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Middle East helps Europe fill diesel void as Russian flows slump amid war, sanctions

Middle Eastern petrostates are helping Europe make up for a drop in diesel supplies from Russia.

Flows of the transport fuel from the Arabian Gulf to Europe are set to rise almost 130 percent this month to 379,000 barrels a day, according to fixture reports and tanker tracking data compiled by Bloomberg.

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That’s the highest figure since October 2020 and will be bigger than the 166,000 barrel-a-day fall in European imports from Russia, according to the provisional bookings data.

The shift comes as the Europe Union tries to isolate Moscow for its attack on Ukraine with far-reaching sanctions. Energy exports are yet to be penalized by the bloc but traders, shippers and insurers are increasingly wary of taking on Russian barrels.

On Wednesday, Moscow escalated its standoff with Europe by cutting natural gas to Poland and Bulgaria.

In Europe, prices of diesel, used to power trucks, heavy machinery and ships, have surged around 70 percent this year. That’s even more than crude, which jumped above $100 a barrel in the wake of Russia’s attack.

The so-called crack spread for diesel – a measure of the profitability for refining crude – has increased from $11 a barrel at the start of 2022 to more than $40.

That’s giving countries such as Saudi Arabia and the United Arab Emirates an incentive to increase exports of diesel. The two OPEC members are known as swing producers for their ability to ramp up crude output.

But after more than a decade of expanding refining capacity and building their trading arms, they’re now playing a similar role in refined fuel markets. The diesel flows may generate Middle Eastern producers around $1.5 billion in revenue over the course of this month based on current prices, according to Bloomberg calculations.

Diesel stockpiles around the world fell heavily last year as demand recovered from the worst of the coronavirus pandemic, and the trend’s accelerated since the Ukraine war started. The problem could worsen in the coming months as more long-term Russian supply contracts expire and traders refuse to extend them, said Matt Stanley, a Dubai-based broker at Star Fuels.

Russia will still be the biggest diesel supplier to Europe this month, with flows averaging 618,000 barrels a day, according to the data.

Shippers and traders have booked 19 vessels to take refined products to Europe from the Gulf for potential delivery in May, almost three times as many as were reserved for April delivery at the same point last month.

Middle Eastern refiners have the capacity to raise diesel production further as they’re coming out of their traditional winter maintenance period, when demand is lower.

Companies such Saudi Aramco and Abu Dhabi National Oil Co. are among those most likely to benefit from diesel’s rise, said Stanley. That’s because their integrated production, refining and trading businesses allow them to react quickly to market swings.

Aramco’s largest refinery of Ras Tanura, capable of handling 550,000 barrels a day of crude, is back to capacity after shutting diesel units for maintenance in March, traders said. The company’s new 400,000 barrel-a-day refinery at Jazan on the Red Sea is still ramping up, they said.

In the UAE, Adnoc and Dubai’s Emirates National Oil Co. have restarted units that process condensate, a light type of oil.

Read more:

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Almarai signs an MoU with the Authority of People with Disabilities to train and employ them.

Almarai Company signed a memorandum of understanding with the Authority of People with
Disabilities to train, qualify and employ persons with disabilities. This came on the sidelines of
the First International Labor Market Conference, organized by the Ministry of Human Resources
and Social Development on December 13 – 14, 2023, at the King Abdulaziz Convention Center
in Riyadh.

The memorandum was signed by the Chief Human Resources Officer of Almarai Company,
Fahad Mohammed Aldrees, and the CEO of the Authority of People with Disabilities, Dr.
Hisham bin Muhammad Al-Haidari.

“This agreement comes within the framework of the company’s social responsibility program, as
Almarai employs more than 500 people with disabilities, which is one of the most suitable work
environments for them.” Fahad Aldrees said. Pointing out that Almarai has the “Silent Line”,
which is one of its production lines that is designated for people with hearing disabilities.

It is worth mentioning that Almarai supports over 300 charity organizations annually across the
kingdom that operate in the field of community development.

