Oil Updates — crude rises as US inventory decline heightens supply concerns
Oil Updates — crude rises as US inventory decline heightens supply concerns/node/2586632/business-economy
Oil Updates — crude rises as US inventory decline heightens supply concerns
Brent crude futures rose 25 cents, or 0.3 percent, to $82.28 per barrel by 7:46 a.m. Saudi time. Shutterstock
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Updated 16 January 2025
Reuters
Oil Updates — crude rises as US inventory decline heightens supply concerns
Updated 16 January 2025
Reuters
SINGAPORE: Oil prices gained for a second session on Thursday, supported by worries over supply amid US sanctions on Russia, a larger-than-forecast fall in US crude oil stocks, and an improving global demand outlook.
Brent crude futures rose 25 cents, or 0.3 percent, to $82.28 per barrel by 7:46 a.m. Saudi time, after rising 2.6 percent in the previous session to their highest since July 26 last year.
US West Texas Intermediate crude futures rose 28 cents, or 0.4 percent, to $80.32 a barrel, after gaining 3.3 percent on Wednesday to their highest since July 19.
US crude oil stocks fell last week to their lowest since April 2022 as exports rose and imports fell, the Energy Information Administration said on Wednesday.
The 2 million-barrel draw was more than the 992,000-barrel fall analysts had expected in a Reuters poll.
The drop added to a tightened global supply outlook after the US imposed broader sanctions on Russian oil producers and tankers. The new US sanction measures have sent Moscow’s top customers scouring the globe for replacement barrels, while shipping rates have surged too.
The Biden administration on Wednesday imposed hundreds of additional sanctions targeting Russia’s military industrial base and evasion schemes.
Meanwhile, the Organization of the Petroleum Exporting Countries and its allies, which have been curtailing output collectively over the past two years, are likely to be cautious about increasing supply despite the recent price rally, said Commodity Context founder Rory Johnston.
“The producer group has had its optimism dashed so frequently over the past year that it is likely to err on the side of caution before beginning the cut-easing process,” Johnston said.
Limiting oil’s gains, Israel and Hamas agreed to a deal to halt fighting in Gaza and exchange Israeli hostages for Palestinian prisoners, according to an official.
On the demand front, global oil expanded by 1.2 million barrels per day in the first two weeks in 2025 from the same period a year earlier, slightly below expectations, JPMorgan analysts wrote in a note.
The analysts expect oil demand to grow by 1.4 million bpd year-on-year in coming weeks, driven by heightened travel activities in India, where a huge festival gathering is taking place, as well as by travel for Lunar New Year celebrations in China at the end of January.
Some investors are also eying potential interest rate cuts by the US Federal Reserve before the end of the year following data on an easing in core US inflation — which could lend support to economic activities and energy consumption.
Closing Bell: Saudi main index rises to close at 10,983
Updated 23 July 2025
Reem Walid
RIYADH: Ƶ’s Tadawul All Share Index rose on Wednesday, gaining 140.73 points, or 1.30 percent, to close at 10,983.93.
The total trading turnover of the benchmark index was SR5.34 billion ($1.42 billion), as 207 of the stocks advanced and 46 retreated.
Similarly, the Kingdom’s parallel market Nomu gained 38.14 points, or 0.14 percent, to close at 26,778.15. This comes as 43 of the listed stocks advanced while 35 retreated.
The MSCI Tadawul Index gained 21.53 points, or 1.55 percent, to close at 1,411.73.
The best-performing stock of the day was Sport Clubs Co., whose share price surged 18.60 percent to SR11.03.
Other top performers included Middle East Specialized Cables Co., whose share price rose 7.56 percent to SR33.56, as well as Tourism Enterprise Co., whose share price surged 5.88 percent to SR1.08.
SICO Saudi REIT Fund recorded the most significant drop, falling 5.13 percent to SR4.07.
Obeikan Glass Co. also saw its stock price fall 3.22 percent to SR38.84.
Saudi Azm for Communication and Information Technology Co. also saw its stock prices decline 3.21 percent to SR26.50.
On the announcements front, Bank Albilad has announced its interim financial results for the period ending on June 30. According to a Tadawul statement, the firm recorded a net profit of SR1.46 billion during the first six months of the year, reflecting an 11.5 percent rise compared to the same period a year earlier. This climb is primarily attributed to a 9 percent increase in net income, driven by a rise in total operating income.
Dividend income, net gain on fair value through statement of income instruments, and other operating income have decreased. Total operating expenses increased by 7 percent, primarily driven by higher general and administrative costs, salaries and employee benefits, as well as depreciation and amortization. Despite this, there was a decline in net impairment charges for expected credit losses.
