OPEC could 'define oil price' with Russia, says minister



Russia should join OPEC so the oil exporters' group could dictate the price of oil, a senior executive of the country's second-largest oil producer said yesterday. An enlarged OPEC including Russia would control 51 per cent of world output and could do away with oil futures by returning to fixed contract prices, said Leonid Fedun, the vice president of Lukoil. "We could define the price precisely. We could decide that tomorrow the oil price would be US$100 per barrel. Unfortunately, Russia's political leaders did not go this route," he said in an interview published in Russia's Kommersant newspaper. He added: "Russia should join OPEC and move to direct contracts. Then we will jointly control 51 per cent of world output and we can dictate the price by directive."

In March, the OPEC secretary general, Abdulla el Badri, said the group would welcome Russia as a member. However, its relations with Moscow have soured in recent months, after Russia failed to reduce its oil exports in solidarity with OPEC efforts to stabilise oil markets through record output cuts equivalent to about 5 per cent of world oil supply. Analysts said the OPEC cuts had been subsidising Russia's oil-fuelled economy by supporting crude prices.

Yesterday, crude slipped below $70 per barrel, following lower equities markets as investors weighed mixed economic signals. Oil prices this week have fallen from eight-month highs of near $73, amid signs that the US economy remains fragile. But they remain at roughly twice their level at the beginning of this year after a record plunge from $147 per barrel last July. Russia, which had been sending high-level observers to OPEC meetings, was not invited to the group's latest ministerial meeting on May 28 in Vienna. But it would refresh ties with OPEC at a meeting in July, Igor Sechin, the Russian deputy prime minister, said earlier this month.

"We are continuing co-operation with OPEC and there is a proposal to hold a joint seminar on co-operation between OPEC and the (Russian) energy ministry," he said. Sergei Shmatko, Russia's energy minister, said the meeting could take place either in Moscow or Vienna. Still, Mr Sechin told reporters that Moscow had no plan to cut oil production in the next three years, although output could fall if producers failed to make the necessary investments.

Mr Shmatko said that at current prices, there was no economic basis for cutting exports, especially with oil demand from China and India continuing to rise. Russia, which at times pumps more crude than Saudi Arabia, is the world's biggest oil exporter outside OPEC. Last year, its oil production averaged 9.9 million barrels per day (bpd), of which 3.5 million bpd were exported, according to industry estimates.

Russia is planning to increase crude exports to China, and in February secured US$25 billion (Dh91.81bn) in loans from Beijing in exchange for 20 years of supplies through a new trans-border pipeline from oilfields in eastern Siberia. China and other emerging economies in Asia are concerned that they will not be able to obtain enough oil in coming years from their traditional suppliers in the Gulf region.

Oil exports from the Middle East are unlikely to rise above last year's level between now and 2015, because the region will consume more of its crude output in its own refineries and power plants, the consulting firm FACTS Global Energy said yesterday. "The volume and quality of incremental crude capacity coming online in the Middle East will closely match the planned additions to local refining capacity," Vijay Mukherji, an analyst based in London, said in a report. "As a result, there is likely to be intense competition for Middle East crude.

"Asian countries will have to go elsewhere, such as West Africa, Latin America and non-OPEC countries, for crude that won't necessarily match the configurations of their refineries." Crude production from the Middle East reached 22.9 million bpd last year and is expected to rise by 2.3 million bpd to 25.2 million bpd in 2015, according to FACTS. But the region's expanding refining and power sectors would absorb most of the increase.

tcarlisle@thenational.ae

Company%20Profile
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Moon Music

Artist: Coldplay

Label: Parlophone/Atlantic

Number of tracks: 10

Rating: 3/5

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Surianah's top five jazz artists

Billie Holliday: for the burn and also the way she told stories.  

Thelonius Monk: for his earnestness.

Duke Ellington: for his edge and spirituality.

Louis Armstrong: his legacy is undeniable. He is considered as one of the most revolutionary and influential musicians.

Terence Blanchard: very political - a lot of jazz musicians are making protest music right now.

The specs

  Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now

Joker: Folie a Deux

Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

Rating: 2/5

How to report a beggar

Abu Dhabi – Call 999 or 8002626 (Aman Service)

Dubai – Call 800243

Sharjah – Call 065632222

Ras Al Khaimah - Call 072053372

Ajman – Call 067401616

Umm Al Quwain – Call 999

Fujairah - Call 092051100 or 092224411

Tree of Hell

Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla

Director: Raed Zeno

Rating: 4/5

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Company%20Profile
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COMPANY%20PROFILE
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Building boom turning to bust as Turkey's economy slows

Deep in a provincial region of northwestern Turkey, it looks like a mirage - hundreds of luxury houses built in neat rows, their pointed towers somewhere between French chateau and Disney castle.

Meant to provide luxurious accommodations for foreign buyers, the houses are however standing empty in what is anything but a fairytale for their investors.

The ambitious development has been hit by regional turmoil as well as the slump in the Turkish construction industry - a key sector - as the country's economy heads towards what could be a hard landing in an intensifying downturn.

