Total Value of Awarded Contracts in Saudi Arabia Reaches $12 Billion in Q1

Buildings are seen in Riyadh, Saudi Arabia. (File Photo: Reuters)
Buildings are seen in Riyadh, Saudi Arabia. (File Photo: Reuters)
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Total Value of Awarded Contracts in Saudi Arabia Reaches $12 Billion in Q1

Buildings are seen in Riyadh, Saudi Arabia. (File Photo: Reuters)
Buildings are seen in Riyadh, Saudi Arabia. (File Photo: Reuters)

The total value of awarded contracts across Saudi Arabia for Q1 in 2020 reached $12 billion, with a 28 percent quarter-on-quarter growth despite the repercussions of the coronavirus pandemic, according to a report by the US Saudi Business Council (USSBC).

The awarded contracts included numerous mega-projects across several sectors, with the military sector gaining $4 billion deals followed by oil and gas with $3 billion and petrochemicals ($2.2 billion).

These three sectors accounted for 76 percent of all awarded contracts alone, while the other contributing sectors included water, power, and real estate.

According to the report, it seems that Saudi Aramco is ready to continue awarding giant contracts in the oil and gas sector despite the impact of the COVID-19 on the economy.

Aramco goes ahead with its efforts to expand the Kingdom's capabilities in extracting hydrocarbons to meet local and global demand.

The experts also noted that the government capital spending during the first quarter of 2020 is a strong indicator of the strength of the construction sector.

When compared to the same period in 2019, the value of the contracts is down by 8 percent.

USSBC Member al-Baraa al-Wazir told Asharq Al-Awsat that the Kingdom began easing the measures imposed during the lockdown and opened shopping centers and resumed domestic flights as of the end of May.

Wazir indicated that these measures will lead to the gradual recovery of the economy, expecting Aramco to award a number of contracts in al-Ghawar southern field during the second quarter.

He also predicted that the Saudi National Water Company will award a major project contract in the industrial city of Jubail.



Oil Steadies as Market Awaits Fresh US Tariffs

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
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Oil Steadies as Market Awaits Fresh US Tariffs

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo

Oil prices were little changed on Wednesday as traders remained cautious ahead of US tariffs due to be announced at 2000 GMT, fearing they could exacerbate a global trade war and dampen demand for crude.

Brent futures were down 7 cents, or 0.09%, at $74.42 a barrel by 0858 GMT. US West Texas Intermediate crude futures fell 5 cents, or 0.07%, to $71.15.

The White House confirmed on Tuesday that President Donald Trump will impose new tariffs on Wednesday, though it provided no detail on the size and scope of the trade barriers, according to Reuters.

Trump's tariff policies could stoke inflation, slow economic growth and escalate trade disputes.

"Crude prices have paused last month's rally, with Brent finding some resistance above $75, with the focus for now turning from a sanctions-led reduction in supply to Trump's tariff announcement and its potential negative impact on growth and demand," said Ole Hansen, head of commodity strategy at Saxo Bank.

Traders will be watching for levies on crude imports, potentially driving up prices of refined products, he added.

For weeks Trump has touted April 2 as "Liberation Day", bringing new duties that could rattle the global trade system.

The White House announcement is scheduled for 4 p.m. ET (2000 GMT).

"The balance of risk lies to the downside, given that weaker than expected tariff measures are unlikely to drive a significant rally in Brent, while stronger than expected measures could trigger a substantial selloff," BMI analysts said in a note.

Trump has also threatened to impose secondary tariffs on Russian oil and on Monday he ramped up sanctions on Iran as part of his administration's "maximum pressure" campaign to cut its exports.

"Markets likely to be volatile ahead of the final announcements on tariffs and the scale of them. The threat of secondary tariffs on Russian crude continues to provide some support for prices, with more downside risk at present around tariff uncertainty," said Panmure Liberum analyst Ashley Kelty.

US oil and fuel inventories painted a mixed picture of supply and demand in the world's biggest producer and consumer.

US crude oil inventories rose by 6 million barrels in the week ended March 28, according to sources citing the American Petroleum Institute. Gasoline inventories, however, fell by 1.6 million barrels and distillate stocks were down by 11,000 barrels, the sources said.

Official US crude oil inventory data from the Energy Information Administration is due later on Wednesday.