Oil jumps above $3 per barrel on possible OPEC+ supply tightening

Global benchmark Brent crude gained $3.41, or 3.5 percent, to $99.88 a barrel by 10:53 a.m. EDT (1453 GMT). US West Texas Intermediate crude rose $3.74, or 4.1 percent, to $94.10.
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Updated 23 August 2022
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Oil jumps above $3 per barrel on possible OPEC+ supply tightening

NEW YORK: Oil prices soared more than $3 a barrel on Tuesday after Saudi Arabia floated the idea of OPEC+ output cuts to support prices and with the prospect of a drop in US crude inventories.

The Saudi energy minister said OPEC+ had the means to deal with challenges including cutting production, state news agency SPA said on Monday, citing comments Prince Abdulaziz bin Salman made to Bloomberg.

Global benchmark Brent crude gained $3.41, or 3.5 percent, to $99.88 a barrel by 10:53 a.m. EDT (1453 GMT). US West Texas Intermediate crude rose $3.74, or 4.1 percent, to $94.10.

“Much of the impetus behind today’s strength is being driven by comments out of Saudi Arabia alluding to a possible output cut in an attempt to ‘stabilize’ the market,” said Jim Ritterbusch of oil trading advisory firm Ritterbusch and Associates. 

In the comments reported on Monday, the Saudi minister said the paper and physical oil markets had become “disconnected.”

However, nine sources in the Organization of the Petroleum Exporting Countries told Reuters on Tuesday that OPEC+ production cuts may not be imminent and would coincide with the return of Iran to oil markets should Tehran clinch a nuclear deal with the West.

A senior US official told Reuters on Monday that Iran had dropped some of its main demands on resurrecting a deal.

Oil has soared in 2022, coming close in March to an all-time high of $147 after Russia’s invasion of Ukraine exacerbated supply concerns. Fears about a global recession, rising inflation and weaker demand have since weighed on prices.

While the price of Brent futures has fallen sharply from this year’s high, the market structure and price differentials in the physical oil market still point to supply tightness.

Underlining tight supply, the latest weekly reports of US inventories are expected to show a decline of 1.5 million barrels in crude stocks. 


Indonesia and Thailand join Saudi-led Global Halal Mark alliance

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Indonesia and Thailand join Saudi-led Global Halal Mark alliance

RIYADH: Four countries have joined the Global Halal Mark alliance, a new initiative launched by the Saudi Halal Center, following the signing of two agreements with Indonesia and Thailand.

Speaking to Al-Eqtisadiah on the sidelines of the Makkah Halal Forum,  Abdulaziz Al-Rushodi, CEO of the Saudi Halal Center, said the number of countries participating in the alliance is expected to reach 10 by the end of this year. 

He said the initiative aims to unify “Halal” marks around the world and achieve the highest standards of reliability in the sector.

A second initiative announced at the forum is the Halal Academy, established in cooperation with the Islamic University of Madinah, to serve as a global scientific reference contributing to the development of competencies and the halal ecosystem in a comprehensive manner. 

Al-Rushodi also stated that the center is planning to launch the Global Halal Hub initiative, an integrated digital system aimed at unifying halal certifications and facilitating cross-border trade procedures among various countries. 

As part of efforts to support the local industry, the center — according to Al-Rushodi — signed a memorandum of understanding with the Food Manufacturers Association, which includes thousands of national factories, with the aim of empowering Saudi products and qualifying them for export to countries in the Islamic world by granting them the halal mark. 

He said the partnership seeks to encourage local manufacturers to adopt the mark as a core standard for their products, opening broad prospects for global marketing and strengthening the presence of Saudi products in international markets. 

The Saudi Halal Center was established in 2018 and operates under the Saudi Food and Drug Authority. The center grants halal certificates after verifying compliance with Shariah and technical standards and requirements to ensure the reliability of products bearing the “Halal” mark in local and international markets, in addition to issuing the Saudi halal mark. 

The center grants the right to use its trademark, a logo placed on products to indicate that they are subject to oversight and auditing and are compliant with Islamic law. 

The size of the global halal market in 2025 was estimated at approximately $7 trillion, with Saudi Arabia topping the list of the largest investing countries in the sector at a value of SR5.5 billion ($1.4 billion), Yousef Khalawi, Secretary-General of the Islamic Chamber of Commerce and Development, told Al-Eqtisadiah. 

According to Khalawi, the size of the halal market is expected to reach $10 trillion by 2030, amid accelerating growth in global consumer demand and expanding investments in value chains linked to halal industries. 

Saudi Arabia ranks first globally among the most invested countries in the halal sector, having injected investments valued at SR5.5 billion. Malaysia comes second with investments reaching SR4.7 billion, benefiting from its advanced ecosystem of global halal standards, followed by Kuwait in third place with investments amounting to SR4.1 billion. 

The UAE ranked fourth, investing approximately SR3.7 billion in value chains related to food, tourism, and consumer products, while Indonesia placed fifth with investments estimated at SR1.5 billion.