Oil dives as U.S., Iran tensions ease and on U.S. crude build - Reuters:
Oil futures fell more than 4% on Wednesday in a wild swing, soaring close to a four-month high in early trade on an Iranian rocket attack on U.S. forces in Iraq before retreating as the countries quickly ratcheted back tensions.
Prices fell as it became evident the rocket attack did not damage oil facilities or harm any Americans, with more pressure coming from a surprise build in U.S. crude stockpiles.
U.S. President Donald Trump backed away from days of angry rhetoric against Iran as the two countries tried to defuse a crisis over the American killing of Iranian military commander Qassem Soleimani.
“The fact that we have this great military and equipment ... does not mean we have to use it,” Trump said in an address from the White House, noting Iran appears to be standing down.
Before Trump’s address, prices were already retreating from overnight highs after tweets by the U.S. president and Iran’s foreign minister signaled at least temporary calm.
Brent futures fell $2.83, or 4.2%, to settle at $65.44 a barrel, their lowest close since Dec. 16. In early trade, the contract hit its highest since mid-September at $71.75.
The global benchmark had been trending higher since hitting an October low of $56.15 per barrel; the session high on Wednesday was 28% above that level.
U.S. West Texas Intermediate (WTI) crude fell $3.09, or 4.9%, to settle at $59.61 per barrel, its lowest close since Dec. 12. The session high of $65.65 was the highest since late April.
Wednesday, 8 January 2020
Oil at the crossroads as hedge funds build large bullish position: Kemp - Reuters
Oil at the crossroads as hedge funds build large bullish position: Kemp - Reuters:
Even before Iranian general Qassem Soleimani was killed by a U.S. air strike on Jan. 3, ratcheting up tensions across the Middle East, hedge funds had become very bullish about oil prices.
Fund managers amassed an unusually large net long position in petroleum futures and options towards the end of last year in anticipation of the global economy picking up in 2020, but that also leaves prices vulnerable to a correction if the recovery is delayed or fails to materialize.
Hedge funds and other money managers had raised their combined net long position in the six most important petroleum futures and options contracts to 951 million barrels on Dec. 31, the highest for almost 15 months.
Not only was that the largest bullish position of 2019, it was more than double early October’s low of 437 million barrels and triple the low for the year of just 302 million back in January.
Even before Iranian general Qassem Soleimani was killed by a U.S. air strike on Jan. 3, ratcheting up tensions across the Middle East, hedge funds had become very bullish about oil prices.
Fund managers amassed an unusually large net long position in petroleum futures and options towards the end of last year in anticipation of the global economy picking up in 2020, but that also leaves prices vulnerable to a correction if the recovery is delayed or fails to materialize.
Hedge funds and other money managers had raised their combined net long position in the six most important petroleum futures and options contracts to 951 million barrels on Dec. 31, the highest for almost 15 months.
Not only was that the largest bullish position of 2019, it was more than double early October’s low of 437 million barrels and triple the low for the year of just 302 million back in January.
1MDB scandal: Malaysia’s former PM 'asked #UAE to fake evidence' | World news | The Guardian
1MDB scandal: Malaysia’s former PM 'asked UAE to fake evidence' | World news | The Guardian:
Malaysia’s former prime minister, Najib Razak, allegedly sought help from the United Arab Emirates’ crown prince to fake evidence in an effort to cover up for the 1MDB scandal, according to audio clips revealed by Malaysian anti-corruption officials.
Najib rejected the allegations. The UAE government communication office, the National Media Council, which also represents the palace, did not immediately respond to a request for comment.
The Malaysian Anti-Corruption Commission (MACC) played audio clips for the media of nine telephone conversations from 2016 that it believes are linked to the 1Malaysia Development Berhad (1MDB) multibillion dollar scandal.
Besides Najib, the MACC said UAE Crown Prince Sheikh Mohammed bin Zayed al-Nahyan, Najib’s wife, Rosmah Mansor, and Malaysian and Emirati officials were on the calls.
Malaysia’s former prime minister, Najib Razak, allegedly sought help from the United Arab Emirates’ crown prince to fake evidence in an effort to cover up for the 1MDB scandal, according to audio clips revealed by Malaysian anti-corruption officials.
Najib rejected the allegations. The UAE government communication office, the National Media Council, which also represents the palace, did not immediately respond to a request for comment.
