LONDON: Oil prices reversed early declines on Tuesday, supported by fears of tighter Russian and Iranian supply in the face of escalating Western sanctions.
Brent crude futures advanced 60 cents, or 0.79 percent, to $76.90 a barrel by 5:22 p.m. Saudi time, while US West Texas Intermediate crude was up 50 cents, or 0.68 percent, at $74.06.
It seems market participants have started to price in some small supply disruption risks on Iranian crude exports to China, said UBS analyst Giovanni Staunovo.
Concern over sanctions tightening supply has translated into increased demand for Middle Eastern oil, reflected in a rise in Saudi Arabia’s February oil prices to Asia, the first such increase in three months.
In China, Shandong Port Group on Monday issued a notice banning US-sanctioned oil vessels from its network of ports, three traders said, potentially restricting blacklisted vessels from major energy terminals on China’s east coast.
Shandong Port Group oversees large ports on China’s east coast, including Qingdao, Rizhao and Yantai, which are major terminals for importing sanctioned oil.
Meanwhile, cold weather in the US and Europe has boosted heating oil demand, though oil price gains were capped by global economic data.
Euro zone inflation accelerated in December, an unwelcome but expected blip that is unlikely to derail further interest rate cuts from the European Central Bank.
“Higher inflation in Germany raised suggestions that the ECB may not be able to cut rates as fast as hoped across the eurozone,” said Panmure Liberum analyst Ashley Kelty.
Technical indicators for oil futures are now in overbought territory and sellers are keen to step in again to take advantage of the strength, tempering additional price advances, said Harry Tchilinguirian, head of research at Onyx Capital Group.
Market participants are awaiting more data this week, including the US December non-farm payrolls report on Friday, for clues on US interest rate policy and the oil demand outlook.
Oil Updates — prices dip as demand optimism fades
https://arab.news/b53jf
Oil Updates — prices dip as demand optimism fades
- Concern over sanctions tightening supply has translated into increased demand for Middle Eastern oil
- Market participants are awaiting more data this week
Invest Qatar launches $1bn incentive program to accelerate investment
- Move was announced during the 5th Qatar Economic Forum
- Program offers financial packages for local and international investors covering up to 40% of expenses
DUBAI: Investment promotion agency Invest Qatar has launched a $1 billion program aimed at accelerating investment inflows and boosting diversification of the Qatari economy, it said on Wednesday.
Announced during the 5th Qatar Economic Forum, the program offers financial packages for local and international investors covering up to 40 percent of expenses such as setup costs, construction, leases and staff for a five-year period.
It said the first phase of the program will offer four off-the-shelf packages designed to stimulate fresh investment, support the expansion and digitization of existing facilities, create high-skilled employment, and promote knowledge transfer.
The Advanced Industries Package targets high-value, technology-intensive sectors such as pharmaceuticals, chemicals, automotive, and electronics.
The Logistics Package encourages investments in infrastructure, automation and advanced logistics services, while the Technology Package seeks to develop the digital economy through support for cybersecurity, cloud computing, artificial intelligence and data-driven innovation.
The Lusail financial services package aims to advance fintech, insurance, asset and wealth management, while incentivising firms to establish offices in Lusail, the country’s main financial district.
Kuwait sovereign wealth fund head says investors reduce US exposure at their ‘own risk’
DOHA: The head of the Kuwait Investment Authority, which manages almost $1 trillion in assets, said the sovereign wealth fund is committed to investing in the US and that investors cut allocations to US assets at their own risk.
Some global investors have ditched US assets in recent weeks on fears that US President Donald Trump’s overhaul of global trade may hurt the US economy, and could cause deeper long-term damage.
The trend looks set to continue, given that a record number of managers have said they plan to keep cutting their exposure to US assets, according to BofA research.
Kuwait has been investing in the US market for a “long time” and that “won’t change,” KIA Managing Director Sheikh Saoud Salem Abdulaziz Al-Sabah said at an investment conference in the Qatari capital on Wednesday.
“I would say it very bluntly, underweight America at your own risk,” he said.
Last week, Moody’s downgraded the US sovereign credit rating by one notch, citing concerns about the nation’s growing $36 trillion debt pile, which could make investors more cautious and drive up borrowing costs across the economy.
“They (investors) are merely looking at equity markets, but they’re not taking into fact the US has the largest fixed income market, the US has the largest private equity market, the real estate market, infrastructure and credit,” Al-Sabah said.
“I think the US has the breadth and depth to sustain its exceptionalism and it has the rule of law as well,” he said.
Jewelry spending up 13% in Saudi Arabia as weekly POS stays above $3.2bn: SAMA
RIYADH: Jewelry spending in Saudi Arabia rose by 13.2 percent between May 11 and 17 compared to the previous week, adding SR330.4 million ($88 million) to point-of-sale transactions during this period.
The latest data from Saudi Arabia’s central bank, SAMA, revealed that it was one of only two sectors to record growth during the period, with education also posting an increase of 1.4 percent to SR164.6 million.
The Kingdom’s overall POS transactions saw a 5.5 percent dip to SR12.3 billion in the seven-day period, driven by decreased spending across most of the sectors.
Hotels spending saw the biggest drop, dipping by 18.1 percent to SR218.2 million. Clothing and footwear expenditure followed, falling by 10.4 percent to SR688.2 million, while recreation and culture saw a 9.3 percent decrease, totaling SR229.4 million.
The smallest expenditure drop was in spending on construction and building material and gas stations, down by 1.7 percent each to SR330.1 million and SR929.7 million, respectively.
The health sector declined by 4.8 percent to SR790.1 million, while public utilities dropped 4.3 percent to SR47 million.
Electronics followed the trend, dropping 4.5 percent to SR1653.8 million, and furniture edging down by 3.7 percent to SR261.8 million.
