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Oil Set for First Weekly Decline in Seven Weeks ahead of US-Iran Talks

The sun rises behind the Tishrin oil field in the eastern Hasakah countryside, northeastern Syria (AP)
The sun rises behind the Tishrin oil field in the eastern Hasakah countryside, northeastern Syria (AP)
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Oil Set for First Weekly Decline in Seven Weeks ahead of US-Iran Talks

The sun rises behind the Tishrin oil field in the eastern Hasakah countryside, northeastern Syria (AP)
The sun rises behind the Tishrin oil field in the eastern Hasakah countryside, northeastern Syria (AP)

US crude futures rose slightly on Friday but were on track for their first weekly drop in seven weeks as supply concerns eased, and investors focused on the outcome of US-Iran nuclear talks in Oman later in the day.

Brent crude futures rose 25 cents, or 0.4%, to $67.80 a barrel at 0353 GMT, ‌while the US ‌West Texas Intermediate crude was also ‌up ⁠25 cents, ‌or 0.4%, at $63.54 a barrel.

The benchmarks are down more than 3% from near six-month highs reached in late January when US President Donald Trump threatened to strike Iran, with the two sides set to hold talks in Oman on Friday.

However, Tehran and Washington have not agreed on the agenda for the ⁠meeting. Iran wants to discuss only nuclear issues, while the US is ‌pressing to include Iran's ballistic missiles, support ‍for armed groups around ‍the region and the treatment of its people.

"The two ‍sides remain well apart, leaving tensions elevated. This should see the geopolitical risk premium remain in place," Daniel Hynes, an analyst at ANZ, said in a note on Friday.

Any escalation of tensions between the US and Iran could disrupt oil flows, as about a fifth of the world's ⁠total oil consumption passes through the Strait of Hormuz between Oman and Iran.

Saudi Arabia, the United Arab Emirates, Kuwait and Iraq export most of their crude via the strait, as does their fellow OPEC member Iran.

If the US-Iran talks ease the prospect of conflict in the region, oil prices could decline further.

"We think that geopolitical fears will give way to weak fundamentals," Capital Economics analysts said in a note, pointing to a recovery in Kazakhstan's oil output which will help push ‌oil prices lower, towards $50 per barrel by end-2026.

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Business

Caspian Pipeline Consortium Oil Loadings Suspended After Drone Attacks on Tankers, CPC Says

The full moon rises in the background over the infrastructure on D Island, the main processing hub, at the Kashagan offshore oil field in the Caspian sea in western Kazakhstan August 21, 2013. (Reuters)
The full moon rises in the background over the infrastructure on D Island, the main processing hub, at the Kashagan offshore oil field in the Caspian sea in western Kazakhstan August 21, 2013. (Reuters)
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Caspian Pipeline Consortium Oil Loadings Suspended After Drone Attacks on Tankers, CPC Says

The full moon rises in the background over the infrastructure on D Island, the main processing hub, at the Kashagan offshore oil field in the Caspian sea in western Kazakhstan August 21, 2013. (Reuters)
The full moon rises in the background over the infrastructure on D Island, the main processing hub, at the Kashagan offshore oil field in the Caspian sea in western Kazakhstan August 21, 2013. (Reuters)

Two oil tankers were attacked at the Caspian Pipeline Consortium (CPC) terminal off Russia's Black Sea coast, CPC said on Sunday, adding that oil loadings are suspended.

The ASIA and NISSOS IOS ‌tankers were ‌attacked during loading operations, ‌CPC ⁠said.

The ASIA ⁠tanker caught fire, which was extinguished, it added.

"There were no injuries or fatalities amongst CPC staff or contractors. There was no oil ⁠spill," CPC said, adding ‌that ‌the tankers remained afloat.

CPC did not ‌identify any party as ‌responsible for the incident.

The past week has seen a sharp escalation in attacks by ‌both Russia and Ukraine on shipping in the Black ⁠and ⁠Azov seas.

The CPC is a 940-mile (1,510 km) oil pipeline connecting Kazakhstan's Caspian Sea oil deposits with Russia's Black Sea port of Novorossiysk. Oil loaded at Novorossiysk is then taken by tanker to world markets.

CPC accounts for about 80% of Kazakhstan’s oil exports.

Business

Chinese Company Demands Compensation from the UK Over British Steel Nationalization

Workers work at the British Steel site in Scunthorpe, Lincolnshire, Britain April 17, 2025. (Reuters)
Workers work at the British Steel site in Scunthorpe, Lincolnshire, Britain April 17, 2025. (Reuters)
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Chinese Company Demands Compensation from the UK Over British Steel Nationalization

Workers work at the British Steel site in Scunthorpe, Lincolnshire, Britain April 17, 2025. (Reuters)
Workers work at the British Steel site in Scunthorpe, Lincolnshire, Britain April 17, 2025. (Reuters)

The Chinese company that formerly owned British Steel demanded Sunday compensation from the UK government for investment losses following the nationalization of the manufacturer last week.

