SINGAPORE: Brent oil prices hit $71 per barrel on Thursday for the first time since 2014 as the dollar continued to weaken and crude inventories in the United States fell for a 10th straight week amid ongoing supply cutbacks by OPEC and top producer Russia.
Brent crude futures, the international benchmark for oil prices, hit a session high of $71.05 per barrel — the highest since early December 2014 — before dipping back to $70.99 by 0440 GMT. That was still up 46 cents, or 0.7 percent from the last close.
US West Texas Intermediate (WTI) crude futures climbed to $66.35 per barrel, also the highest level since early December 2014, before dipping to $66.26. That was still up 1 percent from the last settlement.
Both crude benchmarks have risen by almost 60 percent since the middle of last year.
Price have been supported by supply restrictions led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia, the world’s biggest oil producer, which started last year and are set to last throughout 2018.
“That (the producer cuts), the US-dollar fall, along with another inventory draw combined to drive (crude) up,” said Greg McKenna, chief market strategist at futures brokerage AxiTrader.
US crude inventories fell 1.1 million barrels in the week to January 19, to 411.58 million barrels, the Energy Information Administration (EIA) said on Wednesday.
That is the lowest seasonal level since 2015 and below the five-year average of about 420 million barrels.
In foreign exchange markets, the US dollar hit its lowest level since December 2014 against a basket of other leading currencies.
A weakening dollar often results in financial traders taking investments out of currency markets and into commodity futures like crude.
Fereidun Fesheraki, chairman of consultancy FACTS Global Energy, said that oil prices could rise further still.
“The market is so tight... The problem with this environment is that if you have something in say, Libya, and production goes down by 500,000 barrels (per day)... it (Brent) can easily go to $75 by May,” he said.
Analysts said that rising oil prices would likely start to have an inflationary effect.
“Higher oil prices will eventually be reflected in higher consumer prices as the costs of transport of most goods will rise,” said William O’Loughlin, investment analyst at Australia’s Rivkin Securities.
Looming over the generally bullish oil market has been US oil production, which is edging ever more closely toward 10 million barrels per day (bpd), rising to 9.88 million bpd last week.
US output has grown by more than 17 percent since mid-2016, and is now on par with that of top exporter Saudi Arabia.
Only Russia produces more, averaging 10.98 million bpd in 2017.
Brent oil hits $71 for the first time since 2014 as dollar drops, US stocks decline
Brent oil hits $71 for the first time since 2014 as dollar drops, US stocks decline
Saudi Maaden reports 156% profit surge to $2bn on strong commodity prices, record production
RIYADH: Saudi mining and metals company Maaden has reported a 156 percent jump in its net profit attributable to shareholders for 2025, driven by higher commodity prices, record production volumes, and a one-off bargain purchase gain.
The state-backed giant posted a net profit of SR7.35 billion ($1.95 billion) for the full year 2025, an increase from SR2.87 billion in the previous year. The firm’s revenue surged by 19 percent to SR38.58 billion, up from SR32.55 billion in 2024.
This comes as Saudi Arabia steps up efforts to expand its mining sector as a pillar of economic diversification, encouraging international participation and private investment to unlock the Kingdom’s estimated $2.5 trillion in untapped mineral resources under Vision 2030.
In a statement on Tadawul, the company said: “Performance was led by record phosphate production, near record aluminum production, an increase in all three of Maaden’s main output commodity prices.”
The performance was also fueled by a 60 percent increase in gross profit, which reached SR14.79 billion. In its annual results announcement, Maaden attributed the top-line growth to “higher commodity market prices for phosphate, aluminum and gold business units,” as well as increased sales volumes in its phosphate and aluminum segments. This was partially offset by slightly lower sales volume in the gold unit.
Maaden’s CEO, Bob Wilt, hailed 2025 as a transformative year for the company, marked by strategic growth and operational excellence. “This was a great year for Maaden’s strategic growth. We delivered strong financial results and sustained operational excellence across the business,” he said in a statement.
“This was driven by growth in production across all businesses, including record-breaking DAP (di-ammonium phosphatevolumes), disciplined cost control across and a clear commitment to our role as a cornerstone of the Saudi economy,” Wilt added.
Profitability was further bolstered by an increased share of net profit from joint ventures and an associate. This included a one-off bargain purchase gain of SR768 million related to Maaden’s investment in Aluminium Bahrain B.S.C. The company also benefited from lower finance costs.
The fourth quarter of 2025 was strong, with Maaden swinging to a net profit of SR1.67 billion, compared to a loss of SR106 million in the same period of the prior year. Quarterly revenue rose 7 percent to SR10.64 billion.
The firm achieved record production of di-ammonium phosphate, reaching 6.72 million tonnes for the year, a 9 percent increase. Aluminum production remained near-record levels, while the company added a net 7.8 million ounces to its reportable gold mineral resources through discovery and resource development.
The phosphate division saw sales jump 17 percent to SR20.77 billion, with the earnings before interest, taxes, depreciation, and amortization margin expanding to 47 percent. The aluminum business reported a 9 percent increase in sales to SR10.99 billion, with EBITDA more than doubling in the fourth quarter.
Looking ahead, Wilt emphasized that the pace of growth will accelerate as the company advances key initiatives, including the Phosphate 3 Phase 1 and Ar Rjum projects, which remain on budget and schedule. Maaden has also secured a gas supply for its future Phosphate 4 project.
“This pace of growth will only accelerate. Not only as we advance projects and increase the scale of our exploration program, but as we continue to grow production and implement technology that will further modernize, streamline and unlock value,” Wilt added.
Earnings per share for the year rose sharply to SR1.91, up from SR0.78 in 2024. Total shareholders’ equity increased by 18.7 percent to SR61.59 billion.
