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OPEC+ members line up to endorse output cut after U.S. coercion claim

  • U.S. says more than one OPEC country coerced into cut
  • Iraq, Kuwait, other OPEC+ members stand by decision
  • Saudi defence minister says decision was purely economic

CAIRO Oct 16 (Reuters) – OPEC+ member states lined up on Sunday to endorse the steep production cut agreed this month after the White House, stepping up a war of words with Saudi Arabia, accused Riyadh of coercing some other nations into supporting the move.

The United States noted on Thursday that the cut would boost Russia’s foreign earnings and suggested it had been engineered for political reasons by Saudi Arabia, which on Sunday denied it was supporting Moscow in its invasion of Ukraine.

Saudi King Salman bin Abdulaziz said the kingdom was working hard to support stability and balance in oil markets, including by establishing and maintaining the agreement of the OPEC+ alliance.

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The kingdom’s defence minister and King Salman’s son, Prince Khalid bin Salman, also said the Oct 5 decision to reduce output by 2 million barrels per day – taken despite oil markets being tight – was unanimous and based on economic factors.

His comments were backed by ministers of several OPEC+ member states including the United Arab Emirates.

The Gulf state’s energy minister Suhail al-Mazrouei wrote on Twitter: “I would like to clarify that the latest OPEC+ decision, which was unanimously approved, was a pure technical decision, with NO political intentions whatsoever.”

His comment followed a statement from Iraq’s state oil marketer SOMO.

“There is complete consensus among OPEC+ countries that the best approach in dealing with the oil market conditions during the current period of uncertainty and lack of clarity is a pre-emptive approach that supports market stability and provides the guidance needed for the future,” SOMO said in a statement.

Kuwait Petroleum Corporation Chief Executive Officer Nawaf Saud al-Sabah also welcomed the decision by OPEC+ – which includes other major producers, notably Russia – and said the country was keen to maintain a balanced oil markets, state news agency KUNA reported.

Oman and Bahrain said in separate statements that OPEC had unanimously agreed on the reduction.

Algeria’s energy minister called the decision “historic” and he and OPEC Secretary General Haitham Al Ghais, visiting Algeria, expressed their full confidence in it, Algeria’s Ennahar TV reported.

Ghais later told a news conference that the organisation targeted a balance between supply and demand rather than a specific price.

Oil inventories in major economies are at lower levels than when OPEC has cut output in the past.

Some analysts have said recent volatility in crude markets could be remedied by a cut that would help attract investors to an underperforming market.

U.S. National Security Council spokesman John Kirby said on Thursday that “more than one” OPEC member had felt coerced by Saudi Arabia into the vote, adding that the cut would also increase Russia’s revenues and blunt the effectiveness of sanctions imposed over its February invasion of Ukraine.

King Salman said in an address to the kingdom’s advisory Shura Council that the country was a mediator of peace and highlighted the crown prince’s initiative to release POWs from Russia last month, state news agency SPA reported.

Khalid bin Salman said on Sunday he was “astonished” by claims his country was “standing with Russia in its war with Ukraine.”

“It is telling that these false accusations did not come from the Ukrainian government,” he wrote on Twitter.

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Reporting by Moataz Mohamed, Yasmin Hussien, Maha El Dahan and Aziz El Yaakoubi; additional reporting by Nayera Abdallah and Ahmed Tolba; Editing by Louise Heavens, Will Dunham and Alexandra Hudson

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OPEC+ to consider oil cut of over than 1 million barrels per day

  • Cuts could include Saudi voluntary reduction
  • Largest cut since pandemic reduction
  • Oil fell due to rising Fed rates, weak economy

DUBAI, Oct 2 (Reuters) – OPEC+ will consider an oil output cut of more than a million barrels per day (bpd) next week, OPEC sources said on Sunday, in what would be the biggest move yet since the COVID-19 pandemic to address oil market weakness.

The meeting will take place on Oct. 5 against the backdrop of falling oil prices and months of severe market volatility which prompted top OPEC+ producer, Saudi Arabia, to say the group could cut production.

OPEC+, which combines OPEC countries and allies such as Russia, has refused to raise output to lower oil prices despite pressure from major consumers, including the United States, to help the global economy.

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Prices have nevertheless fallen sharply in the last month due to fears about the global economy and a rally in the U.S. dollar after the Federal Reserves raised rates.

