Oil falls 1% as investors reassess Middle East risks - Reuters:
Oil prices fell almost 1% on Tuesday, surrendering some recent gains as investors reconsidered the likelihood of immediate supply disruptions in the Middle East after the United States killed a top Iranian military commander last week.
Brent crude LCOc1 fell 64 cents, or 0.93%, to settle at $68.27 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 fell 57 cents, or 0.9%, to settle at $62.70 a barrel.
Prices surged during the previous two sessions on fears of escalating conflict and potential Middle East supply disruptions after a Jan. 3 Baghdad drone strike killed Qassem Soleimani, head of Iran’s elite Quds Force, and Iran vowed revenge. Brent reached its highest since September while WTI rose to its strongest since April.
Tuesday, 7 January 2020
Former Barclays banker admits #Qatar deal was ‘close to the line’ | Financial Times
Former Barclays banker admits Qatar deal was ‘close to the line’ | Financial Times:
The former “gatekeeper” of Barclays’ relationship with Qatar has admitted that the deal at the heart of a high-profile criminal trial was “close to the line”.
Roger Jenkins, who is on trial with two other former Barclays colleagues for fraud, told a London court on Tuesday that he was “pleasantly surprised” that the bank’s chief executive at the time, John Varley, and its board signed off a £322m side deal with Qatar at the height of the financial crisis, given the reputational risks of a “handshake” agreement that would not yield month-by-month itemised services.
Mr Jenkins, who was recommended for a £25m bonus for arranging emergency investment by Qatar into the bank in June and October 2008, is now in the dock, along with his former colleagues, Tom Kalaris, who headed the bank’s wealth team, and Richard Boath, the former co-head of financial institutions at Barclays’ investment bank. They deny fraud charges, which carry a maximum 10-year sentence.
The former “gatekeeper” of Barclays’ relationship with Qatar has admitted that the deal at the heart of a high-profile criminal trial was “close to the line”.
Roger Jenkins, who is on trial with two other former Barclays colleagues for fraud, told a London court on Tuesday that he was “pleasantly surprised” that the bank’s chief executive at the time, John Varley, and its board signed off a £322m side deal with Qatar at the height of the financial crisis, given the reputational risks of a “handshake” agreement that would not yield month-by-month itemised services.
Mr Jenkins, who was recommended for a £25m bonus for arranging emergency investment by Qatar into the bank in June and October 2008, is now in the dock, along with his former colleagues, Tom Kalaris, who headed the bank’s wealth team, and Richard Boath, the former co-head of financial institutions at Barclays’ investment bank. They deny fraud charges, which carry a maximum 10-year sentence.
Travelex being held to ransom by hackers - BBC News
Travelex being held to ransom by hackers - BBC News:
Hackers are holding foreign exchange company Travelex to ransom after a cyber-attack forced the firm to turn off all computer systems and resort to using pen and paper.
On New Year's Eve, hackers launched their attack on the Travelex network.
As a result, the company took down its websites across 30 countries to contain "the virus and protect data".
A ransomware gang called Sodinokibi has told the BBC it is behind the hack and wants Travelex to pay $6m (£4.6m).
The gang, also known as REvil, claims to have gained access to the company's computer network six months ago and to have downloaded 5GB of sensitive customer data.
Dates of birth, credit card information and social security numbers are all in their possession, they say.
Hackers are holding foreign exchange company Travelex to ransom after a cyber-attack forced the firm to turn off all computer systems and resort to using pen and paper.
On New Year's Eve, hackers launched their attack on the Travelex network.
As a result, the company took down its websites across 30 countries to contain "the virus and protect data".
A ransomware gang called Sodinokibi has told the BBC it is behind the hack and wants Travelex to pay $6m (£4.6m).
The gang, also known as REvil, claims to have gained access to the company's computer network six months ago and to have downloaded 5GB of sensitive customer data.
Dates of birth, credit card information and social security numbers are all in their possession, they say.
