Commitment by Mogadishu’s largest single lender is latest in series of deals to forgive ‘unsustainable’ $4.5bn debt
Somalia has announced that more than $1.1bn (£860m) of outstanding loans will be cancelled by the US, a sum representing about a quarter of the country’s remaining debt.
The announcement is the latest in a series of agreements in which Somalia’s creditors have committed to forgiving its debt obligations.
Continue reading...Diesel up by more than 8p to 163p in September and petrol by 4.5p to 152p amid global oil production cuts
The price of diesel in the UK has shot up at one of its fastest rates in more than 20 years – while retailers have been accused of charging “unjustifiably” high petrol prices.
Diesel prices rose by more than 8p a litre to 163p in September, the fifth biggest monthly rise since 2000, and on top of another 8p rise the previous month, the RAC said. Petrol prices rose by 4.5p a litre to 152p, the fourth consecutive monthly increase.
Continue reading...Price gained more than 2% on Monday morning to touch one-month high of $78.73
The price of Brent crude has risen after Saudi Arabia agreed to cut its output to firm up oil prices after a weekend of tense talks.
Saudi ministers agreed to cut 1m barrels per day (bpd) from its output from next month at a meeting of the Opec+ group of oil-producing nations in Vienna.
Continue reading...Spurred by Lula’s election, the three countries, home to half of all tropical forests, will pledge stronger conservation efforts
The big three tropical rainforest nations – Brazil, Indonesia and the Democratic Republic of the Congo – are in talks to form a strategic alliance to coordinate on their conservation, nicknamed an “Opec for rainforests”, the Guardian understands.
The election of Luiz Inácio Lula da Silva, known as Lula, has been followed by a flurry of activity to avoid the destruction of the Amazon, which scientists have warned is dangerously close to tipping point after years of deforestation under its far-right leader, Jair Bolsonaro.
Continue reading...President announces release of 15m barrels of oil from strategic reserve as he fights to keep gas prices in check before midterms
Joe Biden has called on oil companies to pass on their massive profits to consumers as he announced the release of 15m barrels of oil from the US strategic petroleum reserve.
Biden is fighting to keep gas prices in check ahead of November’s midterms. He blamed Vladimir Putin’s invasion of Ukraine for the global spike in oil prices and said his administration was doing all it could to keep prices in check.
Continue reading...As the row between the US president and the Gulf kingdom over increasing oil production escalates, the UK arms industry giant may have to choose which of its two lucrative customers to side with
The UK has long had an awkward relationship with Saudi Arabia, but that unholy alliance now faces a stern test. After Joe Biden reacted angrily to the Opec+ decision to cut oil production, workers at BAE Systems’ fighter jet factory at Warton, on the banks of the Ribble in Lancashire, will have an eye on the fallout from the oil cartel’s decision.
The US president had hoped to persuade the world’s largest oil producer to ramp up production in order to lower oil prices, which have fed into surging inflation and fears over a global recession. Biden had been cultivating relations with Saudi Arabia’s de facto ruler, Mohammed bin Salman, illustrated by a fist bump in Jeddah in July. But despite all that, Prince Mohammed defied Biden, with Opec+ opting for a cut in output, a move that was seen as siding with fellow cartel member Russia, helping prop up its arms revenues.
Continue reading...Cuts by world’s biggest petrol producers will work against other governments’ efforts to tame inflation by releasing fuel stocks
Australian motorists could be hit by higher petrol prices as the world’s largest oil exporting nations cut production, analysts say.
The Australian government reinstated the full fuel excise tax in September after the Morrison Coalition government introduced a temporary, six-month cut to lower the cost of fuel at a time of rising inflation.
Continue reading...Members of Congress raise prospect of one-year arms sales ban unless kingdom reverses Opec+ decision to cut output
Democrats in the US Congress have issued a fresh ultimatum to Saudi Arabia, giving the kingdom weeks to reverse an Opec+ decision to roll back oil production or face a potential one-year freeze on all arms sales.
The threat came as Joe Biden reiterated his pledge to take action over Riyadh’s decision last week to cut oil output by 2m barrels a day, which Democrats have said would help “fuel Vladimir Putin’s war machine” and hurt American consumers at the petrol pump.
Continue reading...Reactions in Washington to slashing oil supply have not concerned Mohammed bin Salman; nor have the optics of indirectly boosting Putin’s war
Mohammed bin Salman had seen it coming. The groundswell of anger in Washington was clear and building since he helped lead an Opec+ decision to cut the world’s oil supply last week.
But for the first time in the modern era of ties between the US and Saudi Arabia, there was no rush to placate hard feelings, or gloss over a rift. This was the birth of a new realpolitik, where nascent Saudi nationalism paid no heed to a historical ally and instead aligned itself to what Riyadh literally sees as a new world order.
Continue reading...Moves by Opec+ to reduce production seen as siding with Putin over the US just as midterms loom
Joe Biden said there “will be consequences” for Saudi Arabia after its decision last week to side with Vladimir Putin and cut oil production.
“There’s going to be some consequences for what they’ve done, with Russia,” the US president said in an interview on CNN. “I’m not going to get into what I’d consider and what I have in mind. But there will be – there will be consequences.”