A significant production cut is poised to anger the United States, which has been putting pressure on Saudi Arabia to continue pumping more to help oil prices soften further and reduce revenues for Russia as the West seeks to punish Moscow for sending troops to Ukraine.

The West accuses Russia of invading Ukraine, but the Kremlin calls it a special military operation.

Saudi Arabia has not condemned Moscow’s actions amid difficult relations with the administration of U.S. President Joe Biden.

Last week, a source familiar with the Russian thinking said Moscow would like to see OPEC+ cutting 1 million bpd or one percent of global supply.

That would be the biggest cut since 2020 when OPEC+ reduced output by a record 10 million bpd as demand crashed due to the COVID pandemic. The group spent the next two years unwinding those record cuts.

On Sunday, the sources said the cut could exceed 1 million bpd. One of the sources suggested cuts could also include a voluntary additional reduction of production by Saudi Arabia.

OPEC+ will meet in person in Vienna for the first time since March 2020.

Analysts and OPEC watchers such as UBS and JP Morgan have suggested in recent days a cut of around 1 million bpd was on the cards and could help arrest the price decline.

“$90 oil is non-negotiable for the OPEC+ leadership, hence they will act to safeguard this price floor,” said Stephen Brennock of oil broker PVM.

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Reporting by Maha El Dahan, Olesya Astakhova and Alex Lawler; Editing by Gareth Jones, Jan Harvey and Raissa Kasolowsky

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Gulf states demand Netflix pull content deemed offensive

Signage at the Netflix booth is seen on the convention floor at Comic-Con International in San Diego, California, U.S., July 21, 2022. REUTERS/Bing Guan/File Photo

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DUBAI, Sept 6 (Reuters) – Gulf Arab states have demanded that U.S. streaming giant Netflix (NFLX.O) remove content deemed offensive to “Islamic and societal values” in the region, Saudi Arabia’s media regulator said on Tuesday.

It did not specify the content, but mentioned that it included content aimed at children. Saudi state-run Al Ekhbariya TV, in a programme discussing the issue, showed blurred out animation clips that appeared to show two girls embracing.

The Riyadh-based General Commission for Audiovisual Media statement said the content violated media regulations in the Gulf Cooperation Council, which groups Saudi Arabia, the United Arab Emirates, Bahrain, Oman, Qatar and Kuwait.

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If Netflix continued to broadcast the content then “necessary legal measures will be taken”, it said, without elaborating.

Netflix did not immediately respond to a Reuters request for comment.

The UAE issued a similarly worded statement regarding Netflix content on Tuesday, saying it would follow up on what the platform broadcasts in coming days and “assess its commitment to broadcasting controls” in the country.

Same-sex relationships are criminalised in many Muslim-majority nations and films featuring such relationships have in the past been banned by regulators in those countries, while others with profanity or illicit drug use are sometimes censored.

The UAE and other Muslim states earlier this year banned Walt Disney-Pixar’s animated feature film “Lightyear” from screening in cinemas because it features characters in a same-sex relationship. read more

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Reporting by Aziz El Yaakoubi in Riyadh and Alexander Cornwell in Dubai; Writing by Ghaida Ghantous; Editing by Rosalba O’Brien

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Gulf Arab summit calls for action, not words from Iran

RIYADH, Dec 14 (Reuters) – A Gulf Arab summit in Saudi Arabia urged Iran on Tuesday to take concrete steps to ease tension while reiterating a call to include the region in talks between global powers and Tehran aimed at salvaging their nuclear agreement.

Saudi Arabia’s crown prince had told the annual gathering of Gulf leaders before the final communique was issued that the nuclear and missile programmes of longstanding adversary Iran should be handled “seriously and effectively”.

Indirect talks between Iran and the United States to revive the 2015 nuclear pact started in April, but stopped in June after the election of hardline President Ebrahim Raisi. After a five-month hiatus, Iran’s negotiating team returned to Vienna with an uncompromising stance.

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“So far the reports show there is some stalling by Iran and we hope this will turn to progress in the near future,” Saudi Foreign Minister Prince Faisal bin Farhan al-Saud told a press conference after the Gulf summit.

He said that while Gulf states prefer to be part of the talks they would be “open to any mechanism” that addresses their concerns, which also include Iran’s regional proxies.

Sunni Muslim Saudi Arabia and Shi’ite Iran are vying for influence in a rivalry that has played out across the region in events such as Yemen’s war and in Lebanon, where Iran-backed Hezbollah’s rising power has frayed Beirut’s Gulf ties. read more

Riyadh and the United Arab Emirates are both engaging with Iran in a bid to contain tensions at a time of deepening Gulf uncertainty over the U.S. role in the region, and as the oil producing states focus on economic growth.

