SINGAPORE: Oil prices gave away earlier gains on Wednesday as analysts warned of a downward correction after prices have gained more than 13 percent over the past month.
Despite the decline, overall oil markets remained well supported on the back of tightening supply and strong global demand.
The tighter fundamentals lifted both crude futures benchmarks about 13 percent above levels in early December, helped by production curbs by OPEC and Russia, as well as by healthy demand growth.
Brent crude futures were at $69.07 a barrel at 0441 GMT, down from a high of $69.37 earlier in the day and 18 cents below their last close.
Brent on Monday rose to $70.37 a barrel, its highest since December 2014, which was the beginning of a three-year oil price slump.
US West Texas Intermediate (WTI) crude futures were at $63.68 a barrel, down 5 cents from their last settlement. WTI rose to $64.89 on Tuesday, also the highest since December 2014.
Norbert Ruecker, head of commodity research at Swiss bank Julius Baer, said a price “correction should occur... (as) hedge fund expectations for further rising prices have reached excessive levels.”
He said this was especially the case as political risk factors that have helped boost Brent, including tensions in Qatar, and the Kurdish region of Iraq and in Iran have so far not caused significant supply disruptions.
Money managers have raised the bullish positions in WTI and Brent crude futures and options to a record, according to data from the US Commodity Futures Trading Commission and the Intercontinental Exchange.
Wang Tao, Thomson Reuters commodity analyst, said Brent may fall to around $68.50 a barrel due to technical chart indicators.
Still, traders and analysts said overall oil markets were well supported, and steep price falls unlikely.
The Organization of the Petroleum Exporting Countries (OPEC) and Russia have continued to withhold production since January last year and the cuts are set to last through 2018.
This restraint has coincided with healthy oil demand.
“Oil remains underpinned by the solid economy with strong oil demand tightening global oil inventories. The past years’ surplus supplies are slowly disappearing,” Ruecker said.
One factor that in 2017 prevented crude prices from rising further was a surge in US production.
Despite a recent drop due to extreme cold, US crude output is expected to soon break through 10 million barrels per day, challenging top producers Russia and Saudi Arabia.
Oil loses earlier gains as analysts warn of correction
Oil loses earlier gains as analysts warn of correction
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Closing Bell: Saudi main index closes in green at 11,876
RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Tuesday, as it gained 45.53 points or 0.38 percent to close at 11,875.91.
The total trading turnover of the benchmark index was SR6.09 billion ($1.62 billion) with 138 stocks advancing, while 90 declining.
The parallel market, Nomu, however, marginally slipped by 0.09 percent to 29,570.56.
The MSCI Tadawul Index gained 4.76 points to close at 1,491.83.
The best-performing stock of the day was Shatirah House Restaurant Co., also known as Burgerizzr. The company’s share price increased by 9.98 percent to SR22.26.
The share price of Fawaz Abdulaziz Alhokair Co. increased by 8.29 percent to SR14.10, while the stock price of Development Works Food Co. surged by 6.85 percent to SR131.
Conversely, the share price of Al-Baha Investment and Development Co. slipped by 9.68 percent to SR0.28.
On the parallel market, the best performer was Knowledge Tower Trading Co., whose share price surged by 9.61 percent to SR10.84.
On the announcements front, Molan Steel Co. said it signed a memorandum of understanding with Yara International Limited Co. to acquire 100 percent of Mayar International Industry.
In a Tadawul statement, the company said that the financial consideration for the transaction depends on the results of the financial evaluation and due diligence.
The company added that the transaction will be financed through Molan Steel’s cash flows and resources.
According to the statement, the acquisition will be subject to a number of regulatory approvals including relevant authorities in the Kingdom.
Molan Steel Co.’s share price increased by 2.84 percent to SR3.26.
Saudi Arabia’s Tabuk targets development with over $67m investment deals
JEDDAH: Investment contracts worth SR252 million ($67.2 million) have been signed to boost Saudi Arabia’s Tabuk region, focusing on healthcare, logistics, housing, entertainment, and education to spur economic growth.
The agreements, finalized during a visit by Minister of Municipalities and Housing Majid Al-Hogail, are expected to stimulate the local economy while generating both direct and indirect employment opportunities, the Saudi Press Agency reported.
During his tour to the region, Al-Hogail held discussions with regional investors and business leaders, focusing on expanding opportunities in municipal and housing development.
