Abu Dhabi index surges post MSCI rebalancing:
The Abu Dhabi index jumped the most in a year as markets adjusted post the MSCI rebalancing of FAB and Etisalat shares even as trading remained thin in other stocks.
The Abu Dhabi Securities closed 2.68 per cent higher at 4,898.15. FAB shares closed 3.68 per cent higher at Dh14.10. Etisalat shares closed 3.37 per cent higher at Dh17.18. The rest of the market remained tight with marginal gains. Abu Dhabi Commercial Bank closed 3.82 per cent higher at Dh8.15. Traded value was placed at Dh880 million. Dana Gas closed 0.54 per cent higher at Dh0.93.
The Dubai Financial Market general index closed 0.27 per cent higher at 2,675.87, Emaar Properties closed 1.78 per cent higher at Dh 4.58. Dubai Investments closed 4 per cent lower at Dh1.29. Dubai Islamic Bank closed half a per cent higher at Dh5.27.
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Tuesday 4 December 2018
Is there a need for a supply cap in Dubai’s real estate market?
Is there a need for a supply cap in Dubai’s real estate market?:
When the 2007 global financial downturn started in the US, there were talks about the “too-big-to-fail” banks that made the economy fragile. In the US context such failure was disastrous to the greater economy, and, therefore, the government stepped in to support and bail them out.
Now let’s look at the “too-big-to-fail” concept in the context of the Dubai real estate market. With the low barrier to the entry of players, many developers have been attracted to launch projects in Dubai. Capitalising on the off-plan model, they managed to grow in size in a short time. Launching projects on a monthly basis became a standard feature in Dubai, especially in the last few years. The trust in Dubai real estate laws and regulations as well as great off-plan deals boosted the supply of units in the market. But this means there is a systemic risk to the real estate system.
Apart from the abilities of developers, and their capabilities to take on these projects, there is the constant threat of oversupply. With more than 400 real estate developers in Dubai, the issue of oversupply is always there. Some of these developers have boasted a huge portfolio of off-plan projects and a failure to deliver would naturally impact the property market by hitting people’s confidence in off-plan. We were lucky to have the off-plan market revived and become attractive in the last few years given the affordability and flexibility in payments provided. We need to keep people’s trust in this model and thus there is a need to make sure that there are enough tools to make developers deliver on time and the quality promised.
When the 2007 global financial downturn started in the US, there were talks about the “too-big-to-fail” banks that made the economy fragile. In the US context such failure was disastrous to the greater economy, and, therefore, the government stepped in to support and bail them out.
Now let’s look at the “too-big-to-fail” concept in the context of the Dubai real estate market. With the low barrier to the entry of players, many developers have been attracted to launch projects in Dubai. Capitalising on the off-plan model, they managed to grow in size in a short time. Launching projects on a monthly basis became a standard feature in Dubai, especially in the last few years. The trust in Dubai real estate laws and regulations as well as great off-plan deals boosted the supply of units in the market. But this means there is a systemic risk to the real estate system.
Apart from the abilities of developers, and their capabilities to take on these projects, there is the constant threat of oversupply. With more than 400 real estate developers in Dubai, the issue of oversupply is always there. Some of these developers have boasted a huge portfolio of off-plan projects and a failure to deliver would naturally impact the property market by hitting people’s confidence in off-plan. We were lucky to have the off-plan market revived and become attractive in the last few years given the affordability and flexibility in payments provided. We need to keep people’s trust in this model and thus there is a need to make sure that there are enough tools to make developers deliver on time and the quality promised.
Banks’ financial profiles should stay stable in 2019: S&P Global - The Peninsula Qatar
Banks’ financial profiles should stay stable in 2019: S&P Global - The Peninsula Qatar:
GCC (Gulf Cooperation Council) banks’ financial profiles should remain stable in 2019, absent any unexpected geopolitical shock. However, the recent drop in oil prices does not bode well for these banking sectors, S&P Global said in its “Global Banks 2019 Outlook”, yesterday.
The Bank lending growth should stabilise at around 5 percent in 2019, as stronger public investments raise economic growth in the region overall.
“We expect profitability to stabilise--with a return on assets at about 1.6 percent and a net interest margin at 3 percent in 2018-- benefitting from the higher interest rates and significant non-interest-bearing deposits,” the global ratings agency said.
