BEIJING: Oil prices rose and global stock markets fell Wednesday after Iran fired missiles at US bases in Iraq in retaliation for the killing of an Iranian general.
Brent crude futures, the benchmark for international oils, spiked more than $3 per barrel in London before retreating.
Stock markets in London and Frankfurt opened lower and Tokyo’s benchmark fell nearly 2% before recovering some of its losses. Hong Kong and Shanghai also retreated.
“Investors appear to be pricing for an all-out war,” said Jingyi Pan of IG in a report.
The Pentagon said Iran fired more than a dozen missiles at bases in Iraq used by US troops. President Donald Trump tweeted “All is well!” and that casualty and damage assessments were ongoing, adding “So far, so good!”
Iran’s foreign minister described the missile firings as “proportionate measures in self-defense.”
Financial markets have been on edge about possible US-Iranian conflict and disruption of oil supplies since last week’s killing of Gen. Qassem Soleimani by a US drone in Baghdad.
Brent crude was up 78 cents at $69.05. At the start of trading, it spiked $3.48 to $71.75 before retreating.
Benchmark US crude was up 55 cents to $63.25 per barrel in electronic trading on the New York Mercantile Exchange. It earlier jumped $2.95 to $65.65 before settling back.
Higher prices for imported oil could push up inflation in economies including China and India, making it harder for central banks to support growth by easing monetary policy, said Rajiv Biswas of IHS Markit in a report.
In early trading, London’s FTSE 100 lost 0.6% to 7,525.48 and Frankfurt’s DAX shed 0.7% to 13,134.26. France’s CAC 40 lost 0.5% to 5,98049.
On Wall Street, the future for the benchmark Standard & Poor’s 500 index lost 0.2% and that for the Dow Jones Industrial Average was off 0.4%.
On Tuesday, the S&P 500 index lost 0.3% in trading that closed before the Iranian attack. The Dow shed 0.4% and the Nasdaq composite slipped less than 0.1%.
In Asia, Tokyo’s Nikkei 225 index fell 1.6% to 23,204.76 and Hong Kong’s Hang Seng fell 0.9% to 28,087.92.
The Shanghai Composite Index lost 1.2% to 3,066.89 and South Korea’s Kospi retreated 1.1% to 2,151.31.
Sydney’s S&P-ASX 200 shed 0.1% to 6,817.60 and India’s Sensex shed 0.2% to 40,770.06.
Taiwan, New Zealand and Southeast Asian markets also retreated.
Before the latest attack, the rush by investors into safe assets had been abating.
Gold’s momentum eased Tuesday after touching its highest price in nearly seven years.
In currency markets, the dollar was little-changed at 108.43 yen. The euro declined to $1.1139 from $1.1152.
Oil up, stocks down after Iran missile attack on US troops
https://arab.news/r34d2
Oil up, stocks down after Iran missile attack on US troops
- Financial markets have lately been on edge about possible US-Iranian conflict and disruption of oil supplies
- Gold’s momentum eased Tuesday after touching its highest price in nearly seven years
Mideast sets record in renewable energy capacity, Saudi Arabia reaches 2.6 GW: IRENA
RIYADH: Renewable energy capacity in the Middle East soared to a record high in 2023, with the addition of 5.1 gigawatts, marking a 16.6 percent increase from the previous year.
According to the latest data released by the International Renewable Energy Agency, this new addition brought the region’s total renewable energy capacity to 35.54 GW, with Saudi Arabia accounting for 2.68 GW.
The data showed that global green power capacity reached 3,870 GW in 2023, marking a 13.9 percent increase over the previous year. This represents the largest surge in sustainable energy capacity to date, with the addition of 473 GW.
Green sources constituted a record-breaking 86 percent of global power additions, primarily driven by substantial expansions in solar and wind energy.
Solar power alone contributed nearly three-quarters of renewable additions, totaling a record 346 GW, while an additional 116 GW of wind energy was incorporated, the report added.
Francesco La Camera, director general of IRENA, said: “Despite these unprecedented renewable additions in 2023, the world is still falling short of what is required to achieve the goal adopted at COP28 to triple installed renewable power capacity by 2030 to reach 11 TW.”
With one less year to meet the goal, he emphasized that the world now requires additions of approximately 1,050 GW each year for the remainder of this decade to align with the World Energy Transitions Outlook scenario and maintain a trajectory toward limiting global warming to 1.5 degrees Celsius.
The growth of sustainable energy is unevenly distributed globally, with Asia leading the expansion with a 473 GW increase, primarily propelled by China’s 63 percent surge to 297.6 GW. This highlights a notable discrepancy with other regions, particularly developing countries. While Africa saw some growth, it was modest at 4.6 percent, reaching 62 GW.
By the end of 2023, Camera said, renewable energy sources comprised 43 percent of the global installed power capacity.
“Yet, as we draw closer to a world in which renewable energy accounts for half of total capacity, many energy planning questions still need to be addressed to establish renewables as the most significant source of electricity generation - including in the context of grid flexibility and adaptation to variable renewable power,” he added.
ACWA Power signs $800m water purchase agreement with Senegal
RIYADH: Saudi energy giant ACWA Power has signed an SR3 billion ($800 million) agreement with Senegal’s Ministry of Water to develop a desalination plant.