The minister underscored the government’s commitment to fostering investments that align with the aspirations of Tabuk’s residents and contribute to Vision 2030’s broader economic goals.
The inspection visit included reviews of key infrastructure projects, including road upgrades, traffic system enhancements, and housing developments.
Al-Hogail emphasized the importance of ensuring high-quality services for residents and visitors, stressing that these initiatives are integral to achieving the ministry’s strategic objectives.
He also witnessed the delivery of 533 new housing units to beneficiaries of the Development Housing Program, a key initiative supporting low-income families in Saudi Arabia.
This latest distribution brings the total number of housing units delivered under the program to 2,479, highlighting the government’s commitment to addressing housing needs.
At the start of his tour, Al-Hogail met with municipal leaders and heads of municipalities to discuss progress on ongoing projects, emphasizing the need for continuous improvements in service delivery.
He also visited the Prince Fahd bin Sultan Promenade, where redesigned storefronts inspired by Tabuk’s heritage have transformed the area into a vibrant destination for locals and tourists.
Al-Hogail inaugurated a branch of the Real Estate Developer Services Center, Etmam, which streamlines government services for beneficiaries in one location. He engaged with citizens to gather feedback and suggestions for further enhancing municipal services in the region.
The visit coincided with the announcement by the Ministry of Municipalities and Housing’s investment arm, the National Housing Co., of 11 new residential projects in Khuzam, north of Riyadh. These developments, featuring over 10,000 modern-designed units, are aimed at achieving the Kingdom’s homeownership goals.
This visit is part of a series of inspections the minister is conducting across Saudi Arabia to oversee municipal and housing sector initiatives, review ongoing projects, and ensure their progress aligns with Vision 2030’s transformative goals.
Pakistan Stock Exchange crosses 96,000 to hit record intraday high
- Higher remittances, exports, foreign investment credited for bullish activity, analysts say
- Stock Exchange witnessing bullish trend since government slashed policy rate this month
ISLAMABAD: The Pakistan Stock Exchange on Tuesday surged past 96,000 points to hit a record high in intraday trading, with analysts attributing the rally to a current account surplus in October due to higher remittances, exports and foreign direct investment.
The benchmark KSE-100 index climbed to a record 935.66 points or 0.98 percent to stand at 95,931.33 from the previous close of 94,995.67 points. It touched the 96,036.48 mark for the first time at 2:44pm PST.
Ahsan Mehanti at the Arif Habib Corporation told Arab News potential investors had weighed surging foreign reserves as well as government decisions over reforms for loss-making state-owned enterprises, independent power producers and energy pricing.
“Stocks bullish on reports of current account surplus of $349 million in Oct. 2024 on higher remittances, exports and FDI rising by 32pc to $904m for Jul-Oct. 2024,” he said. “The next triggers could be easing political noise amid protest calls by opposition.”
Pakistan’s external current account recorded a surplus of $349 million in October 2024, marking the third consecutive month of surplus and the highest in this period. The current account reflects a nation’s transactions with the world, encompassing net trade in goods and services, net earnings on cross-border investments and net transfer payments.
A surplus indicates that a country is exporting more than it is importing, thereby strengthening its foreign exchange reserves.
A bullish trend has been observed at the stock market since Pakistan’s central bank cut its key policy rate by 250 basis points, bringing it to 15 percent earlier this month. It’s economic indicators have also steadily improved since securing a 37-month, $7 billion bailout from the International Monetary Fund (IMF) in September.
Before this, the country went through a prolonged economic crisis that drained its foreign exchange reserves and saw its currency weaken amid double-digit inflation.
Last year, Pakistan narrowly avoided a sovereign default by clinching a last-gasp $3 billion IMF bailout deal.
Saudi Arabia’s National Housing Co. launches 11 residential projects in Riyadh’s Khuzam area
JEDDAH: Saudi Arabia’s National Housing Co. has launched 11 projects in Riyadh’s Khuzam area, offering over 10,000 units to meet growing demand for quality housing in the Kingdom.
These developments, including modern designs, are part of NHC’s strategic push to diversify housing supply and address the varied needs of Saudi families.
The projects range from luxurious villas to contemporary apartments, catering to different client needs, according to a press release.
These include Khuzam Park Residence, with units up to 379 sq. meters, and Tala Khuzam, offering units as large as 430 sq. meters. Additionally, the Tala Khuzam project features units as small as 219 sq. meters.
