Mideast Shipping Risks Seen Elevated Amid U.S.-Iran Tensions - Bloomberg:
The risk to shipping in one of the world’s key oil-producing regions is set to rise following a U.S. airstrike in Iraq that killed a top Iranian commander, just months after spiking to record levels on heightened geopolitical risk.
Iran vowed “severe retaliation” for the attack that killed General Qassem Soleimani, who led the Revolutionary Guards’ Quds Force. The episode ratchets up already-high tensions in a region that exports much of the world’s oil. Brent crude prices jumped as much as 4.9% in intraday trading.
“Whenever there’s tension in the region, the risk premium increases,” said Olivier Jakob, managing director at Petromatrix GmbH.
In October, daily earnings for supertankers on the benchmark route to China from the Middle East soared to more than $300,000 a day, after Iran said missiles hit one of its vessels in the Red Sea. That followed attacks on Saudi Arabia’s oil infrastructure a month earlier. U.S. reimposed sanctions on Iran in late 2018, and separate American sanctions on some vessels from China also contributed to an increase in shipping rates last year.
Friday, 3 January 2020
#UAE calls for wisdom to avert confrontation, after Iranian commander killed - Reuters
UAE calls for wisdom to avert confrontation, after Iranian commander killed - Reuters:
United Arab Emirates Minister of State for Foreign Affairs Anwar Gargash said on Friday that wisdom and political solutions must prevail over confrontation and escalation, in comments published on Twitter after a U.S. air strike killed a top Iranian general.
General Qassem Soleimani, commander of Iran’s elite Quds Force and architect of Iran’s spreading military influence in the Middle East, was killed in Baghdad on Friday.
United Arab Emirates Minister of State for Foreign Affairs Anwar Gargash said on Friday that wisdom and political solutions must prevail over confrontation and escalation, in comments published on Twitter after a U.S. air strike killed a top Iranian general.
General Qassem Soleimani, commander of Iran’s elite Quds Force and architect of Iran’s spreading military influence in the Middle East, was killed in Baghdad on Friday.
PRECIOUS-Gold jumps to 4-month peak as Middle East tensions spark safety buying - Reuters
PRECIOUS-Gold jumps to 4-month peak as Middle East tensions spark safety buying - Reuters:
Gold prices surged on Friday to a
four-month peak, racing past the key $1,550 an ounce level after
a U.S. air strike in Iraq killed the commander of Iran's elite
Quds Force, prompting a rush into safety assets.
Spot gold rose 1.3% to $1,548.94 per ounce as of 1:31
p.m. EST (1831 GMT), having risen to $1,553.20 earlier in the
session, its highest since Sept. 5.
U.S. gold futures settled 1.5% higher at $1,552.40.
The overnight attack was a dramatic escalation in a "shadow
war" in the Middle East between Iran and the United States and
its allies, principally Israel and Saudi Arabia. Iran threatened
to retaliate after the air strike.
Gold prices surged on Friday to a
four-month peak, racing past the key $1,550 an ounce level after
a U.S. air strike in Iraq killed the commander of Iran's elite
Quds Force, prompting a rush into safety assets.
Spot gold rose 1.3% to $1,548.94 per ounce as of 1:31
p.m. EST (1831 GMT), having risen to $1,553.20 earlier in the
session, its highest since Sept. 5.
U.S. gold futures settled 1.5% higher at $1,552.40.
The overnight attack was a dramatic escalation in a "shadow
war" in the Middle East between Iran and the United States and
its allies, principally Israel and Saudi Arabia. Iran threatened
to retaliate after the air strike.
Oil prices jump after U.S. air strike kills top Iranian commander - Reuters
Oil prices jump after U.S. air strike kills top Iranian commander - Reuters:
Oil prices jumped to the highest level in more than three months on Friday after the United States killed a top Iranian military commander in Iraq, sparking fears that escalating conflict in the region could disrupt global oil supplies.
An air strike at Baghdad airport killed Major-General Qassem Soleimani, architect of Iran’s spreading military influence in the Middle East, prompting Iran’s supreme leader, Ayatollah Ali Khamenei, to vow revenge.
Brent crude ended the session up 3.6% or $2.35 at $68.60 a barrel, off the session peak of $69.50, the highest level since the mid-September attack on Saudi oil facilities.
West Texas Intermediate (WTI) crude settled up $1.87 or 3.1% at $63.05 a barrel. The session high was $64.09 a barrel, its highest since April 2019.
U.S. President Donald Trump on Friday said that Soleimani was planning to kill Americans.
Oil prices jumped to the highest level in more than three months on Friday after the United States killed a top Iranian military commander in Iraq, sparking fears that escalating conflict in the region could disrupt global oil supplies.
An air strike at Baghdad airport killed Major-General Qassem Soleimani, architect of Iran’s spreading military influence in the Middle East, prompting Iran’s supreme leader, Ayatollah Ali Khamenei, to vow revenge.
Brent crude ended the session up 3.6% or $2.35 at $68.60 a barrel, off the session peak of $69.50, the highest level since the mid-September attack on Saudi oil facilities.