Prince Faisal said the talks had seen no “real change on the ground” but that “we are open, we are willing”.

Iran’s president has said his foreign policy priority would be improving ties with Gulf neighbours.

SOLIDARITY

The Saudi crown prince toured the Gulf in a show of solidarity ahead of the summit, which took place nearly a year after Riyadh put an end to a 3-1/2-year Arab boycott of Qatar.

Saudi Arabia and non-Gulf Egypt have restored diplomatic ties with Doha but the United Arab Emirates and Bahrain have yet to do so, though Abu Dhabi has moved to mend fences.

The four boycotting states had accused Qatar of supporting Islamist militants, a charge Doha denied.

Saudi Arabia and the UAE have shifted away from hawkish foreign policies to a more conciliatory approach as they vie to lure foreign investment, and win over U.S. President Joe Biden.

The UAE has acted faster to improve ties with Iran and Turkey, while also re-engaging with Syria after forging relations with Israel last year.

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Reporting by Yousef Saba and Lisa Barrington; Writing by Ghaida Ghantous; Editing by Clarence Fernandez, William Maclean and Mark Heinrich

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Saudi Arabia’s crown prince sets off on tour of Gulf Arab states

Formula One F1- Saudi Arabian Grand Prix – Jeddah Corniche Circuit, Jeddah, Saudi Arabia – December 5, 2021 Saudi Crown Prince Mohammed bin Salman is seen before the race Pool via REUTERS/Andrej Isakovic

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DUBAI, Dec 6 (Reuters) – Saudi Arabia’s de facto ruler Crown Prince Mohammed bin Salman set off on a tour of fellow Gulf Arab states on Monday ahead of a Gulf summit this month amid crucial talks aimed at salvaging a nuclear pact between Iran and the West.

Prince Mohammed will visit Oman, the United Arab Emirates, Bahrain, Qatar and Kuwait, Saudi state news agency SPA reported. Oman will be the first leg of the tour.

It will be the crown prince’s first trip to Qatar since Riyadh and its Arab allies imposed an embargo on Doha in mid-2017 in a row that was only resolved last January.

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Al Arabiya said the summit of Gulf Arab leaders would be held in the Saudi capital Riyadh in mid-December.

Saudi Arabia and the UAE have engaged with long-time foe Iran in a bid to contain regional tensions as indirect talks between Washington and Tehran to revive the nuclear pact drag.

In the latest round of talks in Vienna last week, Western powers questioned Iran’s determination to salvage the 2015 agreement, which Gulf states saw as flawed for not addressing Tehran’s missiles programme and network of regional proxies.

Then-President Donald Trump withdrew the United States from the pact in 2018 and reimposed U.S. sanctions, prompting Iran to begin violating nuclear restrictions. Tehran denies seeking nuclear weapons.

Prince Mohammed starts his regional tour on the same day that the UAE’s top national security adviser is expected to visit Iran.

Sunni Muslim power Saudi Arabia in April launched direct talks with Shi’ite Iran, with which it is locked in several proxy conflicts in the Middle East. Riyadh has described the discussions, held in Iraq, as largely exploratory.

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Writing by Ghaida Ghantous and Alexander Cornwell; editing by Richard Pullin, Lincoln Feast and Nick Macfie

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Most Gulf bourses slide on fears over COVID-19 variant

Traders wait at the Bahrain Bourse in Manama, Bahrain, November 8, 2020. REUTERS/Hamad I Mohammed/File Photo

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Nov 28 (Reuters) – Most Gulf stock markets fell sharply in early trade on Sunday, with the Saudi index suffering its biggest single-day fall in nearly two years as fears of a potentially vaccine-resistant coronavirus variant rattled investors.

The World Health Organization (WHO) on Friday designated a new COVID-19 variant detected in South Africa as being “of concern” – the fifth variant to be given the designation. read more

Saudi Arabia’s benchmark index (.TASI) retreated by 4.4%, dragged down by a 3.4% fall for Al Rajhi Bank (1120.SE) and a 5.3% decline for Saudi National Bank (1180.SE).

