Oil Markets Steady as Investors Weigh Banking Crisis, Russia

Business

March 27th, 8:14am

Asharq Al-Awsat

A general view shows an oil rig used in drilling at the Zubair oilfield in Basra, Iraq, July 5, 2022. (Reuters)

Oil prices stabilized in Asian trade on Monday as investors sought cues from broader financial markets, while comments by Russian President Vladimir Putin over the weekend ratcheted up geopolitical tensions in Europe. Brent crude futures held unchanged at $74.99 a barrel at 0357 GMT after hitting a session high of $75.64. US West Texas Intermediate crude was at $69.29 a barrel, up 3 cents, after rising to $69.92 earlier in the session. Brent rose 2.8% last week, while WTI rebounded 3.8% as jitters in the banking sector eased. Oil markets are closely watching the sentiment in financial market, while oil fundamentals remain sidelined, said Vandana Hari, founder of oil market analysis provider Vanda Insights. "Expect most price action in Brent and WTI futures to occur during the Europe and US trading hours, marked by plenty of intraday volatility," Hari said. "A strong rebound is not on the cards until the (banking) crisis dissipates fully, which could take days, if not weeks," she added. Keeping a lid on oil's gains, the dollar was firm on Monday as investors assessed regulators' moves to rein in jitters in the global banking system. A stronger dollar makes dollar-denominated commodities more expensive for holders of other currencies and tends to weigh on demand for oil. Prices drew some support from President Vladimir Putin comments that he will station tactical nuclear weapons in Belarus, escalating geopolitical tensions in Europe over Ukraine. NATO criticized Putin on Sunday for what it called his "dangerous and irresponsible" nuclear rhetoric. Russia's Deputy Prime Minister Alexander Novak said on Friday that Moscow was very close to achieving its target of cutting crude output by 500,000 barrels per day (bpd) to around 9.5 million bpd. Despite lowering output, Russia is expected to maintain crude oil exports by cutting refinery output in April, data from industry sources and Reuters calculations showed on Friday. Exports of Russian oil products have to date been more affected than crude exports by a recent European Union embargo, with tons of diesel stuck on ships awaiting buyers. Analysts said Russian crude inventories have been rising since September last year, and the country would likely want to avoid further stockbuilds during refinery maintenance season from March to June. "If Russia wants to draw down the inventories that it has built, output cuts may need to be extended beyond June," analysts at FGE said in a note. Meanwhile, in France, industrial action is disrupting refineries, reducing crude demand and fuel production. Investors are also watching out for China's manufacturing and services purchasing managers' indexes (PMIs) to be releases later this week. In the US, oil rigs rose four to 593 last week, up for the first time in six weeks, while gas rigs held steady at 162, energy services firm Baker Hughes Co said in a report on Friday.

from Asharq AL-awsat https://english.aawsat.com/home/article/4235976/oil-markets-steady-investors-weigh-banking-crisis-russia

Man Suing Gwyneth Paltrow to Testify in Utah Ski Crash Trial

Entertainment

March 27th, 8:07am

Asharq Al-Awsat

Gwyneth Paltrow appears on the stand in court where she is accused in a lawsuit of crashing into a skier during a 2016 family ski vacation, leaving him with brain damage and four broken ribs, in Park City, Utah, USA, 24 March 2023. (EPA)

