Oil Updates – prices edge up as investors eye US election fallout

Oil Updates – prices edge up as investors eye US election fallout
Brent crude oil futures were up 29 cents, or 0.39 percent, at $75.21 per barrel by 10:00 a.m. Saudi time. Shutterstock
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Updated 07 November 2024
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Oil Updates – prices edge up as investors eye US election fallout

Oil Updates – prices edge up as investors eye US election fallout
  • US dollar near four-month high as markets digest Trump win
  • China may face Iran crude squeeze if Trump ramps up sanctions
  • China’s October crude oil imports fall

SINGAPORE: Oil prices ticked up on Thursday following a sell-off triggered by the US presidential election, as risks to oil supply from a Trump presidency and a hurricane building in the Gulf Coast outweighed a stronger dollar and lower crude imports in top importer China.

Brent crude oil futures were up 29 cents, or 0.39 percent, at $75.21 per barrel by 10:00 a.m. Saudi time. US West Texas Intermediate crude gained 18 cents or 0.25 percent to $71.87.

Concerns around a Trump presidency squeezing oil supply from Iran and Venezuela as well as an approaching storm “more than offset the post-election impact of a stronger US dollar and ... higher-than-expected US inventories,” Tony Sycamore, a market analyst with IG, wrote in a note.

Trump’s election had initially triggered a sell-off that pushed oil prices down by more than $2 as the US dollar rose to its highest level since September 2022. But the front-month contracts pared losses to settle down 61 cents for Brent and 30 cents for WTI by the end of the Wednesday session.

“Historically, Trump’s policies have been pro-business, which likely supports overall economic growth and increases demand for fuel. However, any interference in the Fed’s easing policies could lead to further challenges for the oil market,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

“With the bumper surge in the dollar hovering at near 4-month highs, oil seems to be talking massive headwinds in the aftermath of the US election results.”

The upside to oil markets may be limited to the short to medium term as OPEC is expected to increase supply capacity in January, while historical trends do not suggest sanctions will prevent India and China from continuing to purchase oil from Russia or Iran, Sachdeva said.

Crude oil imports in China, the world’s largest crude importer, fell 9 percent in October, posting a sixth consecutive monthly year-on-year decline as a plant closure at a state oil refinery adds to weaker demand from independent refiners, data showed on Thursday.

Donald Trump is expected to reimpose his “maximum pressure policy” of sanctions on Iranian oil. That could cut supply by as much as 1 million barrels per day, according to an Energy Aspect estimate.

Trump in his first term had also put in place harsher sanctions on Venezuelan oil, measures that were briefly rolled back by the Biden administration but later reinstated.

In North America, Hurricane Rafael intensified into a category 3 hurricane on Wednesday, and about 17 percent of crude oil production or 304,418 barrels per day in the US Gulf of Mexico had been shut in response, the US Bureau of Safety and Environmental Enforcement said.

US crude inventories rose by 2.1 million barrels to 427.7 million barrels in the week ending on Nov. 1, the US Energy Information Administration said on Wednesday, compared with expectations for a 1.1 million-barrel rise.


Saudi Arabia surpasses Vision 2030 target of 1m volunteers ahead of time

Saudi Arabia surpasses Vision 2030 target of 1m volunteers ahead of time
Updated 05 December 2024
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Saudi Arabia surpasses Vision 2030 target of 1m volunteers ahead of time

Saudi Arabia surpasses Vision 2030 target of 1m volunteers ahead of time

RIYADH: Saudi Arabia has surpassed its Vision 2030 target of 1 million volunteers six years ahead of schedule, according to the CEO of the National Center for Non-Profit Sector.

Speaking to Arab News on the sidelines on the fourth day of COP16, Ahmed Al-Suwailem explained that the Kingdom’s volunteering journey achieved the target just prior to the end of 2024.

This falls in line with promoting the concept of volunteering and community participation in Saudi Arabia.

“Today, we are celebrating the biggest achievement that we did in terms of volunteering. Of course, I will start with my thanks and gratitude to his majesty, the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, and also his Crown Prince, the Prime Minister, Prince Mohammed bin Salman bin Abdulaziz, for their unbelievable effort and support, for us, and they enabled us to achieve, this amazing target of 1 million volunteers, 1 million per annum,” Al-Suwailem said.

He added: “Absolutely, we have achieved the target earlier than we were supposed to achieve it, or 2030. We achieved it just before the end of 2024. We have achieved 1 million, as I said, per annum. We were supposed to achieve it in 2030.”

The CEO went on to say: “I think what we are going to do next is going to the 2 million or 3 million per annum.”

He added: “We are going for a further target and we are now reviewing the target again, and we’ll see what we will achieve in 2030.”

With regards to achieving the target, Al-Suwailem said: “We couldn’t achieve that unless we have this amazing, unbelievable, continuous support from our leadership and also with an enablement from our people,” he said.

He added that the public’s volunteer support is evident in their efforts, thoughts, and shared experiences.

