SINGAPORE: Oil prices fell on Friday after dropping about 3 percent a day earlier as coronavirus cases remained high in major oil consumer India and as a key fuel pipeline in the United States resumed operations after being shut due to a cyberattack.
Brent crude oil futures were down 10 cents, or 0.2 percent, at $66.95 a barrel by 0518 GMT, while West Texas Intermediate (WTI) was down three cents, or 0.1 percent, at $63.79 a barrel. Both prices are heading for their first weekly loss in three weeks.
“The commodity super cycle rally just hit a hard stop and the energy market doesn’t know what to make of Wall Street’s fixation over inflation and the slow flattening of the curve in India,” said Edward Moya, senior market analyst at OANDA. India is the world’s third biggest oil consumer.
“The crude demand story is still upbeat for the second half of the year and that should prevent any significant dips in oil prices,” he added.
Prices came under pressure as a broader surge in commodity prices and stronger-than-expected US consumer prices data this week stoked inflation concerns that could force the Federal Reserve to raise interest rates.
Raising rates typically boosts the US dollar, which in turn pressures oil prices because it makes crude more expensive for holders of other currencies.
India on Friday reported 343,144 new coronavirus cases over the past 24 hours, taking its overall caseload past the 24 million mark, while deaths from COVID-19 rose by 4,000.
In the United States, President Joe Biden reassured motorists that fuel supplies should start returning to normal this weekend, even as more filling stations ran out of gasoline across the Southeast nearly a week after a cyberattack on the nation’s top fuel pipeline.
Colonial Pipeline said late on Thursday it had restarted its entire pipeline system and had begun deliveries in all of its markets.
Traders were also watching the situation in the Middle East after Israel fired artillery and mounted more air strikes on Friday against Palestinian militants in the Gaza Strip amid constant rocket fire deep into Israel’s commercial center.
Oil extends loss on India COVID-19 cases, US pipeline restart
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Oil extends loss on India COVID-19 cases, US pipeline restart
- Raising rates typically boosts the US dollar, which in turn pressures oil prices because it makes crude more expensive for holders of other currencies
Saudi Arabia’s e-commerce sector sees 10% growth, official figures reveal
RIYADH: Saudi Arabia’s e-commerce sector saw its upward momentum continue in the fourth quarter of 2024, with 40,953 businesses now registered across the Kingdom— a 10 percent increase year on year.
The latest data from the Ministry of Commerce revealed that Riyadh led with 16,834 registrations, followed by Makkah with 10,314, and Eastern Province with 6,488. In the Madinah and Qassim regions, e-commerce enrollments reached 1,952 and 1,324, respectively.
The growth falls in line with Saudi Arabia’s ongoing transition toward a diversified, digitally-driven economy, with e-commerce playing a crucial role. The Kingdom now ranks among the top 10 countries globally in expansion of this sector.
These figures align with the nation’s goal to increase modern commerce and e-commerce’s share of the retail sector to 80 percent by 2030, as well as the government’s aspiration to raise online payments to 70 percent by the same year.
The Ministry of Commerce’s latest quarterly report further revealed that the logistics sector recorded an 82 percent surge in the issuance of records in the fourth quarter compared to the same period of 2023 to reach 16,561 registrations.
The capital led the list with 8,074 registrations, followed by Makkah with 4,235 and Eastern Province with 2,038. The Madinah and Qassim regions recorded 486 enrollments each.
Regarding application development, the report showed that the sector witnessed a 36 percent year-on-year jump in the issuance of records to reach 15,775 registrations in the final quarter of 2024, compared to the corresponding quarter of 2023.
Riyadh topped the list with 9,647 registrations, followed by Makkah with 3,191 and the Eastern Province with 1,590.
The Kingdom’s fintech solutions sector also recorded a 12 percent year-on-year increase with the issuance of 3,152 records in the fourth quarter of 2024, compared to the same period a year earlier.
The bulletin also underscored significant growth across various promising sectors, aligning with Saudi Arabia’s Vision 2030 goals.
Notable expansions were observed in several key fields, including cloud computing services, manufacturing solar panels and their parts, and real estate activities.
Growth was also seen in organizing tourist trips, entertainment events, conferences, and trade fairs.
These developments reflect the Kingdom’s strategic focus on fostering innovation and sustainable growth across diverse industries.
The ministry’s quarterly business sector bulletin provides an overview of the latest developments in the nation’s commercial environment, highlighting Saudi Arabia’s economy’s continued growth and diversification.