The man suing Gwyneth Paltrow over a 2016 collision at one of the most upscale ski resorts in North America is expected to take the stand on Monday as the closely watched trial goes into its second week in Utah. Attorneys said Friday that retired optometrist Terry Sanderson, 76, would likely testify first on Monday, before his attorneys rest and hand the courtroom over to Paltrow's defense team to make their case. Paltrow's attorneys are expected to call her two children — Moses and Apple — and a ski instructor who was present the day of the collision. Sanderson is suing Paltrow for more than $300,000, claiming she skied recklessly into him from behind, breaking four of his ribs and head trauma that post-accident manifested as post-concussion syndrome. Paltrow has countersued for $1 and attorney fees, alleging that Sanderson was at fault and veered into her from behind in a — first gradual and then sudden — crash. After Paltrow testified Friday that the collision began when Sanderson's skis veered between her two legs, attorneys will likely question Sanderson on his recollections. Craig Ramon, the sole eyewitness of the crash, testified that he heard a loud scream and saw Paltrow hit Sanderson, causing his skis to fly up into the air before he plummeted down on the beginner run in a “spread eagle” position. Attorneys will also likely question Sanderson on the post-concussion symptoms that medical experts and his doctors testified about last week. And Paltrow's attorneys are expected to ask about his references to Paltrow's fame and whether the lawsuit amounts to an attempt to exploit it. Though the courtroom in Park City, Utah, was far from full throughout the first week of the trial, the case has emerged as the most closely watched celebrity trial since Johnny Depp took Amber Heard to court almost a year ago in Virginia. Clips of attorney outbursts and Paltrow's Friday testimony have been cut and circulated widely on social media, while observers have debated the motivations on both sides to sustain the prolonged legal battle seven years after the collision. The amount of money at stake for both sides pales in comparison to the typical legal costs of a multiyear lawsuit, private security detail and expert witness-heavy trial.

from Asharq AL-awsat https://english.aawsat.com/home/article/4235946/man-suing-gwyneth-paltrow-testify-utah-ski-crash-trial

Iraq-Türkiye Pipeline Shutdown on Turkish Government Orders

Business

March 27th, 8:00am

Asharq Al-Awsat

A worker performs checks at Türkiye's Mediterranean port of Ceyhan, which is run by state-owned Petroleum Pipeline Corporation (BOTAS), some 70 km (43.5 miles) from Adana February 19, 2014. (Reuters)

The Kurdistan Pipeline Company has shut the Iraq-Türkiye pipeline at the request of the Turkish government, oil companies in the regions said on Monday. The news comes after comes after Iraq on Saturday halted crude exports from its northern region after the country won an arbitration case in which it said that Türkiye violated a joint agreement by allowing the Kurdistan Regional Government (KRG) to export oil to Ceyhan. Iraqi Kurdistan-focused oil firm Genel Energy Plc said it expects the shutdown to be temporary and that it continues to produce oil into storage facilities. Meanwhile, Norway's Middle East-focused oil firm DNO said the KRG instructed it to temporarily halt oil deliveries to the pipeline for export.

from Asharq AL-awsat https://english.aawsat.com/home/article/4235926/iraq-t%C3%BCrkiye-pipeline-shutdown-turkish-government-orders

Kremlin Time and Beirut Time

Opinion

March 27th, 7:47am

Ghassan Charbel

Ghassan Charbel - Ghassan Charbel is the editor-in-chief of Asharq Al-Awsat newspaper

