Oil soars 8% on promising COVID-19 vaccine results | Reuters

Oil soars 8% on promising COVID-19 vaccine results | Reuters

Oil surged about 8% on Monday, its biggest daily gain in more five months, after Pfizer announced promising results for its COVID-19 vaccine.

Brent crude LCOc1 settled at $42.40 a barrel, up $2.95, or 7.48%, while U.S. West Texas Intermediate crude CLc1 settled at $40.29 a barrel, rising $3.15, or 8.48%.

Oil markets also rose after Saudi Arabia suggested it and other oil producers could adjust its current supply-cut pact, perhaps taking more barrels off the market if demand slumps in the winter as infections rise and before the vaccine is widely available.

Fuel demand is down worldwide as a result of the pandemic, and with infections now surpassing 50 million globally, numerous nations, especially in Europe, are reimposing lockdowns to slow the virus’s spread. The vaccine news gave traders hope that the pandemic could be tamped down next year, which would help people resume normal life, boosting demand.

Oil traders unwind bearish bets as vaccine hopes fuel optimism | Reuters

Oil traders unwind bearish bets as vaccine hopes fuel optimism | Reuters

Oil traders rushed to unwind a bevy of bearish bets after Pfizer announced promising results for its COVID-19 vaccine, shaking up energy markets that were primed for demand to sink into the winter on increased lockdowns and rising coronavirus infections.

Crude prices plunged this year as global demand was crushed due to travel restrictions to curb the spread of COVID-19. Coming into this week, investors have been betting heavily on further weakness in prices as worldwide infections surpassed 50 million and numerous countries re-imposed lockdowns to slow the virus’s spread.

That changed on Monday morning, when Pfizer said its vaccine was more than 90% effective in preventing COVID-19, sending equity and commodities markets surging. Brent crude surged by 7% as those holding short positions rushed to reverse them to hold down losses, with more front-month contracts traded Monday than any day since April.

“More longs are coming in but it’s a mix of short covering too for sure,” a trading source at a bank said.

Rate of #Dubai property price declines slows to 16-month low - Arabianbusiness

Rate of Dubai property price declines slows to 16-month low - Arabianbusiness

The rate of falling Dubai property prices slowed to its lowest mark for 16 months in October, signalling the possibility of values nearing their bottom following years of declines.

According to new research from consultants ValuStrat, residential values in the emirate dipped by just 0.7 percent, the lowest rate since June 2019.

It said this rate of decline has continued to decelerate from 1.9 percent during the April-June lockdown restrictions.

Annually, residential capital values declined 14.4 percent, it added.

ValuStrat said citywide prices are yet to stabilise, as the downward trend continued, albeit, at a slower pace.

#Oman Seeks to Raise Billions by Leveraging Biggest Oil Block - Bloomberg

Oman Seeks to Raise Billions by Leveraging Biggest Oil Block - Bloomberg

Oman is seeking to raise money off the back of its largest oil block, as the cash-strapped Gulf nation looks for new ways to tame its budget deficit and steady a reeling economy.

The sultanate is transferring its 60% stake in Block 6, which has a production capacity of 650,000 barrels a day, from Petroleum Development Oman to a new company, according to three people familiar with the matter. The company would then tap international financial markets, allowing Oman to raise debt without putting it on the government’s books, they said, asking not to be identified because they’re not authorized to speak to media.

The new firm may try to sell around $3 billion of bonds in the first half of next year, one of the people said. JPMorgan Chase & Co. is advising the government, the person said.

PDO and JPMorgan declined to comment. Spokespeople for Oman’s ministries of energy and finance didn’t immediately respond to emails requesting comment.

Etihad warns pilots of immediate job cuts as pandemic crisis continues | Reuters

Etihad warns pilots of immediate job cuts as pandemic crisis continues | Reuters

Abu Dhabi’s Etihad Airways has warned pilots of immediate compulsory layoffs this week as demand for air travel fails to recover as quickly as expected from the coronavirus crisis.

The warning in a letter to pilots, seen by Reuters, comes a day after the state airline said it was pushing on with plans to shrink to a mid-sized carrier.

“The hard reality is that, despite all hopes, our industry is simply not recovering quick enough and we will continue to be a much smaller airline for some time,” pilots were told in an email distributed on Monday.