The Malaysian Anti-Corruption Commission (MACC) played audio clips for the media of nine telephone conversations from 2016 that it believes are linked to the 1Malaysia Development Berhad (1MDB) multibillion dollar scandal.
Besides Najib, the MACC said UAE Crown Prince Sheikh Mohammed bin Zayed al-Nahyan, Najib’s wife, Rosmah Mansor, and Malaysian and Emirati officials were on the calls.
OPEC Seeks to Reassure Oil Market on Spiking Mideast Tension - Bloomberg
OPEC Seeks to Reassure Oil Market on Spiking Mideast Tension - Bloomberg: OPEC and one of its biggest producers sought to tamp down concerns over Middle Eastern oil supply on Wednesday after Iran fired missiles at U.S. forces in Iraq.
Global crude markets are well supplied, and the Organization of Petroleum Exporting Countries and allied producers will respond if necessary to spiking tensions in the region, U.A.E. Energy Minister Suhail Al Mazrouei told reporters in Abu Dhabi. The escalating conflict between the U.S. and Iran doesn’t pose a risk to the Strait of Hormuz, a bottleneck for oil shipments from the Persian Gulf, he said.
“We are not forecasting a shortage of supply unless we have a catastrophic escalation, which we don’t see,” Al Mazrouei said in the United Arab Emirates’ capital.
Global crude markets are well supplied, and the Organization of Petroleum Exporting Countries and allied producers will respond if necessary to spiking tensions in the region, U.A.E. Energy Minister Suhail Al Mazrouei told reporters in Abu Dhabi. The escalating conflict between the U.S. and Iran doesn’t pose a risk to the Strait of Hormuz, a bottleneck for oil shipments from the Persian Gulf, he said.
“We are not forecasting a shortage of supply unless we have a catastrophic escalation, which we don’t see,” Al Mazrouei said in the United Arab Emirates’ capital.
NMC Health, Finablr stocks tumble after major investors dump shares - Reuters
NMC Health, Finablr stocks tumble after major investors dump shares - Reuters:
Shares in NMC Health (NMC.L) and Finablr (FINF.L) plunged on Wednesday after two major shareholders launched a discounted share sale in the London-listed groups, weeks after NMC was hit by a short-selling attack by U.S. firm Muddy Waters.
The healthcare firm’s vice-chairman Khaleefa Al Muhairi and its second-largest shareholder Saeed Al Qebaisi have together sold NMC shares worth 375 million pounds ($493 million).
The deal was priced at 1,200 pence per share, a bookrunner said, adding that the sale was oversubscribed. The price is at a discount of about 20% to NMC’s last close.
Qebaisi and Muhairi have also sold about 6% of total shares in Finablr for roughly $72 million. The payments firm is co-chaired by Bavaguthu Raghuram Shetty, also the founder and co-chairman of NMC.
Shares in NMC Health (NMC.L) and Finablr (FINF.L) plunged on Wednesday after two major shareholders launched a discounted share sale in the London-listed groups, weeks after NMC was hit by a short-selling attack by U.S. firm Muddy Waters.
The healthcare firm’s vice-chairman Khaleefa Al Muhairi and its second-largest shareholder Saeed Al Qebaisi have together sold NMC shares worth 375 million pounds ($493 million).
The deal was priced at 1,200 pence per share, a bookrunner said, adding that the sale was oversubscribed. The price is at a discount of about 20% to NMC’s last close.
Qebaisi and Muhairi have also sold about 6% of total shares in Finablr for roughly $72 million. The payments firm is co-chaired by Bavaguthu Raghuram Shetty, also the founder and co-chairman of NMC.
Travelex staff go back to basics as ransomware cripples systems - Reuters
Travelex staff go back to basics as ransomware cripples systems - Reuters:
Staff at foreign exchange firm Travelex are using pen and paper to serve thousands of customers after the company said cyber hackers were holding its systems to ransom, leading to a global blackout on its online currency exchange services.
The currency trader, which also provides forex services for customers of HSBC (HSBA.L), Barclays (BARC.L), Virgin Money (VMUK.L) and the banking arms of British retailers Tesco (TSCO.L) and Sainsbury (SBRY.L), said on Tuesday a software virus identified on Jan. 2 was a ransomware attack.