#Iran will decide if oil bulls outdo gold bugs – Breakingviews
Iran will decide if oil bulls outdo gold bugs – Breakingviews:
All that glitters is not gold. The price of oil shot up even more than that of the yellow metal after a U.S. drone strike on Friday killed Iranian military commander Qassem Soleimani. Tehran’s response will dictate which of the two commodities ends up on top.
Concern that an escalation in Middle East tensions might disrupt oil supply boosted the price of a barrel of crude by nearly 7% from Thursday’s close, to a high of $70.74 on Monday. Safe havens like high-grade government bonds, the Swiss franc, and gold also rose. The price of an ounce of the precious metal on Monday hit $1,582.59, its highest in nearly seven years and up almost 4% from where it had closed on the eve of the drone strike.
A Goldman Sachs model suggests the jump in energy prices can be interpreted as traders pre-emptively pricing in an outage of 800,000 barrels per day (bpd) for three months, or factoring in a 30% chance of a 2.7 million bpd outage for three months. But the Organization of the Petroleum Exporting Countries has some spare capacity. The group only last month agreed to cut an extra 500,000 bpd, and Saudi Energy Minister Prince Abdulaziz bin Salman said at the time that the effective reduction could be as much as 2.1 million bpd, given Saudi would carry on cutting more than its quota. Bringing that supply back on stream would be easier than increasing the supply of gold, which was in high demand even before geopolitical risks flared.
All that glitters is not gold. The price of oil shot up even more than that of the yellow metal after a U.S. drone strike on Friday killed Iranian military commander Qassem Soleimani. Tehran’s response will dictate which of the two commodities ends up on top.
Concern that an escalation in Middle East tensions might disrupt oil supply boosted the price of a barrel of crude by nearly 7% from Thursday’s close, to a high of $70.74 on Monday. Safe havens like high-grade government bonds, the Swiss franc, and gold also rose. The price of an ounce of the precious metal on Monday hit $1,582.59, its highest in nearly seven years and up almost 4% from where it had closed on the eve of the drone strike.
A Goldman Sachs model suggests the jump in energy prices can be interpreted as traders pre-emptively pricing in an outage of 800,000 barrels per day (bpd) for three months, or factoring in a 30% chance of a 2.7 million bpd outage for three months. But the Organization of the Petroleum Exporting Countries has some spare capacity. The group only last month agreed to cut an extra 500,000 bpd, and Saudi Energy Minister Prince Abdulaziz bin Salman said at the time that the effective reduction could be as much as 2.1 million bpd, given Saudi would carry on cutting more than its quota. Bringing that supply back on stream would be easier than increasing the supply of gold, which was in high demand even before geopolitical risks flared.
#Bahrain's sovereign wealth fund Mumtalakat hires banks for dollar sukuk - Reuters
Bahrain's sovereign wealth fund Mumtalakat hires banks for dollar sukuk - Reuters:
Bahrain’s sovereign wealth fund Mumtalakat has hired banks to arrange fixed income investor meetings ahead of a potential issue of U.S. dollar-denominated sukuk, or Islamic bonds, a document by one of the banks leading the deal showed.
The fund has picked Citi (C.N), Gulf International Bank, HSBC (HSBA.L), National Bank of Bahrain NATB.BH and Standard Chartered (STAN.L) for meetings in London, Asia and the Middle East, starting on Thursday.
A seven-year issuance might follow, subject to market conditions, the document said.
The deal could be the first international debt sale by a Gulf borrower this year.
Bahrain’s sovereign wealth fund Mumtalakat has hired banks to arrange fixed income investor meetings ahead of a potential issue of U.S. dollar-denominated sukuk, or Islamic bonds, a document by one of the banks leading the deal showed.
The fund has picked Citi (C.N), Gulf International Bank, HSBC (HSBA.L), National Bank of Bahrain NATB.BH and Standard Chartered (STAN.L) for meetings in London, Asia and the Middle East, starting on Thursday.
A seven-year issuance might follow, subject to market conditions, the document said.
The deal could be the first international debt sale by a Gulf borrower this year.
