Oil closes at highest level since March on vaccine trials, Biden transition | Reuters
Oil rose about 4% on Tuesday to touch highs not seen since March as a third promising coronavirus vaccine raised hope for fuel- demand recovery and U.S. President-elect Joseph Biden began his transition to the White House.
Brent crude settled at $47.86 a barrel, gaining $1.80, or 3.9%. U.S. West Texas Intermediate crude settled at $44.91 a barrel, rising $1.85, or 4.3%.
Both benchmarks ended at their highest close since March 6.
AstraZeneca on Monday said that its COVID-19 vaccine was 70% effective in trials and could be up to 90% effective, giving the fight against the pandemic another potential vaccine after positive results from Pfizer-BioNTech and Moderna.
However, the vaccine will not be readily available for several months, meaning people will likely restrict travel and other activities through next year to try to slow the spread of the disease.
Tuesday, 24 November 2020
Oil hits highest since March collapse on vaccine, Biden transition | Reuters
Oil hits highest since March collapse on vaccine, Biden transition | Reuters
Oil hit its highest since in March on Tuesday, rising towards $47 a barrel, as a third promising coronavirus vaccine spurred demand recovery hopes and U.S. President-elect Joe Biden received the go-ahead to begin his transition.
AstraZeneca said on Monday its COVID-19 shot was 70% effective in trials and could be up to 90% effective, giving the fight against the pandemic a third vaccine. This follows positive results from Pfizer/BioNTech and Moderna.
Brent crude rose 51 cents, or 1.1%, to $46.57 a barrel by 1322 GMT and hit a session high of $46.72, its highest since March 6. U.S. West Texas Intermediate crude gained 63 cents, or 1.5%, to $43.69.
“The fight against the coronavirus is intensifying and is proving to be increasingly successful,” said Tamas Varga of broker PVM. “Next year’s oil demand estimates are bound to be amended upwards.”
Oil hit its highest since in March on Tuesday, rising towards $47 a barrel, as a third promising coronavirus vaccine spurred demand recovery hopes and U.S. President-elect Joe Biden received the go-ahead to begin his transition.
AstraZeneca said on Monday its COVID-19 shot was 70% effective in trials and could be up to 90% effective, giving the fight against the pandemic a third vaccine. This follows positive results from Pfizer/BioNTech and Moderna.
Brent crude rose 51 cents, or 1.1%, to $46.57 a barrel by 1322 GMT and hit a session high of $46.72, its highest since March 6. U.S. West Texas Intermediate crude gained 63 cents, or 1.5%, to $43.69.
“The fight against the coronavirus is intensifying and is proving to be increasingly successful,” said Tamas Varga of broker PVM. “Next year’s oil demand estimates are bound to be amended upwards.”
Sabic Is Said to Consider IPO of Specialty Chemicals Business - Bloomberg
Sabic Is Said to Consider IPO of Specialty Chemicals Business - Bloomberg
Saudi Basic Industries Corp. is considering an initial public offering of its multibillion-dollar specialty chemicals unit, people familiar with the matter said.
Sabic is speaking with advisers as it weighs a potential listing of the business as early as 2021, the people said, asking not to be identified as the matter is private. Specialty chemicals, which Sabic recently carved out as a separate unit, generate about $2 billion of annual revenue, the people said.
Deliberations are at an early stage, and there’s no certainty they will lead to a transaction, the people said. A representative for Sabic declined to comment.
While Sabic hasn’t decided on a venue for the potential share sale, a local listing would help Saudi Arabia deepen its stock market at a time when the country has been opening up more to foreign investors. Any deal could also help Sabic raise funds after the company said in May it’s suspending new capital expenditures to protect its balance sheet.
Sabic reported its biggest quarterly loss in at least a decade in the three months through June. It returned to profit in the third quarter, thanks mainly to the reversal of impairments associated with its Clariant AG stake, though revenue for the period fell 11%.
Saudi Basic Industries Corp. is considering an initial public offering of its multibillion-dollar specialty chemicals unit, people familiar with the matter said.
