OPEC revises down global oil demand growth forecasts for 2024, 2025
OPEC revises down global oil demand growth forecasts for 2024, 2025/node/2579018/business-economy
OPEC revises down global oil demand growth forecasts for 2024, 2025
The revision, announced on Tuesday, underscores weaker demand expectations for key regions such as China, India, and other parts of the world.
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Updated 27 min 57 sec ago
Reuters
OPEC revises down global oil demand growth forecasts for 2024, 2025
Updated 27 min 57 sec ago
Reuters
LONDON: The Organization of the Petroleum Exporting Countries has again downgraded its global oil demand growth projections for both 2024 and 2025, marking the fourth consecutive reduction.
The revision, announced on Tuesday, underscores weaker demand expectations for key regions such as China, India, and other parts of the world.
The updated forecast highlights the ongoing challenges faced by OPEC+, the broader alliance that includes OPEC members and partners like Russia. Earlier this month, OPEC+ delayed plans to increase oil output starting in December, citing concerns over falling oil prices.
In its latest monthly report, OPEC revised its 2024 global oil demand growth estimate to 1.82 million barrels per day, down from 1.93 million bpd forecast last month. This marks the first revision to the outlook since it was initially set in July 2023.
China was the primary driver of the downward revision. OPEC reduced its forecast for Chinese oil demand growth to 450,000 bpd, down from 580,000 bpd, noting that diesel consumption in September dropped year on year for the seventh consecutive month. OPEC attributed this decline to a slowdown in construction and weak manufacturing activity, as well as the rising use of LNG-fueled trucks in China.
The weaker outlook weighed on oil prices, with Brent crude trading below $73 per barrel following the release of the report.
The demand outlook for 2024 remains uncertain, with significant differences among forecasters regarding the strength of global demand growth, particularly concerning China’s recovery and the pace at which the world transitions to cleaner fuels.
In addition to the 2024 revision, OPEC also lowered its forecast for global oil demand growth in 2025 to 1.54 million bpd, down from the previous estimate of 1.64 million bpd.
UN climate chief urges aggressive action as emissions hit GDP
UN official warned that worsening climate impacts will ‘put inflation on steroids’ unless every country takes bolder climate action
Simon Stiell called on governments to leave COP29 with a clear global climate finance plan
Updated 8 min 38 sec ago
Nirmal Narayanan
RIYADH: The global climate crisis is rapidly evolving into an economic threat, with the impact of emissions reducing the gross domestic product of several countries by up to 5 percent, a UN official said.
Speaking at the high-level segment for heads of state and government at the COP29 in Baku, Simon Stiell, executive secretary of the UN Framework Convention on Climate Change, emphasized the urgent need for more aggressive climate actions to address economic challenges, including rising inflation.
“We used to talk about climate action as being mostly about saving future generations. But there has been a seismic shift in the global climate crisis, as the climate crisis is fast becoming an economy killer,” said Stiell.
He added, “In this political cycle, climate impacts are curving up to 5 percent off GDP in many countries. The climate crisis is a cost-of-living crisis, as climate disasters are driving up costs for households and businesses.”
Stiell’s comments came shortly after a report by finance consultancy Oxera, which revealed that climate-related extreme weather events have cost the global economy more than $2 trillion over the past decade, with the US being the most affected.
The UN official warned that worsening climate impacts will “put inflation on steroids” unless every country takes bolder climate action.
Stiell urged the world to learn from the COVID-19 pandemic, highlighting the economic suffering caused by slow and ineffective collective action on supply chain issues.
Describing climate finance as “global inflation insurance,” he warned that failing to address the economic toll of climate change would lead to disaster.
“Letting this issue languish halfway down cabinet agendas is a recipe for disaster,” he said.
However, Stiell remained optimistic, asserting that effective climate action could save economies and create new economic opportunities. He pointed to the growth of renewable energy as a potential driver of stronger financial states for nations.