The spread of the ransomware, which Travelex said it had successfully contained, forced the company to take all its systems offline, causing chaos for New Year holidaymakers and business travellers seeking online currency services.
The company, which has a presence in more than 70 countries, is currently only able to serve customers face-to-face at its 1,200 on-airport and off-airport locations worldwide.
Staff at foreign exchange firm Travelex are using pen and paper to serve thousands of customers after the company said cyber hackers were holding its systems to ransom, leading to a global blackout on its online currency exchange services.
The currency trader, which also provides forex services for customers of HSBC (HSBA.L), Barclays (BARC.L), Virgin Money (VMUK.L) and the banking arms of British retailers Tesco (TSCO.L) and Sainsbury (SBRY.L), said on Tuesday a software virus identified on Jan. 2 was a ransomware attack.
The spread of the ransomware, which Travelex said it had successfully contained, forced the company to take all its systems offline, causing chaos for New Year holidaymakers and business travellers seeking online currency services.
The company, which has a presence in more than 70 countries, is currently only able to serve customers face-to-face at its 1,200 on-airport and off-airport locations worldwide.
MIDEAST STOCKS-Major Gulf indexes slide as #Iran retaliates; Aramco's retreat extends - Reuters
MIDEAST STOCKS-Major Gulf indexes slide as Iran retaliates; Aramco's retreat extends - Reuters:
Major stock markets in the Gulf ended
lower on Wednesday after Iran launched missiles at bases housing
U.S. forces in Iraq, while Saudi Aramco extended losses.
Iran retaliated against the U.S. drone strike that killed an
Iranian commander late last week, an attack that stoked fears of
all-out conflict in the Middle East and set off a bout of risk
aversion.
However, Iranian officials said Tehran did not want a war
and its strikes "concluded" its response to the U.S. air strike,
helping settle down surges in oil and gold prices.
Saudi Arabia's benchmark index dipped 0.9% with all
its banking stocks ending in red except one. Al Rajhi Bank
was down 0.9%, while Samba Financial Group
decreased 2.2%.
State-owned Saudi Aramco fell 0.4% to 34.2 riyals
($9.12), extending losses for a fourth day in a row. The stock
opened at 34 riyals, hitting its lowest since it began trading
on Dec. 11.
Major stock markets in the Gulf ended
lower on Wednesday after Iran launched missiles at bases housing
U.S. forces in Iraq, while Saudi Aramco extended losses.
Iran retaliated against the U.S. drone strike that killed an
Iranian commander late last week, an attack that stoked fears of
all-out conflict in the Middle East and set off a bout of risk
aversion.
However, Iranian officials said Tehran did not want a war
and its strikes "concluded" its response to the U.S. air strike,
helping settle down surges in oil and gold prices.
Saudi Arabia's benchmark index dipped 0.9% with all
its banking stocks ending in red except one. Al Rajhi Bank
was down 0.9%, while Samba Financial Group
decreased 2.2%.
State-owned Saudi Aramco fell 0.4% to 34.2 riyals
($9.12), extending losses for a fourth day in a row. The stock
opened at 34 riyals, hitting its lowest since it began trading
on Dec. 11.
#Saudi state oil tanker company suspends shipments through Hormuz | Financial Times
Saudi state oil tanker company suspends shipments through Hormuz | Financial Times:
Saudi Arabia’s state-backed oil tanker giant, Bahri, is temporarily suspending shipments through the Strait of Hormuz following Iranian missile strikes on US military bases in Iraq, according to two sources familiar with the matter.
The move, which follows a sharp increase in tensions in the region, may restrict oil shipments from the world’s largest crude exporter, as Saudi Arabia largely relies on its own tankers to move its oil. The majority of Saudi Arabian crude exports pass through the key waterway between the Gulf states and Iran, where around a fifth of global oil supplies pass every day.
One source familiar with Bahri said the shipments had been temporarily stopped as the kingdom assesses the threat in the aftermath of the missile strikes in the early hours of Wednesday morning. Bahri did not immediately respond to a request for comment. It is not clear when shipments might resume.
Saudi Arabia’s state-backed oil tanker giant, Bahri, is temporarily suspending shipments through the Strait of Hormuz following Iranian missile strikes on US military bases in Iraq, according to two sources familiar with the matter.
