Oil rises on US crude draw and Iraqi supply risks

Oil prices rose on Thursday as a surprise drop in U.S. crude stockpiles and a halt to exports from Iraq's Kurdistan region offset a smaller than expected cut to Russian supplies. (Shutterstock/File)
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Updated 30 March 2023
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Oil rises on US crude draw and Iraqi supply risks

  • US crude oil stockpiles fell unexpectedly in the week to March 24 to a two-year low
  • Crude inventories dropped by 7.5 million barrels, compared with expectations for a rise of 100,000 barrels in a Reuters poll of analysts

LONDON: Oil prices rose on Thursday as a surprise drop in US crude stockpiles and a halt to exports from Iraq’s Kurdistan region offset a smaller than expected cut to Russian supplies.
Brent crude futures rose 57 cents, or 0.73 percent, to $78.85 a barrel by 1327 GMT, while West Texas Intermediate crude rose 82 cents, or 1.12 percent, to $73.79.
US crude oil stockpiles fell unexpectedly in the week to March 24 to a two-year low, the Energy Information Administration said on Wednesday.
Crude inventories dropped by 7.5 million barrels, compared with expectations for a rise of 100,000 barrels in a Reuters poll of analysts.
The continuing halt to exports from Iraq’s northern region provided further support.
Producers have shut in or reduced output at several oilfields in the semi-autonomous Kurdistan region of northern Iraq after the northern export pipeline was shut, with more outages on the horizon, company statements showed.
But the Kurdistan-Iraq premium in oil prices could vanish sooner than expected, Citi analysts said Thursday.
The “changes in Iraq’s domestic politics may lead to a durable political settlement very soon,” Citi said, estimating that pipeline flows could increase by 200,000 barrels per day (bpd).
These factors offset bearish sentiment after a lower than expected cut to Russian crude oil production in the first three weeks of March.
The 300,000 bpd production decline compared with targeted cuts of 500,000 bpd, or about 5 percent of Russian output, sources familiar with the data told Reuters.
Markets are now waiting for US spending and inflation data due on Friday and the resulting impact on the value of the US dollar.
Meanwhile, OPEC+ is likely to stick to its existing deal on reduced oil output at a meeting on Monday, five delegates from the producer group told Reuters.
“While we think oil prices may remain volatile in the near term, we still expect rising Chinese crude imports and lower Russian production to lift prices over the coming quarters,” UBS said on Thursday.
China’s refined fuel consumption this year is likely to grow 3 percent from 2019 pre-COVID levels, state energy giant PetroChina said on Thursday.
“If all goes as expected, and we manage to avoid a recession, oil prices will dance around $75-$85/bbl in the coming months,” FGE analysts said in a note.


China rolls over $3.4 billion of commercial loans to Pakistan

Updated 8 sec ago
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China rolls over $3.4 billion of commercial loans to Pakistan

  • The IMF required Pakistan’s foreign exchange reserves to be over $14 billion at the end of the current fiscal year on June 30
  • Foreign loans, especially the Chinese ones, are critical to shoring up cash-strapped Pakistan’s low foreign exchange reserves

KARACHI: China has rolled over $3.4 billion in loans to Islamabad, which together with other recent commercial and multilateral lending will boost Pakistan’s foreign exchange reserves to $14 billion, a finance ministry source said on Sunday.

Beijing rolled over $2.1 billion, which has been in Pakistan’s central bank’s reserves for the last three years, and refinanced another $1.3 billion commercial loan, which Islamabad had paid back two months ago, the source said.

Another $1 billion from Middle Eastern commercial banks and $500 million from multilateral financing have also been received, he said.

“This brings our reserves in line with the IMF target,” he said.

The loans, especially the Chinese ones, are critical to shoring up Pakistan’s low foreign reserves, which the IMF required to be over $14 billion at the end of the current fiscal year on June 30.

Pakistani authorities say that the country’s economy has stabilized through ongoing reforms under a $7 billion IMF bailout.


Egypt to offer Hurghada airport to private sector by end of 2025

Updated 14 min 11 sec ago
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Egypt to offer Hurghada airport to private sector by end of 2025

RIYADH: Egypt plans to offer Hurghada International Airport to the private sector by the end of 2025 as part of a broader strategy to modernize its aviation sector and attract foreign investment, President Abdel Fattah El-Sisi said.  

The announcement came during a meeting in Al-Alamein City with Minister of Civil Aviation Sameh El-Hefny and EgyptAir In-Flight Services Chairperson Soheir Abdullah, where El-Sisi reviewed the national roadmap for enhancing civil aviation infrastructure and operations. 

The move forms part of a national strategy designed in partnership with the International Finance Corp., which is advising on a new public-private participation model for the country’s airports. The framework is expected to be finalized by summer 2025 and will target 11 major airports while maintaining public ownership. 

In an official post, Ambassador Mohamed El-Shenawy, spokesman for the presidency, said the meeting reviewed the comprehensive strategic vision for the advancement of the entire civil aviation sector, including air navigation, aircraft fleet development, airport upgrades, and enhancement of human resource capabilities. 