The world is living on Kremlin time. The decisions of its master leave their mark on the security of the planet and the prices of energy and grain. Experts agree that another year of the Russian war on Ukraine will be catastrophic to the world. Vladimir Putin’s announcement that he was stationing tactical nuclear weapons in neighboring Belarus was the latest evidence that the man is in a complicated crisis that he has also dragged the world in. The announcement is a reminder that he cannot come out defeated from the war. Defeat in Ukraine could ultimately lead to the loss of the Kremlin. It may also lead to the fragmentation of the Russian Federation itself because only a powerful man can put its parts together. The world is also living on the time of Chinese-American relations. The dispute over the future of Taiwan is a massive mine, whose explosion the world cannot withstand. The global economy will be plunged into a fatal crisis if conflict erupts in and around Taiwan. China is currently a powerful country ruled by a powerful man. The new China is being ruled by the most powerful leader since Mao Zedong. It is fortunate that the man has not yet been lured into embarking on an adventure that would be destructive to the economy of both his country and the world. The most dangerous aspect of the current crisis in Ukraine is the difficulty in coming up with an acceptable solution, even if the mediator were someone as powerful as the president of China. Putin had blocked the possibility of a solution by declaring the annexation of Ukrainian regions he believes are part of Russia. He cannot withdraw from them. He cannot yield to holding a UN-monitored referendum with the absence of his forces. Meanwhile, the West cannot sign an agreement that would declare the birth of a new Ukrainian map drawn up by Putin and Russian and Ukrainian blood. The ongoing bloodbath in Bakhmut is a sign of the current impasse and just how fierce the confrontation is. Russia’s stationing of nuclear weapons in Belarus is a message that it is prepared to take catastrophic decisions to avoid defeat. Given such a dangerous global situation, governments everywhere must properly assess it. They must see to their security and internal situation. They must provide the needs of their people to prevent unrest that could lead to instability that may go beyond borders. The Middle East is concerned with the global situation. American forces are deployed throughout the region. Russian forces are present in Syria. The Iranian-American clashes in eastern Syria are additional evidence of the tensions. However, one positive signal arrived in the region from Beijing. The Chinese-Saudi-Iranian statement was very significant, not simply because it spoke about restoring relations between Saudi Arabia and Iran, but because it also stressed the need to respect the sovereignty of nations and refrain from meddling in their internal affairs. Even though we are now waiting for the agreement to be carried out and for intentions to be tested, the general impression in the Middle East is that it may be presented with a serious opportunity to resolve tensions, conflicts and violations that have plagued it over the past four decades. Some believe it is a golden opportunity for fragile countries to catch their breath and launch an effective effort to strengthen their maps that now look like ships that have capsized in a storm. Strengthening maps begins by first deriving lessons from policies that led them to their current dire condition in the first place. They must strengthen national unity, bring citizens back to the state and its institutions, revive the economy and improve levels of education and healthcare. The Lebanese map is not a capsized ship. It is a hole-ridden ship that needs to be retrieved from the bottom of the ocean where it has been driven by the system of corruption, failure and factional squabbles over the corpse of the state. Even if we were to assume that the Lebanese politicians don’t have time to preoccupy themselves with the Kremlin and Taiwan, the regular Lebanese citizen has the right to demand them to seize any opportunity to extract Lebanon out of the labyrinths of Hell where it has been for too long. Out of all the broken maps, Lebanon’s is in the most precarious situation. The situation has become so dire that doctors will soon be scarce, that is if the sick can even afford treatment. More dangerous than the image Lebanese people searching in piles of trash for a scrap of food is the broken bridges between segments of society. Factional rhetoric has taken over, with complete disregard of the constitution - the only reference that one can turn to. The abhorrence of the constitution and constitutional deadlines and imposing of practices that go against the spirit of the Lebanese fabric itself and dragging Lebanon towards agendas and conflicts that are beyond its ability to withstand are all factors that have led the country to one abyss after the other. The battle over the time in Lebanon is painful. It exposes the extent of the massive destruction that has befallen relations between Lebanese segments. It exposes the collapse of bridges and alienation between people. Alienation between small maps inside the map of a small nation. It exposes the extent of the differences in reading the past, dealing with the present and looking towards the future. It exposes the fear over balances of power, over identity, over the Lebanese people’s way of life and over the political, social and demographic changes. It exposes fear over the regional and international position of their country. Best evidence of the above is the lethal impact caused by emigration. The Lebanese people have grown so despairing of their country and people that they are willing to throw themselves in “death boats” to leave. The battle of time is painful. Will the Lebanese seize every opportunity to declare that they are not one people, but a group of peoples that have been confined together by geography? Do they want to say that they have given up on trying to build a state that can accommodate all segments and colors and where peace is nothing more than a truce in wait of a deadlier war? Do they want to live forever in the shadow of a failed marriage and impossible divorce? For how long can they live with vacuum in the presidency and in a geographic space where justice is meaningless, and the police are ineffectual? The same applies to the parliament and government. Why do the Lebanese people forget experiences and refuse to learn from them? Have they forgotten what time has proven: That every choice that is greater than Lebanon is costly, and every choice less than it is also costly? The world is living on Kremlin time and Lebanon is working on the time of fear and spite. Some believe that resolving the Ukraine crisis is possible despite its challenges, but that the Lebanese crisis is part of Lebanon’s fabric. The battle of time is scary. Two capitals with two times, institutions with two times, buildings with two times. At what time will the country die?

