عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Oil Stabilizes Ahead of OPEC+ Meeting

Oil pump jacks are seen at uthe Vaca Muerta shale oil and gas deposit in the Patagonian province of Neuquen, Argentina, January 21, 2019. REUTERS/Agustin Marcarian/File Photo Purchase Licensing Rights
Oil pump jacks are seen at uthe Vaca Muerta shale oil and gas deposit in the Patagonian province of Neuquen, Argentina, January 21, 2019. REUTERS/Agustin Marcarian/File Photo Purchase Licensing Rights
TT
TT

Oil Stabilizes Ahead of OPEC+ Meeting

Oil pump jacks are seen at uthe Vaca Muerta shale oil and gas deposit in the Patagonian province of Neuquen, Argentina, January 21, 2019. REUTERS/Agustin Marcarian/File Photo Purchase Licensing Rights
Oil pump jacks are seen at uthe Vaca Muerta shale oil and gas deposit in the Patagonian province of Neuquen, Argentina, January 21, 2019. REUTERS/Agustin Marcarian/File Photo Purchase Licensing Rights

Oil prices held steady on Friday as investors await US inflation data for clues on the demand outlook before turning attention to Sunday's OPEC+ meeting to determine the state of supply into next year.

Brent futures were up 14 cents, or 0.17%, at $82.00 a barrel by 0908 GMT. US West Texas Intermediate (WTI) crude was down 4 cents, or 0.05%, at $77.87.

The more liquid August Brent contract was trading at $81.93, up 5 cents from the previous settlement.

Brent futures are on track for a monthly loss of almost 7% after dropping 2% in the previous session on a surprise build in US fuel inventories, Reuters reported.

Higher refinery utilization brought a deeper than expected draw in crude oil stocks in the week to May 24, Energy Information Administration (EIA) data showed.

However, gasoline inventories rose by 2 million barrels, against expectations of a 400,000 barrel draw and higher demand ahead of the Memorial Day weekend.

In the euro zone, inflation rose by 2.6% in May, Eurostat data showed, beating the 2.5% expected by economists polled by Reuters.

The increase is unlikely to deter the European Central Bank from cutting borrowing costs next week, but it could slow the rate-cutting cycle in the coming months.

The oil market has been under pressure in recent weeks over the prospect of borrowing costs staying higher for longer, which ties down funds and can curb oil demand.

US inflation data is due to be released at 1230 GMT.​

Markets are also awaiting the OPEC+ meeting on Sunday, with the producer group working on a complex deal that would allow it to extend some of its deep oil production cuts into 2025, three sources familiar with OPEC+ discussions said on Thursday.

"The probable extension of the voluntary production cuts by OPEC+ should cause oil prices to rise again," Commerzbank analysts said. "Ultimately, this would threaten a significant undersupply on the oil market in the third quarter."

Most Viewed

 
 
Business

Saudi Oil Giant Expands Investments Through Local, International Acquisitions

Saudi Aramco signed agreements to acquire a 10% equity interest in HORSE Powertrain Limited, the new global powertrain solutions company, alongside Renault Group, Zhejiang Geely Holding Group, and Geely Automobile Holdings Limited (“Geely”). (Photo: Asharq Al-Awsat)
Saudi Aramco signed agreements to acquire a 10% equity interest in HORSE Powertrain Limited, the new global powertrain solutions company, alongside Renault Group, Zhejiang Geely Holding Group, and Geely Automobile Holdings Limited (“Geely”). (Photo: Asharq Al-Awsat)
TT
TT

Saudi Oil Giant Expands Investments Through Local, International Acquisitions

Saudi Aramco signed agreements to acquire a 10% equity interest in HORSE Powertrain Limited, the new global powertrain solutions company, alongside Renault Group, Zhejiang Geely Holding Group, and Geely Automobile Holdings Limited (“Geely”). (Photo: Asharq Al-Awsat)
Saudi Aramco signed agreements to acquire a 10% equity interest in HORSE Powertrain Limited, the new global powertrain solutions company, alongside Renault Group, Zhejiang Geely Holding Group, and Geely Automobile Holdings Limited (“Geely”). (Photo: Asharq Al-Awsat)

Saudi Aramco has made a series of local and international acquisitions to expand its business and fulfill its commitment to its partners to achieve its long-term strategy.
On Wednesday, the company announced its acquisition of an additional stake of 22.5% in Rabigh Refining and Petrochemical (Petro Rabigh), a refining and petrochemical complex located on Saudi Arabia’s west coast, in a $702 million (SAR 2.63 billion) transaction.
Aramco also signed a definitive agreement to purchase the shares, worth SAR 7 per share, from Tokyo-based Sumitomo Chemical. Both companies currently each own 37.5% of the shares in Petro Rabigh, which was listed on the Saudi Exchange in 2008.
In March, Aramco successfully completed the acquisition of a 100% equity stake in Esmax Distribución SpA (“Esmax”), a leading diversified downstream fuels and lubricants retailer in Chile. Esmax has a national presence that includes retail fuel stations, airport operations, fuel distribution terminals and a lubricant blending plant.

In September 2023, Aramco signed definitive agreements to acquire a strategic minority stake in MidOcean Energy for $500 million. MidOcean Energy is a liquefied natural gas (LNG) company formed and managed by EIG, a leading institutional investor in the global energy and infrastructure sectors.
This strategic partnership with MidOcean Energy marked Aramco’s first international investment in LNG.
Moreover, in May 2024, Aramco made further progress in its global retail expansion by completing the acquisition of a 40% equity stake in Gas & Oil Pakistan Ltd. (“GO”).
GO is a diversified downstream fuels, lubricants and retail store operator in Pakistan with a network of more than 1,200 retail fuel stations. The acquisition, first announced in December 2023, represented Aramco’s first downstream retail investment in Pakistan and signaled the company’s growing retail presence in high-value markets.
In June this year, Saudi Aramco signed agreements to acquire a 10% equity interest in HORSE Powertrain Limited, the new global powertrain solutions company, alongside Renault Group, Zhejiang Geely Holding Group, and Geely Automobile Holdings Limited (“Geely”).
HORSE Powertrain Limited was formed on May 31, 2024, by Renault Group and Geely and is incorporated and headquartered in London.
Commenting on the signing of the recent agreement with Petro Rabigh, Hussain Al-Qahtani, Aramco Senior Vice President of Fuels, said: “Aramco continues to identify opportunities to strengthen its downstream value chain, secure placement of its upstream crude oil with affiliated refineries, and convert more of its hydrocarbons into high-value materials.”
He continued: “By increasing our shareholding, we expect to achieve even closer integration with Petro Rabigh and facilitate its turnaround strategy. We look forward to building on our existing relationship with Petro Rabigh, in alignment with our strategic goals.”