Oil slips as investors reassess Mideast risks - Reuters
Oil slips as investors reassess Mideast risks - Reuters:
Oil prices on Tuesday surrendered some of the gains of recent days as investors reconsidered the likelihood of immediate supply disruptions in the Middle East after the United States killed a top Iranian military commander.
Brent crude LCOc1 was down 63 cents, or 0.9%, at $68.28 a barrel by 1452 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 was down 55 cents, or 0.9%, at $62.72.
Prices surged during the previous two sessions, with Brent reaching its highest since September while WTI rose to its strongest since April.
The gains were on fears of escalating conflict and potential Middle East supply disruptions after the Jan. 3 Baghdad drone strike that killed Qassem Soleimani, head of Iran’s elite Quds Force. Iran has vowed strong revenge.
Oil prices on Tuesday surrendered some of the gains of recent days as investors reconsidered the likelihood of immediate supply disruptions in the Middle East after the United States killed a top Iranian military commander.
Brent crude LCOc1 was down 63 cents, or 0.9%, at $68.28 a barrel by 1452 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 was down 55 cents, or 0.9%, at $62.72.
Prices surged during the previous two sessions, with Brent reaching its highest since September while WTI rose to its strongest since April.
The gains were on fears of escalating conflict and potential Middle East supply disruptions after the Jan. 3 Baghdad drone strike that killed Qassem Soleimani, head of Iran’s elite Quds Force. Iran has vowed strong revenge.
Revealed: how #Dubai property deals soared in 2019 - Arabianbusiness
Revealed: how Dubai property deals soared in 2019 - Arabianbusiness:
Dubai registered a total of 41,988 real estate sales transactions in 2019, up 20 percent compared to 2018, according to new research.
Data Finder, the real estate insights and data platform under the Property Finder Group, said the figure represents the highest number of deals registered annually in Dubai since 2008.
It also follows the formation in September of the Higher Real Estate Committee to rebalance supply and demand.
The report said the committee has helped inspire market confidence, with both October and November seeing record number of transactions - 4,774 and 5,037, respectively.
December 2019 clocked 2,989 registered property sales transactions while other good months for property sales in Dubai last year were July (4,234), September (4,007) and May (3,512).
Dubai registered a total of 41,988 real estate sales transactions in 2019, up 20 percent compared to 2018, according to new research.
Data Finder, the real estate insights and data platform under the Property Finder Group, said the figure represents the highest number of deals registered annually in Dubai since 2008.
It also follows the formation in September of the Higher Real Estate Committee to rebalance supply and demand.
The report said the committee has helped inspire market confidence, with both October and November seeing record number of transactions - 4,774 and 5,037, respectively.
December 2019 clocked 2,989 registered property sales transactions while other good months for property sales in Dubai last year were July (4,234), September (4,007) and May (3,512).
Oil Giant Sees Stock Soar 20% On Unexpected Oil Find | OilPrice.com
Oil Giant Sees Stock Soar 20% On Unexpected Oil Find | OilPrice.com:
Two weeks after France’s supermajor Total joined Apache Corporation in a highly prospective block offshore Suriname, the two oil corporations announced a significant oil discovery in the block, stoking hopes that the prolific Guyana discoveries are extending into the waters of neighboring Suriname.
Apache and Total made the oil discovery at the Maka Central-1 well drilled offshore Suriname on Block 58, in which Total had just acquired a 50-percent working interest and operatorship.
“The new license expands our positions in the Guyana-Suriname Basin, a highly favorable petroleum province,” Arnaud Breuillac, President, Exploration & Production at Total, said at the end of December, when the French company announced the deal.
After drilling the Maka Central-1 well in Block 58, Total and Apache struck oil, with Apache CEO and President John J. Christmann saying “We are very pleased with results from Maka Central-1.”
Two weeks after France’s supermajor Total joined Apache Corporation in a highly prospective block offshore Suriname, the two oil corporations announced a significant oil discovery in the block, stoking hopes that the prolific Guyana discoveries are extending into the waters of neighboring Suriname.
