Oil rises on strong factory activity, crude drawdown forecast - Reuters:
Oil prices edged higher on Tuesday as better-than-expected U.S. manufacturing activity data spurred hope for a post-pandemic economic recovery, and as analysts forecast a sixth weekly drawdown in U.S. crude inventories.
Brent crude LCOc1 futures settled up 30 cents at $45.58 a barrel. U.S. West Texas Intermediate futures CLc1 settled at $42.76 a barrel, up 15 cents.
“Everyone is looking for a draw, of one degree or another, in the API this afternoon,” said Bob Yawger, director of energy futures at Mizuho in New York. “The manufacturing numbers and the bullishness around the AstraZeneca virus vaccine added to the optimism,” he said.
U.S. crude stocks were forecast to have fallen by nearly 2 million barrels last week, according to analysts in a Reuters poll ahead of weekly data from the American Petroleum Institute at 4:30 p.m. ET (2030 GMT) and the government on Wednesday.
Tuesday, 1 September 2020
Israeli business seeks new chapter in #UAE trade after historic deal | Financial Times
Israeli business seeks new chapter in UAE trade after historic deal | Financial Times:
For nearly a decade, Israeli businessmen chasing lucrative deals in the oil-rich United Arab Emirates would board a private jet in Tel Aviv and head instead to neighbouring Egypt, one of only two Arab countries with relations with Israel.
A five minute layover — dubbed the “diplomatic stop” — at Sharm El Sheikh airport on the Red Sea would scrub the flight of its antecedents, and clear it to fly to the UAE.
In recent months, as the tempo of behind-the-scenes contacts sped up, the Emiratis gave permission to skip the stop altogether — planes simply flew a quick loop around the airport and then east across Saudi Arabia to Dubai and Abu Dhabi.
“The first time we did this, they brought out the champagne,” said one traveller who visited this year to hawk an array of cyber-surveillance software from at least six Israeli manufacturers.
For nearly a decade, Israeli businessmen chasing lucrative deals in the oil-rich United Arab Emirates would board a private jet in Tel Aviv and head instead to neighbouring Egypt, one of only two Arab countries with relations with Israel.
A five minute layover — dubbed the “diplomatic stop” — at Sharm El Sheikh airport on the Red Sea would scrub the flight of its antecedents, and clear it to fly to the UAE.
In recent months, as the tempo of behind-the-scenes contacts sped up, the Emiratis gave permission to skip the stop altogether — planes simply flew a quick loop around the airport and then east across Saudi Arabia to Dubai and Abu Dhabi.
“The first time we did this, they brought out the champagne,” said one traveller who visited this year to hawk an array of cyber-surveillance software from at least six Israeli manufacturers.
Funds focus on oil refining margins: Kemp - Reuters
Funds focus on oil refining margins: Kemp - Reuters:
Hedge funds continued to rotate their positions from crude to fuels, especially gasoline, in light trading during the summer vacation period in North America, Europe and the Middle East.
Hedge funds and other money managers sold the equivalent of 10 million barrels in the six most important petroleum futures and options contracts in the week to Aug. 25.
Those sales reversed purchases of 12 million barrels the week before, but the overall position has not changed significantly since mid-July.
Within the global total, however, fund managers have continued to sell crude and buy fuels, a trend evident last week as well. (tmsnrt.rs/31KgV0K)
Portfolio managers sold NYMEX and ICE WTI (-15 million barrels), U.S. diesel (-3 million) and European gasoil (-5 million) while buying Brent (+4 million) and U.S. gasoline (+9 million).
Hedge funds continued to rotate their positions from crude to fuels, especially gasoline, in light trading during the summer vacation period in North America, Europe and the Middle East.
Hedge funds and other money managers sold the equivalent of 10 million barrels in the six most important petroleum futures and options contracts in the week to Aug. 25.
Those sales reversed purchases of 12 million barrels the week before, but the overall position has not changed significantly since mid-July.
Within the global total, however, fund managers have continued to sell crude and buy fuels, a trend evident last week as well. (tmsnrt.rs/31KgV0K)
Portfolio managers sold NYMEX and ICE WTI (-15 million barrels), U.S. diesel (-3 million) and European gasoil (-5 million) while buying Brent (+4 million) and U.S. gasoline (+9 million).
Oil prices lifted by weaker dollar and soaring equities - Reuters
Oil prices lifted by weaker dollar and soaring equities - Reuters:
Oil prices rose on Tuesday, reversing overnight losses against the backdrop of an equities bull run and a sliding U.S. dollar.