“Based on all these factors, it has become clear that we have no choice but to further reduce our workforce.”

An Etihad spokeswoman did not immediately respond to an emailed request for comment.

Mideast Stocks: #Saudi index sees biggest daily rise in over six months | ZAWYA MENA Edition

Mideast Stocks: Saudi index sees biggest daily rise in over six months | ZAWYA MENA Edition

Most stock markets in the Middle East ended higher on Monday, mirroring a buoyant day in oil prices and global stocks, with the Saudi index leading the gains.

Brent crude rose $3.33, or 8.4%, to $42.78 a barrel by 1216 GMT, after Pfizer said its COVID-19 vaccine was very effective and Saudi Arabia said an OPEC+ deal on output cuts could be adjusted to offset rising supply and weak demand.

Pfizer Inc said on Monday its experimental COVID-19 vaccine was more than 90% effective, based on initial data from a large study.

Saudi Arabia's benchmark index advanced 2.5%, its biggest intraday gain since April, led by a 2% rise in Al Rajhi Bank and a 4.4% leap in petrochemical firm Saudi Basic Industries.

The kingdom's Energy Minister Prince Abdulaziz bin Salman said the OPEC+ deal on oil output cuts could be adjusted as it has been in the past if there is consensus among members of the group.

Dubai's main share index climbed 1.8%, led by a 6% jump in blue-chip developer Emaar Properties and a 3.1% increase in Emirates NBD Bank.

The Abu Dhabi index gained 0.8%, with the United Arab Emirates' largest lender, First Abu Dhabi Bank closing up 1.4%.

In Qatar, the index added 1.9%, as all the stocks were in positive territory except one, with petrochemical maker Industries Qatar advancing 6.8%.

The Kuwaiti index increased 1.5%, with Kuwait Finance House rising 1.8%.

The anticipated addition of Kuwait to the MSCI Emerging Market index at the end of November is expected to positively affect the flow of foreign capital in Boursa Kuwait, Kamco Invest said in a research note on Thursday.

Singapore's Pavilion inks first long-term LNG deal with #Qatar | Reuters

Singapore's Pavilion inks first long-term LNG deal with Qatar | Reuters

Singapore’s Pavilion Energy said on Monday it inked a deal with Qatar Petroleum’s trading unit to buy up to 1.8 million tonnes per year of liquefied natural gas (LNG) for 10 years from 2023.

Each cargo delivered to Singapore under this agreement will come with a statement of greenhouse gas emissions from wellhead to discharge port, Pavilion Energy said in a statement.

Pavilion Energy, owned by Singapore state-owned investment company Temasek Holdings, signed the deal with Qatar Petroleum Trading, a subsidiary of Qatar Petroleum.

Qatar, which plans to increase its LNG production to 126 million tonnes a year by 2027 from 77 million currently, has been trying to secure buyers for the extra volumes.

Energy leaders leave door open to more cuts as virus spikes

Energy leaders leave door open to more cuts as virus spikes

Saudi Arabia’s energy minister said Monday that global energy producers have the ability to tweak an agreement on production cuts that could be extended through the end of 2022, signaling the anticipation of continued weakened demand for oil as the coronavirus pandemic peaks again in Europe and the United States

“OPEC has been and continues to be taking a proactive role,” said Prince Abdulaziz bin Salman during the Abu Dhabi-sponsored ADIPEC energy conference, which is taking place virtually this year.

“We’re keeping our flexibility in our hands,” Prince Abdulaziz said, without committing specifically to how far into the future cuts of 7.7 million barrels of oil a day or more could go on for.

“I don’t put policy lines ahead of reaching out to everybody,” he said.

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

#SaudiArabia Outlook Cut to Negative by Fitch on Oil, Virus - Bloomberg

Saudi Arabia Outlook Cut to Negative by Fitch on Oil, Virus - Bloomberg

Saudi Arabia’s outlook was cut to negative from stable by Fitch Ratings as the coronavirus pandemic and lower oil prices clobber the kingdom’s finances.

A negative outlook means the next move on the credit rating may be a downgrade to the lowest level since Fitch began assessing the kingdom in 2004. The sovereign is still at A, its sixth highest rating, and on par with Japan and Iceland, according to a statement on Monday.