The move, which follows a sharp increase in tensions in the region, may restrict oil shipments from the world’s largest crude exporter, as Saudi Arabia largely relies on its own tankers to move its oil. The majority of Saudi Arabian crude exports pass through the key waterway between the Gulf states and Iran, where around a fifth of global oil supplies pass every day.
One source familiar with Bahri said the shipments had been temporarily stopped as the kingdom assesses the threat in the aftermath of the missile strikes in the early hours of Wednesday morning. Bahri did not immediately respond to a request for comment. It is not clear when shipments might resume.
Oil Shippers Raise Offers for Middle East Route on Gulf Risk - Bloomberg
Oil Shippers Raise Offers for Middle East Route on Gulf Risk - Bloomberg:
Owners of oil tankers are boosting their rates to haul crude on a key route from the Middle East as risks in the Gulf escalate after Iran retaliated against the U.S. killing of a top general.
Shipowners are offering rates for supertankers carrying crude from the Persian Gulf to China at increasingly higher levels, in some cases at least 14% above previous bookings, according to brokers and oil traders in Asia. While there have been no fixtures reported at that level, owners are seeking a premium to enter and load from the region, they said.
The spike in costs for the key shipping route shows how the escalating conflict between the U.S. and Iran is spilling over into global oil supply chains. It’s the latest shock to hit the freight market, which has been shaken over the past year by sanctions on a top Chinese shipowner for transporting Iranian oil and the sabotage of tankers near the Strait of Hormuz -- an act blamed on Iran. More recently, freight rates climbed due to new maritime rules that mandated the use of cleaner-burning ship-fuels.
Owners of oil tankers are boosting their rates to haul crude on a key route from the Middle East as risks in the Gulf escalate after Iran retaliated against the U.S. killing of a top general.
Shipowners are offering rates for supertankers carrying crude from the Persian Gulf to China at increasingly higher levels, in some cases at least 14% above previous bookings, according to brokers and oil traders in Asia. While there have been no fixtures reported at that level, owners are seeking a premium to enter and load from the region, they said.
The spike in costs for the key shipping route shows how the escalating conflict between the U.S. and Iran is spilling over into global oil supply chains. It’s the latest shock to hit the freight market, which has been shaken over the past year by sanctions on a top Chinese shipowner for transporting Iranian oil and the sabotage of tankers near the Strait of Hormuz -- an act blamed on Iran. More recently, freight rates climbed due to new maritime rules that mandated the use of cleaner-burning ship-fuels.
NMC Drops After Two Investors Sell Stake Below Market Price - Bloomberg
NMC Drops After Two Investors Sell Stake Below Market Price - Bloomberg:
NMC Health Plc plunged after two major investors sold $493 million worth of shares well below the market price to reduce their holdings in the troubled health-care group.
The stock fell as much as 20% in London. Former director Saeed Mohamed Butti Mohamed Khalfan Al Qebaisi and Executive Vice Chairman Khaleefa Butti Omair Yousif Ahmed Al Muhairi together sold about 15% of NMC for about 1,200 pence a share.
The hospital operator had a rocky end to 2019 as shares slumped following allegations by Carson Block’s Muddy Waters Capital LLC. The short-selling firm said the company’s financial statements hint at potential overpayment for assets, inflated cash balances and understated debt.
NMC has said that those claims are unfounded and that it will conduct an independent review. Based in the United Arab Emirates, the company owns and operates hospitals in the Middle East.
NMC Health Plc plunged after two major investors sold $493 million worth of shares well below the market price to reduce their holdings in the troubled health-care group.
The stock fell as much as 20% in London. Former director Saeed Mohamed Butti Mohamed Khalfan Al Qebaisi and Executive Vice Chairman Khaleefa Butti Omair Yousif Ahmed Al Muhairi together sold about 15% of NMC for about 1,200 pence a share.
The hospital operator had a rocky end to 2019 as shares slumped following allegations by Carson Block’s Muddy Waters Capital LLC. The short-selling firm said the company’s financial statements hint at potential overpayment for assets, inflated cash balances and understated debt.
NMC has said that those claims are unfounded and that it will conduct an independent review. Based in the United Arab Emirates, the company owns and operates hospitals in the Middle East.