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Central Phuket Shopping Center Prepared Surprises This Christmas & New Year 2024

Central Phuket Shopping Center, the luxury lifestyle landmark o Phuket, invites everyone to celebrate Christmas and New Year 2024 in The Great Celebration 2024 Campaign. Joining hands with global partner ‘The Pokémon Company’, Central Phuket bring over Pokémon, the super cute character popular around the world, for all locals and international fans. The special campaign launch presents a procession of cute ‘Pikachu’ alongside with the giant Christmas tree for the first time in Thailand.
This December, Central Phuket prepared many activities for shoppers when visiting Phuket! Experience the “Surprise of the Day” with free Cotton Candy for our little ones, a sweet and fluffy treat, a special gift from Central Phuket. Bring your kids to enjoy this sweet treat every Saturday and Sunday throughout the month of December. Don’t miss the Christmas Carol that
everyone loves, little Santas spread freshness by singing together in the Christmas Carol activity. Plus, Christmas Live Music, the festival of joy is back! Celebrate Christmas in a luxurious and classy atmosphere, enjoying the music that will bring us joy. Also, there will be Christmas Troop, Santa Claus is coming to town! The Santa troop will spread happiness throughout Central Phuket. Lastly, Cake Workshop, workshop activity with Chef Sebastien’s IRON CHEF Thailand teaching how to make Christmas Vanilla Cake. A special activity for the Christmas season. Moreover, Central Phuket provides special promotion exclusively for international tourists throughout December 23 – January 24 including:

1) Get Free! Tourist welcome discount package valued up to THB 10,000.
2) Receive THB 100 Gift voucher when spending up to THB 2,500 per receipt.
3) Get to buy ‘Happy Holiday Collections’ special price: Pokémon 2-in-1 pillow blanket, tumbler, travel bag set, and keychain. Visit redemption counter for the price.
4) Exclusive for Grab Users get discount code up to 25% off* when traveling to participating Central Shopping Centers.
5) Receive famous Elephant Pants when spending over THB 5,000 in shopping center.
6) Get Free! H&M THB 100 gift voucher when booking any accommodations in Phuket with Agoda. Terms and conditions apply.

Central Phuket is a home of global luxury brands such as Alexander McQueen, Balenciaga, Ermenegildo Zegna, Gucci, Hermès, Louis Vuitton, and Saint Laurent. Exclusive for this season, Louis Vuitton launches a pop-up store located at Central Phuket. The design is inspired by the story of Damier or Checkerboard, the brand’s signature pattern. This classic pattern was created by Louis
Vuitton and his son Georges Vuitton in 1888 and has always been part of the design of Maison’s iconic items and concepts. Find clothes, shoes, bags, and accessories for men at the Pop-up Store from Louis Vuitton at Central Phuket, 1st floor, from today until 31 March 2024. And with over 500 renowned fashion brands and lifestyle shops ranging from local to international
well-known brands covering all categories, international shoppers will be able to find what they are looking for in Central Phuket.
Central Phuket is located in the heart of one of the world’s most famous beach cities, Phuket and await to welcome both locals and international visitors this holiday. Also, don’t miss one of the most joyful New Year Count Down events in Phuket city at Central Phuket Shopping Center on December 31, 2023.

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Saudi Fund for Development Provides $100 Million Development Loan for the Rogun Hydropower Project

The Saudi Fund for Development (SFD) Chief Executive Officer, H.E. Sultan Al-Marshad, signed a new development loan agreement with the Minister of Finance of the Republic of Tajikistan, H.E. Kahhorzoda Fayziddin Sattor, through which SFD is contributing $100 million USD to fund the Rogun Hydropower Project, a landmark initiative that will enhance energy,
food, and water security, and foster sustainable development in the country. The signing was attended by the Ambassador of the Kingdom of Saudi Arabia to the Republic of Tajikistan, H.E. Waleed Al-Reshiadan, and the Ambassador of Tajikistan to Saudi Arabia, H.E. Akram Karimi, alongside other officials from both sides. SFD’s development loan will help contribute towards a more sustainable and equitable food and water future for Tajikistan, while driving the country’s energy transition and climate resilience. The project aims to contribute to the national energy security and will help advance sustainable
development in the Republic of Tajikistan, by providing the renewable electricity supply to meet local demand and expand electricity production domestically and regionally, producing 3600 MW of energy. The loan agreement will also finance the construction of a 335-meter-tall dam, which will enhance irrigation capabilities and bolster agricultural activities across the country. Additionally, the project will improve flood protection through the construction of four hydraulic
tunnels for diversion and drainage. It will also provide clean and drinkable water to people through desalination, and help advance socio-economic development, by creating both direct and indirect jobs.
Importantly, this project also supports the realization of the UN Sustainable Development Goals (SDGs); specifically, SDG 2, Zero Hunger, SDG 6, Clean Water and Sanitation, and SDG 7, Affordable and Clean Energy.
On this occasion, the CEO of SFD, H.E. Sultan Al-Marshad, said: “Today’s signing marks a major milestone in our shared journey towards a more sustainable future. With this landmark development loan, SFD is not just supporting Tajikistan’s energy future, but also its sustainable development and the well-being of its people. The Rogun Hydropower Project is a beacon of
hope for a bright future that is powered by clean, renewable energy. It will propel Tajikistan towards environmental stewardship and prosperity.”

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