Bank Albilad ended the session at SR25.78, up 3.20 percent.
The Saudi Investment Bank has also announced its interim financial results for the first half of the year.
A bourse filing revealed that the company recorded a net profit of SR 1.01 billion for the period ending June 30, up 9.3 percent year over year.
This jump is primarily linked to an increase in total operating income. The Saudi Investment Bank ended the session at SR14.05, up 1.28 percent.
Yanbu Cement Co. also announced its condensed consolidated financial results for the six-month period ending on June 30.
According to a Tadawul statement, the firm recorded a net profit of SR51.5 million during the first half of 2025, reflecting a 47.4 percent decrease compared to the same period a year earlier.
The drop in net profit for the current period compared to last year is mainly due to lower domestic sales revenues driven by a decline in average selling prices, reduced margins from export sales, higher financing costs, and increased general and administrative expenses.
Yanbu Cement Co. ended the session at SR18.32, down 0.05 percent.
Ƶ launches AI readiness index to accelerate government tech transformation
AI is projected to contribute $235.2 billion to GDP
More than 180 representatives participated in the first measurement cycle
Updated 23 July 2025
Reem Walid
RIYADH: Saudi government agencies are set to advance artificial intelligence adoption through a new index that measures readiness and supports the development of innovative, data-driven solutions across key sectors.
The National Artificial Intelligence Index, inaugurated by the Saudi Data and Artificial Intelligence Authority, is designed to assess the maturity of AI implementation across government entities.
More than 180 representatives participated in the first measurement cycle, which also aims to provide tailored recommendations and track progress regularly, according to the Saudi Press Agency.
The initiative supports broader government targets, including ranking among the top 15 countries globally in AI, top 10 in the Open Data Index, and top 20 in data and AI-related publications under the National Strategy for Data and Artificial Intelligence.
AI is projected to contribute $235.2 billion, or 12.4 percent, to Ƶ’s gross domestic product by 2030, according to estimates by PwC.
“The index aims to unify government efforts and national priorities in the field of AI and provide the enabling capabilities to enable government agencies to adopt and develop effective and sustainable AI products and solutions that contribute to achieving the goals of Saudi Vision 2030,” SPA said.
It added: “The index is based on three main pillars, seven main axes, and 23 sub-fields to ensure a comprehensive measurement of government agencies’ AI readiness.”
This forms part of SDAIA’s broader mandate as the Kingdom’s national authority for data and AI development and regulation. It is intended to strengthen institutional performance and drive public-sector innovation.
The newly launched index also provides results reflecting the maturity of AI adoption within government agencies, along with the necessary support to enhance their capabilities and further develop innovative solutions that sustain national efforts and expand their impact in priority sectors.
As part of its continuous efforts to improve institutional excellence, SDAIA was recently awarded two international accreditation certificates by the Global Excellence Assembly, a body that specializes in developing and evaluating institutional excellence models.
The recognition highlights SDAIA’s alignment with international best practices in the design and governance of award models, as well as the transparency and impartiality of its evaluation and selection processes.
SDAIA is also engaging the public to shape the future of digital services. The authority earlier this month launched an electronic consultation to gather public opinion on the Ehsan National Platform for Charitable Work, inviting citizens and residents to share their views on which service is most in need of improvement.
Growth attributed to heightened demand for hedging instruments
DGCX saw 1.56 million contracts traded with a notional value exceeding $37 billion in 2024
Updated 23 July 2025
Nirmal Narayanan
RIYADH: The Dubai Gold and Commodities Exchange witnessed 1 million contracts traded during the first half of this year, representing a 30 percent rise in average daily volumes compared to the same period in 2024.
In a press statement, DGCX attributed the growth to heightened demand for hedging instruments amid global market volatility, with gold contracts and Indian Rupee Quanto products leading the uptick in trading activity.
According to the report, DGCX’s Shariah-compliant Gold Spot Contract led this growth, with value of trades reaching $46.8 million in the first six months, marking a significant 199.84 percent year-on-year rise.
Established in 2005 and owned by the Dubai Multi Commodities Center, DGCX plays a pivotal role in Dubai’s status as one of the world’s largest gold trading hubs.
With over 1,500 member companies operating in the gold and precious metals sector within DMCC, the exchange complements the international district’s broader offering in physical and financial trading infrastructure.
“DGCX has seen exceptional momentum in the first half of the year, with nearly $47 million traded through our spot gold contract alone,” said Ahmed Bin Sulayem, chairman and CEO of DGCX.
