Business

AMMAN – Jordan Chamber of Commerce President Nael Kabariti on Tuesday met an official from the Brazilian embassy in Amman and discussed prospects for economic bilateral ties.

The two sides also discussed preparations to organise a visit for  Jordanian businesspeople to Brazil in order to explore opportunities for further cooperation.

Kabariti underlined the importance for Brazil to benefit from the Kingdom's distinguished geographical location and political stability for investment, especially in promising sectors, such as ICT, mining, medical tourism and pharmaceuticals.

For his part, the Brazilian official highlighted his country's interest in importing phosphate and potash from Jordan. 

KUWAIT CITY — More than 30 per cent of young Arabs are jobless because of unrest in many Arab nations and not enough investment, a top labour official said on Sunday.

"The unemployment rate among Arab youth until the age of 30 years exceeds 30 per cent," the director general of the Arab Labour Organisation, Ahmad Mohammed Luqman, told AFP. "Unrest and a lack of investments have boosted the number of jobless."

He said many graduates fail to find employment because their specialisations are not needed by private sector.

"Due to unrest in several Arab nations, the number of Arabs without jobs has jumped two million since 2011, making the total number of unemployed Arabs at 20 million," Luqman indicated on the sidelines of the annual Arab labour conference.

He told the opening session of the five-day gathering in Kuwait City that unemployment in the Arab world hit 17 per cent last year, "three times higher" than the global average.

"It appears that jobless numbers will rise this year and the next," Luqman said, without providing specific figures.

Guy Ryder, director general of the International Labour Organisation, warned that the youth unemployment problem is a threat to stability.

"Arab countries face the urgent and unavoidable task of responding to an acute crisis of unemployment," he told the conference. "Failure to provide them with opportunities for decent work is a potent threat to the stability of our societies."

Since 2011, uprisings have swept over Tunisia, Egypt, Libya and Yemen, forcing out veteran strongmen.

Protests calling for change have also shaken Bahrain in the Gulf.

In Syria, the uprising aimed at ousting President Bashar Assad has become a civil war that has killed more than 220,000 people.

Arab economies are estimated to be growing at between 2-3 per cent, but annual growth of around 6 per cent must be achieved if unemployment and poverty are to be contained.

AMMAN — 2014 was a distinguished year for Siniora Food Industries Company in all aspects, shareholders were told in the 6th annual report which was disclosed to the Amman Stock Exchange.

Chairman Tareq Omar Al Aqqad wrote in a foreword that sales last year reached JD43.2 million, 13 per cent higher than the JD38.2 million posted in 2013.

The company is in the business of  producing, distributing and selling processed meat products in addition to the import of raw materials.Products  include Cold Cuts, Roast and Luncheon, among others.

The report showed that Jordan accounted for JD20.6 million of the total sales last year whereas sales abroad stood at JD22.6 million.

Although the sales abroad increased by 10.2 per cent, the gross profit generated from the exports was higher by 63.3 per cent as it amounted to JD9.8 million compared to JD6 million gross profit derived from domestic sales.

Exports had the advantage of lower costs which stood at JD12.8 million compared to JD14.5 million in costs for the sales in the local market taking into consideration that the business domestically was JD2.1 million less than the sales abroad.

Aqqad highlighted the Saudi market where the company achieved a 30 per cent growth in sales that exceeded $8 million in 2014.

Sales to other regional markets grew by 14 per cent despite the exports' halt to some neighbouring countries due to unrest.

"What helped us achieve this progress was the growth in all Gulf Arab markets and the launch of new cold cuts in Lebanon," Aqqad said.

He gave a breakdown of the sales pointing out that those under the Unium trademark in Jordan exceeded the 2013 level by 10 per cent , widening the company's market share in the Kingdom to more than 53 per cent of the overall volume of processed meat.

Under the Siniora trademark that specialises in cold cuts, the growth in the Jordanian and Palestinian markets was 7 per cent and 17 per cent respectively.

"Thanks to the growth of our sales in the Gulf countries and to the World Food Programme tender for Luncheon supplies, we achieved unprecedented results," the chairman said.

According to the report, Siniora Food Industries enjoys between 25-30 per cent share of export markets depending on the country and the distribution channel.

The export markets were listed as Saudi Arabia, Palestine, Lebanon, United Arab Emirates, Kuwait, Qatar, Oman, Bahrain, Iraq, Yemen and Cameroon in west Africa. 