Apache and Total made the oil discovery at the Maka Central-1 well drilled offshore Suriname on Block 58, in which Total had just acquired a 50-percent working interest and operatorship.
“The new license expands our positions in the Guyana-Suriname Basin, a highly favorable petroleum province,” Arnaud Breuillac, President, Exploration & Production at Total, said at the end of December, when the French company announced the deal.
After drilling the Maka Central-1 well in Block 58, Total and Apache struck oil, with Apache CEO and President John J. Christmann saying “We are very pleased with results from Maka Central-1.”
Indonesia to sign billions of dollars of energy and trade deals in #AbuDhabi - Reuters
Indonesia to sign billions of dollars of energy and trade deals in Abu Dhabi - Reuters:
Indonesian President Joko Widodo will oversee the signing of $18.8 billion worth of energy and trade deals on a visit to Abu Dhabi, including Pertamina’s deal with Abu Dhabi National Oil Co to upgrade a West Java refinery, ministers said on Tuesday.
Some of the deals have been under discussions for some time, while others, such as Pertamina’s purchase of LPG from ADNOC, are new.
Widodo will witness the signings this weekend on his first overseas trip of the year, following an official visit by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed al-Nahyan to Indonesia in July.
Widodo, whose second term in office began in October, is keen to attract more foreign investors to help create jobs and boost growth in Southeast Asia’s largest economy.
Indonesian President Joko Widodo will oversee the signing of $18.8 billion worth of energy and trade deals on a visit to Abu Dhabi, including Pertamina’s deal with Abu Dhabi National Oil Co to upgrade a West Java refinery, ministers said on Tuesday.
Some of the deals have been under discussions for some time, while others, such as Pertamina’s purchase of LPG from ADNOC, are new.
Widodo will witness the signings this weekend on his first overseas trip of the year, following an official visit by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed al-Nahyan to Indonesia in July.
Widodo, whose second term in office began in October, is keen to attract more foreign investors to help create jobs and boost growth in Southeast Asia’s largest economy.
#SaudiArabia grants license to Bank of China to open branch in kingdom - state news agency - Reuters
Saudi Arabia grants license to Bank of China to open branch in kingdom - state news agency - Reuters:
Saudi Arabia’s cabinet has approved Bank of China’s license to open a branch in the kingdom, state news agency SPA said in a tweet on Tuesday.
Bank of China joins a growing band of Chinese firms expanding in the kingdom. Nearly four years ago Industrial and Commercial Bank of China, the world’s biggest bank by assets, launched its first branch in Riyadh.
Beijing maintains close ties with Saudi Arabia, which is China’s top oil supplier.
Saudi Arabia’s cabinet has approved Bank of China’s license to open a branch in the kingdom, state news agency SPA said in a tweet on Tuesday.
Bank of China joins a growing band of Chinese firms expanding in the kingdom. Nearly four years ago Industrial and Commercial Bank of China, the world’s biggest bank by assets, launched its first branch in Riyadh.
Beijing maintains close ties with Saudi Arabia, which is China’s top oil supplier.
A #Saudi family feud, a decade-long debt saga and a court's $14 billion decision - Reuters
A Saudi family feud, a decade-long debt saga and a court's $14 billion decision - Reuters:
Saudi Arabia’s largest and longest debt saga, fueled by a feud that has split one of its richest families, could be nearing a resolution after a court approved about $14 billion in claims related to the collapse of two business empires a decade ago.
The Saudi court has accepted more than $7 billion in claims from creditors against the Algosaibi family’s conglomerate AHAB, and about $6.5 billion against tycoon Maan al-Sanea and his company Saad Group, two court documents seen by Reuters showed.
The Algosaibis and Sanea - who married into the Algosaibi family - have been locked into a bitter dispute over who was to blame for the 2009 collapse of the companies.
Both sides deny wrongdoing, but the demise of the two companies nonetheless left dozens of local and international banks with billions of dollars of unpaid debt.