Sabic is speaking with advisers as it weighs a potential listing of the business as early as 2021, the people said, asking not to be identified as the matter is private. Specialty chemicals, which Sabic recently carved out as a separate unit, generate about $2 billion of annual revenue, the people said.
Deliberations are at an early stage, and there’s no certainty they will lead to a transaction, the people said. A representative for Sabic declined to comment.
While Sabic hasn’t decided on a venue for the potential share sale, a local listing would help Saudi Arabia deepen its stock market at a time when the country has been opening up more to foreign investors. Any deal could also help Sabic raise funds after the company said in May it’s suspending new capital expenditures to protect its balance sheet.
Sabic reported its biggest quarterly loss in at least a decade in the three months through June. It returned to profit in the third quarter, thanks mainly to the reversal of impairments associated with its Clariant AG stake, though revenue for the period fell 11%.
Most Middle East markets end higher as investors cheer Biden transition, vaccine progress | Reuters
Most markets end higher as investors cheer Biden transition, vaccine progress | Reuters
Most major Gulf markets closed higher on Tuesday, tracking gains on global bourses, helped by a formal transition nod for U.S. President-elect Joe Biden and new coronavirus vaccine developments.
U.S. President Donald Trump on Monday gave the head of the General Services Administration the go-ahead to proceed with a transition to a government led by Biden despite plans to continue with legal challenges.
Global financial markets have gained in recent weeks on encouraging news about the development of COVID-19 vaccines, spurring hopes of a speedy global economic revival.
Oil prices, a key catalyst for the region’s economies, hit their highest levels since March, when the collapse of an earlier OPEC-led output pact coincided with cratering demand due to the developing pandemic. [O/R]
Saudi Arabia’s benchmark index rose 0.3%, driven by gains in lender Al-Rajhi Bank and oil behemoth Saudi Aramco, which each added 0.6%.
Aramco said its domestic fuel supplies had not been affected by Monday’s attack on a petroleum products distribution plant in Jeddah by Yemen’s Houthi group.
Dubai’s main share index closed 1.9% higher, its biggest daily gain in 10 sessions, with financials and real estate stocks powering the benchmark.
Emaar Properties added 4.5%, while lender Dubai Islamic Bank rose 1.4%, making the pair the top gainers on the benchmark.
The Abu Dhabi index, however, bucked the trend, easing 0.5%.
First Abu Dhabi Bank lost 1.2%, as did International Holdings Co.
In Qatar, the benchmark index fell 0.7%, with Qatar National Bank down 2.4% and Qatar Islamic Bank 2.7% lower.
Most major Gulf markets closed higher on Tuesday, tracking gains on global bourses, helped by a formal transition nod for U.S. President-elect Joe Biden and new coronavirus vaccine developments.
U.S. President Donald Trump on Monday gave the head of the General Services Administration the go-ahead to proceed with a transition to a government led by Biden despite plans to continue with legal challenges.
Global financial markets have gained in recent weeks on encouraging news about the development of COVID-19 vaccines, spurring hopes of a speedy global economic revival.
Oil prices, a key catalyst for the region’s economies, hit their highest levels since March, when the collapse of an earlier OPEC-led output pact coincided with cratering demand due to the developing pandemic. [O/R]
Saudi Arabia’s benchmark index rose 0.3%, driven by gains in lender Al-Rajhi Bank and oil behemoth Saudi Aramco, which each added 0.6%.
Aramco said its domestic fuel supplies had not been affected by Monday’s attack on a petroleum products distribution plant in Jeddah by Yemen’s Houthi group.
Dubai’s main share index closed 1.9% higher, its biggest daily gain in 10 sessions, with financials and real estate stocks powering the benchmark.
Emaar Properties added 4.5%, while lender Dubai Islamic Bank rose 1.4%, making the pair the top gainers on the benchmark.
The Abu Dhabi index, however, bucked the trend, easing 0.5%.
First Abu Dhabi Bank lost 1.2%, as did International Holdings Co.
In Qatar, the benchmark index fell 0.7%, with Qatar National Bank down 2.4% and Qatar Islamic Bank 2.7% lower.
