https://arab.news/pfv6y
RIYADH: Oil prices fell on Monday to their lowest in 15 months on concerns risks in the global banking sector may cause a recession that would lead fuel demand to decline and ahead of a potential hike in US interest rates this week.
Brent crude futures for May settlement fell $2.32, or 3.2 percent, to $70.65 a barrel at 10:10 Saudi time. The contract earlier declined to as low as $70.56, its lowest since December 2021.
Last week, Brent fell nearly 12 percent, its biggest weekly fall since December.
US West Texas Intermediate crude for April delivery was at $64.59 a barrel, down $2.15, or 3.2 percent. It earlier fell to $64.51, also its lowest since December 2021. The contract declined by 13 percent last week, its biggest weekly drop since last April.
Kuwait Oil Co. declares a state of emergency
Kuwait Oil Co. on Monday declared a state of emergency due to an oil leak in the west of the country.
Production was not affected because of the oil leak and there were no injuries reported, the company said in a statement.
Iraq, OPEC stress need to coordinate to stabilize prices
Iraq’s Prime Minister Mohammed Shia al-Sudani and Haitham Al Ghai, Secretary General of the Organization of the Petroleum Exporting Countries stressed the need to coordinate among oil-exporting nations to ensure prices do not fluctuate and impact both exporter and consumer countries, the Iraqi government said in a statement.
Iraq is one of the founding members of OPEC.
Meanwhile, Iraqi oil minister Hayan Abdel-Ghani on Sunday said his country is committed to maintaining its 220,000 barrel per day oil output in line with OPEC+ rates.
Speaking during a conference in Baghdad, Abdel-Ghani also said Iraq is ready to increase production if required to do so by OPEC+.
“We obliged some oil companies operating in the south to cut production to come in line with OPEC+’s agreed rates,” he added.
Goldman Sachs cuts Brent oil forecasts
Goldman Sachs cut its forecasts for Brent crude oil futures over the weekend after prices slumped 15 percent since early March on banking and recession fears.
The investment bank is now expecting Brent to average $94 a barrel in the next 12 months and $97 in the second half of 2024, down from $100 previously, it said in a note dated March 18.
“Oil prices have plunged despite the China demand boom given banking stress, recession fears, and an exodus of investor flows,” the bank’s analysts said.
“Historically, after such scarring events, positioning and prices recover only gradually, especially long-dated prices.”
The bank has also lowered demand projections for Europe and North America in 2023 while raising that for China.
This led to a 600,000 barrel per day cut for 2024 estimates while keeping the 2023 demand forecast unchanged.
Shipments stopped at TotalEnergies’ refineries
Shipments of refined products from oil major TotalEnergies’ French sites were blocked on Monday for the 13th day of strike action, while some refineries were operating at a reduced flow, a company spokesperson said.
The industrial action is part of the nationwide movement against pension system changes lifting the retirement age two years to 64 that was forced through parliament without a vote last week.
Production at the Normandy and Feyzin refineries was reduced on Monday as deliveries were blocked, with the Donges and La Mede refineries also seeing blocked shipments as the latter are offline for maintenance, the company said.
(With inputs from Reuters)
NEW YORK: Oil prices rose about 1 percent to a one-week high on Wednesday despite a surprise weekly build in US crude inventories, as the dollar slid to a six-week low ahead of the Federal Reserve’s decision on interest rates which could affect the fuel demand outlook.
Brent futures rose 74 cents, or 1 percent, to $76.06 a barrel by 11:14 a.m. EDT (1514 GMT). US West Texas Intermediate crude rose 64 cents, or 0.9 percent, to $70.31. Each benchmarks was on track for the highest close since March 14.
The US dollar fell to its lowest level since Feb. 3 against a basket of other currencies, supporting oil demand by making crude cheaper for buyers using other currencies.
The US Energy Information Administration said crude stockpiles rose 1.1 million barrels during the week ended March 17. Analysts in a Reuters poll had forecast a 1.6-million barrel withdrawal. But the official data showed a smaller build than the 3.3-million barrel increase reported on Tuesday in industry data.
