Friday, 18 June 2021

Oil gains on OPEC outlook that U.S. output growth will slow | Reuters

Oil gains on OPEC outlook that U.S. output growth will slow | Reuters

Oil futures rose on Friday, reversing early losses and set for a fourth week of gains after OPEC sources said the producer group expected limited U.S. oil output growth this year despite rising prices.

Officials at the Organization of the Petroleum Exporting Countries got the U.S. production outlook from industry experts, OPEC sources said. This would give the producer group more power to manage the market before a potential surge in shale output in 2022.

Brent crude futures rose 43 cents, or 0.6% to settle at $73.51 a barrel. U.S. West Texas Intermediate (WTI) crude rose 60 cents, or 0.8% to $71.64 a barrel.

Both benchmarks were headed for a weekly gain of about 1.1%.

"Oil markets are rallying because OPEC is skeptical that the increase in U.S. oil production is going to be enough to change their plans to support prices," said Phil Flynn, senior analyst at Price Futures Group in Chicago.

#SaudiArabia to auction mining licenses in 2022 | ZAWYA MENA Edition

Saudi Arabia to auction mining licenses in 2022 | ZAWYA MENA Edition

Saudi Arabia plans to auction two major mining licenses in 2022 for commodities including gold, copper and zinc, as the Kingdom aims to triple the mining sector’s contribution to the national gross domestic product (GDP) to SR240 billion ($64 billion) and double the number of jobs to 470,000 by 2030.

The auction was announced by Vice Minister for Saudi Mining Affairs Khalid Al-Mudaifer during an interview with S&P Global on the sidelines of the Gulf Petrochemicals and Chemicals Association (GPCA) Leaders Forum in Dubai this week.

Looking ahead, Al-Mudaifer said: “We expect to see an increase in international investment in mining, particularly because demand for minerals around the world is growing fast. According to geological surveys dating back 80 years, the Kingdom has an estimated reserve of untapped mining potential valued at $1.3 trillion.” Saudi Arabia’s mining industry has already attracted some major foreign investors. American industrial corporation Alcoa has a 25.1 percent stake in two companies, Ma’aden Bauxite and Alumina and Ma’aden Aluminum, as part of $10.8 billion joint venture with the Saudi Arabian Mining Company (Ma’aden) located in Ras al-Khair Industrial City in the Eastern Province.

The Mosaic Company, a fertilizer producer, has a 25 percent stake in the $8 billion Ma’aden Wa’ad Al-Shamal Fertilizer Production Complex located in Wa’ad Al Shamal Minerals Industrial City in the north of Saudi Arabia. Furthermore, Barrick Gold has a 50 percent stake with Ma’aden in the Jabal Sayid underground Copper Mine and Plant.

Al-Mudaifer said that a new mining law, which came into force on Jan. 1, 2021, will help attract more foreign investors because it treats them equally with local investors.

Oil drops amid dollar strength; demand picture still bullish | Reuters

Oil drops amid dollar strength; demand picture still bullish | Reuters

Oil prices fell for a second straight session on Friday as the U.S. dollar soared on the prospect of interest rate hikes in the United States, but they were on track to finish the week little changed and only slightly off multi-year highs.

Brent crude futures were down 45 cents, or 0.6%, at $72.63 a barrel as of 0700 GMT, extending a 1.8% decline on Thursday. The contract is on track to be flat for the week.

U.S. West Texas Intermediate (WTI) crude futures were down 33 cents, or 0.5%, at $70.71 a barrel, after retreating 1.5% on Thursday. WTI is heading for a slight decline, which would be the first drop in four weeks.

On Wednesday, Brent settled at its highest price since April 2019 while WTI settled at its highest since October 2018.

The dollar has rocketed in the two sessions since the U.S. Federal Reserve projected possible rate hikes in 2023, earlier than market watchers previously expected. A rising dollar makes oil more expensive in other currencies, curbing demand.

#Qatar Sees $20 Billion Bump to Economy From Soccer World Cup - Bloomberg

Qatar Sees $20 Billion Bump to Economy From Soccer World Cup - Bloomberg

Tokyo’s 2020 Olympics may be a financial flop, but Qatar, host to one of the next big global sporting events since the start of the pandemic, expects its tournament late next year to provide an economic boost.

“We anticipate the contribution to the economy essentially would be around about $20 billion,” said Hassan Al Thawadi, Secretary-General of the Committee for Delivery and Legacy that’s building the infrastructure behind the 2022 World Cup. The sum is equivalent to about 11% of the country’s gross domestic product in 2019.

The analysis is the result of “a very high-level study,” he said, adding that more detailed projections won’t be known until after the event takes place in November and December of 2022. However, the construction and tourism industries are expected to be top beneficiaries, Al Thawadi said in an interview that will air in full during next week’s Qatar Economic Forum.

Qatar is trying to use the tournament to showcase its rapid expansion from a small pearl-diving enclave to Gulf metropolis and transit hub. Stadium construction accounts for a small fraction of the infrastructure spending that it’s undertaking ahead of the event; other projects include a metro system, an airport expansion, and the construction of a new city. Bloomberg Intelligence pegs the total value of all these building plans at $300 billion.

The Qatar Ministry of Commerce and Industry, Investment Promotion Agency Qatar and Media City Qatar are underwriters of the Qatar Economic Forum, Powered by Bloomberg.