Opec agrees record oil output cut

Chekib Khelil, president of Opec

A record cut in oil output of two million barrels a day has been announced by the Organisation of Petroleum Exporting Countries (Opec).
The cut, which is Opec's largest ever, was agreed on Wednesday following a meeting of the organisation's ministers in the Algerian city of Oran.

The reduction in output will mean that Opec is taking 4.2 million barrels of oil out of the global market per day compared to September levels.
"I hope we surprised you," Chekib Khelil, president of Opec, said when asked whether the size of the cut would push oil markets into an upward trend.
"If you're not surprised we need to do something about it," he said.
However, the markets failed to immediately rally and the price of crude oil actually sank to $40.20 following the announcement, the lowest level since the summer of 2004.

Investors cautious

The failure to restore market confidence is a clear indication that investors remain cautious that the world is in for a long, painful recession during which energy use will continue to fall.
There had also been earlier speculation the cut could be combined with a reduction of 600,000 barrels a day by non-Opec members Russia and Azerbaijan.
However, Moscow is reported to have distanced itself from direct ties with the 13-nation producers' group, dampening hopes of further coordinated production cuts.

Although Igor Sechin, the Russian deputy prime minister, and Natik Aliev, the Azeri energy minister, announced the 600,000 barrel cut, their reductions appeared to be largely symbolic.
Russia indicated its reduction had already been implemented back in November, while Azerbaijan said its output had been reduced by a third because of production problems earlier in the year.

Falling demand

Ali al-Nuaimi, the Saudi oil minister, said: "We also hope that other producers who are not in Opec will chip in for the purpose of bringing stability to the market."
Oil demand has dwindled in recession-hit industrialised nations, and the cut was endorsed by many of the group before the meeting in an attempt to stabilise the price.
"If unchecked, prices could fall to levels which would place in jeopardy the investments required to guarantee adequate energy supplies in the medium to long term," a statement released by Opec said.
An overall reduction of 2.6 million barrels per day would remove about three per cent of the world's daily output.
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Oil cut is 'necessary'

Chekib Khelil, Opec's president, said that the $75 a barrel price target set by King Abdullah, Saudi Arabia's monarch, was a "fair price".
Saadallah al-Fathi, an oil analyst based in Dubai, told Al Jazeera: "Raising oil prices will impact a lot of people in the oil-producing countries and make it possible for them to continue with their development and with their investment in the oil industry to provide more oil for the world in the future.
"At the same time they have to be cognisant of the state of the economy in the world, and they have to help the world in getting out of the recession."

Asked if he thought $75 a barrel was a fair price for oil, he said: "If the price of oil reached $147 per barrel, I think $75 per barrel seems to be a fair price."
Opec has cut output twice since September without halting the decline in oil prices which has slashed revenues for the group's members and raised fears of a future supply crunch as investors pull money from costly exploration and production projects.

Source : Al Jazeera

Persons Who Have No Right of Disposal or Discretion Over Their Own Property

A child who has not reached the age of puberty, (bulugh), has no right of discretion over the property he holds or owns, even if he is able to discern and is mature, and the permission of his/her guardian does not apply in this case. However, in those cases where a Na-baligh is allowed to make a transaction, like when buying or selling things of small worth as mentioned in rule 2090, or his testament for his relatives and kinsmen, as will be explained in rule 2706, the right can be exercised. A girl becomes baligha upon completion of her nine lunar years, and a boy is baligh when stiff pubic hair grow, or when he discharges semen, or upon completion of fifteen lunar years.
Growing of stiff hair on the face and above the lips may be considered as signs of bulugh, but their growth on chest and under the armpits, and the voice becoming harsh etc. are not the signs of one's reaching the age of puberty, except that one may become sure of having reached the age of puberty due to these changes.
An insane person has no right of disposal over his property. Similarly, a bankrupt (i.e. a person who has been prohibited by the Mujtahid to dispose of or have discretion on his property because of the demands of his creditors) cannot dispose his property without the permission of the creditors. And a feeble-minded person (Safih) who squanders his property for useless purposes, has no right of disposal or discretion over his property.
If a person is sane at one time and insane at another, the right of discretion exercised by him during his lunacy will not be considered valid.
A dying man in his terminal illness can spend his own wealth on himself, on the members of his family, his guests and on other things as much as he likes, provided that, it is not considered to be extravagance on his part. Also, he can sell his property at its proper value, or hire it. But if he gives away his property as gift, or sells it at a lower price than usual, it will be valid if the property gifted or sold cheap is equal to or less than 1/3 of his estate. And if it is more, it will be valid only if the heirs allow, and if they do not, then whatever he spent in excess of 1/3 of his estate will be considered void.