Oil Updates — Crude set for weekly rise on new Iran sanctions, OPEC cuts

Oil Updates — Crude set for weekly rise on new Iran sanctions, OPEC cuts
Brent crude futures rose 56 cents, or 0.85 percent, to $66.41 a barrel by 9:25 a.m. Saudi time and US West Texas Intermediate crude was at $63.12 a barrel, up 65 cents, or 1.04 percent. Shutterstock.
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Updated 17 April 2025
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Oil Updates — Crude set for weekly rise on new Iran sanctions, OPEC cuts

Oil Updates — Crude set for weekly rise on new Iran sanctions, OPEC cuts

LONDON: Oil prices extended gains on Thursday on the prospect of tighter supply after Washington imposed further sanctions to curb Iranian oil trade and as some OPEC producers pledged more output cuts to compensate for pumping above agreed quotas.

Brent crude futures rose 56 cents, or 0.85 percent, to $66.41 a barrel by 9:25 a.m. Saudi time and US West Texas Intermediate crude was at $63.12 a barrel, up 65 cents, or 1.04 percent. 

Both benchmarks settled 2 percent higher on Wednesday at their highest levels since April 3 and are on track for their first weekly rise in three. 

Thursday is the last settlement day of the week ahead of the Good Friday and Easter holidays.

“I think the rally has a couple of factors behind it — short-covering, the weaker USD, which makes crude oil cheaper to buy, and the US pressure on Iran,” IG market analyst Tony Sycamore said.

WTI could rise back to $65-$67 a barrel but may struggle with further gains, he said.

“If we assume that US growth is going to be flat at best for the next two quarters and Chinese GDP (gross domestic product) is set to slow to somewhere between the 3 percent-4 percent band, it’s not good for crude oil,” Sycamore said.

President Donald Trump’s administration issued new sanctions targeting Iran’s oil exports on Wednesday, including against a China-based “teapot” oil refinery, ramping up pressure on Tehran amid talks on the country’s escalating nuclear program.

Adding to supply concerns, the Organization of the Petroleum Exporting Countries said on Wednesday it had received updated plans for Iraq, Kazakhstan and other countries to make further output cuts to compensate for pumping above quotas.

“(These factors) certainly could have affected sentiment – would argue that Iranian production (is) not significant and that OPEC quotas more often breached than observed, but both factors fed into the more bullish tone,” said Michael McCarthy, CEO of online investment platform Moomoo.

Big draws on US gasoline and distillates stocks and a smaller-than-expected gain in weekly crude inventories also bolstered markets, he said.

“Much of the recent selling pressure in global crude markets related to fears of an imminent flood of US oil, but the drop in refining suggests that bottlenecks to supply may be emerging,” McCarthy said.

Still, OPEC, the International Energy Agency and several banks, including Goldman Sachs and JP Morgan, cut forecasts on oil prices and demand growth this week as US tariffs and retaliation from other countries threw global trade into disarray.

The World Trade Organization said it expected trade in goods to fall by 0.2 percent this year, down from its expectation in October of a 3.0 percent expansion.


Closing Bell: Saudi main index slips to close at 11,485 

Closing Bell: Saudi main index slips to close at 11,485 
Updated 18 sec ago
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Closing Bell: Saudi main index slips to close at 11,485 

Closing Bell: Saudi main index slips to close at 11,485 

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Thursday, losing 46.95 points, or 0.41 percent, to close at 11,485.05. 

The total trading turnover of the benchmark index was SR5.28 billion ($1.40 billion), as 61 of the stocks advanced and 179 retreated.  

Similarly, the Kingdom’s parallel market Nomu lost 46.12 points, or 0.17 percent, to close at 27,841.06. This comes as 32 of the listed stocks advanced while 43 retreated.  

The MSCI Tadawul Index lost 4.40 points, or 0.30 percent, to close at 1,462.76.   

The best-performing stock of the day was Miahona Co., whose share price surged 10 percent to SR24.86.  

Other top performers included National Gypsum Co., whose share price rose 4.90 percent to SR21 as well as Saudi Manpower Solutions Co., whose share price surged 3.09 percent to SR7.01. 

Zamil Industrial Investment Co. recorded the most significant drop, falling 10 percent to SR43.20. 

