LONDON: OPEC told the International Monetary Fund’s steering committee on Thursday that the surge in oil prices was largely due to the Ukraine crisis, in the latest signal that the producer group would not take further action to add supply.
In a statement to the International Monetary and Financial Committee, or IMFC, seen by Reuters, OPEC said the price of global benchmark Brent crude had averaged near $98 a barrel in the first quarter, up about $18 from the last three months of 2021.
“Oil prices have been on the rise, particularly in March this year ... mainly due to the escalating geopolitical tensions in Eastern Europe and concerns this might result in large oil supply shortages, amid trade dislocations,” OPEC told the IMFC.
The IMFC is part of the spring meetings of the International Monetary Fund—IMF—and the World Bank’s Board of Governors.
OPEC, which took part in a meeting of the IMFC last year, has been resisting calls by the United States and European Union to pump more oil to cool prices, which reached a 14-year peak above $139 last month after Washington and Brussels imposed sanctions on Moscow over its invasion of Ukraine.
OPEC+, which consists of OPEC and other producers including Russia, will raise output by about 432,000 barrels per day in May, as part of a gradual unwinding of output cuts made during the worst of the COVID-19 pandemic.
OPEC said that OPEC+ had shown its commitment to ensuring that oil supply and demand fundamentals were in balance during the Ukraine crisis to support the global economy.
OPEC also highlighted the negative short-term impact of the Ukraine crisis and ongoing pandemic, adding: “The strong rise in commodity prices, in combination with ongoing supply chain bottlenecks and COVID-19-related logistical constraints are fueling already high global inflation.”
OPEC tells IMF that oil price rally mainly due to geopolitics
https://arab.news/pw2pb
OPEC tells IMF that oil price rally mainly due to geopolitics
Oil Updates — prices ease as traders assess US tariffs, OPEC+ output hike
- OPEC+ to raise production by 548,000 barrels per day for August
- Trump’s tariffs create uncertainty about global economy
SINGAPORE: Oil prices retreated on Tuesday after rising almost 2 percent in the previous session as investors assessed new developments on US tariffs and a higher-than-expected OPEC+ output hike for August.
Brent crude futures dipped 22 cents, or 0.3 percent, at $69.36 a barrel by 8:30 a.m. Saudi time. US West Texas Intermediate crude fell 27 cents, or 0.4 percent, at $67.66 a barrel.
US President Donald Trump on Monday began telling trade partners, which included major suppliers South Korea and Japan as well as smaller US exporters like Serbia, Thailand and Tunisia, that sharply higher US tariffs will start Aug. 1, though he later said that deadline was not 100 percent firm.
Trump’s tariffs have prompted uncertainty across the market and concerns they could have a negative effect on the global economy and, consequently, on oil demand.
However, there are some signs current demand remains strong, particularly in the US, the world’s biggest oil consumer, which has supported prices.
A record 72.2 million Americans were projected to travel more than 50 miles (80 km) for Fourth of July vacations, data from travel group AAA showed last week.
Investors were bullish heading into the holiday period with data from the US Commodity Futures Trading Commission released on Monday showing money managers raised their net-long futures and options positions in crude oil contracts in the week up to July 1.
“Prompt demand remains healthy on the back of seasonal factors. The question remains if forward demand will maintain to absorb the larger-than-expected supply from OPEC+,” said Emril Jamil, a senior analyst at LSEG Oil Research.
Other signs of higher demand were seen in India, the world’s third-largest oil consumer, with government data reporting fuel consumption in June was 1.9 percent higher than a year ago.
On Saturday, the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, agreed to raise production by 548,000 barrels per day in August, exceeding the 411,000-bpd hikes they made for the prior three months.
The decision removes nearly all of the 2.2 million-bpd of voluntary cuts the group enacted. They are set to approve an increase of about 550,000 bpd for September when it meets on Aug. 3, according to five sources familiar with the matter, which would unwind all of the cuts.
However, actual output increases have been smaller than the announced levels so far and most of the supply has been from Saudi Arabia, analysts said.
Saudi Exchange unveils new instrument to trade global shares locally
RIYADH: Saudi Arabia has introduced a new financial instrument that gives investors in the Kingdom direct access to shares of foreign companies listed on global markets.
The Saudi Exchange on July 7 launched its first Saudi Depositary Receipts, allowing international equities to be traded locally in Saudi riyals.
The move marks the debut of depositary receipts in the Kingdom’s financial market and is seen as a strategic leap toward reinforcing Riyadh’s position as a global financial center, in line with the Financial Sector Development Program and broader Vision 2030 ambitions.
In a release, Tadawul stated: “SDRs are highly liquid and flexible, enabling issuers to transfer securities between the Saudi financial market and foreign markets by converting the SDRs into shares in the foreign market, thus enabling the company’s shares to be traded on two different financial markets.”
It described the launch as “a pivotal step toward consolidating the Kingdom’s position as a global financial center.”
This development is not merely a technical upgrade; it reflects a broader strategic effort to modernize and globalize Saudi Arabia’s capital markets.
Since the launch of Tadawul Group’s post-initial public offering transformation, the Kingdom has introduced a series of reforms aimed at enhancing market sophistication and accessibility.
