LONDON: Brent crude oil consolidated below $118 per barrel, underpinned by expectations of improving global growth and continuing tensions in the Middle East.
Trading volume was limited as the US market was closed due to the Presidents’ Day holiday and as the International Petroleum (IP) Week, a gathering of industry professionals, kicked off in London, analysts said.
“With the US holiday and the start of the IP Week, a lot of people will be away from their desks,” Olivier Jakob, analyst at Switzerland-based Petromatrix, said.
US economic data last week suggested the world’s largest oil consumer hit a bump on its road to recovery with industrial output off to a weak start in 2013.
But a rebound in factory activity in New York state in February suggested any setback may be temporary.
“We continue to see a mixed picture out of the United States. Industry output was lower than expected but that shouldn’t affect the general upward direction,” Jakob said.
Brent crude was down 20 cents at $117.46 a barrel by 1518 GMT after posting its first weekly loss since the first half of January. US crude slipped 24 cents to $95.62.
“The most likely scenario today is trade moving in and out of the previous close with little change,” Harry Tchilinguirian, analyst at BNP Paribas, said.
In the Middle East, tensions over Iran’s disputed nuclear program continue to stoke supply concerns in the key oil producing region.
Talks between Iran and major world powers remain deadlocked as investors look ahead to another meeting on Feb. 26 for any signs of progress.
“At the end of this week you might start seeing positions being reviewed in view of next week’s talks,” Jakob said.
Major powers plan to offer an easing of sanctions on trading gold and other precious metals with Iran in return for steps to shut down Iran’s newly expanded Fordow uranium enrichment plant, Western officials said.
Iran criticized the proposal
A senior Iranian lawmaker rebuffed the idea.
A sharp cut in Saudi Arabia’s crude output and exports has also supported Brent.
The euro and the dollar gained against the yen on Monday after financial leaders of the world’s biggest 20 economies vowed not to devalue their currencies to boost exports, in a bid to defuse currency wars.
Investors will focus later this week on the euro area’s Purchasing Managers’ Indexes for February and German sentiment indices.
Analysts expect the euro area flash PMIs, which point to economic activity around six months out, to show growth stabilizing rather than a clear end to the recession across the region.
Brent steadies below $118, global growth hopes support
Brent steadies below $118, global growth hopes support
Saudi investment hits 32% of GDP, non-oil fixed capital reaches 40%, minister says
RIYADH: Saudi Arabia’s investment now accounts for 32 percent of gross domestic product, with non-oil fixed capital at 40 percent, according to the minister responsible for portfolio.
Speaking during his visit to the Shoura Council, Khalid Al-Falih said that foreign direct investment is expected to grow fivefold, signaling strong Vision 2030 progress.
“Regarding cumulative performance, the Kingdom has exceeded all expectations, achieving high levels of investment,” Al-Falih said, according to a video posted on Al-Ekhbariya’s X account focused on economic matters.
The minister added: “Today, investment accounts for 32 percent of the total GDP. In terms of non-oil GDP, fixed capital represents 40 percent, compared with 41 percent in China, the highest globally.”
If we take the non-oil GDP, he said, fixed capital will make 40 percent. “China is the largest globally with 41 percent. So, we will rank second if we compare it to the non-oil economy and fourth when measured against total GDP,” Al-Falih said.
He emphasized that the Kingdom offers an investment-attractive environment, noting that when focusing on foreign direct investment rather than overall investment, Saudi Arabia ranks among the world’s highest.
The minister of investment added that FDI is expected to grow fivefold by the end of 2025, though these data require confirmation, stressing that this is “a big indicator for the success of Saudi Vision 2030.”
During his address to the session, Al-Falih emphasized that Saudi Vision 2030 prioritizes economic diversification and reducing dependence on oil, through boosting the private sector’s contribution to inclusive economic development, supporting national sectoral priorities, and driving growth in the Kingdom’s GDP.
He highlighted key initiatives enabling the private sector, including the establishment of the Ministry of Investment and the Saudi Investment Promotion Authority, the launch of the “Shareek” program, the development of the National Investment Strategy, and linking all stakeholders in the investment ecosystem.
“The Cabinet’s adoption of the National Investment Strategy, launched by Crown Prince in 2021 and implemented in 2022 as a comprehensive national framework, has played a major role in positioning investment as a driver of economic growth,” he said.
Al-Falih revealed that the ministry has identified more than 2,000 investment opportunities worth over SR1 trillion ($267 billion), noting that 346 of these opportunities have been converted into closed deals valued at over SR231 billion through the “Invest Saudi” platform.
He also highlighted the success of the regional headquarters attraction program, with licenses issued to more than 700 global companies by the end of 2025, surpassing the 2030 target of 500 companies, across diverse sectors that reinforce Saudi Arabia’s role as a regional business hub.
The minister revealed that active investment licenses have grown tenfold, rising from 6,000 in 2019 to 62,000 by the end of 2025, highlighting the role of companies in creating over one million jobs, including numerous positions for Saudi nationals.
Al-Falih noted the Kingdom’s success in attracting 20 of the world’s top 30 banks, as part of efforts to strengthen the presence of leading asset managers and international banks in support of the Saudi banking sector.
He also discussed reforms to enhance the business environment, such as the Civil Transactions Law, Companies Law, and the updated Investment Law issued in mid-2024, which contributed to Saudi Arabia moving up 15 places in the global competitiveness ranking.
The minister also announced the update of the National Investment Strategy in 2025, focusing on quality, productivity, and directing investments toward sectors with the highest economic impact, while developing financing solutions for SMEs.
