Oil Prices Go Over $100 for First Time Since 2014
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Good day from REEDNEWSARABWORLD for Friday, February 25, 2022!
Oil prices reached $100 a barrel and more as the Russian invasion of Ukraine caused widespread concern throughout the Middle East, ranging from worries about energy prices and shortages to wheat supplies from Ukraine and tourists from Russia.
Turkey is the NATO country most friendly to Russia, but it's rejecting the invasion of Ukraine. Egypt's Suez Canal worries about shortages of wheat, but also sees that more ships may come through the waterway because of the fighting in Ukraine. And a top Sudanese general visiting in Moscow defied the international community and said he supported Russia against Ukraine.
In Saudi Arabia, the sovereign wealth fund may sell all or part of its $90 billion stake in Saudi Aramco, and the largest Saudi bank, worth $82 billion, is looking to buy financial institutions in Europe and Asia.
News from the United Arab Emirates, which is accused of illegally funneling $5 million into a U.S. presidential campaign, and from Turkey, where the Voice of America says it won't be licensed and accuses a Turkish broadcast body of censorship, and More.
Oil prices surged over $100 a barrel for the first time since 2014 as Russia's attack on Ukraine exacerbated concerns for a disruption of global energy supplies.
Crude oil prices reached $102.48, increasing more than $20 a barrel since the start of the year. Sanctions against Russia were announced and so far do not include energy trade, but the growing uncertainty is expected to keep the market volatile and elevated.
Russia is the world's second largest oil producer, selling most of its crude oil to Europe, and it's the largest natural gas supplier to Europe, providing about 35% of Europe's supply.
Khaleej Times, Russia-Ukraine crisis: Oil surges above $100 for first time since 2014.
AFP, A history of $100 crude oil.
Iran said it's opposed to war in Ukraine, but it didn't denounce Russia's invasion and blamed the crisis on NATO. Iran's foreign minister, Hossein Amirabdollahian, said the crisis is "rooted in NATO's provocations."
Al Jazeera, 'Rooted in NATO': Iran responds to Russia's Ukraine attack.
Iran has millions of barrels of oil stored offshore in tankers, and that oil could flow to markets if an agreement is reached by the nuclear talks in Vienna. Iran is believed to have from 65 to 80 million barrels on stationary tankers, and if freed much of it would go to refiners in Asia, with South Korea first in line for cargoes.
Bloomberg, Wave of Iranian oil may flood Asia if nuclear deal revived.
Gulf Arab countries were noticeably absent in reaction to Russia's invasion of Ukraine. Russia is a partner of the countries in OPEC+, the extended oil cartel that is limiting monthly production increases as the United States calls for more oil on the world market. Saudi Arabia did alert its citizens in Ukraine to contact its embassy in Kyiv, the capital.
Alarabiya, Saudi Arabia urges its citizens in Ukraine to contact embassy as soon as possible.
Lebanon condemned the Russian invasion of Ukraine. A foreign ministry statement called on Moscow to stop its military operations and start a dialogue and negotiations with Ukraine. In Beirut, Ukrainians living in Lebanon were joined by Lebanese in a protest near the Russian embassy.
Reuters, Lebanon condemns Russian invasion of Ukraine.
The Russian-Ukraine conflict is set to hit Lebanon's food supply, with wheat most impacted. The war is expected to strain trade throughout the Middle East, and Steve Taravella, an official of the World Food Program, said: "Wheat would be the food commodity most impacted, as Russia is the world's largest exporter of wheat and Ukraine is also a major exporter." Together, the two countries are responsible for 29% of global wheat trade.
Quartz, Russia-Ukraine conflict is set to hit Lebanon's food supply.
Turkey is considered the most Russia-friendly of NATO states but it won't recognize Moscow's actions against Ukraine. Earlier, Turkish President Recep Tayyip Erdogan called Russian President Vladimir Putin and sought a diplomatic resolution of the dispute.
Associated Press, Turkey's Erdogan tells Putin that new Russian claims on Ukraine territory are illegitimate.
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Israel condemned Russia's invasion of Ukraine and called on world powers to end the crisis. "Russia's attack on Ukraine is a grave breach of international order," Foreign minister Yair Lapid said, and "Israel condemns the attack."
Reuters, Israel condemns Russian attack on Ukraine.
The Russia-Ukraine crisis is expected to have an impact on wheat supplies to Egypt from both countries. Nearly half of Egypt's wheat comes from Russia andth 30 percent is from Ukraine. "Since the beginning of the crisis, we have been studying the extent of its potential impact on a number of commodities, especially wheat," Egypt's prime minister, Mostafa Madbouly, said.
Arab News, Egyptian cabinet discusses Russia-Ukraine crisis.
Egypt's Suez Canal can expect more traffic caused by the Russia-Ukraine conflict. "Ships passing through the Northern Sea route would reroute through the canal because it is the fastest and safest passage. This would mean more revenues for the canal," Wael Kaddour, a former member of the Suez Canal's board of directors, said.
