Oil Falls Below $75 on Risk-Averse Mood, US Gulf Output

FILE PHOTO: The sun sets behind the chimneys of the Total Grandpuits oil refinery, southeast of Paris, France, March 1, 2021. REUTERS/Christian Hartmann
FILE PHOTO: The sun sets behind the chimneys of the Total Grandpuits oil refinery, southeast of Paris, France, March 1, 2021. REUTERS/Christian Hartmann
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Oil Falls Below $75 on Risk-Averse Mood, US Gulf Output

FILE PHOTO: The sun sets behind the chimneys of the Total Grandpuits oil refinery, southeast of Paris, France, March 1, 2021. REUTERS/Christian Hartmann
FILE PHOTO: The sun sets behind the chimneys of the Total Grandpuits oil refinery, southeast of Paris, France, March 1, 2021. REUTERS/Christian Hartmann

Oil dropped more than $1 a barrel to below $75 on Monday as rising risk aversion weighed on stock markets and boosted the US dollar, while more US Gulf oil output came back online in the wake of two hurricanes.

The dollar rallied to its highest in a month on Monday as pending catastrophe at developer China Evergrande added to a cautious mood and as investors braced for the Federal Reserve to take another step towards tapering this week, Reuters reported.

"Far East stock markets and the strong dollar are affecting oil," said Tamas Varga of oil broker PVM. "Nonetheless, unless all hell breaks loose, the positive sentiment ought to prevail."

Brent crude fell 76 cents, or 1%, to $74.58 at 0815 GMT, having dropped as low as $74.26 earlier in the session.

US West Texas Intermediate (WTI) declined 89 cents, or 1.2%, to $71.08.

A stronger dollar makes US dollar-priced oil more expensive for holders of other currencies and generally reflects higher risk aversion, which tends to weigh on oil prices.

Brent has gained 44% this year, supported by supply cuts by the Organization of the Petroleum Exporting Countries and allies and some recovery in demand after last year's pandemic-induced collapse.

Oil had gained additional support from supply shutdowns in the US Gulf of Mexico due to the two recent hurricanes, but as of Friday producing companies had just 23% of crude production offline, or 422,078 barrels per day.

"US production in the Gulf of Mexico, which had been shut down as a result of the hurricane, is gradually returning to the market," said Carsten Fritsch, analyst at Commerzbank.

A rise in the US rig count, an early indicator of future output, to its highest since April 2020 also kept a lid on prices.



Saudi Arabia Urges Global Action to Tackle Energy Poverty

Saudi Finance Minister Mohammed Al-Jadaan speaks at the forum in Vienna on Tuesday. (SPA)
Saudi Finance Minister Mohammed Al-Jadaan speaks at the forum in Vienna on Tuesday. (SPA)
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Saudi Arabia Urges Global Action to Tackle Energy Poverty

Saudi Finance Minister Mohammed Al-Jadaan speaks at the forum in Vienna on Tuesday. (SPA)
Saudi Finance Minister Mohammed Al-Jadaan speaks at the forum in Vienna on Tuesday. (SPA)

Saudi Finance Minister Mohammed Al-Jadaan underscored on Tuesday the critical role of economic reforms in securing basic needs for individuals and communities to achieve prosperity and tackle developmental challenges.

Speaking at the opening session of the 2025 OPEC Fund for International Development Forum in Vienna, he highlighted the urgent need to address “energy poverty” affecting around 1.2 billion people worldwide.

Al-Jadaan emphasized that energy security is not a luxury, but a fundamental pillar for inclusive development and growth.

He warned that its absence disrupts vital sectors, such as healthcare, education, economic productivity, environmental sustainability, and even water extraction and food security.

The minister pointed to geopolitical tensions, market volatility, and rising global energy demand as pressing factors compelling nations to adopt strategic approaches to bolster energy security.

He called for diversifying energy sources, boosting investments in clean technologies, and embracing innovative financing solutions to accelerate energy access and support long-term sustainability.

Moreover, Al-Jadaan urged development banks to take effective action, outlining four key areas for focus. First, he stressed the need for multilateral development banks to support all energy sources impartially.

He cautioned against unrealistic emissions-cutting policies that exclude major energy sources, warning such moves could destabilize energy markets and disproportionately affect developing countries and communities.

Second, he highlighted the importance of concessional financing to speed up energy access in underserved regions.

He praised the World Bank-led “Mission 300” initiative aimed at providing energy to 300 million people in Africa, with significant contributions from partners including the Islamic Development Bank and the OPEC Fund for International Development.

Third, Al-Jadaan discussed lowering investment risks in the energy sector to attract private sector participation.

He pointed to tools such as partial risk guarantees, political risk insurance, and blended finance structures as vital in enhancing the financial viability of energy projects, especially in low-income, high-risk countries.

The fourth focus area called for increased investment in emerging energy technologies, including carbon capture, utilization and storage (CCUS), and more sustainable uses of hydrocarbons.

These efforts, he said, would bolster energy security while addressing carbon emissions in the transition toward net zero.

Al-Jadaan warned that the impacts of energy poverty transcend borders, fueling economic instability, increasing migration pressures, and raising humanitarian burdens worldwide.

He reaffirmed Saudi Arabia’s commitment to working with international partners to strengthen energy security and eradicate energy poverty alongside its climate change initiatives.

Furthermore, Al-Jadaan highlighted the Kingdom’s ambitious targets: generating 50% of its electricity from renewable sources by 2030 and achieving net-zero emissions by 2060, within a circular carbon economy framework.

Global cooperation is essential to achieving fair, sustainable development that benefits all, he stressed.