Saudi Arabia Financial News

Rupee opened at 82.02 a dollar. The US dollar held close to a six-month peak on safe haven buying as jitters over China and global growth weighed on risk appetite. Against a basket of currencies, the dollar was at 104.77, not far off the six-month high of 104.90 touched on Tuesday, Reuters reported.

global growth and higher crude prices spurring inflationary pressures dented sentiment. The pan-European STOXX 600 index slipped 0.6% to hit its lowest level in more than a week. The global mood soured as Brent crude prices jumped to over $90 a barrel on Tuesday after Saudi Arabia and Russia extended their voluntary supply cuts to year end, fuelling worries about persistent price pressures. While oil prices pulled back slightly, government bond yields continued to rise, with the German 10-year yield surging to a two-week high at 2.65%. «Energy prices are big inflationary drivers, and just at the time when the price spiral appears to be moving more obediently downwards, high crude prices could cause upset,» noted Susannah Streeter, head of money and markets at Hargreaves Lansdown. The weak sentiment from August spilled into this month on worries about how long the major central banks will keep interest rates elevated amid fresh signs of weakness in Chinese and European economies. Investors betting against a European Central Bank interest rate increase next week could be underestimating the likelihood of it happening, the ECB's governing council member Klaas Knot told Bloomberg.Money market futures imply traders are pricing in only a 33% chance that the ECB will hike rates by 25 basis points at the central bank's Sept.

This week's sharp rise in Brent price after OPEC+ leaders Saudi Arabia and Russia announced that they would extend supply curbs through the end of the year has led to OMCs' GMM declining to negative 0.1 per litre, according to calculations done by JM Financial. «There is a high expectation that the government may also cut petrol/diesel prices by Rs 3-5/ltr around Diwali given key state elections start from Nov-Dec '23. This cut should mostly happen via a reduction in excise duty and/or VAT given OMCs are losing on the auto-fuel marketing business at the current high crude price,» said JM Financial's oil and gas analysts Dayanand Mittal and Shivam Gupta. They do not rule out a scenario whereby the government may nudge OMCs to cut petrol/diesel prices as their balance sheets have largely been repaired due to likely strong profits in 1HFY24. Last week, the government reduced the price of domestic LPG by Rs 200 per cylinder for all 330 million domestic LPG consumers to give relief to the common man from the recent surge in inflation.

rupee depreciated 5 paise to 83.09 against the US dollar in early trade on Wednesday as elevated crude oil prices and strength of the American currency weighed on investor sentiments. Forex traders said the rupee is trading lower on strong dollar and sustained foreign fund outflows over the past few days. At the interbank foreign exchange, the domestic unit opened at 83.08, then touched 83.09, registering a decline of 5 paise over its last close. On Tuesday, the rupee plunged by 33 paise to close at 83.04 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell marginally by 0.09 per cent to 104.71. Brent crude futures, the global oil benchmark, rose 0.07 per cent to USD 90.10 per barrel. Saudi Arabia and Russia shook the oil world when they extended production cuts to December taking Brent oil to USD 90.19 per barrel, Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP said. This spelled tighter supplies in the next four months as markets expected a supply cut only up to October.

Peter McGuire, CEO, XM Australia, says “the uncertainty across the whole sector was severely sold down as far as the producers were concerned. It has rallied very strongly in the last couple of months from that early $70s all the way through to early 90s. There seems to be further upside ahead of it. Many traders are now saying $100 is achievable in September, and I would not be surprised if it takes that number out.”What is leading to the crude rally and do you see an escalation above $90 on Brent?Yes, a couple of things.

rupee depreciated 29 paise to end near its two-week low of 83.04 a dollar. The yen was at 147.66 per dollar, just shy of 147.8 per dollar, the lowest since November 4 it touched overnight. The euro was unchanged at $1.0721, having breached a three-month low of $1.0705 overnight.

Indian stock market is expected to open on a cautious note Wednesday amid mixed global cues. While Asian markets traded mixed, US stock indices ended lower overnight as a rally in crude oil prices stoked inflation worries. Investors remained cautious as crude oil prices surged to 10-month high levels after Saudi Arabia and Russia announced to extend their voluntary oil production cut through the end of the year.

By Arathy Somasekhar

Investing.com-- Oil prices rose further in Asian trade on Wednesday, sticking to 10-month highs as bigger-than-expected supply cuts by Saudi Arabia and Russia pointed to tighter supplies this year.

TULKAREM, West Bank—When Palestinian security forces last week tried to remove barricades preventing Israeli soldiers from entering a refugee camp, local residents were incensed. A resulting gunfight between militants and Palestinian security forces ended with a 25-year-old man shot dead and a growing sense of resentment among ordinary Palestinians who see their government as inept, corrupt and, some say, a collaborator with Israel in occupying the West Bank.

Saudi Arabia and Russia have agreed to extend their voluntary oil production cuts through the end of the year

Stocks closed lower on Wall Street as traders return from a long holiday weekend

Saudi Arabia says it will extend its voluntary production cut of 1 million barrels of oil a day through end of year

Investing.com — Stocks were weaker on Tuesday, kicking off a holiday-shortened trading week as oil prices surged.

Investing.com — The Dow closed lower Tuesday, weighed down by rising Treasury yields, but a rally in energy stocks kept a lid on losses as oil prices climbed after major oil producers agreed to extend their oil production cuts.

Investing.com — The S&P 500 slipped Tuesday, but downside momentum was kept in check by a rally in energy stocks after major oil producers agreed to extend their oil production cuts offsetting China-fueled concerns about timid demand.  

Occidental Petroleum, Halliburton, EOG Resources — Shares of oil and gas companies were higher Tuesday after Saudi Arabia earlier extended its one million barrel per day voluntary crude oil production cut until the end of the year. Occidental Petroleum gained about 3.3%. Halliburton added 2.8% and EOG Resources rose 3.1%. The cut, which led oil prices higher during the day, adds to other voluntary crude output declines that some members of OPEC have put in place until the end of 2024.

By Shristi Achar A and Amruta Khandekar

Saudi Arabia and Russia have reached an agreement to extend existing production and export cuts until the end of the year 2023.

Benchmark Brent crude traded at $90 a barrel after Saudi Arabia said Tuesday that it would extend its voluntary production cut of 1 million barrels of oil per day through the end of the year. (more to come)

Oil prices jumped roughly 2% on Tuesday after Saudi Arabia and Russia announced a fresh extension to their voluntary supply cuts, stretching a combined 1.3 million barrel per day (bpd) reduction for another three months through December. GMT Brent crude futures for November were up $1.62, or about 1.8%, to $90.62 a barrel, while U.S.