Saudi insurer MEDGULF appoints chairman and vice-chairman for 3-year term
Oil Updates — Crude Rebounds; Saudi Aramco to merge two energy trading units; Biden takes on refinery companies
RIYADH: Oil prices rallied on Thursday after a sharp decline in the previous session, supported by tight oil supply and a spike in summer consumption, after a hike in US rates raised fears of a slowdown in growth economy and lower fuel demand.
Brent crude futures rebounded $1.10, or 0.9%, to $119.61 a barrel at 0202 GMT while US West Texas Intermediate crude futures hit 116.59 $ a barrel, up $1.28, or 1.1%.
Prices fell more than 2% overnight after the Federal Reserve raised the interest rate by three-quarters of a percentage point, the biggest rise since 1994.
Aramco Trading plans to absorb Motiva Trading
Saudi Aramco plans to merge two energy trading units, with Aramco Trading Co. due to the absorption of Motiva Trading ahead of a possible initial public offering by the company, people familiar with the matter said.
The decision to combine the businesses should give potential investors a better idea of the scale of Aramco’s trading and also allow the state oil producer to simplify financial reporting and reduce duplication.
The restructuring should be announced before the end of the year, said one of the two people familiar with the matter. The merger would come four years after Shell Plc left Motiva Enterprises, leaving Aramco in control of Motiva Trading and Motiva’s refinery, the largest in the United States.
Biden blasts oil refiners for record profits over pump pain
US President Joe Biden, under pressure from sky-high gasoline prices, on Wednesday called on oil refining companies to explain why they aren’t putting more fuel on the market as they reap windfall profits.
Biden wrote to executives at Marathon Petroleum Corp., Valero Energy Corp. and Exxon Mobil Corp., and complained it cut oil refining to boost profits, according to a copy of the letter seen by Reuters.
The letter was also sent to Phillips, Chevron Corp., BP and Shell, a White House official, who declined to be identified, told Reuters.
“In wartime, far above normal refinery profit margins passed directly to American families are not acceptable,” Biden wrote, adding that the lack of refining was driving gasoline prices up faster than oil prices. petrol.
(Contributed by Reuters)