WASHINGTON: Facing higher oil prices after Russia’s invasion of Ukraine, President Joe Biden is looking at invoking the Defense Production Act this week to increase the mining of critical minerals for the batteries used in electric vehicles.
That is according to a person familiar with the White House plans who insisted on anonymity to discuss the likely policy move.
Greater federal support for alternatives to fossil fuels would reduce the leverage of Russian President Vladimir Putin and others on matters of US national and economic security, though it reflects a long-term play rather than an immediate response to the economic damage caused by the war.
Biden’s likely order employing the Defense Production Act would provide a meaningful financial incentive to develop a domestic supply chain for electric vehicles and enable the shift away from gasoline-fueled autos.
Putin’s assault on Ukraine began more than a month ago, rattling global energy markets for petroleum and natural gas in ways that would likely hurt growth worldwide. US crude oil was trading at more than $107 a barrel on Wednesday morning, up from nearly $60 a year ago as inflation has emerged as a persistent threat.
The president is looking at invoking Title III of the 1950 Defense Production Act, which would provide the government with economic authorities to address industrial shortfalls. Mining companies could access money under the law for production of minerals including lithium, nickel, graphite, cobalt and manganese.
The government would not be issuing loans or directly purchasing minerals. The funding would instead cover feasibility studies, production at current operations and modernizing safety standards and production.
RIYADH: Dubai-based ride-sharing service provider Swvl will start trading its shares on US’s Nasdaq Stock Exchange at a price of $10 per share.
The firm will offer its shares on the US bourse through a merger with the American company Queen's Gambit Growth Capital with the purpose of acquisition.
Swvl will be offering a share ranging between 20-30 percent of the company’s total shares, Wamda reported.
It aims to expand its global footprint to several countries including the US, Colombia, Mexico, UK and South Africa.
With this initial public offering, the Dubai-based company will become the second Middle Easter unicorn startup to list on the US bourse, after music streaming platform Anghami’s debut.
Founded in 2017, Swvl currently operates in 16 countries including Saudi Arabia, Egypt, UAE, Kenya, Pakistan and Jordan.
RIYADH: Russia’s foreign currency and gold reserves have plunged by $38.8 billion since February, Bloomberg reported citing the central bank.
As of March 25, the country’s stockpile declined to the lowest level since last August to reach $604.4 billion.
The decline is attributed to the extended sanctions and the measures preventing the central bank from deploying its assets, which are compelled by the Russia-Ukraine war.
WASHINGTON: President Joe Biden on Thursday will announce the release of 1 million barrels of oil a day for the next six months from the US Strategic Petroleum Reserve to try to bring down gasoline prices, the White House said, according to Reuters.
Biden’s aim is to try to bring down gasoline prices that have soared in recent months particularly after Russia’s invasion of Ukraine.
Biden is to make the announcement at 1:30 p.m. EDT (1730 GMT) event at the White House.
“After consultation with allies and partners, the president will announce the largest release of oil reserves in history, putting one million additional barrels on the market per day on average – every day – for the next six months,” the White House said.
In addition, the Defense Production Act will be authorized to support the production and processing of minerals and materials used for large capacity batteries — such as lithium, nickel, cobalt, graphite, and manganese, the White House said.
The scale of the release of oil from the Strategic Petroleum Reserve was described by the White House as unprecedented.
“The world has never had a release of oil reserves at this 1 million per day rate for this length of time. This record release will provide a historic amount of supply to serve as bridge until the end of the year when domestic production ramps up,” it said.
The Department of Energy will use the revenue from the release to restock the SPR in future years, the White House said.
RIYADH: The Saudi stock market closed the month of March higher, despite investors fretting over Russia’s war in Ukraine, and the chaos it caused on the markets, which sent oil prices on a rollercoaster ride.
While it fluctuates daily up and down, the main index, TASI, ended the month gaining 3.9 percent at 13,090, in one of the best monthly performances.
TASI also witnessed a record high as it crossed 13,000 points for the first time since 2006, amid a strong earnings season for most major players.
In what is considered the region’s most active initial public offerings market, the value of initial share sales reached as high as $3.4 billion during the first quarter of this year.
The result was driven by a flurry of listings during the month of March, led by Nahdi Medical, which was also the largest listing since Aramco. Among others were Al-Dawaa Medical Services, and Al Masane Al Kobra Mining.
As for the parallel market, Nomu, it closed the month almost unchanged at 25,010 points.
While many investors’ moods soured amid the ongoing war, many investors feared that they would miss out on the seemingly unstoppable gains.
It's unclear how stock prices will react during the month ahead. Market sentiment could be downbeat and subject to wild swings, as the market is filled with uncertainty.
RIYADH: Water equipment and engineering services firm Saudi Arabian Amiantit Co. narrowed its losses by 56 percent to SR171 million ($25.6 million) in 2021.
A decrease in zakat provision, and the sale of stakes in subsidiaries in Morocco and Egypt contributed to the results, according to a bourse filing.
As of the closing bell on Thurs. March 31, Amiantit shares edged 0.87 percent lower at SR45.45.