from Asharq AL-awsat https://english.aawsat.com/home/article/4235901/ghassan-charbel/kremlin-time-and-beirut-time

Burhan: Sudanese Army Must Stop Supporting Dictatorships

Arab World

March 27th, 7:38am

Khartoum – Mohammed Amin Yassin

The head of Sudan's Sovereign Council, commander of the Sudanese army, Lieutenant General Abdel Fattah al-Burhan (AFP)

The head of Sudan's Sovereign Council, and commander of the Sudanese army, Lieutenant General Abdel Fattah al-Burhan, called on his forces to stop supporting dictatorships, as they have done in recent decades. He indicated that Sudan would build a military force that would not intervene in politics and would be trusted by the Sudanese people to make a modern and democratic state. Burhan affirmed the commitment of the armed forces to move forward with the Framework Agreement and the democratic transition, explaining that security and military reform is a complex process that requires laying the correct foundations for establishing professional armed forces without involving them in political battles. The commander spoke at the opening of the "Military and Security Reform" workshop as stipulated by the Framework Agreement, signed between the military and civilians on December 5, as an essential element in the political process to return civilians to power. "The process of security and military reform is a long and complicated process that cannot be bypassed," he said. "We want to enable any elected civilian authority to have the armed forces under its command," he added. Burhan stressed that the armed forces would not stand in the way of reforming the state, noting that the conference was an opportunity to lay the foundations for security and military reform and establish the state's police, judicial, and security agencies. The official called on the political forces that reject the political framework agreement to join the political process, assuring that everything proposed in the political process is a national action formulated by the Sudanese. Burhan welcomed everything that can reform the military institution and put it on the right path: "We are working to build armed forces which have the trust of all Sudanese." Meanwhile, Deputy head of Sudan's sovereign council and head of Rapid Support Forces (RSF), General Mohamed Hamdan Dagalo, said that his forces are "unequivocally committed" to siding with the democratic transition and integration into one professional army, demanding that reform include all state agencies. Dagalo, also known as Hemedti, stressed that the security and military reform process should not be subject to any political agendas, asserting the necessity to reach a single army as agreed between the parties. Hemedti called for benefiting from the experiences and models of merging armies in some countries, recalling that the Rapid Support Forces were formed according to the law that regulated and defined their tasks. He added that the security and military reform process needs to develop legislation and laws, which is the task of the Ministry of Justice and the Legislative Council. The RSF commander explained that reforming the security and military system is a complex and sensitive technical process, stressing that the workshop is the beginning of security and army reform. The Sudanese military and civilian parties have formally engaged in talks to discuss the security and military reform processes, including the parties expected to reach an agreed formula for integrating the RSF into one army. Furthermore, the Quartet and the Troika welcomed the launch of the security and military reform conference, which discusses the fifth issue of the Final Phase of the political process in Sudan. A statement stressed that addressing legal, constitutional, and political issues around the role of the armed forces and other security forces is a vital element of any transition from authoritarian rule to democracy. "We commend all the parties present today for their commitment, recorded in the Framework Political Agreement, to the vision of a single, national, unified professional army, reformed and modernized, under democratic civilian control." The Quartet and the Troika said that the workshop is merely the start of a process and cannot be expected to develop detailed long-term plans. "We respectfully encourage the participants to focus on building the minimum necessary consensus around both the long-term vision and the immediate next steps following the creation of a new civilian-led transitional government," read the statement. The statement added that the National Security and Defense Council, led by the Prime Minister, should undertake more detailed work following the Framework Political Agreement and the Juba Peace agreement as a basic reference. The statement urged all signatories to engage fully in these processes, adding that the Quad and Troika stand ready to offer technical support while respecting Sudanese leadership. The statement urged those who have not yet joined the process to consider how they may do so, noting that expectations are high. The UN Security Council is following the matter closely following last week's briefing by the Special Representative of the Secretary-General, Volker Perthes.

