UPDATE 8-Oil rises 2% as U.S. presidential election looms | Reuters
Oil prices gained nearly 2% on Monday, shaking off earlier losses, as the United States heads into a contentious U.S. presidential election.
The oil market has been under pressure in recent days, hit by concerns about weaker fuel demand as several European countries went into lockdown to curb the coronavirus. New infections spiked in the United States as well.
Brent crude rose 67 cents, or 1.8%, to $38.61 a barrel by 1:18 p.m. EST (1818 GMT). U.S. West Texas Intermediate rose 68 cents, or 1.9%, to $36.47 a barrel.
Both contracts fell more than $2 earlier in the session.
Monday 2 November 2020
OPEC+ Inches Closer to Delaying Output Hike After Russian Talks - Bloomberg
OPEC+ Inches Closer to Delaying Output Hike After Russian Talks - Bloomberg
OPEC+ inched closer to delaying its January output increase, with Russia actively discussing keeping its current curbs for an extra three months as oil markets weaken.
The producer group, led by Russia and Saudi Arabia, has been dropping hints for weeks that its plan to add almost 2 million barrels a day to oil markets next year may not be such a good idea as the demand recovery falters.
Since President Vladimir Putin first said he was open to a delay, the outlook has worsened. France, Germany and the U.K. are going back into lockdown to curb the spread of the virus, while the U.S. has been seeing record numbers of daily cases.
Oil slumped 10% in London last week, with traders seeing signs of weaker demand, just as a peace deal in Libya floods the market with additional supplies. Crude futures dipped another 5% in the early hours of Monday, dropping to almost $35 a barrel, but recouped those losses as news emerged from Moscow.
OPEC+ inched closer to delaying its January output increase, with Russia actively discussing keeping its current curbs for an extra three months as oil markets weaken.
The producer group, led by Russia and Saudi Arabia, has been dropping hints for weeks that its plan to add almost 2 million barrels a day to oil markets next year may not be such a good idea as the demand recovery falters.
Since President Vladimir Putin first said he was open to a delay, the outlook has worsened. France, Germany and the U.K. are going back into lockdown to curb the spread of the virus, while the U.S. has been seeing record numbers of daily cases.
Oil slumped 10% in London last week, with traders seeing signs of weaker demand, just as a peace deal in Libya floods the market with additional supplies. Crude futures dipped another 5% in the early hours of Monday, dropping to almost $35 a barrel, but recouped those losses as news emerged from Moscow.
OPEC Boosts Output Even as New Virus Wave Sends Oil Crashing - Bloomberg
OPEC Boosts Output Even as New Virus Wave Sends Oil Crashing - Bloomberg
OPEC’s effort to shore up world oil markets during the pandemic is facing a new threat -- from the group’s own rising production.
In the past few months, the resurgent coronavirus has increasingly frustrated the cartel’s attempt to defend crude prices through cutting its output. Oil futures have sunk below $40 a barrel in London to their lowest since May.
But a fresh challenge is emerging from within the organization’s own ranks, just weeks before Saudi Arabia and other oil heavyweights meet to to draw up plans for the year ahead.
OPEC production increased significantly last month, according to a Bloomberg survey. Libya, a member exempt from the pact to restrain production, is reviving exports as its political turmoil eases. Meanwhile, Iraq and Nigeria are once again reneging on pledges to rein in their shipments.
OPEC’s effort to shore up world oil markets during the pandemic is facing a new threat -- from the group’s own rising production.
In the past few months, the resurgent coronavirus has increasingly frustrated the cartel’s attempt to defend crude prices through cutting its output. Oil futures have sunk below $40 a barrel in London to their lowest since May.
But a fresh challenge is emerging from within the organization’s own ranks, just weeks before Saudi Arabia and other oil heavyweights meet to to draw up plans for the year ahead.
OPEC production increased significantly last month, according to a Bloomberg survey. Libya, a member exempt from the pact to restrain production, is reviving exports as its political turmoil eases. Meanwhile, Iraq and Nigeria are once again reneging on pledges to rein in their shipments.
Most major Gulf markets firm up a day after retreat | Reuters
Most major Gulf markets firm up a day after retreat | Reuters
Most major Gulf markets ended higher on Monday, a day after a retreat in the region, with the Saudi index climbing following three sessions of losses, although Qatar traded flat.
Saudi Arabia's benchmark index .TASI advanced 2%, boosted by a 2.6% jump in Al Rajhi Bank 1120.SE and a 1.8% increase in oil giant Saudi Aramco 2222.SE, ahead of its earnings announcement on Tuesday.
