DUBAI: Global oil prices fell on Monday after OPEC+ members failed to reach agreement on output levels.
A majority of members of the producers’ alliance led by Saudi Arabia and Russia rejected proposals to increase supply amid new fears of the economic impact of the COVID-19 pandemic.
Brent crude, the global benchmark, fell back from earlier highs as it became apparent that OPEC+ could not reach a consensus. Delegates at the meeting said Russia and Kazakhstan wanted to increase output by 500,000 barrels per day from next month, while the rest of the 23-member bloc sought to delay an increase until economic indicators improved.
The meeting will resume today, amid optimism a deal can be reached. “Our efforts will continue, and we are close to an agreement,” one energy official told Arab News.
Saudi Arabia’s Energy Minister, Prince Abdul Aziz bin Salman, was among those who urged caution on the OPEC+ group despite rising crude prices and hopes of a vaccine-led economic recovery.
“At the risk of being seen as a killjoy in these proceedings, I want to urge caution. The new variant of the disease is a worrying and unpredictable development,” the minister said.
“Do not put at risk all that we have achieved for the sake of an instant, but illusory, benefit.”
Other countries who sought a delay in the output increase included the UAE, Kuwait, Iraq, Nigeria and Azerbaijan, according to the official.
Oil analysts played down fears of a repetition of the fallout between Russia and Saudi Arabia last March, which led to a spike in oil output just as the effects of the COVID-19 pandemic were impacting the global economy. “The market dynamics are entirely different now,” one said.
Brent closed at $51.15, having briefly touched $53 earlier in the day, its highest level since
March 2020.
Oil prices fall amid OPEC+ impasse on output
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Oil prices fall amid OPEC+ impasse on output
- Crunch meeting of producers’ alliance spills into second day after OPEC+ rejects proposal to boost supply
Closing Bell: Saudi benchmark index closes lower at 10,540
RIYADH: Saudi equities ended Wednesday’s session lower, with the Tadawul All Share Index falling 55.13 points, or 0.52 percent, to close at 10,540.72.
The sell-off was mirrored across other indices, with the MSCI Tadawul 30 Index retreating 5.79 points, or 0.41 percent, to close at 1,393.32, while the parallel market Nomu slipped 74.56 points, or 0.32 percent, to 23,193.21.
Market breadth remained firmly negative, as decliners outpaced advancers, with 207 stocks ending the session lower against just 51 gainers on the main market.
Trading activity moderated compared to recent sessions, with volumes reaching 123.5 million shares, while total traded value stood at SR2.72 billion ($725.2 million).
On the sectoral and stock level, Al Moammar Information Systems Co. led the gainers after surging 9.96 percent to close at SR172.30, extending its rally following a series of contract announcements tied to data center and IT infrastructure projects.
Al Masar Al Shamil Education Co. climbed 4.89 percent to SR27.48, while Naqi Water Co. advanced 3.36 percent to SR58.50. Al Yamamah Steel Industries Co. and Al-Jouf Agricultural Development Co. also posted solid gains, rising 3 percent and 2.86 percent, respectively.
Losses, however, were concentrated in industrial names. Saudi Kayan Petrochemical Co. fell 3.67 percent to SR4.73, while Makkah Construction and Development Co. slid 3.44 percent to SR80.
Saudi Tadawul Group Holding Co. retreated 3.28 percent to SR147.50, weighed down by broader market weakness, and Saudi Cable Co. declined 3.18 percent to SR143.
Alkhaleej Training and Education Co. rounded out the top losers, shedding just over 3 percent.
On the announcement front, BinDawood Holding announced the signing of a share purchase agreement to acquire 51 percent of Wonder Bakery LLC in the UAE for 96.9 million dirhams, marking a strategic expansion of its food manufacturing footprint beyond Saudi Arabia.
The acquisition, which remains subject to regulatory approvals, is expected to support the group’s regional growth ambitions and strengthen supply chain integration.
BinDawood shares closed at SR4.68, up 0.43 percent, reflecting a positive market reaction to the overseas expansion move.
Meanwhile, Al Moammar Information Systems disclosed the contract sign-off for the renewal of IT systems support licenses with the Saudi Central Bank, valued at SR114.4 million, inclusive of VAT.
The 36-month contract is expected to have a positive financial impact starting from fourth quarter of 2025, reinforcing MIS’s position as a key technology partner for critical government institutions. The stock surged to the session’s limit making it the top gainer.
In a separate disclosure, Maharah Human Resources confirmed the completion of the sale of its entire stake in Care Shield Holding Co. through its subsidiary, Growth Avenue Investments, for a total consideration of SR434.3 million.
The transaction involved the transfer of 41.36 percent of Care Shield’s share capital to Dallah Healthcare, with Maharah receiving the full cash proceeds.
Despite the strategic divestment, Maharah shares closed lower, ending the session at SR6.12, down 1.29 percent.
