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Oil Update — prices gain on Middle East war concerns, US crude stockpile drop

Oil Update — prices gain on Middle East war concerns, US crude stockpile drop
Brent crude futures rose 41 cents, or 0.5 percent, to $81.10 a barrel by 8:50 a.m. Saudi time. US West Texas Intermediate crude increased by 41 cents, or 0.5 percent, to $78.76 per barrel. Reuters
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Updated 14 August 2024

Oil Update — prices gain on Middle East war concerns, US crude stockpile drop

Oil Update — prices gain on Middle East war concerns, US crude stockpile drop
  • Crude stocks fell by 5.21 million barrels in the week ended Aug. 9
  • Gasoline inventories eased by 3.69 million barrels, and distillates rose by 612,000 barrels

SINGAPORE: Oil prices climbed on Wednesday after an industry report showed US crude and gasoline inventories fell and as the market watched for a possible widening of the Israel-Gaza war, which may impact global oil supplies, according to Reuters.
Brent crude futures rose 41 cents, or 0.5 percent, to $81.10 a barrel by 8:50 a.m. Saudi time. US West Texas Intermediate crude increased by 41 cents, or 0.5 percent, to $78.76 per barrel.
“The American Petroleum Institute (API) reported a significant drawdown in US crude inventories of 5.2 million barrels, far more than a forecasted decline of 2 million. The data signalled that oil demand remains healthy,” said Danish Lim, investment analyst at Phillip Nova.
“Nevertheless, geopolitics remain the elephant in the room, as the likelihood of an escalation in Middle East tensions could serve as upside risk to oil prices over the coming weeks.”
The API figures showed crude stocks fell by 5.21 million barrels in the week ended Aug. 9, according to market sources citing the data. Gasoline inventories eased by 3.69 million barrels, and distillates rose by 612,000 barrels.
Falling inventories could indicate higher demand in the US, the world’s biggest oil consumer.
Official government data from the Energy Information Administration is due later on Wednesday.
In the Middle East, key oil producer Iran has vowed a severe response to the killing of the leader of Hamas late last month. Israel has neither confirmed nor denied its involvement but it is fighting in Gaza against Hamas after the group attacked Israel in October. To counter Iran, the US Navy has deployed warships and a submarine to the Middle East.
Iran has not yet retaliated against the assassination but any escalation of the conflict in the Middle East is a clear upside risk to oil prices over the next six months and potentially even longer, said Vivek Dhar, analyst at Commonwealth Bank of Australia.
“The extent of Iran’s reprisal, as well as Israel’s response, will likely determine whether the current conflict in the Middle East broadens into a regional conflict,” said Dhar.
“The immediate market concern will be attacks on Iran’s oil supply and infrastructure. Iran accounts for 3-4 percent of global oil demand, of which, 25-50 percent is exported.”
An ANZ Research in a note on Wednesday added that a broader conflict in the Middle East could also threaten oil moving through key choke points in the region.
“This could expose over 20 million barrels per day of oil to risks of disruption,” it said.
Capping oil price gains however, the International Energy Agency, kept its 2024 global oil demand growth forecast unchanged on Tuesday but trimmed its 2025 estimate, citing the impact of a weakened Chinese economy on consumption.


Oil Updates — crude rises on US demand strength, though macroeconomic uncertainty looms

Oil Updates — crude rises on US demand strength, though macroeconomic uncertainty looms
Updated 15 sec ago

Oil Updates — crude rises on US demand strength, though macroeconomic uncertainty looms

Oil Updates — crude rises on US demand strength, though macroeconomic uncertainty looms

LONDON: Oil prices rose on Thursday, recovering from a five-day losing streak, on signs of steady demand in the US, the world’s largest oil consumer, although concerns over the economic impact of Washington’s tariffs capped gains.

Brent crude futures was up 41 cents, or 0.6 percent, at $67.3 a barrel, as of 9:07 a.m. Saudi time.

US West Texas Intermediate crude climbed 0.6 percent to $64.76, gaining 41 cents.

Both benchmarks slid about 1 percent on Wednesday to their lowest levels in eight weeks following US President Donald Trump’s remarks on progress in talks with Moscow.

Trump could meet Russian President Vladimir Putin as soon as next week, a White House official said, though the US continued preparations to impose secondary sanctions, including potentially on China, to pressure Moscow to end the war in Ukraine.

Russia is the world’s second-biggest producer of crude after the US.

Still, oil markets found support from a bigger-than-expected draw in US crude inventories last week.

The Energy Information Administration said on Wednesday that US crude oil stockpiles fell by 3 million barrels to 423.7 million barrels in the week ended August 1, exceeding analysts’ expectations in a Reuters poll for a 591,000-barrel draw.

Inventories fell as US crude exports climbed and refinery runs climbed, with utilization on the Gulf Coast, the country’s biggest refining region, and the West Coast climbing to their highest since 2023.

Analysts at JP Morgan said in a note that global oil demand through August 5 has averaged 104.7 million barrels per day, tracking annual growth of 300,000 bpd, but 90,000 bpd below their forecast for the month.