NHC, one of the leading developers of suburban and residential areas in Saudi Arabia, plays an important role in the real estate sector, focusing on improving quality of life and expanding housing supply across the Kingdom.
These efforts are aligned with Vision 2030, which aims to raise homeownership among Saudi families to 70 percent.
The company also announced the Eyal Khuzam project which offers luxury units up to 796 sq. meters, while Jawharat Khuzam 1 boasts units up to 929 sq. meters. The Nafah project offers units up to 600 sq. meters.
Within the Regan compound, which was unveiled at the Cityscape exhibition earlier this month, NHC introduced Rasin Rejan Hills and Ewan Rejan projects, with residential units up to 435 sq. meters. The company said both developments feature high privacy, 24/7 security, and are positioned as ideal living spaces in Khuzam.
Additionally, NHC launched the Azyan Khuzam project, offering units from 200 to 471 sq. meters, and the Jadaya project, with units up to 538 sq. meters. The Ewan Khuzam project includes villas of up to 594 sq. meters.
NHC emphasizes its commitment to maintaining quality standards with thoughtful designs and well-integrated infrastructure, including educational, health care, sports, cultural, and commercial amenities, as well as green spaces.
Over the course of the four-day Cityscape exhibition, NHC signed more than 38 agreements worth over SR5 billion ($1.33 billion) in the supply chain sector.
These agreements, which involve both local and international companies, cover various areas including logistics services, securing essential materials, and localizing industries within the sector.
COP29: Developing countries urge action on climate finance deal
RIYADH: Measures available to manage the rising global temperature are not sufficient, a leading Thai official has told the UN’s climate change conference in Baku.
Speaking at COP29 in Azerbaijan, the Asian country’s Minister of Natural Resources and the Environment, Chalermchai Sri-on, called for decisions to be made on climate financing to help those nations most affected by rising temperatures.
His comments were echoed by other ministers throughout the morning session, which came a day after the UN’s climate chief Simon Stiel told world leaders to “cut the theatrics and get down to business” with regards to agreeing a funding deal for developing countries.
Addressing delegates, Sri-on said: “The first global stocktake significantly showed that our current efforts are still insufficient to control global temperature increase.”
Malaysia’s Minister of Natural Resources and Environmental Sustainability, Nik Nazmi Nik Ahmad, urged developed nations to fulfill their financial responsibilities, ensuring funds are “accessible and impactful.”
Romania’s Minister of the Environment, Waters and Forests, Costel Alexe, called for prioritizing action over political differences, stating: “Failure is not an option for anyone.”
He also emphasized Romania’s focus on private-sector partnerships for decarbonization in energy, transport, and industry.
Diego Pacheco of Bolivia pointed to the responsibility of developed nations, stating: “Our countries are suffering the impacts of climate change, due largely to the historical emissions of developed countries.”
Sophalleth Eang, Cambodia’s minister of environment, reaffirmed Cambodia’s ambitious climate targets, including carbon neutrality by 2050, as outlined in its 2020 updated nationally determined contributions.
Franz Tattenbach, Costa Rica’s minister of environment and energy, expressed optimism in the ripple effects of decarbonization, saying: “We are an ambitious country, and we hope to scale up our ambition. We believe that decarbonization could lead to decarbonization in other countries.”
Austria’s Leonore Gewessler highlighted the need for urgent united action, saying: “It is our collective responsibility to make more progress without further delay.”
Additional leaders addressed the challenges of achieving meaningful climate goals amid global crises.
Burkina Faso’s Roger Baro urged for substantial commitments to protect the environment and develop resilient economies, while Celine Caron-Dagioni of Monaco called for updated contributions aligned with long-term climate goals.
Namibia’s Pohamba Penomwenyo Shifeta stressed the importance of balanced climate financing.
Speakers also showcased national achievements and initiatives. Uruguay’s Robert Bouvier Torterolo highlighted the country’s renewable energy success, with over 95 percent of its electricity derived from sustainable sources. Senegal’s Daouda Ngom emphasized the need for accessible financing to support adaptation plans.
Nigeria’s Balarabe Abbas Lawal detailed investments in renewable energy and afforestation, while Rwanda’s Valentine Uwamariya highlighted the significant economic cost of climate change to her nation and called for “ambitious, balanced, fair, and just outcomes” from the climate change forum.