The statement further said that INR Quanto futures contract, a synthetic contract that enables global market participants to hedge Indian rupee exposure against the US dollar without requiring access to the underlying Indian markets, also continued to attract strong trading interest.
“This performance not only places DGCX firmly on course to surpass its 2024 results but reinforces its role as a critical pillar in the region’s financial infrastructure,” said Sulayem.
He added: “As global market conditions grow more complex, the exchange’s rising adoption by Shariah-based investors, bullion traders, and institutional participants alike highlights the growing demand and broad appeal for sophisticated, secure, and transparent hedging tools – a position we expect will get stronger.”
The statement added that DGCX saw 1.56 million contracts traded with a notional value exceeding $37 billion in 2024, and the exchange is well on track to surpass that figure in 2025.
In May, DGCX announced its acceptance to join the Arab Federation of Capital Markets’ Business Development Committee.
In a statement at the time, DGCX said that the appointment reflects the exchange’s expertise in regulatory oversight, risk management, and product innovation, reinforcing its position as a leading regional player in derivatives trading and financial market infrastructure.
The AFCM, established in 1978 as the principal body for Arab stock exchanges, plays a critical role in enhancing collaboration and standardising best practices across the region.
RIYADH: A Saudi delegation visiting Damascus on Wednesday announced investment and partnership deals valued at $5 billion to help rebuild war-battered Syria.
The delegation of some 150 investors and representatives of the Saudi public and private sectors, led by Investment Minister Khalid Al-Falih, attended a forum in Damascus.
| The Delegation of Over 120 Businessmen and Investors Arrives in
— AlEkhbariya News (@alekhbariyaEN)
“The announced investments, valued at SR19 billion (about $5 billion), span vital and strategic sectors, including real estate, infrastructure, communications and IT, transportation and logistics, industry, tourism, energy, trade” and more, AFP reported citing a statement from the Investment Ministry.
Investment Minister Khalid Al-Falih alongside Syrian Economy Minister Mohammad Nidal Al-Shaar
On Tuesday, the ministry had said the Damascus forum aimed to “explore cooperation opportunities and sign agreements that enhance sustainable development and serve the interests of the two brotherly peoples”.
The Saudi delegation’s visit underscores the Kingdom’s growing support for Syria’s economic recovery and reconstruction efforts.
As part of the visit, Al-Falih and Syrian Economy Minister Mohammed Nidal Al-Shaar inaugurated the Fayhaa White Cement Factory in Adra Industrial City, the first of its kind in Syria.
Cementing relations
Ƶ’s Al-Falih and Syria’s Al-Shaar at the launch of the Fayhaa White Cement Factory. SANA
Backed by a $20 million investment from Ƶ’s Northern Region Cement Co., the plant is set to produce high-grade white cement while creating 130 direct jobs and more than 1,000 indirect employment opportunities.
“The launch of this project reflects our commitment to Syria’s reconstruction and to opening new avenues for regional investment,” said Obaid Al-Sobiei, CEO of Northern Region Cement.
The Kingdom will also fund the construction of Al-Jawhara Tower, a 32-storey skyscraper in the center of the Syrian capital, Damascus.
Spanning 25,000 sq. meters with an estimated cost exceeding $100 million, the project marks one of the most significant Saudi investments in Syria.
Obaid Al-Sobiei, CEO of the Kingdom’s Northern Region Cement Co, speaking at the launch. SANA
In April, Ƶ and Qatar announced a joint initiative to settle Syria’s $15 million debt to the World Bank as part of broader efforts to support the financial recovery of the war-torn nation.
Last month, Al-Falih conducted a virtual meeting with Syrian Economy Minister Mohammad Al-Shaar, and discussed opportunities for collaboration in both public and private sectors.
The Syrian government this month also amended the country’s investment law, in a move that is expected to support more domestic and foreign investment.
During a visit by a Saudi delegation last week, Al-Shaar said that the new law provides an attractive legal environment that promotes the entry of capital, SANA reported.
The law will support the investment process and enhance the role of the private sector in reconstruction and economic development, the minister added.
Surge in Saudi-Syrian trade figures signals renewed ties
According to official data from Ƶ’s General Authority for Statistics, Syria was the Kingdom’s 53rd largest export destination in April, with non-oil exports rising by 153.3 percent year on year to reach SR81.9 million.
These exports are composed primarily of plastics and rubber products, making up 33 percent, 26 percent plant products, and 14 percent prepared foodstuffs, beverages, and tobacco.
The remaining exports comprise a variety of chemical products, articles made from stone, cement, ceramics, and glass, reflecting the expanding diversity of trade flows.
