SINGAPORE: Oil prices on Monday hit their highest in more than seven years on fears that a possible invasion of Ukraine by Russia could trigger US and European sanctions that would disrupt exports from the world’s top producer in an already tight market.
Brent crude futures was at $95.61 a barrel by 0506 GMT, up $1.17, or 1.2 percent, after earlier hitting a peak of $96.16, the highest since October 2014. US West Texas Intermediate (WTI) crude rose $1.41, or 1.5 percent, to $94.51 a barrel, hovering near a session-high of $94.94, the loftiest since September 2014.
Comments from the United States about an imminent attack by Russia on Ukraine have rattled global financial markets.
Russia could invade Ukraine at any time and might create a surprise pretext for an attack, the United States said on Sunday.
“If ... troop movement happens, Brent crude won’t have any trouble rallying above the $100 level,” OANDA analyst Edward Moya said in a note.
“Oil prices will remain extremely volatile and sensitive to incremental updates regarding the Ukraine situation.”
The tensions come as the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, struggle to ramp up output despite monthly pledges to increase production by 400,000 barrels per day (bpd) until March.
The International Energy Agency said the gap between OPEC+ output and its target widened to 900,000 bpd in January, while JP Morgan said the gap for OPEC alone was at 1.2 million bpd.
“We note signs of strain across the group: seven members of OPEC-10 failed to meet quota increases in the month, with the largest shortfall exhibited by Iraq,” JP Morgan analysts said in a Feb. 11 note.
The bank added that a super-cycle is in full swing with “oil prices likely to overshoot to $125 a barrel on widening spare capacity risk premium.”
CMC Markets analyst Tina Teng said spare supply is limited and demand for oil has outpaced production growth, as economies bounce back from the worst of the coronavirus pandemic.
“It would not take long for prices to spike higher, though global leaders are rushing to help defuse the growing tension,” she added.
Investors are also watching talks between the United States and Iran to revive the 2015 nuclear deal.
However, a senior Iranian security official said on Monday that progress in talks was becoming “more difficult.”
In the US, the robust oil prices are encouraging energy firms to ramp up output as they added the most oil rigs in four years last week, energy services firm Baker Hughes Co. said on Friday.
Oil prices climb to 7-year highs on supply disruption fears
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Oil prices climb to 7-year highs on supply disruption fears
- Brent crude futures was at $95.61 a barrel by 0506 GMT, up $1.17, or 1.2 percent, after earlier hitting a peak of $96.16
Saudi Arabia lifts property sale ban to spur AlUla development
RIYADH: The Royal Commission for AlUla has lifted the suspension on land and property sales in central and southern AlUla, paving the way for renewed real estate activity in the region.
According to an RCU statement, the move aligns with the commission’s commitment to sustainable and inclusive development aimed at enhancing residents’ quality of life.
It also supports Saudi Vision 2030’s tourism objectives, with AlUla projected to contribute a cumulative SR120 billion ($31 billion) to the Kingdom’s gross domestic product by 2035, Phillip Jones, RCU’s Chief Tourism Officer, told Arab News in 2024.
“Lifting the suspension on land and property sales opens wider pathways for urban development and expands residential and investment options, reinforcing AlUla’s position as a prime destination for living and investment,” the statement said.
The decision is also designed to unlock significant opportunities for investors and developers in Saudi Arabia’s real estate sector, strengthen stability in the rental and ownership markets, and support diverse residential and commercial projects. Additionally, it aims to enrich AlUla’s urban identity by blending modern development with the city’s cultural and historical heritage.
Speaking at the TOURISE conference in Riyadh last November, Jones noted that AlUla has expanded its aviation capacity to 30 weekly flights and plans to double its hotel rooms to 2,000. He emphasized that these efforts aim to create a scalable, self-sustaining ecosystem that improves access while preserving the region’s heritage and landscapes.
Jones described AlUla as “a year-round destination,” with peak tourism from October to April driven by festivals, events, and concerts. Increased visitor numbers are already contributing to Saudi Arabia’s economy, in line with Vision 2030 goals.
Located in the northwest of the Kingdom and spanning approximately 22,000 sq. km, AlUla also has a thriving agricultural sector that underpins its economic development. Guided by social, economic, and ecological principles, the RCU has developed a strategic roadmap for AlUla, aiming to diversify the national economy beyond oil and boost GDP growth.
