Brent touches $45/bbl on vaccine hopes and U.S. crude drawdown | Reuters
Global oil benchmark Brent rose on Wednesday, briefly touching a more than two-month high above $45 a barrel on hopes of a COVID-19 vaccine that could boost demand and later pulling back as concerns about rising cases overtook bullish news.
Brent settled up 19 cents, or 0.4%, at $43.80 a barrel, after earlier trading at a session peak of $45.30 - the first time it has cleared the $45 threshold since early September.
U.S. West Texas Intermediate (WTI) crude settled up 9 cents at $41.45, after setting a session high of $43.06.
Both Brent and WTI prices are up about 11% this week after initial trial data showed the experimental COVID-19 vaccine being developed by Pfizer Inc PFE.N and Germany's BioNTech 22UAy.DE was 90% effective.
Still, concerns about rising cases weighed on the market.
Wednesday 11 November 2020
#Saudi Prince Alwaleed's Kingdom Holding posts quarterly loss | Reuters
Saudi Prince Alwaleed's Kingdom Holding posts quarterly loss | Reuters
Kingdom Holding 4280.SE, a company controlled by Saudi Arabia's prince Alwaleed bin Talal, suffered a quarterly loss, compared to a net profit a year earlier, as earnings from its hotel business dipped due to the coronavirus outbreak.
Kingdom, which owns a stake in Accor ACCP.PA and has investments in hotels run by Four Seasons Hotels and Resorts, posted a net loss of 193 million riyals ($52 million) in the quarter that ended Sept. 30, compared to a net profit of 86.8 million riyals a year earlier.
Analysts say lockdowns worldwide and the reluctance of people to travel have cut tourist numbers in the group’s hotels, hitting revenues hard.
Kingdom also cited a fall in earnings from equity-accounted investments and a decrease in hotels and other operating revenue.
Kingdom Holding 4280.SE, a company controlled by Saudi Arabia's prince Alwaleed bin Talal, suffered a quarterly loss, compared to a net profit a year earlier, as earnings from its hotel business dipped due to the coronavirus outbreak.
Kingdom, which owns a stake in Accor ACCP.PA and has investments in hotels run by Four Seasons Hotels and Resorts, posted a net loss of 193 million riyals ($52 million) in the quarter that ended Sept. 30, compared to a net profit of 86.8 million riyals a year earlier.
Analysts say lockdowns worldwide and the reluctance of people to travel have cut tourist numbers in the group’s hotels, hitting revenues hard.
Kingdom also cited a fall in earnings from equity-accounted investments and a decrease in hotels and other operating revenue.
MIDEAST STOCKS-Major Gulf markets rise on higher crude prices; Kuwait bucks the trend | Nasdaq
MIDEAST STOCKS-Major Gulf markets rise on higher crude prices; Kuwait bucks the trend | Nasdaq
Most major Gulf markets gained on Wednesday as crude prices rose on hopes of an effective COVID-19 vaccine, while Kuwait and Qatar markets lost steam after a string of solid gains.
Benchmark Brent oil rose to a more than two-month high above $45 a barrel on hopes of an effective COVID-19 vaccine and an industry report showing U.S. crude inventories fell more than expected. O/R
Crude stockpiles fell by 5.1 million barrels last week to about 482 million barrels, industry group data showed on Tuesday, compared with analysts' expectations in a Reuters poll for a reduction of 913,000 barrels. API/S
Saudi Arabia's benchmark index .TASI ended 0.5% higher, its sixth successive session of gains. Saudi Telecom 7010 gained 2.3%, while oil behemoth and index heavyweight Aramco 2222.SE added 0.4%.
Dubai's main share index .DFMGI closed 0.8% higher to finish with gains for a sixth straight session.
Lender Emirates NBD Bank ENBD.DU and real estate firm Emaar Malls EMAA.DU led the gains, adding 2% and 2.4%, respectively.
Emaar Malls had gained at least 14% on Tuesday after sounding optimistic about the immediate future of Dubai retail industry for the 2020 remainder.
Dubai's largest listed developer Emaar Properties EMAR.DU reported a near halving in nine-month profit post-trading hours, but its chairman said he was "cautiously optimistic" about the rest of the year. The stock had closed flat.
The Abu Dhabi index .ADI finished up 1.3%, boosted by First Abu Dhabi Bank FAB.AD and Abu Dhabi Islamic Bank ADIB.AD, which gained 2.8% and 2.5%, respectively.
