Oil Threatens the Security of World Economy

World economy might face a new shock due to the big increase of oil prices these days, and a great damage might hit the economics of the developed countries as a result of the surge of oil prices. Once again, oil threatens the security of world economy, and OPEC is trying to ease the situation through its decision of increasing oil prices by 500.000 barrels a day starting from today, but this decision has not succeeded in decreasing oil prices worldwide. The International Energy Agency IAEA said that the high oil prices will harm world economy in case this increase continues, on preserved the present level, and especially in the developed countries that don’t produce oil.
Oil prices hit a record reaching more than $53 per barrel, with the decline of prices of American crude oil in the European dealings by more than a dollar amid a big turn by investors to sell to gain more profits, the drop of prices of American crude oil from $1.26 to $92.27 per barrel, and the drop of Brent Mix from $1.24 to $89.85.

A Partnership Agreement between Syria, Iran, Venezuela and Malaysia, for Building a Joint Oil Refinery in Syria

Representatives of Iran, Syria Venezuela and Malaysia have signed yesterday in Damascus a partnership agreement from building an oil refinery in Syria. According to the agreement, the Iranian refinery and distributing oil products company will own 26%, the Venezuelan Ministry of Energy and Oil will own 34$, the Malaysian oil and gas company will own 26%, and the Syrian Ministry of Petroleum will own 15% of the project.

A Scenario Says that Russia Might Turn Into “A Hostile Saudi Arabia to the West”

Participants in the conference on the Russian energy which was held in Washington discussed the following issue: How will Russia’s transformation into a super power in the energy sector affect its relations with the US? The American participants said that the worst scenario will be when Russia gives the west its back when it becomes one of the world superpower in the field of energy like Saudi Arabia.

Yemen Cancels Building Five Nuclear Reactors

The Yemeni government has cancelled an initial agreement with an American company for building five nuclear reactors for generating electricity power with a total cost of $15 billion.

The Increase of Dolphin’s Revenues of the Qatari Gas

Dolphin Energy Company has expected an increase of its exports of the Qatari gas to the UAE by two billion cubic meters a day by next February which represents the double of its current volume.

An Increase of Tunisia’s Exports of Foreign Currency and a Decline of Inflation Percentage

A statement issued by the Tunisian Central Bank has showed a decline of the net reserves of foreign currency by $7.3 bn by the end of this month compared to $7.5 bn compared to the same period of 2006.

European and American Companies Complete Building a Wall between Saudi Arabia and Iraq

Documents published by Reuters showed that the two European EADS, and Thales companies, and the American Rytheon Company were among the companies which offered to build a border wall between Saudi Arabia and Iraq. Among these companies were 14 local and international companies.

Small Indexes

- A report issued by the German Federal Union Bureau has revealed that the volume of saving by the German citizen during the first half of this year has reaches $1428.
- The revenues of tourism sector in Tunisia since the beginning of this year till the 20th of this month have risen by 8.3% compared to the same period of last year.
- Oil prices have risen on Wednesday exceeding $93 per barrel following governmental statements which showed a drop it the reserves of crude oil with an unexpected average estimated at $93 last year contrary to expectations of their rise.

Companies’ Indexes

- The Holding Mashari al Kuwait (Kuwait Projects) KIBKO, has announced that it achieved an increase by 108% of its net profits during the first nine months of 2007, reaching $452 m.
- Dubai Islamic Bank said that it achieved strong financial results during the first nine months of this year by an increase of 86%, reaching 1.9 billion dirhams by the end of the first nine months of last year.
- The National Abu Dhabi Energy Company (Taka) said that the profits of the third quarter of this year have risen by two doubles following the increase of revenues through acquisitions in Canada and Holland.

Bids

- The Egyptian Janoub al Wadi Cement Company said that it will establish a joint company with the Egyptian Kuwait holding company and others for building a new cement company with a total capital of $108.9 m.
- The International Dubai Seaports Company said that it bought a share of 90% of the Egyptian Company for exchanging containers in return for $640 m.

Indicators is a daily economic watch newsletter about the Near East, issued by New Orient News agency in Beirut, Lebanon. It is available on Voltairenet.org in Arabic and English. Also worth a read is Tendencies, the daily Near East political watch newsletter, available in Arabic, English and French languages.