He indicated in the foreword that net profit surged by 62 per cent reaching JD5.4 million, up from JD3.3 million generated in 2013. 

A breakdown of last year's net profit showed that exports brought in JD3.7 million, 117.6 per cent more than the local market which contributed JD1.7 million.

Siniora's gross profit, before deducting selling and administrative expenses as well as financing costs and various provisions, was higher at JD15.9 million from JD12.5 million.

The chairman also mentioned that net shareholders equity in 2014 rose in 2014  by 23.5 per cent to JD25.3 million, compared to JD20.5 million in the previous year.

The company's capital investment at the end of last year amounted to JD19.3 million.

Capitalised at JD15 million after increasing the capital from JD12.6 million last year, the balance sheet as of December 31,2014 showed total assets at JD41.5 million, up from JD39.1 million at the 2nd of 2013.

Of the total, JD19.3 were net fixed assets, JD2.2 million were intangible assets and deferred tax and JD20 million were current assets.

Current liabilities, including JD1.6 million in short term debt, declined from JD10.2 million at the end of 2013 to JD9.3 million last year.

Long-term debt also dropped from JD7.5 million to JD5.9 million in 2014 bringing total liabilities to JD16.2 million when also taking into consideration the provision for end of service indemnity.   

According to the balance sheet, mandatory reserve and retained earnings totalled JD10.3 million from JD7.9 million in 2013.

The Arab Palestinian Investment Company (APIC) controls Siniora Food Industries Company with a 61.2 per cent stake followed by Aram Financial Investment with a 30.3 per cent equity, and Arab Bank MENA Fund with 2.4 per cent.

Around 520 employees work at Siniora's offices and factories in Amman,  Jerusalem, Riyadh and Jeddah noting that the subsidiaries include Siniora Food Industries Palestine and Siniora Saudi Trading Company. 

Siniora Food Industries Algeria is under liquidation.

The company has recently opened a branch in Aqaba in addition to the one in Irbid which was opened in 2010.

The general assembly of shareholders will hold an ordinary meeting today (Tuesday) to consider the distribution of cash dividends at a rate of 10 per cent as recommended by the board of directors.

AMMAN —  Jordan Ahli Bank will be distributing JD17.5 million in cash dividends at a rate of 10 per cent to shareholders at a rate of 10 per cent, following an ordinary general assembly meeting that approved the recommendation by the board of directors.

The bank also issued its corporate social responsibility report for 2014. Bank Chairman Omar Razzaz noted that the bank's net operational revenues increased by 7 per cent last year, reaching JD102.4 million.

AMMAN — The European Bank for Reconstruction and Development (EBRD) announced Sunday in a press statement that  is boosting export and import activities in Jordan by providing a $10 million trade facility to Capital Bank Jordan (CB) under the EBRD’s Trade Facilitation Programme (TFP).

“The TFP facility will enable CB to provide a wider range of trade finance products and develop new products," the press release said.

"The EBRD’s support will also allow CB to reach out to more companies engaged in cross-border trade." Under this facility, the EBRD will issue guarantees in favour of international confirming banks, taking the political and commercial payment risk of international trade transactions undertaken by these banks in the countries where the EBRD works.

Heike Harmgart, EBRD head of office in Jordan, said: “Supporting international and regional trade is key for Jordanian economy.

” Haytham Kamhiyah, chief executive officer of Capital Bank, commented: “This programme will allow us to expand our  services and strengthen our relations in international trade finance as well as with joint venture banks in this programme and the countries covered.” Technical cooperation projects will accompany the trade finance facility, to transfer know-how and share best practice.

AMMAN — Jordan's foreign trade index, covering exports and imports, rose 3.8 per cent last year reaching JD23 billion, compared to JD21.3 billion in 2013, according to a report issued by Amman Chamber of Commerce (ACC).

The report showed that Jordanian exports in 2014 increased by 7.5 per cent to JD5.2 billion compared to JD4.8 billion the year before.

National exports accounted for 33.3 per cent of the overall foreign trade in 2014, compared to 22.5 per cent in 2013, according to the report, which noted that re-exports declined last year by 2.8 per cent to JD790 million from JD813 million in 2013.

According to the report, re-exports constituted 3.5 per cent of the 2014 total foreign trade volume, compared to 3.8 per cent the year before.

