OPEC meeting ends without making any policy decisions

Update OPEC meeting ends without making any policy decisions
Sources are saying a big policy change is unlikely this month, according Reuters (Shutterstock)
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Updated 30 June 2022

OPEC meeting ends without making any policy decisions

OPEC meeting ends without making any policy decisions

No major decisions were reached at the end of a meeting of ministers from the Organization of the Petroleum Exporting Countries on Wednesday, according to Reuters.

The news agency reported unnamed delegates as saying that administrative issues were discussed during the first of two-days of meetings.

On Thursday, ministers from the joint ministerial monitoring committee of OPEC+ — which is OPEC and its allies including Russia, will begin discussions from 1100 GMT and then hold a full online OPEC+ meeting.

Sources are saying a big policy change is unlikely this month, according Reuters.

At its last gathering in early June, OPEC+ decided to raise output each month by 648,000 barrels per day (bpd) in July and August, compared with a previous plan to add 432,000 bpd over three months.

Washington welcomed the producers’ decision in June that followed months of pressure from the West on OPEC+ to raise production to help lower oil prices.

International prices hit their highest since the record levels of 2008 after the West imposed sanctions on Russia over its invasion of Ukraine begun on Feb. 24, which Moscow calls “a special military operation.”

They have eased since this year’s March peaks, but rose for a fourth day on Wednesday to approach $120 a barrel because of tight supply and concern OPEC has little ability to raise output.

French President Emmanuel Macron told US President Joe Biden this week he had been told that Saudi Arabia and the United Arab Emirates, considered the only OPEC members with significant spare capacity, can barely increase oil production.

Biden will travel to the Middle East, including Saudi Arabia next month, and is widely expected to press Riyadh to raise production.

At least five OPEC+ delegates said this week’s meeting will focus on confirming August output policies and would not discuss September.

Two other delegates said the issue of production after August could emerge but it was unclear what steps could be taken.

Oil prices

Oil prices gained for a fourth straight session on Wednesday with tight supply worries offset- ting concerns about a weaker global economy.

Brent crude futures for August were up 87 cents to $118.85 a barrel by 1132 GMT. The August contract will expire on Thursday and the more-active September contract was at $114.79, up 99 cents, or 0.87 percent.

US West Texas Intermediate crude futures were up $1.20, or 1.1 percent, to $112.96 a barrel.

Both contracts rose more than 2 percent on Tuesday as concerns over tight supplies due to Western sanctions on Russia outweighed fears that demand may slow in a potential future recession.

 

With input from Reuters


Allianz planning to sell stake in Saudi Arabia unit: Bloomberg

Allianz planning to sell stake in Saudi Arabia unit: Bloomberg
Updated 14 sec ago

Allianz planning to sell stake in Saudi Arabia unit: Bloomberg

Allianz planning to sell stake in Saudi Arabia unit: Bloomberg

RIYADH: German insurer Allianz is planning to sell its Saudi Arabia unit, as the firm eyes streamlining its portfolio and raising cash, Bloomberg reported quoting people familiar with the matter. 

According to the report, Allianz is currently working with an adviser to sell its controlling stake in Allianz Saudi Fransi Cooperative Insurance Co.

To date this year, shares of Allianz Saudi Fransi have dropped about 44 percent and the company’s market value currently stands at roughly $231 million. 

The people who wished to stay anonymous noted that some insurers have expressed preliminary interest in acquiring the business. 

They, however, made it clear that deliberations are still at their early stages, and Allianz may even decide to retain the asset. 

Allianz Saudi Fransi was established in 2007 and is a joint venture of Allianz Group and Banque Saudi Fransi. According to its annual report, Allianz holds 51 percent of the firm’s shares.

 


Qatar Airways to resume operations to Qassim, adds 4 flights to Riyadh

Qatar Airways to resume operations to Qassim, adds 4 flights to Riyadh
Updated 8 min 4 sec ago

Qatar Airways to resume operations to Qassim, adds 4 flights to Riyadh

Qatar Airways to resume operations to Qassim, adds 4 flights to Riyadh

RIYADH: Qatar Airways will resume its operations to Qassim, its fifth destination in Saudi Arabia, according to a statement. 

The flights will operate three days weekly starting Aug. 22 and will increase to four from Sept. 2.

