Crude oil prices registered the first weekly drop after the previous seven consecutive weekly gains. On the weekly closing, the Brent crude price declined to $51.29 per barrel. The West Texas Intermediate (WTI) crude price also declined, to $48.23 per barrel.
Though oil prices registered a weekly decline, Brent crude still held above the important physiological level of $50 per barrel, surpassing the seven-month-long narrow range around $40, which was the Brent crude price average for 2020.
It is possible that crude oil price movement has run into a long overdue correction after seven weekly gains. However, the new coronavirus strain is prompting demand worries amid new travel restrictions that will further hit oil demand.
Brent crude has held above the $50 barrier since Dec. 10, when the upward price momentum was driven by improving sentiments amid vaccination news while the market fundamentals remained heavily bearish. This might not look too good for oil markets going into the new year, but if the world economies pick up, oil prices will pick up as well and investors will disregard bearish fundamentals.
This means that holding above $50 will be a good start for 2021. If Brent crude holds around $50 per barrel, this will incentivize investors in all the commodity markets to buy again because economies will pick up.
COVID-19 lockdown fears amplified demand worries and provided a weak short-term demand outlook after tightened restrictions in the US and Europe outweighed the hopes of a vaccine-induced boost in economic growth and energy demand. This forced oil prices into a downward momentum, with near-term demand concerns trumping hopes for the demand outlook.
On the physical market side, crude oil transactions eased ahead of the year-end holidays as Asian refiners have eased purchases after an earlier-than-usual buying spree in November. This came as a result of lower refining throughput for Chinese refiners in December as refiners cut the monthly run rate to 78 percent due to state-run and independent refiners posting lower run rates because of maintenance works toward the year-end.
When the market opens after the year-end holidays, it will be very interesting to see how speculators will act, and if they will continue to add bullish bets to the oil futures market, as they were the most optimistic in the past weeks when Brent crude eventually moved out of the long-awaited narrow range around $40 per barrel to breach the $50 important barrier for two weeks.
Weekly energy recap: Dec. 25, 2020
https://arab.news/v3gk6
Weekly energy recap: Dec. 25, 2020
Islamic banks’ market share in Turkiye rises to 9.2%: Fitch Ratings
RIYADH: Islamic banks in Turkiye lifted their asset market share to 9.2 percent in 2025 from 8.1 percent a year earlier, as financing and deposits outpaced the broader banking sector, a new analysis showed.
In its latest report, Fitch Ratings said financing and deposit market shares rose to 7.9 percent and 10.4 percent, respectively, by the end of 2025, compared with 7.3 percent and 9.4 percent in 2024.
The agency noted that new digital Islamic banks are emerging in the country, with investment from Gulf Cooperation Council countries expected to continue.
Turkiye’s strong ties with Islamic countries across the Balkans, Africa and the Middle East support the development of its Islamic banking sector, attracting investors and contributing to the industry’s growth.
In its latest report, Fitch stated: “Three recently established private Islamic banks (two digital) grew rapidly in the first nine months of 2025. Investment in digital participation banking from the Gulf Cooperation Council countries underscores the potential for further investment from the region.”
It added: “Planned establishment of new participation banks, and rapid growth of recently established banks – albeit from small bases – means that the segment landscape may be reshaped in 2026.”
Dubai Islamic Bank PJSC’s investment in digital bank TOM underscores the potential for further GCC investment.
Turkish regulators have approved the establishment of Halk Katilim Bankasi A.S. and Adil Katilim Bankasi A.S. (digital), while BIM Birlesik Magazalar A.S.’s application is pending.
Fitch added that state-owned participation banks may merge or pursue initial public offerings, potentially reshaping the banking landscape.
The report predicts Islamic banks’ market share will rise further in 2026, supported by strong internal capital generation and growth appetite. However, the non-performing financing ratio may increase moderately due to high inflows.
“The segment’s non-performing financings ratio deteriorated to 2 percent at end-2025 compared to 1.2 percent in 2024 but remained below the sector average of 2.5 percent,” said Fitch.
It added: “We expect pressure to persist given still-high financing rates, high but declining inflation, and the sensitivity of unsecured retail (lower share than conventional banks) and SME segments to economic cycles. We forecast a moderate increase in the segment NPF ratio in 2026.”