The company, partly owned by the Public Investment Fund, announced the inking of a water purchase agreement for the construction of the facility in Dakar, Senegal in a statement on the Saudi Stock Exchange, Tadawul.
ACWA Power will be responsible for the infrastructure, design and financing as well as construction, operation and maintenance of the Grande Cote seawater desalination plant in the West African country.
The project will have a production capacity of 400,000 cubic meters per day, the statement said.
NEOM CEO lands in top 3 of Forbes’ Real Estate Leaders list
RIYADH: NEOM CEO Nadhmi Al-Nasr has been ranked third in Forbes Middle East’s “Most Impactful Real Estate Leaders” list, underlining the Kingdom's prominence in the sector.
The giga-project chief was placed beneath Mohamed Al-Abbar from the UAE-based Emaar Properties, and Talal Al-Dhiyebi from Abu Dhabi-headquartered Aldar Properties.
The Kingdom saw the second most entries on the list, with 23 Saudis landing on the publication’s ranking.
This is a testament to the major investments the nation has made in its real estate sector, a statement from Forbes noted.
“Governments, corporates, and semi-government developers are investing in real estate projects throughout the region, particularly in Saudi Arabia, Egypt, and the UAE. These projects are giving a huge boost to the regional construction sector, which also has a positive outlook over the next few years,” the statement said.
UAE, Japan to develop industrial steam and electricity cogeneration plant in Saudi Arabia
Abu Dhabi National Energy Co., also known as TAQA, together with JERA Co., Inc, Japan’s largest power generation company, announced Thursday that they have entered into a Power and Steam Purchase Agreement with Saudi Aramco Total Refining and Petrochemical Co., or SATORP, a joint venture company owned by Saudi Aramco and TotalEnergies.
According to the Emirates News Agency, they will develop a greenfield industrial steam and electricity cogeneration plant that will produce electricity and steam for the Amiral petrochemical complex to be developed in Jubail in the Eastern Province of Saudi Arabia.
The Amiral petrochemical complex is expected to house one of the largest mixed-load steam crackers in the Arab Gulf region.
The Amiral cogeneration plant will include state-of-the-art power and steam generation systems, gas and water receiving systems, and gas-insulated switchgear interconnections while meeting stringent efficiency standards imposed by the Saudi Energy Efficiency Centre.
The project also provides for the future installation of a carbon dioxide capture plant and is capable of hydrogen cofiring, WAM reported.
The Amiral cogeneration plant will be developed by a special purpose entity owned by TAQA, holding 51 percent, and JERA, holding 49 percent. It will operate on a build, own, and operate basis for 25 years, with the possibility of extension by five years upon mutual agreement.
TAQA and JERA will also undertake the operation and maintenance of the plant through an O&M special purpose entity.
Farid Al Awlaqi, CEO of TAQA Generation, said: “The signing of the offtake agreements for the cogeneration power and steam project at the Amiral petrochemical facility, a key downstream project being developed by two of the world’s leading energy companies, demonstrates the confidence in TAQA’s ability to deliver critical utilities, including power and steam effectively.
Together with our partner JERA, TAQA is looking forward to developing an efficient cogeneration plant that reduces carbon emissions and supports SATORP with its long-term decarbonization program. The agreement will bolster TAQA’s efforts in building on our growth and executing our 2030 goals.”
Steven Winn, chief global strategist of JERA, said: “We will be providing stable, highly efficient, clean and reliable power and steam to our customer SATORP. The Amiral Cogeneration plant will not only enhance the Amiral Complex’s operational efficiency, but also demonstrate our commitment to environmental stewardship and our growth ambitions for sustainable power generation solutions in the Kingdom of Saudi Arabia and the region.”
Saudi media giant SRMG’s revenue grows to $997m
RIYADH: Saudi Research and Media Group’s revenues hit SR3.74 billion ($997 million) in 2023, reflecting a 0.98 percent increase compared to 2022 figures.
According to a Tadawul statement, this increase in sales is primarily attributed to enhanced revenue generated by the publishing and visual and digital content segment, as well as other divisions.
However, the printing and packaging business witnessed a decline in revenues due to several planned projects not being secured.
The total shareholders’ equity for the parent company, after excluding non-controlling interest, as of Dec. 31, 2023, stands at SR3.08 billion, reflecting a 16.26 percent increase compared to the corresponding period a year earlier.
Meanwhile, SRMG’s net profits reached SR559 million by the end of last year, showing a decrease of 13.74 percent compared to the same period in 2022.
The decline was primarily attributed to the drop in revenue of the printing and packaging division, along with the goodwill impairment associated with the same segment, in addition to the operating costs of certain projects.
In January, SRMG, the largest integrated media group from the Middle East and North Africa region, announced the appointment of several new editors-in-chief, deputy editors-in-chief, and assistant editors-in-chief.
This announcement aligned well with SRMG’s digital transformation, growth, and expansion strategy, showcasing the group’s dedication to cultivating the next generation of journalists and media professionals to meet the demands of audiences worldwide.
Moreover, this decision reflected the significant shift in regional media consumption habits, particularly with the increasing popularity of digital, social, and audio-visual media platforms.