Elsewhere, Al Etihad Cooperative Insurance 8170.SE climbed 10% to become the top gainer on the index, after it reported a sharp rise in third-quarter net profit.
Dubai's main share index .DFMGI closed up 0.6%, driven by a 1.3% rise in its biggest lender Emirates NBD Bank ENBD.DU and a 6.7% jump in DAMAC Properties DAMAC.DU.
The Abu Dhabi index .ADI edged up 0.1%, helped by a 1.1% gain in Aldar Properties ALDAR.AD.
The cabinet of the United Arab Emirates plans to spend 26.04 billion dirhams ($7.1 billion) on social projects as part of its 2021 budget, the UAE government tweeted on Monday.
The budget includes 21.3 billion dirhams in government affairs and 3.93 billion dirhams in federal projects, it said.
In Qatar, the index .QSI traded flat, with Commercial Bank COMB.QA falling 2.3%.
Most major Gulf markets ended higher on Monday, a day after a retreat in the region, with the Saudi index climbing following three sessions of losses, although Qatar traded flat.
Saudi Arabia's benchmark index .TASI advanced 2%, boosted by a 2.6% jump in Al Rajhi Bank 1120.SE and a 1.8% increase in oil giant Saudi Aramco 2222.SE, ahead of its earnings announcement on Tuesday.
Elsewhere, Al Etihad Cooperative Insurance 8170.SE climbed 10% to become the top gainer on the index, after it reported a sharp rise in third-quarter net profit.
Dubai's main share index .DFMGI closed up 0.6%, driven by a 1.3% rise in its biggest lender Emirates NBD Bank ENBD.DU and a 6.7% jump in DAMAC Properties DAMAC.DU.
The Abu Dhabi index .ADI edged up 0.1%, helped by a 1.1% gain in Aldar Properties ALDAR.AD.
The cabinet of the United Arab Emirates plans to spend 26.04 billion dirhams ($7.1 billion) on social projects as part of its 2021 budget, the UAE government tweeted on Monday.
The budget includes 21.3 billion dirhams in government affairs and 3.93 billion dirhams in federal projects, it said.
In Qatar, the index .QSI traded flat, with Commercial Bank COMB.QA falling 2.3%.
Dana Gas confirms it has fully redeemed its sukuk | ZAWYA MENA Edition
Dana Gas confirms it has fully redeemed its sukuk | ZAWYA MENA Edition
Sharjah-based natural gas company Dana Gas has confirmed today that it has redeemed its $309 million outstanding sukuk.
The sukuk, which had an original balance of $530 million, was issued on October 31, 2017, with $221 million of repurchases taking place during the last three years.
In a statement to Abu Dhabi Securities Exchange (ADX), Dr Patrick Allman-Ward, CEO of Dana Gas, said: “We are pleased to have settled all our obligations with our Sukuk holders as scheduled and have now significantly reduced our ongoing financing costs.”
The company announced last month that it had signed a $90 million credit facility to pay off the sukuk.
The loan will be repaid following the sale of the company’s Egyptian assets, the statement said.
Sharjah-based natural gas company Dana Gas has confirmed today that it has redeemed its $309 million outstanding sukuk.
The sukuk, which had an original balance of $530 million, was issued on October 31, 2017, with $221 million of repurchases taking place during the last three years.
In a statement to Abu Dhabi Securities Exchange (ADX), Dr Patrick Allman-Ward, CEO of Dana Gas, said: “We are pleased to have settled all our obligations with our Sukuk holders as scheduled and have now significantly reduced our ongoing financing costs.”
The company announced last month that it had signed a $90 million credit facility to pay off the sukuk.
The loan will be repaid following the sale of the company’s Egyptian assets, the statement said.
#Dubai’s Alcazar Energy Weighs Sale, Green Bond as Part of Review - Bloomberg
Dubai’s Alcazar Energy Weighs Sale, Green Bond as Part of Review - Bloomberg
Dubai-based Alcazar Energy Ltd. has resumed a strategic review that could culminate in a sale of the company at an enterprise value of about $1 billion, according to people with knowledge of the matter.
The renewable-energy developer has been working with Standard Chartered Plc and hopes to complete the process during the first half of 2021, the people said, asking not to be identified as the information is private.
The company had begun reviewing its options at the start of the year but those plans were put on hold as a result of the coronavirus pandemic, the people said. Alcazar had then attracted interest from local, regional and international players, both trade and private equity firms.
A representative for Alcazar confirmed the news, but said the process is at an early stage and no decision has yet been taken on any potential options.
Among other strategic options being considered by the company is a green bond, which the people said has already received strong initial expressions of interest from potential investors looking to fund environmental projects. The sale of such securities would rank as one of the largest private renewable energy borrowings in the region, they said.
