Wednesday, 19 January 2022

OPEC+ Alone Cannot Solve World’s Oil-Supply Issues, #UAE Says - Bloomberg

OPEC+ Alone Cannot Solve World’s Oil-Supply Issues, UAE Says - Bloomberg

OPEC and its allies are increasing oil production but can’t solve all the sector’s issues alone, the United Arab Emirates’ energy minister said.

The industry needs investment, through the involvement of international oil companies, in order to provide adequate supplies, Suhail Al-Mazrouei said, according to the UAE’s state-run WAM news agency. Failure to provide sufficient capital may lead to future price hikes, he warned.

Crude prices rallied to a seven-year high above $89 a barrel in London on Wednesday as global demand recovers from the pandemic and supplies are curtailed by a host of disruptions. It’s an increasing challenge for consumers as they grapple with inflation, from fuels to food prices.

A large contributor to the rally has been the failure of many OPEC+ nations to restore output halted during the pandemic, as they contend with depressed spending of their own. The group added only 60% of its mandated output boost last month, according to the International Energy Agency. But diminished spending has also been an issue for the global industry, as a result of the 2020 price collapse and as investors divert cash away from fossil fuels.

The UAE remains committed to increasing its output as part of the OPEC+ accord, Mazrouei said.

#AbuDhabi leads most Gulf markets higher | Reuters

Abu Dhabi leads most Gulf markets higher | Reuters


Most stock markets in the Gulf ended higher on Wednesday, supported by strong oil prices, with the Abu Dhabi index outperforming the region.

Crude prices, a key catalyst for the Gulf's financial markets, rose for a fourth day after a fire on a pipeline from Iraq to Turkey briefly stopped flows, increasing concerns about an already tight supply outlook.

The Abu Dhabi index (.FTFADGI) advanced 1.6%, buoyed by a 3.9% rise in the country's largest lender First Abu Dhabi Bank (FAB.AD).

Credit ratings agency S&P Global said its AA score of Abu Dhabi already factored in geopolitical risks after Yemen's Houthi group launched drone and missile strikes in the emirate which set off explosions in fuel trucks and killed three people.

The United Arab Emirates called for a meeting of the UN Security Council to condemn the attack on Abu Dhabi, capital of the region's commercial and tourism hub, state news agency WAM reported on Tuesday. read more

Saudi Arabia's benchmark index (.TASI) gained 0.5%, with Al Rajhi Bank (1120.SE) rising 1.5%, while petrochemical maker Saudi Basic Industries Corp (SABIC) (2010.SE) advanced 1.8%.

SABIC plans to build a petrochemicals plant in the city of Jubail on the gulf coast in the Eastern Province, after a similar plant in South Korea starts production by year-end, CEO Yousef Abdullah al-Benyan told Asharq TV on Tuesday. read more

The kingdom issued 2.833 billion riyal ($755.20 million) domestic sukuk, or Islamic bonds, for the month of January, the kingdom's National Debt Management Center said on Tuesday.

Dubai's main share index (.DFMGI) eased 0.3%, hit by a 1.2% fall in its top lender Emirates NBD (ENBD.DU) and a 0.2% decrease in blue-chip developer Emaar Properties (EMAR.DU).

Dubai's stocks recorded some price corrections as investors moved to secure their gains, said Wael Makarem, senior market strategist at Exness.

The Qatari benchmark (.QSI) added 0.3%, led by a 1.5% gain in petrochemical firm Industries Qatar (IQCD.QA).

Outside the Gulf, Egypt's blue-chip index (.EGX30) dropped 1.4%, as most of the stocks on the index were in negative territory including Commercial International Bank (COMI.CA).

Oil highest since 2014 as Turkey outage adds to tight supply outlook | Reuters

Oil highest since 2014 as Turkey outage adds to tight supply outlook | Reuters

Oil prices rose for a fourth day on Wednesday after a fire on a pipeline from Iraq to Turkey briefly stopped flows, increasing concerns about an already tight short term supply outlook.

Brent crude futures rose 48 cents, or 0.6%, to $87.99 a barrel at 1245 GMT, adding to a 1.2% jump in the previous session. The benchmark contract touched $89.05, its highest since Oct. 13, 2014.

U.S. West Texas Intermediate (WTI) crude futures climbed 66 cents, or 0.8%, to $86.09 a barrel. WTI earlier jumped to $87.08, its highest since Oct. 9, 2014.

