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Oil Updates — crude rises as US inventory decline heightens supply concerns

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

Oil Updates — crude rises as US inventory decline heightens supply concerns

Oil Updates — crude rises as US inventory decline heightens supply concerns

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. 


Oil Updatess — prices stabilize after US-Japan trade deal

Oil Updatess — prices stabilize after US-Japan trade deal
Updated 11 sec ago

Oil Updatess — prices stabilize after US-Japan trade deal

Oil Updatess — prices stabilize after US-Japan trade deal
  • US-Japan trade deal puts the brakes on oil’s three-day slide
  • Market cautious ahead of EU-China summit

NEW DELHI: Oil prices were little changed on Wednesday after falling for three consecutive sessions as a US tariff deal with Japan improved global trade sentiment.

Brent crude futures were down 2 cents, or 0.03 percent, at $68.57 a barrel as of 8:54 a.m. Saudi time. US West Texas Intermediate crude futures were also down 2 cents, at $65.29 per barrel.

Both benchmarks lost about 1 percent in the previous session after the EU said it was considering countermeasures against US tariffs, as hope faded for a deal ahead of an AuG. 1 deadline. 

President Donald Trump said on Tuesday that the US and Japan had struck a trade deal that includes a 15 percent tariff on US imports from Japan. He also said Japan had agreed to invest $550 billion in the US.

Meanwhile, industry expectations are low for Thursday’s EU-China summit, which will test the bloc’s unity and resolve amid mounting trade tensions with both Beijing and Washington.

“The slide (in prices) of the past three sessions appears to have abated but I don’t expect much of an upward impetus from news of the US-Japan trade deal as the hurdles and delays being reported in talks with the EU and China will remain a drag on sentiment,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.

China’s commerce minister and the European Union’s trade chief had a “candid and in-depth” discussion on economic and trade cooperation as well as other issues that both sides face ahead of the summit, the Chinese ministry said on Wednesday.

Separately, US crude and gasoline stocks fell last week, market sources said, citing American Petroleum Institute figures on Tuesday. Distillate stocks rose by 3.48 million barrels, they added.

“This will offer some relief to the middle distillate market, which has been looking increasingly tight,” ING analysts wrote in a note, adding that low crude inventories will offer some support to prices even as a large surplus is expected to hit the market later in the year.

In another bullish sign for the crude market, the US energy secretary said on Tuesday that the US would consider sanctioning Russian oil to end the war in Ukraine.

The EU on Friday agreed its 18th sanctions package against Russia, lowering the price cap for Russian crude. But analysts said a lack of US participation would hinder the effectiveness of the package. 


Ƶ opens business travel channel with Syria to boost investment

Ƶ opens business travel channel with Syria to boost investment
Updated 22 July 2025

Ƶ opens business travel channel with Syria to boost investment

Ƶ opens business travel channel with Syria to boost investment
  • Syrian businessmen can apply for travel licenses directly at embassy in Damascus
  • Kingdom to organise Saudi-Syrian investment forum in Damascus

RIYADH: Ƶ will introduce travel permits for businessmen and investors from Syria to deepen bilateral relations and facilitate mutual visits. 

Syrian businessmen can now apply for travel licenses directly at the embassy in Damascus, the Kingdom’s embassy said in an official post on X. Meanwhile, Saudi investors seeking to visit Syria can register via the Interior Ministry’s e-platform. 

Ƶ and Syria have made significant strides in restoring diplomatic ties, with the Kingdom reopening its embassy in Damascus in 2024 after a 12-year hiatus. 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. 

“The embassy announces the availability of travel permits for interested Saudi and Syrian businessmen and investors, enabling them to exchange visits and explore investment opportunities in the two brotherly countries,” the statement said. 

The Kingdom’s Ministry of Investment announced that it will organize a Saudi-Syria Investment Forum in Damascus to explore cooperation opportunities to promote sustainable development in the two countries.

In an X post, the ministry said the forum is expected to witness significant participation from public and private sector entities on both sides.

In June, Saudi Minister of Investment Khalid Al-Falih held a virtual meeting with his Syrian counterpart, Mohammad Al-Shaar, to explore investment partnerships and discuss opportunities for collaboration across public and private sectors. 

Al-Falih affirmed the Kingdom’s commitment to helping stabilize and develop the Syrian economy, adding that stronger ties would serve the mutual interests of both countries and promote regional economic prosperity. 

Further aiding Syria’s economic recovery, US President Donald Trump signed an executive order in June to dismantle sanctions against the country. 

Following the announcement, Syrian Minister of Foreign Affairs and Expatriates Asaad Hassan Al-Shaibani posted on X that the decision by the US administration would support Syria’s economic revival and reintroduce the country to the global community. 


Most Gulf bourses fall on US tariff concerns, weaker oil

Most Gulf bourses fall on US tariff concerns, weaker oil
Updated 22 July 2025

Most Gulf bourses fall on US tariff concerns, weaker oil

Most Gulf bourses fall on US tariff concerns, weaker oil

BENGALURU: Most Gulf stock indexes dipped on Tuesday, as investors worried about fading prospects of the EU’s trade deal with the US ahead of a looming tariff deadline, with weak oil prices offsetting strong corporate earnings.

