Oil Updates — Crude prices fall amid build in US fuel product inventories; Ecuador’s Oriente crude exports suspended

Oil Updates — Crude prices fall amid build in US fuel product inventories; Ecuador’s Oriente crude exports suspended
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Updated 30 June 2022

Oil Updates — Crude prices fall amid build in US fuel product inventories; Ecuador’s Oriente crude exports suspended

Oil Updates — Crude prices fall amid build in US fuel product inventories; Ecuador’s Oriente crude exports suspended

RIYADH: Oil prices edged lower in volatile trading on Thursday as the market weighed concerns of global supply and a build in US fuel product inventories.

Brent crude futures for September, the more actively traded contract, were down 45 cents, or 0.4 percent, to $112.00 per barrel at 0711 GMT.

The August contract, which expires Thursday, was at $115.15, down $1.11 a barrel, or 1.0 percent.

US West Texas Intermediate crude futures fell 57 cents, or 0.5 percent, to $109.21.

Ecuador’s Oriente crude exports suspended

Exports of Ecuador’s flagship Oriente crude remain suspended under a force majeure declaration as the spread of anti-government protests hurts oil output, state-run Petroecuador said on Wednesday.

At least eight people have died and road blockades have led to food and medicine shortages. The crisis has halved oil output, the country’s main source of revenue, to some 234,500 barrels per day while forcing reductions in fuel prices, though protest leaders have called the price cuts insufficient.

On Wednesday, the government imposed a curfew and restricted transit in four provinces to restore public order, control violence, secure basic supplies and protect state property, while marking oilfields and facilities as secured zones.

The energy minister said output could be completely halted in a matter of days over acts of vandalism.

Petroecuador has not yet rescheduled the suspended Oriente cargoes, it said in a release. The firm issued a wide force majeure declaration over oil exploration, production, transport and exports on June 18, and enforced the cargo suspension on June 28.

“Once the force majeure is overcome, the company will timely notify companies about operations to coordinate the cargo rescheduling,” it said.

German oil refiner to halt diesel deliveries after lightning strike

German oil refiner Bayernoil plans to halt deliveries of diesel and heating oil to customers for several days from Thursday after a lightning strike, Bloomberg reported on Wednesday, citing two sources familiar with the matter.

Bayernoil is the largest oil refiner in Germany’s southern state of Bavaria and the incident adds to two other outages in the same region as Europe’s diesel market suffers from the loss of imports from Russia.


Saudi Aslak to acquire 30% stake in UAE A-1 Fence’s Dammam-based unit

Saudi Aslak to acquire 30% stake in UAE A-1 Fence’s Dammam-based unit
Updated 14 sec ago

Saudi Aslak to acquire 30% stake in UAE A-1 Fence’s Dammam-based unit

Saudi Aslak to acquire 30% stake in UAE A-1 Fence’s Dammam-based unit

RIYADH: Saudi cable manufacturer Aslak has signed a deal with UAE’s A-1 Fence DMCC C0. to acquire a stake in its wholly owned unit based in Dammam.  

Formally known as United Wire Factories Co., the firm revealed in a bourse filing that it will acquire a 30 percent stake of the capital of A-1 Fence Arabia Co. for Industry.

The share purchase agreement is subject to approval from the Kingdom’s General Authority for Competition and relevant regulatory authorities.

This potential deal comes as Aslak aims to diversify its sources of income and maximize profitability through a pool of investments.


Saudi cement producer Umm Al-Qura’s profit drops 55% as sales slump

Saudi cement producer Umm Al-Qura’s profit drops 55% as sales slump
Updated 19 min 51 sec ago

Saudi cement producer Umm Al-Qura’s profit drops 55% as sales slump

Saudi cement producer Umm Al-Qura’s profit drops 55% as sales slump

RIYADH: Saudi cement producer, Umm Al-Qura Cement Co. has posted a 55 percent decline in net profit during the first half of 2022 owing to lower cement sales.

Profits in the first half dropped from SR49 million in the same period last year to SR22 million ($5.9 million), according to a bourse filing.

The company attributed the decline in net profit to a decrease in sales value and an increase in selling, marketing, and administrative expenses.