“These efforts are part of the state’s broader plan to improve the efficiency of the aviation sector, increase its capacity, and enhance the quality of services provided to travelers, in support of the national goal to raise the number of tourists to 30 million,” the post added. 

El-Sisi issued directives to proceed with developing Egyptian airports through international partnerships centered on efficiency and sustainability, while ensuring an attractive investment environment that guarantees economic feasibility and long-term growth. 

The plan supports Egypt Vision 2030, the country’s national development blueprint, which includes transforming airports into regional aviation hubs equipped with the latest global systems.  

El-Sisi also reviewed the “New Republic Air Gateway” project at Terminal 4 of Cairo International Airport. Once completed, the new terminal will increase the airport’s capacity by at least 30 million passengers, pushing total throughput beyond 60 million annually.

The project is designed in line with international standards for safety, security, and environmental sustainability. 

The meeting also touched on Egypt’s achievements in air navigation, especially during recent regional airspace closures that increased daily traffic to over 1,600 flights. 

According to the presidential spokesman, organizations including Eurocontrol, the International Civil Aviation Organization, and the International Air Transport Association praised Egypt’s air traffic controllers for maintaining operational stability and service continuity. 

Additionally, the meeting highlighted EgyptAir’s recent successes. The national carrier was named “Best Airline Staff in Africa” for 2025 by Skytrax at the Paris Air Show. 

Other accolades included Best Economy Class Meals, Most Improved Airline in Africa for a second consecutive year, and Best Cabin Crew in Africa. 

The airline advanced 20 positions in the global ranking to 68th place out of more than 325 carriers. 

The minister said EgyptAir plans to expand its fleet to 97 aircraft by 2028-29. Efforts are also underway to upgrade in-flight services, infrastructure, and ground operations, as well as enhance lounge amenities and punctuality. 

These initiatives are aimed at strengthening the airline’s global competitiveness and overall passenger experience. 


Oman’s GDP grows 4.7% as non-oil sectors expand

Updated 29 June 2025
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Oman’s GDP grows 4.7% as non-oil sectors expand

  • Agriculture, services, and construction exports lead economic growth

RIYADH: Oman’s gross domestic product at current prices grew by 4.7 percent year on year in the first quarter of 2025, reaching 10.53 billion Omani rials ($27.3 billion), compared with 10.06 billion rials during the same period in 2024.

Preliminary data released by Oman’s National Centre for Statistics and Information attributed the increase primarily to stronger performance in non-oil activities, which grew 4.1 percent to 7.13 billion rials compared to 6.85 billion rials a year earlier.

Across economic sectors, agriculture and fisheries posted the highest growth rate, expanding 11.1 percent to 326.6 million rials. 

Industrial activities rose 2.8 percent to 1.97 billion rials, while services activities grew 4.2 percent with a total contribution of 4.84 billion rials to GDP.

Oil activities also contributed to the overall expansion, recording a 6.8 percent increase in value-added, reaching 3.71 billion rials by the end of the first quarter of 2025, up from 3.47 billion rials in the same period of 2024.

While crude oil activities declined 7.5 percent to 2.74 billion rials, natural gas activities saw a marked increase of 89 percent, with value-added rising to 970.8 million rials.

This performance comes as Oman continues to strengthen non-oil sectors and diversify its economy. 

Earlier in June, Credit Oman reported that insured non-oil exports reached 61.2 million rials in the first quarter, a 6 percent increase from the same period last year, driven by higher shipments of construction materials, petrochemicals, mining products, and agricultural goods.

Overall, the sultanate’s broader non-oil exports rose 8.6 percent to 1.61 billion rials, accounting for 28.6 percent of total exports.

The government is also pursuing fiscal reforms to support long-term growth. Under a royal decree, Oman will become the first Gulf country to introduce personal income tax, imposing a 5 percent levy on taxable income exceeding 42,000 rials per year starting in 2028. 

The measure is expected to apply to about 1 percent of the population.

Earlier in June, the country’s residential property market was reported to have shown renewed strength. 

Official data from Oman’s National Centre for Statistics and Information indicated that residential property prices rose 7.3 percent year over year in the first quarter, led by a 6.5 percent increase in residential land values, which form the largest component of the real estate index.

Apartment prices rose 17 percent in May, while villas gained 6.4 percent, and other residential units increased 2.2 percent. The overall residential real estate price index advanced 5.5 percent quarter over quarter.

The gains reflect a broader regional upswing in property activity during early 2025. 


Saudi FDI net inflows jump 44% in Q1 to $5.9bn

Updated 29 June 2025
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Saudi FDI net inflows jump 44% in Q1 to $5.9bn

RIYADH: Saudi Arabia attracted SR22.2 billion ($5.9 billion) in net foreign direct investment in the first quarter of 2025, up 44 percent year on year, driven by rising inflows and sharply lower capital outflows. 

According to figures released by the General Authority for Statistics, this compares to SR15.5 billion during the same period last year. The figure, however, marked a 7 percent drop from the final quarter of 2024, when inflows totaled SR24.0 billion. 