In Qatar, the index .QSI closed 0.1% lower, with Qatar Industries IQCD.QA shedding about 3%.
Kuwait's blue-chip index .BKP lost 1.6%, logging in losses for the first time in five sessions.
MSCI reclassified Kuwait stock indexes to emerging markets status from frontier, a move that could funnel at least $2 billion in passive investment flows.
Most major Gulf markets gained on Wednesday as crude prices rose on hopes of an effective COVID-19 vaccine, while Kuwait and Qatar markets lost steam after a string of solid gains.
Benchmark Brent oil rose to a more than two-month high above $45 a barrel on hopes of an effective COVID-19 vaccine and an industry report showing U.S. crude inventories fell more than expected. O/R
Crude stockpiles fell by 5.1 million barrels last week to about 482 million barrels, industry group data showed on Tuesday, compared with analysts' expectations in a Reuters poll for a reduction of 913,000 barrels. API/S
Saudi Arabia's benchmark index .TASI ended 0.5% higher, its sixth successive session of gains. Saudi Telecom 7010 gained 2.3%, while oil behemoth and index heavyweight Aramco 2222.SE added 0.4%.
Dubai's main share index .DFMGI closed 0.8% higher to finish with gains for a sixth straight session.
Lender Emirates NBD Bank ENBD.DU and real estate firm Emaar Malls EMAA.DU led the gains, adding 2% and 2.4%, respectively.
Emaar Malls had gained at least 14% on Tuesday after sounding optimistic about the immediate future of Dubai retail industry for the 2020 remainder.
Dubai's largest listed developer Emaar Properties EMAR.DU reported a near halving in nine-month profit post-trading hours, but its chairman said he was "cautiously optimistic" about the rest of the year. The stock had closed flat.
The Abu Dhabi index .ADI finished up 1.3%, boosted by First Abu Dhabi Bank FAB.AD and Abu Dhabi Islamic Bank ADIB.AD, which gained 2.8% and 2.5%, respectively.
In Qatar, the index .QSI closed 0.1% lower, with Qatar Industries IQCD.QA shedding about 3%.
Kuwait's blue-chip index .BKP lost 1.6%, logging in losses for the first time in five sessions.
MSCI reclassified Kuwait stock indexes to emerging markets status from frontier, a move that could funnel at least $2 billion in passive investment flows.
Louis Dreyfus sells stake to #AbuDhabi sovereign wealth fund | Financial Times
Louis Dreyfus sells stake to Abu Dhabi sovereign wealth fund | Financial Times
Louis Dreyfus Company has agreed to sell a 45 per cent stake to Abu Dhabi state-owned holding company ADQ, opening the agricultural trader to a non-family shareholder for the first time in its 169-year history.
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| Margarita Louis-Dreyfus is the widow of Robert Louis-Dreyfus, whose family founded the company in 1851. She borrowed around $1bn in 2018 to take control of the business © Tolga Akmen / FT Commission |
Louis Dreyfus Company has agreed to sell a 45 per cent stake to Abu Dhabi state-owned holding company ADQ, opening the agricultural trader to a non-family shareholder for the first time in its 169-year history.
The deal provides a much needed injection of cash for the Geneva-headquartered group and also for Margarita Louis-Dreyfus, who has been taking big dividends over the past few years to repay around $1bn she borrowed to take control of the business.
The sale price was not disclosed but LDC said a portion of the proceeds, amounting to a minimum of $800m, would be ploughed back into LDC.
“The transaction announced today constitutes a milestone in a decade-long strategy . . . which started with the consolidation of LDC’s parent company’s shareholding,” said Mrs Louis-Dreyfus in a statement on Wednesday.
Silicon Valley Firm Joins Gulf Investors to Fund Tech Deals - Bloomberg
Silicon Valley Firm Joins Gulf Investors to Fund Tech Deals - Bloomberg
A Silicon Valley venture-capital firm is targeting cash-flush Middle Eastern investors to fund technology companies, all while scouting the Gulf for buying opportunities.
Tribe Capital Management LLC partnered with Dubai-based boutique financial and investment adviser Arrow Capital in a first-of-its-kind cooperation deal for the Gulf, according to Arjun Sethi, Tribe’s co-founder.
