Oil Prices Steady ahead of Trump's Threatened Tariffs on Canada, Mexico

An offshore oil rig is pictured off the coast of Huntington Beach, California, US, November 14, 2024. (Reuters)
An offshore oil rig is pictured off the coast of Huntington Beach, California, US, November 14, 2024. (Reuters)
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Oil Prices Steady ahead of Trump's Threatened Tariffs on Canada, Mexico

An offshore oil rig is pictured off the coast of Huntington Beach, California, US, November 14, 2024. (Reuters)
An offshore oil rig is pictured off the coast of Huntington Beach, California, US, November 14, 2024. (Reuters)

Oil prices were little changed on Thursday as investors focused on tariffs threatened by US President Donald Trump on Mexico and Canada, the two largest suppliers of crude to the United States.

Brent crude futures were down 10 cents at $76.48 a barrel at 1318 GMT. US crude futures were down 16 cents to $72.46. US crude futures had settled at their lowest price this year on Wednesday.

"All oil considerations are in the shadow of what tariffs might be announced on Canada and Mexico," said John Evans, an analyst at oil broker PVM. Markets are "mesmerised by what will come after February 1 when any trade restrictions are promised to be unveiled."

The White House on Tuesday reaffirmed Trump's plan to impose 25% tariffs on imports from Canada and Mexico. On Wednesday, the president's nominee to run the Commerce Department said the two countries can avoid this if they act swiftly to close their borders to fentanyl, Reuters reported.

However, IG market analyst Tony Sycamore said traders had already priced in Trump's tariffs: "(this is) a major reason why crude oil is trading where it is."

Winter storms hit US demand last week, with crude oil stockpiles in the US rising by 3.5 million barrels as refiners cut production. Analysts had expected a 3.2 million-barrel rise, according to a Reuters poll.

On the supply side, the latest US sanctions on Moscow are squeezing crude oil exports from Russia's western ports, which are set to fall 8% in February from the January plan as Moscow boosts refining, traders said and Reuters calculations showed.

Investors are also looking ahead to a meeting by the Organization of the Petroleum Exporting Countries and its allies including Russia, together called OPEC+, scheduled for Feb. 3.

The group is set to discuss Trump's efforts to raise US oil production and take a joint stance on the matter, Kazakhstan said on Wednesday.



Custodian of the Two Holy Mosques Approves Saudi Riyal Symbol

Custodian of the Two Holy Mosques Approves Saudi Riyal Symbol
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Custodian of the Two Holy Mosques Approves Saudi Riyal Symbol

Custodian of the Two Holy Mosques Approves Saudi Riyal Symbol

Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud approved on Thursday the Saudi riyal symbol in a historic move that will reinforce the Saudi currency's identity.

SAMA Governor Ayman Al-Sayari extended his profound appreciation to the Custodian of the Two Holy Mosques and Prince Mohammed bin Salman bin Abdulaziz Al Saud, Saudi Crown Prince and Prime Minister, for launching the Saudi riyal symbol.

A Saudi Central Bank (SAMA) statement quoted Al-Sayari as saying that this decision reinforces Saudi Arabia's financial identity locally, regionally, and internationally. He indicated that the implementation of the new symbol will be gradual for financial and commercial transactions, with coordination across all relevant entities.

Al-Sayari said this initiative aims to promote national identity and cultural belonging, highlight the role of the national currency, and showcase the Kingdom among major global economies and G20 members. The initiative also signifies the increasingly important role of the national currency in the global financial ecosystem.

The Saudi riyal symbol

The governor acknowledged the collaborative efforts that have facilitated this achievement, extending his appreciation to all contributing entities involved in the symbol's development project led by SAMA, including the Ministry of Culture, the Ministry of Media, and the Saudi Standards, Metrology and Quality Organization.

According to the statement, the Saudi riyal symbol, developed to the highest technical standards, embodies the Kingdom's rich cultural heritage, carrying the name of the national currency "Riyal" in a design derived from Arabic calligraphy.

"The symbol will streamline the representation of the Saudi riyal in local, regional, and international contexts, making it suitable for use in referring to the Saudi riyal in all financial and commercial transactions," said the statement.

As Saudi Arabia advances its Vision 2030 agenda, the launch of the symbol solidifies the importance of the Kingdom's financial system and its increasing role regionally and internationally.