Saudi Arabia could emerge as victor from oil price wars say energy experts

Two pumping stations on Saudi Arabia’s East-West pipeline were hit in the early morning raid. (AFP/File photo)
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Updated 07 May 2020
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Saudi Arabia could emerge as victor from oil price wars say energy experts

  • ‘At least one will most likely emerge from the pandemic stronger, both economically and geopolitically: Saudi Arabia’
  • Recent statements about cuts to the Saudi Arabian budget as a result of falling oil revenues were ‘an important step to wean the population of the Kingdom off an entitlement feeling’

DUBAI: Saudi Arabia will emerge as the victor of the oil price war that sent global crude markets into a spin last month, according to two experts in the energy industry.

Jason Bordoff, professor and founding director of the Center for Global Energy policy at New York’s Columbia University, said: “While 2020 will be remembered as a year of carnage for oil nations, at least one will most likely emerge from the pandemic stronger, both economically and geopolitically: Saudi Arabia.”

Writing in the American publication Foreign Policy, Bordoff said that the Kingdom’s finances can weather the storm from lower oil prices as a result of the drastically reduced demand for oil in economies under pandemic lockdowns, and that it will end up with higher oil revenues and a bigger share of the global market once it stabilizes.

Bordoff’s view was reinforced by Sir Mark Moody-Stuart, former chairman of Royal Dutch Shell and one of the longest-standing directors of Saudi Aramco. In an interview with the Gulf Intelligence energy consultancy, he said that low-cost oil producers such as Saudi Arabia would emerge from the pandemic with increased market share.

“Oil is the only commodity where the lowest-cost producers have contained their production and allowed high-cost producers to benefit. When demand recovers this year or next, we will emerge from it with the lowest-cost producers having increased their market share,” Moody-Stuart said.

Bordfoff said that it would take years for the high-cost American shale industry to recover to pre-pandemic levels of output. “Depending on how long oil demand remains depressed, US oil production is projected to decline from its pre-coronavirus peak of around 13 million barrels per day.

“Shale's heady growth in recent years (with production growing by about 1 million to 1.5 million barrels per day each year) also reflected irrational exuberance in financial markets. Many US companies struggling with uneconomical production only managed to stay afloat with infusions of cheap debt. One quarter of US shale oil production may have been uneconomic even before prices crashed,” he said.

Moody-Stuart said that recent statements about cuts to the Saudi Arabian budget as a result of falling oil revenues were “an important step to wean the population of the Kingdom off an entitlement feeling. It means that everybody is joining in it.”

The former Shell boss said that other big oil companies would follow Shell’s recent decision to cut its dividend for the first time in more than 70 years. But he added that Aramco would stick by its commitment to pay $75 billion of dividends this year.

“When a company looks at its forecasts it looks ahead for one year, so for this year it (the dividend) is fine,” he said.

Bordoff added that Saudi Arabia’s action in cutting oil production in response to the pandemic would improve its global position.

“Saudi Arabia has improved its standing in Washington. Following intense pressure from the White House and powerful senators, the Kingdom’s willingness to oblige by cutting production will reverse some of the damage done when it was blamed for the oil crash after it surged production in March,” he said.

“Only a few weeks ago, the outlook for Saudi Arabia seemed bleak. But looking out a few years, it’s difficult to see the Kingdom in anything other than a strengthened position,” Bordoff said.


Australia plans to recognize Palestinian state within days, Sydney Morning Herald reports

Updated 11 August 2025
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Australia plans to recognize Palestinian state within days, Sydney Morning Herald reports

  • France and Canada last month said it planned to recognize a Palestinian state
  • Britain has said it would follow suit unless Israel addresses the humanitarian crisis in Palestine and reaches a ceasefire

