Global oil demand will exceed 100m bpd, BP says

Global oil demand will exceed 100m bpd, BP says
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Updated 02 November 2021

Global oil demand will exceed 100m bpd, BP says

Global oil demand will exceed 100m bpd, BP says

LONDON: Global oil demand has bounced back above 100 million barrels per day (bpd), the same levels before the Covid-19 pandemic, Bloomberg reported, citing BP.

“OPEC+ is doing a good job managing the balance, so we remain constructive on oil prices, ” BP CFO Murray Auchincloss said on Tuesday. 

On the other side, OPEC+ is under pressure from consumers to increase production ahead of the meeting scheduled for November 4, but is expected to stick to its plan for a gradual monthly production increase of 400,000bpd.

Among recent forecasts, Bank of America said Brent crude will rally to $120 per barrel by the end of June 2022.


Oil Updates — Crude up; Sri Lanka to pay $72.6m to buy Russian oil; US renews Chevron’s Venezuela license

Oil Updates — Crude up; Sri Lanka to pay $72.6m to buy Russian oil; US renews Chevron’s Venezuela license
Updated 13 sec ago

Oil Updates — Crude up; Sri Lanka to pay $72.6m to buy Russian oil; US renews Chevron’s Venezuela license

Oil Updates — Crude up; Sri Lanka to pay $72.6m to buy Russian oil; US renews Chevron’s Venezuela license

RIYADH: Oil prices rose on Friday, closing out the week with gains ahead of the US Memorial Day holiday weekend, the start of peak US demand season, and as European nations negotiate over whether to impose an outright ban on Russian crude oil.

Brent crude rose $2.03, or 1.7 percent, to settle at $119.43. US West Texas Intermediate crude rose 98 cents, or 0.9 percent, to settle at $115.07 a barrel. 

For the week, Brent rose 6 percent while US WTI gained 1.5 percent.

Sri Lanka to pay $72.6 million for 90,000 tons of Russian oil

Sri Lanka will pay $72.6 million to buy a 90,000-ton shipment of Russian oil docked at Colombo’s port for weeks, its energy minister said on Saturday, as the island nation works to restart its only refinery and address a crippling energy crisis.

“I have reached out to multiple countries, including Russia, for support to import crude and other petroleum products,” Power and Energy Minister Kanchana Wijesekera told reporters.

The 90,000-ton consignment was ordered through Dubai-based Coral Energy, Wijesekera said, adding that the payment would facilitate restarting the country’s sole refinery, which has been closed since March 25.

“The next shipment will also be ordered from the same company. Another consignment will be needed within the next two weeks to keep the refinery running continuously,” Wijesekera said.

Sri Lanka has struggled to pay for fuel, food and medicine imports due to a severe shortage of foreign currency. An unprecedented financial crisis has also forced the country to default on some external debt.

Like the rest of Asia, Sri Lanka wants to shift to long-term crude tenders to hedge against high crude spot prices, but dwindling foreign exchange reserves have hampered its ambitions, the power minister said on Saturday.

US renews Chevron’s Venezuela license under existing terms

The US Treasury Department on Friday renewed a license to oil producer Chevron Corp. for operating in US-sanctioned Venezuela through November under the same terms that authorizations granted to the company since 2020.

The license also authorizes oilfield service companies Halliburton, Schlumberger, Baker Hughes and Weatherford International to maintain assets in Venezuela.

(With input from Reuters) 


Here’s what you need to know ahead of the trading day on Tadawul

Here’s what you need to know ahead of the trading day on Tadawul
Updated 14 min 51 sec ago

Here’s what you need to know ahead of the trading day on Tadawul

Here’s what you need to know ahead of the trading day on Tadawul

RIYADH: Saudi Arabia’s main index partially reversed gains to close lower in the previous trading session as concerns over an economic slowdown rattled investors.

At Thursday’s closing bell, TASI fell 0.5 percent to 12,530, while the parallel market Nomu added 1.14 percent to 22,272.

Stock exchanges of Qatar, Egypt, and Oman edged lower, while those of Bahrain and Kuwait gained 0.3 and 0.5 percent, respectively.

Dubai’s DFMGI was flat on Friday, after adding 1.2 percent in the prior session, whereas the Abu Dhabi index rebounded with a gain of 1.5 percent.

Oil prices rose on Friday, with Brent crude exiting the week at $119.43 and US West Texas Intermediate settling at $115.07.