“We need a touch point everywhere,” he said in an interview. The need to adapt to the “future at a faster pace” has seen premiums for tech companies soar, while also spurring Silicon Valley companies to broaden funding sources as they expand and invest globally.
The San Francisco-based firm has invested about $450 million in companies like software developer Carta Inc. and self-driving simulator Applied Intuition Inc. since its formation about 2-1/2 years ago.
A Silicon Valley venture-capital firm is targeting cash-flush Middle Eastern investors to fund technology companies, all while scouting the Gulf for buying opportunities.
Tribe Capital Management LLC partnered with Dubai-based boutique financial and investment adviser Arrow Capital in a first-of-its-kind cooperation deal for the Gulf, according to Arjun Sethi, Tribe’s co-founder.
“We need a touch point everywhere,” he said in an interview. The need to adapt to the “future at a faster pace” has seen premiums for tech companies soar, while also spurring Silicon Valley companies to broaden funding sources as they expand and invest globally.
The San Francisco-based firm has invested about $450 million in companies like software developer Carta Inc. and self-driving simulator Applied Intuition Inc. since its formation about 2-1/2 years ago.
Three Israeli airlines to run #Dubai-Tel Aviv flights from December - Dubai Airports | Reuters
Three Israeli airlines to run Dubai-Tel Aviv flights from December - Dubai Airports | Reuters
Three Israeli airlines will begin direct flights from Tel Aviv to Dubai in December, with El Al operating twice daily services, Israir offering six weekly flights and Arkia operating a daily service, Dubai Airports said on Wednesday.
El Al will run its service with Boeing 787 Dreamliner aircraft, Israir’s flights will be use Airbus A320s and Arkia’s daily flight will be on Embraer E-195 E-Jet aircraft, Dubai Airports, which manages the operations of both of Dubai’s airports, said in a statement.
The United Arab Emirates and Israel signed an agreement in September to establish full diplomatic relations.
This made the UAE along with Gulf neighbour Bahrain the first Arab states in a quarter of a century to seek formal ties with Israel, largely due to shared fears of Iran.
Three Israeli airlines will begin direct flights from Tel Aviv to Dubai in December, with El Al operating twice daily services, Israir offering six weekly flights and Arkia operating a daily service, Dubai Airports said on Wednesday.
El Al will run its service with Boeing 787 Dreamliner aircraft, Israir’s flights will be use Airbus A320s and Arkia’s daily flight will be on Embraer E-195 E-Jet aircraft, Dubai Airports, which manages the operations of both of Dubai’s airports, said in a statement.
The United Arab Emirates and Israel signed an agreement in September to establish full diplomatic relations.
This made the UAE along with Gulf neighbour Bahrain the first Arab states in a quarter of a century to seek formal ties with Israel, largely due to shared fears of Iran.
Israeli settler delegation visits #Dubai following #UAE accord
Israeli settler delegation visits Dubai following UAE accord
A delegation of Israeli settlers is visiting Dubai, where they met with Emirati business people to discuss commercial opportunities following the United Arab Emirates’ establishment of formal ties with Israel earlier this year.
The visit angered the Palestinians, who view Israeli settlements as a major obstacle to peace and a violation of international law. The Palestinians rejected the normalization agreement as a betrayal of their cause because the UAE broke with a longstanding Arab consensus that recognition of Israel should only be granted in return for territorial concessions.
The delegation was led by Yossi Dagan, the head of the Samaria Regional Council, which represents settlements in the northern West Bank. They arrived on Sunday and planned to remain in the Emirates until Thursday.
A council statement released Tuesday said the delegation held “marathon business meetings” with around 20 individuals and companies working in agriculture, pest control and plastics.
A delegation of Israeli settlers is visiting Dubai, where they met with Emirati business people to discuss commercial opportunities following the United Arab Emirates’ establishment of formal ties with Israel earlier this year.
The visit angered the Palestinians, who view Israeli settlements as a major obstacle to peace and a violation of international law. The Palestinians rejected the normalization agreement as a betrayal of their cause because the UAE broke with a longstanding Arab consensus that recognition of Israel should only be granted in return for territorial concessions.
The delegation was led by Yossi Dagan, the head of the Samaria Regional Council, which represents settlements in the northern West Bank. They arrived on Sunday and planned to remain in the Emirates until Thursday.
A council statement released Tuesday said the delegation held “marathon business meetings” with around 20 individuals and companies working in agriculture, pest control and plastics.