Salt Bae Owner’s Qatari Deal Is Said to Value Mall at $1 Billion - Bloomberg
Salt Bae Owner’s Qatari Deal Is Said to Value Mall at $1 Billion - Bloomberg
Billionaire Ferit Sahenk’s Dogus Holding AS agreed to sell a 30% stake in a high-end Istanbul shopping center to an arm of Qatar’s sovereign wealth fund, as the Turkish conglomerate raises cash to deliver on pledges it made to banks as part of a debt restructuring last year.
Dogus, owner of a steakhouse known for its founder chef’s meme Salt Bae, will get around $300 million for the stake in IstinyePark, according to people with knowledge of the matter. The deal values the mall at $1 billion, they said, asking not to be named because the information is confidential.
Istanbul-based Dogus will likely use the proceeds to meet its obligations under the 2019 debt agreement, in which it committed to sell assets to repay creditors, the people said. A filing on the Turkish Competition Board’s website said Monday the sale by a Dogus unit to Qatar Holding was approved, without giving details of the deal.
Dogus declined to comment. The Qatar Investment Authority, which owns Qatar Holding, didn’t immediately respond to a request for comment.
Billionaire Ferit Sahenk’s Dogus Holding AS agreed to sell a 30% stake in a high-end Istanbul shopping center to an arm of Qatar’s sovereign wealth fund, as the Turkish conglomerate raises cash to deliver on pledges it made to banks as part of a debt restructuring last year.
Dogus, owner of a steakhouse known for its founder chef’s meme Salt Bae, will get around $300 million for the stake in IstinyePark, according to people with knowledge of the matter. The deal values the mall at $1 billion, they said, asking not to be named because the information is confidential.
Istanbul-based Dogus will likely use the proceeds to meet its obligations under the 2019 debt agreement, in which it committed to sell assets to repay creditors, the people said. A filing on the Turkish Competition Board’s website said Monday the sale by a Dogus unit to Qatar Holding was approved, without giving details of the deal.
Dogus declined to comment. The Qatar Investment Authority, which owns Qatar Holding, didn’t immediately respond to a request for comment.
RPT- #SaudiArabia's Jadwa hires HSBC to advise on exiting UEMedical -sources | Reuters
RPT-Saudi Arabia's Jadwa hires HSBC to advise on exiting UEMedical -sources | Reuters
Saudi Arabian investment bank Jadwa Investment’s private equity arm has hired HSBC to advise on the sale of its stake in Abu Dhabi healthcare group UEMedical, two sources familiar with the matter told Reuters.
Jadwa, which has a 42% holding, is considering a sale of the stake either through an outright sale or an initial public offering (IPO), said the sources, declining to be identified as the matter is not public.
The business is said to be worth around $800 million, they said.
United Eastern Medical Services (UEMedical) is specialised in women’s, fertility and children’s healthcare and has a network of premium health centres across Abu Dhabi, according to its website.
Jadwa acquired a stake in UEMedical in 2016 through its Healthcare Opportunities Fund 2, information on Jadwa’s website shows.
Saudi Arabian investment bank Jadwa Investment’s private equity arm has hired HSBC to advise on the sale of its stake in Abu Dhabi healthcare group UEMedical, two sources familiar with the matter told Reuters.
Jadwa, which has a 42% holding, is considering a sale of the stake either through an outright sale or an initial public offering (IPO), said the sources, declining to be identified as the matter is not public.
The business is said to be worth around $800 million, they said.
United Eastern Medical Services (UEMedical) is specialised in women’s, fertility and children’s healthcare and has a network of premium health centres across Abu Dhabi, according to its website.
Jadwa acquired a stake in UEMedical in 2016 through its Healthcare Opportunities Fund 2, information on Jadwa’s website shows.
Elbit Systems optimistic as it looks beyond third quarter one-off charges | Reuters
Elbit Systems optimistic as it looks beyond third quarter one-off charges | Reuters
Israel’s Elbit Systems reported lower quarterly profit hit by one-time charges due to the coronavirus pandemic but the defence electronics firm said rising demand would drive future growth.