Arabian Contracting Services Co. also saw its stock prices fall 8.21 percent to SR125.20, while Retal Urban Development Co. also saw its share value decline 6.98 percent to SR15.72. 

On the announcements front, Saudi Awwal Bank has completed the offering of its USD-denominated Additional Tier 1 Green Sukuk, valued at $650 million. According to a statement on Tadawul, the total number of sukuk issued stands at 3,250, based on a minimum denomination and total issue size at a par value of $200,000 each. The sukuk offers a return of 6.50 percent and features perpetual maturity. 

Saudi Awwal Bank ended the session at SR34.40, up 1.31 percent. 

Bank Albilad has announced the commencement of its offering for a USD-denominated Additional Tier 1 Capital Sukuk. According to a bourse filing, the final amount and terms of the sukuk will be determined at a later stage, subject to prevailing market conditions. The offering period runs from May 15 to May 16. 

The minimum subscription is set at $200,000, with additional increments of $1,000, based on a par value of $200,000. The bank has appointed HSBC Bank plc, Albilad Capital, Goldman Sachs International, and Emirates NBD Bank PJSC as joint lead managers for the issuance. 

Bank Albilad ended the session at SR27.10, up 0.19 percent. 

Emaar, The Economic City has announced its interim financial results for the first three months of 2025. According to a Tadawul statement, the company reported a net loss of SR123 million in the period ending March 31, down 65 percent compared to the corresponding quarter a year earlier. 

This decrease in net loss is primarily attributed to an increase in revenues, a decrease in operational expenses, and reversal of ECL provision following a reassessment compared to the recorded provision in the corresponding quarter. 

Emaar, The Economic City ended the session at SR13.50, down 1.02 percent. 

Zamil Industrial Investment Co. reported a net profit of SR21.8 million for the first quarter of 2025, marking a 301 percent increase compared to the same period last year, according to a bourse filing.

The sharp rise in earnings was driven by higher sales across all business segments, along with increased operating income in the air conditioning, construction, and insulation divisions. The company also benefited from improved contributions from associates and joint ventures, as well as reduced financial charges. 


Saudi Arabia forges ahead in AI and tech through US partnerships

Saudi Arabia forges ahead in AI and tech through US partnerships
Updated 15 May 2025
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Saudi Arabia forges ahead in AI and tech through US partnerships

Saudi Arabia forges ahead in AI and tech through US partnerships

JEDDAH: Saudi Arabia is advancing its artificial intelligence, cybersecurity, and cloud computing capabilities through agreements signed with leading US tech firms during an investment forum in Riyadh.

Among the deals signed during the event, six agreements were inked by entities from the Kingdom with US companies, reflecting the deepening strategic and technological cooperation between the two countries.

The forum commenced on May 13 at the King Abdulaziz International Conference Center in the Saudi capital, with the participation of high-ranking officials from both countries. 

It coincided with the visit of US President Donald Trump, during which the Kingdom announced the signing of agreements with the North American country valued at over $300 billion.

These agreements mark a significant step forward in Saudi Arabia’s push to build a diversified, knowledge-based economy through strategic international partnerships, according to the Saudi News Agency.

The Saudi Data and Artificial Intelligence Authority, known as SDAIA, inked four memorandums of understanding with US technology firms PureStorage, DataDirect Network, Wika.io, and Palo Alto Networks during the event.

The agreements aim to enhance the Kingdom’s data and AI infrastructure, drive innovation in emerging technologies, and strengthen cooperation in cybersecurity and technical fields, SPA reported

In a separate move, the Saudi Digital Government Authority signed an MoU with the leading US multinational technology company Oracle to expand collaboration in cloud computing, AI, and digital services.

“The partnership is expected to strengthen the Kingdom’s leadership in cloud computing and digital transformation, enhance digital awareness among government employees and the wider community, and improve the efficiency of government services provided to citizens and residents,” the authority said in a statement.

The release added that the deal represents a model of constructive collaboration and an extension of national efforts aimed at promoting digital innovation, supporting the economy, and achieving institutional excellence through the development of the digital government ecosystem.

