Oil Updates — crude falls as market eyes OPEC+ output increase, US tariffs

Oil Updates — crude falls as market eyes OPEC+ output increase, US tariffs
Brent futures fell 24 cents, or 0.3 percent, to $70.80 a barrel at 8:00 a.m. Saudi time. Shutterstock
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Updated 05 March 2025
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Oil Updates — crude falls as market eyes OPEC+ output increase, US tariffs

Oil Updates — crude falls as market eyes OPEC+ output increase, US tariffs

SINGAPORE: Oil prices fell for a third session on Wednesday as plans by major producers to raise output in April combined with concerns that US tariffs on Canada, Mexico and China will slow economic growth and hit fuel demand.

Brent futures fell 24 cents, or 0.3 percent, to $70.80 a barrel at 8:00 a.m. Saudi time. US West Texas Intermediate crude slipped 58 cents, or 0.9 percent, to $67.68 a barrel.

In the previous session, the contracts settled at close to multi-month lows.

“Unfavorable supply-demand dynamics have created a double whammy, with tariff uncertainties posing downside risks to global growth, and in turn, oil demand,” said Yeap Jun Rong, market strategist at IG.

“OPEC+ remains on track to increase production in April, while optimism over a potential resolution to the Ukraine-Russia conflict raises the prospects of Russian supplies returning to the market,” Yeap added.

The Organization of the Petroleum Exporting Countries and its allies including Russia, a group known as OPEC+, decided on Monday to increase output for the first time since 2022.

The group will make a small increase of 138,000 barrels per day from April, the first step in planned monthly increases to unwind its nearly 6 million bpd of cuts, equal to nearly 6 percent of global demand.

A 25 percent tariff on all imports from Mexico, a 10 percent tariff on Canadian energy and a doubling of duties on Chinese goods to 20 percent came into effect on Tuesday. The Trump administration also imposed 25 percent tariffs on all other Canadian imports.

US President Donald Trump’s self-declared trade war is seen by economists as a recipe for fewer jobs, slower growth, and higher prices, which could kill demand. The lower economic growth will likely impact fuel consumption in the world’s biggest oil consumer.

The Trump administration also said on Tuesday it was ending a license that the US has granted to US oil producer Chevron since 2022 to operate in Venezuela and export its oil.

The move puts 200,000 barrels per day of supply at risk, said ING commodities strategists in a note on Wednesday.

“This will leave US refiners looking for alternative heavy grades of crude oil just as other suppliers — Canada and Mexico — face tariffs,” they added.

Meanwhile, US crude stocks fell by 1.46 million barrels in the week ended February 28, market sources said, citing American Petroleum Institute figures on Tuesday. Investors now await government data on US stockpiles, due on Wednesday. 


Saudi Arabia to launch Investment Marketing Authority to fuel economic growth

Saudi Arabia to launch Investment Marketing Authority to fuel economic growth
Updated 29 sec ago
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Saudi Arabia to launch Investment Marketing Authority to fuel economic growth

Saudi Arabia to launch Investment Marketing Authority to fuel economic growth

RIYADH: The Kingdom has approved the creation of the Saudi Investment Marketing Authority, a pivotal move to boost the country’s global investment attractiveness.

This decision was made during a Cabinet meeting chaired by Crown Prince Mohammed bin Salman.

Investment Minister Khalid Al-Falih thanked King Salman and Crown Prince Mohammed bin Salman, describing the approval as a crucial milestone in fulfilling the authority’s strategic goals.

“This approval marks a pivotal starting point for the authority to achieve its strategic objectives and enhance the Kingdom’s position as a distinguished destination for attracting and stimulating investment,” Al-Falih stated on X.

The minister highlighted that this decision demonstrates the Saudi leadership’s support to strengthen the investment ecosystem in the Kingdom, as reported by the Saudi Press Agency.

He also emphasized that the establishment of the authority aligns with the goals of Vision 2030, which aims to diversify the economy, enhance global competitiveness, and foster a sustainable economic environment.

