Oil Updates – crude set for best week in over 2 months on solid demand outlook

Brent crude futures were up 38 cents, or 0.46 percent, at $83.13 a barrel by 2:10 p.m. Saudi time. Shutterstock
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Updated 14 June 2024
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Oil Updates – crude set for best week in over 2 months on solid demand outlook

LONDON: Brent oil futures prices were steady on Friday and on course for their best week in more than four months after solid projections for crude oil and fuel demand.

Brent crude futures were up 38 cents, or 0.46 percent, at $83.13 a barrel by 2:10 p.m. Saudi time. West Texas Intermediate US crude futures gained 27 cents, or 0.34 percent, to $78.89.

Brent and the US benchmark had gained almost 4.5 percent over the week. That would mark Brent’s highest weekly rise in percentage terms since the week to Feb. 9. For WTI, it was the biggest since the week to April 5.

Price support came from the Organization of Petroleum Exporting Countries this week after it stuck to a forecast for relatively strong growth in global oil demand for 2024 while Goldman Sachs projected solid US fuel demand this summer.

The International Energy Agency, meanwhile, expects oil demand to peak by 2029, levelling off around 106 million barrels per day toward the end of the decade, it said in a report on Wednesday.

However, this week’s price rally cooled somewhat after the US Federal Reserve kept interest rates on hold, with the start of rate cuts unlikely before December.

“In view of the still uncertain economic outlook for the major economic regions, a further price increase is not to be expected for the time being,” said Commerzbank analyst Barbara Lambrecht.

Elsewhere, Russia pledged to meet its output obligations under the pact among the OPEC+ group of producers after saying it exceeded its quota in May.

“No matter how many times it promises to make up for poor compliance at a future date, the market just sees more oil and an agreement that might just possibly unravel,” said PVM analyst John Evans.

Market focus is also on Gaza ceasefire talks, which could alleviate concerns about potential disruption to oil supply from the region.

The US is very concerned that hostilities on the Israel-Lebanon border could escalate, a senior US official said, adding that specific security arrangements are needed for the area and a ceasefire in Gaza is not enough. 


Saudization rates in marketing, sales professions announced

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Saudization rates in marketing, sales professions announced

RIYADH: Saudi Arabia’s Ministry of Human Resources and Social Development has announced the issuance of two decisions to increase Saudization rates in marketing and sales professions.

This comes as part of the ministry’s efforts to enhance the participation of national talent in the labor market, raise the level of Saudization in specialized professions, and provide stimulating and productive job opportunities for Saudi citizens across the Kingdom.

The first decision stipulates raising the Saudization rate to 60 percent in marketing professions in the private sector, effective Jan. 19, 2026. It applies to establishments with three or more employees in marketing professions, with a minimum wage of SR5,500 ($1,466). 

The targeted professions include: marketing manager, advertising agent, and advertising manager, as well as graphic designer, advertising designer, and public relations specialist. They also include advertising specialist and marketing specialist, as well as public relations manager and photographer.

The decision will be implemented three months after the announcement date to allow establishments sufficient time to prepare and implement it.

The second decision stipulates raising the Saudization rate to 60 percent in sales positions within the private sector, effective Jan. 19, 2026. This applies to establishments with three or more employees in sales roles, including: sales manager, retail sales representative, and wholesale sales representative as well as sales representative, IT and communications equipment sales specialist, and sales specialist. They also include a commercial specialist and a goods broker.

The decision will take effect three months after the announcement date to allow targeted establishments time to fulfill the requirements and achieve the Saudization target.

The entity clarified that private sector establishments will benefit from a package of incentives offered by the Ministry of Human Resources and Social Development, including support for recruitment, training and development, and employment, as well as job stability and priority access to Saudization support programs and programs of the Human Resources Development Fund.

The ministry also confirmed that its decision to raise Saudization rates in marketing and sales professions was based on analytical studies of labor market needs, in line with the number of job seekers in related specializations and the current and future requirements of the sales and marketing sectors.

It noted that implementing these decisions would enhance the attractiveness of the labor market, contribute to increasing quality job opportunities, and promote job stability for Saudi nationals.

The ministry further published the procedural guide for the two decisions on its website, which includes details of the targeted professions, the mechanisms for calculating Saudization rates, and the required compliance steps.

It urged all covered establishments to comply with the implementation to avoid penalties and to take advantage of the grace period provided for preparation and fulfillment of the requirements.