“We are trying our best to send our message as the people of Saudi Arabia, that we are global citizens, that we can also do our volunteering internally and internationally,” he added.

The CEO also highlighted how this achievement will support the Kingdom’s Vision 2030, underlining that volunteering will play a key role in helping the company meet the objectives of the Saudi Green Initiative. The undertaking aims to diversify the economy, reduce oil dependency, and promote sustainable development.

He added: “So, this is where we complete each other as governmental entities and also private sector and the nonprofit sector.”

The CEO concluded by saying: “And of course, last but not least, people are the key element for achieving all these targets.”

The Kingdom’s hosting of COP16 reflects its commitment to protecting the planet. In the largest multilateral conference it has ever hosted, Saudi Arabia is mobilizing the world to deliver international cooperation, change, and action that our land so desperately needs.


OPEC+ extends production cuts by three months through March

OPEC+ extends production cuts by three months through March
Updated 05 December 2024
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OPEC+ extends production cuts by three months through March

OPEC+ extends production cuts by three months through March

RIYADH: OPEC+ on Thursday agreed to extend their supply cuts for three months through March to to support market stability.

OPEC+ countries, including Saudi Arabia and Russia, “will extend their additional voluntary adjustments of 2.2 million barrels per day... until the end of March 2025,” the alliance said in a statement.

A virtual meeting was held on the sidelines of the 38th OPEC and non-OPEC Ministerial Meeting.

According to the statement, the meeting welcomed the pledges made by the overproducing countries to achieve full conformity and resubmit their updated compensation schedule to the OPEC Secretariat for the overproduced volumes since January 2024 before the end of December 2024.

The alliance members will extend their additional voluntary adjustments of 2.2 million bpd, that were announced in November 2023, until the end of March 2025 and then the 2.2 million barrels per day adjustments will be gradually phased out on a monthly basis until the end of September 2026. This monthly increase can be paused or reversed subject to market conditions.

OPEC+ members are holding back 5.86 million bpd of output, or about 5.7 percent of global demand, in a series of steps agreed since 2022 to support the market.

The alliance also agreed to allow the UAE to raise output by 300,000 bpd gradually from April until the end of September 2026, instead of the earlier plan to start it in January 2025.

Despite the group’s supply cuts, global oil benchmark Brent crude has mostly stayed in a $70 to $80 per barrel range this year and on Thursday traded near $72 a barrel, having hit a 2024 low below $69 in September.


NEOM’s Topian launches pilot greenhouse for climate-resilient farming

NEOM’s Topian launches pilot greenhouse for climate-resilient farming
Updated 05 December 2024
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NEOM’s Topian launches pilot greenhouse for climate-resilient farming

NEOM’s Topian launches pilot greenhouse for climate-resilient farming

RIYADH: NEOM’s food company, Topian, has unveiled its first high-tech greenhouse in Oxagon, the industrial hub along Saudi Arabia’s Red Sea coast. 

The four-hectare facility, located in Oxagon Innovation Bay, is designed to pilot sustainable and localized food production using advanced agricultural technologies, according to a press releasae.

The greenhouse is expected to produce nearly 4,000 tonnes of fruits and vegetables annually while developing AI-driven predictive models to optimize operations in similar environments. 

This initiative is part of Topian’s broader mission to enhance food systems with sustainable practices that minimize resource use. It aligns with Saudi Arabia's ambitions to enhance food security, combat climate change, and achieve net-zero emissions by 2060, all in support of Vision 2030 goals.

“This project is exciting because this first set of high-tech greenhouses enables us to control the climate for plant growth in an environmentally friendly manner,” said Juan Carlos Motamayor, CEO of Topian. 

“It represents a positive step towards boosting regional and national food security and transforming food systems in Saudi Arabia and other arid regions affected by climate change,” he added.

The pilot will evaluate crop performance under various conditions, focusing on energy and water efficiency, cooling technologies, and radiation control. The project will leverage NEOM’s future renewable energy infrastructure to further optimize production, the release added.

Future plans include leveraging NEOM’s renewable energy infrastructure, such as its photovoltaic network, to further optimize operations.

Vishal Wanchoo, CEO of Oxagon, said: “This pilot aims to deliver, at scale, sustainably produced ingredients that NEOM residents and hospitality partners will be able to use – demonstrating an entirely localized ‘farm-to-table’ supply chain.” 

The greenhouse will provide year-round availability of locally grown produce such as lettuce, tomatoes, and strawberries, prioritizing quality and sustainability. Scientists will analyze taste, color, and texture to refine crop production for the consumer market.

Developed in collaboration with Van der Hoeven, a Dutch horticultural technology firm, the project serves as a testbed for innovative agricultural solutions. It aligns with NEOM’s broader goals to establish sustainable industries and tackle food security challenges in arid regions.

By showcasing the potential of clean technology and innovative farming practices, Topian’s greenhouse project underscores NEOM’s commitment to pioneering solutions that address global challenges and set a benchmark for future sustainable development.