“The big story here is that build … in crude, which is enough to get us to the 22-month high in crude oil storage. We just have a lot of crude oil in storage and it’s not going to go away anytime soon,” said Bob Yawger at Mizuho, a bank.
US crude stockpiles have grown during 12 of the past 13 weeks, boosting inventories to their highest since May 2021.
WTI and Brent prices last week fell to their lowest since 2021 on concern that banking sector turmoil could trigger a global recession and cut oil demand. An emergency rescue of Credit Suisse Group AG over the weekend helped revive oil prices.
RIYADH: Amid a challenging global financial environment, global credit ratings agency Moody’s on Wednesday affirmed the long-term deposit ratings on 10 banks in Saudi Arabia and the senior unsecured and subordinated debt ratings of their affiliated entities.
Moody’s changed the outlook on the long-term deposit and senior unsecured debt ratings (where applicable) to positive from stable on nine banks while the long-term deposit rating outlook for one bank remained stable.
“The outlook on the long-term deposit and senior unsecured debt ratings (where applicable) was changed to positive from stable for Saudi National Bank, Riyad Bank, Saudi British Bank, Banque Saudi Fransi, Arab National Bank, Bank AlBilad, the Saudi Investment Bank, Bank AlJazira and Gulf International Bank — Saudi Arabia,” the report said.
The ratings agency said the outlook for Al Rajhi Bank on the long-term deposit rating remains stable.
The rating action was primarily driven by Moody’s affirmation of the A1 Saudi government issuer rating and change in outlook to positive from stable.
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped slightly on Wednesday and lost 9.23 points – or 0.09 percent – to close at 10,350.51, as oil prices were down following fresh indications of weak demand and the market awaited a crucial interest rate decision by the US Federal Reserve.
MCSI Tadawul 30 Index dropped by 0.12 percent to 1,408.99, while the parallel market Nomu gained 165.55 points or 0.87 percent to close at 19,094.44.
The total trading turnover of the benchmark index on Wednesday was SR5.01 billion ($1.33 billion).
The top performer of the day was Mouwasat Medical Services Co., as its share prices surged 10 percent to SR220.
Other major gainers on Wednesday were Thimar Development Holding Co. and Alinma Tokio Marine Co., whose share prices surged 9.95 percent and 6.98 percent respectively.
The worst performer of the day was Al-Etihad Cooperative Insurance Co. whose share prices dropped by 8.93 percent, after reporting a fall in total comprehensive income of 73.93 percent in 2022.
Gulf Insurance Group is another company that saw its shares fall by 7.45 percent as it reported a decrease in net income of SR73.4 million, or 44 percent, in 2022, driven by a lower surplus from insurance operations.
On the announcements front, Obeikan Glass Co. reported an annual profit of SR177.65 million in 2022, up 2.29 percent compared to 2021, driven by an increase in sales prices as a result of the rise in demand and the expansion of the company in new markets.
Amid the marginal profit rise, Obeikan Glass Co.’s shares, which are listed in Nomu, dropped by 12.45 percent to SR76.20.
Basic Chemical Industries Co. announced that its net profit hit SR70.4 million in 2022, up 21.97 percent from the previous year. Even as the profits soared, the share prices of Basic Chemical Industries fell 4.32 percent to SR33.20.
Driven by the rise in profits, the board of directors of BCI recommended the payment of a cash dividend at 10 percent of capital, or SR1 a share, for 2022.
Meanwhile, Saudi Printing and Packaging Co. also announced in its financial results that its losses narrowed to SR9.2 million in 2022, from SR59.3 million in the year-ago period.
Despite narrowing the losses, the share prices of Saudi Printing and Packaging Co. went down 0.24 percent to SR16.86.
Allied Cooperative Insurance Group also trimmed its loss to SR13.7 million in 2022, from SR114.6 million in 2021. The company’s share prices rose 1.31 percent to SR10.80 at the end of Wednesday’s closing.
AME Co. for Medical Supplies reported an annual net profit of SR26.6 million in 2022, up 25.73 percent compared to 2021, due to the increase in net revenues driven by a rise in sales of medical supplies.