The telecommunication sector dropped by 5.5 percent in transaction value to SR98.3 million. Food and beverage spending decreased by 4.7 percent to SR1.8 billion, accounting for the largest share of the week’s POS.
Restaurants and cafes accounted for the second-biggest share at SR1.7 billion, followed by miscellaneous goods and services at SR1.5 billion.
The top three categories accounted for 41.1 percent of the week’s total spending, amounting to SR5 billion.
Geographically, Riyadh dominated POS transactions, with expenditure in the capital reaching SR4.5 billion — a 3.4 percent decrease from the previous week.
Jeddah followed with a 7 percent dip to SR1.7 billion, while Dammam ranked third, down 5.7 percent to SR640.5 million.
Makkah saw the biggest decrease, inching down 20.6 percent to SR393.3 million, followed by Abha with a 9.7 percent downtick to SR153.5 million.
In transaction volume, Hail recorded 3.7 million deals, down 2 percent, while Tabuk reached 4.7 million transactions, up by 0.2 percent.
Oil Updates — crude gains as reports Israel may attack Iran raise supply worries
- US intelligence suggests Israel plans to strike Iran, CNN says
- US-Iran nuclear talks show little progress, impacting oil market
SINGAPORE: Oil prices gained more than 1 percent on Wednesday after reports of Israel preparing a strike on Iranian nuclear facilities raised fears that a conflict could upset supply availability in the key Middle East producing region.
Brent futures for July rose 68 cents, or 1.04 percent, to $66.06 a barrel, by 9:30 a.m. Saudi time. US West Texas Intermediate crude futures for July climbed 70 cents, or 1.1 percent, to $62.73.
New intelligence obtained by the US suggests that Israel is preparing to strike Iranian nuclear facilities, CNN reported on Tuesday, citing multiple US officials familiar with the matter.
It was not clear whether Israeli leaders have made a final decision, CNN added, citing the officials.
“Such an escalation would not only put Iranian supply at risk, but also in large parts of the broader region,” said ING commodities strategists on Wednesday.
Iran is the third-largest producer among the members of the Organization of the Petroleum Exporting Countries and an Israeli attack could upset flows from the country.
There are also concerns Iran could retaliate by blocking oil tanker flows through the Strait of Hormuz choke point in the Gulf, through which Saudi Arabia, Kuwait, Iraq and the UAE export crude oil and fuel.
The US and Iran have held several rounds of talks this year over Iran’s nuclear program, with US President Donald Trump reviving a campaign of stronger sanctions on Iranian crude exports to compel them to give up their nuclear aspirations.
Despite the discussions, US officials and the Iranian Supreme Leader Ayatollah Ali Khamenei made comments on Tuesday indicating both sides remain far from a resolution.
“There are indirect nuclear talks between the US and Iran, which, if successful, could give the market further upside. However, these talks appear to be running out of steam,” the ING analysts said.
Still, there were some signs of improving crude supply. US crude oil stocks rose last week while gasoline and distillate inventories fell, market sources said, citing American Petroleum Institute figures on Tuesday.
Crude stocks in the US, the world’s biggest oil consumer, rose by 2.5 million barrels in the week ended May 16, the sources said on condition of anonymity.
Investors are looking ahead to government US oil stock data from the Energy Information Administration later on Wednesday.
Also, Kazakhstan’s oil production has risen by 2 percent in May, an industry source said on Tuesday, an increase that defies pressure from OPEC+ on the country to reduce its output.
Saudi Arabia surpasses $1bn sukuk milestone with May issuance
RIYADH: Saudi Arabia’s National Debt Management Center has surpassed the $1 billion threshold in its latest sukuk issuance, raising SR4.08 billion ($1.08 billion) in May through riyal-denominated offerings.
This marks a 9.09 percent increase from April and reflects a significant 54.5 percent rise compared to March, when SR2.64 billion was raised.
The May issuance continues the Kingdom’s strong momentum in the domestic debt market, following SR3.72 billion raised in January and SR3.07 billion in February. The consistent monthly issuances highlight growing investor interest in Shariah-compliant fixed-income instruments, as global financial markets adjust to a higher interest rate environment.
Sukuk, the Islamic equivalent of bonds, are structured to comply with Shariah principles, which prohibit interest-based transactions.
Instead, investors receive returns derived from partial ownership in tangible assets or investment activities, aligning with Islamic finance ethics.
According to the NDMC, the May offering was divided into four tranches. The first tranche amounted to SR489 million and is set to mature in 2029. The second was valued at SR1.004 billion and will mature in 2032. The third tranche, totaling SR1.28 billion, is due in 2036, while the largest portion of the issuance, worth SR1.3 billion, will mature in 2039.
Saudi Arabia’s debt market has seen rapid growth in recent years, as domestic and international investors seek diversification and stable returns. A report released in April by the Kuwait Financial Center, also known as Markaz, noted that Saudi Arabia led the Gulf Cooperation Council’s debt market in the first quarter of 2025. The Kingdom accounted for 60.2 percent of all primary debt issuances in the region, raising $31.01 billion across 41 offerings.
In a broader outlook, S&P Global highlighted Saudi Arabia’s expanding non-oil economy and robust sukuk activity as key drivers of growth for the global Islamic finance sector.
The credit rating agency forecast global sukuk issuance could reach between $190 billion and $200 billion in 2025, with foreign-currency issuances potentially totaling up to $80 billion, assuming stable market conditions.
Furthermore, a December 2024 report by Kamco Invest projected that Saudi Arabia will lead the GCC in bond maturities over the next five years. Between 2025 and 2029, approximately $168 billion in Saudi bonds are expected to mature, underscoring the Kingdom’s dominant position in the region’s debt landscape.