These include inclusion in global emerging market indices such as MSCI, FTSE, and S&P Dow Jones; the rollout of derivatives trading; the simplification of Qualified Foreign Investor frameworks; and the acceleration of sector-diverse IPO pipelines.
The introduction of SDRs builds on this momentum by bridging local and international investment landscapes — effectively bringing Wall Street- or London-listed equities to Riyadh’s trading screens.
What are SDRs and why do they matter?
A depositary receipt is a financial instrument that represents shares in a foreign company but is traded on a local exchange in the domestic currency.
In the case of SDRs, this means investors in the Kingdom can gain exposure to foreign firms — such as global technology giants, industrial leaders, or energy companies — without needing to open a brokerage account abroad.
Unlike traditional cross-border investing, SDRs enable seamless trading, clearing, and settlement through Tadawul, all denominated in Saudi riyals.
This makes it easier for local investors to access global markets. They can buy international shares through a familiar domestic platform and trade using local brokers. It also helps them diversify their portfolios without dealing with foreign accounts. Most importantly, they remain under the protection of Saudi Arabia’s legal and regulatory framework.
Closing Bell: Saudi stocks end higher on Monday as TASI rises 0.26%
RIYADH: Saudi Arabia’s Tadawul All Share Index advanced 0.26 percent, or 29.73 points, to close at 11,345.46 on Monday.
The total trading volume reached SR5.5 billion ($1.4 billion), with 132 companies experiencing growth and 116 declining.
The MSCI Tadawul 30 Index edged up 0.21 percent to 1,454.38, while the parallel market Nomu posted a stronger performance, gaining 0.75 percent to finish at 27,462.84.
Among the top performers, Tourism Enterprise Co. surged 9.64 percent to SR0.91.
Ayyan Investment Co. rose 4.28 percent to SR14.38, while Sumou Real Estate Co. gained 4.18 percent to close at SR42.82.
Buruj Cooperative Insurance Co. advanced 4.11 percent to SR18.99, and Tamkeen Human Resources Co. climbed 3.71 percent to end at SR55.90.
On the losing side, Miahona Co. recorded the steepest decline, falling 3.35 percent to SR25.98.
Umm Al-Qura Cement Co. dropped 3.21 percent to SR16.59. Saudi Kayan Petrochemical Co. slipped 2.31 percent to SR5.07.
Almarai Co. decreased 2.05 percent to SR50.15, and Halwani Bros. Co. fell 2.04 percent to SR45.20.
On the announcement front, Riyad Bank stated that it had commenced the offer of its US dollar-denominated Tier 2 trust certificates under its international trust certificate issuance program.
The issuance will be conducted through a special-purpose vehicle and is targeted at eligible investors in the Kingdom and internationally.
The certificates will have a minimum subscription of $200,000, with increments of $1,000 in excess thereof, and a par value of $200,000. They will have a maturity of 10 years, callable after five years.
The amount and terms of the offer will be determined subject to market conditions.
Riyad Bank has mandated DBS Bank, HSBC, and J.P. Morgan Securities, as well as Merrill Lynch, Mizuho, Riyad Capital, SMBC, and Standard Chartered as joint lead managers.
The certificates will be listed on the London Stock Exchange’s International Securities Market. Riyad Bank shares closed at SR28.90, down 0.48 percent.
Alinma Bank announced its intention to issue US dollar-denominated certificates under its own trust certificate issuance program, as per a board resolution dated May 13, which delegated authority to its chief executive officer.
The offer is also expected to be conducted through a special-purpose vehicle and directed at eligible investors in Saudi Arabia and abroad.
The issuance will be subject to regulatory approvals and compliance with applicable laws and regulations.
Alinma Bank has appointed Abu Dhabi Islamic Bank, Alinma Capital, and Dubai Islamic Bank, as well as Emirates NBD, Goldman Sachs, J.P. Morgan, and Standard Chartered as joint lead managers.
The amount and terms of the offer will be determined by market conditions. Alinma Bank shares ended the session at SR27.20, falling 0.87 percent.
Saudi Arabia’s King Salman Airport adopts biodiesel in construction to support net-zero goals
- Biofuel Co. to supply B100 biodiesel as a direct alternative to fossil diesel
- It will help reduce the project’s carbon footprint
JEDDAH: Saudi Arabia’s upcoming King Salman International Airport in Riyadh will curb construction-related emissions by using biodiesel, aligning with the Kingdom’s broader net-zero ambitions.
The developer of the flagship project, backed by the Public Investment Fund, has signed a memorandum of understanding with Biofuel Co. Ltd. to supply B100 biodiesel as a direct alternative to fossil diesel during the construction phase, the Saudi Press Agency reported.
The agreement supports Saudi Arabia’s environmental goals, including its pledge to achieve net-zero emissions by 2060 under the Saudi Green Initiative. It also reflects the Kingdom’s efforts to promote cleaner energy use across major infrastructure projects.
In an exclusive comment to Arab News, Abdullah Al-Otaibi, CEO of Biofuel, said the MoU aims to facilitate the use of biodiesel throughout the airport’s construction phase.
