Asian markets crude prices at the end of week falling

SINGAPORE: Oil prices lingered near $50 a barrel Friday in Asia as investors weighed a possible second-half recovery of U.S. crude demand against recent dismal economic data reflecting a severe recession.

Benchmark crude for May delivery fell 33 cents to $49.65 a barrel by midday in Singapore in electronic trading on the New York Mercantile Exchange. The contract on Thursday rose 73 cents to settle at $49.98.

Oil prices have bobbed around $50 a barrel this month as the current backdrop of high unemployment, weak consumer demand and falling corporate profits has tempered investor optimism about an eventual economic rebound.

Falling crude demand and rising inventories have kept prices from rising higher. Storage facilities for crude oil in the U.S. have been swelling since the end of February, bloating to a nearly 19-year high last week.

Oil prices c in Asian trade

SINGAPORE: Oil prices rose above 53 dollars in Asian trade Monday on hopes a global effort to lift the world economy out of recession would yield results.

New York’s main futures contract, light sweet crude for delivery in May, gained 60 cents to 53.11 dollars a barrel. Brent North Sea crude for May delivery advanced 37 cents to 53.84 dollars.

Investors believe that there will be cooperation to lift the world economy out of the recession (after the G20 summit). They are coming back into the market based on the belief that the economy is not as bad as it could have been.

HUBCO receives Rs35.458 bln from WAPDA

KARACHI: The Hub Power Company (HUBCO) has received a payment of outstanding amount of Rs35.458 billion from WAPDA through circular debt settlement arranged by the federal government.

According to HUBCO communique despatched to KSE, Rs30.156billion were immediately paid to Pakistan State Oil (PSO) in accordance with settlement procedure. After this settlement, the receivables against WAPDA are estimated at Rs27.8 billion while HUBCO has to pay Rs24 billion to PSO against the supply of furnace oil.

Oil refineries production sees over 4 per cent growth

ISLAMABAD: The total production of oil refineries has witnessed a growth of 4.14 percent during the corresponding fiscal year 2007-08.

The total production (energy and non-energy) by the refineries during the year amounted to 11.10 million tons as compared to previous year’s 10.66 million tons, posting a growth of 4.14 percent, according to official sources.

All the refineries, except National Refinery Limited (NRL) registered increase in production during the period, while the production by Bosicor refinery was significantly higher due to its increased production capacity resulting from revamping and de-bottle-necking of crude distillation unit.

PARCO’s annual growth for the year under review stood at 3735.8 tons against the previous year’s 3586.2 tons, showing increase of 4.17 percent.

NRL could not perform well in 2007-08 as its production fell to 2585.1 tons from last year’s 2664.5 tons, registering decrease by 2.98 percent.

While, Attock Refinery Limited and Bosicor Pakistan Limited exhibited good performance by attaining 5.39 percent and 16.29 percent respectively.

Oil weaker in Asian trade

SINGAPORE: Oil weakened in Asian trade Friday after an overnight rally driven by the surge in US equity markets, analysts said.

New York’s main contract, light sweet crude for May delivery dropped 29 cents to 54.05 dollars. Brent North Sea crude for May delivery was off 21 cents to 53.22 dollars.

Crude prices likely ran out of steam amid worries the worst is not over for the US economy, analysts said.

Oil prices up in Asian trade

SINGAPORE: Oil prices rose in Asian trade Monday, driven by optimism in the financial markets ahead of an expected US government announcement of a plan to sell toxic assets, analysts said.

New York’s main futures contract, light sweet crude for delivery in May, was up 30 cents to 52.37 dollars a barrel. The Nymex contract for April delivery expired on Friday.

Brent North Sea crude for May delivery gained 45 cents to 51.67 dollars.

“Right now, the crude oil market is primarily driven by the financial markets,” said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore. “What we are seeing in the crude oil market is a financial rally.”

The US government is expected to to unveil the plan as early as Monday to sell toxic assets weighing down the financial system.

US Treasury Secretary Timothy Geithner would detail the “Public Private Investment Programme” to entice hedge funds and other private investors into investing in bad assets choking banks’ balance sheets, US officials said.