A court-driven end to the saga would not only offer some relief to those creditors, but more broadly would be an important sign to international investors, as the cases would be resolved under a new bankruptcy law introduced in 2018 as part of reforms aimed at making the kingdom more investor friendly.
The Dammam Commercial Court last week approved more than $7 billion of claims against AHAB (Ahmad Hamad Algosaibi and Bros.) out of nearly $12 billion in total claims listed, according to one of the documents seen by Reuters.
In December the court approved around $6.5 billion of claims against Sanea and Saad out of nearly $18 billion of listed claims, excluding those filed by the group’s employees, according to a separate document.
Saudi Arabia’s largest and longest debt saga, fueled by a feud that has split one of its richest families, could be nearing a resolution after a court approved about $14 billion in claims related to the collapse of two business empires a decade ago.
The Saudi court has accepted more than $7 billion in claims from creditors against the Algosaibi family’s conglomerate AHAB, and about $6.5 billion against tycoon Maan al-Sanea and his company Saad Group, two court documents seen by Reuters showed.
The Algosaibis and Sanea - who married into the Algosaibi family - have been locked into a bitter dispute over who was to blame for the 2009 collapse of the companies.
Both sides deny wrongdoing, but the demise of the two companies nonetheless left dozens of local and international banks with billions of dollars of unpaid debt.
A court-driven end to the saga would not only offer some relief to those creditors, but more broadly would be an important sign to international investors, as the cases would be resolved under a new bankruptcy law introduced in 2018 as part of reforms aimed at making the kingdom more investor friendly.
The Dammam Commercial Court last week approved more than $7 billion of claims against AHAB (Ahmad Hamad Algosaibi and Bros.) out of nearly $12 billion in total claims listed, according to one of the documents seen by Reuters.
In December the court approved around $6.5 billion of claims against Sanea and Saad out of nearly $18 billion of listed claims, excluding those filed by the group’s employees, according to a separate document.
MIDEAST STOCKS-Financials boost #UAE stocks; Saudis down on petchems - Agricultural Commodities - Reuters
MIDEAST STOCKS-Financials boost UAE stocks; Saudis down on petchems - Agricultural Commodities - Reuters:
Stocks in United Arab Emirates rose on
Tuesday, boosted by financial-services shares, while
petrochemical stocks sent the Saudi market down.
On Sunday, Gulf stocks declined, with Kuwait falling the
most in two years on their first day of trade following a U.S.
attack in Iraq that killed Iranian military commander Qassem
Soleimani, ramping up tensions in the region.
With no immediate retaliation, some of the tension abated.
That helped to push oil and gold prices lower on Tuesday as
investors booked profits.
In Dubai, the index advanced 2%, driven by a 3.6%
leap in blue-chip developer Emaar Properties and a
2.4% gain by its largest bank, Emirates NBD.
The Kuwait index rose 1.3% with most stocks on the
index ending higher. National Bank Of Kuwait rose 1.5%
and Agility Public Warehousing was up 1.8% after it
was awarded a project to develop 1.2 million square meters of
land.
Stocks in United Arab Emirates rose on
Tuesday, boosted by financial-services shares, while
petrochemical stocks sent the Saudi market down.
On Sunday, Gulf stocks declined, with Kuwait falling the
most in two years on their first day of trade following a U.S.
attack in Iraq that killed Iranian military commander Qassem
Soleimani, ramping up tensions in the region.
With no immediate retaliation, some of the tension abated.
That helped to push oil and gold prices lower on Tuesday as
investors booked profits.
In Dubai, the index advanced 2%, driven by a 3.6%
leap in blue-chip developer Emaar Properties and a
2.4% gain by its largest bank, Emirates NBD.
The Kuwait index rose 1.3% with most stocks on the
index ending higher. National Bank Of Kuwait rose 1.5%
and Agility Public Warehousing was up 1.8% after it
was awarded a project to develop 1.2 million square meters of
land.
