Oil slumps $10 per barrel as recession fears darken demand outlook

Global benchmark Brent crude was down $10.77, or 9.5 percent, at $102.73 a barrel by 11:43 a.m. EDT (1543 GMT).
Global benchmark Brent crude was down $10.77, or 9.5 percent, at $102.73 a barrel by 11:43 a.m. EDT (1543 GMT).
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Updated 05 July 2022

Oil slumps $10 per barrel as recession fears darken demand outlook

Oil slumps $10 per barrel as recession fears darken demand outlook

NEW YORK: Oil plummeted by about $10 a barrel on Tuesday on concerns of a looming global recession curtailing demand, even with expected supply disruptions as oil and gas workers in Norway began to strike.

Global benchmark Brent crude was down $10.77, or 9.5 percent, at $102.73 a barrel by 11:43 a.m. EDT (1543 GMT). US West Texas Intermediate crude fell $9.30, or 8.6 percent, to $99.13 a barrel from Friday’s close. There was no WTI settlement on Monday because of a US holiday.

“The market is getting tight, but still we're getting creamed and the only way you can explain that away is fear of recession in every risk asset,” said Robert Yawger, director, energy futures at Mizuho, New York. “You’re feeling the pressure.”

Oil futures sank along with equities, which often serve as demand indicator for crude, as investors fretted about the possibility of an economic downturn as central banks across the world take aggressive actions to limit inflation.

Supply concerns still linger, initially lifting WTI and Brent earlier in the session, due to potential output disruption in Norway, where offshore workers began a strike.

The strike is expected to reduce oil and gas output by 89,000 barrels per day, of which gas output makes up 27,500 bpd, Norwegian producer Equinor has said.

Saudi Arabia, the world’s top oil exporter, raised August crude oil prices for Asian buyers to near record levels amid tight supply and robust demand.

Meanwhile, Russia’s former President Dmitry Medvedev said a reported proposal from Japan to cap the price of Russian oil at about half its current level would mean less oil on the market and could push prices above $300-$400 a barrel.

G7 leaders agreed last week to explore the feasibility of introducing temporary import price caps on Russian fossil fuels, including oil, in an attempt to limit resources to finance Moscow’s “special military operation” in Ukraine.


Saudi Wafrah signs $4m contract with German GEA Food for meat production

Saudi Wafrah signs $4m contract with German GEA Food for meat production
Updated 21 sec ago

Saudi Wafrah signs $4m contract with German GEA Food for meat production

Saudi Wafrah signs $4m contract with German GEA Food for meat production

RIYADH: Saudi food firm Wafrah for Industry and Development Co. has signed a contract with German GEA Food Solutions, one of the world’s largest manufacturers of food lines and plants.

Under the $4 million contract, GEA Food Solutions will manufacture and supply highly automated lines for processing and packaging frozen and cooked meats for Wafrah, according to a bourse filing.

Wafrah said the company will start upgrading its production capacity and revenue in the second half of 2023.


Bank Albilad launches $53m wholly owned payments arm Enjaz

Bank Albilad launches $53m wholly owned payments arm Enjaz
Updated 14 min 46 sec ago

Bank Albilad launches $53m wholly owned payments arm Enjaz

Bank Albilad launches $53m wholly owned payments arm Enjaz

RIYADH: Saudi-based Bank Albilad has established a wholly owned payments arm in Riyadh with SR200 million ($53 million) capital, according to a bourse filing.

Enjaz Payment Services Co., licensed by the Saudi Central Bank as a Major Electronic Money Institution, will handle all payments and remittances activities currently operated as a business division in the bank.

The incorporation of Enjaz is in line with Bank Albilad’s strategy and any major developments in this regard will be announced in due course, it said.

 


Alkhair Capital among Kingdom’s top 10 financial firms with $3.6bn assets

Alkhair Capital among Kingdom’s top 10 financial firms with $3.6bn assets
Updated 43 min 55 sec ago

Alkhair Capital among Kingdom’s top 10 financial firms with $3.6bn assets

Alkhair Capital among Kingdom’s top 10 financial firms with $3.6bn assets

RIYADH: Alkhair Capital has seen the value of its assets under management rise to SR13.42 billion ($3.6 billion) in the first quarter, making it one of Saudi Arabia’s top ten financial institutions.

The Riyadh-headquartered investment firm reported a 34.6 percent increase in assets under management in the first quarter of 2022 compared to the year-ago period, according to the Capital Market Institutions Report.

“Alkhair Capital is a pioneer in providing Islamic products, and the recent ranking by the Capital Market Institutions confirms our strong track record and operational excellence,” said Abdullah Al Shilash, CEO of Alkhair Capital Saudi Arabia.

Most recently, Alkhair Capital acted as the financial advisor and underwriter to two Saudi-listed companies’ rights issue offerings.

The first was a SR173 million capital raise for Saudi Industrial Export Co. and the second was Amana Cooperative Insurance Co.’s SR300 million capital hike plan.


Saudi paper manufacturer MEPCO posts 216% leap in profit on higher revenues

Saudi paper manufacturer MEPCO posts 216% leap in profit on higher revenues
Updated 08 August 2022

Saudi paper manufacturer MEPCO posts 216% leap in profit on higher revenues

Saudi paper manufacturer MEPCO posts 216% leap in profit on higher revenues

RIYADH: Saudi papers maker MEPCO has posted a 216 percent leap in profits during the first half of 2022 fueled by higher revenues.

Profits of the company, formally known as Middle East Paper Co., rose to SR192 million ($51 million) in the first half, up from SR60 million in the prior year period, it said in a bourse filing.

This was coupled with a 45 percent increase in revenue to SR652 million during the same period owing to higher demand and pricing.


 


Saudi dairy giant Almarai re-appoints chairman and vice chairman

Saudi dairy giant Almarai re-appoints chairman and vice chairman
Updated 08 August 2022

Saudi dairy giant Almarai re-appoints chairman and vice chairman

Saudi dairy giant Almarai re-appoints chairman and vice chairman

RIYADH: Saudi-based dairy giant Almarai has re-elected Prince Naif bin Sultan bin Mohammed bin Saud Al-Kabeer as board chairman and Suliman Al Muhaideb as vice chairman.

The new term takes effect from Aug. 7 and will last for three years, according to a bourse filing.

Last month, the dairy giant announced strong results as it recorded an 8.4 percent increase in profit for the first half of 2022 to SR940 million ($250 million).