Alcazar is one of the Middle East’s largest private developers and operators of renewable power projects, and its shareholders include the World Bank’s International Finance Corporation, Mubadala Infrastructure Partners and several regional family offices.
The Middle East is home to the world’s biggest oil exporters but governments are increasingly pushing for the development of alternative energy sources to meet growing demand. Alcazar has built and fully owns a portfolio of seven wind and solar projects across Jordan and Egypt.
Dubai-based Alcazar Energy Ltd. has resumed a strategic review that could culminate in a sale of the company at an enterprise value of about $1 billion, according to people with knowledge of the matter.
The renewable-energy developer has been working with Standard Chartered Plc and hopes to complete the process during the first half of 2021, the people said, asking not to be identified as the information is private.
The company had begun reviewing its options at the start of the year but those plans were put on hold as a result of the coronavirus pandemic, the people said. Alcazar had then attracted interest from local, regional and international players, both trade and private equity firms.
A representative for Alcazar confirmed the news, but said the process is at an early stage and no decision has yet been taken on any potential options.
Among other strategic options being considered by the company is a green bond, which the people said has already received strong initial expressions of interest from potential investors looking to fund environmental projects. The sale of such securities would rank as one of the largest private renewable energy borrowings in the region, they said.
Alcazar is one of the Middle East’s largest private developers and operators of renewable power projects, and its shareholders include the World Bank’s International Finance Corporation, Mubadala Infrastructure Partners and several regional family offices.
The Middle East is home to the world’s biggest oil exporters but governments are increasingly pushing for the development of alternative energy sources to meet growing demand. Alcazar has built and fully owns a portfolio of seven wind and solar projects across Jordan and Egypt.
Stock Market Today: U.S. Futures Climb as Oil Slides to Five-Month Low: Markets Wrap November 2, 2020 - Bloomberg
Stock Market Today: U.S. Futures Climb as Oil Slides to Five-Month Low: Markets Wrap November 2, 2020 - Bloomberg
Commodities
- West Texas Intermediate crude fell 2.7% to $34.75 a barrel.
- Brent crude dipped 2.2% to $37.04 a barrel.
- Gold strengthened 0.5% to $1,888.40 an ounce.
#Oman to Implement Unprecedented Measures to Curb Budget Deficit - Bloomberg
Oman to Implement Unprecedented Measures to Curb Budget Deficit - Bloomberg
Cash-strapped Oman plans to take a step unheard of in the Persian Gulf region: It’s going to start taxing the income of wealthy individuals beginning in 2022, as part of a broader program to tackle a budget deficit that’s ballooned due to low oil prices and the coronavirus pandemic.
By reducing government spending while spurring investments, the plan is projected to bring the budget deficit -- estimated to reach nearly 19% of gross domestic product in 2020 by the International Monetary Fund -- to 1.7% by 2024, the Ministry of Finance said in an emailed statement on Sunday. Revenue from the income tax will be used to fund social programs, it said.
The tax would apply to high-income individuals, but the plan -- whose implementation is still currently being studied -- doesn’t specify income brackets.
Cash-strapped Oman plans to take a step unheard of in the Persian Gulf region: It’s going to start taxing the income of wealthy individuals beginning in 2022, as part of a broader program to tackle a budget deficit that’s ballooned due to low oil prices and the coronavirus pandemic.
By reducing government spending while spurring investments, the plan is projected to bring the budget deficit -- estimated to reach nearly 19% of gross domestic product in 2020 by the International Monetary Fund -- to 1.7% by 2024, the Ministry of Finance said in an emailed statement on Sunday. Revenue from the income tax will be used to fund social programs, it said.
| WHAT BLOOMBERG ECONOMICS SAYS... |
|---|
“Oman needed urgent action and the plan is a start. Some of the goals are ambitious to the point of unrealism such as the narrowing of the budget deficit to 1.7% of GDP in 2024 from 15.8% this year. Others could disrupt the political economy of rentierism such as the possible introduction of income taxes, although it’s not clear if this will apply only to expatriates or to citizens as well.” -- Ziad Daoud, chief emerging markets economist |
#AbuDhabi Poured $22 Billion Into Etihad During Pre-Pandemic Era - Bloomberg
Abu Dhabi Poured $22 Billion Into Etihad During Pre-Pandemic Era - Bloomberg
Abu Dhabi’s government has stumped up around $22 billion for Etihad Airways since it began flying in 2003, underscoring the ambition of the oil-rich emirate to turn its national carrier into a global player before the effort faltered in recent years.
