Oil prices slid more than 1 percent on Tuesday as expectations that OPEC would agree to raise oil supply in a meeting this week weighed on sentiment, already hit by concerns over slowing Chinese demand.
Brent crude dropped 80 cents, or 1.3 percent, to $62.89 a barrel in early London trading, after losing 1.1 percent the previous day. US West Texas Intermediate (WTI) crude fell 69 cents, or 1.1 percent, to $59.95 a barrel, having lost 1.4 percent on Monday.
They both touched the lowest in more than 6 days, extending losses that started late last week.
Expectations that the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, would boost oil output from April are pushing prices lower, said Satoru Yoshida, a commodity analyst with Rakuten Securities.
“Concerns over an increase in OPEC+ supply and an end of Saudi Arabia’s voluntary cut of 1 million barrels per day (bpd) this month weighed on oil prices,” he said.
The group meets on Thursday and could discuss allowing as much as 1.5 million barrels per day (bpd) of crude back into the market.
OPEC oil output fell in February as a voluntary cut by Saudi Arabia added to reductions agreed to under the previous OPEC+ pact, a Reuters survey found, ending a run of seven consecutive monthly increases.
Russian oil and gas condensate output fell to 10.1 million bpd in February from 10.16 million bpd in the previous month, despite plans to boost it, according to Reuters calculations based on an Interfax report citing official data.
OPEC+ is monitoring global inventories and the rate of drawdowns will be a factor discussed on Thursday.
“Oil prices may stay under pressure as investors are making position adjustments ahead of the OPEC meeting,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.
Market sentiment was also dampened by weak manufacturing data out of China, Kikukawa said.
China’s factory activity growth slipped to a nine-month low in February, which may curtail Chinese crude demand and pressure oil prices.
Oil slides 1% on fears over higher OPEC supply, slower China demand
Oil slides 1% on fears over higher OPEC supply, slower China demand
Iraqi envoy calls for joint security efforts with Pakistan on national army’s 104th anniversary
- Ambassador Lafta attended a ceremony as chief guest at the National Counter Terrorism Center in Pabbi
- Pakistan and Iraq have strengthened defense ties in recent years, cooperating in the fight against militancy
ISLAMABAD: Iraqi Ambassador to Pakistan Hamid Abbas Lafta emphasized the need for joint security efforts to combat militancy during a ceremony marking the 104th anniversary of his country’s national army, according to Pakistan’s military media wing on Wednesday.
Pakistan and Iraq have strengthened ties in recent years through defense cooperation, with Islamabad providing training to Iraqi security forces. In 2014, Iraq procured Super Mushak trainer aircraft from Pakistan to bolster defense relations between the two Muslim-majority nations.
Lafta attended the ceremony to mark the anniversary of the Iraqi army as the chief guest at the National Counter Terrorism Center in Pabbi, Sarai Alamgir, according to the Inter-Services Public Relations (ISPR).
“The Iraqi ambassador stressed the importance of joint security and counter-terrorism efforts between Iraq and Pakistan,” it said in a statement.
During his speech, Lafta praised the sacrifices made by the Iraqi army in the fight against militancy and emphasized the need to strengthen cooperation between Pakistan and Iraq.
He highlighted the importance of security collaboration between the two countries and commended their joint efforts in combating militancy. Lafta called for further cooperation to benefit the people of both nations, expressing his commitment to forge a “united front” in the fight against extremism.
The Iraqi envoy also pledged to work with Pakistan for regional peace and to strengthen the friendship between the two countries.
Last year in August, Pakistan’s Chairman Joint Chiefs of Staff Committee, General Sahir Shamshad Mirza, met Iraq’s Secretary of Defense, Lt. Gen. Ahmed Dawood Salman, to discuss enhancing defense and security cooperation between the two states.
A few months before, in May, Defense Minister Khawaja Asif met Lafta, seeking greater cooperation in all fields of mutual interest, particularly in defense.
Israeli strikes kill dozens in Gaza as US pushes for ceasefire
- US, Qatar, Egypt intensify ceasefire efforts amid ongoing conflict
- Israel says it will not end the war until Hamas is dismantled, hostages free
CAIRO: Israeli military strikes across Gaza killed at least 22 people on Wednesday, Palestinian medics said, as the US stepped up efforts to overcome sticking points between Israel and Hamas to reach a ceasefire to end the war.
One of the airstrikes killed at least 10 people in a multi-story house in the Sheikh Radwan neighborhood of Gaza City on Wednesday, while another killed five in the nearby Zeitoun suburb, medics said.
In Deir Al-Balah city in central Gaza, where hundreds of thousands of Palestinians are sheltering, an Israeli airstrike killed three other people.
In Jabalia, where the army has operated for more than three weeks, an Israeli airstrike killed four people, medics said.
On Tuesday, Israeli military strikes killed at least 24 Palestinians across the Gaza Strip, medics said, with two airstrikes hitting tent encampments in Mawasi, to the west of the southern city of Khan Younis, killing 18 people. The dead included several women and children.
There was no comment by the Israeli military on those incidents.
As Israeli continued its bombardments, the US, Qatar and Egypt were making the most intensive effort in months to reach a ceasefire, with one source close to the talks saying this was the most serious attempt to reach a deal so far.
The outgoing US administration has called for a final push for a deal before President Joe Biden leaves office, and many in the region view President-elect Donald Trump’s inauguration on Jan. 20 as an unofficial deadline.
