Saudi fuel retailer, UAE firm in deal for service stations

Updated 29 August 2012

Saudi fuel retailer, UAE firm in deal for service stations

DUBAI: Emirates National Oil Co. (Enoc) has teamed up with Saudi fuel retailer Aldrees to build at least 40 service stations in the Kingdom, the companies said.
Enoc has formed a 50:50 joint venture with Aldrees Petroleum, which enjoys healthy sales margins thanks to plentiful supplies from Saudi Aramco, to increase its revenues abroad.
“We make good returns on the nonfuel business but it doesn’t compensate for the losses that we have,” Burhan Al Hashemi, managing director of Enoc Retail, said at a signing ceremony in Dubai.
“So that’s why for the whole organization is to go outside and explore new markets.”
Abdulelah Saad Aldrees, the head of Aldrees Petroleum, said Aldrees buys 91 octane gasoline for SR 0.36 a liter and sells it at SR0.45. It pays SR 0.51 for 95 octane gasoline and sells it at SR 0.60, he said. The higher octane gasoline costs about SR1.75 in the UAE.
Aldrees operates more than 450 filling stations in Saudi Arabia, and the partners plan to build at least 40 more in the first phase the AED 400 million investment plan.
 


Oil prices surge after attacks hit Saudi output

Updated 7 min 38 sec ago

Oil prices surge after attacks hit Saudi output

  • The Houthi attacks hit two Aramco sites and effectively shut down six percent of the global oil supply
  • President Donald Trump said Sunday the US was ‘locked and loaded’ to respond to the attacks

HONG KONG: Oil prices saw a record surge Monday after attacks on two Saudi facilities slashed output in the world’s top producer by half, fueling fresh geopolitical fears as Donald Trump blamed Iran and raised the possibility of a military strike on the country.
Brent futures surged $12 in the first few minutes of business — the most in dollar terms since they were launched in 1988 and representing a jump of nearly 20 percent — while WTI jumped more than $8, or 15 percent.
Both contracts pared the gains but were both still more than 10 percent up.
The attack by Tehran-backed Houthi militia in neighboring Yemen, where a Saudi-led coalition is bogged down in a five-year war, hit two sites owned by state-run giant Aramco and effectively shut down six percent of the global oil supply.
Trump said Sunday the US was “locked and loaded” to respond to the attack, while Secretary of State Mike Pompeo said: “The United States will work with our partners and allies to ensure that energy markets remain well supplied and Iran is held accountable for its aggression.”
Tehran denies the accusations but the news revived fears of a conflict in the tinderbox Middle East after a series of attacks on oil tankers earlier this year that were also blamed on Iran.
“Tensions in the Middle East are rising quickly, meaning this story will continue to reverberate this week even after the knee-jerk panic in oil markets this morning,” said Jeffrey Halley, senior market analyst at OANDA.
Trump authorized the release of US supplies from its Strategic Petroleum Reserve, while Aramco said more than half of the five million barrels of production lost will be restored by tomorrow.
But the strikes raise concerns about the security of supplies from the world’s biggest producer.
Oil prices had dropped last week after news that Trump had fired his anti-Iran hawkish national security adviser John Bolton, which was seen as paving the way for an easing of tensions in the region.
“One thing we can say with confidence is that if part of the reason for last week’s fall in oil and improvement in geopolitical risk sentiment was the news of John Bolton’s sacking ... and thoughts this was a precursor to some form of rapprochement between Trump and Iran, then it is no longer valid,” said Ray Attrill at National Australia Bank.