عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Oil Climbs $1 as Price Drop Triggers Buying; Oversupply Worries Weigh

FILE PHOTO: An oil pumpjack operates near Williston, North Dakota January 23, 2015. REUTERS/Andrew Cullen/File Photo
FILE PHOTO: An oil pumpjack operates near Williston, North Dakota January 23, 2015. REUTERS/Andrew Cullen/File Photo
TT
TT

Oil Climbs $1 as Price Drop Triggers Buying; Oversupply Worries Weigh

FILE PHOTO: An oil pumpjack operates near Williston, North Dakota January 23, 2015. REUTERS/Andrew Cullen/File Photo
FILE PHOTO: An oil pumpjack operates near Williston, North Dakota January 23, 2015. REUTERS/Andrew Cullen/File Photo

Oil gained more than $1 per barrel on Tuesday, rebounding on technical factors and bargain hunting after a decision by OPEC+ to boost output sent prices down the previous session, although concerns about the market surplus outlook persisted.

Brent crude futures rose $1.15 to $61.38 a barrel by 0623 GMT, the first time gain after six consecutive declines, while US West Texas Intermediate crude added $1.11 to $58.24 a barrel.

Both benchmarks had settled at their lowest since February 2021 on Monday, driven by an OPEC+ decision over the weekend to further speed up oil production hikes for a second consecutive month.

"Today’s slight rebound in oil prices appears more technical than fundamental," said Yeap Jun Rong, a market strategist at IG. "Persistent headwinds including a pivotal shift in OPEC+ production strategy, uncertain demand amid US tariff risks, and price forecast downgrades are continuing to weigh on the broader price movement."

Driven by expectations that production will exceed consumption, oil has lost over 10% in six straight sessions and dipped over 20% since April when US President Donald Trump's tariff shocks prompted increased bets on a slowdown in the global economy.

The return of Chinese market participants after a five-day public holiday since May 1 was seen supporting prices on Tuesday.

"China also reopened today, and being the largest importer, buyers would have likely jumped to secure oil at current low levels," said Priyanka Sachdeva, senior market analyst at Phillip Nova.

Also lending some support was data showing a pick-up in services sector's growth in the US, the world's major oil consumer, as orders increased.

The Institute for Supply Management (ISM) said on Monday its nonmanufacturing purchasing managers index (PMI) increased to 51.6 last month from 50.8 in March. Economists polled by Reuters had forecast the services PMI dipping to 50.2.

The US Federal Reserve will likely leave interest rates unchanged on Wednesday as tariffs roil the economic outlook.

Barclays lowered its Brent crude forecast on Monday by $4 to $70 a barrel for 2025 and set its 2026 estimate at $62 a barrel, citing "a rocky road ahead for fundamentals" amid escalating trade tensions and OPEC+'s pivot in its production strategy.

Goldman Sachs also lowered its oil price forecast on Monday by $2-3 per barrel, as they now expect another 400,000 barrels per day production increase by OPEC+ in July.

Most Viewed

 
 
Business

Kuwait Plans to Return to Globat Debt Market to Finance Development Projects

Undersecretary of the Ministry of Finance Aseel Al-Munifi and Director of Public Debt at the Finance Ministry Faisal Al-Muzaini speak during a presentation of the new debt law. (KUNA)
Undersecretary of the Ministry of Finance Aseel Al-Munifi and Director of Public Debt at the Finance Ministry Faisal Al-Muzaini speak during a presentation of the new debt law. (KUNA)
TT
TT

Kuwait Plans to Return to Globat Debt Market to Finance Development Projects

Undersecretary of the Ministry of Finance Aseel Al-Munifi and Director of Public Debt at the Finance Ministry Faisal Al-Muzaini speak during a presentation of the new debt law. (KUNA)
Undersecretary of the Ministry of Finance Aseel Al-Munifi and Director of Public Debt at the Finance Ministry Faisal Al-Muzaini speak during a presentation of the new debt law. (KUNA)

Kuwait plans to return to the global debt market this year and is expected to borrow between $10 to $20 billion during the current fiscal year to finance development projects, a finance ministry official said on Monday.

On March 26, the Kuwaiti government issued a debt law that sets the public debt ceiling at a maximum of 30 billion Kuwaiti dinar (about $97 billion), or its equivalent in major convertible foreign currencies. The law also allows the issuance of financial instruments with maturities of up to 50 years.

It is valid for 50 years from the date of its entry into force, establishing a long-term legal framework for regulating public borrowing and liquidity management in Kuwait.

Director of Public Debt at the Finance Ministry Faisal Al-Muzaini said during a presentation of the new debt law that the ratio of debt to gross domestic product (GDP) in Kuwait is minuscule at just 2.9%, whereas it is 60 to 70% in many countries.

Al-Muzaini announced that Kuwait is returning to the financial markets, both domestic and international, for borrowing in the 2025/2026 fiscal year.

He described the move as the largest financial market entry in over eight years, hailing the law as a landmark in public finance reform and saying stating it provides the government with a robust legal framework for managing public debt.

The framework allows for debt maturities of up to 50 years and sets a borrowing ceiling of 30 billion Kuwaiti dinar (approximately $92 billion).

Al-Muzaini added that the Ministry of Finance has outlined a flexible strategy to engage confidently with financial markets while prioritizing competitive financing costs and diversifying the investor base both geographically and institutionally.

One key focus, he said, is developing the local debt market by establishing a yield curve that will serve as a benchmark for future issuances.

“This law sends a strong message of fiscal discipline and credibility to global markets,” Al-Muzaini said. “It is expected to contribute to enhancing Kuwait’s credit profile, drawing wider investor interest, and advancing the country’s transition toward a diversified economy.”

Undersecretary of the Finance Ministry Aseel Al-Munifi said on Monday that the law aims to stimulate the economic environment, attract foreign investments and boost developmental and economic returns for the state. The law, which came into effect on March 27, also seeks to bolster the banking sector and improve fiscal stability, she said.

Al-Munifi explained that the legislation equips the government with modern financial tools, enabling access to both local and international financial markets. These tools, she said, will help secure funding for key development projects.

“The law will support the restructuring of government financing, reduce borrowing costs, and strengthen Kuwait’s credit rating,” she said. “It reflects positively on the state’s borrowing capabilities under competitive conditions and helps build up financial reserves to meet commitments amid evolving economic circumstances.”

Al-Munifi also noted that the new law will serve as an essential mechanism for financing major national projects, particularly in infrastructure, housing, education, and healthcare — sectors included in the government’s general budget for the next five years.

Moreover, she revealed that preparations for the issuance of the long-anticipated Sukuk Law have been finalized. “The draft has been completed by the Ministry and is currently under discussion in relevant Cabinet committees. It will soon proceed through the constitutional procedures for final approval,” she said.