World oil prices below 49 dollars

SINGAPORE: World oil prices retreated in Asian trade Wednesday after topping a two-month high above 49 dollars overnight on concerns over weak global energy demand amid the economic downturn, analysts said.

New York’s main futures contract, light sweet crude for delivery in April, fell 65 cents to 48.51 dollars a barrel in morning trade.

It had jumped 1.81 dollars in New York trade Tuesday to close at 49.16 dollars after hitting 49.82, its highest level since January 6.

Brent North Sea crude for May delivery was down 47 cents to 47.77 dollars. The April contract expired Monday at 43.98 dollars.

“Demand is still the key. Yet we still have to see the demand for oil and natural gas increase before we get too excited about a change in trend,” said Phil Flynn of Alaron Trading in the United States.

“Oil demand in the US is weak and we need to see that change… If oil closes above 50 dollars a barrel we may need to start getting a bit bullish.”

The market was also waiting for the release later Wednesday of the weekly US energy inventories report, which is closely watched because the United States is the world’s biggest oil consumer.

Analysts said speculation that the Organisation of Petroleum Exporting Countries (OPEC) would slash production during their next meeting in May should support prices.

OPEC, which pumps about 40 percent of the world’s crude, opted at their last meeting Sunday in Vienna to leave production quotas unchanged.

Oil prices retreat in Asia

SINGAPORE: World oil prices retreated in Asian trade Wednesday after topping a two-month high above 49 dollars overnight on concerns over weak global energy demand amid the economic downturn, analysts said.

New York’s main futures contract, light sweet crude for delivery in April, fell 65 cents to 48.51 dollars a barrel in morning trade.

It had jumped 1.81 dollars in New York trade Tuesday to close at 49.16 dollars after hitting 49.82, its highest level since January 6.

Brent North Sea crude for May delivery was down 47 cents to 47.77 dollars. The April contract expired Monday at 43.98 dollars.

Iraq: Oil prices may drag budget lower

BAGHDAD – Iraq’s parliament pushed back voting Saturday on this year’s budget and could be forced to make further cuts because of falling oil prices.

The latest delay in trying to ratify the current $64 billion budget proposal highlights the financial squeeze facing Iraq as declining oil revenues cut into reconstruction plans such as new roads and improved utilities — which the Shiite-led government hopes to use as showcases in national elections later this year.

The pinch has also brought calls by Prime Minister Nouri al-Maliki for proposals to diversify Iraq’s oil-dependent economy with expansion of agriculture and other trade. But Iraq’s plans for this year have been dragged down along with the price of oil, which is now less than $45 a barrel after hitting highs last summer of $150 a barrel.

A Sunni lawmaker, Ayad al-Samarraie, predicted the budget will face more trimming after several previous cuts from its original $79 billion. The current budget is based on a $50 a barrel projection.

“We don’t expect that oil will reach this price,” said al-Samarraie, a member of the chamber’s financial committee.

He urged lawmakers to take a comprehensive look at all spending, suggesting that more money go to electricity and other public projects at the expense of deeper cuts in other areas.

Shatha al-Mousawi, the Shiite member of the finance committee, called for possible sharp reductions in the National Security Adviser office, which was established shortly after the fall of Saddam Hussein in 2003. She said it has 377 employees and suggested cutting it to just 16.

“The studies and reports show that the falling oil prices will continue for two or three years,” she said.

It was unclear when the budget could eventually come for a vote.

Army Lt. Gen. Frank Helmick, commander of Multi-National Security Transition Command, told The Associated Press that the budget crisis would force Iraq to make some very difficult decisions about how to grow its security forces.

“They are many, many hard decisions that they are going to have to make,” he said.

He said U.S. military advisers have been making recommendations to the Iraqi security officials on possible ways to deal with the shrunken budget. An example, Helmick said, could be reducing the number of Abrams tanks sought by Iraqi forces.

He said essential services such as Iraqi police and military payroll, electricity and water could not be cut.

In Diyala province northeast of Baghdad, Iraqi forces arrested 11 suspected insurgents including the so-called “oil minister” of the self-styled Islamic State of Iraq, a purported political faction linked to al-Qaida in Iraq.

An Interior Ministry statement said Ali Mahmoud Mohammed and 10 other suspected insurgents were arrested in a raid in a Diyala village. No other details were given.