#AbuDhabi Sovereign Fund Sells $947 Million UniCredit Stake - Bloomberg
Abu Dhabi Sovereign Fund Sells $947 Million UniCredit Stake - Bloomberg:
Abu Dhabi sovereign wealth fund Mubadala more than halved its shareholding in Italian bank UniCredit SpA as the holder of about 6% of the world’s oil reserves sells stakes in overseas assets.
The fund’s stake declined to about 2.02% as of Dec. 20, according a filing by the Italian market regulator, down from a 4.99% stake in June, Consob said in a statement late Tuesday. The stake sold by the fund is valued about 850 million euros ($947 million) based on yesterday’s closing price.
Representatives for Mubadala and UniCredit declined to comment.
Abu Dhabi’s fund bought the stake in 2010 as part of its strategy to diversify investments from the emirate’s oil-based economy. At the time, the holding was valued at about 1.8 billion euros. The fund, started as a means of diversifying the economy by attracting expertise and jobs to the emirate, is now a global investing powerhouse. The fund has invested in Greek fish farming, Europe’s biggest electric-scooter-sharing company and a Canadian data center.
Abu Dhabi sovereign wealth fund Mubadala more than halved its shareholding in Italian bank UniCredit SpA as the holder of about 6% of the world’s oil reserves sells stakes in overseas assets.
The fund’s stake declined to about 2.02% as of Dec. 20, according a filing by the Italian market regulator, down from a 4.99% stake in June, Consob said in a statement late Tuesday. The stake sold by the fund is valued about 850 million euros ($947 million) based on yesterday’s closing price.
Representatives for Mubadala and UniCredit declined to comment.
Abu Dhabi’s fund bought the stake in 2010 as part of its strategy to diversify investments from the emirate’s oil-based economy. At the time, the holding was valued at about 1.8 billion euros. The fund, started as a means of diversifying the economy by attracting expertise and jobs to the emirate, is now a global investing powerhouse. The fund has invested in Greek fish farming, Europe’s biggest electric-scooter-sharing company and a Canadian data center.
COLUMN-Where does Gulf crisis go after limited #Iran strikes?: Peter Apps - Reuters
COLUMN-Where does Gulf crisis go after limited Iran strikes?: Peter Apps - Reuters:
Iran’s Major General Qassem Soleimani would have been devastated to learn his surviving colleagues at the top of Iran’s government considered the firing of 20 missiles at U.S. bases a “proportionate response” to his assassination.
Whether Tehran’s military response is truly complete, of course, remains uncertain – although Foreign Minister Javad Zarif was unusually clear in tweeting shortly afterwards that the strikes “concluded a proportionate response”. Even if it is, the question is whether President Donald Trump will go through with his own Twitter threats to unleash overwhelming U.S. strikes – including against cultural sites – in retaliation. The lack of U.S. casualties, together with the president’s own tweet following the strikes that “all is well”, suggest that will not happen.
If further direct military action can be avoided, that would be a relief to many in Washington and across the region – and, in some quarters, seen as something of a vindication of the decision to strike. Had Soleimani not been killed, supporters of the action will maintain, the United States could have been trapped in a dangerous cycle of escalation in Iraq that could have killed many more.
Iran’s Major General Qassem Soleimani would have been devastated to learn his surviving colleagues at the top of Iran’s government considered the firing of 20 missiles at U.S. bases a “proportionate response” to his assassination.
Whether Tehran’s military response is truly complete, of course, remains uncertain – although Foreign Minister Javad Zarif was unusually clear in tweeting shortly afterwards that the strikes “concluded a proportionate response”. Even if it is, the question is whether President Donald Trump will go through with his own Twitter threats to unleash overwhelming U.S. strikes – including against cultural sites – in retaliation. The lack of U.S. casualties, together with the president’s own tweet following the strikes that “all is well”, suggest that will not happen.
If further direct military action can be avoided, that would be a relief to many in Washington and across the region – and, in some quarters, seen as something of a vindication of the decision to strike. Had Soleimani not been killed, supporters of the action will maintain, the United States could have been trapped in a dangerous cycle of escalation in Iraq that could have killed many more.
Revealed: the importance of DAFZA to #Dubai's foreign trade - Arabianbusiness
Revealed: the importance of DAFZA to Dubai's foreign trade - Arabianbusiness:
Dubai Airport Freezone Authority (DAFZA) on Wednesday announced that it contributed 12 percent of Dubai's AED1.02 trillion ($272 billion) foreign trade in the first nine months of 2019.