The value of Jordan's imports last year amounted JD16.1 billion, 3.1 per cent higher than the figure in 2013 when the value totaled JD15.7 billion.

The ACC calculated the imports share of total foreign trade at 73 per cent in 2014, slightly lower than the 73.6 per cent in the previous year. 

The Grand Arab Free Trade Zone topped the list of commercial and economic bloc partners to the Kingdom in 2014 with 35.1 per cent share of the overall foreign trade volume, standing at JD7.8 billion. 

Regarding Arab countries receiving Jordanian exports, Iraq topped the list with JD829 million, while Saudi Arabia topped the list of exporters to Jordan with JD3.2 billion, the report added.

AMMAN — The Islamic Corporation for the Development of the Private Sector (ICD) announced last week in a press statement that it signed an advisory agreement with the  Ministry of Finance.

ICD, the private sector arm of IDB Group, said  the ministry has mandated it as a transaction technical support in the proposed debut domestic sukuk offering.

“The mandate letter was signed between Finance Minister. Umayya Toukan and ICD’s Chief Executive Officer Khaled Al Aboodi,” the press release said. 

“The dinar-denominated Sukuk, expected to be issued this year, would be used as an instrument to absorb excess liquidity [estimated to be 1.4 billion dinars] held by the Kingdom’s for Islamic banks,” said Toukan. ICD aims to develop member countries’ capital markets, specifically Islamic debt capital markets through Sukuk.

“By creating domestic Islamic capital market, the member country would be able to provide an alternative to its treasury bills for Islamic financial institutions to invest in. Although it is not practically common for global Sukuk arrangers, we took responsibility to fill this gap in the market which naturally falls within the developmental principals of ICD,” Aboodi said.

AMMAN — Several deals clinched in Jordan, Morocco, Egypt, Palestine, United Arab Emirates and Kuwait are expected to generate JD20 million in income for Al-Faris National Company for Investment and Export. Operating under the trade name Optimiza, Al-Faris is a public shareholding company that provides fully integrated solutions and services in four areas: consulting, technology , outsourcing and training.

The company’s operations and solutions are spread over four major units: business, infrastructure, intellectual property and healthcare. 

According to the company’s annual report, sent to the Amman Stock Exchange to fulfill a disclosure requirement, the contracts valued at JD20 million are sevenfold the business volume at the start of 2014.

Detailing some achievements, Al-Faris Chairman Rudain Kawar told the shareholders in a foreword that a single deal with Saraya Aqaba for an information technology project is double the general earnings of the company.

The project, to be completed in two years, entails supplying the mega resort in Aqaba with modern smart building systems, security and surveillance systems, and the necessary technological infrastructure in general.    

Kawar also mentioned the application of programmes, owned by Al-Faris as intellectual property rights, such as the system to manage a hospital in Kuwait.

Under an deal with Al Omooma Hospital, Al-Faris will supply the Kuwaiti maternity and pediatric hospital with the hospital management system eHOpe to support its administrative and financial operations. 

In the foreword, the chairman said that an arbitration court in Dubai awarded the company $3 million in compensation for damages, as well as interest and fees, related to its acquisition of the Saudi firm Al Royah from its previous owners Al Malaz Group (Saudi Arabia) 

A row erupted between the two entities in 2010/2011 when Al-Faris claimed it was defrauded with an inflated price it paid for a 70 per cent stake in Al Royah.

“We expect more liquidity to flow once the compensation is fully implemented,” he said, noting that most of the losses that Al-Faris incurred were due to financing fees and exceptional provisions taken to cover diminution in the value of various investments and intangible assets such as trademarks and patents.

He expressed hope that the Jordan Securities Commision will soon lift the trading suspension of Al Faris shares allowing investors to trade the company’s shares on Amman Bourse.   

The company’s balance sheet as of December 31, 2014, shows an accumulated JD8.9 million in losses. Last year, the loss amounted to JD2 million compared with a JD1.7 million loss in 2013.

“For another year we managed to achieve an operational profit in our activities in Jordan,” Kawar said, noting that the gross profit margin was higher. 

“But still, it was not enough to arrive at a net profit for the company,” he added.

According to the income statement, Al-Faris  last year generated JD1.4 million gross profit compared to JD1.5 million in 2013, although the overall earnings were lower at JD9 million, 24 per cent down from JD11.8 million recorded in 2013.

