Oil prices rose for the second consecutive session on Tuesday, with continued concerns about supply disruptions from the Middle East, at a time when crude exports from the region began to regain their levels, driven by increased shipments from Saudi Arabia and the UAE.
Brent crude futures rose $1.49, or 1.4 percent, to $106.77 per barrel by 03:26 GMT, while US West Texas Intermediate crude rose $1.34, or 1.5 percent, to $93.94. The two crude oil prices ended the session, Monday, at an increase of nearly a dollar per barrel.
Tim Waterer, senior analyst at KCM Trade, said that a clearer picture is beginning to emerge regarding the increase in oil volumes heading out of the Gulf, but a large part of this increase still depends on alternative arrangements, such as transferring shipments from one ship to another.
He added that these operations are “less efficient and more expensive” than usual operations, which keeps crude prices high.
Preliminary data from commodity information company Kpler showed that crude exports from major Middle Eastern producers rose to 12.8 million barrels per day in September, the highest level since February, supported by increased shipments from Saudi Arabia and the UAE.
On the other hand, developments in the US-Iranian confrontation still represent the most prominent factor in determining the direction of the oil market, with US and Iranian officials holding separate talks with mediators in a renewed attempt to end a war that has been ongoing for seven months.
The upcoming talks are expected to focus on a modified version of a seven-day proposal presented by Iran last week on the sidelines of the UN General Assembly meetings.
UB Bank analysts said, “The dominant risk remains the US-Iranian confrontation and its repercussions on energy prices and inflation expectations,” adding that reports of Iranian officials’ pessimism about reaching an agreement before the situation in the Strait of Hormuz worsens keep uncertainty about oil supplies high.
Attention has been focused on the Strait of Hormuz, one of the most important global oil and gas shipping corridors, since the outbreak of war in late February following American and Israeli attacks on Iran, with disturbances related to the corridor reshaping the movement of supplies and energy markets.
In the petroleum products market, the United States is considering easing some regulatory restrictions to allow expanded sales of red diesel, in a move that may help lower prices by allowing some buyers to avoid the federal fuel tax, according to people familiar with the discussions.
This step emerged as one of the main alternatives being considered by the US administration, after days of considering imposing a ban on diesel exports.
“Ruya Al-Haram Al-Makki”, affiliated with the Saudi Public Investment Fund, has concluded a cooperation agreement with the Malaysian company “MRCB”, to study the development of a major multi-use destination integrated with the transportation system within the “King Salman Gate” project in Mecca, with a total value estimated at about 21 billion riyals ($5.6 billion).
The agreement signed between “Rowaa Al-Haram Al-Makki”, the main developer of the Gateway Project, and “MRCB”, the leader in real estate and infrastructure development, in the Malaysian capital, Kuala Lumpur, on Monday, is subject to completing due diligence procedures, obtaining the necessary approvals and financing, determining the implementation stages, and concluding final agreements.
The cooperation agreement was signed by “Ruya Al-Haram Al-Makki” CEO, Bambang Kajairi, and “MRCB” Group Managing Director, Imran Saleem, in the presence of the Fund’s Governor, Yasser Al-Rumayyan, the Head of the General Department of Local Real Estate Investments at the Public Investment Fund, Saad Al-Karroud, the Chairman of the Board of Directors of “MRCB”, Muhammad Abdul Latif, and the Chairman of the Board of Directors of “MRCB Land” Private Limited, Muhammad Zaini.
The cooperation agreement opens a path for attracting international investments to participate in the development of the “King Salman Gate” project, which embodies the country’s efforts to enrich the experience of the guests of God and visitors from various parts of the world, while preserving the unique heritage of Mecca, as it supports its endeavors to enhance the ability of the Holy Capital to serve them, in line with the goals of “Saudi Vision 2030.”
“Visions of the Holy Mosque of Mecca” works to provide a regulatory framework that allows international institutions from around the world to invest in developing the project, while the company continues to lead its comprehensive vision and supervise its implementation. This partnership also reflects its role in linking the investment and institutional capabilities of the Fund on the one hand, and international capital and development expertise on the other hand.
The cooperation agreement focuses on benefiting from MRCB’s expertise in developing projects related to integrated transportation systems, most notably “KL Sentral,” the largest integrated transportation center in Malaysia that combines transportation networks and a variety of urban uses.
The proposed project includes studying the development of a public bus station, residential and commercial projects, retail stores, and other multiple uses within “King Salman Gate,” as well as infrastructure. The partnership aims to study ways to employ the transportation system and support services to facilitate the movement of the pilgrims and visitors, enhance ease of access, and improve their experience in Mecca.
The agreement will also discuss developing an integrated framework for developing, financing and implementing the proposed project, benefiting from the vision of “Visions of the Holy Mosque in Mecca” for “King Salman Gate” and the expertise of “MRCB” in major multi-use projects linked to transportation systems, in order to achieve integration between investment, development, transportation solutions, and visitor services.
It is noteworthy that “Visions of the Holy Mosque in Mecca” seeks to attract leading international partners to continue to strengthen the Kingdom’s efforts aimed at improving the experience of the guests of God and visitors in Mecca in accordance with the highest international standards.
