Peres, Abbas sign industrial zone deal

resident Shimon Peres and Palestinian Authority President Mahmoud Abbas signed an agreement Tuesday paving the way for the establishment of two new industrial zones in the West Bank.

Peres, Gul and Abbas at the meeting of the Ankara Forum of Israeli, Palestinian and Turkish industrialists. Photo: GPO
The agreement was signed as part of a meeting of the Ankara Forum of Israeli, Palestinian and Turkish industrialists established two years ago to create economic opportunities in the Palestinian territories. The Forum is led by Turkish President Abdullah Gul.

"New markets will be accessible throughout the region and the world due to the establishment of the new zone," Gul said.

Abbas said the new industrial zones would be built near Jenin and in Trakumiya, located near Hebron.

Peres said the signing of the agreement Tuesday did not come to replace the planned Middle East conference in Annapolis, Maryland set for later this month, but was "in addition to it". He added that economic improvement was vital for achieving peace with the Palestinians. "This agreement is for Israel a win-win situation," Peres said.

Abbas concluded his remarks expressing hope that by this time next year, Peres, Gul and he himself would be sitting in a larger forum, signing a peace agreement between Israel and Palestinians.

At a joint news conference with Peres, Abbas said Israel will live in peace if it ends its occupation of Arab lands. "If peace comes and the occupation comes to an end, Israel will live in a sea of peace," he said.

The PA president added that his administration was preparing for the Annapolis conferece. "We are working with our full force to ensure that the meeting in Annapolis is a success," he said.
Later in the afternoon, Peres was slated to become the first Israeli president to speak before the legislature of a Muslim country. Abbas was also expected to address the Turkish Parliament.

Oil back above $96 after respite

Disruption to North Sea supplies has sent prices upwardsOil prices have rebounded above $96 in Asian trading as concerns about global supplies linger.

A barrel of US light crude was worth $96.46, up $1, having fallen to $95.46 on Thursday on pessimistic comments by Federal Reserve boss Ben Bernanke.

His forecast for slower economic growth may have meant weaker demand as firms reined in spending, analysts said.
But disruption to oil output in the North Sea from BP and ConocoPhillips rigs helped to support crude prices.

'Tight market'

Platforms pumping more than 200,000 barrels of oil a day in the North Sea were closed due to bad weather, exacerbating concerns about the availability of crude.

Prices hit a record high above $98 a barrel of Wednesday, leading many analysts to speculate that it was only a matter of time before the $100 mark was breached.

But prices then fell back sharply after US crude inventory figures showed a smaller than expected weekly fall.

Analysts still expect oil to break $100 a barrel
The weaker dollar has been driving up oil prices as investors have been using the commodity as an alternative to holding dollars.

"Markets have probably rethought how tight the market is and might be in the near term and that has caused an upward adjustment," David Moore, a commodity strategist at the Commonwealth Bank of Australia, said of Friday's price jump.

Oil prices have now risen by 60% this year but prices have still not reached a record high if inflation is taken into account.

Adjusting for inflation, US light crude's record peak of $101.70 came in 1980 against a backdrop of war between Iraq and Iran.

The dollar's current weakness has also seen prices of other commodities rise sharply, most notably gold, which is continuing near 27-year highs.