Oman Exports First Ammonia Shipment

The Sultanate of Oman has started exporting the first shipment of ammonia to the global market (Oman News Agency).
The Sultanate of Oman has started exporting the first shipment of ammonia to the global market (Oman News Agency).
TT

Oman Exports First Ammonia Shipment

The Sultanate of Oman has started exporting the first shipment of ammonia to the global market (Oman News Agency).
The Sultanate of Oman has started exporting the first shipment of ammonia to the global market (Oman News Agency).

Oman started exporting the first shipment of ammonia, allowing the Gulf state to be part of the global ammonia market.

On Sunday, the Global Integrated Energy Group (OQ) announced the start of production at the ammonia plant in the Dhofar Governorate, with a production capacity of 1,000 metric tons per day of liquid ammonia.

The ammonia plant is one of the strategic growth projects wholly owned by the OQ Group with an investment of $463 million.

Hilal al Kharusi, CEO of commercial and downstream unit at OQ, said: “The ammonia project comes within OQ’s efforts to enhance the added value of natural resources and support the Omani government’s economic diversification plans. The plant will export its products to targeted global markets, especially in Asia, further contributing to the enhancement of the Omani exports.”

“The start of production operations at the plant is a key milestone that enhances the contribution of OQ Group. The demand for ammonia products in the global markets is witnessing constant growth leading to higher returns. This situation renders the project highly feasible,” he added.

The new ammonia plant has been designed to retain the hydrogen-rich purge gas generated by OQ’s methanol plant as feedstock for the ammonia plant.

Ammonia is used as a key ingredient in the production of fertilizers and is an important intermediate chemical in the manufacturing of synthetic resins, detergents, coolants, synthetic fibers, and polyurethanes, among other applications.

Ammonia is also used in the production of green hydrogen which is a key component of OQ’s energy transition agenda.



Gold Extends Slide to 1-week Low on Curbed Safety Demand, Stronger Dollar

A view shows an ingot of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo
A view shows an ingot of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo
TT

Gold Extends Slide to 1-week Low on Curbed Safety Demand, Stronger Dollar

A view shows an ingot of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo
A view shows an ingot of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo

Gold prices extended declines on Tuesday, hitting a more than one-week low, pressured by a jump in US dollar and easing safe-haven demand after reports of a possible Lebanon-Israel ceasefire.

Spot gold was down 0.4% at $2,614.56 per ounce as of 0845 GMT, after hitting its lowest since Nov. 18 earlier in the session. US gold futures edged 0.1% lower to $2,614.80, Reuters reported.

The precious metal fell 3.2% on Monday, its deepest one-day decline in more than five months, on news that Israel looked set to approve a US plan for a ceasefire with the Iran-backed Hezbollah, with further pressure from Trump's nomination of Scott Bessent as the US Treasury secretary.

Meanwhile, the Kremlin said it had noted that Trump's circle was speaking about a potential peace plan for Ukraine.

"This has reduced the geopolitical risk premium, leading to a decline in gold prices," said Soni Kumari, a commodity strategist at ANZ, adding that a stronger US dollar is also weighing on investor appetite for gold. The dollar was up by 0.3%, after US President-elect Donald Trump vowed tariffs against Mexico, Canada and China, reducing gold's appeal for holders of other currencies.

"So now the focus will shift back to, what Fed is going to do in December meeting," Kumari said. Federal Reserve Bank of Minneapolis President Neel Kashkari, typically on the hawkish end of the US central bank's policy spectrum, said he is open to cutting rates again next month.

Traders will also keep a close eye on US consumer confidence data and the minutes from the Fed's November meeting later in the day.

"I expect gold to trade in a narrow range in the short term, with a slight upward drift," Matt Simpson, a senior analyst at City Index said.

Spot silver slipped by 0.1% to $2,614.80 per ounce, platinum shed 1.1% to $928.40 and palladium was down 0.2% to $971.10.