The report highlighted the increase of the company’s capital to JD16 million in 2014 indicating that Consolidated Contractors Company Ltd. Jordan, and Al Numeir Investment Company joined major shareholders with a 25 per cent and 37.85 per cent stake as they invested JD4 million and JD6 million respectively last year.

The financial support  will contribute to lowering debts, settling obligations to banks, and enabling the company to manage its operations.

Notes to the consolidated financial statements showed Al-Faris owing JD10.3 million to seven banks compared to JD8.7 million at the end of 2013.

Of the total amount, JD1.6 million is current and JD8.7 million is long-term.

The report listed the lack of sufficient liquidity as the top impediment hampering the company from carrying out its operations as expected.

Detailing the risks that the company faced in 2014 or could face this year with material consequences, the report mentioned inability to expand operations and increasing profits needed to implement plans for spreading out in some Arab markets.

It also mentioned delays in repaying banking dues which overburden the company with high interest rates besides inability to meet obligations towards suppliers or to find mechanisms for financing new purchases.

“These constraints make it difficult to easy payment terms from key suppliers and leave the company with no option but to buy from local distributors at higher prices,” the report explained.

Besides the uncertainties related to supplies, marketing and sales, liquidity shortage heightens risks of a freeze on banking facilities, a loss of highly qualified personnel if their work is not timely compensated financially, and inability to launch promotional campaigns.  

Al-Faris lamented regional turbulence for its negative impact on the company’s growth, describing neighbouring countries as main markets for its sales of programmes and technological solutions which mostly provide a high profit margin and good return on investments.

Financially, the balance sheet as of December 31, 2014, showed total assets at JD29.9 million (JD31.9 milliion in 2013) and total liabilities at JD22.7 million (JD28.7 million in 2013).   

According to the annual report, the company’s capital investment was JD19.3 million at the end of last year spread over eight subsidiaries, some of which are inoperative.

The subsidiaries are AlAhlia for Computers Company (100.00 per cent), Gulf Electronic for Technical Solutions Company (100.00 per cent), Foster Electronics Company (100.00 per cent), Optmiza Morocco LL (100.00 per cent), Arigon Bermuda (Optimiza Consulting) (100.00 per cent), Optimiza for Computer Systems (100.00 per cent), Advanced Training Company ( Optimiza Academy) (100.00 per cent), Alliance Software Inc (92.00 per cent), and Royah (70.00 per cent).

GUANGZHOU, China — More than half of China’s exporters expect a trade slowdown to last at least six months as production costs climb and European demand weakens, according to a Reuters survey at the country’s biggest trade fair.

On the opening day of the biannual Canton Fair in the Pearl River Delta, the workshop of the world, the cavernous halls were filled with international buyers, but many, especially Europeans hit by a weaker euro, appeared to be ordering fewer goods and haggling hard with manufacturers.

The fair is taking place just after economic data showed China’s exports unexpectedly fell 15 per cent in March and its economy grew at its slowest pace in six years in the first quarter.

A Reuters survey of 90 mostly small to medium-sized manufacturers of goods from consumer electronics to heavy machinery and car parts showed many at the fair are expecting tough times.

On average respondents expected their orders to rise just 3.1 per cent in 2015, while production costs, mostly labour and materials, would climb 6.5 per cent.

While 43 per cent of those polled said they expected an export rebound within six months, 24 per cent said the downturn would continue for at least six months, and a further 33 per cent put the timeframe at more than a year.

The fair has long been a barometer for the economy of China, which has been the world’s biggest exporter since 2009, but the country’s dominance is under threat as the currency strengthens, labour costs soar and authorities shift from an excessive reliance on exports.

Many respondents reported a continued tightness in the  labour market as skilled young workers become harder to find and the economy rebalances towards consumption and services.

Hard bargain

Some European buyers, hit by a sharp depreciation in the euro against the dollar and China’s yuan, were pushing for discounts, despite exporters looking to raise prices an average of 4.6 per cent this year, the poll showed.

“There are still buyers,” said Zhu Xiangkui, a manager at a stall selling batteries, as he shook his head. “[But] most of them have the mentality of bargaining when they arrive.”

Juan Banovio, a veteran buyer from Spain with a retail business in Madrid, said some Chinese manufacturers had agreed to slash prices by 8-10 per cent as price competition intensifies and buyers become more discerning.