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The kingdom has halted flights from and to Malawi, Zambia, Madagascar, Angola, Seychelles, Mauritius And Comoros Islands, Reuters reported on Sunday, citing the state news agency. read more

Dubai’s main share index (.DFMGI) tumbled 4.8% for its biggest intraday fall since March 2020, with blue-chip developer Emaar Properties (EMAR.DU) losing 7.9%.

Among other losers, budget airline Air Arabia (AIRA.DU) plunged 7.1%.

In Abu Dhabi, the index (.ADI) dropped 2.3%, hit by a 3.1% fall for First Abu Dhabi Bank (FAB.AD), the country’s largest lender, and a 3% drop for telecoms company Etisalat (ETISALAT.AD).

The United Arab Emirates has suspended entry for travellers from South Africa, Namibia, Lesotho, Eswatini, Zimbabwe, Botswana and Mozambique from Nov. 29 owing to concerns about the new variant of the COVID-19 virus, the state news agency reported on Friday. read more

The latest panedmic developments also sent oil prices, a key catalyst for the Gulf’s financial markets, plunging by $10 a barrel on Friday for their largest one-day drop since April 2020. The new variant added to concerns that an oil supply surplus could swell in the first quarter.

The Qatari benchmark (.QSI) declined more than 2% as stocks fell across the board.

On Saturday Qatar Airways said it has banned travellers from South Africa, Zimbabwe and Mozambique because of the spread of a new coronavirus variant.

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Reporting by Ateeq Shariff in Bengaluru
Editing by David Goodman

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Risking China’s anger, Blinken meets representative of Dalai Lama in India

NEW DELHI, July 28 (Reuters) – U.S. Secretary of State Antony Blinken met with a representative of Tibet’s spiritual leader, the Dalai Lama, in New Delhi on Wednesday, a State Department spokesperson said, a move that is likely to provoke anger in China.

Blinken met briefly with Ngodup Dongchung, who serves as a representative of Central Tibetan Administration (CTA), also known as the Tibetan government in exile, the spokesperson said.

Chinese troops seized Tibet in 1950 in what Beijing calls a “peaceful liberation”. In 1959, the Dalai Lama fled into exile in India following a failed uprising against Chinese rule.

The CTA and Tibetan advocacy groups have received a boost in international support in recent months amid rising criticism of China’s human rights record, particularly from the United States.

In November, Lobsang Sangay, the former head of the Tibetan government in exile, visited the White House, the first such visit in six decades.

A month later, the U.S. Congress passed the Tibet Policy and Support Act, which calls for the right of Tibetans to choose the successor to the Dalai Lama, and the establishment of a U.S. consulate in the Tibetan capital Lhasa.

Blinken’s meeting with Dongchung is the most significant contact with the Tibetan leadership since the Dalai Lama met then-president Barack Obama in Washington in 2016.

China’s foreign ministry did not immediately respond to a request for comment. Beijing says Tibet is a part of China and has labelled the Dalai Lama a dangerous separatist.

U.S. Secretary of State Antony Blinken and U.S. Ambassador to India Atul Keshap deliver remarks to civil society organization representatives in a meeting room at the Leela Palace Hotel in New Delhi, India, July 28, 2021. REUTERS/Jonathan Ernst

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INDIA TIES

In his first visit to India since joining U.S. President Joe Biden’s administration, Blinken also met his Indian counterpart, Foreign Minister Subrahmanyam Jaishankar, and other officials on Wednesday before heading to see Prime Minister Narendra Modi.

The two sides are expected to discuss supplies of COVID-19 vaccines, the security situation in Afghanistan,and India’s human rights record. read more

Speaking to a group of civil society leaders at a New Delhi hotel, Blinken said that the relationship between the United States and India was “one of the most important in the world”.

“The Indian people and the American people believe in human dignity and equality of opportunity, the rule of law, fundamental freedoms including freedom of religion and belief . . . these are the fundamental tenets of democracies like ours,” he said.

“And of course, both of our democracies are works in progress. As friends we talk about that.”

Indian foreign ministry sources said ahead of Blinken’s visit that the country was proud of its pluralistic traditions and happy to discuss the issue with him.

Modi’s government has faced allegations of suppressing dissent, pursuing divisive policies to appeal to its Hindu nationalist base and alienating Muslims, the country’s biggest minority. read more

Blinken arrived in India on Tuesday night and leaves for Kuwait later on Wednesday.

Reporting by Simon Lewis and Sanjeev Miglani in New Delhi
Writing by Krishna N. Das and Alasdair Pal
Editing by Raju Gopalakrishnan

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