DAFZA said it achieved a growth of 11.2 percent in the total value of foreign trade to reach AED120 billion ($32.6 billion), in addition to an 11.8 percent growth in re-exports, valued at AED68 billion and accounted for 21.7 percent from the total re-exports in the emirate of Dubai.
DAFZA added that its operations during the first nine months of 2019 helped achieve a large trade surplus of AED16.2 billion.
Dr Mohammed Al Zarooni, director general of DAFZA, said: “Today, DAFZA is a key contributor to Dubai’s economy, attracting foreign direct investments from all over the world. Despite economic conditions and global uncertainties, the results achieved across a range of KPIs reflect the increasing global trade volumes coming through the free zone towards international markets.
Dubai Airport Freezone Authority (DAFZA) on Wednesday announced that it contributed 12 percent of Dubai's AED1.02 trillion ($272 billion) foreign trade in the first nine months of 2019.
DAFZA said it achieved a growth of 11.2 percent in the total value of foreign trade to reach AED120 billion ($32.6 billion), in addition to an 11.8 percent growth in re-exports, valued at AED68 billion and accounted for 21.7 percent from the total re-exports in the emirate of Dubai.
DAFZA added that its operations during the first nine months of 2019 helped achieve a large trade surplus of AED16.2 billion.
Dr Mohammed Al Zarooni, director general of DAFZA, said: “Today, DAFZA is a key contributor to Dubai’s economy, attracting foreign direct investments from all over the world. Despite economic conditions and global uncertainties, the results achieved across a range of KPIs reflect the increasing global trade volumes coming through the free zone towards international markets.
#Saudi Aramco falls on U.S.-Iran tensions; debt markets little changed - Reuters
Saudi Aramco falls on U.S.-Iran tensions; debt markets little changed - Reuters:
Saudi Aramco shares fell to a new low on Wednesday after Iran launched missiles against U.S. targets in Iraq, but Gulf debt markets were fairly stable, as some had feared stronger retaliation from Iran.
Saudi Aramco opened at 34 riyals ($9.06), its lowest since it began trading on Dec. 11, putting the market value of the company at around $1.8 billion, down from a peak of $2.06 trillion on Dec 12.
Aramco’s shares fell in the final couple of weeks of 2019 because reality kicked in among investors, but the recent weakness was caused by geopolitical tensions, said Jason Tuvey, a senior emerging markets economist at Capital Economics.
Aramco shares are down almost 12% from a high of 38.70 riyals on Dec. 12, but still above the IPO price of 32 riyals, which valued the company at $1.7 trillion.
Saudi Aramco shares fell to a new low on Wednesday after Iran launched missiles against U.S. targets in Iraq, but Gulf debt markets were fairly stable, as some had feared stronger retaliation from Iran.
Saudi Aramco opened at 34 riyals ($9.06), its lowest since it began trading on Dec. 11, putting the market value of the company at around $1.8 billion, down from a peak of $2.06 trillion on Dec 12.
Aramco’s shares fell in the final couple of weeks of 2019 because reality kicked in among investors, but the recent weakness was caused by geopolitical tensions, said Jason Tuvey, a senior emerging markets economist at Capital Economics.
Aramco shares are down almost 12% from a high of 38.70 riyals on Dec. 12, but still above the IPO price of 32 riyals, which valued the company at $1.7 trillion.
#UAE sees no immediate risk to oil flow through Strait of Hormuz - Reuters
UAE sees no immediate risk to oil flow through Strait of Hormuz - Reuters:
The United Arab Emirates’ energy minister said on Wednesday he saw no immediate risk to oil passing through the vital gateway of the Strait of Hormuz after Iran attacked bases housing U.S. forces in Iraq.
Iranian officials have said the missile strikes were a response to Friday’s killing of top Iranian commander Qassem Soleimani in Baghdad.
The situation is not a war, and what is happening now should not be exaggerated, Suhail al-Mazrouei said on the sidelines of a conference in Abu Dhabi, capital of the UAE, an OPEC producer.
“We will not see a war,” he added. “This is definitely an escalation between the United States, which is an ally, and Iran, which is a neighbor, and the last thing we want is more tension in the Middle East.”
The United Arab Emirates’ energy minister said on Wednesday he saw no immediate risk to oil passing through the vital gateway of the Strait of Hormuz after Iran attacked bases housing U.S. forces in Iraq.