“This isn’t just about saving your economies and people,” he said. “Bolder climate action can drive economic opportunity. Cheap, clean energy can be the bedrock of your economies. It means more jobs, growth, less pollution choking cities, healthier citizens, and stronger businesses.”
Stiell called on governments to leave COP29 with a clear global climate finance plan and urged international cooperation as the key to combating global warming and ensuring humanity’s survival.
“We need your direct engagement on new national climate targets and plans — NDCs — so that all of you can benefit from the boom in clean energy and climate resilience,” said Stiell.
He added: “These are not easy times, but despair is not a strategy, nor is it warranted. Our process is strong, and it will endure. After all, international cooperation is the only way humanity can survive global warming.”
Jordan’s inflation rises 1.56% as key goods and services drive up costs
Updated 12 November 2024
Nadin Hassan
RIYADH: Jordan’s Consumer Price Index surged 1.56 percent from the beginning of the year through October to reach 110.58 points compared to 108.88 during the same period in 2023.
Higher prices of specific goods and services largely drove this rise. Personal items saw the largest increase, up 11.6 percent, followed by water and sanitation services, which rose by 7.34 percent, according to Petra news agency.
Other significant contributors included union dues, increasing by 5.86 percent, rental costs by 3.86 percent, and tobacco products by 3.53 percent.
For the month of October alone, the consumer price index reached 110.61 points, marking a 0.76 percent increase from the same month of 2023
The monthly rise was influenced by a hike in prices of personal items by 21.38 percent, an increase of water and sanitation services by 7.34 percent, a rise in tobacco prices of 6.77 percent, and food seasonings and enhancers up 4.82 percent.
These increases were partially offset by declines in categories such as fruits and nuts, down by 6.92 percent; vegetables and pulses, down by 6.31 percent; and furniture and carpets, down by 3.04 percent, as well as fuel and lighting, down by 2.74 percent.
The CPI remained stable from September to October. Minor price drops were recognized in several categories, including meat and poultry, which fell by 1.81 percent; fruits and nuts, down 1.24 percent; and culture and entertainment, which declined by 0.95 percent. Transportation costs decreased by 0.72 percent, while fuel and lighting saw a reduction of 0.65 percent.
In parallel, Jordan’s industrial production index recorded a cumulative increase of 0.48 percent through September, reaching 87.63 points compared to 87.22 points during the same period last year.
This rise was attributed to a robust performance in the mining sector, which surged by 8.34 percent, and electricity production, which increased by 5.41 percent. However, manufacturing output saw a slight decrease of 0.28 percent.
For September alone, the IPI rose 3.41 percent year-on-year to reach 89.83 points, supported by growth in manufacturing, up 3.35 percent, mining, up 7.46 percent, and electricity production, up 0.71 percent.
However, the index dropped by 1.17 percent from August to September, primarily due to a 14.63 percent decrease in electricity output and a 4.47 percent decline in mining, while manufacturing remained stable with a minor 0.01 percent increase.
These economic indicators reflect ongoing inflationary pressures on Jordan’s consumer sector alongside moderate growth in industrial output, underscoring the mixed economic conditions influenced by domestic and global factors.
COP29: World leaders urged to close $359bn adaptation finance gap by UN Secretary-General
Updated 12 November 2024
Nadin Hassan
RIYADH: International leaders have been urged by the UN Secretary-General to bridge the $359 billion adaptation finance gap as climate impacts intensify, threatening global stability and vulnerable communities.
During the welcoming session at COP29 Antonio Guterres expressed the urgent need to close the growing gulf in climate adaptation funding, which could reach $359 billion annually by 2030.
“You must do more to protect your people from the ravages of the climate crisis. The most vulnerable are being abandoned to climate extremes. The gap between adaptation needs and finance could reach up to $359 billion a year by 2030,” Guterres said.
He added: “These missing dollars are not abstractions on a balance sheet: they are lives taken, harvests lost, and development denied. Now more than ever, finance promises must be kept. Developed countries must race the clock to double adaptation finance to at least $40 billion a year by 2025.”