The explosion that set off the fire on the pipeline in the southeastern Turkish province of Kahramanmaras was caused by a falling power pylon, not an attack, a senior security source said. read more

Oil market headed for surplus as Omicron impact muted -IEA | Reuters

Oil market headed for surplus as Omicron impact muted -IEA | Reuters

Oil supply will soon overtake demand as some producers are set to pump at or above all-time highs, the International Energy Agency (IEA) said on Wednesday, while demand holds up despite the spread of the Omicron coronavirus variant.

"This time around, the surge is having a more muted impact on oil use," the Paris-based IEA said in its monthly oil report.

"While the steady rise in supply could see a significant surplus materialise in 1Q22 and going forward, available data suggest that 2022 is starting off with global oil inventories well below pre-pandemic levels," it said.

The United States, Canada and Brazil are set to pump at all-time highs for the year while Saudi Arabia and Russia could also break their output records.

#Turkey's Trendyol plans dual IPO when revenue abroad is 30-35% | Reuters

Turkey's Trendyol plans dual IPO when revenue abroad is 30-35% | Reuters

Turkish e-commerce firm Trendyol, backed by Chinese internet giant Alibaba (9988.HK), plans a dual-listing IPO in New York or London when its income from foreign sales reaches 30-35% of total revenue, the group's chief executive said.

Trendyol, one of Turkey's best known platforms, has drawn backing from foreign investors and holds a leading position in Turkey's fragmented e-commerce market.

"Before a public offering we want to see revenue abroad, which is around 5% of total revenue right now, rise to 30-35%," President of Trendyol Group Caglayan Cetin said in embargoed remarks late on Tuesday.

In a meeting with reporters, Cetin also said the company is planning its initial public offering (IPO) in 2024-2025 but that teams are making a serious effort to bring it forward to next year.

MIDEAST DEBT Underwhelming Aramco pipelines-linked bonds signal risk for longer tenor Gulf debt | Reuters

MIDEAST DEBT Underwhelming Aramco pipelines-linked bonds signal risk for longer tenor Gulf debt | Reuters

An underwhelming bond sale by investors in Aramco's oil pipelines points to new risks for longer tenor deals from the Gulf, especially unconventional structures, as investors become more selective amid ample supply and worries over a more hawkish Fed.

EIG Pearl Holdings, led by U.S.-based EIG Global Energy Partners, sold $2.5 billion in dual-tranche amortising bonds on Thursday - far short of the $3.5-4.4 billion it was seeking.

Such infrastructure-linked deals out of the Gulf typically target mainly U.S. and European investors, who were kept busy last week with sharp moves in several emerging markets' (EM) debt as well as rising Treasury yields and fears the Fed - already tapering its pandemic-linked bond-buying programme since November - could raise rates sooner than expected.

Orders peaked at around $5 billion and the spreads were unchanged from initial price thoughts - uncommon for Gulf deals, particularly ones associated with big names like Aramco.

#UAE, #SaudiArabia to lead GCC’s GDP growth in 2022 | Banking – Gulf News

UAE, Saudi Arabia to lead GCC’s GDP growth in 2022 | Banking – Gulf News

High oil prices, broad based business recovery, and rising foreign capital inflows are expected to see faster economic recovery in GCC led by the UAE and Saudi Arabia, according to economists.

“Elevated oil prices, higher oil production and robust momentum in non-oil activity, buoyed by rapid vaccination, will see GCC GDP growth print at 6.1 per cent in 2022 – fastest pace of cyclical expansion since 201,” said Ehsan Khoman, Head of Emerging Markets Research at MUFG.

Based on consistent improvement in economic conditions led by improving fiscal and external balances, many economists have revised their growth outlook of GCC in recent weeks.

The Institute of International Finance (IIF) has forecast GCC’s aggregate growth to pick up from 2.8 per cent in 2021 to 5.2 per cent in 2022 supported by higher hydrocarbon production and prices leading to combined current account surplus to surge from $131 billion in 2021 to $182 billion in 2022.

#UAE to fund renewable energy projects in Africa

UAE to fund renewable energy projects in Africa

The UAE is leading a programme to finance renewable energy projects in Africa to help countries on the continent meet their green energy needs and hasten their economic development.

The "Etihad 7" programme will secure funding for green initiatives on the continent as it seeks to provide clean power to 100 million people by 2035, the UAE Media Office said in a tweet on Tuesday.

"Our two regions are inextricably linked, with enormous potential for further co-operation in the years to come," Sheikh Shakhboot bin Nahyan, Minister of State in the Ministry of Foreign Affairs and International Co-operation, said in a statement on the ministry's website.