GCC (Gulf Cooperation Council) banks’ financial profiles should remain stable in 2019, absent any unexpected geopolitical shock. However, the recent drop in oil prices does not bode well for these banking sectors, S&P Global said in its “Global Banks 2019 Outlook”, yesterday.
The Bank lending growth should stabilise at around 5 percent in 2019, as stronger public investments raise economic growth in the region overall.
“We expect profitability to stabilise--with a return on assets at about 1.6 percent and a net interest margin at 3 percent in 2018-- benefitting from the higher interest rates and significant non-interest-bearing deposits,” the global ratings agency said.
QFC committed to Islamic finance development: CEO
QFC committed to Islamic finance development: CEO:
Chief executive officer of Qatar Financial Centre (QFC) Yousuf Mohamed al-Jaida affirmed that the centre recognises the importance of endowments and Islamic finance in general and is committed to supporting the development of these two sectors through the QFC platform.
He said in a speech at the opening session of the global conference on Awqaf that the prestigious position of Qatar qualifies it to become a leading country in the field of Islamic finance and the management of Waqf institutions, which correspond to the pillars of economic and social development in the Qatar National Vision 2030.
He pointed out that the Awqaf institutions have a historic part in the ancient Islamic heritage, in addition to the possibilities and capabilities made them envisage a future of greater success and prosperity, indicating that the need now is urgent for the existence of active and effective Waqf institutions.
Chief executive officer of Qatar Financial Centre (QFC) Yousuf Mohamed al-Jaida affirmed that the centre recognises the importance of endowments and Islamic finance in general and is committed to supporting the development of these two sectors through the QFC platform.
He said in a speech at the opening session of the global conference on Awqaf that the prestigious position of Qatar qualifies it to become a leading country in the field of Islamic finance and the management of Waqf institutions, which correspond to the pillars of economic and social development in the Qatar National Vision 2030.
He pointed out that the Awqaf institutions have a historic part in the ancient Islamic heritage, in addition to the possibilities and capabilities made them envisage a future of greater success and prosperity, indicating that the need now is urgent for the existence of active and effective Waqf institutions.
OPEC Oil Production Cuts Still Up in the Air: Reality Check - Bloomberg
OPEC Oil Production Cuts Still Up in the Air: Reality Check - Bloomberg:
Saudi Energy Minister Khalid Al-Falih said he saw an oversupplied oil market but that it’s “premature” to say what OPEC and its allies will agree in Vienna this week. The comments come just days after Russia and Saudi Arabia agreed to extend their cooperation to balance the oil market into 2019.
In an interview with Bloomberg, Al-Falih said Moscow backs output curbs “in principle,” but that all the members of the so-called OPEC+ group, which includes Russia and Kazakhstan, needed to come together for a cut to go ahead.
The OPEC advisory committee recommended a cut of 1.3 million barrels a day last week, but since then the group got an unexpected hand from Canada’s 325,000 barrels a day reduction.
Saudi Energy Minister Khalid Al-Falih said he saw an oversupplied oil market but that it’s “premature” to say what OPEC and its allies will agree in Vienna this week. The comments come just days after Russia and Saudi Arabia agreed to extend their cooperation to balance the oil market into 2019.
In an interview with Bloomberg, Al-Falih said Moscow backs output curbs “in principle,” but that all the members of the so-called OPEC+ group, which includes Russia and Kazakhstan, needed to come together for a cut to go ahead.
The OPEC advisory committee recommended a cut of 1.3 million barrels a day last week, but since then the group got an unexpected hand from Canada’s 325,000 barrels a day reduction.
#Qatar Petroleum cuts November land crude price to $66.95 | ZAWYA MENA Edition
Qatar Petroleum cuts November land crude price to $66.95 | ZAWYA MENA Edition:
Qatar Petroleum cut the price for November land crude oil to $66.95 a barrel from $81.25 in October, a 17.6 percent drop, according to Qatar News Agency (QNA).
It cut the price for November marine crude oil to $65.90 from $79.90 in October, a 17.5 percent drop, QNA said.
Qatar Petroleum cut the price for November land crude oil to $66.95 a barrel from $81.25 in October, a 17.6 percent drop, according to Qatar News Agency (QNA).
It cut the price for November marine crude oil to $65.90 from $79.90 in October, a 17.5 percent drop, QNA said.