The British government took operational control of the company last year after Jingye Group said that it was considering closing the blast furnaces at its Scunthorpe plant in northern England, the last in the United Kingdom to make “virgin steel” from raw materials.

Jingye Group said in a WeChat statement that the nationalization move tarnished the credibility of the British government, spooked international investors and caused great losses to the company’s operation and British taxpayers' funds. It also demanded that the UK government stop “trampling on international investment rules.”

The Chinese company announced it had initiated negotiation procedures under relevant bilateral investment agreements, reserving all rights, including to international arbitration. Jingye said it will also represent British taxpayers seeking to hold the UK government and British Steel’s management legally liable. However, it did not specify how it would handle the case.

“The UK disregarded Jingye's continuous investment and significant contribution and was only willing to provide almost zero compensation,” it said.

An independent evaluation will be carried out to determine whether any compensation will be paid to Jingye Group, the UK government said last week.

The Department for Business and Trade announced the move on July 17, saying it would save thousands of jobs and protect the UK’s national interest by ensuring a supply of domestically produced steel for major construction projects and the defense industry.

British Steel and its forebears have been making steel at Scunthorpe for more than 130 years, building on the UK’s development of improved steelmaking technology during the Industrial Revolution. The plant currently employs about 2,700 people.

Jingye bought British Steel in 2020 and said it saved the steel company from crisis.

The Chinese Foreign Ministry on Saturday said the way the UK handles the issue would directly influence how Chinese investors view the British investment environment and the credibility of the British government.

“China urges the UK to earnestly respect market principles and the spirit of contract, and find solutions on compensation and other issues acceptable to both sides,” it said in a statement.

It added China supports enterprises in safeguarding their legitimate rights through legal means.

Business

ACWA Power to Lead Saudi Arabia’s Green Hydrogen Export Drive

The NEOM Green Hydrogen Project (NEOM) 
The NEOM Green Hydrogen Project (NEOM) 
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ACWA Power to Lead Saudi Arabia’s Green Hydrogen Export Drive

The NEOM Green Hydrogen Project (NEOM) 
The NEOM Green Hydrogen Project (NEOM) 

Saudi Arabia is opening a new chapter in its energy export strategy by entrusting ACWA Power with exporting green hydrogen and its derivatives, while also tasking the company with developing projects to generate, transmit and export renewable electricity, including interconnection links with Europe and the Arab world.

The move reinforces the Kingdom’s strategy of expanding its presence in low-carbon energy markets, building on major investments in renewable energy and clean fuels, led by the NEOM Green Hydrogen Project, one of the world’s largest of its kind and a cornerstone of Saudi Arabia’s future export ambitions.

According to a filing by ACWA Power with the Saudi Exchange (Tadawul), the government has granted the company exclusive rights to export green hydrogen and its derivatives, including green ammonia, green methanol, green methane and other fuels produced using green hydrogen.

Fuad Al-Zayer, an energy adviser and former head of the information department at the Organization of the Petroleum Exporting Countries (OPEC), said ACWA Power was a natural choice given its scale and market position. He noted that the company has more than $124 billion in assets, nearly 98 gigawatts of generation capacity—including over 52 GW from renewable sources—and projects in 15 countries.

Al-Zayer told Asharq Al-Awsat that the decision strengthens the company’s position in the green hydrogen sector, which Saudi Arabia sees as a key pillar of the global transition to clean energy. He added that the Kingdom’s abundant solar and wind resources make renewable energy and green hydrogen economically competitive, supporting Vision 2030’s target of raising renewables’ share of electricity generation to around 50 percent by the end of the decade.

The NEOM Green Hydrogen Project is expected to produce about 600 tons of green hydrogen a day in the form of green ammonia once fully operational, with the first export shipments anticipated in 2027.

Al-Zayer said Europe is expected to be the primary market as it seeks secure low-carbon energy supplies. He added that Saudi Arabia’s strategic location and its large-scale projects in the Kingdom’s northwest give it a competitive advantage in serving European markets. Partnerships with countries including Italy, France and South Korea are also helping develop the supply chains and infrastructure needed to expand the global green hydrogen trade.

Despite the sector’s rapid growth, he said continued investment in transport, storage, electrolysis facilities, water supply and logistics will be essential to support production and exports. Over the next decade, exports of renewable electricity and green hydrogen are expected to transform Saudi Arabia into a reliable supplier of multiple forms of energy while reducing domestic crude oil consumption for power generation, freeing up larger volumes for export and creating new sources of economic growth.