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The project to develop and build new was also supported by a similarly strong gain The rationale for India’s membership
homes in Ahmadi represents the first stage in manufacturing sector production gaining of IEA is that it is the world’s third-largest
within the framework of a huge housing by 5% y/y in August. consumer of energy. According to the IEA,
project. The future stages of this project While electricity and gas output retreated India’s oil demand would double in the next
include the construction of 1,800 housing by 4% y/y in August erasing some of the two decades. This entails deepening strategic
units with integrated service facilities, industrial production gains made by the energy ties between India and Gulf countries,
which would achieve the company’s goal of mining and quarries sub-index. which are the main source of India’s oil and
upgrading the city of Ahmadi and providing On monthly basis, IPI’s 3.6% m/m rise was gas requirements.
adequate housing care for its employees. broad-based in August 2021. The powerful “As a natural corollary to the India-IEA
The new homes have been designed to mining and quarries sector output increased Strategic Partnership, Dr Birol invited India
meet all the living needs of their residents, by 1% m/m due to higher m/m oil production to deepen its cooperation with the IEA by
while at the same time preserving the in response to rising demand. While growing becoming a full member,” the Indian Minister
distinctive architectural and heritage character global demand for petrochemicals boosted said after his talks.
of Ahmadi City. manufacturing sector production by 13% India has been an “Association Country” of
It is worth mentioning that Ahmadi City, m/m. Likewise, electricity and water supplies the IEA since 2017 and signed a “Framework
since its inception, has been associated with increased by 4.4% m/m in August on rising for Strategic Partnership” with the IEA in
KOC, which has a leading position in the domestic industrial and consumer demand. January.
society and has wellknown economic and BNE WAM
social roles.
The city will witness a large-scale India to raise its Strategic Abdul Jabbar sees crude
development movement in the near future
within the framework of the Ahmadi City Petroleum Reserve by 10 prices topping out at $85
Development Project, which is one of the
vital projects of the state. This project aims to times Oil prices should stabilize around current
rehabilitate and develop the city in line with levels, reflecting a balanced market, Iraqi oil
its historical status and of being the oil city in India is set to expand its Strategic Petroleum minister Ihsan Ismaael said Oct. 13.
Kuwait. Reserve ten-fold as part of a step-by-step “The market should be balanced within
ARAB TIMES process of becoming a full member of the the second half,” Ismaael said on the sidelines
International Energy Agency (IEA). of the Russia Energy Week conference in
The IEA requires member countries to Moscow. “For us, it’s balanced. For consumers,
OIL maintain national strategic oil reserves of at we think the price will not be higher, and it
least 90 days requirement. India’s strategic oil will be balanced around $85/b, we hope.”
Higher oil output boosts reserves currently account for only 9.5 days of at three-year highs in recent days, with the
S&P Global Platts has assessed Dated Brent
its needs. Hence a steady, but gradual raise in
Saudi industrial production the level of reserves. benchmark reaching as high as $84.43/b on
Oct. 11.
Oil from Abu Dhabi produced by the Abu
in August 2021 Dhabi National Oil Company (ADNOC) now on the producer bloc to release more crude
The rally has prompted the US to call
accounts for the main foreign component of
Saudi Arabia’s industrial output surged higher India’s reserves in Mangalore. An agreement into the market to cool off prices -- a request
in August 2021 with the Industrial Production to store Abu Dhabi oil in India was signed rebuffed by OPEC and its allies in their
Index (IPI) growing strongly by 3.6% m/m during the visit of Prime Minister Narendra meeting Oct. 4, when they agreed to stick to
and 5.8% y/y, reported the General Authority Modi to the UAE in February 2018. their original plans to increase output by just
for Statistics. Steps to raise the level of India’s Strategic 400,000 bpd.
The y/y growth in IPI was primarily driven Petroleum Reserve are a sequel to a meeting Internal OPEC+ analysis seen by Platts
by a 6.5% y/y growth in the heavy-weight this week between India’s Minister for indicates that while the market is currently
mining and quarries sub-index, which has a Petroleum and Natural Gas, Hardeep Singh undersupplied, a surplus could emerge as
three-quarters weighting in the overall index. Puri and the IEA’s Executive Director Fatih soon as December, and delegates have said the
Saudi Arabia’s increased crude oil output Birol. During their discussions, the Executive alliance prefers a more conservative approach,
from 8.9mn barrels per day in August 2020 to Director invited India to become a full given the uncertainties around recovery rates
9.5mn barrels per day in August 2021. The IPI member of the IEA. from the pandemic in key regions.

P12 www. NEWSBASE .com Week 41 13•October•2021