The authority will be responsible for promoting investment opportunities both within Saudi Arabia and globally, collaborating with relevant stakeholders across various sectors. It will play a vital role in highlighting the Kingdom’s competitive advantages and the incentives available to investors.

Furthermore, the authority will emphasize Saudi Arabia’s ongoing transformation as it moves toward a more diversified and sustainable economy.

The minister pointed out that the authority will leverage modern technologies and advanced investment marketing strategies, incorporating deep market analysis, international partnerships, and digital platforms to attract global investors.

He also noted that the authority will position Saudi Arabia as a premier investment hub, capitalizing on its strategic location, business-friendly regulations, and world-class infrastructure.

Al-Falih emphasized that the new authority will be essential in boosting foreign direct investment, enhancing local investment opportunities, and supporting Saudi investors.

He added that it will contribute to economic growth, job creation, innovation, and knowledge transfer, further solidifying the Kingdom’s standing as a leading global investment destination.

Saudi Arabia recently experienced a significant rise in foreign direct investment, exceeding the National Investment Strategy’s 2023 target by 16 percent.

The Kingdom has ranked as the second-fastest growing G20 economy in terms of FDI inflows and fourth globally in total foreign investment growth, with nearly SR900 billion invested, reflecting a 13 percent increase.

Foreign investors have directed over SR350 billion into Saudi financial markets, and more than 500 foreign companies have established their regional headquarters in the country.


US fintech partners with largest Pakistani Islamic bank for cross-border transactions

US fintech partners with largest Pakistani Islamic bank for cross-border transactions
Updated 4 min ago
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US fintech partners with largest Pakistani Islamic bank for cross-border transactions

US fintech partners with largest Pakistani Islamic bank for cross-border transactions
  • Payoneer provides online money transfer and digital payment services, Meezan Bank offers wide range of Shariah-compliant products and services 
  • Meezan customers linked to Payoneer accounts can make real-time withdrawals in multiple currencies directly into local Meezan accounts

ISLAMABAD: American financial services company Payoneer has partnered with Meezan Bank, Pakistan’s largest Islamic bank, to enhance cross-border payments for Pakistani businesses, entrepreneurs, and freelancers, a press release said on Wednesday.

Under the partnership, Meezan Bank customers can link their Payoneer accounts to the bank’s mobile banking app to make real-time withdrawals in multiple global currencies directly into their Meezan local receiving accounts. The mobile app integration will allow businesses in Pakistan to receive funds from clients, vendors, and marketplaces worldwide, enabling them to be “local” to their customers regardless of where they are. 

Meezan Bank customers will also access benefits including multi-currency balance monitoring, transparent FX rates, no hidden costs, pre-populated personal details, quick authentication via SMS, and a straightforward account-linking process.

The integration will also ensure that Proceeds Realization Certificate (ePRC), an essential document provided by Meezan Bank for regulatory adherence, tax filing, and securing export rebates, will be issued with every transaction, addressing a critical legal requirement for Pakistan's small and medium businesses engaged in cross-border trade.

“By partnering with Meezan Bank, we are providing Pakistani businesses access to financial management tools that will support their global expansion and help them grow alongside the evolution of Pakistan's export landscape,” said Mohsin Muzaffar, country manager at Payoneer Pakistan.

“We're committed to enabling Pakistan’s businesses to thrive on the global stage while contributing to the acceleration of the country's digital export growth.”

Abdullah Ahmed, group head transaction and international bankinggroup at Meezan Bank, said the institution’s strong digital infrastructure and deep expertise in the interconnected global economy had made it an “ideal Islamic banking partner” for Payoneer. 

“This seamless integration reflects our shared vision of fostering financial inclusion, driving innovation, and supporting Pakistan’s digital economy in alignment with ethical and Islamic financial principles,” the official said. 

"We look forward to a successful collaboration that empowers businesses and individuals alike through responsible and inclusive banking solutions.”