The signing ceremony took place at the authority’s headquarters in Riyadh and was attended by Ahmed Al-Suwaiyan, governor of DGA, and Cormac Watters, executive vice president and general manager at Oracle EMEA applications.

The agreement was signed by DGA Vice Gov. Abdullah Al-Faifi and Oracle Country Leader Reham Al-Musa.

The National Center for Privatization signed a memorandum of cooperation with the Association for the Improvement of American Infrastructure to strengthen professional competencies in privatization and public-private partnerships.

Signed on the sidelines of the forum, the agreement “reflects the NCP’s efforts to expand collaboration with the US private sector and develop training programs for Saudi professionals,” SPA report noted.

Under the deal, NCP and AIAI will work together on joint events, expert exchanges, and specialized sessions aimed at promoting institutional knowledge and global best practices in the Kingdom’s privatization ecosystem.


Saudi Arabia aiming to foster innovation and global collaboration, says economy minister 

Saudi Arabia aiming to foster innovation and global collaboration, says economy minister 
Updated 15 May 2025
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Saudi Arabia aiming to foster innovation and global collaboration, says economy minister 

Saudi Arabia aiming to foster innovation and global collaboration, says economy minister 

RIYADH: Saudi Arabia aims to foster a dynamic private sector, create jobs for its citizens, and attract international talent as part of its Vision 2030 strategy, according to a top official. 

Speaking during an interview with Fox News on the sidelines of the Saudi-US Investment Forum, Economy and Planning Minister Faisal Al-Ibrahim said the Kingdom has embarked on a transformative path to unlock its potential and shift its growth narrative beyond oil. 

The forum was held on the occasion of US President Donald Trump’s visit to Saudi Arabia, during which he was accompanied by a delegation of leading business figures. 

Al-Ibrahim said: “We want a private sector that’s dynamic. We’re a young population, but in about 20, 25, 30 years, we’ll start the aging process. What we should look like at that stage is a government and a private sector and a third sector, and academia that is leveraging fully generative AI and other technological tools toward productivity.”  

He added: “But also that has created jobs for a lot of Saudis, and has been able to, in the process, attract a lot of talent to come to Saudi to make Saudi Arabia their home.” 

The minister emphasized that diversification has already begun to yield results, with sectors such as tourism, culture, and technology,  as well as sports and artificial intelligence, contributing significantly to gross domestic product. 

“We would love to be competitive in a large and vibrant consumer market, such as that in the US,” the minister said, highlighting the Kingdom’s increasing connections with global markets, especially American capital markets. 

Al-Ibrahim noted that the non-oil gross domestic product has surpassed 50 percent for the first time, but cautioned against complacency. 

“We’re not over-celebrating that, but we’re acknowledging this as a milestone. What we want to see is more non-oil exports growing. More non-oil exports of our manufacturing, GDP,” Al-Ibrahim said. 

The minister also emphasized the importance of service sector quality, adding: “We want to see user experience in the services side, especially on the tourism side, second to none. Still have a lot of work to do.” 

He noted that both Crown Prince Mohammed bin Salman and President Donald Trump have spoken of “peace and prosperity” as tools to address global challenges, reinforcing the Kingdom’s alignment with international efforts toward stability. 

“We’ve seen what dialogue has led to in terms of the US and UK deal, US and China deal, and what Saudi has led to also through dialogue in the region,” the minister added. 

On regional developments, he commented on the US decision to lift sanctions on Syria and its potential impact. 

“Something as strong and meaningful and material as lifting sanctions could help a country such as Syria to invest more capital in building the institutions they need to be a more stable country, but also bring more stability to the region and be a force for good,” Al-Ibrahim said.

Describing the relationship between the crown prince and President Trump, the minister added: “I see common values between both leaders, regardless of age and background, and I think that’s one of the things that really brings the mutual respect into the public eye.” 

Addressing skepticism about the Kingdom’s evolution, the minister concluded: “Saudi Arabia is a long-term reliable partner, if you ask anyone who has dealt with the Kingdom, government, people, anyone who has visited here ... Saudi Arabia has always been and always will be a force for good, for innovation.” 


