COP16: Saudi Arabia the biggest laboratory of development ideas, says top official 

SINGAPORE: Oil prices edged up on Wednesday, buoyed by a weaker dollar, but mounting fears of a US economic slowdown and the impact of tariffs on global economic growth capped gains.

Brent futures rose 51 cents, or 0.7 percent, to $70.07 a barrel at 7:30 a.m. Saudi time, while US West Texas Intermediate crude futures gained 52 cents, or 0.8 percent, to $66.77 a barrel.

Despite the weakening economic outlook, oil held steady in a positive position, said Daniel Hynes, senior commodity strategist at ANZ. “That’s a sign that near-term demand for crude remains strong.”

The dollar index, which fell 0.5 percent to fresh 2025 lows on Tuesday, boosted oil prices by making crude less expensive for buyers holding other currencies.

“Easing dollar counters the bearish bias of global economic slowdown, although this seems short-lived,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

US stock prices, which also influence the oil market, fell again on Tuesday, adding to the biggest selloff in months, with investors rattled over increased tariffs on imports and souring consumer sentiment.

“Overall sentiment remains fragile despite a slight bounce in today’s session,” said Yeap Jun Rong, market strategist at IG.

“For now, oil market sentiments are likely to stay contained, with tariff developments still lacking clarity and persistent concerns over US growth risks,” Yeap added.

US President Donald Trump’s protectionist policies have shaken global markets. He has imposed, then delayed tariffs on major oil suppliers Canada and Mexico, while also raising duties on China, prompting retaliatory measures.

Over the weekend, Trump said a “period of transition” was likely and declined to rule out a US recession.

In supply, US crude oil production is poised to set a larger record this year than prior estimates, at an average 13.61 million barrels per day, the US Energy Information Administration said on Tuesday.

Investors are waiting for US inflation data due on Wednesday for clues on the path of interest rates. They also are closely monitoring OPEC+ plans. The producer group has announced plans to increase output in April.

In the US, crude oil stockpiles rose by 4.2 million barrels in the week ended March 7, market sources said, citing American Petroleum Institute figures on Tuesday.

Markets now await government data on US stockpiles due on Wednesday for further trading cues. (Reporting by Nicole Jao in New York and Jeslyn Lerh in Singapore; Editing by Himani Sarkar and Jamie Freed)

RIYADH: Companies in the Gulf Cooperation Council have maintained strong credit qualities despite the economic uncertainty caused by geopolitical tensions, according to Moody’s Investors Service.

A report from the firm stated that a significant number of GCC firms continue to benefit from strong balance sheets, low leverage, and ample cash reserves, ensuring financial stability and resilience.

Outstanding debt was steady at $410 billion last year, and is likely to remain at this level in 2025, Moody’s added. 

Heightened geopolitical tensions remain the main source of near-term credit risk in the region. Sound economic and operating conditions, robust business models, effective operating execution and financial discipline, were also cited as key reasons for the stability seen by many companies.

Mikhail Shipilov, vice president and senior analyst at Moody’s Ratings, said: “This translates into good financial performance, strong credit metrics and solid liquidity, which are likely to be sustained over the next 12 months.” 

He added: “Many companies have features that mitigate geopolitical risks, which have had a limited effect so far on credit quality. These features include geographic diversification of operating assets, alternative supply routes or a focus on domestic markets.”

Many GCC companies have adopted strategic measures to mitigate risks from geopolitical uncertainties, according to the report.

Several companies have diversified their operational presence, securing stability through international markets. Alternative supply routes and a focus on domestic demand provide an additional buffer against potential disruptions, Moody’s said.

While Qatari firms remain relatively more exposed due to their asset concentration, their strong sovereign backing and liquidity reserves continue to reinforce financial resilience.

Macroeconomic conditions remain favorable for domestic-driven sectors, including real estate, telecommunications, and utilities.

Economic diversification initiatives, particularly in Saudi Arabia and the UAE, continue to drive non-hydrocarbon growth.

The UAE’s economy is forecast to have expanded by 3.8 percent in 2024, with 4.8 percent growth in 2025, supported by a buoyant real estate sector and strong foreign investment.

Saudi Arabia is set to see 3.3 percent GDP growth in 2025 and 4.8 percent in 2026, bolstered by large-scale infrastructure projects and a growing tourism sector.

Export-oriented companies, especially in the oil, gas, and petrochemical industries, continue to demonstrate resilience, according to the report.

Saudi Aramco stands out with its “immense operational scale, low production costs and downstream integration,” according to the report.

QatarEnergy benefits from vast, low-cost gas reserves and an expanding liquefied natural gas portfolio, securing its role as a major player in the energy sector.

Regional petrochemical companies leverage cost-efficient feedstock and advanced facilities to maintain a competitive edge in global markets.

The credit outlook for GCC corporates remains stable, supported by sound financial policies and government-led economic initiatives.