OPEC Plus extend production cuts

Saudi Arabia and seven other OPEC Plus countries have decided on Thursday to extend their oil production cuts for another three months, until the end of March 2025.

Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, which previously announced additional voluntary adjustments in April 2023 and November 2023, held a virtual meeting on Thursday on the sideline of the 38th OPEC and non-OPEC Ministerial Meeting (ONOMM).

These countries will extend their additional voluntary adjustments of 2.2 million barrels per day, that were announced in November 2023, until the end of March 2025 and then the 2.2 million barrels per day adjustments will be gradually phased out on a monthly basis until the end of September 2026 to support market stability. This monthly increase can be paused or reversed subject to market conditions," OPEC Plus said in a statement carried by Saudi Press Agency.

The virtual meeting was held to reinforce the precautionary efforts of OPEC Plus countries, aiming to support the stability and balance of oil markets. These countries decided, in addition to the latest decisions from the 38th ONOMM, to extend the additional voluntary adjustments of 1.65 million barrels per day that were announced in April 2023, until the end of December 2026.

"In the spirit of transparency and collaboration, the meeting welcomed the pledges made by the overproducing countries to achieve full conformity and resubmit their updated compensation schedule to the OPEC Secretariat for the overproduced volumes since Jan 2024 before the end of December 2024 as agreed in the 52nd Meeting of the Joint Ministerial Monitoring Committee. The compensation period will be extended until the end of June 2026," the statement said.

  

Refusal of Spain to handle US munition

Outgoing Federal Maritime Commissioner Carl Bentzel told Seatrade Maritime News that in FMC meeting debate and vote ended in agreement that there should be an investigation into whether Spain’s reticence to handle US cargo involved violations of international agreements.

Bentzel confirmed that Spanish authorities had denied permission to dock in Spain to the Maersk Denver and the Maersk Seletar, which left New York on October 31 and November 04, respectively. The Spanish authorities suspected the vessels were carrying arms for Israel’s military.

On November 07, a Spanish foreign ministry spokesman confirmed that the vessels would not be allowed to call at Maersk’s southern Spanish hub at Algeciras.

Spanish politician, Enrique Santiago warned at the time that allowing these Maersk vessels to dock could violate Spain’s penal code, which prohibits the transit of military material that could exacerbate conflicts.

FMC discussions have concluded that Spanish authorities may be in violation of the Foreign Shipping Practices Act and/or Section 19 of the Merchant Marine Act, which looks at trade remedies.

“The FMC will initiate an investigation to see if they - the Spanish authorities - are in violation of these acts,” said Bentzel, adding that a formal announcement of the investigation is expected imminently.

Maersk operates around 20 vessels under the US Voluntary Intermodal Sealift authority, having acquired the lucrative contracts when the Danish carrier bought the major US container carrier Sea-Land in 1999.

Bentzel pointed out that these contracts can be for the carriage of all sorts of cargo, not just weapons, “including humanitarian aid, in support of the Gazan population."

It is not clear what freight was on board these ships, or whether other cargo destined for Mediterranean or other destinations was affected.

Spanish authorities have announced a ban on vessels carrying arms for Israel from its ports. 

A report from the Palestinian Youth Movement (PYM)’s Mask Off Maersk campaign, published on November 04 said it reviewed 2,110 US shipments on Maersk vessels, between September 2023 and September 2024, listed as shipped on behalf of Israel’s Ministry of Defense (IMOD), 827 of which were for armoured vehicles, tactical vehicles, weapons systems, or parts.

The report lists other hardware shipments totalling close to US$ one billion worth of military hardware and ammunition.

“Almost all of the military goods shipments examined (2104/2110) departed from the Port of Elizabeth, NJ, with the remainder (6/2110) departing from the Port of Houston, TX and while not all explicitly state that the destination country was Israel, the receiving agent is listed as the Government of Israel’s Ministry of Defense, such that it can be assumed they were ultimately delivered to Israel for military purposes. Approximately half (1238/2110) of these shipments transited through the Port of Algeciras, Spain,” reported PYM.

 

 

China imposes sanctions on US companies over weapons sales to Taiwan

Reportedly, China has targeted small to midsized American drone manufacturers and service providers in its sixth round of sanctions on US defence companies this year. Beijing has slapped sanctions on 13 US defence companies and six industry executives, the Chinese foreign ministry said on Thursday.

Among them are Kratos Unmanned Aerial Systems, developer of the low-cost XQ-58 Valkyrie combat drone, and Teledyne Brown Engineering, a defence solution subsidiary of industrial conglomerate Teledyne Technologies.

Beijing also imposed sanctions on Barbara Borgonovi and Gerard Hueber, president and vice-president of naval power at Raytheon, a major US defence company previously sanctioned by Beijing.

The list also included drone technology start-ups Firestorm Labs, Neros Technologies and HavocAI.

