Oil bulls return to the market as omicron fears subside

Oil bulls return to the market as omicron fears subside
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Updated 04 January 2022

Oil bulls return to the market as omicron fears subside

Oil bulls return to the market as omicron fears subside
  • Portfolio investors have started to rebuild bullish positions in the oil market

LONDON: Portfolio investors have started to rebuild bullish positions in the oil market, reassessing earlier fears about the likely impact of omicron variant of coronavirus on major economies and passenger aviation in 2022.

Hedge funds and other money managers purchased the equivalent of 70 million barrels in the six most important petroleum futures and options contracts in the last two weeks of December. They had sold 327 million barrels over the previous ten-week period, according to records published by regulators and exchanges.

Last week's buying was the fastest since August, and among the most rapid rates for more than a year. It signaled a sharp turnaround from previously bearish investor sentiment. Purchases were split evenly, between new bullish long positions, and the closure of existing short positions.

The pattern of buying mainly concentrated on crude and middle distillates, consistent with a continued upswing in the macroeconomic cycle despite the rapid spread of omicron.

Portfolio managers seem to expect the continued recovery in oil consumption, including jet fuel. Coupled with limited production increases by OPEC, its allies, and US shale firms, they expect will keep prices trending higher in 2022. 

Pessimism on the impact of the global recovery and international quarantines that pressured oil prices in November and early December is no longer justified, the sentiment suggests.


Saudi Najran Cement’s profit slumped 61% owing to lower sales

Saudi Najran Cement’s profit slumped 61% owing to lower sales
Updated 14 sec ago

Saudi Najran Cement’s profit slumped 61% owing to lower sales

Saudi Najran Cement’s profit slumped 61% owing to lower sales

RIYADH: Saudi Arabia’s Najran Cement Co. posted a 61 percent decrease in profit for the first quarter of 2022, primarily due to lower sales.

The cement producer saw its profits fall to SR23 million ($6 million), down from SR60 million in the same period a year earlier, according to a bourse filing.

The decline in profit was caused by a decline in sales and an increase in production costs.

For the same period, sales and revenue totaled SR139 million, down 24 percent from the first quarter of last year.


Saudi Arabian Amiantit Co.’s losses widened by 344% despite higher sales

Saudi Arabian Amiantit Co.’s losses widened by 344% despite higher sales
Updated 6 min 52 sec ago

Saudi Arabian Amiantit Co.’s losses widened by 344% despite higher sales

Saudi Arabian Amiantit Co.’s losses widened by 344% despite higher sales

RIYADH: Dammam-based Saudi Arabian Amiantit Co. has widened losses by 344 percent in the first quarter of 2022 despite a slight increase in its revenues.

The company’s net losses widened to SR5.98 million ($1.5 million) during the first quarter of 2022, compared to SR1.34 million in the same period last year, according to a bourse filing.

Increased net losses happened despite a 4.3 percent increase in the company’s revenues. 

This rise in losses was a result of recorded accounting profits during the first quarter of 2021 against settlement discounts for some outstanding obligations with some banks that amounted to around SR20 million. 

Established in 1968, the company manufactures pipes. 


Saudi food delivery platform Jahez eyes full acquisition of The Chefz

Saudi food delivery platform Jahez eyes full acquisition of The Chefz
Updated 10 min 35 sec ago

Saudi food delivery platform Jahez eyes full acquisition of The Chefz

Saudi food delivery platform Jahez eyes full acquisition of The Chefz

RIYADH: Saudi food delivery platform Jahez said it has signed an initial deal to acquire The Chefz — one of its rivals in the Kingdom.

The firm, formally known as Jahez International Co. for Information Systems Technology, seeks a full acquisition of The Chefz, it said in a bourse filing.

Riyadh-based The Chefz is an app specialized in food delivery and caters to several citites across the Kingdom.

Valued at $2.94 billion as of May 19, Jahez joined Saudi exchange’s parallel market earlier this year as its first-ever listing of a local startup.


Saudi Alujain’s Q1 profit down as finance costs weigh on performance

Saudi Alujain’s Q1 profit down as finance costs weigh on performance
Updated 30 min 37 sec ago

Saudi Alujain’s Q1 profit down as finance costs weigh on performance

Saudi Alujain’s Q1 profit down as finance costs weigh on performance

RIYADH: Alujain Holding Corp. has recorded a profit decline of 7.5 percent as rising costs weighed on its performance during the first quarter of 2022.

The Saudi-listed investment firm, involved in Kingdom’s major petrochemical and mining projects, made SR55.8 million ($14.9 million) in profit, according to a bourse filing.

Alujain attributed the profit drop from SR60.3 million in the same period a year ago to an increase in finance costs.


Saudi Petro Rabigh gets shareholders’ nod to increase capital to $4.5bn

Saudi Petro Rabigh gets shareholders’ nod to increase capital to $4.5bn
Updated 41 min 47 sec ago

Saudi Petro Rabigh gets shareholders’ nod to increase capital to $4.5bn

Saudi Petro Rabigh gets shareholders’ nod to increase capital to $4.5bn

RIYADH: Rabigh Refining and Petrochemical Co., known as Petro Rabigh, has received shareholders’ approval for a 91-percent increase in capital through an offering of 795 million shares.

This will allow the company to increase its capital to SR17 billion ($4.5 billion) from SR9 billion, according to a bourse filing.

The prospectus for its capital increase will be issued through SR8 billion rights issue, after receiving the Capital Market Authority's approval, it added.