Continue reading...Janet Yellen’s comments come as figures show business activity declining across most UK regions
The world’s biggest oil-producing nations cutting production at a time of soaring energy costs is “unhelpful and unwise” for global economic growth, the US Treasury secretary has warned, amid intense pressure from sky-high inflation.
Ahead of meetings hosted by the International Monetary Fund in Washington this week, Janet Yellen said the move by Opec+ – the oil production cartel led by Saudi Arabia, plus Russia – risked undermining the world economy.
Continue reading...Three lawmakers come out with bill that essentially declares Saudi Arabia is no longer an ally of Washington
A Democratic senator has joined in on the calls to punish Saudi Arabia for backing the Opec+ cut to global oil production:
Meanwhile, John Kennedy, the Republican senator who two years ago proposed a similar measure to retaliate against Saudi Arabia for not cutting production even as global demand was crashing – thereby driving prices below the cost of production for American oil firms – today blames Biden for the Opec+ cut:
Continue reading...Senior figures see decision as a slight on the US and a sign that the oil producers club is aligning with Russia
The Biden administration and its supporters have reacted angrily to the Opec+ decision to cut oil production, seeing it as a rebuff to the US president’s efforts to improve relations with Saudi Arabia.
The White House made clear that it viewed the decision by the oil production cartel, in which the plus sign represents the inclusion of Russia, to reduce daily production by 2m barrels, as a geopolitical move, and a slight to Biden who is seeking to cut Russian revenues and keep the petrol price down before November’s congressional elections.
Continue reading...Cartel curbs production by 2m barrels a day despite strong US pressure, further squeezing supplies
The Opec oil cartel and its allies have agreed to a bigger than expected cut in oil production targets despite significant pressure from the US.
The Opec+ group of oil-producing nations signed up to a cut in output of 2m barrels a day, surpassing predictions earlier in the week of cuts of 1m to 1.5m barrels, squeezing supplies in a tight market.
Continue reading...Oil markets top of the agenda for US president who receives subdued welcome three years after Jamal Khashoggi comments
Three years after Joe Biden vowed to make Saudi Arabia a pariah state over the assassination of a prominent dissident, the US president greeted Crown Prince Mohammed bin Salman with a fist bump as his administration attempts to reset relations and stabilise global oil markets.
Donald Trump was personally welcomed to the conservative Gulf kingdom on his first presidential visit by King Salman. Biden, however, was met on the tarmac on Friday evening by the governor of Mecca and the Saudi ambassador to the US in a subdued ceremony. He then travelled to the city’s al-Salam palace, where he held talks with the 86-year-old king and his powerful heir, Prince Mohammed, before a working meeting.
Continue reading...Italy’s PM Mario Draghi suggests big consumers club together to limit how much is paid and raises idea of EU gas price cap
Energy prices are skyrocketing as the world confronts the economic ramifications of Russia’s invasion of Ukraine, supply chain bottlenecks and the lingering effects of Covid-19 lockdowns. But Italy’s prime minister, Mario Draghi, has a plan.
The celebrated former European Central Bank president recently broached the idea of creating a “cartel” of oil consumers at a meeting with Joe Biden. Just as the biggest oil-producing nations club together through Opec to agree annual oil production quotas, Draghi has suggested big energy consumers join forces to increase their bargaining power.
Continue reading...A report from the International Energy Agency makes clear that viable alternatives are limited
As Boris Johnson flew to the Gulf this week to ask for more oil to replace supplies from Russia, he was accused by the Labour leader, Keir Starmer, of “going cap in hand from dictator to dictator”.
At the same time, a report produced by the International Energy Agency (IEA) underlined just how limited the options are for any economy seeking to replace Russian crude and other oil products.
Continue reading...The coordinated decision, only the fourth in the International Energy Agency’s history, comes as Russia continues Kyiv siege
The United States and 30 countries have agreed to release 60m barrels of oil from their strategic reserves to stabilise global energy markets, the US Department of Energy said on Tuesday, as oil prices surged to a seven-year high.
The move, ahead of Joe Biden’s State of the Union address to Congress, failed to calm fears about supply disruption from the Ukraine crisis and sanctions against Russia. US stock markets fell sharply even after the news.
Continue reading...Iraqi minister and International Energy Agency chief urge oil producing countries to move away from fossil fuel dependency
The finance minister of Iraq, one of the founding members of the global oil cartel Opec, has made an unprecedented call to fellow oil producers to move away from fossil fuel dependency and into renewable energy, ahead of a key Opec meeting.
Ali Allawi, the deputy prime minister and finance minister of Iraq, has written in the Guardian to urge oil producers to pursue “an economic renewal focused on environmentally sound policies and technologies” that would include solar power and potentially nuclear reactors, and reduce their dependency on fossil fuel exports.
Continue reading...Decline in exports from Taiwan combines with port closures in China and Japan to hinder growth
A recovery in global trade during the summer is beginning to wane, according to some early warning signs pointing to the negative effects of widespread Covid-19 outbreaks in the manufacturing centres of east Asia.
A dramatic decline in exports from Taiwan, which makes many of the computer chips used in cars and mobile phones, has combined with temporary port closures and lockdowns in Australia, China and Japan to cut the level of global trade.
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