#Dubai's Emaar reports nine-month profit almost cut in half | Reuters
Dubai's Emaar reports nine-month profit almost cut in half | Reuters
Dubai’s largest listed developer Emaar Properties reported on Wednesday a near halving in profit for the first nine months of the year, while its chairman said he was “cautiously optimistic” about the rest of the year.
The coronavirus crisis has put further pressure on Dubai’s already weakened property market that for years has seen supply outstrip demand for new houses and apartments.
Emaar, which counts Dubai’s state fund as a major shareholder, saw profit fall 48% in the January-September period to 2.44 billion dirhams ($664 million), it said in a statement.
Nine-month revenue fell 26% to 13.4 billion dirhams.
Dubai’s largest listed developer Emaar Properties reported on Wednesday a near halving in profit for the first nine months of the year, while its chairman said he was “cautiously optimistic” about the rest of the year.
The coronavirus crisis has put further pressure on Dubai’s already weakened property market that for years has seen supply outstrip demand for new houses and apartments.
Emaar, which counts Dubai’s state fund as a major shareholder, saw profit fall 48% in the January-September period to 2.44 billion dirhams ($664 million), it said in a statement.
Nine-month revenue fell 26% to 13.4 billion dirhams.
RPT-COLUMN-Successful vaccine would boost oil consumption, but not for 6-12 months: Kemp | Reuters
RPT-COLUMN-Successful vaccine would boost oil consumption, but not for 6-12 months: Kemp | Reuters
Coronavirus vaccines are expected to boost international passenger transportation and oil consumption, but the first significant impact will not be felt until well into the second half of 2021, based on futures price movements on Monday.
Brent calendar spreads surged that day as traders priced in an announcement from Pfizer about successful immunisation trials, fuelling optimism an effective vaccine will become available within the next few months.
Before Pfizer’s announcement, flat prices and spreads had been under pressure since mid-October, prompting a statement from Saudi Arabia that OPEC and its partners are prepared to “tweak” their production agreement.
The combined effect of Pfizer’s announcement (potentially boosting oil consumption) and Saudi Arabia’s talk about tweaking (potentially reducing production relative to the planned baseline) sent oil futures soaring.
Coronavirus vaccines are expected to boost international passenger transportation and oil consumption, but the first significant impact will not be felt until well into the second half of 2021, based on futures price movements on Monday.
Brent calendar spreads surged that day as traders priced in an announcement from Pfizer about successful immunisation trials, fuelling optimism an effective vaccine will become available within the next few months.
Before Pfizer’s announcement, flat prices and spreads had been under pressure since mid-October, prompting a statement from Saudi Arabia that OPEC and its partners are prepared to “tweak” their production agreement.
The combined effect of Pfizer’s announcement (potentially boosting oil consumption) and Saudi Arabia’s talk about tweaking (potentially reducing production relative to the planned baseline) sent oil futures soaring.
Etihad flags more cabin crew job cuts, to keep Airbus A380s grounded | Reuters
Etihad flags more cabin crew job cuts, to keep Airbus A380s grounded | Reuters
Etihad Airways told cabin crew on Wednesday there would be layoffs this week, an internal email seen by Reuters showed, and a company source said the airline will keep its Airbus AIR.PA A380 superjumbos parked "indefinitely" due to a slower than expected recovery in air travel demand.
In the internal email, cabin crew were told those affected would be notified within 24 hours, without saying how many would lose their jobs.
The warning was sent out two days after a similar notice was sent out to pilots at the Abu Dhabi state carrier.
Etihad has already cut jobs and salaries as its losses widened this year.
Staff were told in the email that Etihad believes it will become a much smaller airline as air travel demand has not been recovering fast enough, leaving the carrier with a larger workforce than it needs.
Etihad Airways told cabin crew on Wednesday there would be layoffs this week, an internal email seen by Reuters showed, and a company source said the airline will keep its Airbus AIR.PA A380 superjumbos parked "indefinitely" due to a slower than expected recovery in air travel demand.
In the internal email, cabin crew were told those affected would be notified within 24 hours, without saying how many would lose their jobs.
The warning was sent out two days after a similar notice was sent out to pilots at the Abu Dhabi state carrier.
Etihad has already cut jobs and salaries as its losses widened this year.
Staff were told in the email that Etihad believes it will become a much smaller airline as air travel demand has not been recovering fast enough, leaving the carrier with a larger workforce than it needs.