Emphasizing the need for a significant increase in concessional finance, he stressed that climate adaptation is a global investment, not charity.
The UN chief underscored the transformative potential of adaptation finance, which he argued could drive economic progress and sustainable development.
He called on wealthier nations to prioritize this support, especially for communities struggling with limited resources.
“We need countries’ new climate action plans to set out adaptation financing needs and we need every person on earth to be protected by an alert system by 2027, in line with our Early Warnings for All initiative,” Guterres said.
He also highlighted the mounting climate toll of record-breaking temperatures, intensified natural disasters, and escalating food insecurity that disproportionately impacts poorer nations.
The UN Secretary-General warned that without swift adaptation and support, millions remain at risk as communities struggle to withstand climate extremes.
Guterres reminded attendees of their commitment to keeping the global temperature rise below 1.5 degrees Celsius, calling for new national climate action plans by the next COP that cover all emissions and sectors.
He outlined that these plans must “advance global goals to triple renewables capacity, double energy efficiency, and halt deforestation by 2030.”
Additionally, he emphasized the need for a 30 percent reduction in fossil fuel production and consumption by the same date, aligning national energy strategies with sustainable development goals to attract crucial investments.
“All this must be achieved in line with the principle of common but differentiated responsibilities and respective capabilities in the light of different national circumstances. All countries must do their part,” Guterres said.
He added: “But the G20 must lead. They are the largest emitters, with the greatest capacities and responsibilities. They must bring their technological know-how together with developed countries supporting emerging economies.”
Guterres issued an urgent appeal for transformative climate finance reforms, stressing that developing countries eager to advance environmental action face daunting barriers.
“Developing countries eager to act are facing many obstacles: scant public finance, raging cost of capital, crushing climate disasters, and debt servicing that soaks up funds,” he said.
Guterres continued: “Last year, developing and emerging markets outside China received just 15 cents for every dollar invested in clean energy globally. COP29 must tear down the walls to climate finance. Developing countries must not leave Baku empty-handed. A deal is a must.”
To meet the needs of developing nations, Guterres outlined a new financial framework with five critical elements.
First, he called for “a significant increase in concessional public finance” to ease the financial pressures on developing nations.
Second, he urged for a clear pathway demonstrating how public finance would mobilize the trillions required for climate action.
“Polluters must pay,” he added, advocating for levies on shipping, aviation, and fossil fuel extraction as part of innovative financing solutions.
He further emphasized the need for a financial system that assures “greater accessibility, transparency, and accountability” to build confidence among developing nations that promised funds will materialize.
Lastly, Guterres called for a recapitalization of multilateral development banks with a reformed business model that can “leverage far more private finance” to meet the climate crisis’s demands.
The Mayor of Kuala Lumpur, Maimunah Sharif, also addressed the summit, highlighting the critical issue of plastic pollution and its far-reaching effects.
She warned that by 2040, an estimated 1.3 billion tons of plastic will contaminate the air, water, and food we consume.
“In fact, each of us now has microplastics in our bloodstream, vital organs, and, as of this year, even in babies, in pregnant women,” Sharif said.
The Mayor of Kuala Lumpur, Maimunah Sharif. Supplied.
The Kuala Lumpur mayor urged global leaders to find a resolution to foster peace and unity in addressing environmental issues.
“Let us dig deep in ourselves to find the will to give peace a chance, to make peace with nature, and to make peace with ourselves,” she said, calling for more concrete actions, timelines, and funding commitments to protect the planet for current and future generations.
She emphasized the importance of collective action, underscoring that “without collaboration and cooperation, without a whole-of-society approach, we cannot hope to survive into the next century.”
Sharif described COP29 as both a “finance COP” and an “enabling COP,” stressing the need to ensure that available funds reach those most in need.