“This step reflects Biofuel Co.’s commitment to sustainability and innovation as we work to establish a new benchmark for smart infrastructure projects,” he said.
Al-Otaibi added that the achievement would not have been possible without the unwavering support of the Kingdom’s leadership, which has paved the way for realizing the company’s ambitions under Saudi Vision 2030.
Under the agreement, Biofuel Co., the country’s first and only producer of standard-compliant biofuel, will supply B100 biodiesel to support construction activities and help reduce the project’s carbon footprint in line with national climate goals.
Citing Marco Mejia, acting CEO of King Salman International Airport Development Co., the SPA report said that “the cooperation represents a practical step toward building an airport that adheres to the highest standards of environmental sustainability and reflects the adoption of alternative energy solutions that keep pace with global trends in reducing emissions.”
It added: “He highlighted the importance of qualitative partnerships to achieve these goals, in conjunction with the objectives of the Kingdom’s Vision 2030 toward a more sustainable future.”
Announced in 2022, King Salman International Airport is a major infrastructure project aimed at positioning Riyadh as a global transportation and logistics hub connecting East and West. The development spans 57 sq. km and will feature six parallel runways and 12 sq. km of support facilities, including residential, commercial, recreational, and logistics zones.
The airport is designed to run on renewable energy and targets LEED Platinum certification. It is expected to accommodate up to 100 million passengers annually by 2030 and 185 million by 2050, while handling 3.5 million tonnes of cargo each year.
The project aligns with Saudi Arabia’s Vision 2030 goals to diversify the economy by enhancing trade, tourism, and connectivity. It is projected to contribute SR27 billion ($7.2 billion) to non-oil gross domestic product and create over 100,000 jobs by mid-century.
UAE-Cuba economic ties poised for growth as first joint committee meets in Dubai
JEDDAH: Trade and investment relations between the UAE and Cuba are expected to deepen following the inaugural session of the Joint Economic Committee, which convened in Dubai to boost cooperation across multiple sectors, including biotechnology, renewable energy, and tourism.
Organized under the framework of the trade, economic, and technical cooperation agreement signed earlier by both nations, the session marked a significant step forward in advancing bilateral economic engagement.
The committee meeting was co-chaired by Abdullah Ahmed Al-Saleh, undersecretary of the UAE Ministry of Economy, and Carlos Luis Jorge Mendez, Cuba’s first deputy minister of foreign trade and foreign investment. According to the UAE’s official news agency WAM, discussions centered on enhancing collaboration in agriculture, food security, infrastructure, transportation, logistics, cultural industries, healthcare, and pharmaceuticals.
Non-oil trade between the two countries has been steadily rising. It reached over $39.1 million in 2024—up more than 2 percent from the previous year and 46.4 percent compared to 2022, WAM reported. The agency added that trade during the first quarter of 2025 rose by 5.6 percent compared to the same period in 2024, and by over 25 percent from the fourth quarter of that year. More than 825 Cuban brands are currently operating in the UAE market.
According to WAM, Al-Saleh said that bilateral ties continue to advance steadily, particularly in the economic and commercial spheres, adding: “This reflects the visionary leadership of both nations in fostering growth and prosperity and in serving their shared interests.”
He continued: “The first session of the Joint Economic Committee between the two countries marks a key milestone in enhancing economic and investment relations in the coming period. It expands areas of cooperation in priority sectors, strengthens engagement between the Emirati and Cuban business communities, and explores promising market opportunities — contributing to the national goals of the ‘We the UAE 2031’ vision.”
Attended by the ambassadors of both countries, the session concluded with an agreement to establish a joint framework that will oversee implementation of the committee’s outcomes, ensuring the continuity of economic cooperation and shared growth.
According to WAM, both sides also agreed to coordinate business forums and economic events, exchange trade delegations, and facilitate increased trade and investment flows between Emirati and Cuban companies. The agency added that the two parties proposed organizing joint meetings, seminars, and workshops involving investors, promotion agencies, and financial institutions to attract investment in high-priority sectors.
“They stressed the importance of advancing economic cooperation through new partnerships in entrepreneurship and the startup ecosystem, with the aim of accelerating SME (small and medium-sized enterprise) growth, expanding investments, supporting exports to international markets, and increasing their contribution to the national GDPs (gross domestic products) of both countries,” WAM added.
Food security and agriculture were also top priorities, with both sides expressing interest in boosting trade in food commodities and agricultural products. They also committed to working together on sustainable farming, food processing, and agricultural technology.
Tourism was highlighted as another strategic sector for collaboration. Both nations agreed to co-host exhibitions, events, and conferences to showcase their tourist and heritage destinations. They also discussed sharing expertise and data on tourism resources, statistics, and digital innovations.
The committee’s formation follows recent government restructuring in the UAE. Just over two weeks ago, Sheikh Mohammed bin Rashid Al-Maktoum, vice president and prime minister of the UAE and ruler of Dubai, announced the creation of a Ministry of Foreign Trade, led by Thani Al-Zeyoudi. The Ministry of Economy was also renamed the Ministry of Economy and Tourism, now headed by Abdullah bin Touq Al-Marri.