Gross inflows — the total foreign capital entering the Kingdom — stood at SR24 billion, up 24 percent from SR19.4 billion in the first quarter of 2024, but down 6 percent from the SR25.6 billion recorded in the preceding quarter.

Net FDI reflects the actual retained investment after subtracting outflows such as dividends, loan repayments, or capital exits — making it a more accurate indicator of lasting foreign capital in the economy. 

The FDI boost coincides with Saudi Arabia’s growing appeal among global investors. In April, the Kingdom climbed to a record 13th place in Kearney’s 2025 Foreign Direct Investment Confidence Index while maintaining its rank as the third most attractive emerging market, underscoring strong investor confidence. 

In its latest release, GASTAT stated: “The volume of outflows amounted to about SAR 1.8 billion during Q1 of 2025. It achieved a decrease of 54% compared to Q1 of 2024, where the volume of outflows reached SAR 3.9 billion.” 

The report noted that this represented a 7 percent increase from the fourth quarter of 2024, when outflows stood at SR1.7 billion. 

The narrowing gap between inbound and outbound foreign capital underscores the resilience of the Kingdom’s investment environment amid ongoing economic transformation efforts. 

It also reflects a growing trend of multinational companies establishing regional headquarters in the Kingdom. Under new localization rules linked to government contracts, several global firms have set up or expanded their presence in Riyadh. 

In March, Dell Technologies became one of the latest tech giants to open a regional office in the Saudi capital, joining companies such as PepsiCo, Schneider Electric, Morgan Stanley, PwC, and Deloitte — all of which have ramped up operations to tap into the Kingdom’s rapidly evolving market and $1.1 trillion giga-project pipeline. 

The Kingdom’s performance comes against a backdrop of global declines in foreign direct investment.  

According to the UN Conference on Trade and Development, inward FDI inflows in Saudi Arabia fell 31 percent in 2024 to $15.73 billion, while outflows rose 27.1 percent to $22.04 billion.  

The report attributed the downturn to persistent trade tensions, geopolitical uncertainty, and weakening investor sentiment worldwide.  

Earlier this month, S&P Global said it expects FDI into Gulf Cooperation Council countries to slow further in 2025, citing lower oil prices and a more gradual rollout of economic diversification plans across the region. 


Saudi unemployment rate hits historic low of 2.8% in Q1: GASTAT

Updated 29 June 2025
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Saudi unemployment rate hits historic low of 2.8% in Q1: GASTAT

RIYADH: Saudi Arabia’s overall unemployment rate fell to a record low of 2.8 percent in the first quarter of 2025, down 0.7 percentage points from the previous quarter, official data showed.

According to figures released by the General Authority for Statistics, the jobless rate also declined by 0.7 points year on year. The labor force participation rate for both Saudis and non-Saudis increased to 68.2 percent, marking a rise of 1.8 points from the previous quarter and 2.2 points from the same period last year. 

The Kingdom’s strengthening labor market aligns with Vision 2030, the nation’s strategic roadmap focused on creating job opportunities for citizens and driving economic growth. Curbing joblessness remains a core pillar of the broader socio-economic reform agenda. 

In its latest release, GASTAT stated: “The employment-to-population ratio for Saudis increased by 0.5 percentage points compared to the fourth quarter of 2024, reaching 48.0 percent, and increased by 0.5 percentage points compared to the first quarter of 2024.” 

Among Saudi nationals, the jobless rate fell to 6.3 percent in the first quarter — a 0.7-point drop from the earlier quarter and 1.3 points lower year on year. Participation in the workforce among Saudis edged up to 51.3 percent, a quarterly improvement of 0.2 points. 

To support job seekers and streamline employment efforts, the Kingdom continues to promote digital platforms such as Jadarat, a unified national system for connecting Saudis to job opportunities. 

The share of Saudi women engaged in the labor force rose to 36.3 percent in the first quarter, up 0.3 percentage points from the preceding quarter.

“Additionally, the employment to population ratio of Saudi females increased by 0.7 percentage points, reaching 32.5 percent. At the same time, the unemployment rate of Saudi females decreased by 1.4 percentage points, recording 10.5 percent, compared to the previous quarter of 2024,” GASTAT added.

Among Saudi men, participation in economic activity increased slightly to 66.4 percent, while their unemployment rate declined by 0.3 percentage points to 4.0 percent. 

GASTAT’s report also revealed that 94.8 percent of unemployed Saudis are open to working in the private sector. Of these, 76.1 percent of women and 86.3 percent of men expressed willingness to work at least eight hours a day. 

Additionally, 58.7 percent of Saudi women seeking employment and 40.4 percent of their male counterparts expressed willingness to commute for one hour or more to reach their workplace. 

Alongside the survey findings, GASTAT also published register-based labor market statistics for the same timeframe. 

The number of Saudis registered with the General Organization for Social Insurance and the Civil Service rose to 2.92 million in the first quarter of 2025, up from 2.89 million in the previous quarter. Of these, 2.42 million were employed in the private sector and 492,620 in the public sector. 

Meanwhile, the total number of registered workers in the Kingdom — including Saudis and non-Saudis — increased to 12.8 million, compared to 12.4 million in the fourth quarter of 2024.