UAE and India sign 35 billion rupees currency swap agreement | Reuters
UAE and India sign 35 billion rupees currency swap agreement | Reuters:
India and the United Arab Emirates on Tuesday signed a currency swap agreement to boost investment and enable direct trade without using dollars or other international currencies.
The swap is for 2 billion dirhams or 35 billion Indian rupees ($496 million), depending on which central bank requests the amount, an Indian embassy statement said.
“The bilateral currency swap agreement between India and the UAE is expected to reduce the dependency on hard currencies like the U.S dollar,” the statement said, adding that the two central banks had agreed the deal.
India and the United Arab Emirates on Tuesday signed a currency swap agreement to boost investment and enable direct trade without using dollars or other international currencies.
The swap is for 2 billion dirhams or 35 billion Indian rupees ($496 million), depending on which central bank requests the amount, an Indian embassy statement said.
“The bilateral currency swap agreement between India and the UAE is expected to reduce the dependency on hard currencies like the U.S dollar,” the statement said, adding that the two central banks had agreed the deal.
#Qatar's emir receives Saudi invite to attend GCC summit: Qatar News Agency
Qatar's emir receives Saudi invite to attend GCC summit: Qatar News Agency:
Qatar’s emir, Tamim bin Hamad Al Thani, has received an invitation from Saudi Arabia’s King Salman to attend a summit of the Gulf Cooperation Council on Dec. 9, Qatar News Agency said on Tuesday.
Qatar has not confirmed what level of representation it would be sending to the summit yet.
Qatar’s emir, Tamim bin Hamad Al Thani, has received an invitation from Saudi Arabia’s King Salman to attend a summit of the Gulf Cooperation Council on Dec. 9, Qatar News Agency said on Tuesday.
Qatar has not confirmed what level of representation it would be sending to the summit yet.
Saudi cites national security to block WTO case brought by #Qatar | Reuters
Saudi cites national security to block WTO case brought by Qatar | Reuters:
Saudi Arabia has told the WTO that national security concerns mean it cannot allow the world trade body to settle an intellectual property dispute with Qatar, according to a transcript seen by Reuters.
Qatar launched the dispute in October, saying Saudi Arabia was blocking Qatari-owned broadcaster beIN and refusing to take effective action against alleged piracy of beIN’s content by “beoutQ”, a sophisticated pirating operation.
It is unclear who owns beoutQ or where it is based. Saudi officials say Riyadh is committed to fighting piracy - in June they said the kingdom had confiscated 12,000 pirating devices.
Saudi Arabia has told the WTO that national security concerns mean it cannot allow the world trade body to settle an intellectual property dispute with Qatar, according to a transcript seen by Reuters.
Qatar launched the dispute in October, saying Saudi Arabia was blocking Qatari-owned broadcaster beIN and refusing to take effective action against alleged piracy of beIN’s content by “beoutQ”, a sophisticated pirating operation.
It is unclear who owns beoutQ or where it is based. Saudi officials say Riyadh is committed to fighting piracy - in June they said the kingdom had confiscated 12,000 pirating devices.
OPEC has problems with some oil producers, reasons for Qatar's exit must be examined: Iran oil minister | Reuters
OPEC has problems with some oil producers, reasons for Qatar's exit must be examined: Iran oil minister | Reuters:
OPEC has problems with some oil producers, and the reasons for Qatar’s exit from the organization must be examined, Iranian Oil Minister Bijan Zanganeh said on Tuesday, according to the Islamic Republic News Agency (IRNA).
Qatar said on Monday it will quit OPEC to focus on gas in a swipe at Saudi Arabia, the de facto leader of the oil exporting group which is trying to show unity in tackling an oil price slide.
“Examining the reasons for Qatar’s exit from OPEC is a necessity,” Zanganeh said. He added, “OPEC has big problems from some oil producers which Qatar is not a part of.”
OPEC has problems with some oil producers, and the reasons for Qatar’s exit from the organization must be examined, Iranian Oil Minister Bijan Zanganeh said on Tuesday, according to the Islamic Republic News Agency (IRNA).
Qatar said on Monday it will quit OPEC to focus on gas in a swipe at Saudi Arabia, the de facto leader of the oil exporting group which is trying to show unity in tackling an oil price slide.
“Examining the reasons for Qatar’s exit from OPEC is a necessity,” Zanganeh said. He added, “OPEC has big problems from some oil producers which Qatar is not a part of.”