from Asharq AL-awsat https://english.aawsat.com/home/article/4235891/burhan-sudanese-army-must-stop-supporting-dictatorships

Saudi Arabia to Host Arab Summit on May 19

Gulf

March 27th, 6:40am

Cairo - Asharq Al-Awsat

A view shows vehicles driving on the street in Riyadh, Saudi Arabia (File photo: Reuters)

The 32nd Arab summit will be held in Saudi Arabia on May 19, announced the General Secretariat of the Arab League. The League’s assistant secretary general, Hossam Zaki, said the decision came after consultations between Sec-Gen Ahmed Aboul Gheit and the Saudi government. He indicated that Saudi Arabia welcomed hosting the summit on the specified date. Zaki said that "the summit will be preceded by several preparatory meetings between senior officials and ministers over five days.” The League indicated that 2023 is expected to witness the Arab development summit in Mauritania and the Arab-African summit in Saudi Arabia. Aboul Gheit suggested in press statements during his visit to Lebanon that the main topic of the summit should focus on economic issues and helping the neediest Arab regions. Earlier, spokesperson Gamal Roushdy confirmed to Asharq Al-Awsat that consultations are underway between the Arab League and the Kingdom of Saudi Arabia to develop the best possible agenda of issues at the forefront of joint Arab action. Roushdy explained that the discussions often continue until the summit's date next May to address all the developments. The official spokesman expected that the Palestinian issue would be at the forefront of the points on the summit's agenda, being a central issue of the Arabs. He also indicated that the recent developments in the occupied territories, including the Israeli violations, would be addressed at the summit.

from Asharq AL-awsat https://english.aawsat.com/home/article/4235801/saudi-arabia-host-arab-summit-may-19

Israeli President Urges Netanyahu to Halt Legal Overhaul

World

March 27th, 5:37am

Asharq Al-Awsat

Israeli police use a water cannon to disperse demonstrators blocking a highway during a protest against plans by Prime Minister Benjamin Netanyahu's government to overhaul the judicial system in Tel Aviv, Israel, Monday, March 27, 2023. (AP)

Israel’s ceremonial president on Monday urged Prime Minister Benjamin Netanyahu to immediately halt a contentious overhaul of the judiciary. Isaac Herzog’s plea comes hours after tens of thousands of people burst into the streets around the country in a spontaneous show of anger at Netanyahu’s decision to fire his defense minister after he called for a pause to the overhaul. Herzog called on the government to put aside political considerations for the sake of the nation. “The entire nation is rapt with deep worry. Our security, economy, society — all are under threat,” he said. “Wake up now!” The overhaul has sparked one of Israel’s gravest domestic crises, drawing widespread opposition from business leaders, legal officials and even the country’s military. An uneasy calm returned to the country's streets after a raucous night of protests where tens of thousands of demonstrators lit bonfires on Tel Aviv's main highway, blocking that major throughway as well as others throughout the country. Netanyahu’s dismissal of Defense Minister Yoav Gallant appeared to signal that the prime minister and his allies will barrel ahead this week with the overhaul plan. Gallant had been the first senior member of the ruling Likud party to speak out against it, saying the deep divisions were threatening to weaken the military. Netanyahu’s government still appeared to be pushing ahead for a parliamentary vote this week on a centerpiece of the overhaul — a law that would give the governing coalition the final say over all judicial appointments. It also seeks to pass laws that would grant parliament the authority to overturn Supreme Court decisions and limit judicial review of laws. Netanyahu and his allies say the plan will restore a balance between the judicial and executive branches and rein in what they see as an interventionist court with liberal sympathies. But critics say the laws will remove Israel’s system of checks and balances and concentrate power in the hands of the governing coalition. They also say that Netanyahu, who is on trial for corruption charges, has a conflict of interest.

from Asharq AL-awsat https://english.aawsat.com/home/article/4235661/israeli-president-urges-netanyahu-halt-legal-overhaul