil refinery in Sodegaura, Japan February 8, 2017. Reuters/Issei Kato
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Japan Oil Refiners to Tap Reserves in Case of Middle East Disruption

Men work at an oil refinery in Sodegaura, Japan February 8, 2017. Reuters/Issei Kato
Men work at an oil refinery in Sodegaura, Japan February 8, 2017. Reuters/Issei Kato

Japanese oil refiners see no immediate impact from escalating tensions in the Middle East on their crude procurement, but will use the country's reserves in case of contingencies to ensure stable oil supplies, said the president of Petroleum Association of Japan (PAJ), Shunichi Kito.

“We don't believe that there are any obstacles to the procurement of crude oil to Japan for now,” Kito told a news conference on Wednesday, when asked about the impact of the Iranian counter-attack on Israel over the weekend.

But he acknowledged that if the conflict were to escalate and affect the broader Middle East it would pose a serious problem.

“In case of any disruption in crude oil supply, it is important to be prepared by making flexible use of the oil reserve to ensure that the oil supply will not be disrupted,” he said, noting Japan's public and private sectors have a combined 240-day oil reserve.

Japan relies heavily on Middle Eastern crude, importing over 95% of its oil from the region.

Kito, who is also the president of Japan's No.2 oil refiner Idemitsu Kosan, said his company is looking into possibility of substituting some supply from the Middle East with other sources.

“As alternative sources, we are considering crude from West Africa and North America, if they can be transported and processed smoothly in our refineries,” he said.

But he noted that most Japanese refineries are designed to process crude from the Middle East, and it would not be easy to switch to new supplies as they may not fit with their facilities.


NEOM Hosts Leading Industry Figures for its ‘Discover NEOM’ China Showcase

The tour began in Beijing on April 15, and continued in Shanghai on April 17. (SPA)
The tour began in Beijing on April 15, and continued in Shanghai on April 17. (SPA)
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NEOM Hosts Leading Industry Figures for its ‘Discover NEOM’ China Showcase

The tour began in Beijing on April 15, and continued in Shanghai on April 17. (SPA)
The tour began in Beijing on April 15, and continued in Shanghai on April 17. (SPA)

Saudi Arabia’s NEOM kicked off the China leg of its global “Discover NEOM” tour, in Beijing and Shanghai, with over 500 senior business and industry leaders in attendance.

The tour began in Beijing on April 15, and continued in Shanghai on April 17, said NEOM in a statement on Wednesday.

Organized in partnership with CCPIT Beijing and CCPIT Shanghai, the events included a series of presentations by NEOM’s leadership team showcasing on-the-ground progress and milestones to date, as well as details of NEOM’s various economic sectors.

The events highlighted opportunities for Chinese companies to engage and invest in NEOM. A number of companies expressing interest and discussing tangible next steps with NEOM leadership.

The agenda also included a forum that explored the vast number of opportunities available for Chinese construction companies. Over 100 companies participated in the forum and were briefed about the onsite construction progress across NEOM and its regions.

A private showcase, titled “Discover NEOM: A New Future by Design”, was the highlight of the events. It provided guests with an immersive experience that explored THE LINE, the 170-kilometer-long city that will be the future of urban living; Oxagon, which is redefining the traditional industrial model; Trojena, the mountain resort of NEOM, and finally, Sindalah, a luxury island destination in the Red Sea that will be open to the public later this year.

NEOM CEO Nadhmi Al-Nasr said: “We are grateful to CCPIT Beijing and CCPIT Shanghai for supporting our visit to China and for the opportunity to present NEOM’s vision.”

“To date, NEOM has already engaged with over 15 major Chinese businesses and invested in a number of Chinese startups to support the growth and diversification of NEOM. Collaboration with China will continue to play a vital role in the development of NEOM, and we look forward to strengthening our engagement with the country’s business community.”

CCPIT Beijing Chairman Guo Huaigang said that NEOM and Beijing have significant potential for economic cooperation, and that both are accelerating the development of new modes of productivity, deepening comprehensive reforms, promoting scientific and technological innovation, and working to ensure the protection of the environment. He added that CCPIT Beijing looks forward to the role the cooperation can have in Beijing’s future prosperity.

Deputy Secretary General of Shanghai Municipal Government Zhao Zhuping said: “Shanghai greatly values our relationship with Saudi Arabia. Over the years, we have engaged in extensive cooperation in trade, education, culture and more. We look forward to deepening mutually beneficial engagement with NEOM across infrastructure, renewable energy and technological innovation. The benefits and opportunities for this partnership will only continue to grow.”

“Discover NEOM” China is the latest edition of NEOM’s global roadshow; it follows engagements in key international markets, including Seoul, Tokyo, Singapore, New York City, Boston, Washington, D.C., Miami, Los Angeles, San Francisco, Paris, Berlin and London.


Iraq to Exploit Flared Gas in Cooperation with the US

The Iraqi flag flutters in front of a gas field. (AFP)
The Iraqi flag flutters in front of a gas field. (AFP)
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Iraq to Exploit Flared Gas in Cooperation with the US

The Iraqi flag flutters in front of a gas field. (AFP)
The Iraqi flag flutters in front of a gas field. (AFP)

Iraq and the United States signed on Monday memoranda of understanding (MOUs) to capture flared gas and transform it into electricity, in an attempt to solve the chronic shortage crisis, despite Baghdad’s rich fossil fuel resources.

Iraq aims to achieve self-sufficiency in gas production during the next five years, according to statements by Oil Minister Hayan Abdul Ghani, last month.

The country has gas reserves estimated at 131 trillion cubic feet, ranking 11th in the world according to the US Energy Agency. However, weak infrastructure has reduced daily production capacity by half, recording about 1.5 billion cubic feet of associated gas.

The remaining half is left to burn in the air, causing a loss of millions of dollars and increasing global warming emissions, in a country threatened by a real crisis due to climate change, according to the United Nations.

The largest gas production projects are led by the Basra Gas Company, which is a joint venture between the Iraqi government, which owns 51 percent, Shell (44 percent) and Mitsubishi of Japan (5 percent). In addition to this huge project, the remaining production is carried out through some small stations in the south of the country.

“To allow Iraq to benefit from the US private sector’s leading technology and expertise, the United States and Iraq announced the signing of new memoranda of understanding (MOUs) to capture and process flared gas and turn it into usable electricity for the Iraqi people,” read a joint statement following the US-Iraq Higher Coordination Committee (HCC) meeting.

The press release did not mention a time period for the MOUs.

Iraq needs 40,000 megawatts of electrical energy to meet its needs. It currently produces 27,000 megawatts through stations that operate mostly on gas. But the production capacity sometimes drops to 17,000 megawatts.

Iraq has turned to Iran to fill the remaining gap. It has been importing about 50 million cubic meters since 2017.

However, reliance on unstable Iranian gas, in addition to geopolitical complications, such as US sanctions on Tehran, and internal security such as “sabotage operations” and attacks on the electricity network, cause repeated power outages in the country, which in 2021 led to violent protests.