After a long period of solid growth, Turkey's economy contracted 1.1 per cent in the third quarter, and many economists expect it will enter into recession this year.

The country has been hit by high inflation and a currency crisis in August. The lira lost 28 per cent of its value against the dollar in 2018 and markets are still unconvinced by the readiness of the government under President Recep Tayyip Erdogan to tackle underlying economic issues.

The villas close to the town centre of Mudurnu in the Bolu region are intended to resemble European architecture and are part of the Sarot Group's Burj Al Babas project.

But the development of 732 villas and a shopping centre - which began in 2014 - is now in limbo as Sarot Group has sought bankruptcy protection.

It is one of hundreds of Turkish companies that have done so as they seek cover from creditors and to restructure their debts.

EA Sports FC 25
The biog

Favourite films: Casablanca and Lawrence of Arabia

Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins

Favourite dish: Grilled fish

Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.

Is it worth it? We put cheesecake frap to the test.

The verdict from the nutritionists is damning. But does a cheesecake frappuccino taste good enough to merit the indulgence?

My advice is to only go there if you have unusually sweet tooth. I like my puddings, but this was a bit much even for me. The first hit is a winner, but it's downhill, slowly, from there. Each sip is a little less satisfying than the last, and maybe it was just all that sugar, but it isn't long before the rush is replaced by a creeping remorse. And half of the thing is still left.

The caramel version is far superior to the blueberry, too. If someone put a full caramel cheesecake through a liquidiser and scooped out the contents, it would probably taste something like this. Blueberry, on the other hand, has more of an artificial taste. It's like someone has tried to invent this drink in a lab, and while early results were promising, they're still in the testing phase. It isn't terrible, but something isn't quite right either.

So if you want an experience, go for a small, and opt for the caramel. But if you want a cheesecake, it's probably more satisfying, and not quite as unhealthy, to just order the real thing.

 

 

In-demand jobs and monthly salaries
  • Technology expert in robotics and automation: Dh20,000 to Dh40,000 
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  • HR leader: Dh40,000 to Dh60,000 
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  • Senior reservoir engineer: Dh40,000 to Dh55,000 
  • Senior drilling engineer: Dh38,000 to Dh46,000 
  • Senior process engineer: Dh28,000 to Dh38,000 
  • Senior maintenance engineer: Dh22,000 to Dh34,000 
  • Field engineer: Dh6,500 to Dh7,500
  • Field supervisor: Dh9,000 to Dh12,000
  • Field operator: Dh5,000 to Dh7,000
COMPANY%20PROFILE
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The specs

Engine: Dual 180kW and 300kW front and rear motors

Power: 480kW

Torque: 850Nm

Transmission: Single-speed automatic

Price: From Dh359,900 ($98,000)

On sale: Now

Petrarch: Everywhere a Wanderer
Christopher Celenza,
Reaktion Books

Jigra
Director: Vasan Bala
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
Rated: 3.5/5
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Five expert hiking tips
    Always check the weather forecast before setting off Make sure you have plenty of water Set off early to avoid sudden weather changes in the afternoon Wear appropriate clothing and footwear Take your litter home with you
The bio

Who inspires you?

I am in awe of the remarkable women in the Arab region, both big and small, pushing boundaries and becoming role models for generations. Emily Nasrallah was a writer, journalist, teacher and women’s rights activist

How do you relax?

Yoga relaxes me and helps me relieve tension, especially now when we’re practically chained to laptops and desks. I enjoy learning more about music and the history of famous music bands and genres.

What is favourite book?

The Perks of Being a Wallflower - I think I've read it more than 7 times

What is your favourite Arabic film?

Hala2 Lawen (Translation: Where Do We Go Now?) by Nadine Labaki

What is favourite English film?

Mamma Mia

Best piece of advice to someone looking for a career at Google?

If you’re interested in a career at Google, deep dive into the different career paths and pinpoint the space you want to join. When you know your space, you’re likely to identify the skills you need to develop.  

 

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COMPANY PROFILE

Company: Bidzi

● Started: 2024

● Founders: Akshay Dosaj and Asif Rashid

● Based: Dubai, UAE

● Industry: M&A

● Funding size: Bootstrapped

● No of employees: Nine

LA LIGA FIXTURES

Friday Celta Vigo v Villarreal (midnight kick-off UAE)

Saturday Sevilla v Real Sociedad (4pm), Atletico Madrid v Athletic Bilbao (7.15pm), Granada v Barcelona (9.30pm), Osasuna v Real Madrid (midnight)

Sunday Levante v Eibar (4pm), Cadiz v Alaves (7.15pm), Elche v Getafe (9.30pm), Real Valladolid v Valencia (midnight)

Monday Huesca v Real Betis (midnight)

COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
ADCC AFC Women’s Champions League Group A fixtures

October 3: v Wuhan Jiangda Women’s FC
October 6: v Hyundai Steel Red Angels Women’s FC
October 9: v Sabah FA