West Texas Intermediate (WTI) crude settled up $1.87 or 3.1% at $63.05 a barrel. The session high was $64.09 a barrel, its highest since April 2019.
U.S. President Donald Trump on Friday said that Soleimani was planning to kill Americans.
Brent jumps $3 after U.S. kills Iran's Soleimani - Reuters
Brent jumps $3 after U.S. kills Iran's Soleimani - Reuters:
Oil prices jumped more than $3 on Friday after a U.S. air strike in Baghdad ordered by President Donald Trump killed the head of Iran’s elite Quds Force, sparking concerns for an escalation of regional tensions and disruption to crude supplies.
Brent crude LCOc1 rose as high as $69.50 a barrel, its highest since mid-September when Saudi oil facilities were attacked, and was up 4.2% or $2.83 a barrel at $69.08 by 1058 GMT.
West Texas Intermediate (WTI) crude CLc1 was up $2.53 or 4.1% at $63.71 a barrel, having earlier spiked to $64.09 a barrel, its highest since April 2019.
An air strike at the Baghdad Airport early on Friday killed Major-General Qassem Soleimani, the architect of Iran’s spreading military influence in the Middle East and a hero among many Iranians and Shi’ites in the region.
Oil prices jumped more than $3 on Friday after a U.S. air strike in Baghdad ordered by President Donald Trump killed the head of Iran’s elite Quds Force, sparking concerns for an escalation of regional tensions and disruption to crude supplies.
Brent crude LCOc1 rose as high as $69.50 a barrel, its highest since mid-September when Saudi oil facilities were attacked, and was up 4.2% or $2.83 a barrel at $69.08 by 1058 GMT.
West Texas Intermediate (WTI) crude CLc1 was up $2.53 or 4.1% at $63.71 a barrel, having earlier spiked to $64.09 a barrel, its highest since April 2019.
An air strike at the Baghdad Airport early on Friday killed Major-General Qassem Soleimani, the architect of Iran’s spreading military influence in the Middle East and a hero among many Iranians and Shi’ites in the region.
Middle East strife’s market toll is just beginning – Breakingviews
Middle East strife’s market toll is just beginning – Breakingviews:
Market ructions triggered by flaring Middle East tensions have a lot further to run. Oil prices rose more than 3% and stock markets around the world fell after a U.S. air strike killed Iran’s top military leader, Qassem Soleimani. The scale of these price moves understates the dangers of such a destabilising act.
The rise in oil prices is less than a third of the instant bump up in crude values after September attacks on Saudi Aramco installations, which temporarily knocked out half of Saudi’s oil supply. Back then, investors expected U.S. President Donald Trump to retaliate on Saudi Arabia’s behalf. When he didn’t, oil prices subsided. But long-running tensions between the United States and Iran are now far more likely to ratchet up.
Soleimani was head of the Quds, the elite force of Iran’s Revolutionary Guards, who fought and inspired proxy wars in Yemen, Syria, and Iraq. He was also an iconic symbol of Iranian resistance, and close to Supreme Leader Ayatollah Ali Khamenei. Tehran will feel it has to respond to his death.
Retaliation could take the form of strikes on U.S. allies such as Saudi Arabia and the United Arab Emirates, American bases in Qatar and Bahrain, or ships in the Gulf. But it is most likely to focus on Iraq, where Iran-backed militias have recently been targeted by U.S. air strikes, and 5,000 American troops are stationed. A logical initial response would be to target U.S. oil installations like those held by Exxon Mobil. U.S. oil workers are already leaving, the Iraqi oil ministry said.
Market ructions triggered by flaring Middle East tensions have a lot further to run. Oil prices rose more than 3% and stock markets around the world fell after a U.S. air strike killed Iran’s top military leader, Qassem Soleimani. The scale of these price moves understates the dangers of such a destabilising act.
The rise in oil prices is less than a third of the instant bump up in crude values after September attacks on Saudi Aramco installations, which temporarily knocked out half of Saudi’s oil supply. Back then, investors expected U.S. President Donald Trump to retaliate on Saudi Arabia’s behalf. When he didn’t, oil prices subsided. But long-running tensions between the United States and Iran are now far more likely to ratchet up.
Soleimani was head of the Quds, the elite force of Iran’s Revolutionary Guards, who fought and inspired proxy wars in Yemen, Syria, and Iraq. He was also an iconic symbol of Iranian resistance, and close to Supreme Leader Ayatollah Ali Khamenei. Tehran will feel it has to respond to his death.
Retaliation could take the form of strikes on U.S. allies such as Saudi Arabia and the United Arab Emirates, American bases in Qatar and Bahrain, or ships in the Gulf. But it is most likely to focus on Iraq, where Iran-backed militias have recently been targeted by U.S. air strikes, and 5,000 American troops are stationed. A logical initial response would be to target U.S. oil installations like those held by Exxon Mobil. U.S. oil workers are already leaving, the Iraqi oil ministry said.