"One of the keys to unlocking that potential, supercharging Africa’s economies and allowing millions of people to contribute to building a prosperous continent is electricity, specifically, renewable energy."

Oil Pares Gain as Blasted Iraq-Turkey Pipe Set to Restart Flows - Bloomberg

Oil Pares Gain as Blasted Iraq-Turkey Pipe Set to Restart Flows - Bloomberg
PRICES
  • West Texas Intermediate for February delivery was 0.8% higher at $86.07 a barrel on the New York Mercantile Exchange at 7:43 a.m. in London after gaining as much as 1.9% earlier.
  • Brent for March settlement also pared gains, trading 0.5% higher at $87.92 a barrel on the ICE Futures Europe exchange.
  • The prompt timespread for Brent was 73 cents a barrel in backwardation, compared with 69 cents a week earlier.


Dwindling OPEC+ Spare Capacity Sets Oil Up for Sizzling Summer - Bloomberg

Dwindling OPEC+ Spare Capacity Sets Oil Up for Sizzling Summer - Bloomberg


As they strain to restore oil production, OPEC and its allies are being left with a diminishing buffer of spare supplies -- potentially setting up crude prices for a sizzling summer.

With depressed investment and internal unrest hobbling coalition members from Nigeria to Russia, the task of satisfying the vigorous recovery in world fuel consumption is down to just a few Middle Eastern producers. As they raise production, the buffer of untapped supplies held back to cover any emergency disruptions will grow ever-more precarious.

“The oil market appears to be heading for a period with little margin of safety,” said Martijn Rats, oil strategist at Morgan Stanley. “Prices will need to rise to levels where some demand erosion takes place.”

By the time the holiday driving season propels global fuel use above 100 million barrels a day in July, the world’s reserve capacity will be almost entirely held in Saudi Arabia, the United Arab Emirates and Iraq, and could amount to just 2.3 million a day -- the lowest since 2018.

World needs to invest $3 trln-plus in renewables in 10 years - #UAE minister | Reuters

World needs to invest $3 trln-plus in renewables in 10 years -UAE minister | Reuters

The world needs to invest at least $3 trillion in renewable energy in the next 10 years, state news agency WAM quoted United Arab Emirates (UAE) Industry Minister Sultan al-Jaber as saying on Tuesday in Dubai.

The minister, who is also the Abu Dhabi National Oil Company (ADNOC) chief executive, added that the UAE remains committed to providing reliable supplies of oil and gas with less carbon emissions.

The minister was attending a session at Abu Dhabi Sustainability Week Summit at the Expo 2020 site in Dubai.

Most major Gulf bourses track oil prices higher | Reuters

Most major Gulf bourses track oil prices higher | Reuters

Most major Gulf stock markets rose in early trade on Wednesday, amid strong oil prices, with the Saudi index holding steady at its highest since July 2006.

Crude prices, a key factor for the Gulf's financial markets, rose for a fourth day as an outage on a pipeline from Iraq to Turkey increased concerns about an already tight supply outlook amid worrisome geopolitical troubles in Russia and the United Arab Emirates.

Saudi Arabia's benchmark index (.TASI) added 0.1%, at its highest in over 15 years, with its largest lender Saudi National Bank (1180.SE) rising 0.4%.

Saudi Basic Industries Corporation (SABIC) (2010.SE) gained 0.4% after its plans to build a petrochemicals plant in the city of Jubail on the gulf coast in the Eastern Province. read more

Separately, South Korea's LG Corp (003550.KS) is planning to establish its regional headquarters in Saudi Arabia's capital Riyadh, Asharq television reported on Tuesday. read more

In Abu Dhabi, the index (.ADI) rose 0.3%, led by a 0.9% gain in First Abu Dhabi Bank (FAB.AD).

Dubai's main share index (.DFMGI) dropped 0.8%, hit by a 1.7% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 0.6% decline in sharia-compliant lender Dubai Islamic Bank (DISB.DU).

The UAE late on Tuesday called for a meeting of the United Nations Security Council to condemn an attack on Abu Dhabi on Monday by Yemen's Houthi movement, which has threatened further attacks. read more

By attacking the United Arab Emirates the Houthis sought to warn the Gulf state to stay out of a battle for prized energy regions in Yemen, where the Iran-aligned group has been angered by losses to forces backed by the powerful U.S. ally. read more

The Qatari index (.QSI) edged up 0.1%, with petrochemical maker Industries Qatar (IQCD.QA) rising 0.5%.

