Crown prince upbeat on growing investments

Updated 08 January 2013
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Crown prince upbeat on growing investments

Crown Prince Salman, deputy premier and minister of defense, yesterday held talks with Commerce and Industry Minister Tawfiq Al-Rabiah and business leaders and underscored the growing foreign investments and trade activities in the Kingdom.
Prince Salman attributed the diversified investments and increasing trade activities to the country’s security and stability and to the wise policies adopted by the government.
The crown prince wished every success for the Council of Saudi Chambers’ programs aimed at strengthening the national economy and accelerating the Kingdom’s development.
Earlier, CSC President Abdullah Al-Mubti briefed the crown prince on the Kingdom’s attractive investment climate and the council’s services for boosting economic development with the support of chambers across the country.
“We also try to strengthen Saudi Arabia’s economic and trade relations with other countries and establish partnership with them,” Al-Mubti told the Saudi Press Agency.
According to the Central Department of Statistics and information, the Kingdom’s gross domestic product is estimated to reach SR 2.72 trillion ($ 727.3 billion) in current prices in 2012, reflecting a growth of 8.6 percent compared to 2011. The private sector is estimated to grow by 11.5 percent in current prices in 2012.
“In real terms, the GDP for 2012 is estimated to grow by 6.8 percent, with the oil sector growing by 5.5 percent and nonoil sector by 7.2 percent,” the Finance Ministry said in a recent statement. In real terms, the public sector is estimated to grow by 6.2 percent and the private sector by 7.5 percent.
Total revenues are projected to be SR 1.23 trillion ($ 330.5 billion) in 2012 and expenditure to be SR 853 ($227.5) billion.
According to Saudi Arabia Monetary Agency's (SAMA) preliminary data, total exports of goods are estimated to be worth SR 1.49 trillion ($ 396 billion) in 2012, representing an increase of 9.0 percent over 2011.
Nonoil exports are estimated at SR 183 billion ($ 48.8 billion), reflecting an increase of about 4.0 percent and representing 12 percent of total goods exported. The trade balance is estimated to record a surplus of SR 1 trillion ($ 268 billion) in 2012, an increase of 10 percent compared to 2011.
The talks were attended by Prince Muhammad bin Salman, special adviser to the crown prince, and Gen. Abdul Rahman Al-Binayan, director general of the crown prince’s office.


Brent crude oil rises for a sixth day as supplies tighten amid strong demand

Updated 24 April 2018
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Brent crude oil rises for a sixth day as supplies tighten amid strong demand

  • US West Texas Intermediate crude futures were at $68.98 a barrel, up 34 cents
  • The potential of renewed US sanctions against Iran is pushing prices higher

SINGAPORE: Brent crude oil rose for sixth day on Tuesday, passing $75 a barrel, on expectations that supplies will tighten because fuel is rising at the same time the US may impose sanctions against Iran and OPEC-led output cuts remain in place.
Brent crude oil futures climbed to as high as $75.20 a barrel in early trading on Tuesday, the highest since Nov. 27, 2014. Brent was still at $75 a barrel at 0311 GMT up 29 cents, or 0.4 percent, from its last close.
Brent’s six-day rising streak is the most since a similar string of gains in December and it is up by more than 20 percent from its 2018 low in February.
US West Texas Intermediate (WTI) crude futures were at $68.98 a barrel, up 34 cents, or 0.5 percent from their last settlement. On Thursday, WTI rose to as high as $69.56, the most since Nov. 28, 2014.
Markets have been lifted by supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) which were introduced in 2017 with the aim of propping up the market.
The potential of renewed US sanctions against Iran is also pushing prices higher.
Stephen Innes, head of trading for Asia/Pacific at futures brokerage OANDA said new sanctions against Tehran “could push oil prices up as much as $5 per barrel.”
The US has until May 12 to decide whether it will leave the Iran nuclear deal and re-impose sanctions against OPEC’s third-largest producer, which would further tighten global supplies.
“Crude prices are now sitting at the highest levels in three years, reflecting ongoing concerns around geopolitical tensions in the Middle East, which is the source of nearly half of the world’s oil supply,” ANZ bank said.
“Oil strength is coming from Saudi Arabia’s recent commitment to get oil back up to between $70 to $80 per barrel as well as inventory levels that are back in the normal range,” said William O’Loughlin, investment analyst at Australia’s Rivkin Securities.
OPEC’s supply curtailments and the threat of new sanctions are occurring just as demand in Asia, the world’s biggest oil consuming region, has risen to a record as new and expanded refineries start up from China to Vietnam.
One of the few factors that has limited oil prices from surging even more is US production, which has shot up by more than a quarter since mid-2016 to over 10.54 million barrels per day (bpd), taking it past Saudi Arabia’s output of around 10 million bpd.
As a result of its rising output, US crude is increasingly appearing on global markets, from Europe to Asia, undermining OPEC’s efforts to tighten the market.