Saudi Arabia to Expand Petrochemical Production, Energy Minister Says

Saudi Energy Minister Prince Abdulaziz bin Salman (Reuters)
Saudi Energy Minister Prince Abdulaziz bin Salman (Reuters)
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Saudi Arabia to Expand Petrochemical Production, Energy Minister Says

Saudi Energy Minister Prince Abdulaziz bin Salman (Reuters)
Saudi Energy Minister Prince Abdulaziz bin Salman (Reuters)

Saudi Arabia is moving to expand the production of petrochemicals based on Chinese techniques for converting crude oil into petrochemicals, announced Energy Minister Prince Abdulaziz bin Salman on Wednesday.

Speaking at the third forum of the Belt and Road Initiative (BRI) for International Cooperation in Beijing, the Minister said that the COVID-19 pandemic demonstrated its impact on the global economy and on the supply and value chains.

It also showed the importance of complementary work between nations and the safety, effectiveness, and feasibility of the approaches adopted by China and Saudi Arabia through the BRI and Vision 2030.

Prince Abdulaziz explained that 2022 witnessed the conclusion of the comprehensive strategic partnership agreement with China, and the alignment plan between Vision 2030 and the BRI to enhance cooperation and interconnection.

The Kingdom is a significant and reliable oil exporter to China, said the Minister, adding that Saudi Arabia is keen to maintain and enhance this relationship by boosting strategic ties.

Prince Abdulaziz explained that Riyadh and Beijing seek to enhance their cooperation in developing and sustaining supply chains and enabling companies to benefit from current and future infrastructure.

He explained that these efforts further bolster cooperation in several areas, such as the circular carbon economy and its technologies, which can effectively contribute to China’s aspirations to make the BRI a green initiative.

Saudi Arabia is determined to become one of the most important exporters of renewable energy and clean hydrogen to support the diversification of energy sources.

He pointed out that Saudi Arabia aims to become a global logistics center, recalling that by 2030, the Kingdom will have approximately 60 logistics regions to meet the needs of the worldwide supply chain.



Gold Slips as US Bond Yields Rise, Investors Assess New Tariffs

Gold rings are displayed in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo
Gold rings are displayed in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo
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Gold Slips as US Bond Yields Rise, Investors Assess New Tariffs

Gold rings are displayed in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo
Gold rings are displayed in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo

Gold prices eased on Tuesday, weighed by higher US Treasury yields as US President Donald Trump announced new tariff proposals on trading partners, including Japan and South Korea.

Spot gold was down 0.2% at $3,328.67 per ounce, as of 1207 GMT. US gold futures fell 0.1% to $3,338.20.

The yield on benchmark US 10-year notes rose to a two-week peak, making the non-yielding bullion less attractive.

"Gold is stuck between a rock and a hard place," said UBS commodity analyst Giovanni Staunovo, Reuters reported.

"Negative for the gold price is the US decision to extend the deadline for a trade deal for many trade partners, positive for the gold price is the fact that key US trading partners in Asia might have to deal with higher tariffs in the near future, weighing on economic growth prospects."

On Monday, Trump told 14 countries that sharply higher tariffs would start on August 1, marking a new phase in the trade war he launched in April, with levies between 25% and 40%.

The new deadline was firm, Trump said, adding that he would consider extensions if countries made proposals for a trade deal.

"Reciprocal tariffs" were to be capped at 10% until July 9 to allow for negotiations, but so far, agreements have been reached only with Britain and Vietnam. In June, Washington and Beijing agreed on a framework covering tariff rates.

Meanwhile, China has warned the Trump administration against reigniting trade tensions and threatened to retaliate against nations that strike deals with the US to exclude it from their supply chains.

Trump's tariffs have stoked inflation fears, further complicating the US Federal Reserve's path to lower interest rates.

Investors await minutes of the Fed's June meeting, due on Wednesday, for more clues into the bank's policy outlook.

Spot silver fell 0.1% to $36.71 per ounce, platinum rose 0.2% to $1,372.51, and palladium rose 0.6% to $1,117.33.