As profits surged, AME Co. for Medical Services’ board of directors recommended a 20 percent dividend payout, or SR2 per share, for 2022. The company’s share prices also went up 2.55 percent to SR40.25 on Wednesday’s closing bell.
Oil prices edged lower on Wednesday. At 04.10 p.m. Saudi time, Brent crude futures, which have risen by almost 3 percent this week, were down 11 cents, or 0.15 percent, at $75.21 a barrel.
US West Texas Intermediate crude futures were down 9 cents, or 0.13 percent, at $69.58.
RIYADH: The World Bank has announced that it has approved a $7 billion financing program for Egypt that extends from 2023 until 2027, according to a statement.
The partnership framework is done in collaboration with the International Finance Corp. as well as the global insurance firm Multilateral Investment Guarantee Agency.
The financing program is projected to support green and inclusive developments as well as growth activities in the African country.
This money comes as Egypt is struggling with negative factors such as low foreign currency reserves, high interest payments, and high inflation.
It is also feeling the economic impact of the Russia-Ukraine war, as well as reduced tourism, and an increase in food insecurity.
In January, the International Monetary Fund stressed that despite Egypt seeing an “economic recovery” during 2021-2022, “imbalances also started building amidst a stabilized exchange rate.”
The source of World Bank approved funds will be split, with $1 billion annually coming from the International Bank for Reconstruction and Development, in addition to $2 billion over the entire Central Provident Fund period from the International Finance Corp.
In addition to this, the program will also provide Egypt with guarantees from the Multilateral Investment Guarantee Agency.
This is not the first time that the lender has approved a green scheme for Egypt.
In October 2022, it signed off on a $400 million development-financing agreement to help boost the African country’s logistics and transportation sectors and facilitate the transition to low-carbon technology along the Alexandria the 6th of October–Greater Cairo Area railway corridor.
In June last year the World Bank also approved a $500 million loan to help Egypt ensure an uninterrupted supply of bread as the country faced food security concerns amid rising prices and supply disruption due to the Russia-Ukraine war.
RIYADH: Saudi Tourism Authority’s CEO has held a meeting with China’s Vice Minister of Culture and Tourism to discuss ways to elevate and enhance strategic collaborations in the tourism sector, Saudi Press Agency reported.
Fahd Hamidaddin held talks with Rao Quan amid the Kingdom’s efforts to attract more than 4 million Chinese tourists by the year 2030.
During the meeting, both sides agreed on the general terms of a Memorandum of Understanding to support this target.
The two sides also settled to introduce and launch several joint tourism initiatives to develop human capacities working within the sector.
Saudi Ambassador to China Abdulrahman bin Ahmed Al-Harbi was also present during the meeting as officials discussed bilateral cooperation prospects in the sector.
In addition to this, the meeting also looked at ways to pave the way for a unified vision as well as efforts through relevant global organizations and associations.
Aside from tourism, the officials reflected on the outcomes of China’s President Xi Jinping’s visit to the Kingdom back in December 2022.
The latest meeting came as part of a promotional tour held by the Saudi Tourism Authority in collaboration with its partners from the Saudi tourism sector in China in an attempt to showcase Saudi tourist destinations and build partnerships between the tourism sectors of both countries.
The tour kicked off in Beijing before moving to Shanghai, and finally Guangzhou.
Earlier this month, the authority completed a successful three days at ITB Berlin, the world’s largest trade fair for the industry.
Ahmed Al-Khateeb, Saudi minister of tourism and chairman of the authority’s board of directors, opened the Saudi pavilion at the fair, which received a number of presidents, ministers, leaders, and other key officials.
Al-Khateeb also met officials of major commercial bodies such as TUI Group and FTI Consulting, in addition to leaders of the UN World Tourism Organization and the World Travel and Tourism Council.
The Saudi Tourism Authority is working to develop, promote, and distribute packages and products in partnership with the private sector.
The authority also participates in tourism events, exhibitions, trade shows, and roadshows both locally and globally to measure the tourist experience and suggest ways to enhance it to the relevant stakeholders.