“They understand the pressure we face in Europe... and they’re trying to help, but not much. Most European buyers are ordering less,” said Banovia at a stall selling brightly coloured vacuum cleaners.

Since the 2008/09 financial crisis, China’s exporters have struggled with a strengthening currency and rising labour costs, with global supply chains shifting increasingly inland or to cheaper hubs such as Vietnam and Bangladesh.

While many factories said the impact of yuan appreciation was not as significant over the past 12 months compared with previous years, the poll found that on average manufacturers said they would be in the red if the yuan hit 5.6 to the greenback, compared with about 6.2 now.

“Right now the exchange rate [the yuan] is stable, and that’s good,” said George Chen, a factory manager with Qiyun Audio that manufactures amplifiers. “But if it goes below 6 [to the dollar] that would mean all factories would have nowhere to go, or at least 80 per cent of factories couldn’t survive.”

Recent currency fluctuations, however, have offset some costs for Chinese factories, making some imports cheaper, including raw materials and precision parts from Europe or Japan.

Some 40 per cent said they were pessimistic about their factory’s prospects, while 59 per cent were neutral.

“We all have a kind of pessimism,” said Lu Jie, a vice general manager of YSD, a metal-forming machinery factory in the lower-cost area of Hubei in central China. “We have orders, but the environment is still so tough.” 

NEW YORK — Global oil prices edged back from a 2015 high on Thursday as traders took some profits from a weeks-long rally and the Organisation of the Petroleum Exporting Countries (OPEC) reported a sudden surge in March production.

US crude retraced some of the previous day’s nearly 6 per cent gains that followed government data showing the smallest weekly inventory build since the week ending January 2, suggesting that months of oversupply may be starting to ease.

But on Thursday, OPEC said in its monthly report that its own output surged by 810,000 barrels per day (bpd) in March, even as low prices start to weigh on US production.

Brent crude for June delivery fell 49 cents to $62.83 a barrel by 1606 GMT, after opening at $63.29, posting a front-month Brent peak price for the year.

The June contract settled the previous session at a $3 premium to the May Brent contract, which expired on Wednesday.

US May crude fell 57 cents to $55.82, having dropped to $55.07 intraday.

“There is some profit taking, but the confirmed OPEC production increase... has to weigh on prices to some degree,” said John Kilduff, partner at Again Capital LLC in New York.

Brent’s premium to US crude was back above $5 a barrel, now comparing June contracts, after the spread narrowed to $3.34 intraday on Wednesday.

Disappointing US economic data also helped pressure oil. US housing starts rose far less than expected in March and permits recorded their biggest drop since last May, while initial jobless claims rose last week.

Wednesday’s data showing the small build in US crude oil stocks followed reports indicating production in the United States, including in shale play powerhouse North Dakota, was beginning to pull back as the price retreat since June weighs on producers.

Talks between OPEC and other major producers triggered speculation about deals to cut production and supported oil prices on Wednesday, though most analysts said an agreement was unlikely.

Reuters technical analyst Wang Tao told Reuters Global Oil Forum that Brent could rise towards $70 a barrel in the near term, but that a sharp downturn could happen after that.

Separately, the International Energy Agency (IEA) on Wednesday cut its supply forecast for non-OPEC countries, citing downturns in North America and the “worsening conflict” in Yemen.

The Paris-based agency cut its 2015 forecast for non-OPEC output by 120,000 bpd to 630,000 bpd “on the back of a slightly more negative outlook for the US LTO (light tight oil) production and Canadian non-oil sands output, and of the fallout from the worsening conflict in Yemen.”

“According to our latest estimates, fighting in Yemen has halved production to about
60,000bpd in April, from an already depressed level of roughly 120,000bpd,” the IEA indicated in its monthly report.

Although Yemen is a small oil producer accounting for a fraction of global output with negligible effect on prices, it borders Saudi Arabia and affects other Gulf markets.

“Recently launched Saudi air strikes, while not targeting energy infrastructure directly, have led international oil companies active in the country...  to practically halt operations and pull out expatriate staff,” the report said.

“The start of a Saudi-led military campaign against Yemen in late March sparked concern of possible supply disruptions through the area’s vital sea lanes,” it added.