Mideast Stocks: Egypt hits 18-month low, FAB lifts Abu Dhabi | ZAWYA MENA Edition
Mideast Stocks: Egypt hits 18-month low, FAB lifts Abu Dhabi | ZAWYA MENA Edition:
Egypt's blue-chip index slumped to an 18-month low on Tuesday, weighed down by Commercial International Bank (COMI) and concern over a proposed law on taxation of Treasury holdings, while Abu Dhabi rose on banking sector gains.
The Egyptian index dropped 2.4 percent, with 26 of 30 stocks falling. The country's biggest lender, COMI, fell for a third straight day, losing 2.5 percent.
COMI and the index have been dented by the proposed legal changes, which could result in a larger tax bill for banks on despite the nominal tax rate remaining unchanged, said Amr Hussein Elalfy, head of research at Shuaa Securities Egypt.
Egypt's blue-chip index slumped to an 18-month low on Tuesday, weighed down by Commercial International Bank (COMI) and concern over a proposed law on taxation of Treasury holdings, while Abu Dhabi rose on banking sector gains.
The Egyptian index dropped 2.4 percent, with 26 of 30 stocks falling. The country's biggest lender, COMI, fell for a third straight day, losing 2.5 percent.
COMI and the index have been dented by the proposed legal changes, which could result in a larger tax bill for banks on despite the nominal tax rate remaining unchanged, said Amr Hussein Elalfy, head of research at Shuaa Securities Egypt.
Opec: why Trump has Saudi Arabia over a barrel | Financial Times
Opec: why Trump has Saudi Arabia over a barrel | Financial Times:
Reneé Earls has lived her whole life in west Texas, and watched oil booms come and go, but she has never seen anything like the buzz of activity in the industry today. “We are a hopping spot,” she says. “If you’re not working here, that’s because you’re not looking for a job, or you are unemployable . . . If you have a skill and want to work, you can name your price.”
Ms Earls is chief executive of the chamber of commerce in Odessa, in the heart of the Permian basin, the shale formation stretching from west Texas into New Mexico that is the red-hot centre of the latest US oil boom. Production in the region rose by 1m barrels a day in the year to August, contributing to a record-breaking 2.1m b/d increase in US output that has made the country the world’s largest crude producer.
The shale boom has not only transformed once rundown towns deep in the west Texas desert; it is increasingly reshaping the landscape of international politics. The emergence of the US as a born-again energy superpower — one of the key factors in the recent fall in oil prices — has led politicians in Washington to weigh how it might reshape some of its oldest alliances, raising uncomfortable questions for the oil producers of the Middle East .
Reneé Earls has lived her whole life in west Texas, and watched oil booms come and go, but she has never seen anything like the buzz of activity in the industry today. “We are a hopping spot,” she says. “If you’re not working here, that’s because you’re not looking for a job, or you are unemployable . . . If you have a skill and want to work, you can name your price.”
Ms Earls is chief executive of the chamber of commerce in Odessa, in the heart of the Permian basin, the shale formation stretching from west Texas into New Mexico that is the red-hot centre of the latest US oil boom. Production in the region rose by 1m barrels a day in the year to August, contributing to a record-breaking 2.1m b/d increase in US output that has made the country the world’s largest crude producer.
The shale boom has not only transformed once rundown towns deep in the west Texas desert; it is increasingly reshaping the landscape of international politics. The emergence of the US as a born-again energy superpower — one of the key factors in the recent fall in oil prices — has led politicians in Washington to weigh how it might reshape some of its oldest alliances, raising uncomfortable questions for the oil producers of the Middle East .
$11 Trillion Emerging-Market Lure That Heralds 2019 Revival - Bloomberg
$11 Trillion Emerging-Market Lure That Heralds 2019 Revival - Bloomberg:
First, the bad news: corporate earnings across emerging markets aren’t as good as analysts hoped.
In four out of every five emerging economies, company finances have fallen short of estimates that were made 12 months ago, according to a study of 25 benchmarks. That’s even after analysts cut their forecasts by 6 percent since a peak in April.
Now the good news. Stocks across developing nations aren’t as risky as their U.S. counterparts, and they’re good value for money. And thanks to a sell-off this year, $11 trillion of equities are about the cheapest since the financial crisis.
First, the bad news: corporate earnings across emerging markets aren’t as good as analysts hoped.
In four out of every five emerging economies, company finances have fallen short of estimates that were made 12 months ago, according to a study of 25 benchmarks. That’s even after analysts cut their forecasts by 6 percent since a peak in April.