An al-Qaida front group announced the formation of an “Islamic Cabinet” in April 2007 in a bid to challenge the Iraqi government. The Cabinet purportedly includes the leader of al-Qaida in Iraq as “war minister.”

Iraqi authorities accuse Mohammed of hijacking oil tanker trucks, kidnapping and killing the drivers and blowing up oil pipelines.

In Baghdad, the head of the Iraqi High Tribunal said a mid-April trial date is planned for the first war crimes trial of Iraqis since the U.S.-led invasion.

Two members of Saddam’s former Baath Party are accused of executing two British soldiers taken captive by a mob in southern Iraq in 2003. The exact trial date has not been set, said Aref al-Shaheen, the head of the Iraqi High Tribunal, which was set up to hear the cases against members of Saddam’s regime.

The trials of Saddam and others have been under charges of crimes against humanity.

“It is the first case of war crimes … The two wounded soldiers were killed instead of given medical treatment,” said al-Shaheen.

At least 15 U.S. troops died in Iraq in February, including 12 who were killed in combat, according to an Associated Press tally. That compared with nine U.S. combat deaths in January.

A report from Iraq’s Interior and Health ministries said 211 civilians were killed and 437 wounded in February — compared with 138 killed and 303 wounded in January. The figures were given by officials from the ministries who spoke in condition of anonymity because they were not authorized to release the information.

___

Associated Press writers Sameer N. Yacoub, Sinan Salaheddin and Chelsea J. Carter contributed to this report

source : news.yahoo.com

Oil mixed in Asian trade

SINGAPORE: Oil prices were mixed in Asian trade Thursday ahead of a report expected to show a build-up in US crude inventories during the recession, dealers said.

New York’s main contract, light sweet crude for March delivery, eased a penny to 34.61 dollars a barrel, within sight of the 32.40 dollars hit on December 18, when prices hit their lowest point in nearly five years.

Brent North Sea crude for April delivery was 36 cents higher at 39.91 dollars.

source : jang.com.pk

Oil prices steady in Asia

SINGAPORE: World oil traded steady in Asia on Monday after OPEC member Iraq predicted the cartel will announce further production cuts in a market struggling with weak demand.

New York’s main oil futures contract, light sweet crude for delivery in March, rose seven cents to 40.24 dollars a barrel in afternoon trade. Brent North Sea crude for March rose two cents to 46.23 dollars a barrel.

Iraq’s oil minister at the weekend predicted that the Organisation of the Petroleum Exporting Countries (OPEC) plans more output reductions.

“In March, OPEC will convene and there will be an intention for more production cuts to shore up prices and encourage production from non-OPEC members,” Hussein al-Shahristani said, according to his close adviser Falah al-Amiri.

OPEC recently signalled it would consider more output cuts in a bid to bolster prices. Since last July, when oil prices hit records above 147 dollars a barrel, prices have tumbled because of weaker demand in a slowing global economy, analysts say.

OPEC announced production cuts totalling 4.2 million barrels per day late last year but David Johnson, an oil analyst with Macquarie Securities, said 2.75 million barrels have so far been cut in practice. He said he does not see daily cuts exceeding four million barrels. “I don’t think they can do much more than that,” Johnson said.

Oil prices are stuck in the 40 to 45 dollar range, balanced between expectations of OPEC’s next moves and poor demand reflected in economic data such as Friday’s US unemployment figures, he said.

source : jang.com.pk

Oil prices decline on rising US stockpiles

LONDON: Oil prices slumped Wednesday as data revealed larger than expected gains for energy stockpiles in the United States, the world’s biggest crude consuming nation, dealers said.

New York’s main contract, light sweet crude for delivery in February, slid 3.24 dollars to 45.34 dollars a barrel.

Brent North Sea crude for February shed 2.13 dollars to 48.40 dollars a barrel on London’s Inter Continental Exchange.

The US government’s Department of Energy said that stockpiles of crude increased by 6.7 million barrels last week, far higher than analysts predictions of a gain totalling only 700,000 barrels.

Inventories of distillates which include heating fuel — currently in high demand during the ongoing US winter — meanwhile grew by 1.8 million barrels in the week to January 2, above market expectations of 800,000.

