Saudi consumer loans register highest record at SR358bn in Q3

Updated 03 February 2015

Saudi consumer loans register highest record at SR358bn in Q3

The volume of consumer loans given by Saudi local banks hit the highest record when it rose by 7 percent to SR358.2 billion in Q3, 2014 compared to SR334.9 billion in the same period in 2013, according to a financial report.
The consumer loans jumped by 32 times in a 17-year period where they stood at SR11.2 billion in 1998, or more than 3,100 percent, the report filed and analyzed by Al-Eqitisadiah daily, said.
In addition to credit card loans, consumer loans are composed of three major sections: They are meant to purchase cars and equipment, property and other consumer items, the report said.
Loans given to purchase car and equipment captured 20 percent of the total consumer loans by the end of Q3, 2014, at SR 70.2 billion whereas property loans captured 10 percent at SR37.5 billion. Meanwhile, loans to purchase other consumer items had the lion’s share of the loans, or 67 percent, to reach SR240.7 billion, the report said.
On the other hand, loans for credit cards accounted for 3 percent of the total consumer loans by the end of Q3, 2014, or SR9.8 billion, the report said.
In the last 17 years, consumer loans grew steadily where they rose from SR11.2 billion in 1998 to hit SR188 billion by the end of 2006 but, however, dropped slightly to SR187.7 billion and SR183.4 billion in 2007 and 2008, respectively, the report said.
Since 2009, the consumer loans have registered continued growth to stand at SR188.5 billion by the end of 2009 and rose to SR207.2 billion and SR250 billion in 2010 and 2011, respectively.
Likewise, consumer loans grew to SR281.5 billion in 2012 and SR340.5 billion in 2013 and to a record of SR358.2 billion by the end of Q3, 2014, the report said.


OPEC sees small 2020 oil deficit even before latest supply cut

Updated 12 December 2019

OPEC sees small 2020 oil deficit even before latest supply cut

  • OPEC keeps its 2020 economic and oil demand growth forecasts steady and is more upbeat about the outlook

LONDON: OPEC on Wednesday pointed to a small deficit in the oil market next year due to restraint by Saudi Arabia even before the latest supply pact with other producers takes effect, suggesting a tighter market than previously thought.

In a monthly report, OPEC said demand for its crude will average 29.58 million barrels per day (bpd) next year. OPEC pumped less oil in November than the average 2020 requirement, having in previous months supplied more.

The report retreats further from OPEC’s initial projection of a 2020 supply glut as output from rival producers such as US shale has grown more slowly than expected. This will give a tailwind to efforts by OPEC and partners led by Russia to support the market next year.

OPEC kept its 2020 economic and oil demand growth forecasts steady and was more upbeat about the outlook.

“On the positive side, the global trade slowdown has likely bottomed out, and now the negative trend in industrial production seen in 2019 is expected to reverse in 2020,” the report said.

Oil prices were steady after the report’s release, trading near $64 a barrel, below the level some OPEC officials have said
they favor.

The Organization of the Petroleum Exporting Countries, Russia and other producers, a group known as OPEC+, have since Jan. 1 implemented a deal to cut output by 1.2 million bpd to support the market. At meetings last week, OPEC+ agreed to a further cut of 500,000 bpd from Jan. 1 2020.

The report showed OPEC production falling even before the new deal takes effect.

In November, OPEC output fell by 193,000 bpd to 29.55 million bpd, according to figures the group collects from secondary sources, as Saudi Arabia cut supply.

Saudi Arabia told OPEC it made an even bigger cut in supply of over 400,000 bpd last month. The Kingdom had boosted production in October after attacks on its oil facilities in September briefly more than halved output.

The November production rate suggests there would be a 2020 deficit of 30,000 bpd if OPEC kept pumping the same amount and other factors remained equal, less than the 70,000 bpd surplus implied in November’s report and an excess of over 500,000 bpd seen in July. OPEC and its partners have been limiting supply since 2017, helping to revive prices by clearing a glut that built up in 2014 to 2016. But higher prices have also boosted US shale and other rival supplies.

In the report, OPEC said non-OPEC supply will grow by 2.17 million bpd in 2020, unchanged from the previous forecast but 270,000 less than initially thought in July as shale has not grown as quickly as first thought.

“In 2020, non-OPEC supply is expected to see a continued slowdown in growth on the back of decreased investment and lower drilling activities in US tight oil,” OPEC said, using another term for shale.