Saudi NHC closes $532m in sales, reveals new projects at Cityscape Global
Updated 12 November 2024
Nour El-Shaeri
RIYADH: Ƶ’s National Housing Co. marked a strong presence on the opening day of Cityscape Global 2024, securing over SR2 billion ($532.4 million) in sales.
The company’s expansive booth highlighted its latest real estate projects, showcasing cutting-edge architectural designs, smart housing solutions, and advanced technologies aimed at enhancing market regulation.
During its participation, NHC also announced three major new developments that reflect its commitment to sustainable urban growth, in line with Ƶ’s Vision 2030.
The first of these projects, Khuzam Boulevard in Riyadh, is set to become the longest commercial boulevard in the Kingdom, stretching 3.5 km. Designed as a premier entertainment and retail destination, the boulevard will enhance the quality of life for residents and visitors in the capital by offering a mix of leisure, retail, and dining experiences.
In Jeddah, NHC unveiled the Jawhara Oasis project, a mixed-use development covering more than 94,000 sq. meters for office spaces, alongside an additional 15,000 sq. meters dedicated to hotel accommodations. The project will feature sports and entertainment centers, shopping complexes, and other amenities, creating a vibrant, integrated environment for both business and leisure.
In Madinah, NHC announced Wahat Al-Dar, a sustainable residential and entertainment development spanning 154,228 sq. meters. Designed to blend seamlessly with the city’s cultural and spiritual essence, this eco-friendly project will offer both comfort and sustainability, catering to the needs of residents and visitors alike.
NHC also highlighted its growing network of strategic partnerships with leading developers, solidifying its position as Ƶ's largest real estate developer. These collaborations are central to NHC’s role in driving national economic growth and supporting local content within the housing and real estate sectors.
Major deals
Alongside NHC’s announcements, the Saudi Ministry of Interior and the Ministry of Municipal and Rural Affairs and Housing signed a significant Service Provision Agreement during the event. This agreement, aimed at streamlining project implementation via the Furas platform, will enhance investment opportunities, align with Saudi Vision 2030 objectives, and promote greater coordination between the two ministries.
The Ministry of Interior’s pavilion showcased its advancements in artificial intelligence, particularly in security operations, border protection, and crisis management. It also unveiled initiatives aimed at reducing road accident fatalities by 50 percent and extending payment periods for traffic fines.
The Eastern Province municipality secured investment agreements worth over SR800 million, with Mayor Fahd Al-Jubair signing multiple deals. These agreements include plans to upgrade the South Khobar Corniche, improve infrastructure in Dammam, and develop new recreational spaces in the Al-Khuzama district. Additional projects include revenue-sharing models for infrastructure upgrades, including enhancements to the North Dammam Corniche and the airport road.
King Abdullah Financial District also entered into a strategic partnership with IoT Squared, focusing on advancing the district’s smart city infrastructure. This collaboration will integrate Internet of Things solutions to optimize renewable energy usage, smart grids, and real-time incident management within the KAFD area.
Cityscape Global 2024 is being held at the Riyadh Exhibition and Conference Center in Mulham and runs through Nov. 14. The event, themed “The Future of Living,” serves as a platform for showcasing innovation and collaboration in the real estate and urban development sectors.
Bahrain airshow sets stage for aerospace partnerships
Event promises major deals, display of cutting-edge technologies
Updated 12 November 2024
MOHAMMED AL-KINANI
MANAMA: The Bahrain International Airshow 2024 is poised to elevate Bahrain’s position as a leader in the global aerospace industry, foster economic growth, and forge vital industry partnerships.
Under the patronage of King Hamad bin Isa Al-Khalifa, the seventh biennial event will take place from Nov. 13 to 15 at Sakhir Air Base, attracting key players from the world’s aviation, defense, and space sectors.
The airshow will be graced by Crown Prince Salman bin Hamad Al-Khalifa, along with prominent international thought leaders and industry experts.
The event will feature discussions on critical topics such as sustainability in aviation, cutting-edge technological innovations, infrastructure investment, space operations, gender equality in aerospace, and the future workforce challenges facing the industry.
