LONDON: Oil steadied on Monday, reducing early losses after Israeli Prime Minister Benjamin Netanyahu said he would make an announcement regarding the nuclear deal with Iran, later on today.
Brent prices have gained around 6 percent this month, as a result of the expectations of the United States planning to renew sanctions against Iran, which is the third-largest producer within OPEC.
The decision of whether to restore the sanctions on Iran that were lifted after an agreement over its disputed nuclear program will be made by US President Donald Trump on May 12.
Brent crude futures were last down 2 cents at $74.62 a barrel by 1422 GMT, up from a session low of $73.47.
US West Texas Intermediate (WTI) futures were last down 9 cents on the day at $68.01 a barrel, having recovered from an intraday low of $67.17.
Netanyahu will make a televised announcement at 1700 GMT in what his office said would be a “significant development” regarding the nuclear agreement with Iran.
Israel has long opposed the agreement. Washington’s major European allies have urged the Trump administration not to abandon it and argue that Iran is abiding by its terms.
The price of oil has risen to its highest since late 2014 this month, driven by concern over the potential for disruption to Iranian crude flows, but analysts say the degree of uncertainty hanging over the deal means the market is extremely sensitive to any developments.
“Until May 12, you’re not going to see any significant downard correction,” PVM Oil Associates strategist Tamas Varga said. “Reimposing US sanctions is not a foregone conclusion just yet.”
Fresh sanctions on Iran could result in a reduction of the country’s oil exports, which would strain global supplies even more, especially given the discipline of the Organization of the Petroleum Exporting Countries (OPEC) and their partners in sticking to an agreement to limit output.
“Things are not quite the same as in the previous decade, when Iran was regarded as a menace and a threat. Over the last three-four years Iran has behaved itself — according to everybody,” said Sukrit Vijayakar, director of energy consultancy Trifecta.
Oil fell earlier in the day after a weekly report showed US drillers added five oil rigs in the week to April 27, bringing the total count to 825, the highest since March 2015, General Electric’s Baker Hughes energy services firm said.
Crude production in the United States
Oil pares losses as Israel lines up Iran announcement
Oil pares losses as Israel lines up Iran announcement
Arab food and beverage sector draws $22bn in foreign investment over 2 decades: Dhaman
JEDDAH: Foreign investors committed about $22 billion to the Arab region’s food and beverage sector over the past two decades, backing 516 projects that generated roughly 93,000 jobs, according to a new sectoral report.
In its third food and beverage industry study for 2025, the Arab Investment and Export Credit Guarantee Corp., known as Dhaman, said the bulk of investment flowed to a handful of markets. Egypt, Saudi Arabia, the UAE, Morocco and Qatar attracted 421 projects — about 82 percent of the total — with capital expenditure exceeding $17 billion, or nearly four-fifths of overall investment.
Projects in those five countries accounted for around 71,000 jobs, representing 76 percent of total employment created by foreign direct investment in the sector over the 2003–2024 period, the report said, according to figures carried by the Kuwait News Agency.
“The US has been the region's top food and beverage investor over the past 22 years with 74 projects or 14 projects of the total, and Capex of approximately $4 billion or 18 percent of the total, creating more than 14,000 jobs,” KUNA reported.
Investment was also concentrated among a small group of multinational players. The sector’s top 10 foreign investors accounted for roughly 15 percent of projects, 32 percent of capital expenditure and 29 percent of newly created jobs.
Swiss food group Nestlé led in project count with 14 initiatives, while Ukrainian agribusiness firm NIBULON topped capital spending and job creation, investing $2 billion and generating around 6,000 jobs.
At the inter-Arab investment level, the report noted that 12 Arab countries invested in 108 projects, accounting for about 21 percent of total FDI projects in the sector over the past 22 years. These initiatives, carried out by 65 companies, involved $6.5 billion in capital expenditure, representing 30 percent of total FDI, and generated nearly 28,000 jobs.
The UAE led inter-Arab investments, accounting for 45 percent of total projects and 58 percent of total capital expenditure, the report added, according to KUNA.
The report also noted that the UAE, Saudi Arabia, Egypt, and Qatar topped the Arab ranking as the most attractive countries for investment in the sector in 2024, followed by Oman, Bahrain, Algeria, Morocco, and Kuwait.
Looking ahead, Dhaman expects consumer demand to continue rising. Food and non-alcoholic beverage sales across 16 Arab countries are projected to increase 8.6 percent to more than $430 billion by the end of 2025, equivalent to 4.2 percent of global sales, before exceeding $560 billion by 2029.
Sales are expected to remain highly concentrated geographically, with Egypt, Saudi Arabia, Algeria, the UAE and Iraq accounting for about 77 percent of the regional total. By product category, meat and poultry are forecast to lead with sales of about $106 billion, followed by cereals, pasta and baked goods at roughly $63 billion.
Average annual per capita spending on food and non-alcoholic beverages in the region is projected to rise 7.2 percent to more than $1,845 by the end of 2025, approaching the global average, and to reach about $2,255 by 2029. Household spending on these products is expected to represent 25.8 percent of total expenditure in 13 Arab countries, above the global average of 24.2 percent.
Arab external trade in food and beverages grew more than 15 percent in 2024 to $195 billion, with exports rising 18 percent to $56 billion and imports increasing 14 percent to $139 billion. Brazil was the largest foreign supplier to the region, exporting $16.5 billion worth of products, while Saudi Arabia ranked as the top Arab exporter at $6.6 billion.
