Oil Exceeds $70 As Brent Settles

A worker looks at a pump jack at an oil field Buzovyazovskoye owned by Bashneft company north from Ufa, Bashkortostan, Russia, July 11, 2015. (File Photo: Reuters/Sergei Karpukhin)
A worker looks at a pump jack at an oil field Buzovyazovskoye owned by Bashneft company north from Ufa, Bashkortostan, Russia, July 11, 2015. (File Photo: Reuters/Sergei Karpukhin)
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Oil Exceeds $70 As Brent Settles

A worker looks at a pump jack at an oil field Buzovyazovskoye owned by Bashneft company north from Ufa, Bashkortostan, Russia, July 11, 2015. (File Photo: Reuters/Sergei Karpukhin)
A worker looks at a pump jack at an oil field Buzovyazovskoye owned by Bashneft company north from Ufa, Bashkortostan, Russia, July 11, 2015. (File Photo: Reuters/Sergei Karpukhin)

Oil prices reached jumped to their highest in years despite warnings that the 13 percent increase of crude oil could end soon.

Brent crude futures settled 6 cents higher at $69.26 a barrel, after hitting $70.05 a barrel during the session, its highest level since November 2014. Brent’s settlement still represents a three-year closing high amid signs of tightening supply in the United States.

Brent has gained 5 percent since the beginning of the year, picking up from its late-year surge.

US West Texas Intermediate (WTI) crude futures settled at $63.94 a barrel, up 37 cents, the highest since December 2014.

On Wednesday, the US Energy Information Administration said crude inventories fell almost 5 million barrels to 419.5 million barrels last week. Production slowed by nearly 300,000 barrels per day.

The decrease is expected to be short-termed which, according to analysts, is attributed to colder-than-usual weather across the United States last week. This is also suspended production in North America.

UAE Energy Minister and OPEC President Suhail al-Mazrouei said he expects the market to balance in 2018 and that the producer group is committed to its supply-reduction pact until the end of this year.

“OPEC is committed to what they have decided when we met in November (2017)...to continue this for a full year,” Mazrouei said in Abu Dhabi.

He added that more time is needed to achieve a full balance between oil supply and demand, as he expects market balance to be achieved in 2018 but more time is needed to drain the supply overhang.

Mazrouei also stated he was not worried about a supply shock due to the crude output declines in Venezuela and political unrest in Iran.



Madinah Investment Forum to Kick Off on Sunday

Madinah Investment Forum to Kick Off on Sunday
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Madinah Investment Forum to Kick Off on Sunday

Madinah Investment Forum to Kick Off on Sunday

The Madinah Investment Forum, organized by Al-Madinah Al-Munawwarah Chamber under the theme "Invest in Madinah", will start on Sunday and run for two days.
The forum consists of a diverse range of programs, events, and four specialized dialogue sessions focusing on key aspects of the national investment strategy. It will host 18 speakers and more than 40 entities, and present 200 investment opportunities, valued at over SAR57 billion, in more than ten targeted sectors, SPA reported.
The event will highlight Madinah's significant achievements and showcase development and investment projects in the region. It will explore promising investment sectors, comparative and competitive advantages, and the region's potential to support investment growth. Key areas of focus include hospitality, logistics, agriculture, and real estate.
The forum's objectives include identifying investment opportunities in Madinah, fostering investment partnerships, attracting new investments, and introducing financing solutions and business sector services for major development projects.
The event is aimed at a broad audience, including local and international investors, government agencies, development organizations, private sector representatives, investment agencies, financial institutions, consulting firms, and professional service providers.