OPEC+ is supporting a potentially disastrous rise in oil production?
Oil prices have fallen fast since the 3 March announcement from OPEC+ that it will go ahead with a planned rise in its collective oil production. The prospect of increased supply from the group has added to the bearish tone created by rising supply from other key producers and from uncertain demand projections from the world’s biggest importer of oil, China. Lower oil and gas prices is precisely what Donald Trump wants to see in his second term as U.S. president, but with budget breakeven oil prices much higher than even current levels, many may wonder why OPEC+ members are supporting such a potentially financially disastrous production rise.
So economically vital is it to most OPEC+ members that oil prices are kept at the higher end of recent historical levels that the organisation has not increased production since 2022. In fact, at that point it had begun a series of collective oil production cuts to support oil prices, totalling around 5.85 million barrels per day (bpd), or around 5.7 percent of global supply. As recently as December, the cartel extended its previous round of 2.2 million bpd in output reductions to the end of this quarter. Industry estimates are that the first phase of the removal of these production cuts will total about 138,000 bpd in April, with much more to come.
Qatar begins supplying natural gas to Syria
Qatar has begun providing natural gas to Syria through Jordan to tackle the country’s electricity shortage and power cuts, state news agency QNA has reported.
In a statement issued on Thursday, Qatar said the initiative comes as part of a deal signed with Jordan and in collaboration with the United Nations Development Programme.
According to the agreement, Qatar will provide natural gas supplies “generating power from 400 megawatts of electricity daily and gradually increase production at the Deir Ali power plant in Syria”.
The electricity will be distributed to several Syrian cities, including the capital Damascus, Rif Dimashq, As Suwayda, Daraa, Al Qunaitra, Homs, Hama, Tartous, Latakia, Aleppo, and Deir ez-Zur, it added.
“This initiative represents a pivotal step towards meeting the Syrian people’s energy needs and reflects a shared commitment among all parties to work together for the benefit of the region,” said Fahad Hamad Hassan Al-Sulaiti, who heads the Qatar Fund for Development, according to QNA.
Sugar stocks surge up to 20pc
Shares of sugar companies surged up to 20 percent during Tuesday’s intra-day trade, following various sugar bodies indicate decline in sugar production in India.
Recently, the National Federation of Cooperative Sugar Factories (NFCSF) revised the sugar production estimates to 259 lakh metric tonnes (LMT) for the sugarcane crushing season of 2024-25. The recent estimate is 6 lakh tonnes lower than the earlier projection of 265 LMT. In the previous season, sugar production was 319 lakh tonnes. Also, ISMA had reduced net sugar production estimates to 264 lakh tonnes.
Shares of Uttam Sugar Mills have locked in 20 percent upper circuit at Rs 230.90 on the NSE after India Ratings and Research (Ind-Ra) said the company’s earnings before interest, tax, depreciation and amortisation (Ebitda) is likely to recover in FY26, led by an increase in both sugar and ethanol sales, an uptick in sugar prices as well as its capex towards improving operational efficiency. While ethanol sales remained flat at 45.5 million litres (mnL) in 9MFY25 (9MFY24: 46.8mnL), the allocation in the first two cycles of ethanol supply year 2025 (ESY25) is significantly higher, indicating a revival after the government lifted the restrictions of diversion of sugar towards ethanol. While the lower recovery could lead to reduced production in FY25, Ind-Ra expects the net working capital to remain range-bound given the lower sugar sales. This, coupled with a lower EBITDA, could lead to an increase in the net leverage in FY25. With a gradual reduction in the inventory and the recovery in the EBITDA, the net leverage is likely to improve in FY26.
Iron ore mining market to achieve US$ 620 bn by 2031
The global iron ore mining market is poised for significant growth, projected to reach a valuation of US$ 620 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 8.1 percent during the forecast period from 2024 to 2031. This expansion is primarily driven by escalating global steel demand, particularly from rapidly industrializing nations such as China and India, coupled with advancements in mining technologies and robust infrastructure development. Iron ore, a fundamental raw material for steel production, has experienced notable demand fluctuations over the past decade. The market’s growth trajectory is closely linked to industrialization levels in emerging economies. China, for instance, has accounted for over 62 percent of global iron ore demand in recent years.
United states’s pulses market to grow steadily
Driven by increasing demand for pulses in the United States, the market is expected to continue an upward consumption trend over the next decade. Market performance is forecast to accelerate, expanding with an anticipated CAGR of +1.4 percent for the period from 2024 to 2035, which is projected to bring the market volume to 1.7M tons by the end of 2035. In value terms, the market is forecast to increase with an anticipated CAGR of +2.1 percent for the period from 2024 to 2035, which is projected to bring the market value to $1.6B (in nominal wholesale prices) by the end of 2035. In 2024, consumption of pulses in the United States reduced sharply to 1.5M tons, falling by -22.9 percent compared with 2023. Overall, consumption, however, saw a relatively flat trend pattern. Pulses consumption peaked at 2.3M tons in 2018; however, from 2019 to 2024, consumption stood at a somewhat lower figure.