Air Arabia in talks with government for funding, CEO says | Reuters #UAE
Air Arabia in talks with government for funding, CEO says | Reuters
United Arab Emirates-listed Air Arabia AIRA.DU is in talks with the government over financial assistance to help it get through the coronavirus crisis, its chief executive said on Wednesday.
Asked if the budget carrier would need interim funding from the government, CEO Adel Ali told a virtual CAPA aviation summit: “We have put a request in. If it comes, we will be very happy. It will help us to pay some of our outstanding quicker. If it doesn’t, I think we can survive hopefully for some time to come.”
Air Arabia has lost 212.5 million dirhams ($57.86 million)in the first nine months of the year, compared with a 791 million dirham profit in the same period a year ago.
United Arab Emirates-listed Air Arabia AIRA.DU is in talks with the government over financial assistance to help it get through the coronavirus crisis, its chief executive said on Wednesday.
Asked if the budget carrier would need interim funding from the government, CEO Adel Ali told a virtual CAPA aviation summit: “We have put a request in. If it comes, we will be very happy. It will help us to pay some of our outstanding quicker. If it doesn’t, I think we can survive hopefully for some time to come.”
Air Arabia has lost 212.5 million dirhams ($57.86 million)in the first nine months of the year, compared with a 791 million dirham profit in the same period a year ago.
#Kuwait’s $124 Billion Pension Fund Plans Infrastructure Boost - Bloomberg
Kuwait’s $124 Billion Pension Fund Plans Infrastructure Boost - Bloomberg
Kuwait’s $124 billion pension fund, which posted a record first-half profit, plans to double its infrastructure investment and boost exposure to private equity, its director general said.
The new plan, developed with U.S.-based consultancy Mercer LLC, will start next year and will “entail increasing infrastructure from 5% to 10% as well as fine tuning some of the other allocations,” Meshal Al-Othman, who heads the Public Institution for Social Security, said in an interview with Bloomberg TV on Wednesday.
The fund is looking to raise private equity’s weight to 13% of its portfolio from 10% while lowering its allocation for equities to 22% from 27%, he said. Its cash currently accounts for 10% of the total, and the plan is to reduce it to 4% by March.
“We started off with a very high cash cushion, we still have a huge cushion,” he said.
Kuwait’s $124 billion pension fund, which posted a record first-half profit, plans to double its infrastructure investment and boost exposure to private equity, its director general said.
The new plan, developed with U.S.-based consultancy Mercer LLC, will start next year and will “entail increasing infrastructure from 5% to 10% as well as fine tuning some of the other allocations,” Meshal Al-Othman, who heads the Public Institution for Social Security, said in an interview with Bloomberg TV on Wednesday.
The fund is looking to raise private equity’s weight to 13% of its portfolio from 10% while lowering its allocation for equities to 22% from 27%, he said. Its cash currently accounts for 10% of the total, and the plan is to reduce it to 4% by March.
“We started off with a very high cash cushion, we still have a huge cushion,” he said.
#UAE News: #AbuDhabi ADQ Wealth Fund Buy to Buy 45% Stake in Louis Dreyfus Co. - Bloomberg
UAE News: Abu Dhabi ADQ Wealth Fund Buy to Buy 45% Stake in Louis Dreyfus Co. - Bloomberg
Billionaire Margarita Louis-Dreyfus agreed to sell a 45% indirect stake in agricultural trader Louis Dreyfus Co. to Abu Dhabi sovereign wealth fund ADQ, opening the storied family company to outside ownership for the first time in its history.
The deal will give Louis-Dreyfus, who controls more than 96% of the holding company that owns LDC, an injection of much-needed cash in return for giving up nearly half of the family business. She has been taking big dividends over the past few years to help repay about $1 billion she borrowed to buy out other family members.
The deal confirms talks between Louis Dreyfus first reported by Bloomberg in September. Financial terms were not disclosed but the companies said $800 million of the proceeds from the sale would be invested into LDC to support strategic investments.
For ADQ, formerly known as Abu Dhabi Development Holding Co., acquiring a minority stake in one of the four largest traders of grains, oilseeds and sugar will help boost food security for the United Arab Emirates. In June, the fund held talks with banks to raise loans to finance an acquisition spree that included buying a 50% stake in agricultural business Al Dahra Holding Co.
