NEW YORK: Brent oil futures closed Tuesday under $100 a barrel for the first time in three months as recession worries cloud the near-term outlook for crude demand.
The contract for the international oil benchmark for September delivery tumbled 7.1 percent to $99.49 a barrel as the market focused on worries about further China Covid-19 restrictions and the slowdown in Europe and the United States.
The US benchmark, West Texas Intermediate, fell 7.9 percent to finish at $95.84 a barrel.
The drop in Brent below the psychologically important $100 level came shortly after the euro currency fell to parity with the US dollar for the first time in nearly 20 years Russia cut off gas supplies to Europe, heightening fears of a recession in the eurozone.
The drop in the currency market is “raising concerns that Europe is going into recession, and that they’re going to have to raise interest rates, which could slow the demand for oil,” said Andy Lipow of Lipow Oil Associates. “There’s also concerns about China shutting down.”
Despite worries about the weakening economic outlook, analysts have cautioned that global oil inventories remain low by historic standards, meaning the market could have a tough time meeting demand if there is a supply disruption.
Brent oil closes under $100/barrel for first time since April
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Brent oil closes under $100/barrel for first time since April
Work suspended on Riyadh’s massive Mukaab megaproject: Reuters
RIYADH: Saudi Arabia has suspended planned construction of a colossal cube-shaped skyscraper at the center of a downtown development in Riyadh while it reassesses the project's financing and feasibility, four people familiar with the matter said.
The Mukaab was planned as a 400-meter by 400-meter metal cube containing a dome with an AI-powered display, the largest on the planet, that visitors could observe from a more than 300-metre-tall ziggurat — or terraced structure —inside it.
Its future is now unclear, with work beyond soil excavation and pilings suspended, three of the people said. Development of the surrounding real estate is set to continue, five people familiar with the plans said.
The sources include people familiar with the project's development and people privy to internal deliberations at the PIF.
Officials from PIF, the Saudi government and the New Murabba project did not respond to Reuters requests for comment.
Real estate consultancy Knight Frank estimated the New Murabba district would cost about $50 billion — roughly equivalent to Jordan’s GDP — with projects commissioned so far valued at around $100 million.
Initial plans for the New Murabba district called for completion by 2030. It is now slated to be completed by 2040.
The development was intended to house 104,000 residential units and add 180 billion riyals to the Kingdom’s GDP, creating 334,000 direct and indirect jobs by 2030, the government had estimated previously.
