Oil prices recover on reports of OPEC output drop, trade talk optimism
October 1, 2019, 11:37 am

Oil prices recover on reports of OPEC output drop, trade talk optimism

Oil prices rose on Tuesday after reports showed that OPEC oil production had fallen to an eight-year low in September. (File photo AP)

Oil prices rose on Tuesday after a media report showed that OPEC oil production had fallen to an eight-year low in September and as optimism over renewed US-China trade talks boosted investor sentiment.

Benchmark Brent crude prices rose nearly 1.2 percent to $59.95 per barrel, while prices of US crude (WTI) inched up 1.15 percent to $54.69 a barrel.

China’s top trade negotiator will lead an upcoming 13th round of talks aimed at resolving a trade war with the US, the Associated Press reported on Monday, citing a senior Chinese official.

“Oil has rebounded today on a combination of trade talk optimism and talk that OPEC production had fallen in September,” Jeffrey Halley, a senior market analyst for Asia Pacific at forex trading platform OANDA in Singapore, told Al Arabiya English.

A Reuters survey from Monday showed that OPEC oil production fell to 28.9 million barrels per day (bpd), down 750,000 bpd from August’s revised figure.

This comes after OPEC, Russia, and other non-members, known as OPEC+, agreed in December to reduce supply by 1.2 million bpd from Jan. 1 this year. OPEC’s share of the cut is 800,000 bpd, to be delivered by 11 members – exempting Iran, Libya and Venezuela.

Sources told Reuters that output from Russia, which now plays a key role in stabilizing global oil prices along with top exporter Saudi Arabia, fell to 11.24 million bpd in September from 11.29 million bpd a month ago.

In July, US crude oil output fell to 11.81 million bpd, compared to 12.08 million bpd in June, according to the latest report from the US Energy Information Administration. A drop in US crude prices and investor pressure to boost returns have pressured margins at shale firms, prompting them to cut production and abort the drilling of new wells.

But, the oil price spike may be short-lived. According to Halley, it is hard to see the rally continuing as excess supplies and returning Saudi production combined with global economic worries will limit gains.

“Oil has now entirely retraced its Saudi attack led rally, suggesting that economics, not geopolitics, is the longer-term driver for oil,” he told Al Arabiya.

Saudi Aramco’s key oil-processing facilities in Abqaiq and Khurais were attacked on September 14 by drone strikes, which knocked off about five percent of global energy supply and sent global crude oil prices up by as much as 20 percent.

Last week, Reuters reported that Saudi Arabia had restored its oil production capacity earlier than expected to 11.3 million barrels per day after the attacks on its oil-processing facilities.

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.