Lin Jian, a ministry spokesman, said the sanctions were a countermeasure for the “repeated announcement of arms sales to Taiwan”, which had seriously violated the one-China policy.

“We urge the United States to clearly recognize the serious danger that separatist acts of Taiwan independence pose to peace and security across the Taiwan Strait … and to stop sending wrong signals to Taiwan separatist forces,” he said.

From Thursday, the sanctioned entities’ assets in China will be frozen and they will be forbidden from any cooperation or transactions with Chinese organizations and individuals.

The sanctioned executives will also be prohibited from entering the country, including Hong Kong and Macau.

As cross-strait tensions have risen, Taiwan has increased its defence budget as well as its arms procurement from the United States. Unmanned platforms are believed to be a key asymmetric weapon that could help defend Taiwan in the event of a conflict with mainland China.

Beijing considers Taiwan to be part of China’s territory that must be reunified, by force if necessary, and is opposed to any official ties between the island and its diplomatic partners.

The United States, like most countries, does not consider Taiwan an independent country, but is committed to arming the self-ruled island and is opposed to any change in the status quo.

Song Zhongping, a military commentator and former People’s Liberation Army instructor, said Beijing had to take countermeasures as “drones bring a relatively bigger threat to mainland China”.

“These companies are related to drones and datalink technologies while their [products and services] are interrelated … so to sanction, you cannot just sanction one,” he said.

“That’s why the scope of sanctions is larger this time.”

Beijing has previously sanctioned US defence contractors including the missile and AI divisions of Lockheed Martin. In an earlier round of sanctions, it also targeted Anduril Industries, which has sold its multi-mission aerial vehicle Altius 600M-V to Taiwan.

The announcement came on the same day that Taiwanese leader William Lai Ching-te transited through Guam, a US territory and home to a key military base, after a stop in Hawaii this week.

Lai had a call with US House Speaker Mike Johnson on Wednesday, and called for collaboration during a speech at the Guam governor’s residence on Thursday, according to Taipei Times.

The US approved the latest arms sales deal with Taiwan – involving about US$385 million – last month.

Taiwan also signed contracts with the US to buy nearly 1,000 killer drones in October, valued at a total of NT$5.27 billion (US$162.4 million).

 

 

 

 

 

MBS Announces Red Sea Sustainability Strategy

Saudi Crown Prince and Prime Minister Mohammed bin Salman unveiled on Wednesday the National Red Sea Sustainability Strategy. This initiative aims to protect the Red Sea, empower local communities, and transition to a blue economy, aligning with Saudi Vision 2030 and the recently announced national priorities for research, development, and innovation (RDI), particularly in the areas of sustainable environment and essential needs.

Speaking on the occasion, the Crown Prince emphasized Saudi Arabia’s efforts to unlock its vast economic, geographical and cultural potential while championing sustainability and environmental conservation.

He described the strategy as pivotal in establishing the blue economy as a core component of the Kingdom’s diversified economy.

“The Kingdom aspires for the Red Sea region to become a global reference for leading blue economy activities and reaffirms its commitment to a sustainable future for the Red Sea,” he said, calling for collective efforts to safeguard the Red Sea coast and the communities that rely on it.

The Red Sea, covering 186,000 square kilometers with a coastline stretching 1,800 kilometers, is one of the world’s most bio-diverse regions. It is home to the fourth-largest barrier reef system, 6.2% of global coral reefs, and hundreds of islands.

The strategy outlines a comprehensive framework to preserve and regenerate these natural treasures while ensuring their enjoyment and sustainability for future generations. It also demonstrates how protecting the environment can unlock the economic potential of the region and initiate the transition to a blue economy.

This transition will create investment opportunities in various marine sectors such as ecotourism, fisheries, renewable energy, water desalination, shipping, and industry.

A key component of the strategy is its ambitious vision for 2030. It aims to expand marine and coastal protected areas from 3% to 30%, increase the contribution of renewable energy to 50% of the energy mix, and create thousands of new jobs linked to blue economy activities.

Furthermore, it seeks to safeguard Saudi Arabia’s substantial investments in coastal tourism, which are expected to make significant contributions to the national GDP.

The strategy is built around five main objectives: Environmental Sustainability, Economic Development, Social Development, Safety and Security, and Governance and Collaboration. Within this framework, 48 targeted initiatives have been developed to support the Kingdom’s aspirations for the blue economy.

United States godfathering wars in Middle East

There are ample reasons to suspect that the recent seizure of Aleppo in Syria by terrorist mercenaries was orchestrated by United States through its proxies.

One has all the reasons to believe, United States that has been godfathering genocide in Gaza by Israel, green-lighted Israel’s attacks on Lebanon. This gave Israel a free hand to set the stage for "new Middle East," mirroring plans America had envisioned at the turn of the 21st century.