The airline will also introduce four additional weekly flights to Riyadh starting Aug. 18, bringing the total flight to 20 per week to meet the growing demand.

Currently, Qatar Airways operates 93 weekly flights to four cities in Saudi Arabia, following the latest additions, the total number of weekly flights to the Kingdom will reach 101. 


Saudi-listed East Pipes seeks capital hike as it posts 190% profit jump

Saudi-listed East Pipes seeks capital hike as it posts 190% profit jump
Updated 42 min 29 sec ago

Saudi-listed East Pipes seeks capital hike as it posts 190% profit jump

Saudi-listed East Pipes seeks capital hike as it posts 190% profit jump

RIYADH: Saudi-listed East Pipes Integrated Co. for Industry’s board has proposed a capital raise of 50 percent, after reporting a higher second-quarter profit.

The pipe manufacturer is looking to increase its current capital of SR210 million ($56 million) to SR315 million through granting bonus shares, according to a bourse filing.

Shareholders will receive 0.5 shares for every one share held through the capitalization of SR105 million from retained earnings.

“The objective of the proposed bonus shares is to provide sustainable returns to shareholders, whilst supporting the company’s strategic investment plans,” the filing stated.

East Pipes had earlier reported a 190 percent year-on-year surge in profits to SR6.2 million for the second quarter of 2022, buoyed by a higher sales volume.


NRG Matters — Egypt eyes $10bn renewables plan; ADNOC Drilling awarded offshore rigs contracts

NRG Matters — Egypt eyes $10bn renewables plan; ADNOC Drilling awarded offshore rigs contracts
Updated 50 min 37 sec ago

NRG Matters — Egypt eyes $10bn renewables plan; ADNOC Drilling awarded offshore rigs contracts

NRG Matters — Egypt eyes $10bn renewables plan; ADNOC Drilling awarded offshore rigs contracts

RIYADH: Egypt is eying $10 billion of renewables to replace inefficient thermal fossil fuel power plants. 

In an effort to drive the country’s carbon emissions reduction goal, the precuts are expected to be delivered by the private sector, according to MEED.

US motors

A group representing General Motors, Toyota Motor, Volkswagen and other major automakers said a $430 billion bill approved by the US Senate will put achieving electric-vehicle adoption targets for 2030 in jeopardy.

The Alliance for Automotive Innovation had warned that most EV models would be ineligible for a $7,500 tax credit for US buyers under the bill, Reuters reported. 

Offshore rigs

ADNOC Drilling has been awarded two contracts totaling over 12.6 billion dirhams ($3.4 billion) to hire eight jack-up offshore rigs, Trade Arabia reported. 

Awarded by ADNOC Offshore, the contracts will support the expansion of the firm’s crude oil production capacity to 5 million barrels per day by 2030 and enable gas self-sufficiency for the UAE.


TASI ends higher on strong earnings reports: Closing bell

TASI ends higher on strong earnings reports: Closing bell
Updated 51 min 36 sec ago

TASI ends higher on strong earnings reports: Closing bell

TASI ends higher on strong earnings reports: Closing bell

RIYADH: Saudi Arabia’s benchmark index ended Monday higher after a wave of earnings reports boosted investor sentiment.

The Tadawul All Share Index added 0.66 percent reaching 12,297, while the parallel market, Nomu, climbed 1.36 percent at 22,072.

The Saudi British Bank climbed 1.44 percent, while the Kingdom’s oil giant Saudi Aramco added 0.13 percent.

The Saudi National Bank, the Kingdom’s biggest lender, ended the day 1.82 percent higher, while Alinma Bank rose 1.07 percent.

The Middle East Paper Co. gained 2.83 percent, following a 216 percent increase in first half profits.

The Wafrah for Industry and Development Co. rose 2.79 percent, following the signing of a $4 million contract with German GEA Food for meat production.

Bank Albilad rose 2.62 percent, following the announcement of the establishment of Enjaz Payment Services Co., a closed joint-stock company located in Riyadh.

Almarai Co. increased 0.56 percent, following the announcement of the re-appointment of Prince Naif bin Sultan bin Mohammed bin Saud Alkabeer as chairman and Suliman Al-Muhaideb as vice chairman.