Now the good news. Stocks across developing nations aren’t as risky as their U.S. counterparts, and they’re good value for money. And thanks to a sell-off this year, $11 trillion of equities are about the cheapest since the financial crisis.
Saudi Minister Says Premature to Say If OPEC+ to Cut Output - Bloomberg
Saudi Minister Says Premature to Say If OPEC+ to Cut Output - Bloomberg:
Three days after Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman sent crude prices surging with an agreement to extend cooperation on oil, the kingdom’s top energy official made clear that the terms of a deal remain unresolved.
In an interview with Bloomberg, Saudi Energy Minister Khalid Al-Falih said he saw an oversupplied market, but cautioned that all the members of the OPEC+ group, which includes allies such as Russia and Kazakhstan, needed to come together for a cut to go ahead.
Moscow backs output curbs “in principle,” but it’s “premature” to say what they will agree in Vienna this week, Al-Falih said. He also walked back previous statements about the size of any supply reduction, saying the group is likely to cut but still needs to “figure out what needs to be done and by how much.”
Three days after Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman sent crude prices surging with an agreement to extend cooperation on oil, the kingdom’s top energy official made clear that the terms of a deal remain unresolved.
In an interview with Bloomberg, Saudi Energy Minister Khalid Al-Falih said he saw an oversupplied market, but cautioned that all the members of the OPEC+ group, which includes allies such as Russia and Kazakhstan, needed to come together for a cut to go ahead.
Moscow backs output curbs “in principle,” but it’s “premature” to say what they will agree in Vienna this week, Al-Falih said. He also walked back previous statements about the size of any supply reduction, saying the group is likely to cut but still needs to “figure out what needs to be done and by how much.”
Qatar's OPEC Exit Shows Growing Sway of Moscow-Riyadh Oil Axis - Bloomberg
Qatar's OPEC Exit Shows Growing Sway of Moscow-Riyadh Oil Axis - Bloomberg:
When Qatar shocked the oil world on Monday by announcing plans to quit the OPEC cartel after 57 years, its energy minister said the decision was made for "technical" reasons.
That story didn’t last long. A few hours later, a leading member of the country’s ruling family used Twitter to blast the Organization of Petroleum Exporting Countries, a group where Qatar was once a diplomatic force despite being a relative minnow in oil production terms, accounting for less than 2 percent of total output.
"The withdrawal of Qatar from OPEC is a wise decision, as this organization has become useless and does not bring us anything," said former prime minister Hamad bin Jassim bin Jaber Al Thani. "It is just being used for purposes that harm our national interest.”
When Qatar shocked the oil world on Monday by announcing plans to quit the OPEC cartel after 57 years, its energy minister said the decision was made for "technical" reasons.
That story didn’t last long. A few hours later, a leading member of the country’s ruling family used Twitter to blast the Organization of Petroleum Exporting Countries, a group where Qatar was once a diplomatic force despite being a relative minnow in oil production terms, accounting for less than 2 percent of total output.
"The withdrawal of Qatar from OPEC is a wise decision, as this organization has become useless and does not bring us anything," said former prime minister Hamad bin Jassim bin Jaber Al Thani. "It is just being used for purposes that harm our national interest.”
OPEC works on deal to cut output, still needs Russia on board | Reuters
OPEC works on deal to cut output, still needs Russia on board | Reuters:
OPEC and its allies are working towards a deal this week to reduce oil output by at least 1.3 million barrels per day, four sources said, adding that Russia’s resistance to a major cut was so far the main stumbling block.
OPEC meets on Thursday in Vienna, followed by talks with allies such as Russia on Friday, amid a drop in crude prices caused by global economic weakness and fears of an oil glut due largely to a rise in U.S. production.
The producer group’s de facto leader, Saudi Arabia, has indicated a need for steep reductions in output from January but has come under pressure from U.S. President Donald Trump to help support the world economy with lower oil prices.
OPEC and its allies are working towards a deal this week to reduce oil output by at least 1.3 million barrels per day, four sources said, adding that Russia’s resistance to a major cut was so far the main stumbling block.
OPEC meets on Thursday in Vienna, followed by talks with allies such as Russia on Friday, amid a drop in crude prices caused by global economic weakness and fears of an oil glut due largely to a rise in U.S. production.