Column: Oil prices expected to rise with big variation in projections: Kemp | Reuters

Column: Oil prices expected to rise with big variation in projections: Kemp | Reuters

Oil prices will exceed pre-pandemic levels over the next few years but where they will settle remains extremely uncertain, my seventh annual survey of energy market professionals shows.

Brent crude is expected to average $80-85 a barrel through the middle of the decade, up from expectations of $70 before the COVID-19 pandemic took hold in 2020.

Expected prices are mostly $10-15 a barrel above where futures were trading at the time the survey was conducted between Jan. 11 and Jan. 14, against a pre-pandemic premium of $10 or less.

The most significant post-pandemic change, however, is the large increase in dispersion of views, with many more respondents forecasting prices far above or far below the average.

#Israel Startups See Record Funding, With Tiger, Insight Leading Way - Bloomberg

Israel Startups See Record Funding, With Tiger, Insight Leading Way - Bloomberg


The big money has arrived for what could be the next generation of Israel’s vaunted technology sector.

International investors helped set off a bonanza last year, when Israeli startups raised about $26 billion -- more than double the previous high in 2020 and nearly a quarter as much as the funding that poured into Europe as a whole.

Upending the pecking order in local venture capital, U.S. funds made 266 early-stage investments, an increase of almost a fifth from the previous year, according to data from Start-Up Nation Central, a non-profit organization that tracks the industry in Israel.

The exuberance comes with more risk. Tiger Global Management and Insight Partners, which have already bankrolled Israel’s largest privately-held firms, are increasingly betting on younger and less proven companies as a way to corner the market of upcoming winners and potentially reap greater returns. SoftBank Group Corp. and Blackstone Inc. are meanwhile opening local branches to better sniff out opportunities.

#Qatar’s Mannai Approves Sale of IT Services Provider Inetum - Bloomberg

Qatar’s Mannai Approves Sale of IT Services Provider Inetum - Bloomberg

Mannai Corp. said its board approved the sale of French information technology services provider Inetum SA, paving the way for a disposal that could fetch upward of $2 billion.

Mannai didn’t identify the potential buyer or how much it expects to receive from the sale. The deal is subject to entering definitive transaction documentation and approvals, the company said in a statement on Wednesday.

Shares in the company rose 1.6% at 9:30 a.m. in Doha, valuing Mannai at $683 million. The stock has gained about 84% over the past year, outpacing a 16% increase in the benchmark index.

The Qatari trading company has been working with advisers to help gauge interest in Inetum, Bloomberg reported last year. The company could fetch about $2.4 billion and attract private equity firms as well as other technology companies, the people said at the time.

Inetum offers systems integration, technology consulting, application engineering, outsourcing and software development services and is a top player in several European markets. The Paris-based company has nearly 27,000 employees in 26 countries and generated 1.97 billion euros of revenue last year, according to its website.

Mannai acquired 51% of the company, known at the time as GFI Informatique, in 2016. It later bought out remaining shareholders and delisted the company from the Paris bourse.

#Turkey, #UAE Sign FX Swap Deal Worth Around $5 Billion - Bloomberg

Turkey, UAE Sign FX Swap Deal Worth Around $5 Billion - Bloomberg

Turkey and the United Arab Emirates signed a three-year currency swap deal worth $4.9 billion, their central banks said on Wednesday.

The deal is aimed at strengthening bilateral trade and improving financial cooperation between the two countries, the Turkish central bank said in an emailed statement. The nominal size of the deal is 18 billion UAE dirhams ($4.9 billion) or 64 billion Turkish liras, it said.

Oil highest since 2014 as Turkey outage adds to tight supply outlook | Reuters

Oil highest since 2014 as Turkey outage adds to tight supply outlook | Reuters

Oil prices rose for a fourth day on Wednesday as an outage on a pipeline from Iraq to Turkey increased concerns about an already tight supply outlook amid worrisome geopolitical troubles in Russia and the United Arab Emirates.

Brent crude futures rose 87 cents, or 1%, to $88.38 a barrel at 0543 GMT, adding to a 1.2% jump in the previous session. The benchmark contract climbed to as much as $89.05, its highest since Oct. 13, 2014.

U.S. West Texas Intermediate (WTI) crude futures climbed $1.03, or 1.2%, to $86.46 a barrel, adding to a 1.9% gain on Tuesday. WTI earlier jumped to a high of $87.08, its highest since Oct. 9, 2014.

Turkey's state pipeline operator said it put out a blaze following an explosion that cut oil flow at the Kirkuk-Ceyhan pipeline, adding that it would be operational "as soon as possible". The cause of the explosion is not known.