“The builds were much higher then expected,” said Sucden trader Robert Montefusco. Ahead of the data, oil prices had risen back above 50 dollars this week on supply worries owing to deepening political frictions in Europe and the oil-rich Middle East.

On Tuesday, the New York contract hit an intra-day peak of 50.47 dollars and Brent leapt to 52.21 — the highest level in more than a month.

Prices had rallied by more than two dollars on Monday after Israel sent soldiers into the Gaza Strip.

Along with the Israeli-Hamas conflict, prices had also risen because of a Russia-Ukraine gas row curtailing supplies to Europe. Shortages of natural gas have spread across Europe, reaching France and Italy.

In addition, freezing temperatures across Europe have also boosted demand for heating fuel.

On Wednesday meanwhile, Libya’s envoy to OPEC said the cartel was not considering holding an extraordinary meeting next month, contradicting Iran which said OPEC would meet in Kuwait in February.

source : jang.com.pk

Oil prices mixed as market focuses on soft demand

NEW YORK: Oil prices were mixed Tuesday as market concerns about soft demand eclipsed supply concerns amid rising geopolitical tensions in the oil-rich Middle East and a gas war between Russia and Ukraine.

New York’s main contract, light sweet crude for February, fell 23 cents a barrel to close at 48.58 dollars on the New York Mercantile Exchange.

In London, Brent North Sea crude for delivery in February rose 91 cents to settle at 50.53 dollars on the InterContinental Exchange.

“There was probably some profit taking, bolstered by the latest economic statistics which are negative. They highlighted the weakness of demand, while recently the market has been preoccupied by supply,” said Antoine Halff, an analyst at Newedge Group.

US data showed a moderating decline in the huge services sector and a continued fall in industrial orders.

Oil prices had found support above 50 dollars a barrel during the session on supply worries due to deepening geopolitical frictions, analysts said.

The New York futures contract hit an intra-day peak of 50.47 dollars and Brent leapt to 52.21 dollars, a level last seen on December 1.

Oil prices have firmed amid the Israel-Hamas conflict in the Gaza Strip and an escalating Russia-Ukraine gas war that is curbing supplies to Europe, analysts said.

source : jang.com.pk

Oil prices higher in Asia on Mideast conflict

SINGAPORE: World oil prices rose in Asian trade Monday afternoon, fuelled by the ongoing conflict in the Middle East after Israel stepped up its military onslaught on Gaza, analysts said.

New York’s main contract, light sweet crude for February delivery, was up 1.21 dollars to 47.55 dollars a barrel in the afternoon. The contract closed 1.74 dollars higher at 46.34 Friday on the New York Mercantile Exchange. Brent North Sea crude for February delivery was trading 81 cents higher at 47.72 dollars in afternoon trade Monday. It closed Friday 1.32 dollars higher at 46.91 dollars. “The Gaza conflict added to the geopolitical risk premium embodied in the oil price,” said David Moore, a Sydney-based commodity strategist with the Commonwealth Bank of Australia. Israel poured ground troops into Gaza late on Saturday, stepping up an eight day long bombing campaign of Hamas targets, aimed at ending the Islamist movement’s rocket attacks across the border. Despite the spike in oil prices, analysts said the rally was likely unsustainable because of low energy demand caused by a weak global economy.

source : jang.com.pk

Oil prices slip below 40 dollars on weak demand

NEW YORK: Oil futures slipped below 40 dollars a barrel on Tuesday as the market focused on weak energy demand after hefty price gains a day earlier amid the Israel-Hamas conflict.

New York’s main contract, light sweet crude for February, closed 99 cents lower at 39.03 dollars a barrel.

In London, Brent North Sea crude for delivery in February slipped 40 cents to settle at 40.15 dollars a barrel.

Both benchmark contracts had spiked more than two dollars Monday on the third day of escalating violence between Israel and Hamas.

Israel unleashed a massive bombardment of Hamas targets in the Gaza Strip on Saturday in response to ongoing rocket fire from the territory.

Israel on Tuesday rejected world appeals for a truce and warned its deadly assault on Gaza could last for weeks as warplanes pummeled Hamas positions for a fourth day and tanks massed on the border.

