Algeria's Sonatrach Resumes Exploratory Drilling in Libya
FILE PHOTO: The logo of the state energy company Sonatrach is pictured at the headquarters in Algiers, Algeria November 25, 2019. REUTERS/Ramzi Boudina/File Photo
Algeria's Sonatrach Resumes Exploratory Drilling in Libya
FILE PHOTO: The logo of the state energy company Sonatrach is pictured at the headquarters in Algiers, Algeria November 25, 2019. REUTERS/Ramzi Boudina/File Photo
Algeria's oil and gas firm Sonatrach resumed its exploratory drilling in Libya's Ghadames basin in mid-October, Tripoli's National Oil Corp (NOC) said in a statement on Thursday.
The well is located in contract area (95/96) in the Ghadames Basin, near the Libyan-Algerian border, NOC said in the statement. It is also approximately 100 km (62.14 miles) from Wafa field.
"The company plans to complete drilling at an expected final depth of 8,440 feet," said the NOC.
It said that Sonatrach halted its activities and left the site more than 10 years ago "due to unstable security situation at that time."
Libya is one of Africa's biggest oil producers but output has been disrupted repeatedly in the chaotic decade since 2014, when the country split between rival authorities in the east and west following the uprising that toppled Muammar Gaddafi.
UK House Prices Fall Unexpectedly as Market Feels Iran War Impacthttps://english.aawsat.com/business/5280658-uk-house-prices-fall-unexpectedly-market-feels-iran-war-impact
A banner advertising new houses for sale a seen on a new housing development under construction in Partington, Britain June 1, 2023. REUTERS/Phil Noble
UK House Prices Fall Unexpectedly as Market Feels Iran War Impact
A banner advertising new houses for sale a seen on a new housing development under construction in Partington, Britain June 1, 2023. REUTERS/Phil Noble
British house prices unexpectedly fell in May, according to data from mortgage lender Halifax on Friday, which represented the latest sign of a cooling in the market as higher borrowing costs and uncertainty caused by the Iran war weigh on demand.
House prices fell by a monthly 0.1% in May, the same as in April, representing the third consecutive month-on-month fall, Reuters quoted Halifax as saying. A Reuters poll of economists had pointed to a rise of 0.1% on the month.
"Property price trends continue to reflect the uncertainty linked to developments in the Middle East," said Amanda Bryden, head of mortgages at Halifax.
"Despite recent cuts to mortgage rates, higher inflation expectations have kept borrowing costs above the level seen at the start of the year, continuing to stretch affordability for many buyers and temper demand."
Compared to a year ago, prices were 0.5% higher, well below the 1.0% rise forecast in the poll.
The survey chimed with findings from rival mortgage lender Nationwide, which in May recorded the first monthly fall since the start of the Iran war.
Data from the Royal Institution of Chartered Surveyors also showed a drop in house prices and demand in April.
Average mortgage rates in Britain have climbed by almost a full percentage point since the start of the US-Israeli war on Iran. The conflict also means that financial markets now expect the Bank of England to raise interest rates later this year, rather than cut them.
Investors currently price in one or possibly two quarter-point rate rises by the BoE by the end of 2026, but see only around an 11% chance of a move on June 18 after the central bank's next meeting.
Despite the higher borrowing costs, lenders approved the most mortgages in 15 months in April, according to data from the BoE on Tuesday.
Saudi Energy Minister Says Kingdom Remains Reliable, Flexible Supplierhttps://english.aawsat.com/business/5280546-saudi-energy-minister-says-kingdom-remains-reliable-flexible-supplier
Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman al-Saud attends the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg on June 4, 2026. (Photo by Olga MALTSEVA / AFP)
Saudi Energy Minister Says Kingdom Remains Reliable, Flexible Supplier
Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman al-Saud attends the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg on June 4, 2026. (Photo by Olga MALTSEVA / AFP)
Saudi Energy Minister Prince Abdulaziz bin Salman seized the spotlight at a high-level dialogue session held during the 2026 St. Petersburg International Economic Forum, breaking a strategic silence that had become a focus of questions and a gauge for global market expectations.
Speaking on Thursday, he delivered carefully calibrated messages to the energy sector, stressing that the world urgently needs stability in energy markets and declaring with confidence that the Kingdom is a flexible energy supplier, was, and will remain so under all circumstances.
In his remarks during a special session at the forum, where the Kingdom is taking part as “main guest of honor” as the two countries mark the centenary of diplomatic relations, Prince Abdulaziz acknowledged that current geopolitical events in the Middle East were distracting attention and obstructing focus on Saudi Arabia’s strategic priorities, foremost among them the goals of Vision 2030.
He described the situation as a source of considerable frustration.
Even so, he sent a strong message of reassurance to global markets, saying in a firm tone that it was their duty, and that of every Saudi citizen, to defy this difficult environment and continue to pursue their ambitions.
The Kingdom has the capability and confidence to address challenges and demonstrate its economic and operational resilience, he added.
He pointed to what he described as the success of Saudi Arabia’s infrastructure and logistics system in turning tragedies into opportunities, and in managing the Hajj season with unprecedented success despite the surrounding regional turmoil.
On the partnership with Moscow, the Saudi Energy Minister announced the signing of 30 new cooperation agreements between the private sectors in the two countries across fields including industry, education, tourism, and energy.
Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman al-Saud attends the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg on June 4, 2026. (Photo by Olga MALTSEVA / AFP)
Prince Abdulaziz said the Kingdom will sign agreements across various fields and that there are no limits or restrictions on joint cooperation.
He added that the strategic mindset in Riyadh and Moscow had moved beyond being merely “producers of oil or gas” to “manufacturing and supplying energy in its comprehensive sense,” including hydrocarbons and the export of electrons.
In an explanation of his earlier position, which had kept oil traders on edge, Prince Abdulaziz said he had deliberately remained silent during the period that witnessed one of the most severe global energy crises.
A minister is required to maintain his composure and not panic, because panic makes a person lose control of the narrative, he explained.
He moved on to express his intention to maintain silence, because silence amid many unknowns is a message and a humble acknowledgment that reality is changing quickly, and is a form of respect for oneself and for others.
He concluded his assessment of current market conditions with a pointed remark reflecting the scale of uncertainty clouding the global scene.
“The situation we’re going through now does make a point here, which is the world needs every molecule of energy, and every form of stabilization to this energy, because without energy security, you will lose sustainability,” the Saudi minister said.
“There are so many moving parts, there are so many unknowns, there are things that you think have become a reality, but then you wake up in the next morning and the reality is no longer a reality.”
Novak says the market faces a 12 million barrel shortfall
For his part, Russian Deputy Prime Minister Alexander Novak described the current crisis in the international oil market as unprecedented, with no parallel even in the 20th century.
Novak said Russia would deal with the Western sanctions imposed on it with flexibility and complete calm, given its position as a key supplier of energy resources to the international market.
He warned of a large, hidden shortfall in global supply, estimated at about 12 million barrels per day that are currently not reaching the market.
He said global markets had not yet felt the full impact of the energy crisis caused by the Middle East conflict because the situation was being managed through withdrawals from surplus reserve inventories.
Novak cautioned that if the conflict continues and Gulf states delay increasing production, the market will face an acute and immediate physical shortage of supplies within a few months.
In his analysis of the producers’ alliance, Novak stressed that the OPEC+ agreement remains a key driver of energy market direction.
He said its members control more than 50% of global production and more than 40% of total exports, adding that the agreements have proven highly efficient at curbing volatility and reducing market fluctuations.
Novak said current data gave countries an opportunity to accelerate compliance, describing the existing approach as a “standard and normal course” that allows countries that had previously exceeded their quotas for any reason to implement compensation plans for their earlier overproduction more quickly.
On Russia, Novak said technical analytical calculations to determine Russia’s maximum production ceiling are continuing in cooperation with the companies concerned, and would be discussed with partners by the end of 2026.
He expected Moscow to effectively reach its assigned production levels this year under the agreed quotas, despite current output being slightly lower than at the start of the year because several refineries were undergoing “emergency and unscheduled maintenance.”
Expectations of strong demand
OPEC Secretary General Haitham Al Ghais said the organization expects robust oil demand growth and would not change its estimates despite the conflict in the Middle East and the closure of the Strait of Hormuz.
“Despite all the commentary out there that oil demand is declining, we have not registered signs of that yet,” Al Ghais said.
“We still see robust demand growth at 1.2 million barrels a day for this year,” he said.
He also said investment in the oil sector should not be affected by "one-off events" that may occur anywhere in the world.
Egyptian Minister of Petroleum and Mineral Resources Karim Badawi told the session that renewable energy is a top priority to reduce dependence on natural gas. He said Egypt is working hard to increase electricity generation from wind and hydropower to secure a sustainable energy mix.
Markets hold their breath before the Sunday marathon
The remarks made at the forum on Thursday carry major significance as a prelude and practical indicator of the direction of leading producers ahead of decisive oil-related meetings next Sunday.
That day will see three consecutive meetings, beginning with OPEC’s administrative conference, followed by the 66th meeting of the Joint Ministerial Monitoring Committee, or JMMC, which is responsible for monitoring compliance levels, consensus, and the approval of current compensation plans.
Investors are closely watching the 41st ministerial meeting of the OPEC+ alliance. Informed sources said the alliance is likely to approve an additional gradual increase in its targets for next July.
OPEC Secretary General: Oil Demand to Remain Robust, No Change to Estimateshttps://english.aawsat.com/business/5280513-opec-secretary-general-oil-demand-remain-robust-no-change-estimates
OPEC Secretary General Haitham Al Ghais attends the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg on June 4, 2026. (Photo by Olga MALTSEVA / AFP)
OPEC Secretary General: Oil Demand to Remain Robust, No Change to Estimates
OPEC Secretary General Haitham Al Ghais attends the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg on June 4, 2026. (Photo by Olga MALTSEVA / AFP)
OPEC expects robust oil demand growth and is not changing its estimates, Secretary General Haitham Al Ghais said on Thursday at the St. Petersburg International Economic Forum, despite the Middle East conflict and closure of the Strait of Hormuz.
"Despite all the commentary out there that oil demand is declining, we have not registered signs of that yet," Reuters quoted Al Ghais as saying.
"We still see robust demand growth at 1.2 million barrels a day for this year," he said.
He also said that investments in the oil industry should not be affected by "one-off events" that happen anywhere in the world.
"We need to invest well ahead of time to be prepared for the demand that we see in the future," he said.
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