“Things are better than ever before, but there is no deal yet,” the source told Reuters.
But with the clock ticking, both sides accuse the other of blocking a deal by adhering to conditions that have torpedoed all previous peace efforts for more than a year.
On Tuesday, Hamas stood by its demand that it will only free its remaining hostages if Israel agrees to end the war and withdraw all its troops from Gaza. Israel says it will not end the war until Hamas is dismantled and all hostages are free. Hamas also said that Trump was rash to say there would be “hell to pay” unless the hostages go free by his inauguration.
Osama Hamdan, an official with the Islamist group, told a news conference in Algiers on Tuesday: “I think the US president must make more disciplined and diplomatic statements.”
Nearly 46,000 Palestinians have been killed in Israel’s assault on Gaza, according to health officials in the enclave. The assault was launched after Hamas fighters stormed Israeli territory on Oct. 7, 2023, killing 1,200 people and capturing more than 250 hostages, according to Israeli tallies.
France urges European Commission to be firm against Musk interference
“Either the European Commission applies with the greatest firmness the laws that we have given ourselves to protect our public space, or it does not do so and then it will have to agree to give back the capacity to do so to the EU member states,” Foreign Minister Jean-Noel Barrot told France Inter radio.
EU could lift some Syria sanctions quickly, France says
PARIS: European Union sanctions in Syria that obstruct the delivery of humanitarian aid and hinder the country’s recovery could be lifted swiftly, France’s foreign minister said Wednesday.
The United States on Monday issued a sanctions exemption for transactions with governing institutions in Syria for six months after the end of Bashar Assad’s rule to try to ease the flow of humanitarian assistance.
Speaking to France Inter radio, Foreign Minister Jean-Noel Barrot said the EU could take a similar decision soon without giving precise timing, while adding that lifting more political sanctions would depend on how Syria’s new leadership handled the transition and ensured exclusivity.
“There are other (sanctions), which today hinder access to humanitarian aid, which hinder the recovery of the country. These could be lifted quickly,” said Barrot, who met Syria’s de facto leader Ahmed Al-Sharaa on Friday with Germany’s foreign minister.
“Finally, there are other sanctions, which we are discussing with our European partners, which could be lifted, but obviously depending on the pace at which our expectations for Syria regarding women and security are taken into account.”
Three European diplomats speaking on condition of anonymity said the EU would seek to agree to lift some sanctions by the time the bloc’s 27 foreign ministers meet in Brussels on Jan. 27.
Two of the diplomats said one aim was to facilitate financial transactions to allow funds to return to the country, ease air transport and lessen sanctions targeting the energy sector to improve power supplies.
Syria suffers from severe power shortages, with state-supplied electricity available two or three hours per day in most areas. The caretaker government says it aims to provide electricity for up to eight hours per day within two months.
The US waivers allow some energy transactions and personal remittances to Syria until July 7, but do not remove any sanctions.
Saudi education spending kicks off 2025 with 25% surge, pushing POS transactions to $4bn
RIYADH: Saudis spent SR207.3 million ($55.2 million) on education between Dec. 29 and Jan. 4, marking a 25.8 percent increase compared to the previous week.
According to the weekly point-of-sale transactions bulletin, this sector recorded the largest positive change over the seven-day period. It also witnessed growth in terms of the number of transactions, surging by 0.6 percent to reach 131,000.
Overall, Saudi Arabia’s POS spending registered a weekly increase of 9.2 percent, reaching SR15.1 billion, up from SR13.8 billion the week before. Figures from the Kingdom’s central bank showed that the hotel sector saw the second-largest gain at 15.1 percent to SR400.6 million.
Spending on recreation and culture followed, recording a 14.8 percent uptick to SR328.6 million.
Transactions on jewelry recorded an increase of 12.8 percent to reach SR355.4 million, and expenditure on construction and building materials surged by 3.9 percent to SR399.9 million.
Similarly, spending on food and beverages also grew 3.9 percent to SR2.16 billion, claiming the biggest share of the total POS value.
Expenditure in restaurants and cafes followed, recording a 10.1 percent increase to SR2.13 billion.
Spending on miscellaneous goods and services accounted for the third biggest POS share, with a 12.3 percent uptick, reaching SR1.8 billion.
Transactions in the leading three categories accounted for approximately 40.8 percent or SR6.1 billion of the week’s total value.
At 2.8 percent, the smallest increase occurred in spending on gas electronics, leading total payments to reach SR176 million.
Expenditures on transportation increased by 6.5 percent to SR140 million, while spending on public utilities surged by 7.3 percent to reach SR57.5 million.
Geographically, Riyadh dominated POS sales, representing around 33.8 percent of the total, with expenses in the capital reaching SR5.1 billion — a 7 percent decrease from the previous week.
Jeddah followed with a 13.1 percent surge to SR2.1 billion, and Dammam came in third at SR755 million, up 8.5 percent.
Buraidah experienced the most significant surge in spending, increasing 13.5 percent to SR358.7 million.
Tabuk and Abha recorded increases of 5.5 percent and 9.4 percent, reaching SR285.3 million and SR170.5 million, respectively.
Makkah and Jeddah saw the largest increases in terms of number of transactions, surging 11 percent and 8.5 percent, respectively, to 9.6 million and 27.4 million transactions.
