WEEKLY ENERGY RECAP: Oil slides

WEEKLY ENERGY RECAP: Oil slides
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Updated 13 September 2020

WEEKLY ENERGY RECAP: Oil slides

WEEKLY ENERGY RECAP: Oil slides

Crude oil prices slid for a second consecutive week amid fears of a severe second wave of COVID-19 that clouded the short-term demand outlook.

The end of the US summer high driving season, lower refining margins, lower Chinese crude oil imports and a stronger dollar have added to the down price momentum.

Brent crude retreated to $39.83 per barrel and dipped below the $40 barrier for the first time since June. WTI crude fell to $37.33 per barrel. 

The spread between the two measures narrowed to $2.50 per barrel.

Brent has traded in a narrow band of $4 per barrel for three months, dropping more than $6 per barrel in only two weeks. Despite remaining within this tight range, unprecedented global demand destruction continues to weigh on market fundamentals.

Such bearish sentiment has cemented the market's "contango" structure where prices for immediate delivery remain far below future prices.

This has led to some market players looking at storing crude at sea again.

This trend towards increased onshore and offshore storage has led to concerns about a potential repeat of a “Black April” scenario, when the main US oil storage facility at Cushing in Oklahoma filled up and prices turned negative for the first time.


Tadawul slips 0.3%, Anaam Holding falls, SARCO soars

Updated 57 min 25 sec ago

Tadawul slips 0.3%, Anaam Holding falls, SARCO soars

Tadawul slips 0.3%, Anaam Holding falls, SARCO soars
  • Tadawul All Share Index falls to below 8,700 points, turnover at $3.14bn

Saudi equities extended their losses, with benchmark Tadawul All Share Index (TASI) slipping 0.3 percent, or 28 points, to close at 8,694 points on Wednesday.

Total turnover reached SAR 11.8 billion ($3.14 billion), with advance-decline ratio at 52:131.

The shares of Almarai Co., Saudi Telecom Co., Riyadh Bank, Banque Saudi Fransi, Yansab and Zain Saudi ended trading today with declines between 1 percent and 2 percent.

Anaam Holding was the top decliner as it went limit down to SAR 154.20. The Securities Depository Center Co. (Edaa) deposited today, Dec. 2, the subscribed securities of Anaam International Holding Group to the accounts of eligible securities' holders.

On the other hand, SARCO went limit up to SAR 105.6 amid trading volume of 6.3 million shares.

Al-Omran shares recorded their highest close since listing, rising 10 percent to SAR 108.8.

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