Brent crude LCOc1 futures climbed 61 cents to $45.89 a barrel by 1124 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 53 cents, hitting $43.14 a barrel.
The dollar was at it lowest in more than two years against a basket of currencies .DXY, pressured by the U.S. Federal Reserve’s loosening of inflation policy last week, making dollar-priced commodities cheaper for global buyers.
Strong Chinese manufacturing data also lifted oil prices, said Jeffrey Halley, a senior market analyst at OANDA.
Oil prices rose on Tuesday, reversing overnight losses against the backdrop of an equities bull run and a sliding U.S. dollar.
Brent crude LCOc1 futures climbed 61 cents to $45.89 a barrel by 1124 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 53 cents, hitting $43.14 a barrel.
The dollar was at it lowest in more than two years against a basket of currencies .DXY, pressured by the U.S. Federal Reserve’s loosening of inflation policy last week, making dollar-priced commodities cheaper for global buyers.
Strong Chinese manufacturing data also lifted oil prices, said Jeffrey Halley, a senior market analyst at OANDA.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar close
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Etihad Begins Ticket Sales to Israelis in Lead-Up to Flights - Bloomberg
Etihad Begins Ticket Sales to Israelis in Lead-Up to Flights - Bloomberg:
Etihad Airways started selling tickets to Israeli passengers in the lead-up to normal commercial flights between the United Arab Emirates and Israel.
Abu Dhabi-based Etihad will offer flights through Tal Aviation, an Israeli company that handles sales and marketing for airlines in foreign markets, a spokeswoman for the carrier said, confirming a local television report.
Etihad’s move comes a day after an El Al Israel Airlines Ltd. jet carrying a delegation of senior Israeli and American officials flew from Tel Aviv to Abu Dhabi, crossing Saudi Arabian air space for the first time.
While a symbolic breakthrough, it’s not clear whether or when El Al will be able to routinely fly over Saudi Arabia, the biggest land mass in the region.
Etihad Airways started selling tickets to Israeli passengers in the lead-up to normal commercial flights between the United Arab Emirates and Israel.
Abu Dhabi-based Etihad will offer flights through Tal Aviation, an Israeli company that handles sales and marketing for airlines in foreign markets, a spokeswoman for the carrier said, confirming a local television report.
Etihad’s move comes a day after an El Al Israel Airlines Ltd. jet carrying a delegation of senior Israeli and American officials flew from Tel Aviv to Abu Dhabi, crossing Saudi Arabian air space for the first time.
While a symbolic breakthrough, it’s not clear whether or when El Al will be able to routinely fly over Saudi Arabia, the biggest land mass in the region.
Middle East Markets: #Saudi Exchange Plans to Start Single-Stock Futures in 2021 - Bloomberg
Middle East Markets: Saudi Exchange Plans to Start Single-Stock Futures in 2021 - Bloomberg:
Saudi Arabia’s stock exchange plans to introduce futures contract in single stocks in the first half of next year, according to its chief executive officer.
The start of derivatives market will also help accelerate plans for an offering of shares in the bourse Khalid Abdullah Al Hussan said in an interview to Bloomberg TV. Index futures started to trade in the exchange on Aug. 30.
More from the interview:
Saudi Arabia’s stock exchange plans to introduce futures contract in single stocks in the first half of next year, according to its chief executive officer.
The start of derivatives market will also help accelerate plans for an offering of shares in the bourse Khalid Abdullah Al Hussan said in an interview to Bloomberg TV. Index futures started to trade in the exchange on Aug. 30.
More from the interview:
- Pipeline for IPOs is “very healthy” despite the coronavirus pandemic, with four to five IPOs under review at the moment.
- Average volume of trade increased by about three-fold amid the pandemic, with active participation of retail investors.
- IPO of the stock exchange will be assessed in the first quarter of 2021, and could be accelerated since the launch of the derivatives market has been implemented; “It was a big transformation we wanted to do.”
- Exchange working on increasing products and listings in order to attract more foreign investors.
#Dubai Lifts Veil on Debt, Showing It Owes Much Less Than Thought - Bloomberg
Dubai Lifts Veil on Debt, Showing It Owes Much Less Than Thought - Bloomberg:
Dubai made a rare foray into public bond markets, revealing along the way that its debt burden is now a lot smaller than estimated by analysts only months ago.
A prospectus that accompanied Dubai’s planned offering of bonds and Islamic securities on Monday showed the government’s outstanding direct debt stood at 123.5 billion dirhams ($33.6 billion) as of June 30. That’s about 28% of last year’s gross domestic product, according to the document seen by Bloomberg.
