Saudi Arabia Joins UN CISG Agreement

Saudi ports are witnessing a significant growth in the movement of goods. (Asharq Al-Awsat)
Saudi ports are witnessing a significant growth in the movement of goods. (Asharq Al-Awsat)
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Saudi Arabia Joins UN CISG Agreement

Saudi ports are witnessing a significant growth in the movement of goods. (Asharq Al-Awsat)
Saudi ports are witnessing a significant growth in the movement of goods. (Asharq Al-Awsat)

Saudi Arabia has officially acceded to the United Nations Convention on Contracts for the International Sale of Goods (CISG), becoming the 96th state party to the convention.

The UN CISG is a multilateral uniform international sales treaty that facilitates international trade by removing legal barriers among state parties and providing consistent rules governing global goods contracts.

The CISG establishes a comprehensive code of legal rules governing the formation of contracts for the international sale of goods, the obligations of the buyer and seller, and remedies for breach of contract and other aspects of the contract.

It also provides an equitable and modern uniform framework for the contract of sale, which is the backbone of international trade in all countries, irrespective of their legal tradition or level of economic development. Its adoption and use may contribute significantly to introducing certainty in commercial exchanges and decreasing transaction costs.

In June, the Saudi Cabinet approved the Kingdom’s accession to the agreement, with the aim of strengthening the commercial sector and keeping pace with legislative reforms and modern regulatory frameworks that support the integration of the Saudi economy with regional and global economies.

Logistics expert Salem Al-Dosari told Asharq Al-Awsat that the Kingdom’s accession highlighted the country’s endeavor to strengthen the legal environment and promote trade and investment.

He added that Riyadh was seeking to enhance the growth of its commercial sector and keep pace with legislative reforms and modern regulatory frameworks that support the integration of the Saudi economy with regional and global economies.

The agreement aims to unify international commercial laws pertaining to contracts for the sale of goods between member states, and to achieve a balance between the interests of buyers and sellers in international commercial deals, Al-Dosari remarked.

In addition to facilitating trade, the CISG will help simplify dispute resolution processes, cultivating a conducive environment for all parties involved in international business dealings.



Oil Steadies as Market Awaits Fresh US Tariffs

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
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Oil Steadies as Market Awaits Fresh US Tariffs

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo

Oil prices were little changed on Wednesday as traders remained cautious ahead of US tariffs due to be announced at 2000 GMT, fearing they could exacerbate a global trade war and dampen demand for crude.

Brent futures were down 7 cents, or 0.09%, at $74.42 a barrel by 0858 GMT. US West Texas Intermediate crude futures fell 5 cents, or 0.07%, to $71.15.

The White House confirmed on Tuesday that President Donald Trump will impose new tariffs on Wednesday, though it provided no detail on the size and scope of the trade barriers, according to Reuters.

Trump's tariff policies could stoke inflation, slow economic growth and escalate trade disputes.

"Crude prices have paused last month's rally, with Brent finding some resistance above $75, with the focus for now turning from a sanctions-led reduction in supply to Trump's tariff announcement and its potential negative impact on growth and demand," said Ole Hansen, head of commodity strategy at Saxo Bank.

Traders will be watching for levies on crude imports, potentially driving up prices of refined products, he added.

For weeks Trump has touted April 2 as "Liberation Day", bringing new duties that could rattle the global trade system.

The White House announcement is scheduled for 4 p.m. ET (2000 GMT).

"The balance of risk lies to the downside, given that weaker than expected tariff measures are unlikely to drive a significant rally in Brent, while stronger than expected measures could trigger a substantial selloff," BMI analysts said in a note.

Trump has also threatened to impose secondary tariffs on Russian oil and on Monday he ramped up sanctions on Iran as part of his administration's "maximum pressure" campaign to cut its exports.

"Markets likely to be volatile ahead of the final announcements on tariffs and the scale of them. The threat of secondary tariffs on Russian crude continues to provide some support for prices, with more downside risk at present around tariff uncertainty," said Panmure Liberum analyst Ashley Kelty.

US oil and fuel inventories painted a mixed picture of supply and demand in the world's biggest producer and consumer.

US crude oil inventories rose by 6 million barrels in the week ended March 28, according to sources citing the American Petroleum Institute. Gasoline inventories, however, fell by 1.6 million barrels and distillate stocks were down by 11,000 barrels, the sources said.

Official US crude oil inventory data from the Energy Information Administration is due later on Wednesday.