Billionaire Margarita Louis-Dreyfus agreed to sell a 45% indirect stake in agricultural trader Louis Dreyfus Co. to Abu Dhabi sovereign wealth fund ADQ, opening the storied family company to outside ownership for the first time in its history.
The deal will give Louis-Dreyfus, who controls more than 96% of the holding company that owns LDC, an injection of much-needed cash in return for giving up nearly half of the family business. She has been taking big dividends over the past few years to help repay about $1 billion she borrowed to buy out other family members.
The deal confirms talks between Louis Dreyfus first reported by Bloomberg in September. Financial terms were not disclosed but the companies said $800 million of the proceeds from the sale would be invested into LDC to support strategic investments.
For ADQ, formerly known as Abu Dhabi Development Holding Co., acquiring a minority stake in one of the four largest traders of grains, oilseeds and sugar will help boost food security for the United Arab Emirates. In June, the fund held talks with banks to raise loans to finance an acquisition spree that included buying a 50% stake in agricultural business Al Dahra Holding Co.
#Dubai Puts Airport’s Cooling Operation on the Block in Rare Sale - Bloomberg
Dubai Puts Airport’s Cooling Operation on the Block in Rare Sale - Bloomberg
Dubai is seeking a buyer for the cooling system operations of its biggest airport as Gulf Arab states lean on asset sales and debt to shore up their finances.
The government entity overseeing the main airport’s infrastructure has hired Standard Chartered Plc as adviser on the transaction, with the entire business valued at around $750 million, according to people familiar with the matter, who asked not to be identified because details are private. As part of the deal, investors obtain a long-term lease to operate the assets, they said, offering steady returns for the duration of the contract.
The company is looking to offer a controlling stake and is approaching local and international district cooling specialists, as well as global infrastructure players, the people said. Talks are at an early stage and there is no guarantee a deal will be reached.
StanChart declined to comment. Dubai’s media office didn’t reply to messages seeking comment.
Dubai is seeking a buyer for the cooling system operations of its biggest airport as Gulf Arab states lean on asset sales and debt to shore up their finances.
The government entity overseeing the main airport’s infrastructure has hired Standard Chartered Plc as adviser on the transaction, with the entire business valued at around $750 million, according to people familiar with the matter, who asked not to be identified because details are private. As part of the deal, investors obtain a long-term lease to operate the assets, they said, offering steady returns for the duration of the contract.
The company is looking to offer a controlling stake and is approaching local and international district cooling specialists, as well as global infrastructure players, the people said. Talks are at an early stage and there is no guarantee a deal will be reached.
StanChart declined to comment. Dubai’s media office didn’t reply to messages seeking comment.
Oil rises on hopes for COVID-19 vaccine, declining U.S. crude stocks | Reuters
Oil rises on hopes for COVID-19 vaccine, declining U.S. crude stocks | Reuters
Oil prices climbed on Wednesday as hopes of an effective COVID-19 vaccine continued to bolster sentiment and an industry report showed U.S. crude inventories fell more than expected.
Brent crude rose $1.17, or 2.7%, to $44.78 a barrel at 0925 GMT, while U.S. West Texas Intermediate (WTI) crude added $1.17 cents, or 2.8%, to $42.53 a barrel. Both benchmarks gained nearly 3% on Tuesday.
“This week’s news about a coronavirus vaccine was encouraging and, alongside short-covering activity, strongly supported oil prices on Monday and Tuesday,” said Giovanni Staunovo, oil analyst for UBS.
The bank cautioned that European lockdowns and restored Libyan oil output could weigh on prices in the short term, but forecast oil at $60 a barrel by the end of 2021 based on the likelihood that producers would continue to rein in supply.
Oil prices climbed on Wednesday as hopes of an effective COVID-19 vaccine continued to bolster sentiment and an industry report showed U.S. crude inventories fell more than expected.
Brent crude rose $1.17, or 2.7%, to $44.78 a barrel at 0925 GMT, while U.S. West Texas Intermediate (WTI) crude added $1.17 cents, or 2.8%, to $42.53 a barrel. Both benchmarks gained nearly 3% on Tuesday.
“This week’s news about a coronavirus vaccine was encouraging and, alongside short-covering activity, strongly supported oil prices on Monday and Tuesday,” said Giovanni Staunovo, oil analyst for UBS.
