April 1, 2016

So on Monday, I huddled with a diplomat in the Qatar capital, Doha.

 

I wanted to know why, as an East African, I should be losing sleep over events in the Middle East, especially the Islamic State’s rampage, the war in Syria and Yemen, and what some have called the Sunni coalition led by Saudi Arabia against the Iran-anchored Shia coalition.

 

 

 

His view was that the Saudi have been extremely audacious, and equally dangerous, in their play.

 

To begin with the one we all know, was its move to crush American shale oil production by driving prices down.

 

With the nuclear talks between regional rival Iran and world powers, Saudi Arabia also wanted to make any e...

February 29, 2016

 

Kenya would be among the 10 cheapest countries to produce crude oil, ahead of major exporters like Nigeria and Angola.

Tullow Oil, the UK firm prospecting for oil in Turkana among other areas, has reported the break-even point for Kenya crude is Sh2,550 ($25) per barrel – including the pipeline tariff to the sea port.

 

Low production costs translate to higher profits for a producer. Kenya's projected cost is lower than $35.40 (Sh3,600) in Angola and Nigeria's $31.50 (Sh3,204), both countries bleeding money as global prices slumped to near-record low of $29 (Sh2,949) this week.

At the prevailing prices, Kenya would still be making a profit if it were alre...

February 24, 2016

 

Looking for a winner from the oil price slump? Kenya could well be a prime candidate, in the emerging world at least.

The rout has claimed a swath of well-documented victims, from recession-hit Brazil, Russia and Venezuela to the badly holed Nigeria and Azerbaijan and the challenged Gulf states.

 

However Kenya — with a rapidly falling current account deficit, its first quarterly budget surplus for at least five years and solid economic growth — could be one of the less heralded beneficiaries of the crash in energy prices.

“Kenya is one of the few large African economies that is likely to perform well in 2016. As a net energy importer, it will continue to...

February 17, 2016

Saudi Arabia and Russia agreed to freeze oil output at near-record levels, the first coordinated move by the world’s two largest producers to counter a slump that has pummeled economies, markets and companies.

While the deal is preliminary and doesn’t include Iran, it’s the first significant cooperation between OPEC and non-OPEC producers in 15 years and Saudi Arabia said it’s open to further action. Oil pared gains after the accord was announced, signaling traders see no immediate end to the global supply glut.

 

The deal to fix production at January levels, which includes Qatar and Venezuela, is the “beginning of a process” that could require “other ste...

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