SYDNEY: Australia plans to recognize a Palestinian state as early as Monday following similar moves by France, Britain and Canada, the Sydney Morning Herald reported.
Prime Minister Anthony Albanese could sign off on the move after a regular cabinet meeting on Monday, the SMH reported, citing unidentified sources.
Albanese’s office did not immediately respond to a request seeking comment.
France and Canada last month said it planned to recognize a Palestinian state, while Britain has said it would follow suit unless Israel addresses the humanitarian crisis in Palestine and reaches a ceasefire.
Israel has condemned decisions by countries to support a Palestinian state, saying it will reward Hamas, the militant group that governs Gaza.
Netanyahu told reporters on Sunday that most Israeli citizens were against establishing a Palestinian state as they thought that would bring war and not peace, even as thousands of protesters flooded the streets of Tel Aviv, opposing his plan to escalate the nearly two-year war and seize Gaza City.
“To have European countries and Australia march into that rabbit hole just like that, fall right into it ... this is disappointing and I think it’s actually shameful but it’s not going to change our position,” Netanyahu said.
Albanese has been calling for a two-state solution, with his center-left government supporting Israel’s right to exist within secure borders and Palestinians’ right to their own state.
Treasurer Jim Chalmers last month said it was “a matter of when, not if, Australia recognizes a Palestinian state.”
 


The Russian past of Alaska, where Trump and Putin will meet

Updated 11 August 2025
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The Russian past of Alaska, where Trump and Putin will meet

  • “They’re our next-door neighbors, and you can actually see Russia from land here in Alaska, from an island in Alaska,” Palin said

WASHINGTON: Presidents Donald Trump and Vladimir Putin will hold a high-stakes meeting about the Ukraine war on Friday in Alaska, which the United States bought from Russia more than 150 years ago.
Russian influence still endures in parts of the remote state on the northwest edge of the North American continent, which extends just a few miles from Russia.

When Danish explorer Vitus Bering first sailed through the narrow strait that separates Asia and the Americas in 1728, it was on an expedition for Tsarist Russia.
The discovery of what is now known as the Bering Strait revealed the existence of Alaska to the West — however Indigenous people had been living there for thousands of years.
Bering’s expedition kicked off a century of Russian seal hunting, with the first colony set up on the southern Kodiak island.
In 1799, Tsar Paul I established the Russian-American Company to take advantage of the lucrative fur trade, which often involved clashes with the Indigenous inhabitants.
However the hunters overexploited the seals and sea otters, whose populations collapsed, taking with them the settlers’ economy.
The Russian empire sold the territory to Washington for $7.2 million in 1867.
The purchase of an area more than twice the size of Texas was widely criticized in the US at the time, even dubbed “Seward’s folly” after the deal’s mastermind, secretary of state William Seward.

The Russian Orthodox Church established itself in Alaska after the creation of the Russian-American Company, and remains one of the most significant remaining Russian influences in the state.
More than 35 churches, some with distinctive onion-shaped domes, dot the Alaskan coast, according to an organization dedicated to preserving the buildings.
Alaska’s Orthodox diocese says it is the oldest in North America, and even maintains a seminary on Kodiak island.
A local dialect derived from Russian mixed with Indigenous languages survived for decades in various communities — particularly near the state’s largest city Anchorage — though it has now essentially vanished.
However near the massive glaciers on the southern Kenai peninsula, the Russian language is still being taught.
A small rural school of an Orthodox community known as the “Old Believers” set up in the 1960s teaches Russian to around a hundred students.

One of the most famous statements about the proximity of Alaska and Russia was made in 2008 by Sarah Palin, the state’s then-governor — and the vice presidential pick of Republican candidate John McCain.
“They’re our next-door neighbors, and you can actually see Russia from land here in Alaska, from an island in Alaska,” Palin said.
While it is not possible to see Russia from the Alaskan mainland, two islands facing each other in the Bering Strait are separated by just 2.5 miles (four kilometers).
Russia’s Big Diomede island is just west of the American Little Diomede island, where a few dozen people live.
Further south, two Russians landed on the remote St. Lawrence island — which is a few dozen miles from the Russian coast — in October, 2022 to seek asylum.
They fled just weeks after Putin ordered an unpopular mobilization of citizens to boost his invasion of Ukraine.
For years, the US military has said it regularly intercepts Russian aircraft that venture too close to American airspace in the region.
However Russia is ostensibly not interested in reclaiming the territory it once held, with Putin saying in 2014 that Alaska is “too cold.”