In North America, the IEA cited “signs that US LTO production month-on-month growth will grind to a halt as early as May”, and noted a “continued drop in the number of oil rigs... reductions in capital expenditures, and a credit crunch among LTO producers in the US”.

In Canada, the IEA pointed to “falling drilling rates and an increasing backlog of uncompleted wells”.

Even though oil prices have more than halved in just six months, the OPEC oil group has refused to cut its supply volume. 

Analysts believe this is because the organisation wants to use cheaper prices to force new US shale producers off the market.

The effects of plunging oil prices on demand and supply will continue to leave the market out of kilter, the agency predicted, saying: “In some ways, the outlook is only getting murkier.”

Notably, it said uncertainty persists over whether and when Iran will regain its status as a key player, since the international deal curbing Tehran’s nuclear programme is yet to be finalised, the deadline is June 30, and the speed at which sanctions against Daesh will be lifted is unclear.

While Iranian Supreme Leader Ayatollah Ali Khamenei says all sanctions must be removed immediately upon a final agreement, Washington wants them to be lifted gradually.

Iran back by 2016

In any case, the breakthrough in negotiations “may already have encouraged other producers to hike supply and stake out market share ahead of Iran’s potential return”, the IEA said, adding that the industry consensus was that “significantly higher volumes” of Iran oil will be flowing back into the market in 2016.

Iran is itching to return to OPEC’s number two slot after Saudi Arabia as soon as sanctions are removed, the agency remarked.

“Billions of dollars worth of spending on its vast oil fields could enable Tehran to boost capacity to around 4 million bpd towards the end of the decade,” the report indicated.

It noted that the ink was not yet dry on the framework agreement when Tehran sent a high-level delegation to China for talks on oil sales and investment opportunities.

The IEA also raised its forecast for world demand by 90,000 bpd to 93.6 million bpd.

It attributed “the notable acceleration” on 2014’s 700,000 bpd growth to cold temperatures in the first quarter of this year “and a steadily improving global economic backdrop”.

Elsewhere, Russia has been holding active, “unprecedented” consultations with OPEC, a senior  official said on Wednesday, a clear signal of Moscow’s strive for higher oil prices.

Russia has stepped up contacts with OPEC after oil prices plunged last year, however it has dismissed any suggestion it might cut output to prop up prices, saying it is technically impossible to idle production due to the harsh climate in Siberia, the heartland of Russian oil production.

Russia, one of the world’s top oil producers, expects its economy to shrink by 3 per cent this year, following an almost 50 per cent drop in oil prices since their $115 per barrel peak in last June.

The fall in price of oil, which together with natural gas account for over a half of Russia’s state budget revenue, has been compounded by a refusal by OPEC and its kingpin Saudi Arabia to cut output.

“The Russian energy ministry has been in consultations with  OPEC and Latin America countries, the recent consultations have been unprecedentedly active. This work should continue,” Deputy Prime Minister Arkady Dvorkovich told a meeting at the energy ministry.

Alexander Novak, Russia’s energy minister, told reporters he had spoken to OPEC Secretary General Abdullah Al Badri several days ago.

“On the whole, we are in a dialogue, it has been formalised. As you know, we meet twice a year, discuss the perspectives for oil market development. We discuss various issues, local [issues], the ones which relate to shale oil production, oil refining, tax changes in different countries,” he said.

But an OPEC delegate from a Gulf oil producer poured cold water on Moscow’s statements on cooperation.

“The Russian comment does not mean a joint cut in production. It just means that there is concern over price, but in the end, there might be no action taken,” the official said.

Another Gulf delegate dismissed the idea of a joint cut.

Last month, Russia’s Novak told Reuters he would meet OPEC in June to discuss the impact of shale oil on global markets,  days before the group decides whether its policy of high output is sufficient to stifle the US energy boom.

Saudi state news agency SPA reported on Tuesday that Saudi Arabian Oil Minister Ali Al Naimi discussed oil markets with Russia’s ambassador to Riyadh, Oleg Ozerov.

OPEC’s headquarters in Vienna had no comment on Wednesday.

In November, Russia said after meeting with a number of OPEC ministers that it would not cut output even if prices fell below $40 per barrel. Novak said the current oil price of $60 per barrel was comfortable for Russian producers.

OPEC has been annoyed by the Russian position and has said it will not cut its production unless non-OPEC producers make similar moves first.