NEW YORK: Oil prices settled higher on Thursday, hitting 11-month peaks, as markets remained focused on Saudi Arabia’s unexpected pledge to deepen its oil cuts and firmer equities, shrugging off political turmoil in the United States.
Brent crude settled up 8 cents to $54.38 a barrel after touching $54.90, a high not seen since before the first COVID-19 lockdowns in the West.
US West Texas Intermediate (WTI) settled up 20 cents to $50.83, after hitting a session high at $51.28.
On Wednesday, crude futures prices briefly dipped when President Donald Trump’s supporters stormed the US Capitol after he urged them to protest Congress’s certification of his election loss.
Oil prices have been supported this week by a pledge by Saudi Arabia, the world’s biggest oil exporter, to cut output by an additional 1 million barrels per day (bpd) in February and March.
“By next month, this bull market could re-establish into higher levels mainly with the benefit of Saudi Arabia’s unexpected voluntary 1 million bpd production cut,” said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.
Seven North Sea crude cargoes were bought and sold in the trading window operated by Platts on Thursday, a record amount that trade sources say may reflect tighter supply after the surprise cut.
“Saudi Arabia ...intimately knows the relationship between the oil price and the global inventory levels. Lower inventories equal higher prices,” SEB chief commodity analyst Bjarne Schieldrop said.
Global equities were higher as investors believe Democratic US President-elect Joe Biden would be empowered to spend more freely following victories by two Democrats in Senate races in Georgia that gave the party control of both chambers of US Congress.
“Expected stimulus measures under a Biden administration that will likely include significant infrastructure investment represents a supportive consideration capable of boosting gasoline and diesel demand,” Ritterbusch said.
Oil hits 11-month highs on Saudi cuts, shrugs off US turmoil
https://arab.news/4j569
Oil hits 11-month highs on Saudi cuts, shrugs off US turmoil
- Record N. Sea cargoes trade on Platts amid Saudi cuts
- Stocks climb after Democrats win control of US Senate
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.