The bank cautioned that European lockdowns and restored Libyan oil output could weigh on prices in the short term, but forecast oil at $60 a barrel by the end of 2021 based on the likelihood that producers would continue to rein in supply.
MIDEAST STOCKS-Saudi extends gains as oil rises on vaccine cheer; Dubai, Qatar struggle | Nasdaq
MIDEAST STOCKS-Saudi extends gains as oil rises on vaccine cheer; Dubai, Qatar struggle | Nasdaq
Saudi shares on Wednesday traded higher as crude prices gained on hopes of an effective COVID-19 vaccine, while Dubai and Qatar markets lost steam after two consecutive sessions of solid gains.
Oil prices climbed more than 1%, after an industry report showed U.S. crude inventories dropped more than expected, while vaccine hopes continued to bolster sentiment. O/R
Crude stockpiles fell by 5.1 million barrels last week to about 482 million barrels, industry group data showed, compared with analysts' expectations in a Reuters poll for a reduction of 913,000 barrels. API/S
Saudi Arabia's benchmark index .TASI was up 0.4%, on track for a sixth straight session of gains, with oil behemoth Saudi Aramco 2222.SE edging up 0.4%, while Al Rajhi Bank 1120.SE added on 0.7%.
Dubai's main share index .DFMGI fell about 0.4%, with real estate stocks Emaar Malls EMAA.DU and Emaar Properties EMAR.DU shedding 2.4% and 2%, respectively.
Emaar Malls gained more than 14% on Tuesday after it signalled an optimistic future for Dubai retail industry for the rest of the year.
Middle East budget carrier Air Arabia AIRA.DU fell 1.7% after it reported a third-quarter loss, but said it was in a strong position to weather the impact of the coronavirus crisis.
The Abu Dhabi index .ADI gained about 0.3%, supported by lenders First Abu Dhabi Bank FAB.AD and Abu Dhabi Islamic Bank ADIB.AD that gained 0.4% and 3%, respectively.
In Qatar, the index .QSI traded 0.7% lower, with Qatar Industries IQCD.QA shedding about 3%.
Kuwait's blue-chip index .BKP fell nearly a percent in early trade, after gaining about 1% in the previous session.
MSCI, the world's largest index provider, on Wednesday reclassified Kuwait stock indexes to emerging markets status from frontier.
Seven Kuwaiti securities will be added to the benchmark MSCI Emerging Markets Index .MSCIEF at an aggregate weight of 0.58%.
Saudi shares on Wednesday traded higher as crude prices gained on hopes of an effective COVID-19 vaccine, while Dubai and Qatar markets lost steam after two consecutive sessions of solid gains.
Oil prices climbed more than 1%, after an industry report showed U.S. crude inventories dropped more than expected, while vaccine hopes continued to bolster sentiment. O/R
Crude stockpiles fell by 5.1 million barrels last week to about 482 million barrels, industry group data showed, compared with analysts' expectations in a Reuters poll for a reduction of 913,000 barrels. API/S
Saudi Arabia's benchmark index .TASI was up 0.4%, on track for a sixth straight session of gains, with oil behemoth Saudi Aramco 2222.SE edging up 0.4%, while Al Rajhi Bank 1120.SE added on 0.7%.
Dubai's main share index .DFMGI fell about 0.4%, with real estate stocks Emaar Malls EMAA.DU and Emaar Properties EMAR.DU shedding 2.4% and 2%, respectively.
Emaar Malls gained more than 14% on Tuesday after it signalled an optimistic future for Dubai retail industry for the rest of the year.
Middle East budget carrier Air Arabia AIRA.DU fell 1.7% after it reported a third-quarter loss, but said it was in a strong position to weather the impact of the coronavirus crisis.
The Abu Dhabi index .ADI gained about 0.3%, supported by lenders First Abu Dhabi Bank FAB.AD and Abu Dhabi Islamic Bank ADIB.AD that gained 0.4% and 3%, respectively.
In Qatar, the index .QSI traded 0.7% lower, with Qatar Industries IQCD.QA shedding about 3%.
Kuwait's blue-chip index .BKP fell nearly a percent in early trade, after gaining about 1% in the previous session.
MSCI, the world's largest index provider, on Wednesday reclassified Kuwait stock indexes to emerging markets status from frontier.
Seven Kuwaiti securities will be added to the benchmark MSCI Emerging Markets Index .MSCIEF at an aggregate weight of 0.58%.
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