SYDNEY/SINGAPORE: Oil prices fell by more than 1 percent on Friday and were on track for their biggest monthly fall since November as trade conflicts spread and US crude output returned to record levels.
Front-month Brent crude futures, the international benchmark for oil prices, were at $65.97 at 0639 GMT, down by 90 cents, or 1.4 percent, from last session’s close.
US West Texas Intermediate (WTI) crude futures were at $55.92 per barrel, down 67 cents, or 1.2 percent, from their last settlement. WTI earlier marked its lowest since March 8 at $55.66 a barrel.
The drops mean that crude oil futures are on track for their biggest monthly loss since last November.
US President Donald Trump ramped up trade tensions globally by vowing to slap tariffs on all goods from Mexico, firing up fears over economic growth and appetite for oil.
The Mexico trade dispute adds to a trade war between the United States and China, which many analysts expect to trigger a recession.
“All is not well with the economic world, at least according to bond and commodity traders,” Michael McCarthy, chief market strategist at futures brokerage CMC Markets in Australia, wrote in a note published on Friday.
“These (price) moves signal deteriorating sentiment about the outlook for global growth,” he said.
Crude prices have also been under pressure from a much smaller-than expected decline in US stockpiles and US crude oil production’s return to its record 12.3 million barrels per day.
The US Energy Information Administration (EIA) said US crude stocks fell by around 300,000 barrels last week, to 476.49 million barrels
That was much less than the 900,000-barrel decline analysts forecast in a Reuters poll and well below the 5.3 million-barrel drawdown the American Petroleum Institute (API) reported on Wednesday.
US investment bank Jefferies said on Friday that Brent had been falling “on the US-China trade war saga and US inventory builds with this week’s draw too small to impress the market.”
Meanwhile, top oil exporter Saudi Arabia has raised production in May, a Reuters survey found, but not by enough to compensate for lower Iranian exports which collapsed after the United States tightened the screws on Tehran.
Washington will sanction any country which buys oil from Iran after the expiration of waivers on May 2, US Special Representative for Iran Brian Hook said on Thursday.
Oil drops 1%, set for biggest monthly fall since November as trade wars spreads
Oil drops 1%, set for biggest monthly fall since November as trade wars spreads
- US President Donald Trump ramped up trade tensions globally by vowing to slap tariffs on all goods from Mexico
- Crude prices have also been under pressure from a much smaller-than expected decline in US stockpiles
ACWA Power completes refinancing of Rabigh 3 Independent Water Project
RIYADH: Saudi utility giant ACWA Power has completed the refinancing of the Rabigh 3 Independent Water Project, located in the western region of the Kingdom.
Rabigh 3 is a seawater desalination plant with a capacity of 600,000 cubic meters of potable water per day, using reverse osmosis technology.
In a press statement, the Tadawul-listed company said the refinancing was executed through a capital-markets-led approach, anchored by the issuance of a long-term senior secured project bond.
The refinancing was anchored by investment firm KKR as the largest lender, with participation from other investors including Barings, Hong Kong Mortgage Corp., and Clifford Capital, as well as Sumitomo Mitsui Trust Bank, and SBI Shinsei Bank. There was also regional support from Riyadh Bank and Abu Dhabi Commercial Bank.
“The transaction highlights ACWA Power’s continued innovation in infrastructure financing, combining capital-markets instruments with strong project-level credit and global institutional participation,” said Marco Arcelli, the company’s CEO.
He added: “By meeting international rating agencies’ and debt investors’ expectations, ACWA Power has reinforced the bankability of large-scale desalination projects and expanded access to long-term funding for essential infrastructure.”
Arcelli also said the refinancing supports the company’s ambition to continue providing more than half of Saudi Arabia’s desalinated water capacity.
The new transaction replaces the project’s previous debt facility with a diversified financing structure that broadens the investor base and enhances long-term funding resilience.
The statement added that the refinancing underscores ACWA Power’s ability to structure complex financings that meet the requirements of global institutional investors while aligning with international sustainability standards.
“Rabigh 3 IWP is a cornerstone asset for water security in the Kingdom, and the strong participation from international investors reflects its quality, reliability, and long-term value,” said Abdulhameed Al-Muhaidib, chief financial officer at ACWA Power.
He added: “This transaction demonstrates ACWA Power’s commitment to responsible finance, sustainable water infrastructure, and long-term environmental stewardship. We’re very proud to issue our first-ever blue bond that attracts new international investors to our Saudi fleet.”
The refinancing marks ACWA Power’s first alignment with the International Finance Corporation’s Blue Finance Guidelines, reinforcing the plant’s strong operational performance while supporting Saudi Arabia’s Vision 2030 infrastructure goals.