Prime property predictions 2020: Europe, the Middle East and Africa | FT Property Listings #UAE
Prime property predictions 2020: Europe, the Middle East and Africa | FT Property Listings:
In the United Arab Emirates, a combination of new government policies and major investment is set to change residential markets. In Dubai, the government has set up a real estate committee to address concerns such as oversupply, and 2020 will see developers focus on completion and handover of ongoing projects.
A Dh50bn ($13.6bn) fund in Abu Dhabi will boost the development of small and medium-sized businesses, research and development, and eco-tourism alongside a significant infrastructure spend. This should cascade into the local economy, although there may be a short lag for this to trickle into real estate capital values.
Freehold legislation changes announced in 2019 have helped create an investment-friendly legal framework and, as prices begin to bottom out, will herald a more stable, less cyclical and therefore more sophisticated market.
A growing population in Sharjah is driving demand in an area coined Emerging Sharjah. Inquiry levels rose 50 per cent between the first and second quarters of 2019 and this is expected to continue into 2020.
In the United Arab Emirates, a combination of new government policies and major investment is set to change residential markets. In Dubai, the government has set up a real estate committee to address concerns such as oversupply, and 2020 will see developers focus on completion and handover of ongoing projects.
A Dh50bn ($13.6bn) fund in Abu Dhabi will boost the development of small and medium-sized businesses, research and development, and eco-tourism alongside a significant infrastructure spend. This should cascade into the local economy, although there may be a short lag for this to trickle into real estate capital values.
Freehold legislation changes announced in 2019 have helped create an investment-friendly legal framework and, as prices begin to bottom out, will herald a more stable, less cyclical and therefore more sophisticated market.
A growing population in Sharjah is driving demand in an area coined Emerging Sharjah. Inquiry levels rose 50 per cent between the first and second quarters of 2019 and this is expected to continue into 2020.
Decade of Business Growth at Risk for a Top Gulf Economy: Chart - Bloomberg
Decade of Business Growth at Risk for a Top Gulf Economy: Chart - Bloomberg:
Even before a showdown between Iran and the U.S. shook up the Gulf, business conditions in one of the region’s biggest economies had their worst showing after a decade of expansion. Demand has turned so weak that not even price discounting could help sales in the United Arab Emirates, according to IHS Markit. That’s left its U.A.E. Purchasing Managers’ Index for December barely above the threshold of 50 that separates growth from contraction, the lowest level since the data series began in August 2009.
Even before a showdown between Iran and the U.S. shook up the Gulf, business conditions in one of the region’s biggest economies had their worst showing after a decade of expansion. Demand has turned so weak that not even price discounting could help sales in the United Arab Emirates, according to IHS Markit. That’s left its U.A.E. Purchasing Managers’ Index for December barely above the threshold of 50 that separates growth from contraction, the lowest level since the data series began in August 2009.
#SaudiArabia and #Kuwait hire consultant to assess Dorra gas field: Kuwaiti paper - Reuters
Saudi Arabia and Kuwait hire consultant to assess Dorra gas field: Kuwaiti paper - Reuters:
Saudi Arabia and Kuwait have asked an international consultant to study the development plan for the Dorra offshore gas field and assess the share of the gas for each country from the joint project, Kuwaiti al-Rai newspaper reported on Tuesday.
Such a development would indicate that the two Gulf OPEC producers are moving forward with the project, which they shelved in 2013 after disagreeing over how to share the gas back on land. Both countries need the field to satisfy their growing gas consumption for power generation and boost exports.
The independent consultant, which Kuwaiti al-Rai did not name, will study the production volumes, storage options and cost of development for the field, the newspaper said, citing unnamed sources.
Dorra, which is located in the divided zone between Saudi Arabia and Kuwait, also known as the Neutral Zone, has an estimated 10-11 trillion cubic feet of gas and around 300 million barrels of oil.
Saudi Arabia and Kuwait have asked an international consultant to study the development plan for the Dorra offshore gas field and assess the share of the gas for each country from the joint project, Kuwaiti al-Rai newspaper reported on Tuesday.
