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Oil Falls on Demand Growth Concerns, Robust Dollar

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 Falls on Demand Growth Concerns, Robust Dollar

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 fell on Friday on worries about demand growth in 2025, especially in top crude importer China, putting global oil benchmarks on track to end the week down nearly 3%.
Brent crude futures fell by 33 cents, or 0.45%, to $72.55 a barrel by 0730 GMT. US West Texas Intermediate crude futures eased 32 cents, or 0.46%, to $69.06 per barrel, Reuters said.
Chinese state-owned refiner Sinopec said in its annual energy outlook released on Thursday that China's crude imports could peak as soon as 2025 and the country's oil consumption would peak by 2027 as diesel and gasoline demand weaken.
"Benchmark crude prices are in a prolonged consolidation phase as the market heads towards the year-end weighed by uncertainty in oil demand growth," said Emril Jamil, senior research specialist at LSEG.
He added that OPEC+ would require supply discipline to perk up prices and soothe jittery market nerves over continuous revisions of its demand growth outlook. The Organization of the Petroleum Exporting Countries and allies, together called OPEC+, recently cut its growth forecast for 2024 global oil demand for a fifth straight month.
Meanwhile, the dollar's climb to a two-year high also weighed on oil prices, after the Federal Reserve flagged it would be cautious about cutting interest rates in 2025.
A stronger dollar makes oil more expensive for holders of other currencies, while a slower pace of rate cuts could dampen economic growth and trim oil demand.
JPMorgan sees the oil market moving from balance in 2024 to a surplus of 1.2 million barrels per day (bpd) in 2025, as the bank forecasts non-OPEC+ supply increasing by 1.8 million bpd in 2025 and OPEC output remaining at current levels.
In a move that could pare supply, G7 countries are considering ways to tighten the price cap on Russian oil, such as with an outright ban or by lowering the price threshold, Bloomberg reported on Thursday.
Russia has circumvented the $60 per barrel cap imposed in 2022 using its "shadow fleet" of ships, which the EU and Britain have targeted with further sanctions in recent days.

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Business

Saudi Arabia Launches Third Round of Mining Exploration Enablement Program

The headquarters of Saudi Arabia’s Ministry of Industry and Mineral Resources (SPA). 
The headquarters of Saudi Arabia’s Ministry of Industry and Mineral Resources (SPA). 
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Saudi Arabia Launches Third Round of Mining Exploration Enablement Program

The headquarters of Saudi Arabia’s Ministry of Industry and Mineral Resources (SPA). 
The headquarters of Saudi Arabia’s Ministry of Industry and Mineral Resources (SPA). 

Saudi Arabia’s Ministry of Industry and Mineral Resources, in cooperation with the Ministry of Investment, has announced the launch of the third round of the Mining Exploration Enablement Program, as part of efforts to accelerate mineral exploration in the Kingdom, reduce early-stage investment risks, and attract high-quality investments from local and international mining companies.

According to a ministry statement, the third round offers a comprehensive support package targeting exploration companies and holders of mining exploration licenses.

The package includes cash incentives covering up to 25% of eligible exploration expenditures — such as drilling activities, laboratory testing, and geological studies — along with wage support of up to 15% for technical staff and experts residing in Saudi Arabia.

The statement added that the program will also cover up to 70% of the salaries of Saudi technicians during the first two years, rising to 100% thereafter. This is intended to help develop national talent, build capabilities in mineral exploration, promote job localization, and facilitate the transfer of geological knowledge.

The ministry noted that applications will close on March 31, 2026. This will be followed by an evaluation phase and the signing of agreements from April 1 to May 31, with qualified projects to be announced between June 1 and July 31.

The Mining Exploration Enablement Program focuses on supporting strategic minerals of national priority and strengthening geological knowledge through up-to-date, internationally standardized data. This approach enables investors to make informed decisions while supporting the growth of national companies and local supply chains.

 

 

 

Business

Saudi Stocks Open to Foreign Investors as Inflows of Global Capital Loom

A trader monitors stock movements on a screen at the Saudi stock exchange. (Reuters)
A trader monitors stock movements on a screen at the Saudi stock exchange. (Reuters)
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Saudi Stocks Open to Foreign Investors as Inflows of Global Capital Loom

A trader monitors stock movements on a screen at the Saudi stock exchange. (Reuters)
A trader monitors stock movements on a screen at the Saudi stock exchange. (Reuters)

Saudi Arabia’s equity market has been formally opened to all categories of foreign investors, a move widely expected to attract substantial international capital inflows in the coming period.