“Despite a slightly soft start to the month, relative to our expectations, high frequency indicators of oil demand suggest global oil consumption is likely to improve sequentially over the coming weeks,” the analysts said, with jet fuel and petrochemical feedstocks anticipated to drive the consumption growth.

Meanwhile, China’s crude oil imports in July dipped 5.4 percent from June but were still up 11.5 percent year on year, with analysts expecting refining activity to remain firm in the near term.

Still, global macroeconomic uncertainty after the US ordered a fresh set of tariffs on Indian goods capped price gains.

Trump on Wednesday imposed an additional 25 percent tariff on Indian goods, citing their continued imports of Russian oil. The new import tax will go into effect 21 days after August 7.

“While these new duties (on India by the US) are set to take effect in three weeks, markets are already pricing in the downstream ripple effects on trade flows, emerging market demand, and broader energy diplomacy,” said Phillip Nova’s senior market analyst Priyanka Sachdeva.

Trump also said he could announce further tariffs on China similar to the 25 percent duties announced earlier on India over its purchases of Russian oil.

“Tariffs are likely to harm the global economy, which will ultimately affect fuel demand,” said Phillip Nova’s Sachdeva, adding that markets are overlooking the fact that its impact will still be much greater on the US economy and inflation. 


Saudi Aramco lifts crude prices for Asian buyers

Saudi Aramco lifts crude prices for Asian buyers
Updated 06 August 2025

Saudi Aramco lifts crude prices for Asian buyers

Saudi Aramco lifts crude prices for Asian buyers

RIYADH: Saudi Aramco has increased the official selling price of its flagship Arab Light crude for Asian buyers in September.

The state-owned energy giant raised the Arab Light price by $1 per barrel from August to a premium of $3.20 over the average of Oman and Dubai crude benchmarks, according to an official statement issued on Wednesday. Prices for Arab Extra Light rose by $1.20 per barrel, while Arab Heavy gained $0.70.

In North America, Aramco set the September OSP for Arab Light at $4.20 per barrel above the Argus Sour Crude Index. The company prices its crude across five density-based grades: Super Light (above 40), Arab Extra Light (36-40), Arab Light (32-36), Arab Medium (29-32), and Arab Heavy (below 29).

Aramco’s monthly pricing decisions influence around 9 million barrels per day of crude exports to Asia and act as a benchmark for other major producers, including Iran, Kuwait, and Iraq. The adjustments are based on feedback from refiners and an assessment of crude value changes, product prices, and yields.

The price revisions come as the OPEC+ alliance agreed earlier this week to increase collective oil production by 547,000 barrels per day in September, citing improved global economic prospects and stable market fundamentals.

This move concludes the phased reversal of 2.2 million bpd in voluntary cuts introduced by eight members in 2023 to stabilize prices amid economic uncertainty.

The group reaffirmed its commitment to full compliance with the Declaration of Cooperation, with the Joint Ministerial Monitoring Committee continuing oversight.

The September hike will raise Ƶ’s output to 9.97 million bpd. Russia is set to produce 9.44 million bpd, Iraq 4.22 million, and the UAE 3.37 million. Output targets for Kuwait, Kazakhstan, Algeria, and Oman are projected at 2.54 million, 1.55 million, 959,000, and 801,000 bpd, respectively.


Syria signs $14bn in investment deals, including airport and subway projects

Syria signs $14bn in investment deals, including airport and subway projects
Updated 06 August 2025

Syria signs $14bn in investment deals, including airport and subway projects

Syria signs $14bn in investment deals, including airport and subway projects

CAIRO: Syria signed 12 investment deals worth $14 billion on Wednesday in a ceremony attended by interim President Ahmed Al-Sharaa, including infrastructure, transportation and real estate projects aimed at reviving the war-damaged economy.

The agreements included a $4 billion deal for building a new airport in Damascus signed with Qatar’s UCC holding, and a $2 billion deal to establish a subway in the Syrian capital with the UAE’s national investment corporation.

Other major developments include the $2 billion Damascus Towers project signed with Italy-based UBAKO.

In July, Syria signed $6.4 billion of investments with Ƶ as it seeks to rebuild after a 14-year civil war.
 


Closing Bell: Saudi main index closes in green at 10,946 

Closing Bell: Saudi main index closes in green at 10,946 
Updated 06 August 2025

Closing Bell: Saudi main index closes in green at 10,946 

Closing Bell: Saudi main index closes in green at 10,946 

RIYADH: Ƶ’s Tadawul All Share Index edged up on Wednesday, gaining 24.89 points, or 0.23 percent, to close at 10,946.74. 

The total trading turnover of the benchmark index stood at SR4.80 billion ($1.27 billion), with 169 listed stocks advancing and 78 declining. 

However, the Kingdom’s parallel market Nomu declined by 143.18 points to close at 26,709.64 

The MSCI Tadawul Index also recorded a modest gain, rising 0.12 percent to reach 1,410.12. 

The top performer on the main market was Shatirah House Restaurant Co., whose share price rose 10 percent to SR16.83. 