The heavy investments, made before Covid-19 lockdowns strangled demand for air travel, were likely a prelude to support for the carrier this year, given the sector’s dire need for cash during the pandemic.
The extent of assistance could also return the spotlight to an agreement reached two years ago that settled a long-running dispute over government aid in the region, which pitted the largest U.S. airlines against rivals in Qatar and the United Arab Emirates. American carriers were pushing for a crackdown on what they described as more than $50 billion in unfair subsidies for Qatar Airways, Emirates and Etihad.
The airline revealed the previously undisclosed cash injections during recent bond investor meetings ahead of a sukuk sale, saying they were carried out until the end of 2019, according to two people familiar with the discussions. It wasn’t immediately clear if payments were made after 2018, when the UAE agreed to increase financial transparency in its airlines as part of a deal with the U.S.
Abu Dhabi’s government has stumped up around $22 billion for Etihad Airways since it began flying in 2003, underscoring the ambition of the oil-rich emirate to turn its national carrier into a global player before the effort faltered in recent years.
The heavy investments, made before Covid-19 lockdowns strangled demand for air travel, were likely a prelude to support for the carrier this year, given the sector’s dire need for cash during the pandemic.
The extent of assistance could also return the spotlight to an agreement reached two years ago that settled a long-running dispute over government aid in the region, which pitted the largest U.S. airlines against rivals in Qatar and the United Arab Emirates. American carriers were pushing for a crackdown on what they described as more than $50 billion in unfair subsidies for Qatar Airways, Emirates and Etihad.
The airline revealed the previously undisclosed cash injections during recent bond investor meetings ahead of a sukuk sale, saying they were carried out until the end of 2019, according to two people familiar with the discussions. It wasn’t immediately clear if payments were made after 2018, when the UAE agreed to increase financial transparency in its airlines as part of a deal with the U.S.
#Dubai Islamic Bank completes integration of Noor Bank | ZAWYA MENA Edition
Dubai Islamic Bank completes integration of Noor Bank | ZAWYA MENA Edition
Dubai Islamic Bank (DIB) has completed the integration of Noor Bank with the successful migration of all banking relationships, enhancing its position as one of the largest Islamic banks in the world with total assets exceeding AED 300 billion ($81.7 billion).
The entire integration was achieved in record time despite unfavorable circumstances, as majority of the teams involved worked remotely due to COVID-19 restrictions, the largest Islamic bank in the UAE, informed Dubai Financial Market.
"A key element of the project was the engagement with the market, customers as well regulators that allowed us to effectively manage any situation that could unfold, and to keep our customers abreast of the same. The transition was smooth and the project concluded successfully and all service restored prior to scheduled resumption with minimal customer impact," Group Chief Executive Officer, Dr. Adnan Chilwan said.
It is not yet clear how many jobs have been lost in the integration process. However, Reuters reported in February that DIB could slash more than half the workforce with a planned 500-plus job cuts at Noor Bank as part of cost cuts across both lenders.
Dubai Islamic Bank (DIB) has completed the integration of Noor Bank with the successful migration of all banking relationships, enhancing its position as one of the largest Islamic banks in the world with total assets exceeding AED 300 billion ($81.7 billion).
The entire integration was achieved in record time despite unfavorable circumstances, as majority of the teams involved worked remotely due to COVID-19 restrictions, the largest Islamic bank in the UAE, informed Dubai Financial Market.
"A key element of the project was the engagement with the market, customers as well regulators that allowed us to effectively manage any situation that could unfold, and to keep our customers abreast of the same. The transition was smooth and the project concluded successfully and all service restored prior to scheduled resumption with minimal customer impact," Group Chief Executive Officer, Dr. Adnan Chilwan said.
It is not yet clear how many jobs have been lost in the integration process. However, Reuters reported in February that DIB could slash more than half the workforce with a planned 500-plus job cuts at Noor Bank as part of cost cuts across both lenders.
#AbuDhabi's Mubadala takes stake in local AI company G42 | Reuters
Abu Dhabi's Mubadala takes stake in local AI company G42 | Reuters
Abu Dhabi state fund Mubadala said on Monday it has taken a stake in a local artificial intelligence company Group 42 (G42) after transferring ownership of two information technology companies it owns to the firm.
The size of the stake was not disclosed in the Mubadala statement announcing Injazat and Khazna were to be transferred to G42, which is also involved in cloud computing.
Injazat is a cloud and cyber security business, while Khazna Data Centers is a commercial wholesale data centre provider.
G42 is currently working with a Chinese state-owned pharmaceutical company on a late stage trial of COVID-19 vaccine in United Arab Emirates and elsewhere in the Middle East.