With the participation of both civil and military aviation manufacturers, along with representatives from the fields of transportation, telecommunications, research, and space exploration, BIAS 2024 will serve as a major platform for global collaboration and knowledge exchange.
The airshow will also showcase Bahrain’s role as a hub for international aerospace events and its growing influence in driving regional growth and innovation.
The event will be hosted across a vast 14,000-sq. meter exhibition hall, 40 luxury chalets, and an 86,000-square-meter static aircraft display area. Major international exhibitors, including Lockheed Martin, Rolls-Royce, Thales, DHL, Indra Spain, Otokar, Defense Technology Equipment, and UAE’s Tawazan, will present the latest in aerospace and defense technologies. These displays will provide attendees with a firsthand look at the most advanced technologies shaping the future of aviation and defense.
Bahrain’s role as a strategic player in the aerospace sector has been reinforced in recent years through significant investments and partnerships that have propelled the country’s economic growth.
According to the event’s organizing committee, Bahrain’s gross domestic product grew by 4.9 percent in 2023, the highest rate since 2013. This growth is further supported by an increase in the performance of the non-oil sectors, which expanded by 1.3 percent year on year, reaching 3.7 billion Bahraini dinars ($9.8 billion) in the second quarter of 2024. These figures reflect the ongoing success of Bahrain’s economic diversification strategy, with the non-oil sector contributing more than 85 percent to the overall GDP.
For the first time, 13 companies from Europe, the US, China, Malaysia, and Thailand specializing in airport ground services will participate in BIAS 2024. This marks an expansion of the airshow’s scope, introducing new players and expertise to the event. Additionally, international aviation institutes will offer educational opportunities for attendees, further enhancing the event’s value by inspiring the next generation of aerospace professionals.
Key features
The airshow will also feature a series of impressive aerial displays. These include performances by the Royal Bahraini Air Force’s Copra Zolo by Bell, the Royal Saudi Air Force’s Typhoon and Saudi Hawks aerobatic display teams, as well as the Global Stars, Boeing 787-9, and the Indian Air Force’s Sarang helicopter team. These high-flying performances will showcase the technical capabilities of both military and civilian aircraft, captivating audiences and demonstrating the precision and skill of the world’s top aviators.
Since its launch in 2010, BIAS has grown significantly in both scale and prestige. Traditionally held in January, the event was moved to November in 2018 to better accommodate the needs of participants and the broader aerospace community. The 2022 edition attracted over 46,000 visitors from nearly 60 countries, with 186 companies participating and deals totaling $1.85 billion. The event also featured 100 aircraft on static display and was supported by 18 sponsors.
The final preparations for BIAS 2024 were reviewed in a meeting held two weeks ago, with Sheikh Abdullah bin Hamad Al-Khalifa, personal representative of King Hamad and chairman of the BIAS supreme organizing committee, confirming that everything is in place for the event.
Sheikh Abdullah emphasized that the ongoing success of BIAS reflects Bahrain’s growing role as a premier host for international events and highlighted the importance of continuing to organize specialized aviation affairs. These events not only help solidify the aviation sector’s role as a key economic growth driver but also create valuable opportunities for the youth in innovation and development.
As part of its commitment to engaging the next generation, BIAS 2024 will host approximately 5,000 students from public and private schools. These students will have access to the entertainment zone, where they can enjoy daily air displays and participate in educational programs and workshops. These initiatives are designed to spark interest in aviation, science, and technology, inspiring future careers in these fields.
The Supreme Organizing Committee for the event is chaired by Sheikh Abdullah bin Hamad Al-Khalifa and includes key figures such as Shaikh Abdullah bin Ahmed bin Abdullah Al-Khalifa, Bahrain’s newly appointed minister of transportation and telecommunications; Maj. Gen. Mohammed Al-Musalam, commander of Sakhir Air Base and head of the military committee; and Yousif Mahmoud, director general of BIAS.