Prices had been higher because of a “political risk premium” resulting from the violence in the Gaza Strip, said Jonathan Kornafel of trading group Hudson Capital Energy.

Kornafel said, however, that underlying weak demand for energy was now weighing on crude futures.

“Despite the reaction to the violence in Israel, oil traders have to wonder whether these moves, created in part by this conflict, are sustainable over the long run,” said Phil Flynn, an analyst at Alaron Trading.

The fighting has fueled fears of wider tensions in the oil-rich Middle East, while thin volumes amid the year-end holiday season also contributed to price volatility.

“It is probably not productive to search too deeply for the rationale behind market movements at this time of year because they are generally more expressive of accounting necessities than market sentiment,” said Mike Fitzpatrick at MF Global.

A sharp global downturn has slashed world demand, pulling oil down from record highs above 147 dollars a barrel in July. New York crude plunged earlier this month to below 33 dollars, its lowest point for almost five years.

source : jang.com.pk

Oil prices follow Wall Street on wild ride

COLUMBUS, Ohio – Oil prices swung wildly Thursday following a lead from Wall Street, which sank 300 points before investors flooded back into the market.

Light, sweet crude for December delivery rose $2.08 to settle at $58.24 on the New York Mercantile Exchange. Crude earlier dipped as low as $54.67, a price last seen in January 2007, on reports that the world’s biggest economies are in recession and that energy demand has declined to decade-ago levels.

The Dow dropped briefly below 8,000 — falling more than 300 points — to retest lows that it hit Oct. 10 before a sharp climb into positive territory. The Standard & Poor’s 500 index dropped to 818.69 before staging its own strong rally.

“The main driver is the turnaround in the S&P,” said Addison Armstrong, director of market research at Tradition Energy.

There was also chatter about yet another extraordinary meeting by the Organization of Petroleum Exporting Countries to cut production for the second time in less than a month.

“They might actually mean it this time,” said Mike Zarembski, senior commodity analyst at OptionsExpress.

“We’re still in a downtrend, but even in a downtrend there are up days.”

There are serious doubts about OPEC’s ability to control prices through production levels. Energy analysts increasingly have come to believe that demand, not supply, is in control of the market.

OPEC slashed production quotas by 1.5 million barrels a day when they met at the end of October.

It had virtually no effect on tumbling crude prices.

Before the rally, crude has fallen 12 percent this week alone under a daily barrage of economic predictions that industries and consumers have cut back on spending. Gasoline prices have fallen nearly 50 percent since hitting a record national average of $4.11 per gallon in July.

While tumbling gas prices are a relief for consumers who have been shaken by job losses and declining home prices, economists now fear that the resulting decline in exploration and production by oil companies will lead to a massive price spike when economies rebound.

On Thursday, the Labor Department reported a larger-than-expected jump in unemployment claims and Wal-Mart Stores Inc., world’s largest retailer and a barometer for consumer spending, cut its full-year outlook.

On Wednesday, the price of crude for December delivery fell for the 59th time since the peaking of the July bubble when prices hit a $147 a barrel, with the contract falling an average $1.09 per barrel over the last 88 sessions, according to information complied by trader and analyst Stephen Schork

On Thursday, the Organization for Economic Cooperation and Development said the U.S., Europe and Japan are in a recession, the first time all three have been in a downturn together since 1974-5 when Western nations were under duress from an Arab oil embargo and a severe bear market for stocks.

The Paris-based group said the U.S. economy would contract next year by 0.9 percent, Japan’s by 0.1 percent and the euro area by 0.5 percent. It said the gross domestic product was likely to fall by 0.3 percent in 2009 for its 30 member countries, representing democracies with market economies.

For the fourth quarter, the organization said its members would likely see a contraction of 1.4 percent on a year-on-year basis, with the U.S. down 2.8 percent, and Japan and the euro area 1.0 percent lower.

The latest forecasts were a sharp downgrade from June, when it forecast growth of 1.7 percent in 2009 and suggested the worst of the financial crisis may have passed.

Also on Thursday in Paris, the International Energy Agency slashed its demand forecast more than it has in a decade.

