Oil Updates — Crude gains on supply concerns; Syria gets new oil minister

Brent crude climbed 28 cents, or 0.36 percent, to $78.93 a barrel at 12.00 p.m. Saudi time (Shutterstock)
Short Url
Updated 29 March 2023
Follow

Oil Updates — Crude gains on supply concerns; Syria gets new oil minister

RIYADH: Oil rose for a third session on Wednesday as a halt to some exports from Iraqi Kurdistan raised concerns of tightening supply and as easing fears of a global banking crisis supported risk sentiment in the wider markets.

Crude exports of 450,000 barrels per day from Iraq’s semi-autonomous northern Kurdistan region were halted on Saturday following an arbitration decision that confirmed Baghdad’s consent was needed to ship the oil.

Brent crude climbed 28 cents, or 0.36 percent, to $78.93 a barrel at 12.00 p.m. Saudi time, while West Texas Intermediate US crude increased 41 cents, or 0.56 percent, to $73.61.

Syria’s president appoints new oil minister in reshuffle

Syrian President Bashar Assad has appointed a new oil minister and changed four other ministers in a cabinet reshuffle, state media said on Wednesday.

Hassan Kaddour, who was the general director of the Syrian Petroleum Company for the last two years, replaces Bassam Touma as oil minister, the report said.

Assad named Mohsen Abdelkarim Ali as the internal trade minister, Abdelqader Jokhdar as the industry minister, Louay Al-Munajjed as the social affairs minister and Ahmed Bostachi as a state minister.

EU countries seek legal option to stop Russian LNG imports

EU countries agreed on Tuesday to seek a legal option to stop Russian companies sending liquefied natural gas to EU nations, by preventing Russian firms from booking infrastructure capacity.

Energy ministers from the bloc proposed that new EU gas market rules should include the option for governments to temporarily stop Russian and Belarusian gas exporters from bidding up-front for capacity on the infrastructure needed to deliver LNG into Europe.

The proposal is part of countries’ negotiating position on new EU gas market rules. It must be negotiated with the European Parliament — a process that can take months.

The 27-country EU has pledged to ditch Russian gas in response to Moscow’s invasion of Ukraine. Europe’s pipeline imports of gas from Russia have plunged since the invasion, but LNG imports have increased.

Russian LNG deliveries to Europe increased last year — to 22 billion cubic meters, up from around 16 bcm in 2021, according to EU analysis.

Russia’s Rosneft signs deal to boost oil supplies to India

Russia’s largest oil producer Rosneft and India’s top refiner Indian Oil Corp. have signed a term agreement to substantially increase oil supplies and diversify oil grades delivered to India, Rosneft said on Wednesday.

The deal was signed during a working trip to India by Rosneft CEO Igor Sechin, the company said.

(With input from Reuters) 


Saudi Arabia approves over 1k chemical permits, awards 172 mining licenses

Updated 56 min 22 sec ago
Follow

Saudi Arabia approves over 1k chemical permits, awards 172 mining licenses

RIYADH: Saudi Arabia processed more than 1,000 chemical permit requests in November and awarded exploration rights for 172 mining sites in what the government described as its largest licensing round on record. 

The Ministry of Industry and Mineral Resources said it handled 1,095 chemical clearance requests during the month, including 1,041 approvals for non-restricted chemicals and 54 for restricted substances, covering 2,081 product classifications, the Saudi Press Agency reported. 

It forms part of ongoing efforts to accelerate the discovery and development of mineral resources valued at over SR9.4 trillion ($2.51 trillion), aligning with Vision 2030’s objective to position mining as the third pillar of the national industrial sector.   

Ministry spokesperson Jarrah Al-Jarrah explained that the chemical clearance service enables industrial investors to obtain import or export permits for chemicals used in manufacturing through the “Sanaei” digital platform.  

“He clarified that the service aims to ensure that chemical clearances for industrial facilities are granted through streamlined procedures and in a timely manner, thus serving investors and facilitating the entry of their materials through ports of entry,” the SPA report stated. 

Al-Jarrah explained that the service plays a critical role in enhancing industrial output by developing and automating permit procedures for production-related chemicals as part of the ministry’s digital services.  

In a separate development, the ministry announced that 24 domestic and international companies and consortiums won exploration licenses across 172 mining sites in Saudi Arabia, with 76 of those sites awarded through a multi-round public auction.   

These sites span three mineral belts in the Riyadh, Madinah, and Qassim regions, with committed exploration spending exceeding SR671 million during the first two years of project implementation.  

The ministry described this licensing round as the largest mining tender in the Kingdom’s history.   

The competition covered more than 24,000 sq. km across regions known for strategic minerals including gold, copper, silver, zinc, and nickel.   

Additionally, the ministry noted that 26 qualified companies participated through the electronic bidding platform, progressing through a transparent process that began with prequalification and culminated in competitive multi-round auctions.  

The ministry confirmed that these investments aim to develop untapped exploration zones and enhance the utilization of Saudi Arabia’s mineral wealth, strengthening global supply chains.   

It also announced plans to launch further exploration license tenders covering 13,000 sq. km across Madinah, Makkah, Riyadh, Qassim, and Hail, with additional opportunities to be revealed at the 5th Future Minerals Forum in Riyadh from Jan. 13 to 15.  

These efforts, the ministry stated, reflect a broader mining strategy focused on maximizing resource potential, attracting foreign investment, creating employment opportunities, and integrating value chains to establish Saudi Arabia as a global mining hub.