Such a development would indicate that the two Gulf OPEC producers are moving forward with the project, which they shelved in 2013 after disagreeing over how to share the gas back on land. Both countries need the field to satisfy their growing gas consumption for power generation and boost exports.
The independent consultant, which Kuwaiti al-Rai did not name, will study the production volumes, storage options and cost of development for the field, the newspaper said, citing unnamed sources.
Dorra, which is located in the divided zone between Saudi Arabia and Kuwait, also known as the Neutral Zone, has an estimated 10-11 trillion cubic feet of gas and around 300 million barrels of oil.
Oil tumbles as investors rethink Mideast disruption risk - Reuters
Oil tumbles as investors rethink Mideast disruption risk - Reuters:
Oil prices on Tuesday surrendered some gains made over the previous two days as investors reconsidered the likelihood of Middle East supply disruptions in the wake of the United States killing a top Iranian military commander.
Brent crude LCOc1 fell as much as 1.5% to $67.86 a barrel and was at $68.39, down 52 cents, at 0737 GMT. U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $62.85, down 42 cents, after earlier dropping 1.5% to an intra-day low of $62.30.
Prices surged during the previous two sessions, with Brent reaching its highest since September while WTI rose to the most since April. The gains followed fears of escalating conflict and potential Middle East supply disruptions after the Jan. 3 drone strike in Baghdad that killed Iran’s Qassem Soleimani. But, some analysts have tempered expectations for a widespread conflict.
“The market’s clearly worried about the potential for supply disruption but there’s no obvious path forward from here,” said Lachlan Shaw, head of commodity research at National Australia Bank.
Oil prices on Tuesday surrendered some gains made over the previous two days as investors reconsidered the likelihood of Middle East supply disruptions in the wake of the United States killing a top Iranian military commander.
Brent crude LCOc1 fell as much as 1.5% to $67.86 a barrel and was at $68.39, down 52 cents, at 0737 GMT. U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $62.85, down 42 cents, after earlier dropping 1.5% to an intra-day low of $62.30.
Prices surged during the previous two sessions, with Brent reaching its highest since September while WTI rose to the most since April. The gains followed fears of escalating conflict and potential Middle East supply disruptions after the Jan. 3 drone strike in Baghdad that killed Iran’s Qassem Soleimani. But, some analysts have tempered expectations for a widespread conflict.
“The market’s clearly worried about the potential for supply disruption but there’s no obvious path forward from here,” said Lachlan Shaw, head of commodity research at National Australia Bank.
MIDEAST STOCKS- #Saudi, #UAE rise on banks; #Qatar retreats - Reuters
MIDEAST STOCKS-Saudi, UAE rise on banks; Qatar retreats - Reuters:
Most major Gulf stock markets rose on Tuesday, led by banking shares, though Qatar was marginally lower, weighed down by its financial stocks.
On Sunday, the Gulf saw steep declines, with Kuwait falling the most on its first day of trading after a U.S. attack in Iraq that has ramped up tensions in the region.
Following the attack on Friday, in which Iranian military commander Qassem Soleimani was killed, Tehran promised vengeance.
With no immediate retaliation, some of the tensions have simmered down. That helped to push oil and gold prices lower on Tuesday as investors booked profits.
Saudi Arabia’s benchmark index added 0.6%, with Al Rajhi Bank increasing 0.9% and Riyad Bank up 0.9%.
Most major Gulf stock markets rose on Tuesday, led by banking shares, though Qatar was marginally lower, weighed down by its financial stocks.
On Sunday, the Gulf saw steep declines, with Kuwait falling the most on its first day of trading after a U.S. attack in Iraq that has ramped up tensions in the region.
Following the attack on Friday, in which Iranian military commander Qassem Soleimani was killed, Tehran promised vengeance.
With no immediate retaliation, some of the tensions have simmered down. That helped to push oil and gold prices lower on Tuesday as investors booked profits.
Saudi Arabia’s benchmark index added 0.6%, with Al Rajhi Bank increasing 0.9% and Riyad Bank up 0.9%.