The agency now expects global oil demand to average 86.2 million barrels a day this year, nearly flat compared with 2007, and 86.5 million barrels a day next year. The cuts come on top of those already made in the IEA’s October and September reports.

Oil demand within the 30 OECD countries now is forecast to fall by 2.7 percent this year and by 1.6 percent in 2009, in the IEA’s latest view.

The decline in prices also has battered the economy of several key oil-producing countries.

Russia’s equity markets have declined in lockstep with crude, with Urals blend oil — the primary kind produced by Russia — falling below $50 a barrel on Thursday. It was the lowest price for Urals blend since January 2007.

The IEA warned on Wednesday that more than a trillion dollars in annual investments to find new fossil fuels will be needed for the next two decades to avoid an energy crisis that could choke the global economy.

But investment by the oil industry looks increasingly unlikely, at least in the near future.

The Labor Department reported Thursday that jobless claims last week increased by 32,000 to a seasonally adjusted 516,000. That nearly matched the 517,000 claims reported seven years ago, and is only the second time since 1992 that claims have topped 500,000.

The total also was much higher than analysts expected.

Prices at the pump continued to fall, dropping 2.4 cents overnight to $2.178, according to auto club AAA, the Oil Price Information Service and Wright Express.

Prices in some parts of the country were even lower, hitting $1.63 in Kansas City, Mo., and $1.74 in Tulsa, Okla., according to GasBuddy.com, which lets consumers post prices.

The continuing decline comes as crude inventories remained flat in the U.S. last week, while gasoline stockpiles rose much more than expected, according to government data released Thursday.

OPEC, which produces about 40 percent of world supplies, has signaled it may cut production before its next meeting in December on top of a 1.5 million barrel reduction in output quotas last month.

Thursday’s pessimistic IEA oil demand forecast could speed up OPEC’s decision for another quick production cut.

For the week ended Nov. 7 crude-oil inventories remained at 311.9 million barrels, which is 2 percent above year-ago levels, the Energy Department’s Energy Information Administration said in its weekly report.

Analysts had expected a boost of 1.1 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

It was the second consecutive week in which inventory was flat.

In other Nymex trading, heating oil futures fell 4 cents to settle at $1.875 a gallon, while gasoline prices rose 5.4 cents to settle at $1.3024 a gallon. Natural gas for December delivery slid 8.7 cents to settle at $6.318 per 1,000 cubic feet.

In London, December Brent crude fell 38 cents to settle at $51.99 a barrel on the ICE Futures exchange. Prices hit a three-year low of $50.60 earlier in the day.

Oil prices steady after fall to near 50 dollars

LONDON: Oil prices steadied on Thursday after falling close to 50 dollars a barrel in London trade as the International Energy Agency warns of sliding energy demand around the globe.

With prices tumbling to the lowest levels in almost two years and down almost two-thirds in value compared to record highs of above 147 dollars a barrel in July, analysts said.

OPEC was certain to call an emergency meeting to announce further cuts to output.

Traders were meanwhile gearing up for the latest weekly snapshot of US energy inventories, which has been delayed a day to Thursday because of Veterans Day earlier in the week.

Brent North Sea crude for delivery in December tumbled to 50.60 dollars a barrel — the lowest point since January 2007.

Later on London’s Inter Continental Exchange (ICE), the contract recovered to stand at 52.14 dollars, down 23 cents from Wednesday’s close.

Saudi stocks tumble with world markets, oil prices

The Saudi Arabian Stock Exchange began the week Saturday with its largest decline in four years, a reaction to the world’s tumbling markets and oil prices, an economist said.

The index for all stocks finished the day down 536 points, or 8.7 percent, and several sectors dropped almost 10 percent, according to the Web site for the exchange, known as Tadawul. Saturday is the first day of the week according to the Saudi Arabian calendar.

But there’s little reason to worry about the drop, according to John Sfakianakis, chief economist for the Saudi British Bank. The precipitous drop in stock values is probably related to the tumbling U.S., European and Asian markets, as well as the falling price of oil, the economist said.

“It shouldn’t be a benchmark for the well-being of the economy,” Sfakianakis said.

After the markets closed, the state-run news service reported that King Abdullah announced that he would deposit 10 billion riyals ($2.67 billion) into the Saudi Bank of Credit and Saving. The “royal gift” will be used for loans to citizens, the Saudi Press Agency reported.