 

 


Trump wants to evict homeless from Washington and send them ‘far from the capital’

Updated 10 August 2025
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Trump wants to evict homeless from Washington and send them ‘far from the capital’

  • White House declined to explain what legal authority Trump would use to evict people from Washington
  • On any given night there are 3,782 single persons experiencing homelessness in D.C., a city of about 700,000 people

WASHINGTON: President Donald Trump pledged on Sunday to evict homeless people from the nation’s capital and jail criminals, despite Washington’s mayor arguing there is no current spike in crime.
“The Homeless have to move out, IMMEDIATELY. We will give you places to stay, but FAR from the Capital. The Criminals, you don’t have to move out. We’re going to put you in jail where you belong,” Trump posted on the Truth Social platform.
The White House declined to explain what legal authority Trump would use to evict people from Washington. The Republican president controls only federal land and buildings in the city. Trump is planning to hold a press conference on Monday to “stop violent crime in Washington, D.C.” It was not clear whether he would announce more details about his eviction plan then.
Trump’s Truth Social post included pictures of tents and D.C. streets with some garbage on them. “I’m going to make our Capital safer and more beautiful than it ever was before,” he said.
According to the Community Partnership, an organization working to reduce homelessness in D.C., on any given night there are 3,782 single persons experiencing homelessness in the city of about 700,000 people.
Most of the homeless individuals are in emergency shelters or transitional housing. About 800 are considered unsheltered or “on the street,” the organization says.
A White House official said on Friday that more federal law enforcement officers were being deployed in the city following a violent attack on a young Trump administration staffer that angered the president.
The Democratic mayor of Washington, D.C., Muriel Bowser, said on Sunday the capital was “not experiencing a crime spike.”
“It is true that we had a terrible spike in crime in 2023, but this is not 2023,” Bowser said on MSNBC’s The Weekend. “We have spent over the last two years driving down violent crime in this city, driving it down to a 30-year low.”
The city’s police department reports that violent crime in the first seven months of 2025 was down by 26 percent in D.C. compared with last year while overall crime was down about 7 percent.
Bowser said Trump is “very aware” of the city’s work with federal law enforcement after meeting with Trump several weeks ago in the Oval Office.
The US Congress has control of D.C.’s budget after the district was established in 1790 with land from neighboring Virginia and Maryland, but resident voters elect a mayor and city council.
For Trump to take over the city, Congress likely would have to pass a law revoking the law that established local elected leadership, which Trump would have to sign. Bowser on Sunday noted the president’s ability to call up the National Guard if he wanted, a tactic the administration used recently in Los Angeles after immigration protests over the objections of local officials.


Moscow strikes kill five in Ukraine, refinery hit in Russia

Updated 10 August 2025
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Moscow strikes kill five in Ukraine, refinery hit in Russia

  • A Russian glide bomb hit a busy bus station in the city of Zaporizhzhia on Sunday, wounding 12 people at once
  • Kyiv is trying to hamper Moscow’s ability to fund the more than three-year war of attrition by attacking its energy facilities