He pointed out, however, that the Ukraine war could impact Egypt's wheat imports, which come from both Russia and Ukraine.
Al-Monitor, Egypt says no worries over Suez Canal amid Russian-Ukrainian standoff.
Syria is cutting spending as it anticipates higher oil and wheat prices from the Russia-Ukraine conflict. Syria's state news agency reported that an extraordinary cabinet meeting was convened to manage reserves of staples, including wheat, sugar, cooking oil, and rice for the next two months. Supply of the commodities would be closely watched, with the possibility of rationing.
Associated Press, Russia's invasion of Ukraine prompts Syria to cut spending.
A top Sudanese general visiting Moscow defied the international community and said he supported Russia against Ukraine. Mohamed Dagalo, known as Hemetti, is deputy head of Sudan's ruling Sovereign Council. When he arrived in Moscow, Dagalo said he hoped for a peaceful resolution but "As for Russia...the whole world must realize that it is their right to defend their people."
Sudan Tribune, Sudan's Hemetti supports Russian recognition of separatist Ukrainian regions.
Saudi Arabia's Public Investment Fund is considering selling its $90 billion stake in Saudi Aramco. Sources said talks are at an early stage, but the fund's 4% holding in the giant oil company could be sold in whole or part or could be used to pledge against loans. Separately, the Saudi Arabian government owns 94% of Aramco.
OilPrice, Saudi sovereign wealth fund considers sale of $90 billion Aramco stake.
Bloomberg, Saudi wealth fund weighs plans for $90 billion Aramco stake.
New offices in London, New York, and Hong Kong have been opened by Saudi Arabia's Public Investment Fund as it looks overseas for growth. The $500 billion Saudi sovereign wealth fund is at the center of the kingdom's plans to create new sectors and diversify revenues away from oil.
Reuters, Saudi sovereign fund PIF opens London, NY, and Hong Kong offices.
Saudi Arabia wants its biggest bank to increase its footprint outside the kingdom. The $82 billion Saudi National Bank, created through a merger a year ago, is studying potential purchases of financial institutions in Europe and Asia. Executives are brainstorming and plan to present a deal-making strategy to the bank's board within the next few months.
Bloomberg, Saudi Arabia eyes bold global acquisitions for $82 billion bank.
Yemen's Houthis have detained another official of the long-closed United States embassy, bringing the total to at least 11. The Houthis took into custody a former press officer from the embassy, after earlier arresting his deputy. Houthi rebels took the officer to his home to search it and then took him away again. Washington shut down the embassy in 2015.
Associated Press, Reports: Yemen's Houthis seize another US embassy staffer.
More than $5 million in illegal money funneled into the U.S. 2016 presidential campaign came from the United Arab Emirates. A U.S. Justice Department prosecutor, Michelle Parikh, said "The facts are this money came from the UAE government." Prosecutors are preparing for trial of two people who handled the money. The original indictment named only a "Middle East country," but testimony this week disclosed that the country was the UAE. The money was contributed to political committees, including one for Hillary Clinton.
Middle East Eye, US prosecutors allege illegal campaign donations in 2016 election originated from UAE.
The Voice of America and Germany's Deutsche Welle broadcasters say they won't comply with an attempt at censorship by Turkey. The Radio and Television Supreme Council of Turkey ordered three foreign outlets to comply with a law requiring online broadcasters to have a license. The U.S. and German public broadcasters said they would refuse to apply for a license after they were ordered to do so within 72 hours or have access to their websites blocked in Turkey. The two broadcasters called the demand "censorship." A third, France-based Euronews, said it would apply for a license.
Financial Times, Turkey set to ban German and US public broadcasters.
Libya's prospective prime minister appointed by parliament said he has a Cabinet ready. Fathi Bashagha said his government is ready and will be presented to the eastern-based House of Representatives for a vote of confidence. An interim government is headed by Prime Minister Abdulhamid Dbeibah, who has said he won't step down until elections are held.
AFP, Libya rival PM says Cabinet line-up ready.
Sudan has released most of the 135 anti-coup protesters who had been held for weeks. A United Nations official said 115 were released, and he called for all other protesters to be freed. An activist in front of a UN building said: "There's no investigation or anything. They just take people and throw them into jail for no cause."
Reuters, Sudanese protesters released after weeks-long detention.
MORE: IMF's tough terms deepen doubts over quick Lebanon bailout: sources, Alarabiya... Syria says Israeli strike near Damascus kills 3 soldiers, Associated Press... Tunisia's Saied will bar foreign funding for civil society, Reuters... Egypt shuts two Red Sea ports due to bad weather, The National... IMF calls for structural economic reforms in Tunisia, Asharq Al-Awsat... Egypt vows to look after stranded Russians, Ukrainians, Malay Mail... Thousands of African students are stuck in Ukraine, Deutsche Welle.
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Deutsche Welle, How landmines prevent Iraq's displaced people from returning home.
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Associated Press, In one-time ISIS capital of Raqqa, poverty and fear drive residents out
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