How Turkey Is Spoiling Its Neighbors’ Big Gas Plans: QuickTake - Bloomberg
How Turkey Is Spoiling Its Neighbors’ Big Gas Plans: QuickTake - Bloomberg:
The discovery over the last decade of sizable natural gas fields lying beneath the eastern Mediterranean has driven a vision of the region’s often-divided nations cooperating to exploit the reserves. They would enrich themselves, while their exports would help Europe reduce its dependence on Russian gas. One catch: Turkey wasn’t part of the picture, and with an active navy in the region, it’s playing the part of spoiler. Its recent maritime pact with Libya has added another snarl.
1. How much gas does the eastern Mediterranean hold?
The biggest find in the region is Egypt’s Zohr field, which holds as much as 30 trillion cubic feet of gas, or enough fuel to supply all of Europe for more than a year and a half. Zohr ranks as the world’s 20th-largest gas field, although it’s a fraction the size of the whoppers on the list, which is dominated by Russia. The Tamar and Leviathan fields off Israel’s coast hold 11 and 22 trillion cubic feet respectively, and the Aphrodite field off Cyprus is thought to hold 8 trillion cubic feet. The U.S. Geological Survey estimated in 2010 that recoverable gas in the Levant and Nile Delta basins were many multiples of that.
The discovery over the last decade of sizable natural gas fields lying beneath the eastern Mediterranean has driven a vision of the region’s often-divided nations cooperating to exploit the reserves. They would enrich themselves, while their exports would help Europe reduce its dependence on Russian gas. One catch: Turkey wasn’t part of the picture, and with an active navy in the region, it’s playing the part of spoiler. Its recent maritime pact with Libya has added another snarl.
1. How much gas does the eastern Mediterranean hold?
The biggest find in the region is Egypt’s Zohr field, which holds as much as 30 trillion cubic feet of gas, or enough fuel to supply all of Europe for more than a year and a half. Zohr ranks as the world’s 20th-largest gas field, although it’s a fraction the size of the whoppers on the list, which is dominated by Russia. The Tamar and Leviathan fields off Israel’s coast hold 11 and 22 trillion cubic feet respectively, and the Aphrodite field off Cyprus is thought to hold 8 trillion cubic feet. The U.S. Geological Survey estimated in 2010 that recoverable gas in the Levant and Nile Delta basins were many multiples of that.
Uber completes $3.1bn deal for #Dubai's Careem - Arabianbusiness
Uber completes $3.1bn deal for Dubai's Careem - Arabianbusiness:
Uber on Friday confirmed the official close of its acquisition of Dubai-based car hailing app Careem for $3.1 billion.
Careem Networks has now become a wholly-owned subsidiary of Uber, preserving its brand, a statement said, adding that Careem co-founder and CEO Mudassir Sheikha will continue to lead the Careem business.
Sheikha will report to a board made up of three representatives from Uber and two representatives from Careem, the statement said.
It added that Careem and Uber will operate their respective regional services and independent brands.
Uber on Friday confirmed the official close of its acquisition of Dubai-based car hailing app Careem for $3.1 billion.
Careem Networks has now become a wholly-owned subsidiary of Uber, preserving its brand, a statement said, adding that Careem co-founder and CEO Mudassir Sheikha will continue to lead the Careem business.
Sheikha will report to a board made up of three representatives from Uber and two representatives from Careem, the statement said.
It added that Careem and Uber will operate their respective regional services and independent brands.
Brent jumps almost $3 after U.S. air strike on Baghdad airport - Reuters
Brent jumps almost $3 after U.S. air strike on Baghdad airport - Reuters:
Brent crude futures jumped nearly $3 on Friday after a U.S. air strike in Baghdad killed top Iranian and Iraqi military commanders, sparking concerns of disruption to Middle East oil supplies.
Brent crude futures LCOc1 hit an intraday high of $69.16 a barrel, their highest since Sept. 17, before easing to $68.42, up $2.17 or 3.28% by 0806 GMT.
West Texas Intermediate (WTI) crude futures CLc1 were up $1.85 or 3.04% at $63.03 a barrel, having earlier spiked to $63.84 a barrel, their highest since May 1.
“The supply side risks remain elevated in the Middle East and we could see tensions continue to elevate between the U.S. and Iran-backed militia in Iraq,” said Edward Moya, analyst at brokerage OANDA, in an e-mail to Reuters.
Brent crude futures jumped nearly $3 on Friday after a U.S. air strike in Baghdad killed top Iranian and Iraqi military commanders, sparking concerns of disruption to Middle East oil supplies.
Brent crude futures LCOc1 hit an intraday high of $69.16 a barrel, their highest since Sept. 17, before easing to $68.42, up $2.17 or 3.28% by 0806 GMT.
West Texas Intermediate (WTI) crude futures CLc1 were up $1.85 or 3.04% at $63.03 a barrel, having earlier spiked to $63.84 a barrel, their highest since May 1.
“The supply side risks remain elevated in the Middle East and we could see tensions continue to elevate between the U.S. and Iran-backed militia in Iraq,” said Edward Moya, analyst at brokerage OANDA, in an e-mail to Reuters.