The EU is exploring broader counter-measures against the US as prospects of an acceptable trade agreement with Washington wane, according to EU diplomats.

US President Donald Trump’s imposition of tariffs around the world risks hurting global economic growth, and with it oil consumption.

Dubai’s main share index eased 0.3 percent, marking the third straight session of losses as investors remained cautious ahead of key earnings and locked in profits following a multi-year rally.

Index heavyweight Dubai Islamic Bank dropped 1.2 percent while budget carrier Air Arabia fell over 3 percent, ending a five-session winning streak.

In Abu Dhabi, the index was under pressure as a wave of earnings releases this week kept many investors on the sidelines.

Qatar’s stock index reversed early losses to finish 1.1 percent higher, reaching its highest level in more than two and a half years, as nearly all sectors advanced.

Banking stocks led the advance, supported by strong earnings. Qatar Islamic Bank soared 6 percent, rising for a fourth straight session after reporting upbeat results.

Outside the Gulf, Egypt’s blue-chip index declined 1 percent, pulling back from a record high. 


Egypt current account deficit narrows to $13.2bn in 9 months through March

Egypt current account deficit narrows to $13.2bn in 9 months through March
Updated 22 July 2025

Egypt current account deficit narrows to $13.2bn in 9 months through March

Egypt current account deficit narrows to $13.2bn in 9 months through March

DUBAI: Egypt’s current account deficit narrowed to $13.2 billion in the nine months through March 2025, from $17.1 billion in the same period a year earlier, Egypt’s central bank said on Tuesday.

The bank attributed the slimmer deficit to an 86.6 percent increase in remittances from Egyptians working abroad, as well as a rise in the services surplus due to 23 percent higher tourism revenue.

Oil exports declined by $430.5 million to $4.2 billion, from $4.6 a year earlier, while oil imports increased by $1.2 billion to $14.5 billion, from $9.7 billion.

Egypt has been seeking to import more fuel oil and liquefied natural gas this year to meet its power demands after enduring blackouts during periods of shaky gas supply in the past two years.

Concerns intensified after the supply of natural gas from Israel to Egypt dropped during Israel’s air war with Iran.

Suez Canal revenues declined to $2.6 billion, from $5.8 billion in a year earlier, as revenue from the vital global trade route continued to suffer because of Yemeni Houthis’ attacks on ships in the Red Sea.

The Iran-aligned group says it attacks ships linked to Israel in support of Palestinians in Gaza.

Meanwhile, Egypt’s tourism revenue reached $12.5 billion from July 2024 through March 2025, compared to $10.9 billion in the same period a year earlier.

Remittances from Egyptians working abroad increased to $26.4 billion, from $14.5 billion.

Foreign direct investment hit $9.8 billion, compared to $23.7 billion.


Closing Bell: Saudi main index slips to 10,843

Closing Bell: Saudi main index slips to 10,843
Updated 22 July 2025

Closing Bell: Saudi main index slips to 10,843

Closing Bell: Saudi main index slips to 10,843
  • Parallel market Nomu dropped 340.01 points to close at 26,740.01
  • MSCI Tadawul Index declined by 1.33% to 1,390.20

RIYADH: Ƶ’s Tadawul All Share Index slipped on Tuesday, as it shed 137.97 points, or 1.26 percent, to close at 10,843.20. 

The total trading turnover of the benchmark index was SR4.92 billion ($1.31 billion), with 25 of the listed stocks advancing and 231 declining. 

The Kingdom’s parallel market, Nomu also dropped 340.01 points to close at 26,740.01. 

The MSCI Tadawul Index declined by 1.33 percent to 1,390.20. 

The best-performing stock on the main market was Sport Clubs Co., which debuted on the benchmark index on Tuesday. The firm’s share price advanced by 24 percent to SR9.30. 

The share price of Tourism Enterprise Co. also rose by 6.25 percent to SR1.02. 

Riyadh Cables Group Co. saw its stock price climb by 1.92 percent to SR132.50. 

The share price of Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, declined by 5.71 percent to SR29.38. 

On the announcements front, Etihad Etisalat Co., also known as Mobily, announced its net profit for the first half of the year reached SR1.59 billion, representing a 22.94 percent increase compared to the same period in 2024. 

In a Tadawul statement, Mobily attributed the rise in net profit to increased revenues across all business segments and its growing customer base. 

Mobily saw its stock price edge up by 1.90 percent to SR56.25. 

Saudi Automotive Services Co. said its net profit for the first half witnessed a year-on-year rise of 48.64 percent to SR33.98 million. 

According to SASCO, the rise in net profit was driven by a higher number of service stations, strong sales from its SASCO Palm and transportation segments, as well as an increase in the selling prices of diesel. 

The share price of SASCO rose by 1.48 percent to SR55. 

Dar Almajed publishes IPO prospectus 

Dar Almajed Real Estate Co. has published the prospectus for its initial public offering, which will list 90 million shares with a nominal value of SR1 each on the main market. 

The development follows the Kingdom’s Capital Market Authority’s approval for the company to float 30 percent of its SR300 million capital in March. 

The book-building process commenced on June 29 and will conclude on Aug. 4. 

The retail subscription period will run from Aug. 14 to 18. 

The company has appointed Saudi Fransi Capital as financial adviser, lead manager, institutional bookrunner, and underwriter for the IPO.