The collaboration comes at a pivotal time for Pakistan's digital economy. The nation's IT exports reached $3.2 billion in FY2023-24, a 24% year-on-year increase. Pakistan's freelance worker community of over 1.5 million professionals also contributed $350 million to the country's foreign exchange reserves last year.


Pakistan appoints adviser as it moves to set up national crypto council

Pakistan appoints adviser as it moves to set up national crypto council
Updated 36 min 26 sec ago
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Pakistan appoints adviser as it moves to set up national crypto council

Pakistan appoints adviser as it moves to set up national crypto council
  • Appointment signifies a shift in Pakistan’s cryptocurrency stance, moving from resistance to a regulatory approach
  • Bilal Bin Saqib will also advise on leveraging AI to enhance government efficiency, decision-making processes

KARACHI: The government announced on Wednesday the appointment of a lead adviser to Finance Minister Muhammad Aurangzeb on the Pakistan Crypto Council to develop policy measures ahead of adopting digital currencies, according to an official statement.
The crypto council is a proposed advisory body the Pakistan government is considering establishing to oversee the development and regulation of the country’s digital asset ecosystem. The initiative aims to ensure Pakistan’s engagement with digital assets is secure, compliant and sustainable.
This appointment of the adviser also signifies a shift in Pakistan’s stance on cryptocurrencies, moving from previous resistance to a more open and regulatory-focused approach.
According to the finance division’s statement, Bilal Bin Saqib, a Web3 investor and strategic adviser recognized by Forbes, has been named as the lead adviser. He featured in Forbes 30 under 30 and received an MBE (Member of the British Empire) in 2023 for his contributions to the UK’s National Health Service. Saqib has background in blockchain and digital finance, making him well-positioned to guide Pakistan’s approach to cryptocurrency regulation.
“Mr. Saqib’s appointment underscores our commitment to embracing emerging technologies while ensuring a secure and transparent financial system,” the finance minister was quoted as saying in the statement. “We are confident that his leadership will guide the development of a sound and effective regulatory framework, fostering innovation and sustainable growth in Pakistan’s crypto sector.”
As the chief adviser, Saqib will contribute to policy development for integrating cryptocurrency and blockchain into Pakistan’s financial system while ensuring alignment with global regulatory standards.
He will also advise on leveraging artificial intelligence (AI) to enhance government efficiency and decision-making processes.
“Cryptocurrency and blockchain technology hold immense potential for Pakistan, particularly for the youth, who are the driving force behind our nation’s digital future,” the finance minister’s newly appointed adviser said. “With the right strategies and regulatory framework, we can empower our country’s youth, foster economic growth, and establish Pakistan as a leader in the space.”
Pakistan has maintained a cautious stance on cryptocurrencies in the past, citing financial security and regulatory risks.
However, the government has acknowledged more recently the presence of over 20 million active digital asset users in the country and aims to address challenges such as high transaction fees through proper regulation.
 


Saudi consumer spending surges 35% to $4.6bn ahead of Ramadan 

Saudi consumer spending surges 35% to $4.6bn ahead of Ramadan 
Updated 05 March 2025
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Saudi consumer spending surges 35% to $4.6bn ahead of Ramadan 

Saudi consumer spending surges 35% to $4.6bn ahead of Ramadan 

RIYADH: Consumer spending in Saudi Arabia jumped 34.7 percent to SR17.5 billion ($4.6 billion) in the week leading up to Ramadan, driven by increased food purchases and retail activity, official data showed. 

The latest point-of-sale transaction data from the Saudi Central Bank, also known as SAMA, revealed a sharp increase in spending across most of the economy from Feb. 23 to March 1, with 231.3 million transactions. 

The food and beverage sector led the surge, with spending soaring 74.9 percent week on week to SR3.3 billion, reflecting a seasonal spike in demand as Saudis prepare for Ramadan, a month characterized by large daily Iftar and Suhoor meals. 

Spending on public utilities followed closely, with a 55.9 percent rise, amounting to SR81.5 million. Expenditure on furniture also recorded a notable surge at 46 percent to SR524.5 million. 