Jordan’s total FDI reaches $1.3bn, reflecting strong investor confidence
RIYADH: Jordan’s foreign direct investment inflows rose 3.7 percent year on year in the third quarter of 2024, reaching $457.8 million, according to preliminary data from the balance of payments.
This figure represents 3.2 percent of the nation’s gross domestic product, reflecting sustained investor confidence despite economic headwinds in the region, the Jordan News Agency reported.
For the first nine months of 2024, total FDI inflows amounted to $1.3 billion, or 3.3 percent of GDP, slightly down from $1.6 billion in the same period of 2023.
However, the 2024 figure surpassed cumulative FDI levels seen in both 2021 and 2022, signaling long-term growth momentum.
While foreign investment in Jordan has traditionally focused on energy, tourism, real estate, manufacturing, and services, the country launched its Economic Modernization Vision in 2022 to boost growth. The plan targets $60 billion in investments and 1 million jobs over the next decade, with key sectors including ICT, health care, tourism, real estate, mining, and agriculture.
The latest data showed that Arab nations contributed nearly half of Jordan’s FDI inflows in the first three quarters of 2024, accounting for 49.1 percent. Among these, Gulf Cooperation Council countries led with 31.7 percent.
EU nations accounted for 11.5 percent, with the Netherlands and France contributing 4.9 percent and 3.5 percent, respectively.
Non-Arab Asian countries made up 7.2 percent, led by China at 2.5 percent and followed by India at 2.1 percent. The remaining 32.2 percent came from various global regions.
The financial and insurance sector was the top recipient of FDI, attracting 15.7 percent of total inflows. Manufacturing attracted 7.7 percent, followed by information and communication with 7.5 percent, mining and quarrying at 7.3 percent, and transportation and storage at 7.0 percent. Wholesale and retail trade accounted for 6.1 percent.
Notably, real estate and land investments by non-Jordanian individuals made up 14.9 percent of total FDI, highlighting the ongoing appeal of Jordan’s property market.
Jordan’s strong FDI performance reflects its strategic efforts to enhance its investment climate and capitalize on its position as a regional business hub.
Economic experts projected Jordan’s growth to range between 2.5 percent and 3 percent in 2025, driven by an improved business environment and increased investments, according to the Jordan News Agency report last month.
This aligns with the country’s average growth rate of 2.5 percent over the past decade, as reported by the World Bank, providing a solid foundation for expansion.
Recent government measures, such as reducing penalties for unlicensed vehicles and offering tax cuts for electric cars, aim to boost financial and social stability, addressing economic challenges and attracting further investment.
Saudi Aramco increases February oil prices for Asia
RIYADH: Saudi Aramco has raised its crude oil prices for Asian customers in February, marking the first increase in three months, according to an official announcement made on Monday.
The official selling price for the benchmark Arab Light crude has been raised by 60 cents per barrel, following a significant drop to a four-year low in January.
For February, the price of Arab Light crude for Asian buyers has been set at $1.50 per barrel above the regional benchmark.
Other grades also saw price increases: the OSPs for Arab Extra Light and Super Light grades were raised by 60 cents per barrel and 50 cents per barrel, respectively.
Similarly, the OSP for Arab Medium crude was increased by 50 cents per barrel. However, the price for Arab Heavy crude saw a reduction of 50 cents per barrel.
For North America, Aramco has set the February OSP for Arab Light crude at $3.50 per barrel above the Argus Sour Crude Index.
These adjustments align with changes in the market structure for both the first and third month Dubai prices.
Data from Reuters shows that the spread widened by 42 cents per barrel in backwardation in December compared to the previous month.
February’s spot premiums for Middle Eastern crude grades recovered after falling to their lowest point in a year, driven by uncertainties surrounding Iranian and Russian supply chains.
In particular, some independent refiners in China turned back to Middle Eastern oil as new Western sanctions and strong demand in China pushed prices for Iranian and Russian oil to multiyear highs.
Saudi Aramco produces five grades of crude oil: Super Light, Arab Light, Arab Extra Light, Arab Medium, and Arab Heavy.
These grades are differentiated by their density: Super Light has a density greater than 40, Arab Extra Light ranges from 36 to 40, Arab Light falls between 32 and 36, Arab Medium is between 29 and 32, and Arab Heavy has a density of less than 29.
Saudi Aramco typically releases its crude OSPs around the 5th of each month, setting the pricing trend for other major producers, including Iran, Kuwait, and Iraq. These price benchmarks impact approximately 9 million barrels per day of crude oil shipments to Asia.