Egypt approves $221m of oil exploration deals with foreign firms 

Egypt approves $221m of oil exploration deals with foreign firms 
Updated 15 May 2025
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Egypt approves $221m of oil exploration deals with foreign firms 

Egypt approves $221m of oil exploration deals with foreign firms 

RIYADH: Egypt has approved $221 million worth of deals with foreign firms for oil exploration and exploitation in the Western Desert and Gulf of Suez.

A statement issued following a meeting of the country’s Cabinet, chaired by Prime Minister Mostafa Madbouly, said ministers had signed off on five draft petroleum commitment agreements.

The deals involve the Egyptian General Petroleum Corp., the Egyptian Natural Gas Holding Co., and a group of international oil companies. 

Egypt’s oil and gas sector is rapidly expanding through exploration and global deals, reinforcing its role as a regional energy hub. This aligns with projections from Imarc Group, which forecasts a 4.37 percent annual growth rate for the sector from 2025 to 2033. 

The cabinet release stated: “These agreements cover oil exploration and exploitation in the Northwest Al Maghrah area in the Western Desert, East El Hamad in the Gulf of Suez, East Gemsa Marine in the Gulf of Suez, and the Integrated Research and Development Area in the Western Desert.” 

It added: “They also cover exploration and exploitation of gas and crude oil in the North Damietta Marine area in the Mediterranean Sea.” 

The contracts include a non-refundable signature bonus of $31.5 million and require the drilling of at least 24 wells, the cabinet said. 

Last month, the cabinet approved two deals allowing the Ministry of Petroleum to sign contracts with foreign firms. One permits South Valley Egyptian Petroleum and Lukoil to operate in South Wadi El-Sahl in the Eastern Desert, while the other authorizes the Egyptian General Petroleum Corporation and Lukoil to explore the adjacent Wadi El-Sahl area. 

Egypt holds a key position in global energy markets through the Suez Canal and Suez-Mediterranean pipeline. 

Since its 2015 expansion, the Suez Canal has served as a vital route for oil and liquefied natural gas shipments from North Africa and the Mediterranean to Asia. Revenue from these transit points makes up a significant portion of the government’s income. 

In April, officials reported that Suez Canal revenue fell by nearly two-thirds over the past year, citing regional tensions and Middle East conflicts as major factors disrupting traffic. 

The canal remains a critical source of foreign currency, handling around 10 percent of global trade in recent years. 


IEA forecasts slowdown in global oil demand growth for the rest of 2025

IEA forecasts slowdown in global oil demand growth for the rest of 2025
Updated 15 May 2025
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IEA forecasts slowdown in global oil demand growth for the rest of 2025

IEA forecasts slowdown in global oil demand growth for the rest of 2025

LONDON: The International Energy Agency said on Thursday economic headwinds combined with record sales of electric vehicles will reduce global oil demand growth to 650,000 barrels per day for the remainder of 2025.

That marks a slowdown from the 990,000 bpd the IEA measured for demand growth over January-March.

“Increased trade uncertainty is expected to weigh on the world economy and, by extension, oil demand,” the IEA said in its May oil market report.

The IEA now expects global demand growth to average 740,000 bpd overall this year, an upward revision of 20,000 bpd on the month because of higher expected economic growth and lower oil prices supporting consumption.

It sees demand growth then averaging a similar 760,000 bpd in 2026.

The Paris-based watchdog hiked its supply growth forecast by almost 400,000 bpd on the month to 1.6 million bpd in 2025 as expectations of higher output from Saudi Arabia offset a predicted slowdown in US shale oil output in a lower oil price environment.

Saudi Arabia accounts for almost all of the hike in the IEA’s 2025 supply growth forecast, the IEA said, as it is the only country with room to add barrels back to the market based on current production levels.

The OPEC+ group agreed a second monthly accelerated output increase for June at its last meeting.

“Based on continued price weakness, we expect more activity cuts over the coming quarters,” the IEA said of US shale, having cut its US shale forecast by 40,000 bpd for 2025 and 190,000 bpd for 2026.

In its own monthly oil report on Wednesday, the Organization of Petroleum Exporting Countries trimmed its forecast for oil supply growth from the US and other producers outside the wider OPEC+ group for 2025.

A sharp rise in supply, considerably outpacing demand growth, will force oil storage levels higher by an average of 720,000 bpd this year, the IEA said, after stocks declined on average by 140,000 bpd last year.