Abu Dhabi state fund Mubadala said on Monday it has taken a stake in a local artificial intelligence company Group 42 (G42) after transferring ownership of two information technology companies it owns to the firm.
The size of the stake was not disclosed in the Mubadala statement announcing Injazat and Khazna were to be transferred to G42, which is also involved in cloud computing.
Injazat is a cloud and cyber security business, while Khazna Data Centers is a commercial wholesale data centre provider.
G42 is currently working with a Chinese state-owned pharmaceutical company on a late stage trial of COVID-19 vaccine in United Arab Emirates and elsewhere in the Middle East.
Most major Gulf markets steady in early trade | Reuters
Most major Gulf markets steady in early trade | Reuters
Most major Gulf markets rose in early trade on Monday, a day after a retreat in the region, with financial shares buoying the Saudi index, although Qatar bucked the trend to traded lower.
Saudi Arabia's benchmark index .TASI rose 0.6%, with Banque Saudi Fransi 1050.SE advancing 2% and Saudi Electricity 5110.SE gaining 2.2%.
Elsewhere, Al Etihad Cooperative Insurance 8170.SE surged 10% after it reported a sharp rise in third-quarter net profit.
Dubai's main share index .DFMGI added 0.6%, led by a 1.4% rise in its largest lender Emirates NBD Bank ENBD.DU and a 4.8% jump in DAMAC Properties DAMAC.DU.
The Abu Dhabi index .ADI edged up 0.2%, supported by a 0.5% rise in telecoms firm Etisalat ETISALAT.AD.
In Qatar, the index .QSI eased 0.4%, with petrochemical firm Industries Qatar IQCD.QA falling 1.3% and Barwa Real Estate Company BRES.QA retreating 1.5%.
Most major Gulf markets rose in early trade on Monday, a day after a retreat in the region, with financial shares buoying the Saudi index, although Qatar bucked the trend to traded lower.
Saudi Arabia's benchmark index .TASI rose 0.6%, with Banque Saudi Fransi 1050.SE advancing 2% and Saudi Electricity 5110.SE gaining 2.2%.
Elsewhere, Al Etihad Cooperative Insurance 8170.SE surged 10% after it reported a sharp rise in third-quarter net profit.
Dubai's main share index .DFMGI added 0.6%, led by a 1.4% rise in its largest lender Emirates NBD Bank ENBD.DU and a 4.8% jump in DAMAC Properties DAMAC.DU.
The Abu Dhabi index .ADI edged up 0.2%, supported by a 0.5% rise in telecoms firm Etisalat ETISALAT.AD.
In Qatar, the index .QSI eased 0.4%, with petrochemical firm Industries Qatar IQCD.QA falling 1.3% and Barwa Real Estate Company BRES.QA retreating 1.5%.
Oil falls 4% on fuel demand concerns as Europe widens COVID-19 lockdowns | Reuters
Oil falls 4% on fuel demand concerns as Europe widens COVID-19 lockdowns | Reuters
Oil prices fell 4% on Monday on worries that widening coronavirus lockdowns in Europe would weaken fuel demand and amid concerns about turbulence over this week’s U.S. presidential election.
Brent crude futures LCOc1 for January dropped $1.49, or 3.9%, to $36.45 a barrel by 0745 GMT, while U.S. West Texas Intermediate (WTI) futures CLc1 fell $1.58, or 4.4%, to $34.21.
Brent fell as much as 5.8% and WTI as much as 6% in early trade, hitting their lowest levels since May.
Countries across Europe have reimposed lockdown measures to try to slow COVID-19 infection rates that have accelerated in the past month.
Global oil trading companies expect further demand destruction although estimates differ. Vitol sees winter demand at 96 million barrels per day (bpd) while Trafigura expects demand to fall to 92 million bpd or below.
Oil prices fell 4% on Monday on worries that widening coronavirus lockdowns in Europe would weaken fuel demand and amid concerns about turbulence over this week’s U.S. presidential election.
Brent crude futures LCOc1 for January dropped $1.49, or 3.9%, to $36.45 a barrel by 0745 GMT, while U.S. West Texas Intermediate (WTI) futures CLc1 fell $1.58, or 4.4%, to $34.21.
Brent fell as much as 5.8% and WTI as much as 6% in early trade, hitting their lowest levels since May.
Countries across Europe have reimposed lockdown measures to try to slow COVID-19 infection rates that have accelerated in the past month.
Global oil trading companies expect further demand destruction although estimates differ. Vitol sees winter demand at 96 million barrels per day (bpd) while Trafigura expects demand to fall to 92 million bpd or below.