Saudi Aramco eyes oil refinery project in Bangladesh, ambassador reveals
- Essa Al-Duhailan highlighted the transformative potential of establishing a maritime route between Chattogram and Jeddah or Dammam
- Refinery aims to address Bangladesh’s growing demand for petroleum products
RIYADH: Saudi energy giant Aramco plans to build an oil refinery in Bangladesh, potentially transforming the sector in the Bay of Bengal, revealed the Kingdom’s Ambassador Essa Al-Duhailan.
During the launch of the report “Enhancing Saudi-Bangladesh Economic Engagement: Trends, Key Challenges and Long-Term Growth Prospects” at the Foreign Ministry in Dhaka, the ambassador emphasized Aramco’s potential investment.
Saudi Arabia, home to the largest Bangladeshi expatriate community, has increasingly engaged with Bangladesh through investment agreements and establishing a joint business council, signaling a deepening economic partnership.
The proposed refinery aims to address Bangladesh’s growing demand for petroleum products while positioning itself as a regional supplier to markets like China and India.
“We are talking about Aramco, the biggest oil company in the world. They are willing to come to Bangladesh to build a refinery here,” said Al-Duhailan, according to state-run news agency Bangladesh Sangbad Sangstha.
The ambassador highlighted the transformative potential of establishing a maritime route between Chattogram and Jeddah or Dammam, enhancing trade efficiency and connectivity, BSS reported.
“Our international company, Red Sea Gateway Terminal, is already operating the Patenga terminal and is keen to contribute to the Matarbari deep-sea port,” he added.
Reflecting on past challenges, Al-Duhailan mentioned Aramco’s previous high-profile delegations to Bangladesh from 2016-2018, which did not yield engagement. “But we will not talk about the past. We will talk about the future,” the ambassador said, calling for renewed focus on bilateral cooperation.
The event also spotlighted the broader Saudi-Bangladesh relationship. Al-Duhailan said that ACWA Power, the world’s largest renewable energy company, is exploring a $3.5 billion investment in Bangladesh.
He added that the South Asian country is a green field for investment while advocating for reforms to streamline bureaucratic processes and combat corruption.
The report detailed pathways to deepen economic ties and outlined opportunities for Bangladesh to boost exports to the Kingdom, expand imports of vital resources, and attract investment in key sectors.
Challenges such as bureaucratic inefficiencies and corruption were also addressed, with strategic recommendations for overcoming these barriers.
The ambassador emphasized the importance of combining political and economic engagement for mutual benefit. “We have unique relations… we have many success stories,” he said, urging both nations to create more collaborative achievements in trade, culture, tourism, and beyond.
The analysis, prepared by the Bangladeshi Foreign Ministry, serves as a roadmap for enhancing bilateral economic engagement, offering valuable insights for policymakers and investors from both nations. It sets the stage for a strengthened partnership poised to unlock new growth opportunities, BSS reported.
In March, Bangladesh secured a $1.4 billion financing deal with the International Islamic Trade Finance Corp., enabling it to strengthen crude oil imports from suppliers like Saudi Aramco.
The funding bolstered the South Asian nation’s energy security and alleviated pressure on its dollar reserves, underscoring Aramco’s pivotal role in Bangladesh’s energy landscape.
Bangladesh’s government, led by Nobel laureate Muhammad Yunus, has emphasized strengthening ties with Saudi Arabia as a key priority. Following his first meeting with Al-Duhailan in August, Yunus underscored the Kingdom’s role as a vital partner in addressing Bangladesh’s economic challenges.
Saudi Arabia, BlackRock explore collaborative opportunities to advance Vision 2030 goals
RIYADH: A meeting between Saudi Arabia’s economy minister and the vice chairman of BlackRock focused on global economic developments, investment opportunities, and the Kingdom’s Vision 2030 diversification efforts.
During the talks in Riyadh on Jan. 5, Faisal Al-Ibrahim and Philipp Hildebrand discussed identifying potential collaborations to advance Saudi Arabia’s goals of reducing its dependence on oil revenues and fostering growth in key sectors such as renewable energy, technology, and tourism, according to a post on X.
In an interview with Arab News last year, BlackRock’s Managing Director, Head of Middle East Client Business, and CEO of Saudi Arabia, Yazeed Al-Mubarak, said that the global client base has shown a growing interest in gaining exposure to Middle Eastern assets.
In August, BlackRock deepened its engagement with the Kingdom by signing a memorandum of understanding with the Saudi Real Estate Refinance Co., a subsidiary of the Public Investment Fund.
The agreement, signed during an official visit to the US by Saudi Minister of Municipalities and Housing Majid Al-Hogail, will develop the country’s real estate finance sector and increase the share of businesses in the industry’s capital markets.
