Oil Stocks in US Strategic Petroleum Reserve Fall to Lowest Level since 1982
Stocks of crude oil in the US Strategic Petroleum Reserve fell to 283 million barrels last week, the lowest level since October 1982, according to data from the Department of Energy, Reuters reported.
The drawdowns are part of a US agreement to release 172 million barrels from the facility.
Additionally, the Trump administration last week said it is offering to loan energy companies 40 million barrels of oil from the Strategic Petroleum Reserve.
Saudi Market Resumes Decline Under Pressure from Banking Sector
The Saudi Exchange's main index, TASI, resumed its decline at the close of Monday's trading, falling 0.25 percent to 10,479 points.
The decline was driven by losses in a number of stocks. On Sunday, the index had ended a losing streak, rising about 1 percent.
Riyadh Development Company (Ridan) led the decliners, falling 4.43 percent to SAR18.13, followed by SNB, which dropped 2.77 percent to SAR38.60, and BSF, which fell 2.75 percent to SAR19.80.
On the other hand, Saudi Fisheries Company led the gainers, rising 9.96 percent to SAR51.90, followed by East Pipes Integrated Company, which gained 7.70 percent to SAR184.70, and Leden, which rose 6.98 percent to SAR1.84.
Saudi Arabia's SAL Expands Logistics Options as Global Trade Map Shifts
The speed and cost of transporting shipments are no longer the only factors determining companies' choices in the logistics services market. Geopolitical disruptions and changes in global trade routes have redefined the concept of supply chain efficiency. Securing transportation alternatives, the ability to shift quickly between routes and modes of transport, and ensuring the uninterrupted flow of goods have become more prominent factors in customer decisions.
In Saudi Arabia, this shift is reflected in growing demand for integrated logistics services, alongside the expansion of industrial activity, imports, and infrastructure investment. Companies operating in the sector are taking advantage of this trend to expand their operational capabilities and develop solutions that combine air, land, and sea transport, providing greater flexibility in response to changes in global trade.
SAL is among the leading beneficiaries of this demand, having recorded its highest quarterly revenue in its history during the second quarter of this year, at SAR512.1 million ($136.6 million), up 30 percent year on year. Net profit rose 18 percent to about SAR191 million ($50.9 million). In the first half of the year, revenue increased 23.1 percent to SAR957.9 million ($255.4 million).
Rayan Al-Bakri, CEO of SAL's logistics business, said that "reliability and flexibility have become among the most important factors influencing customer decisions and global supply chains." He noted that when certain trade routes or transportation channels face operational challenges or unexpected changes, customers turn to solutions that ensure business continuity and speed of access to markets.
He added in an exclusive statement to Asharq Al-Awsat that SAL is seeing growing interest in integrated logistics solutions that combine more than one mode of transport according to each customer's needs. He explained that the company does not view air or land freight as direct alternatives to sea transport, but rather as complementary elements within a single system designed to achieve efficiency and flexibility in the movement of goods.
Al-Bakri said that "goods always find a way to reach the end customer, with the means varying," noting that the company continues to leverage strategic partnerships to expand logistics connectivity options for customers.
In this context, he pointed to SAL's cooperation with SPARK Logistics to activate a new land corridor between the Port of Sohar in Oman and the dry port at King Salman Energy Park (SPARK). He said the route strengthens regional trade flows and increases the flexibility and reliability of supply chains.
He also pointed to increased operating capacity at airports and the provision of solutions to receive and accommodate demand from customers and partners in the domestic and Gulf markets, alongside connecting airports through an integrated operating network to enhance supply chain flexibility.
Al-Bakri views the outlook for demand for SAL's services positively in the coming period, amid continued growth in inbound shipments and expanding imports of spare parts and equipment related to industrial activities, as well as rising demand for more integrated and flexible logistics solutions across the region.
According to Al-Bakri, this outlook is based on several factors, including the diversity of the customer base, the expansion of specialized logistics services, and the investments the company is making to strengthen its operational capabilities and infrastructure.
Domestic consumption and the building of strategic inventories for most products are also creating opportunities for sustainable growth across the sector as a whole.
At the same time, the sector is dealing with a range of global variables that could affect profitability and operating costs, including transportation, insurance, and energy costs, as well as geopolitical developments that could affect international trade flows.
Al-Bakri said SAL is focusing instead on improving operational efficiency, increasing productivity, leveraging modern technologies, and diversifying revenue sources to support sustainable performance over the long term.
He added that the ability to adapt quickly to changes, along with operational discipline and continued investment in value-added services, would remain among the key factors supporting the company's performance in the coming period, ensuring business continuity and maintaining service levels for partners and customers across different sectors and services.