Stock News

Zain KSA received approval from the Communications and Information Technology Commission’s board for Zain Business Ltd to acquire 8,069 of its telecom tower sites

Al Moammar Information Systems Co. signed a contract valued at nearly SR80 million ($21.3 million) for the maintenance of medical devices and equipment at a hospital in Makkah

Middle East Healthcare Co., also known as Saudi German Health, will invest SR70 million in Jeddah’s Sobhi Abdel Jalil Batterjee Medical Hospital

Saudi Automotive Services Co. sealed a deal to sell and leaseback ten owned sites valued at SR400 million to Al-Jazira Capital

East Pipes Integrated Co. for Industry swung into losses of SR3.25 million last year, from SR148 million in profit a year earlier

Calendar

May 30, 2022

Close of Anaam International Holding Group’s rights trading

May 31, 2022

End of Retal Urban Development Co.’s IPO book-building

June 2, 2022

Close of Anaam International Holding Group’s new shares subscription 


India's L&T ahead for NEOM $6.4-bn hydrogen renewables facilities: MEED

India's L&T ahead for NEOM $6.4-bn hydrogen renewables facilities: MEED
Updated 17 min 45 sec ago

India's L&T ahead for NEOM $6.4-bn hydrogen renewables facilities: MEED

India's L&T ahead for NEOM $6.4-bn hydrogen renewables facilities: MEED

RIYADH: Saudi Arabia's NEOM Green Hydrogen Co. is understood to have selected India's Larsen & Toubro to build solar and wind plants for supplying electricity to the city’s $6.4-billion green hydrogen-based ammonia plant, MEED reported.

ACWA Power, one of the three equity partners in NGHC along with Air Products and NEOM Co., is responsible for supplying the energy to the project. The Riyadh-based firm declined to comment on the news when contacted by Arab News.

According to MEED, L&T, along with Energy China and Power China, submitted a proposal for an engineering, procurement and construction contract to build the renewable energy infrastructure.

The contract covers the construction of 2,930 MW solar power generation plant, a 1,370 MW wind power farm and a 400 MW battery energy storage system, according to a source familiar with the plan.

The package also includes a 190-kilometer power transmission network. 

The planned wind and solar power plants are to be located in northwest Saudi Arabia in proximity to the hydrogen plant, which is to be built at OXAGON industrial zone in NEOM.


Saudi prequalifies 17 firms to bid for its first independent water storage project: MEED

Saudi prequalifies 17 firms to bid for its first independent water storage project: MEED
Updated 45 min 16 sec ago

Saudi prequalifies 17 firms to bid for its first independent water storage project: MEED

Saudi prequalifies 17 firms to bid for its first independent water storage project: MEED

RIYADH: Saudi Arabia has prequalified 17 companies from 34 firms that expressed interest to bid for the contract to develop the Kingdom's first independent strategic water reservoir project, ISWR, in Makkah, MEED reported.

The project owner Saudi Water Partnership Co. is expected to issue the request for proposals to these 17 qualified companies by mid-year, the report stated.

SWPC had received interest for the Juranah ISWR contract from 34 companies in September last year, while the prequalification documents were submitted in February. 

The Juranah ISWR project, previously referred to as Makkah 1, will have a capacity of 2.5 million cubic meters, and it will be implemented using a build, own, operate and transfer model, according to MEED.

The project which will also include a water reservoir and associated infrastructure and facilities is being executed as part of the strategy to support the Kingdom's goal to increase municipal water storage capacity to an average of three days in 2022 and seven days by 2030.

The government also aims to increase water storage capacity to an equivalent of 20 days of Hajj demand in Makkah and 40 days of Hajj demand in Al Madina by the end of the year, MEED reported.

The companies which are qualified to bid for the project include Abdul Aziz al-Ajlan Sons Co., Metscco Heavy Steel Industries, Al-Yamama Co., Alfanar Co., Almutlaq Industrial Investment Co., Al Rajhi Holding Group, China Gezhouba Group Overseas Investment Co. and China Harbour Engineering Co. 

Other firms that are in the race include Mowah Co., Alkhorayef Water & Power Technologies, Power and Water Utility Company for Jubail and Yanbu knowns as Marafiq, Marubeni Corporation, Metito Utilities, Mutlaq Al-Ghowairi Co., Nesma Co., Gulf Investment Corporation and Vision International Investment Co.


 


With 500,000 jobs and 50 new companies, PIF finds Saudi Arabia a place in the sun

With 500,000 jobs and 50 new companies, PIF finds Saudi Arabia a place in the sun
Updated 29 May 2022

With 500,000 jobs and 50 new companies, PIF finds Saudi Arabia a place in the sun

With 500,000 jobs and 50 new companies, PIF finds Saudi Arabia a place in the sun
  • The progress made by the Kingdom in non-oil sectors indicates that KSA is moving ahead in the right direction

RIYADH: When Saudi Arabia announced its Vision 2030 in 2016, aimed at accelerating the growth of the non-oil sector, skeptics doubted how a nation that has been relying heavily on oil-based revenue for so many decades would execute it with perfection.