In a report last September, S&P Global Ratings put the government’s direct debt at $65 billion, equal to 56% of 2018 GDP. Bank of America Corp. in May said it reached an estimated 65.6% of GDP in the first quarter of this year, from 47% in 2011, and warned it was “likely to increase further.”
A dearth of timely statistics has made it hard to get an accurate read on the state of Dubai’s economy and finances, and the emirate’s absence from markets hasn’t helped. Unlike Gulf neighbors that increasingly opted to issue public debt in recent years, Dubai has mostly looked to raise capital by means of private placements and bilateral loans. It last sold a sukuk in 2014.
Dubai made a rare foray into public bond markets, revealing along the way that its debt burden is now a lot smaller than estimated by analysts only months ago.
A prospectus that accompanied Dubai’s planned offering of bonds and Islamic securities on Monday showed the government’s outstanding direct debt stood at 123.5 billion dirhams ($33.6 billion) as of June 30. That’s about 28% of last year’s gross domestic product, according to the document seen by Bloomberg.
In a report last September, S&P Global Ratings put the government’s direct debt at $65 billion, equal to 56% of 2018 GDP. Bank of America Corp. in May said it reached an estimated 65.6% of GDP in the first quarter of this year, from 47% in 2011, and warned it was “likely to increase further.”
A dearth of timely statistics has made it hard to get an accurate read on the state of Dubai’s economy and finances, and the emirate’s absence from markets hasn’t helped. Unlike Gulf neighbors that increasingly opted to issue public debt in recent years, Dubai has mostly looked to raise capital by means of private placements and bilateral loans. It last sold a sukuk in 2014.
Oil prices rise 1% as mood on dollar sours - Reuters
Oil prices rise 1% as mood on dollar sours - Reuters:
Oil prices gained on Tuesday, reversing overnight losses, as investors moved into risk assets and stayed away from the safe-haven U.S. dollar which hit multi-year lows.
Brent crude LCOc1 futures climbed 47 cents, or 1%, to $45.75 a barrel at 0635 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 43 cents, or 1%, to $43.04 a barrel.
Both benchmark contracts fell around 1% on Monday on worries about oil oversupply, with global demand stuck below pre-COVID levels.
The dollar =USD was last down 0.04% at 92.146 against a basket of currencies, after hitting its lowest since May 2018 in the wake of the U.S. Federal Reserve’s policy shift on inflation announced last week.
Oil prices gained on Tuesday, reversing overnight losses, as investors moved into risk assets and stayed away from the safe-haven U.S. dollar which hit multi-year lows.
Brent crude LCOc1 futures climbed 47 cents, or 1%, to $45.75 a barrel at 0635 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 43 cents, or 1%, to $43.04 a barrel.
Both benchmark contracts fell around 1% on Monday on worries about oil oversupply, with global demand stuck below pre-COVID levels.
The dollar =USD was last down 0.04% at 92.146 against a basket of currencies, after hitting its lowest since May 2018 in the wake of the U.S. Federal Reserve’s policy shift on inflation announced last week.
MIDEAST STOCKS-Major Gulf markets rise, #Saudi shares lead - Reuters
MIDEAST STOCKS-Major Gulf markets rise, Saudi shares lead - Reuters:
Saudi Arabian shares led gains among largely positive Gulf stock markets on Tuesday, helped by a jump in financial shares.
Saudi Arabia’s benchmark index gained 0.5%, with Al Rajhi Bank rising and Riyad Bank climbing 0.6% and 1.2%, each.
Shares of Emaar The Economic City surged 9.9%, after the developer entered subscription agreement with Public Investment Fund (PIF), the kingdom’s main sovereign wealth fund.
The completion of the agreement is subject to a number of conditions including the novation of the Ministry of Finance loan to PIF.
Dubai’s main share index rose 0.4%, led by a 0.7% gain in sharia-compliant lender Dubai Islamic Bank and 0.5% rise in Emirates NBD Bank.
Saudi Arabian shares led gains among largely positive Gulf stock markets on Tuesday, helped by a jump in financial shares.
Saudi Arabia’s benchmark index gained 0.5%, with Al Rajhi Bank rising and Riyad Bank climbing 0.6% and 1.2%, each.
Shares of Emaar The Economic City surged 9.9%, after the developer entered subscription agreement with Public Investment Fund (PIF), the kingdom’s main sovereign wealth fund.
The completion of the agreement is subject to a number of conditions including the novation of the Ministry of Finance loan to PIF.
Dubai’s main share index rose 0.4%, led by a 0.7% gain in sharia-compliant lender Dubai Islamic Bank and 0.5% rise in Emirates NBD Bank.