Its revenue declined 19 percent to SR125 million during the current period from SR154 million during the previous period.


TASI ends in red as investor mood sours over oil price shifts: Closing bell

TASI ends in red as investor mood sours over oil price shifts: Closing bell
Updated 30 min 18 sec ago

TASI ends in red as investor mood sours over oil price shifts: Closing bell

TASI ends in red as investor mood sours over oil price shifts: Closing bell

RIYADH: Saudi Arabia’s benchmark index ended the week’s final session lower after investors’ mood turned negative as oil prices fluctuated during the week.

TASI finished 0.20 percent lower at 12,621, while the parallel Nomu market finished 0.19 percent higher at 21,574.

The Kingdom’s largest valued bank, Al Rajhi, ended the session with a 1.68 percent gain, while the Saudi National Bank, the country's largest lender, ended with a 1.10 percent decline.

Saudi Aramco lost 0.75 percent, despite achieving its highest quarterly profit since going public in 2019 with SR182 billion ($48.4 billion), a 90 percent jump over analysts' expectations.

Among the Kingdom's leading information technology firms, Elm climbed 6.08 percent to lead the gainers in the market, while Al Moammar shed 1.30 percent.

Abdullah Al Othaim Markets Co. slipped 4.25 percent, despite reporting a 31 percent increase in profits for the first half of the year to SR138 million.

Red Sea International Co. dropped 2.12 percent, after it secured financing from SABB worth SR35 million.

Taiba Investments Co. fell 0.82 percent, despite turning into a profit of SR55 million in the first half, wiping out losses of SR14.8 million from the same period last year.

Sadr Logistics Co. declined 0.95 percent, after it turned into losses of SR3 million during the first six months of 2022.

Saudi Arabian Mining Co., known as Ma’aden, ended the week’s session with a 1.11 percent gain.

 


Saudi insurer Allied Cooperative names new CEO

Saudi insurer Allied Cooperative names new CEO
Updated 30 min 29 sec ago

Saudi insurer Allied Cooperative names new CEO

Saudi insurer Allied Cooperative names new CEO

RIYADH: Allied Cooperative Insurance Group has announced the appointment of Mohammad Al-Gadhi as its CEO.

The appointment is subject to approval by the Saudi Central Bank, the insurer said in a bourse filing.

Al-Gadhi served as the company’s head of operations and technical affairs since 2012 and held several technical and administrative positions, it said.


Egypt In-Focus — Egypt launches low-cost airline Air Sphinx; Deal signed for high-speed rail line; SCZONE signs MOU with Toyota Tsusho

Egypt In-Focus — Egypt launches low-cost airline Air Sphinx; Deal signed for high-speed rail line; SCZONE signs MOU with Toyota Tsusho
Updated 39 min 22 sec ago

Egypt In-Focus — Egypt launches low-cost airline Air Sphinx; Deal signed for high-speed rail line; SCZONE signs MOU with Toyota Tsusho

Egypt In-Focus — Egypt launches low-cost airline Air Sphinx; Deal signed for high-speed rail line; SCZONE signs MOU with Toyota Tsusho

CAIRO: Egypt will be launching another airline, under the title of Air Sphinx by the end of this year.

After EgyptAir’s massive losses during the pandemic, the new low-cost airline is an effort to revive the aviation sector and increase profits, reported CNBC Arabia.

Additionally, it will encourage the flow of tourism within and outside of Egypt, according to Elhamy El-Zayat, the former head of the Egyptian Tourism Federation.  

Air Sphinx will operate from the Sphinx Airport in the 6th of October city, he added.

High-speed rail line

Egypt-based Elsewedy Electric, in partnership with Germany’s Deutsche Bahn International Operation, has signed a deal to operate and maintain the Egyptian high-speed rail line.

The scope of work includes the railway’s principle line and cargo rail networks, reported MEED.

SCZONE signs MOU with Toyota Tsusho

The Suez Canal Economic Zone has signed a memorandum of understanding with Japanese tycoon Toyota Tsusho Corp.

This comes as part of a plan to increase Japan’s presence in infrastructure and renewable energy-related projects, reported Egypt today.

Both sides will benefit from this deal, according to the general manager of Energy Infrastructure Projects at Toyota Tsusho Corp.