Fitch last downgraded Saudi Arabia in 2019 and has its assessment one notch above S&P Global Ratings and one level lower than Moody’s Investors Service.

The revision for Saudi Arabia “reflects the continued weakening of its fiscal and external balance sheets” that’s been “accelerated by the coronavirus pandemic and lower oil prices, despite the government’s strong commitment to fiscal consolidation,” said Fitch analysts including Krisjanis Krustins.

Oil-Rich #AbuDhabi to Start Trading in Crude Futures From March - Bloomberg

Oil-Rich Abu Dhabi to Start Trading in Crude Futures From March - Bloomberg

Oil-rich Abu Dhabi will open a commodities exchange in March to rival those of Middle Eastern neighbors and allow investors to trade its crude using futures contracts for the first time.

The ICE Futures Abu Dhabi exchange will open on March 29 and offer contracts based on the emirate’s flagship Murban crude grade, pending regulatory approvals, Intercontinental Exchange Inc. said in a statement Monday. The Atlanta-based operator of trading and clearing platforms is setting up the exchange with government producer Abu Dhabi National Oil Co. and other oil suppliers.

Abu Dhabi is the capital of and holds most of the oil in the United Arab Emirates, the third-largest producer in OPEC. Murban crude, pumped from onshore fields, makes up more than half the sheikhdom’s crude output, now at around 2.6 million barrels daily.

By selling through futures, Abu Dhabi will let the market determine the price of its oil. It’s a significant change for a producer that until this year fixed its pricing retroactively, effectively telling buyers the cost of barrels purchased a month earlier.

#Dubai Business Conditions Sour, Reversing Third-Quarter Gains - Bloomberg

Dubai Business Conditions Sour, Reversing Third-Quarter Gains - Bloomberg

Business conditions in Dubai dropped to the lowest levels since May amid a spike in coronavirus cases that threatens the city’s economic recovery.

Non-oil private sector activity in the Middle East’s business hub slowed from levels seen during the third quarter of the year, according to IHS Markit. Its Purchasing Managers’ Index dipped to 49.9 last month from 51.5 in September, falling below the 50 mark that separates contraction from growth.

“After a robust quarter of growth for the Dubai non-oil economy, October data pointed to a more subdued picture as overall business conditions were left broadly stable,” said David Owen, economist at IHS Markit. “Businesses also showed weaker optimism towards the economic recovery from Covid-19, amid reports of weak demand and uncertainty about the future impact of the pandemic on activity and jobs.”

#Kuwait Stocks’ Big Moment Lacks the Usual Pre-Upgrade Rally - Bloomberg

Kuwait Stocks’ Big Moment Lacks the Usual Pre-Upgrade Rally - Bloomberg

Kuwaiti companies will enter the popular emerging-market stocks benchmark compiled by MSCI Inc. this month. But you would barely know it looking at the main local equities index, which has failed to stage the customary rally before such an elevation in status.

MSCI is due to unveil its semi-annual index review on Tuesday, disclosing Kuwaiti shares to be added to the MSCI Emerging Markets Index that is widely followed by fund managers. The Gulf state’s inclusion, initially expected in May, was postponed due to operational difficulties associated with the coronavirus outbreak.

Typically, investors rush to buy shares in soon-to-be upgraded markets the moment their pending promotion is announced, for a head start on the flood of money from passive funds -- a window that usually lasts about a year. That’s been the case in other countries in the region, such as the United Arab Emirates, Qatar and Saudi Arabia.

But coronavirus restrictions, the slump in oil prices as global demand plunged and the blow this dealt to Kuwait’s economy sent a chill through the stock market. The Premier Market index, down 12% for the year, is trading below the level seen before MSCI first announced its intentions to raise the country from its frontier markets group. The gauge climbed 0.5% on Monday, versus a 1.2% advance for MSCI Emerging Markets.

Top #AbuDhabi Islamic Bank Is Undeterred by Damage From Pandemic - Bloomberg

Top Abu Dhabi Islamic Bank Is Undeterred by Damage From Pandemic - Bloomberg

The biggest Islamic bank in Abu Dhabi is striking an upbeat tone despite emerging from the global pandemic with one of the highest shares of bad loans among its peers.