The producer group’s de facto leader, Saudi Arabia, has indicated a need for steep reductions in output from January but has come under pressure from U.S. President Donald Trump to help support the world economy with lower oil prices.
Mideast Stocks: FAB boosts Abu Dhabi sharply, Gulf mostly gains | ZAWYA MENA Edition
Mideast Stocks: FAB boosts Abu Dhabi sharply, Gulf mostly gains | ZAWYA MENA Edition:
The Abu Dhabi stock market rose sharply on Tuesday on the back of banks, enjoying its biggest one-day gain in two years, while real estate stocks buoyed Dubai.
The United Arab Emirates markets did not trade for two days because of a national holiday. When they reopened, the Abu Dhabi index .ADI jumped 2.6 percent, with the emirate's largest lender, First Abu Dhabi Bank, adding 4.4 percent in low volume after sliding for three sessions.
Tuesday is the bank's first trading day after its weighting in MSCI's emerging markets index doubled, and some passive funds linked to the index may have entered the stock on Tuesday. Meanwhile, Abu Dhabi Commercial Bank added 2.3 percent.
The Abu Dhabi stock market rose sharply on Tuesday on the back of banks, enjoying its biggest one-day gain in two years, while real estate stocks buoyed Dubai.
The United Arab Emirates markets did not trade for two days because of a national holiday. When they reopened, the Abu Dhabi index .ADI jumped 2.6 percent, with the emirate's largest lender, First Abu Dhabi Bank, adding 4.4 percent in low volume after sliding for three sessions.
Tuesday is the bank's first trading day after its weighting in MSCI's emerging markets index doubled, and some passive funds linked to the index may have entered the stock on Tuesday. Meanwhile, Abu Dhabi Commercial Bank added 2.3 percent.
Dubai property prices sink 7.4 percent as UAE jobs growth slows | Reuters
Dubai property prices sink 7.4 percent as UAE jobs growth slows | Reuters:
Prices for Dubai’s residential real estate sank 7.4 percent in the third quarter of 2018 from a year earlier, with the drop accelerating from a 5.8 percent fall in the second quarter, the United Arab Emirates central bank said in a report on Tuesday.
Prices have been falling quarter-on-quarter almost continually since the start of 2017 because of a worsening supply/demand balance. The central bank quoted the REIDIN residential sales price index, which showed prices fell 2.5 percent from the previous quarter in July-September.
Residential real estate prices in neighboring Abu Dhabi, the other big emirate in the UAE, dropped 6.1 percent year-on-year in the third quarter after a 6.9 percent slide in the second quarter.
Prices for Dubai’s residential real estate sank 7.4 percent in the third quarter of 2018 from a year earlier, with the drop accelerating from a 5.8 percent fall in the second quarter, the United Arab Emirates central bank said in a report on Tuesday.
Prices have been falling quarter-on-quarter almost continually since the start of 2017 because of a worsening supply/demand balance. The central bank quoted the REIDIN residential sales price index, which showed prices fell 2.5 percent from the previous quarter in July-September.
Residential real estate prices in neighboring Abu Dhabi, the other big emirate in the UAE, dropped 6.1 percent year-on-year in the third quarter after a 6.9 percent slide in the second quarter.
Oil jumps 2 percent on expectations of production cuts | Reuters
Oil jumps 2 percent on expectations of production cuts | Reuters:
Oil prices rose more than 2 percent on Tuesday, extending gains ahead of expected output cuts by producer cartel OPEC and a mandated reduction in Canadian supply.
Brent crude oil LCOc1 rose $1.55 or 2.5 percent to a high of $63.24 by 0955 GMT. U.S. light crude CLc1 was $1.25 higher at $54.20.
Both benchmarks climbed around 4 percent on Monday after U.S. President Donald Trump and Chinese President Xi Jinping agreed at a meeting of the Group of 20 industrialized nations (G20) to pause an escalating trade dispute.
Oil prices rose more than 2 percent on Tuesday, extending gains ahead of expected output cuts by producer cartel OPEC and a mandated reduction in Canadian supply.
Brent crude oil LCOc1 rose $1.55 or 2.5 percent to a high of $63.24 by 0955 GMT. U.S. light crude CLc1 was $1.25 higher at $54.20.
Both benchmarks climbed around 4 percent on Monday after U.S. President Donald Trump and Chinese President Xi Jinping agreed at a meeting of the Group of 20 industrialized nations (G20) to pause an escalating trade dispute.