ABU DHABI: OPEC and non-OPEC producers will probably extend a deal to limit crude supply but are unlikely to deepen cuts, Oman’s energy minister said on Monday, as the United Arab Emirates said it was not worried about long-term oil demand growth.
The Organization of the Exporting Producing Countries, Russia and other oil producer allies — a group known as OPEC+ — have since January implemented an agreement to cut output by 1.2 million barrels per day until March 2020 in an attempt to boost prices. The group meets in December.
“Extension probably, cuts I think unlikely unless things happen in the next couple of weeks,” the energy minister of non-OPEC Oman, Mohammed bin Hamad Al-Rumhy, told reporters at an energy conference in the United Arab Emirates capital Abu Dhabi.
He said oil demand was improving as trade tensions soften and that Oman was satisfied with current oil prices, which fell more than 1 percent on Monday amid concerns over the prospects of a trade deal between the United States and China.
“All indications show things are getting better, the fear of recession, the signs of agreement between the US and China is positive,” Rumhy said.
Suhail Al-Mazrouei, the energy minister of the UAE, the third largest producer in OPEC after Saudi Arabia and Iraq, told the conference that oil demand growth was “reasonable.”
In its 2019 World Oil Outlook, the producer group said it would supply a diminishing amount of oil in the next five years as output of US shale and other rival sources expanded, despite a growing appetite for energy fed by global economic expansion.
“No one source or a group of sources will meet growth in demand,” OPEC Secretary-General Mohammad Barkindo said in a panel discussion at the Abu Dhabi conference.
He said the oil industry would have to adapt to future changes in the energy mix as global population growth raises demand outlook.
Rising climate activism in the West and widening use of alternative fuels are putting the strength of long-term oil demand under more scrutiny.
“The greener forms of energy will have a higher pace of growth but conventional oil and gas will also grow. Gas will grow more as there is a demand for cleaner forms,” Mazrouei said.
OPEC+ likely to extend supply curb deal: Oman energy minister
OPEC+ likely to extend supply curb deal: Oman energy minister
- OPEC, Russia and other oil producer allies have since January implemented an agreement to cut output by 1.2 million barrels per day until March 2020
- Oil demand is improving as trade tensions soften and Oman is satisfied with current oil prices
Closing Bell: Saudi main index closes in red at 10,847
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 58.51 points, or 0.54 percent, to close at 10,847.93.
The total trading turnover of the benchmark index was SR3.78 billion ($1 billion), as 73 of the listed stocks advanced, while 187 retreated.
The MSCI Tadawul Index decreased, down 7.09 points or 0.48 percent, to close at 1,472.98.
The Kingdom’s parallel market Nomu lost 178.75 points, or 0.77 percent, to close at 22,916.83. This comes as 30 of the listed stocks advanced, while 37 retreated.
The best-performing stock was the Power and Water Utility Co. for Jubail and Yanbu, with its share price surging by 8.47 percent to SR31.24.
Other top performers included Saudi Paper Manufacturing Co., which saw its share price rise by 6.13 percent to SR53.70, and Jamjoom Pharmaceuticals Factory Co., which saw a 4.58 percent increase to SR137.
On the downside, the worst performer of the day was CHUBB Arabia Cooperative Insurance Co., whose share price fell by 5.14 percent to SR17.53.
Saudi Kayan Petrochemical Co. and Arabian Internet and Communications Services Co. also saw declines, with their shares dropping by 4.87 percent and 4.43 percent to SR4.88 and SR181.40, respectively.
On the announcement front, Saudi Kayan Petrochemical Co. announced its annual financial results for 2025, with sales dropping 3.06 percent year-on-year to SR8.45 billion. The company also recorded a net loss of SR893.86 million.
In a Tadawul statement, the company said the net loss and decline in annual sales were driven by a drop in average selling prices, despite higher sales volumes.
