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Saudi Railways Merger is a Step to Boost Transport Sector Privatization

Image used for illustrative purpose. Freight train is seen on a railway station in Riyadh that links Riyadh and the port of Dammam in Saudi Arabia REUTERS/Fahad Shadeed
Image used for illustrative purpose. Freight train is seen on a railway station in Riyadh that links Riyadh and the port of Dammam in Saudi Arabia REUTERS/Fahad Shadeed
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Saudi Railways Merger is a Step to Boost Transport Sector Privatization

Image used for illustrative purpose. Freight train is seen on a railway station in Riyadh that links Riyadh and the port of Dammam in Saudi Arabia REUTERS/Fahad Shadeed
Image used for illustrative purpose. Freight train is seen on a railway station in Riyadh that links Riyadh and the port of Dammam in Saudi Arabia REUTERS/Fahad Shadeed

The merger between Saudi Railway Co. (SAR) and Saudi Railways Organization (SRO) is an important step in privatizing some of the transport sector works, said Saudi Minister of Transport and SAR chairman Saleh Bin Nasser Al Jasser.

The merger will contribute to raising efficiency and flexibility and will enhance the effectiveness of services to achieve an optimal investment of resources, Al Jasser said, the Saudi Press Agency reported.

The merger will also open up broader development horizons in operation and investment in a way that will reflect positively on the services provided to the beneficiaries of passengers, institutions, and various entities.

"This will positively reflect on the national economy, enhance the capabilities of local content, and increase job opportunities in the transport sector," the minister added.

For his part, SAR CEO Bashar Al Malik confirmed that the merger will enhance SAR’s capabilities and open up prospects for local and foreign investors in diverse fields, including manufacturing, operations, implementation, research and development, and others.

It will also enhance the local content in these projects with the active participation of the private sector, he added.

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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)
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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.