KYIV: A new round of Moscow’s shelling and drone attacks killed five people in Ukraine Sunday, authorities said, while Kyiv hit an oil refinery in Russia’s Saratov region.
There was no reduction in hostilities on the frontline, even as the United States and Russia agreed to hold a summit in a bid to resolve the conflict, which so far does not include Ukraine.
“Three people killed, one wounded in Zaporizhzhia region as a result of Russian shelling,” Ukraine’s national police said, adding that two more civilians died in the highly contested Donetsk region in the east.
A Russian glide bomb hit a busy bus station in the city of Zaporizhzhia in a separate afternoon strike, wounding 12 people at once, the local officials said, adding that a search and rescue operation was still ongoing.
Visuals from the site shared by the authorities showed rescuers pulling people from the rubble in the shattered central bus station building.
Three beachgoers were killed earlier in the Black Sea coastal city of Odesa, after they triggered a mine while swimming in a prohibited area which was mined.
The Ukrainian army claimed its drones had hit a large oil refinery in Russia’s western Saratov region, almost 1,000 kilometers (600 miles) away from the front line.
The Saratov governor, Roman Busargin, only gave a vague comment, saying that “one of the industrial enterprises was damaged” and adding that one person died as a result of the drone attack.
Another woman died in Russia’s region of Belgorod, often under Ukrainian fire due to its proximity to the frontline, the local governor said.
Kyiv is trying to hamper Moscow’s ability to fund the more than three-year war of attrition by attacking its oil and gas facilities, the key sources fueling the state budget.
Ukraine’s military claimed to have taken back the village of Bezsalivka in the Sumy region from the Russian army, which has made significant recent gains.
The focus of the Russian offensive is on eastern Ukraine, where it has stepped up gains in recent months against its less well-equipped opponents.
Presidents Vladimir Putin and Donald Trump will meet in the US state of Alaska this Friday to try to resolve the grinding conflict, despite warnings from Ukraine and Europe that Kyiv must be part of negotiations.


UK police arrested 522 who backed banned pro-Palestine group

Police detain protester during rally challenging UK government’s proscription of “Palestine Action” under anti-terrorism laws.
Updated 10 August 2025
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UK police arrested 522 who backed banned pro-Palestine group

  • The 522 total is thought to be the highest ever recorded at a single protest in the UK capital
  • The force said the average age of those arrested on Saturday was 54, with six teenagers, 97 aged in their 70s and 15 octogenarians

LONDON: London’s police service said Sunday that officers had arrested 522 people the previous day for breaching anti-terror laws by supporting the recently proscribed group Palestine Action.

In an update to its previous arrest tally, the Met said all but one of those 522 arrests took place at a Parliament Square protest and were for displaying placards backing Palestine Action.

The other arrest for the same offense took place at nearby Russell Square as thousands rallied at a Palestine Coalition march demonstrating against Israel’s war in Gaza.

The 522 total is thought to be the highest ever recorded at a single protest in the UK capital.

The Met made 10 further arrests, including six for assaults on officers, though none were seriously injured, it added.

The force said the average age of those arrested on Saturday was 54, with six teenagers, 97 aged in their 70s and 15 octogenarians.

A roughly equal number of men and women were detained.

The government outlawed Palestine Action on July 5, days after it took responsibility for a break-in at an air force base in southern England that caused an estimated £7 million ($9.3 million) of damage to two aircraft.

The group said its activists were responding to Britain’s indirect military support for Israel amid the war in Gaza.

Britain’s interior ministry has insisted that Palestine Action was also suspected of other “serious attacks” that involved “violence, significant injuries and extensive criminal damage.”

In a statement following the latest mass arrests, interior minister Yvette Cooper defended the government’s decision, insisting: “UK national security and public safety must always be our top priority.”

“The assessments are very clear — this is not a non-violent organization,” she added.

But critics, including the United Nations and groups such as Amnesty International and Greenpeace, have condemned its proscription as legal overreach and a threat to free speech.

“If this was happening in another country, the UK government would be voicing grave concerns about freedom of speech and human rights,” Greenpeace UK’s co-executive director Areeba Hamid said Saturday.

She added the government had “now sunk low enough to turn the Met into thought police, direct action into terrorism.”

Police across the UK have made scores of similar arrests since July 5, when being a member of Palestine Action or supporting the group became a criminal offense punishable by up to 14 years in prison.

Police announced this week that the first three people had been charged in the English and Welsh criminal justice system with such backing following their arrests at a July 5 demo.

In its update Sunday, the Met revealed a further 26 case files following other arrests on that day are due to be submitted to prosecutors “imminently” and that more would follow related to later protests.

It believes 30 of those held Saturday had been arrested at previous recent Palestine Action protests.

Eighteen people remained in custody Sunday lunchtime, but were set to be bailed within hours, the Met added.

It noted officers from its counter-terrorism command will now “work to put together the case files required to secure charges against those arrested as part of this operation.”