The decision follows the entry into force, on Sunday, of a new regulatory framework allowing non-resident foreign investors to invest directly in the Saudi stock market.

Market experts say the reform could draw global funds seeking exposure to the Kingdom’s largest listed companies and fast-growing economy.

By the end of the third quarter of 2025, foreign investors’ ownership in the Saudi capital market exceeded SAR 590 billion ($157.3 billion). Investments in the main market alone stood at around SAR 519 billion ($138.4 billion), up from SAR 498 billion ($132.8 billion) at the end of 2024, underscoring steady growth even before the latest reforms. Analysts expect the new rules to further boost foreign participation.

On Sunday, the Saudi Capital Market Authority announced that the market would be fully open to all foreign investor categories from February 1, following approval by its board of the new regulatory framework. With this step, all segments of the Saudi market are now accessible to investors worldwide through direct investment.

Market performance, however, was mixed. The benchmark index recorded its strongest monthly gain since 2022 in January, closing at 11,382.08 points.

On the first day of foreign investors being allowed to trade directly, the index fell 1.9 percent to 11,167.48 points, losing 214.6 points amid broad declines, particularly in energy, banking, and basic materials stocks.

Leading stocks

Hamad Al-Olayan, chief executive of Villa Capital, said the initial decline was “natural,” noting that several major stocks had posted strong gains in recent days following the announcement of the decision last month.

Speaking to Asharq Al-Awsat, he attributed the pullback largely to profit-taking in leading stocks such as Maaden.

Al-Olayan also pointed to pressure on banking shares, especially Al Rajhi Bank and Saudi National Bank, after recent rallies, as well as volatility in gold and silver prices.

Some investors may still be unclear about ownership limits and sector-specific restrictions, he added.

Outlook improves

The recent decline may also reflect psychological factors, profit-taking, and limited geopolitical pressures, he remarked. Sentiment would improve once procedures for foreign entry, account opening, execution, and ownership thresholds become clearer.

The reforms abolish the concept of the “qualified foreign investor” in the main market and cancel swap agreements previously used by non-resident investors to gain only economic exposure. Direct ownership of listed shares is now permitted.

In July 2025, the CMA had already eased account-opening procedures for certain foreign investors, a transitional step toward full liberalization.

The latest changes align with the authority’s gradual approach to opening the market and aim to position Saudi Arabia as a global investment destination while supporting the domestic economy.

Business

IMF Chief Says Global Inflation to Fall, Trade Integration is Needed

International Monetary Fund (IMF) managing director Kristalina Georgieva gestures as she speaks during the final day of the World Economic Forum (WEF) annual meeting in Davos on January 23, 2026. (Photo by Fabrice COFFRINI / AFP)
International Monetary Fund (IMF) managing director Kristalina Georgieva gestures as she speaks during the final day of the World Economic Forum (WEF) annual meeting in Davos on January 23, 2026. (Photo by Fabrice COFFRINI / AFP)
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IMF Chief Says Global Inflation to Fall, Trade Integration is Needed

International Monetary Fund (IMF) managing director Kristalina Georgieva gestures as she speaks during the final day of the World Economic Forum (WEF) annual meeting in Davos on January 23, 2026. (Photo by Fabrice COFFRINI / AFP)
International Monetary Fund (IMF) managing director Kristalina Georgieva gestures as she speaks during the final day of the World Economic Forum (WEF) annual meeting in Davos on January 23, 2026. (Photo by Fabrice COFFRINI / AFP)

Global inflation is expected to fall to 3.8% this year and to 3.4% in 2027, helped by softer demand and lower energy prices, the IMF chief ‌said on ‌Monday.

Managing Director ‌Kristalina ⁠Georgieva said ‌in a speech in the Annual Arab Fiscal Forum in Dubai that global growth has held up 'remarkably well' amid profound shifts ⁠in geopolitics, trade policy, technology, ‌and demographics.

Georgieva also ‍called for ‍more trade integration as unilateral ‍trade agreements are seen on the increase, Reuters said.

"In the world of trade fragmentation, more trade integration is absolutely paramount."

"What we have ⁠seen this year is that trade did not go down the way we feared it would. In fact trade is growing slightly slower than global growth," she added.