Six years later, the progress made by the country in non-oil sectors indicates that Kingdom is moving ahead in the right direction, primarily driven by the efforts of its Public Investment Fund, which always maximizes its assets for the Saudi economy.

As a part of PIF’s 2021-2025 strategy, it is spearheading new economic and business opportunities in the Kingdom and is redesigning the face of Saudi Arabia globally.

Fueling employment

PIF is currently one of the world’s largest and most influential sovereign wealth funds, with total assets under management at around $620 billion.

Since 2016, the PIF has founded 50 companies, including the recently launched Saudi Coffee Co., and altogether these firms have generated over 500,000 direct and indirect jobs.

FASTFACT

From real estate and infrastructure to recycling and clean energy, PIF has marked its presence in 13 strategic sectors and aims to create more job opportunities in the coming years.

From real estate and infrastructure to recycling and clean energy, PIF has marked its presence in 13 strategic sectors and aims to create more job opportunities in the coming years.

PIF formed these companies to directly benefit the private sector and Saudi citizens as they generate wealth and new job opportunities. Some notable examples include the PIF-owned giga-projects, namely NEOM, The Red Sea Development Co., Qiddiya and ROSHN.

PIF has also created entities like the National Security Services Co., Saudi Arabian Military Industries and the Soudah Development Co.

Accelerating growth

Moreover, several companies owned by PIF have signed contracts with private sector businesses, helping accelerate growth in the broader economy.

Citing an example, the Red Sea Development Co. has signed over 800 local and international contracts worth more than $5.3 billion as of April 2022.

ROSHN, PIF’s real estate company, has signed a contract with Arabia-based Retal help develop its Sedra community project in Riyadh.

Qiddiya Investment Company, last December, had awarded a Saudi-French joint venture a $1 billion contract to build the Six Flags Qiddiya entertainment attraction.

“The fund invested in several sectors, more than any other regular investment fund, and we should see the fruits of these investments this year and in 2030,” Mohammed Al-Suwayed, CEO of Razeen Capital, a financial securities consultancy firm, told Arab News.

The fund invested in several sectors, more than any other regular investment fund, and we should see the fruits of these investments this year and in 2030

Mohammed Al-Suwayed, CEO of Razeen Capital

An oasis of opportunities

Meanwhile, PIF has also created a new department specifically tasked with ensuring national growth and maximizing investment returns. The Fund aims to expand opportunities for Saudi companies, improve the domestic supply chain and increase its local content contribution to 60 percent by 2025.

PIF is working together with Shareek Program, spearheaded by Saudi Arabia’s Crown Prince Mohammed bin Salman, to create private-public partnerships.

PIF also eyes to boost the private sector’s contribution to the national gross domestic product to 65 percent and unlock national invest- ments worth $1.33 trillion by the end of this decade.

PIF will develop 70 percent of the Kingdom’s renewable energy, in line with Vision 2030

PIF Governor Yasir Al-Rumayyan

Green-lighting sustainability

Understanding the necessity to protect the environment, PIF is investing in many green projects to meet the ESG targets in Vision 2030.

PIF is planning to plant 10 million trees and launch a national renewable energy program to increase the share of renewable energy in the Kingdom.

“PIF will develop 70 percent of the Kingdom’s renewable energy, in line with Vision 2030,” said PIF Governor Yasir Al-Rumayyan.

He added that PIF’s recent investments in sustainable companies like ACWA Power and Lucid Motors show how the fund is working toward a sustainable future.

Al-Rumayyan also stressed the importance of PIF’s regional Voluntary Carbon Market in helping the Kingdom achieve its goal of net-zero carbon emissions by 2060.

The VCM is the first of its kind in the Middle East and North Africa region and will help companies reduce their carbon footprint by offsetting their carbon emissions.

The VCM is expected to launch in 2023, and five leading Saudi companies have already signed on as founding partners — Aramco, SAUDIA, ACWA Power, Ma’aden and ENOWA, a subsidiary of NEOM.

The PIF has also launched Sudair Solar PV, the first project under the Fund’s renewable energy program. This solar project, upon comple- tion, is expected to fulfill the energy needs of 185,000 house- holds in the Kingdom.

A force to reckon with

Since 1971, PIF’s glorious journey bears testimony to how a country’s sovereign fund can be utilized wisely and effectively to improve its economy and the living conditions of the general public.

With its massive investments, PIF has emerged as a critical player in the international economic sector and is also facilitating diversity and knowledge transfer within the Kingdom.

As PIF advances in elevating Saudi Arabia to new heights, several monumental initiatives that could revolutionize people’s living quality in the nation can be witnessed in the future.