Prospects for Improved Egypt-Sudan Trade Ties

The Eshkeet crossing on the Egyptian-Sudanese border. Asharq Al-Awsat
The Eshkeet crossing on the Egyptian-Sudanese border. Asharq Al-Awsat
TT

Prospects for Improved Egypt-Sudan Trade Ties

The Eshkeet crossing on the Egyptian-Sudanese border. Asharq Al-Awsat
The Eshkeet crossing on the Egyptian-Sudanese border. Asharq Al-Awsat

Egypt and Sudan have concluded trade talks described as successful following months of chill in the economic relations of the two neighboring countries.

Sudanese Minister of Trade Hatim Al-Sir, who was in Egypt to attend a forum in the resort of Sharm el-Sheikh, met with his Egyptian counterpart Tareq Qabil in Cairo on Thursday.

The two ministers discussed ways to revive economic agreements between the two countries.

They agreed to hold technical meetings at the level of experts, followed by a joint ministerial committee meeting in order to announce a trade and economic deal that solves all pending issues.

Trade relations between the two countries suffered from a chill after Sudan’s ban last year of the import of Egyptian products. This prompted a similar move by Cairo which stopped the entry of several Sudanese products that used to reach the Egyptian market without permits and licenses.

Following Thursday’s talks with Qabil, Al-Sir said that the Sudanese leadership is keen on the reactivation of trade ties and the increase in trade volume with Egypt.

As for the Egyptian minister, he stressed Cairo’s keenness on activating and implementing agreements signed between the two countries.



Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
TT

Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices were little changed on Thursday as investors weighed firm winter fuel demand expectations against large US fuel inventories and macroeconomic concerns.

Brent crude futures were down 3 cents at $76.13 a barrel by 1003 GMT. US West Texas Intermediate crude futures dipped 10 cents to $73.22.

Both benchmarks fell more than 1% on Wednesday as a stronger dollar and a bigger than expected rise in US fuel stockpiles pressured prices.

"The oil market is still grappling with opposite forces - seasonal demand to support the bulls and macro data that supports a stronger US dollar in the medium term ... that can put a ceiling to prevent the bulls from advancing further," said OANDA senior market analyst Kelvin Wong.

JPMorgan analysts expect oil demand for January to expand by 1.4 million barrels per day (bpd) year on year to 101.4 million bpd, primarily driven by increased use of heating fuels in the Northern Hemisphere.

"Global oil demand is expected to remain strong throughout January, fuelled by colder than normal winter conditions that are boosting heating fuel consumption, as well as an earlier onset of travel activities in China for the Lunar New Year holidays," the analysts said.

The market structure in Brent futures is also indicating that traders are becoming more concerned about supply tightening at the same time demand is increasing.

The premium of the front-month Brent contract over the six-month contract reached its widest since August on Wednesday. A widening of this backwardation, when futures for prompt delivery are higher than for later delivery, typically indicates that supply is declining or demand is increasing.

Nevertheless, official Energy Information Administration (EIA) data showed rising gasoline and distillates stockpiles in the United States last week.

The dollar strengthened further on Thursday, underpinned by rising Treasury yields ahead of US President-elect Donald Trump's entrance into the White House on Jan. 20.

Looking ahead, WTI crude oil is expected to oscillate within a range of $67.55 to $77.95 into February as the market awaits more clarity on Trump's administration policies and fresh fiscal stimulus measures out of China, OANDA's Wong said.