Aswat Asharq Al-Awsat :

Aswat Asharq Al-Awsat : Kazakhstan Prepares Plan to Compensate for Oil Overproduction

Kazakhstan raised oil and gas condensate production in June by 4% from May on a daily basis to 7.24 million metric tons. Reuters
Kazakhstan raised oil and gas condensate production in June by 4% from May on a daily basis to 7.24 million metric tons. Reuters
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Kazakhstan Prepares Plan to Compensate for Oil Overproduction

Kazakhstan raised oil and gas condensate production in June by 4% from May on a daily basis to 7.24 million metric tons. Reuters
Kazakhstan raised oil and gas condensate production in June by 4% from May on a daily basis to 7.24 million metric tons. Reuters

Kazakhstan will compensate for oil output exceeding its OPEC+ quota in the first half of this year by September 2025, its energy ministry said on Monday, adding that it has prepared a detailed plan for gradual compensation.

The country is among eight OPEC+ countries that had pledged extra voluntary output cuts. It did not provide any output figures, Reuters reported.

"Kazakhstan will make every effort to comply with its obligations and compensate for overproduction in accordance with the intended compensation plan," the ministry said in a statement.

Kazakhstan raised oil and gas condensate production in June by 4% from May on a daily basis to 7.24 million metric tons, exceeding its quota within the OPEC+ group of oil producers, according to two sources and Reuters calculations.

OPEC+ said last month that it would gradually phase out the production cuts over the course of a year from October 2024 to September 2025.



Aswat Asharq Al-Awsat : Gold Drifts Higher as US Rate Cut Optimism Boosts Appeal

A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)
A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)
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Gold Drifts Higher as US Rate Cut Optimism Boosts Appeal

A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)
A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)

Gold prices nudged higher on Tuesday as comments from Federal Reserve Chair Jerome Powell bolstered the case for a September rate cut, while investors awaited more US economic data for further monetary policy cues.

Spot gold rose 0.1% to $2,423.89 per ounce by 0140 GMT. On Monday, prices hit their highest level since May 20, when bullion scaled a record peak of $2,449.89.

US gold futures were flat at $2,429.90.

"Powell continued to lay the groundwork for upcoming policy easing. A rate cut in September is now fully priced in by markets, which may keep sentiments in gold prices well-supported in the lead-up," said IG market strategist Yeap Jun Ron, Reuters reported.

Powell said on Monday the three US inflation readings over the second quarter of this year "add somewhat to confidence" that the pace of price increases is returning to the Fed's target in a sustainable fashion, remarks that suggest a turn to interest rate cuts may not be far off.

When interest rates decrease, the allure of non-yielding bullion typically increases.

Investors were awaiting US retail sales data due at 1230 GMT on Tuesday and comments from Fed governors Christopher Waller and Adriana Kugler later this week for further direction.

A subdued retail sales report may underpin gold prices on dovish Fed bets, while a break to a fresh high will mark a continuation of gold's broader upward trend, which may leave the $2,600 level on watch next, Yeap said.

Elsewhere, India's four-week platinum imports from mid-June eclipsed 2023's total as bullion dealers exploited a loophole by registering alloys containing around 90% gold as platinum to avoid higher duties, government and industry officials told Reuters.

Among other metals, spot silver fell 0.9% to $30.72 per ounce and platinum eased 0.4% to $991.40, while palladium rose 0.2% to $951.84.