The company reported a 19.3 percent year-on-year increase in revenue for the first half of 2025, reaching SR83.81 million, up from SR70.26 million in the same period last year.

However, operating profit dropped nearly 30 percent to SR1.41 million, while net profit declined by 24.6 percent to SR1.07 million. 

The share price of Abdullah Saad Mohammed Abo Moati for Bookstores Co. also rose 10 percent to SR41.80. 

Jadwa REIT Al Haramain Fund saw its stock price increase by 5.62 percent to SR5.83. 

On the other hand, Riyadh Cement Co. witnessed a drop in its share price by 2.79 percent to SR31.40. 

In corporate announcements, Dr. Soliman Abdel Kader Fakeeh Hospital Co., known as Fakeeh Care, reported a 24.1 percent year-on-year rise in revenue for the second quarter of 2025, reaching SR811.84 million, compared to SR654.04 million in the corresponding period last year. 

In a statement on Tadawul, the company also announced that its net profit jumped 59 percent year on year in the second quarter to SR68.2 million, driven by strong underlying business growth across segments, lower finance costs, and higher finance income. 

Fakeeh Care’s share price climbed 2.35 percent to SR40.98. 

Herfy Food Services Co. reported revenue of SR284.56 million in the second quarter of 2025, marking a 5.5 percent decline compared to SR301.12 million in the same period of 2024. 

Despite the drop in sales, the company recorded a net profit of SR899,934 in the second quarter, reversing a net loss of SR23.7 million a year earlier.

The improvement was attributed to lower general and administrative expenses, reduced finance and zakat costs, despite increased selling and marketing expenses. 

Herfy’s share price rose 3.55 percent to SR23.65. 

Edarat Communication and Information Technology Co., also known as Edarat, posted a 31.6 percent year-on-year increase in net profit for the first half of 2025, reaching SR15.24 million, up from SR11.58 million a year earlier. 

The growth was driven by a 35.4 percent rise in gross profit, which reached SR27.9 million in the first half of 2025. 

Improved cost efficiency also played a role, with administrative expenses as a percentage of revenue declining from 17.56 percent in the first half of 2024 to 13.8 percent in the same period this year. 

Edarat’s share price fell 3.42 percent to SR240. 

Arabian Centers Co., known as Cenomi Centers, recorded a 34.2 percent year-on-year increase in net profit for the second quarter of 2025, reaching SR474.7 million, compared to SR353.8 million in the same period last year.

The rise in earnings was attributed to a 7.7 percent reduction in cost of revenue due to operational cost optimization, as well as a boost in other operating income, which reached SR14.2 million following the sale of land in Al Kharj. 

Cenomi Centers’ share price advanced 5.38 percent to SR21.56. 


Egypt’s exports increase 4.6% in May to $4.25bn

Egypt’s exports increase 4.6% in May to $4.25bn
Updated 06 August 2025

Egypt’s exports increase 4.6% in May to $4.25bn

Egypt’s exports increase 4.6% in May to $4.25bn
  • Petroleum product exports rose by 53.5%
  • Egypt’s trade deficit narrowed to $3.41 billion

RIYADH: Egypt’s exports rose by 4.6 percent year-on-year in May to reach $4.25 billion, supported by a significant uptick in petroleum products and ready-made garments.

The latest monthly bulletin released by the Central Agency for Public Mobilization and Statistics showed that petroleum product exports rose by 53.5 percent, while overseas sales of ready-made garments climbed by 32.8 percent.

Egypt saw export growth in pasta and various food preparations, up by 21.7 percent, along with raw forms of plastics, which increased by 5.7 percent.

Egypt’s latest trade figures come amid currency pressures, inflation, and shifting global demand, with policymakers focusing on boosting exports and curbing non-essential imports to stabilize reserves and improve the balance of payments.

The North African nation’s trade performance reflects broader trends in global commerce as regional economies, including Egypt, work to diversify export markets and enhance manufacturing competitiveness.

Egypt’s trade deficit narrowed to $3.41 billion in May, down from $4.15 billion in the same month of 2024, according to CAPMAS.

In parallel, imports fell by 6.7 percent to $7.66 billion, compared to $8.21 billion in the previous year, driven by lower purchases across several categories.

Sector highlights

While fertilizer exports declined by 48 percent, and fresh fruit exports dropped by 4 percent, other categories also saw downturns. These included fresh onions, which fell by 3.2 percent, and non-crude petroleum oils, which recorded a 48.3 percent drop.

On the import side, Egypt reduced its purchases of petroleum products by 34 percent, raw materials of iron or steel by 20.3 percent, primary plastics by 15.9 percent, and iron or steel chemical materials by 18.9 percent.

Despite the overall decline in imports, the report highlighted notable increases in some sectors. Natural gas imports surged by 93 percent, while pharmaceutical preparations rose by 19.1 percent. Imports of wood and related products climbed by 17.7 percent, and passenger cars increased by 14.5 percent.

The trade developments come as Egypt continues to implement policies aimed at boosting industrial output and optimizing its trade balance through import substitution and export expansion.