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Saudi Arabia Signs Energy MoUs with Egypt, Oman

The signing of the MoU between Saudi Arabia and Egypt (Asharq Al-Awsat)
The signing of the MoU between Saudi Arabia and Egypt (Asharq Al-Awsat)
    Sharm el-Sheikh - Lamia Nabil
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Saudi Arabia Signs Energy MoUs with Egypt, Oman

The signing of the MoU between Saudi Arabia and Egypt (Asharq Al-Awsat)
The signing of the MoU between Saudi Arabia and Egypt (Asharq Al-Awsat)

Saudi Arabia signed two separate memoranda of understanding in the energy field with Egypt and the Sultanate of Oman on Monday, on the sidelines of the 2022 United Nations Climate Change Conference and the second edition of the Green Middle East Initiative summit, which were held in the Egyptian city of Sharm el-Sheikh.

Saudi Minister of Energy Prince Abdulaziz bin Salman and the Egyptian Minister of Electricity and Renewable Energy, Dr. Muhammad Shaker, signed an MoU for bilateral cooperation, which aims to enhance cooperation in the production and export of electricity from renewable energy, transport of clean hydrogen transport, and electrical interconnection.

The agreement also encourages digital transformation, innovation, cyber-security, and artificial intelligence, as well as the efforts to develop qualitative partnerships in localization, services and supply chains.

Moreover, the MoU supports joint research with universities, research centers and others, in addition to the holding of conferences, seminars and work sessions, as well as building human capacities through training and exchanging information and experiences, with the aim to deepen and expand cooperation between the two countries.

The Saudi minister of Energy and his Omani counterpart, Minister of Energy and Minerals Salem bin Nasser Al-Awfi, signed an MoU for energy cooperation, which includes strengthening cooperation in renewable energy, electricity, energy efficiency and hydrogen, applying the circular carbon economy approach to reduce the effects of climate change, and developing standards to support the use of sustainable materials.

The memorandum also encourages digital transformation, innovation, cooperation between specialized companies, and the development of qualitative partnerships for the localization of materials, products, services, supply chains and technologies, in all fields of energy.

The memorandum includes exchanging training courses and experts’ visits, and conducting scientific research on energy, which would contribute to strengthening cooperation between the two countries.

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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.