Saudi Arabia launches 1st Japanese equity fund in partnership with SBI, Albilad Capital

Saudi Arabia launches 1st Japanese equity fund in partnership with SBI, Albilad Capital
Updated 05 December 2024
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Saudi Arabia launches 1st Japanese equity fund in partnership with SBI, Albilad Capital

Saudi Arabia launches 1st Japanese equity fund in partnership with SBI, Albilad Capital

DUBAI: Saudi Arabia has launched its first Japanese equity mutual fund, marking a significant step in a new partnership between Albilad Capital, the Kingdom’s largest exchange-traded fund manager, and Japan’s SBI Holdings, a leading financial group.

In a statement released on Thursday, SBI Holdings announced that the collaboration would provide Saudi investors with access to Japanese equities for the first time. At the same time, Japanese investors will be able to explore Saudi Arabia’s innovative financial offerings, including Shariah-compliant ETFs.

This partnership builds on a milestone achievement earlier this year, when SBI Asset Management— a subsidiary of SBI Global Asset Management— launched Japan’s first Saudi stock index-linked ETF, the SBI Saudi Arabia Equity Exchange Traded Fund, on the Tokyo Stock Exchange.

This new agreement further solidifies the investment ties between Saudi Arabia and Japan, contributing to the Kingdom’s Vision 2030, which focuses on attracting foreign investment, diversifying the economy, and expanding key sectors such as tourism, entertainment, and non-oil industries.

Recent developments supporting this vision include the creation of one of the world’s largest theme parks based on popular Japanese intellectual properties like Dragon Ball, as well as significant investments in major Japanese gaming companies.

Albilad Capital, the investment arm of Bank Albilad, is a key player in Saudi Arabia’s financial market and manages a significant portion of the country’s ETFs.

Meanwhile, SBI Group, which established its Middle East regional hub in Riyadh earlier this year, has reinforced its commitment to the region. The group has also teamed up with local firms to launch a regional investment fund aimed at fostering growth and innovation.

This collaboration highlights the deepening financial and economic ties between Saudi Arabia and Japan, positioning both nations for a future of shared investment opportunities.


Saudi Arabia ranks among top three globally in post-pandemic tourism rebound

Saudi Arabia ranks among top three globally in post-pandemic tourism rebound
Updated 05 December 2024
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Saudi Arabia ranks among top three globally in post-pandemic tourism rebound

Saudi Arabia ranks among top three globally in post-pandemic tourism rebound

RIYADH: Saudi Arabia has emerged as the third-fastest-growing destination worldwide for international tourism recovery in 2023, with arrivals increasing by 61 percent compared to pre-pandemic levels, according to the latest World Tourism Barometer from the UN World Tourism Organization.

The Middle East, led by Saudi Arabia and Qatar, has recorded the strongest growth globally, with international tourism recovering 98 percent of its pre-pandemic activity. Saudi Arabia’s tourism sector, a key pillar of the Kingdom’s Vision 2030 plan, is central to its broader strategy to diversify the economy away from oil dependence.

This growth is fueling efforts to boost tourism’s contribution to the national gross domestic product, with a target to raise its share from 3 percent to 10 percent by the end of the decade, aligning with the Vision 2030 objectives.

According to the Barometer, 1.1 billion international tourists traveled globally between January and September 2023, marking a major milestone in the industry’s recovery post-COVID-19.

Full recovery is expected by the end of the year, with the Middle East leading the way in growth, driven by Saudi Arabia and Qatar’s stellar performance.

Qatar, for example, saw more than double the number of arrivals compared to 2019, while Saudi Arabia's surge in visitor numbers further cemented its position as a global tourism leader.

Globally, tourism recovery has been steady across regions. Europe and Africa both surpassed 2019 levels in tourist arrivals, while the Americas reached 97 percent of pre-pandemic figures. Asia and the Pacific, which reopened more gradually, reached 85 percent of 2019 levels by September, showing continued improvement.

The Northern Hemisphere’s summer travel season was especially strong, with global arrivals nearly matching pre-pandemic levels in the third quarter.

Tourism spending has also surged. Of the 43 destinations tracked by the UNWTO, 35 reported higher tourism receipts than before the pandemic. This trend is reflected in Saudi Arabia, which has seen an increase in both visitor numbers and spending. Other countries, including Japan, Turkiye, and France, have also experienced significant growth in tourism receipts. Spain, Italy, and the UK also reported strong increases in tourism-related earnings.

UNWTO Secretary-General Zurab Pololikashvili commented: “The strong growth in tourism receipts is excellent news for economies worldwide. The fact that visitor spending is growing even faster than arrivals directly benefits millions of jobs, small businesses, and contributes significantly to the balance of payments and tax revenues in many countries.”

As global tourism recovers, Saudi Arabia continues to capitalize on this momentum to solidify its position as a leading global travel destination, while advancing its ambitious economic diversification goals.