The initial US strategy (Plan A) relied on the Israel to weaken the resistance movement in Lebanon. Following that, Israeli forces occupied the Golan Heights and launch an attack on Syria, with takfiri mercenaries activated in northwestern Syria to ultimately overthrow the government.

It is anticipated that these terrorists would then move into Iraq, toppling the Hashd resistance movement to deal a blow to the Axis of Resistance.

After all, this was Netanyahu’s plan, he had outlined in the UN with green and black maps. However, this plan failed when the Israel was forced to seek a ceasefire— indicating a major strategic defeat for "Israel Two" project at the hands of the resistance movement of Lebanon.

As a result, Plan B was put into motion, sidelining the failing Israeli military efforts and shifting focus to weaken the resistance movement politically, aiming to achieve what Israel could not through war.

The US Special Forces commander Jasper Jeffers arrived in Beirut to monitor the ceasefire, while special envoy Amos Hochstein worked on tasking the Lebanese Army with disarming Hezbollah.

Experts say, the US believes that defeating the resistance movement in Lebanon is difficult without weakening Syria, a crucial hub in the Axis of Resistance. The targeting of Syria is proof of the central logistical role it plays for all parties to the Axis of Resistance. It is believed that for months the US has been training the mercenaries, continuing the legacy of Operation Timber Sycamore activated in the last decade.

By leveraging takfiri groups, the US aims at reigniting Shia-Sunni rift in the Muslim world, a strategy reminiscent of its tactics during the "Arab Spring”.

The goal then and now is to use sectarian divisions to undermine the Axis of Resistance, with ISIS and other takfiri groups like Al-Qaeda and Hayat Tahrir al-Sham seen as prime tools for this mission.

The intensity of Western aggression in the current phase highlights the real threat posed by the Axis of Resistance to the imperialist project in West Asia, following the events of October 07, 2024.

This is evident in the unity and the ability of the front to weaken Netanyahu regime, which is now facing internal disintegration on every metric.

Just as the resistance prevented the spread of terrorism in the past decade and ensured Syria's survival, its success in absorbing the initial shock of Aleppo's capture is even more crucial today. The Axis of Resistance will not allow Syria to fall and will recapture all areas seized by the terrorists in due course.

 

Ahsan Iqbal visits Pakistan Stock Exchange

Pakistan Stock Exchange (PSX) held a Gong Ceremony to formally welcome Ahsan Iqbal, Federal Minister for Planning, Development, and Special Initiatives. The gong was struck by the Minister to open the trading day.

Present on the occasion were PSX Chairperson Dr. Shamshad Akhtar, MD & CEO of the Exchange Farrukh Sabzwari, PSX Board Members, PSX Management, senior bankers, members of the capital market fraternity, key stakeholders, and distinguished guests.

Dr. Shamshad Akhtar welcomed the distinguished guests, stating, “Ahsan Iqbal has been a voice for developing countries at the United Nations,” and praised his contributions to global and national economic progress. She highlighted PSX’s remarkable performance, noting the crossing of the 100,000-point mark last week as a testament to Pakistan’s potential.

Ahsan Iqbal congratulated the PSX Board and Management. “Crossing the 100,000 mark in the KSE-100 Index showcases Pakistan's potential to the world. It is a moment of pride that highlights Pakistan’s economic resilience,” he said.

He emphasized that the government's economic policies have steered the country towards stability. "Inflation has dropped from 38% to below 5% in two years, and the stock market has soared from 30,000 to 100,000 points," he stated.

Prominent representatives from brokerage houses, asset management companies, and senior bankers attended the ceremony, which also served to recognize the collective efforts of all stakeholders in achieving this significant milestone.

Saudi-French Investment Forum begins in Riyadh today

“Invest in Saudi Arabia" will host the Saudi-French Investment Forum in Riyadh on Tuesday. The forum, under the slogan "Saudi Vision 2030 - France's Plan 2030: Mutual Investment across Visions", is being held on the occasion of the state visit of French President Emmanuel Macron to Saudi Arabia, the Saudi Press Agency reports.

The forum will include dialogue sessions bringing together Saudi and French ministers; senior executives, and prominent business leaders from both countries. They will discuss partnership opportunities between the two countries, long-term cooperation, innovation, and mutual growth in vital sectors.

The speakers will also address topics of critical importance to the future of both countries, including leveraging digital transformation, advancing green energy initiatives, and enhancing cultural exchange.

The forum is an extension of the remarkable achievements made in investment relations between the Kingdom and France, as France is the largest source of foreign direct investment (FDI) flows to the Kingdom among the G20 countries. The FDI flows from France to Saudi Arabia amounted to more than SR11.2 billion in 2023.

The French companies obtained 503 investment licenses in the Kingdom and these included 117 licenses issued during the year 2024, of which 33 companies have regional headquarters in the Kingdom