Oil prices drop on weak economic data, restored Saudi oil supply
September 24, 2019, 10:55 am

Oil prices drop on weak economic data, restored Saudi oil supply

Oil prices fell on Tuesday amid a weakening outlook for demand and restored Saudi oil supplies.

Oil prices fell on Tuesday after weak manufacturing data from Europe and Japan pointed to a dampened outlook for demand, and Saudi Arabia pledged to restore production after recent attacks on its key oil facilities.

Brent crude futures, the international benchmark, fell 1.31 percent, or 0.85 cents, to $63.92. WTI crude fell 1.06 percent, or 0.62 cents, to $58.02 by 7:25 a.m. (EDT).

The flash eurozone purchasing manager’s index (PMI) fell in September to 45.6, its weakest level in nearly seven years, according to figures released on Monday.

Similarly, Japan’s manufacturing activity also shrank at its fastest pace in seven months in September, highlighting the impact of the trade conflict between China and the US.

“While there are serious risks around supply the global economy is not in condition to endure an oil price spike,” Edward Bell, Commodities Analyst at Dubai-based Emirates NBD Research told Al Arabiya English.

“PMI data out from the Eurozone and Japanese economies point to persistent weakness, particularly in manufacturing, while an uncertain prognosis for trade talks between the US and China will continue to weigh on investment and growth,” he added.

Saudi Arabia said last week that it had tapped into its strategic reserves to revive oil supplies after the September 14 attacks on its key oil facilities. The Kingdom also pledged to restore production to 11 million barrels per day (bpd) by the end of the month.

The attacks on Saudi Aramco’s oil-processing facilities, which are the core of the firm’s operations, took out 5.7 million bpd, about half of the Kingdom’s oil production, and around six percent of global oil supply.

“Oil prices will continue to move on conflicting assessments of how successful Aramco will be in restoring production at Abqaiq and Khurais,” Bell told Al Arabiya English. “If repairs take longer than currently expected by Saudi leadership, there is a risk that oil prices could move higher once again as not many producers have the ability to offset the scale of decline we’ve seen in Saudi Arabia.”

The aerial attacks on Saudi Arabia’s oil installations have been claimed by the Iranian-backed Houthi rebels in Yemen. The US says evidence indicates Iran carried out the strikes directly, a view that has been backed by European powers including Germany, France, and Britain.

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, has sponsored the BuildHer CityHack 2025 Hackathon, a two-day event spearheaded by the College of Engineering and Technology at the Royal University for Women (RUW).
Aimed at secondary school students, the event brought together a distinguished group of academic professionals and technology experts to mentor and inspire young participants.
More than 100 high school students from across the Kingdom of Bahrain took part in the hackathon, which featured an intensive programme of training workshops and hands-on sessions. These activities were tailored to enhance participants’ critical thinking, collaborative problem-solving, and team-building capabilities, while also encouraging the development of practical and sustainable solutions to contemporary challenges using modern technological tools.
BENEFIT’s Chief Executive Mr. Abdulwahed AlJanahi, commented: “Our support for this educational hackathon reflects our long-term strategic vision to nurture the talents of emerging national youth and empower the next generation of accomplished female leaders in technology. By fostering creativity and innovation, we aim to contribute meaningfully to Bahrain’s comprehensive development goals and align with the aspirations outlined in the Kingdom’s Vision 2030—an ambition in which BENEFIT plays a central role.”
Professor Riyadh Yousif Hamzah, President of the Royal University for Women, commented: “This initiative reflects our commitment to advancing women in STEM fields. We're cultivating a generation of creative, solution-driven female leaders who will drive national development. Our partnership with BENEFIT exemplifies the powerful synergy between academia and private sector in supporting educational innovation.”
Hanan Abdulla Hasan, Senior Manager, PR & Communication at BENEFIT, said: “We are honoured to collaborate with RUW in supporting this remarkable technology-focused event. It highlights our commitment to social responsibility, and our ongoing efforts to enhance the digital and innovation capabilities of young Bahraini women and foster their ability to harness technological tools in the service of a smarter, more sustainable future.”
For his part, Dr. Humam ElAgha, Acting Dean of the College of Engineering and Technology at the University, said: “BuildHer CityHack 2025 embodies our hands-on approach to education. By tackling real-world problems through creative thinking and sustainable solutions, we're preparing women to thrive in the knowledge economy – a cornerstone of the University's vision.”