Abu Dhabi Islamic Bank PJSC came out “fairly undamaged” from a program of loan deferrals rolled out as part of the UAE central bank’s relief effort during the outbreak, according to Mohamed Abdel Bary, the lender’s group chief financial officer. Known as ADIB, the bank is seeing “no significant pressure” on clients as they weather the pandemic, he said in an interview.

The regulatory measures bought time for banks by freeing up liquidity and ensuring access to funding as the UAE economy came under strain from the twin shock of the coronavirus and lower oil prices. But with the program set to expire at the end of the year, local lenders have been setting aside more money in preparation for the likely deterioration in asset quality.

In the case of ADIB, non-performing loans already rose to almost 9% of the total last quarter, according to Bloomberg Intelligence, the second-highest among banks in the region that have published financial statements for the period. That’s up from 8.4% in the previous three months and compares with an average of 7.5% for UAE-based banks in the second quarter, according to the International Monetary Fund.

Top #UAE banks report lower Q3 profits on higher impairments | ZAWYA MENA Edition

Top UAE banks report lower Q3 profits on higher impairments | ZAWYA MENA Edition

Challenging macroeconomic conditions—low interest rates leading to repricing of portfolios, falling oil price and disruptions to economic activities due to COVID-19 lockdowns—led top UAE banks to report lower net profit in Q3 2020.

The net profit of four largest banks—First Abu Dhabi Bank (FAB), Emirates NBD, Abu Dhabi Commercial Bank (ADCB) and Dubai Islamic Bank (DIB)—fell nearly 26 percent to 5.60 billion dirhams in Q3 compared with the same period last year.

However, the performances were well within guidelines and market expectations.

“Despite lower profitability, the banks, generally speaking, were able to keep within market estimates in terms of net income,” Asad Ahmed, managing director at Alvarez and Marsal, told Zawya.

Mohamed Damak, primary credit analyst at S&P, told Zawya that “the decline in profit was part of our base case scenario because of lower lending growth, a drop in interest margin as a result of lower interest rates, and higher cost of risk.”

#Dubai non-oil business conditions broadly unchanged; rise in activity expected | ZAWYA MENA Edition

Dubai non-oil business conditions broadly unchanged; rise in activity expected | ZAWYA MENA Edition

Dubai's non-oil private sector registered the slowest output growth in five months according to the October PMI survey, signalling a setback for the economic recovery.

At 49.9 in October, the seasonally adjusted IHS Markit Dubai Purchasing Managers' Index (PMI) indicated that business conditions across the non-oil private sector were broadly unchanged over the month. Falling from 51.5 in September, the reading also signalled an end to the run of growth observed throughout the third quarter of the year.

Firms saw only a slight rise in new work, while job shedding quickened from September but remained softer than in the prior six months.

Most notably, the degree of positive sentiment regarding the year-ahead outlook for activity fell to its lowest since this index began in April 2012, IHS Markit said.

Businesses in Dubai reported the weakest rise in activity in the last five months of expansion during October, which was in part due to a softer - and only marginal - upturn in new orders.

Israeli ad-tech firm IronSource plans IPO for first-half next year - newspaper | Reuters

Israeli ad-tech firm IronSource plans IPO for first-half next year - newspaper | Reuters

Advertising technology firm IronSource, one of Israel’s most valuable private tech companies, plans an initial share offering on Nasdaq in the first half of 2021, the Calcalist financial daily reported on Monday, citing unidentified sources.

It said IronSource is targeting a valuation of between $7 billion and $8 billion and that Goldman Sachs is expected to be the underwriter. Such an offering could become the largest ever by an Israeli company on Nasdaq.

IronSource, founded in 2010, declined to comment.

Last October, British private equity firm CVC bought a minority stake in IronSource for more than $400 million. Calcalist said CVC’s investment amounted to a nearly 26% stake and valued the company at $1.75 billion.

ADIA hires another AI specialist as it boosts quantitative research team | Reuters

ADIA hires another AI specialist as it boosts quantitative research team | Reuters: 

Abu Dhabi Investment Authority (ADIA), UAE’s biggest sovereign wealth fund, has hired Stephen Malinak, an artificial intelligence expert, as global head of quantitative research and development, the state fund said.