Iranian officials have said the missile strikes were a response to Friday’s killing of top Iranian commander Qassem Soleimani in Baghdad.
The situation is not a war, and what is happening now should not be exaggerated, Suhail al-Mazrouei said on the sidelines of a conference in Abu Dhabi, capital of the UAE, an OPEC producer.
“We will not see a war,” he added. “This is definitely an escalation between the United States, which is an ally, and Iran, which is a neighbor, and the last thing we want is more tension in the Middle East.”
Oil prices shed gains as alarm over #Iran rocket strike fades - for now - Reuters
Oil prices shed gains as alarm over Iran rocket strike fades - for now - Reuters:
Oil prices were up on Wednesday but well below peaks hit in frenzied early trading after a rocket attack by Iran on American forces in Iraq raised the specter of a spiraling Middle East conflict and disruption to crude flows.
Prices gave up most of their early gains as analysts said market tension could ease as long as oil production facilities remain unaffected by attacks. Tweets by U.S. President Donald Trump and Iran’s foreign minister also appeared to signal a period of calm - for now.
Brent crude futures were up 26 cents, or 0.38%, to $68.53 by around 0908 GMT, after earlier rising to their highest level since mid-September 2019 at $71.75.
West Texas Intermediate crude futures gained 10 cents, or 0.16%, to $62.80 a barrel. It earlier hit $65.85, the highest since late April last year.
Iran’s missile attack on U.S.-led forces in Iraq came early on Wednesday, hours after the funeral of Qassem Soleimani, the commander of the country’s elite Quds Force killed in a U.S. drone stroke on Jan. 3.
Oil prices were up on Wednesday but well below peaks hit in frenzied early trading after a rocket attack by Iran on American forces in Iraq raised the specter of a spiraling Middle East conflict and disruption to crude flows.
Prices gave up most of their early gains as analysts said market tension could ease as long as oil production facilities remain unaffected by attacks. Tweets by U.S. President Donald Trump and Iran’s foreign minister also appeared to signal a period of calm - for now.
Brent crude futures were up 26 cents, or 0.38%, to $68.53 by around 0908 GMT, after earlier rising to their highest level since mid-September 2019 at $71.75.
West Texas Intermediate crude futures gained 10 cents, or 0.16%, to $62.80 a barrel. It earlier hit $65.85, the highest since late April last year.
Iran’s missile attack on U.S.-led forces in Iraq came early on Wednesday, hours after the funeral of Qassem Soleimani, the commander of the country’s elite Quds Force killed in a U.S. drone stroke on Jan. 3.
MIDEAST STOCKS-Gulf stocks fall after Iranian missile strike - Reuters
MIDEAST STOCKS-Gulf stocks fall after Iranian missile strike - Reuters:
Gulf stock markets retreated on Wednesday after Iran fired missiles at U.S.-led forces in Iraq in retaliation for the killing of an Iranian military commander last week.
Iranian state television said Iran had fired 15 missiles at U.S. targets. The U.S. military said at least two Iraqi facilities hosting U.S.-led coalition personnel were targeted. Iraq said 22 missiles were fired.
Iranian Foreign Minister Jawad Zarif called the attack “proportionate measures in self-defense,” adding that “we do not seek escalation or war.”
Saudi Arabia’s benchmark index declined 1.4% with Al Rajhi Bank and Samba Financial Group falling 0.9% and 2.8%, respectively.
State-owned Saudi Aramco fell 0.7% to 34.1 riyals ($9.09).
Gulf stock markets retreated on Wednesday after Iran fired missiles at U.S.-led forces in Iraq in retaliation for the killing of an Iranian military commander last week.
Iranian state television said Iran had fired 15 missiles at U.S. targets. The U.S. military said at least two Iraqi facilities hosting U.S.-led coalition personnel were targeted. Iraq said 22 missiles were fired.
Iranian Foreign Minister Jawad Zarif called the attack “proportionate measures in self-defense,” adding that “we do not seek escalation or war.”
Saudi Arabia’s benchmark index declined 1.4% with Al Rajhi Bank and Samba Financial Group falling 0.9% and 2.8%, respectively.
State-owned Saudi Aramco fell 0.7% to 34.1 riyals ($9.09).
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