Business

Oil prices surge over Kazakhstan unrest

Published

2 years ago

10/01/2022

MNN

Protest demonstrations across the country over a gas price hike have caused the oil prices to go up amid fears of supply interruptions.

Unrest in OPEC+ member Kazakhstan has pushed up oil prices as investors fear supply interruptions, but the uranium market appears less affected despite the Central Asian country being the world’s second-largest producer.

“Riots obviously can stop production and exports,” said Bjarne Schieldrop, an analyst at Swedish bank SEB, on Sunday.

Over the week, crude prices gained about five percent and on Friday Brent exceeded $83 per barrel, “putting it at its highest level since the price slide triggered by the first appearance of the Omicron variant in late November,” said Carsten Fritsch, commodities analyst at Commerzbank.

Protests spread across the country of 19 million this week in outrage over a New Year increase in prices for liquid petroleum gas (LPG), which many use to fuel cars.

The country is the largest oil producer in central Asia with a twelfth of the world’s proven reserves, according to the US Energy Information Administration (EIA). Kazakhstan produced around 1.8 million barrels a day in 2020.

The country is also the second-largest oil producer in the OPEC+ group of top oil producers, behind Russia.

Hydrocarbons made up 21 percent of its GDP in 2020, according to the World Bank.

‘Bullish in the short-term’

Production by Tengizchevroil, the largest oil venture in Kazakhstan, “has been temporarily adjusted as a result of protests at the Tengiz field”, said Stephen Brennock of PVM brokerage.

But several analysts said there was no indication that oil production had been seriously affected.

On Friday, production at the country’s top three fields was “said to be continuing”, said Brennock.

“Unrest in Kazakhstan is bullish in the short-term,” said Neil Wilson, an analyst at Markets.com.

At close of trading on Friday, crude oil prices had fallen slightly, with Brent falling 0.28 percent to $81.76 and West Texas Intermediate down 0.54 percent at $79.03.

Uranium mines ‘largely unaffected’

Kazakhstan, the world’s ninth-largest country, is rich in manganese, iron, chrome and coal.

It also has the world’s second most significant uranium reserves behind Australia, according to the Cyclope annual report on commodities, accounting for 40 percent of the world’s output, according to CRU consulting group.

Toktar Turbay, an analyst at CRU, said the current crisis is “just likely to create minor discomfort rather than anything else”, since the largest customer China has accumulated enough uranium to cover its needs in the short term.

Kazakhstan’s uranium mines are located in remote areas of its southern Turkestan region, which is “largely unaffected by ongoing protests and clashes within the country”, the analyst said.

Source: TRTWorld and agencies

Business

CWEIC office to establish in Maldives, Janah as Chair

Published

3 days ago

16/05/2024

Commonwealth Enterprise and Investment Council (CWEIC) has announced decision to establish its office in the Maldives, and appoint President Dr. Mohamed Muizzu’s Principal Advisor Mohamed Ali Janah as its Country Chair.

CWEIC in a statement on Thursday, said the office will be established to connect the Maldives government with international investors and businesses.

The Maldives hub office of CWEIC will play a vital role in seeking prospective investment opportunities from all 56-member nations of the Commonwealth. The office will also enhance strategic alliances and partnerships between these countries and the Maldivian government.

Veteran entrepreneur, Janah boasts of over 30 years of business relations with the Middle East.

Source(s): sun.mv

Business

Dubai company awarded the development of SEZ

Published

7 days ago

12/05/2024

An agreement has been signed by the Maldivian administration with UAE’s International Free Zone Authority (IFZA) to develop Special Economic Zones (SEZ) in the Maldives.

The agreement, officially co-signed by Minister of Economic Development and Trade Mohamed Saeed and IFZA Chairman Martin Gregers Pedersen during a special ceremony, marks a significant milestone in economic development.

Speaking at the ceremony, Minister Saeed emphasized the timeline for finalizing the agreement, committing to reach a consensus within the next four months. As part of the agreement, Fonadhoo in Kaafu Atoll will be transformed into a financial hub, featuring a new financial center and a bridge connecting Male’ and Hulhule. IFZA will bear the expenses for these developments.

The Ministry of Economic Development and Trade further highlighted plans for the Economic Gateway project in Ihavandhippolhu, aiming to attract investors with IFZA’s expertise. Addressing the attendees, Chairman Pedersen expressed confidence in the success of the project, underscoring collaborations with investors to further enhance opportunities in the Maldives.

The development of SEZs remarkably aligns with the President Dr. Mohamed Muizzu’s vision to diversify the economy and stimulate financial growth. The Maldivian administration is optimistic about attracting future investments and positioning the country as a desirable destination for business opportunities.

Source(s): PsmNews

Business

Over USD 713M generated attributing to revenue increasing by 3.7%

Published

1 week ago

11/05/2024

Ministry of Finance has revealed a remarkable surge in the government’s revenue generated as of April 25, which exceeds USD713 million. The latest weekly fiscal report publicised by the ministry indicates that this contributes to a 3.7% increase in revenue in comparison to the revenue of USD693 million, generated within the same period, in 2023.

The fiscal report shows that the revenue comprises USD 596 million in tax revenue, USD116 million in non-tax revenue, and USD3 million in aid received. Tax earnings include import duty, business and property tax (BPT), goods and services tax (GST), as well as earnings from GST. The breakdown of revenue generation includes USD45 million from import duties, USD168 million from BPT, USD330 million from GST, USD24 million from green tax, USD22.6 million from airport service charges, and departure tax.

Expenditures until April 25 totalled USD817 million, with USD629 million allocated to recurrent expenses and USD181 million to capital expenditures. This represents a significant reduction in expenditures compared to the USD244 million spent by the government in 2023, during the corresponding timeframe. Recurrent expenses cover USD207 million for salaries and allowances and USD408 million for administrative work. Meanwhile, capital expenditure primarily encompasses expenses related to structural development.

Source(s): PsmNews