Under Saudi law, no company or sector can lose or gain more than 10 percent of its value in one day, Sfakianakis said.

Saudi stocks fell as financial officials from Gulf Cooperation Council states met in the Saudi capital of Riyadh to discuss the international economic crisis. King Abdullah also met Saturday with U.S. Deputy Treasury Secretary Robert Kimmitt and U.S. Ambassador Ford Fraker.

Insurance agencies, banks and oil refineries were among the Saudi companies to hit the 10-percent threshold in Saturday trading, according to the Tadawul site.

Trading was cut off for companies whose values dropped 10 percent, in accordance with Saudi law, Sfakianakis said. Any purchases or sales of those companies’ shares made after the cutoff will be represented in Sunday’s transactions, he said.

Also, several sectors came within fractions of a point of hitting the threshold, including hotel and tourism (9.93 percent), real estate development (9.9), media and publishing (9.89) and retail (9.86).

Although all indices fell, according to the Tadawul Web site, the energy and utilities sector fared the best, losing only 6.4 percent of its value in Saturday trading.

Despite the stock plunge, Sfakianakis said, the Saudi economy remains strong and is showing signs of real growth in its gross domestic product.

Oil prices — a staple of the Saudi economy — will probably rise again, and the Saudi banking system is healthy and “one of the best capitalized financial sectors in the world,” he said.

Light crude closed Friday at $64.15 a barrel, down $3.69. It was trading at more than $130 a barrel over the summer.

Investors are expected to jump back into the Saudi markets as the declining stock prices yield more and more bargains, he said.

“The news is not that bad,” Sfakianakis said. “I’m very optimistic about the Saudi economy.”

Gulf Cooperation Council financial officials released a statement Saturday saying they had taken precautionary measures to stem the effects of the world financial crisis and stood ready to confront further developments, according to the state-run Saudi Press Agency.

The group also announced that it would sign a free-trade agreement with the European Union by year’s end, the agency reported.

“The growth of the economies of the GCC countries is expected to continue with good rates,” the agency reported.

The GCC comprises Saudi Arabia, Kuwait, Oman, Bahrain, Qatar and the United Arab Emirates.

Oil prices slide on recession fears; Brent below 70 dlrs

NEW YORK: World oil prices skidded Wednesday on recession fears that swept markets after massive government interventions to kick-start frozen credit flows in the global financial crisis.

New York’s main contract, light sweet crude for November, slid 4.09 dollars to close at 74.54 dollars.

In London, Brent North Sea crude futures plunged below 70 dollars in electronic trading after the market close, dropping below the level for the first time since June 2007.

Brent fell as low as 69.97 dollars a barrel, after settling 3.73 dollars lower at 70.80 dollars. The futures contracts had fallen to intraday lows of 74.32 dollars in New York and 70.21 dollars in London, levels last seen in August 2007.

“The oil market is caught in the wake of four tsunamis: a global recession, tighter credit, increased refining capacity, and rising non-OPEC supplies — all of which pressure the demand for OPEC crude,” JPMorgan analyst Lawrence Eagles said in a report.

“The developments have taken perceived recessionary economic conditions to a state that is far more concrete, and severe,” he said.

The Organization of the Petroleum Exporting Countries slashed its estimate of growth in demand this year and shaved its estimate for 2009, citing an “excessive” easing of demand in the United States, the single biggest energy consumer.

The organization’s monthly report noted “bearish” oil price trends and signs of “recession” in the US, Europe and Japan.

OPEC member Nigeria’s oil minister Odein Ajumogobia said his country is concerned about falling oil prices,

“Of course we are concerned because we are budgeting based on a benchmark price and we have to obviously try and ensure that we meet our budget. If the price falls below the budget, there will be consequences. Of course it’s a matter of concern to all oil-producing countries,” he told media.

Crude oil prices, which hit record highs above 147 dollars in July, have since slid on demand concerns in a slowing global economy facing the worst financial crisis since the 1930s Great Depression.

Ajumogobia declined to say what Nigeria would propose at a special OPEC meeting on November 18. Several OPEC members have called for the meeting to decide on an output cut to shore up falling prices.