On the import side, Syria ranked 60th among countries supplying goods to Ƶ, with imports totaling SR78.5 million in April, representing a sharp 149.7 percent year-over-year increase.
The bulk of these shipments consists of animal and plant products, edible oils and fats, and processed food and beverages, indicating Syria’s agricultural and agri-food sector’s growing relevance to the Saudi market.
This recent growth in trade volumes follows the rapid evolution of political dynamics between Riyadh and Damascus. In May 2024, the Kingdom formally reopened its embassy in Syria after a 12-year rupture following the outbreak of the Syrian conflict in 2011.
Ƶ does not export oil to the country primarily because of the comprehensive sanctions regime imposed on the Syrian government following the outbreak of the civil war in 2011.
While Syria once produced and exported substantial quantities of oil, the war and sanctions effectively eliminated its export capacity after late 2011.
Today, production remains constrained, and Syria relies heavily on imports, particularly from Iran, to meet its domestic demand.
The trade figures reported by GASTAT, while still modest in comparison to the Kingdom’s broader trade profile, are significant in light of where bilateral relations stood just two years ago.
The tripling of trade volumes year on year, both in exports to and imports from Syria, illustrates how quickly economic engagement can rebound when backed by political will.
Before the Syrian conflict erupted in 2011, the country enjoyed strong business ties with Ƶ, with bilateral trade peaking at approximately $1.3 billion in 2010, marking the Kingdom as one of Syria’s most significant trading partners before the war began, according to a 2023 article by the Christian Science Monitor.
World Bank data from the World Integrated Trade Solution confirms that Syria exported goods worth $543 million to Ƶ in 2010, underscoring the depth of their commercial ties at that time.
Saudi exports to Syria primarily included oil derivatives, petrochemicals, plant oils, and dates, while Syria exported fruits, vegetables, livestock, textiles, and furniture to the Kingdom.
The two countries were founding members of the Greater Arab Free Trade Area, facilitating reduced tariffs and cross-border trade.
Saudi investors also held over $700 million in joint projects within Syria by the late 1990s. These ties collapsed following the war, sanctions, and diplomatic breaks. With recent normalization and high-level visits, both nations are now reviving their economic relationship on the foundation of this previously robust partnership.
Saudi POS value holds above $3bn for 4th consecutive week
Updated 23 July 2025
MIGUEL HADCHITY
RIYADH: Hotel spending in Ƶ surged by 2.1 percent in the week ending July 19, driving total point-of-sale transactions to SR12.19 billion ($3.25 billion), even as most other sectors saw declines.
Total POS value remained above the $3 billion mark for the fourth consecutive week despite a 7.1 percent weekly drop, underscoring the resilience of consumer activity across the Kingdom, according to data from the Saudi Central Bank, also known as SAMA.
The hotel sector recorded SR287.44 million in transaction value, with the number of transactions slipping 2.1 percent to 822,000, while overall POS transactions across all sectors declined 4.8 percent to 212.73 million.
According to SAMA’s bulletin, the clothing and footwear sector saw the largest decrease, dropping by 13 percent to SR719.45 million. Spending on communications ranked next, dropping 12.5 percent to SR102.94 million.
Restaurants and cafes — the sector with the biggest share of total POS value — recorded a 6.9 percent decrease to SR1.79 billion, while the food and beverages sector saw a 6.6 percent decrease, totaling SR1.73 billion and claiming the second-biggest share of this week’s POS. Spending on miscellaneous goods and services ranked third despite a 9.9 percent decline to SR1.36 billion.
The top three categories accounted for approximately 39.9 percent of the week’s total spending, amounting to SR4.88 billion.
The smallest decline was seen in spending on building materials which decreased by 0.2 percent to SR330.02 million, followed by expenditure on transportation which saw a 0.6 percent dip to SR718.02 million.
The health sector saw a decrease of 8.1 percent to SR740.27 million, while the furniture sector declined by 3.7 percent to SR265.57 million.
Spending on jewelry dipped by 11.7 percent to SR269.61 million, followed by a 9.9 percent decrease in spending on recreation and culture.
Geographically, Riyadh dominated POS transactions, with expenses in the capital reaching SR4.20 billion, a 6 percent decrease from the previous week.
Jeddah followed closely with a 7.2 percent dip to SR1.76 billion, while Dammam ranked third, down 6.9 percent to SR582.99 million.
Abha saw the smallest decrease, inching down 1.1 percent to SR207.48 million, followed by Makkah with a 4.5 percent decrease to SR507.03 million.
Hail recorded 3.69 million deals in transaction volume, down 7.6 percent from the previous week, while Tabuk reached 4.16 million transactions, dropping 9.1 percent.