According to the latest POS transactions bulletin, the education sector was one of the two areas that registered negative change during this period. Spending on education dipped by 33.6 percent to settle at SR82 million, while spending in hotels fell by 0.5 percent to SR365 million. 

Spending on clothing and footwear saw a 43.9 percent increase in transaction value to SR1.2 billion, with the number of deals growing by 30.8 percent to 8.5 million. 

Expenditure on telecommunication also saw increases, surging 42.9 percent to SR146.9 million, while recreation and culture recorded a 25.4 percent uptick to SR338.1 million. 

Similarly, spending on jewelry recorded an increase of 27.2 percent to SR334.2 million. 

Expenditure in restaurants and cafes followed, recording a 10.5 percent increase to SR2.1 billion. 

Miscellaneous goods and services accounted for the second-biggest POS share with a 36.9 percent upstick, reaching SR2.1 billion. 

Spending in the leading three categories accounted for approximately 42.9 percent or SR7.5 billion of the week’s total value. 

At 9.4 percent, the smallest increase occurred in spending in gas stations, leading total payments to reach SR1 billion. 

Expenditures on construction and building materials surged by 22.5 percent to SR441.1 million, and spending on electronics recorded a 31.7 percent increase to SR224.8 million. 

Geographically, Riyadh dominated POS transactions, representing around 33 percent of the total, with expenses in the capital reaching SR5.8 billion — a 27.1 percent increase from the previous week. 

Jeddah followed with a 29.5 percent surge to SR2.4 billion, and Dammam came in third at SR847.6 million, up 31.2 percent. 

Hail experienced the most significant increase in spending, surging by 49.5 percent to SR294.4 million. Tabuk followed with a 46 percent surge to SR334.9 million. 

Makkah and Madinah saw the largest increases in terms of the number of transactions, surging 16.5 percent and 14 percent, respectively, to 9.8 million and 9.6 million transactions.


Revenue of PIF-owned Newcastle jumps 28% as losses drop sharply for 2023-24 season

Revenue of PIF-owned Newcastle jumps 28% as losses drop sharply for 2023-24 season
Updated 05 March 2025
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Revenue of PIF-owned Newcastle jumps 28% as losses drop sharply for 2023-24 season

Revenue of PIF-owned Newcastle jumps 28% as losses drop sharply for 2023-24 season

LONDON: English soccer side Newcastle United reported revenue of £320 million ($406.88 million) for the financial year ending June 2024, a 28 percent increase from 250 million in 2023, driven by higher income following their return to the Champions League.

Newcastle, acquired by the Kingdom’s Public Investment Fund in 2021, had commercial income rise 90 percent from £43.9 million to £83.6 million in 2024, driven by new deals with Saudi companies Sela and Noon, as well as Adidas and UK-based Fenwick.

Champions League distributions amounted to nearly £30 million, though Newcastle were eliminated in the group stage.

“Returning to the Champions League for the first time in more than 20 years was hugely memorable for everyone connected with the club, and it has clear upside financially as we continue to grow,” Newcastle United CEO Darren Eales said in a statement.

“We are committed to sustainable success and we have started 2025 in a strong position.”

The Amazon Prime documentary “We Are Newcastle United” and changes to the club’s retail and catering operations also boosted revenue.

The club also significantly reduced its after-tax losses from £71.8 in 2023 to £11.1 million in 2024, an 84 percent drop, driven by controlled spending to comply with Premier League sustainability rules after their hefty 2023 outlay.

The club are in a tight battle for a top-four finish this season, which would mean a return to the lucrative Champions League, with Nottingham Forest and Bournemouth also in the mix. Newcastle sit sixth, three points behind fourth-placed Manchester City and 23 adrift of leaders Liverpool.

Newcastle are set to face League Cup holders Liverpool in the final on March 16. They were dumped out of the FA Cup after a dramatic quarter-final 2-1 loss to Brighton & Hove Albion on Sunday.