DUBAI: Energy ministers from OPEC+, the oil alliance led by Saudi Arabia and Russia, are preparing for a crucial meeting on Thursday amid signs that the recovery in global oil markets is slowing down because of a resurgence in the COVID-19 pandemic.
Projections for 2020 crude demand have been downgraded in the past couple of days by two authoritative sources — the Organization of Petroleum Exporting Countries (OPEC) itself, and the International Energy Agency (IEA).
In addition to new COVID lockdowns, the IEA blamed teleworking and weak air travel for the downturn in crude demand in “even more fragile” markets.
Brent crude, the global benchmark, has lost about 10 per cent in the past two weeks but has mostly stayed above the $40 per barrel level.
According to OPEC sources, ministers are considering whether to take further proactive measures now on oil supply to head off a possible excess this autumn, or to stick with the regime of cuts, compliance and compensation that has brought oil supply closer to rebalance.
The price of crude has more than doubled since the market chaos of April before the current OPEC+ regime took effect.
Traders were spooked by figures this week that showed the UAE, one of the staunchest advocates of the compliance policy, missed the OPEC+ targets by a wide margin.
Abu Dhabi said the lapse was temporary because of increased domestic seasonal demand, and promised to compensate next month. Overall compliance with the cuts has been unprecedented.
Energy analyst Robin Mills, chief executive of Qamar Energy consultancy, said he believed OPEC+ would “hold the line” at the current level of cuts.
Crunch meeting of oil alliance over cuts in output
https://arab.news/yzkbs
Crunch meeting of oil alliance over cuts in output
- Projections for 2020 crude demand have been downgraded in the past couple of days
Closing Bell: Saudi equity markets end year in green at 10,491
RIYADH: Saudi equities ended Wednesday’s session higher, with the Tadawul All Share Index rising 109.18 points, or 1.05 percent, to close at 10,490.69, supported by broad-based buying across the main market.
Gains were mirrored in the blue-chip MT30 index, which added 9.31 points, or 0.68 percent, to finish at 1,387.31. The Nomu Parallel Market also advanced, climbing 255.5 points, or 1.11 percent, to close at 23,296.29.
Market breadth was firmly positive, with 249 gainers versus just 12 losers on the main market, with SR3.2 billion ($854.2 million) in trade value.
Among the top gainers, United Cooperative Assurance Co. surged 9.73 percent to close at SR3.72, while Saudi Industrial Export Co. rose 9.18 percent to SR2.26.
Al Gassim Investment Holding Co. advanced 8.25 percent to SR16.40, and Abdullah Saad Mohammed Abo Moati for Bookstores Co. gained 7.73 percent to end at SR46.
Gulf General Cooperative Insurance Co. also posted strong gains, closing up 7.67 percent at SR3.93.
On the downside, Naseej International Trading Co. led the declines, falling 5.87 percent to SR35.30.
SEDCO Capital REIT Fund edged down 1.03 percent to SR6.70, while Saudi Tadawul Group Holding Co. slipped 0.78 percent to SR140.30.
Banque Saudi Fransi declined 0.77 percent to SR16.82, and Saudi Co. for Hardware closed 0.76 percent lower at SR25.96.
On the corporate front, Catrion Catering Holding Co. said it signed a sale and purchase agreement to acquire a 55 percent stake in Al Khaleejah Catering Co., with an option to buy an additional 15 percent within three years.
The transaction values the acquisition at up to SR 40.86 million, comprising an initial cash payment of SR315.21 million and performance-based earn-out payments of up to SR125.65 million, subject to the achievement of specified financial targets.
The acquisition will be financed through internal funding sources and Shariah-compliant banking facilities and is expected to support Catrion’s expansion strategy in the aviation and catering services sector, with a positive financial impact anticipated by the end of the second quarter of 2026.
Catrion Catering Holding Co. closed Wednesday’s session at SR80.35, up SR3.35, representing a 4.35 percent gain
Purity for Information Technology Co. announced the signing of a contract with the Social Development Bank to provide managed cloud system services.
The contract is valued at SR6.92 million, including VAT, and will run for a duration of 36 months.
Under the agreement, Purity will deliver managed cloud services aimed at enhancing system reliability, service availability, and overall operational continuity.
The financial impact of the contract is expected to be reflected in the company’s financial results for the 2025–2026 fiscal year.
Purity for Information Technology Co. ended the session at SR20.99, rising SR0.54, or 2.64 percent.