The move comes after ADIA in September hired former Cornell University professor Marcos Lopez de Prado to join a newly created investment group within ADIA’s strategy and planning department to apply a systematic, science-based approach to investing.

Malinak was former chief data and analytics officer at Truvalue Labs, a San Francisco-based technology company, which focuses on advances in natural language processing, cognitive computing and machine learning.

ADIA and Mubadala Investmet Co, the two biggest UAE state funds, have stepped up investment in technology and AI, as they seek new areas of growth.

Citi cuts 2021 oil price outlook on COVID-19 concerns | Reuters

Citi cuts 2021 oil price outlook on COVID-19 concerns | Reuters

Oil prices rose more than 2% on Monday, with Brent futures topping $40 a barrel, after Joe Biden clinched the U.S. presidency and buoyed risk appetites, offsetting worries about the impact on demand from the worsening coronavirus pandemic.

Brent crude futures LCOc1 for January climbed 94 cents, or 2.4%, to $40.39 a barrel by 0710 GMT, while U.S. West Texas Intermediate crude CLc1 for December was at $38.07, up 93 cents, or 2.5%.

Oil recovered from a 4% decline on Friday, rising along with other financial markets after Biden emerged as the winner in the U.S. presidential race on Sunday. Meanwhile, the dollar weakened, boosting commodities priced in the greenback as they became more affordable for investors holding other currencies.

“Trading this morning has a risk-on flavour, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.

Brent crude tops $40 as Biden's win buoys risk-taking | Reuters

Brent crude tops $40 as Biden's win buoys risk-taking | Reuters

Oil prices rose more than 2% on Monday, with Brent futures topping $40 a barrel, after Joe Biden clinched the U.S. presidency and buoyed risk appetites, offsetting worries about the impact on demand from the worsening coronavirus pandemic.

Brent crude futures LCOc1 for January climbed 94 cents, or 2.4%, to $40.39 a barrel by 0710 GMT, while U.S. West Texas Intermediate crude CLc1 for December was at $38.07, up 93 cents, or 2.5%.

Oil recovered from a 4% decline on Friday, rising along with other financial markets after Biden emerged as the winner in the U.S. presidential race on Sunday. Meanwhile, the dollar weakened, boosting commodities priced in the greenback as they became more affordable for investors holding other currencies.

“Trading this morning has a risk-on flavour, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.

MIDEAST STOCKS- #Kuwait bourse gains in early trade, other Gulf markets firm | Nasdaq

MIDEAST STOCKS-Kuwait bourse gains in early trade, other Gulf markets firm | Nasdaq

Kuwait's stock market registered moderate gains early on Monday as investors awaited results from global index provider MSCI's semi-annual review due on Tuesday, while gains in financial and petrochemical shares boosted the Saudi index.

In Kuwait, the index .BKP added 0.6%, on track to extend gains for a third straight session, with Kuwait Finance House KFH.KW rising 0.8% and telecoms firm Zain Kuwait ZAIN.KW up 1%.

The anticipated addition of Kuwait to the MSCI Emerging Market index at the end of November is expected to positively affect the flow of foreign capital in Boursa Kuwait, Kamco Invest said in a research note on Thursday.

The investment group believes that passive flows are expected to reach $2.9 billion in 2020, slightly lower than their previous estimate of $3.1 billion.

Saudi Arabia's benchmark index .TASI gained 0.9%, buoyed by a 0.7% rise in Al Rajhi Bank 1120.SE and a 1.3% increase in petrochemical firm Saudi Basic Industries 2010.SE.

Dubai's main share index .DFMGI edged up 0.1%, helped by a 1.5% gain in blue-chip developer Emaar Properties EMAR.DU and a 0.5% rise in sharia-compliant lender Dubai Islamic Bank DISB.DU.

The Abu Dhabi index .ADI firmed 0.4%, as the country's largest lender, First Abu Dhabi Bank FAB.AD, traded 0.9% higher.

In Qatar, the index .QSI rose 0.5%, with petrochemical maker Industries Qatar IQCD.QAadvancing 1.5%.