Earnings per diluted share for the July-September quarter fell to 38 cents from $1.63 a year earlier, the maker of drones, pilot helmet displays and cyber security systems said on Tuesday. Revenue rose to $1.13 billion from $1.1 billion.
Excluding non-cash expenses related to impairment of assets and inventory write-offs due to COVID-19 totalling nearly $60 million, and other one-time items, Elbit earned $1.64 versus $1.33 a year earlier.
“We are not expecting any more impairments because of COVID,” CEO Bezhalel Machlis told Reuters. “We are back to normal. There is much less uncertainty in the market right now so I am very optimistic about the future.”
Israel’s Elbit Systems reported lower quarterly profit hit by one-time charges due to the coronavirus pandemic but the defence electronics firm said rising demand would drive future growth.
Earnings per diluted share for the July-September quarter fell to 38 cents from $1.63 a year earlier, the maker of drones, pilot helmet displays and cyber security systems said on Tuesday. Revenue rose to $1.13 billion from $1.1 billion.
Excluding non-cash expenses related to impairment of assets and inventory write-offs due to COVID-19 totalling nearly $60 million, and other one-time items, Elbit earned $1.64 versus $1.33 a year earlier.
“We are not expecting any more impairments because of COVID,” CEO Bezhalel Machlis told Reuters. “We are back to normal. There is much less uncertainty in the market right now so I am very optimistic about the future.”
Goldman voices concerns about OPEC+ future as decision on output curbs nears | Reuters
Goldman voices concerns about OPEC+ future as decision on output curbs nears | Reuters
As the OPEC+ group’s decision on oil production cuts nears, there are renewed concerns about the future of the organization as it tries to rebalance the market while securing higher revenue and market share in the medium-term, Goldman Sachs said in a note.
OPEC+, comprising the Organization of the Petroleum Exporting Countries, Russia and other producers, is scheduled to meet on Nov. 30 and Dec. 1, and is likely to discuss extending oil output curbs into next year due to weak demand amid surging COVID-19 infections.
“Potentially complicating the meeting could be a push by the UAE to raise its baseline quota which screens as low relative to that of Saudi and Russia, although we don’t think this will derail an extension,” Goldman said.
The bank sees a coordinated move to restrict output as the best near-term action for oil prices, given the high levels of crude inventories, Libya’s production recovery, and a new wave of coronavirus infections leading to renewed partial lockdowns.
Goldman expects OPEC+ to delay its production ramp-up for three months, helping bring the global market deficit back to 1 million barrels per day in the first quarter of 2021.
As the OPEC+ group’s decision on oil production cuts nears, there are renewed concerns about the future of the organization as it tries to rebalance the market while securing higher revenue and market share in the medium-term, Goldman Sachs said in a note.
OPEC+, comprising the Organization of the Petroleum Exporting Countries, Russia and other producers, is scheduled to meet on Nov. 30 and Dec. 1, and is likely to discuss extending oil output curbs into next year due to weak demand amid surging COVID-19 infections.
“Potentially complicating the meeting could be a push by the UAE to raise its baseline quota which screens as low relative to that of Saudi and Russia, although we don’t think this will derail an extension,” Goldman said.
The bank sees a coordinated move to restrict output as the best near-term action for oil prices, given the high levels of crude inventories, Libya’s production recovery, and a new wave of coronavirus infections leading to renewed partial lockdowns.
Goldman expects OPEC+ to delay its production ramp-up for three months, helping bring the global market deficit back to 1 million barrels per day in the first quarter of 2021.
#Qatar starts legal proceedings against FAB in New York in market manipulation row | Reuters
Qatar starts legal proceedings against FAB in New York in market manipulation row | Reuters
The Qatar Financial Centre Regulatory Authority (QFCRA) said on Tuesday it has started legal proceedings in New York to compel First Abu Dhabi Bank to pay $55 million in financial penalty imposed by a Qatari court.
The Qatari regulator last year had fined United Arab Emirates’ biggest bank 200 million riyals ($55 million) for obstructing an ongoing investigation into suspected market manipulation, a charge FAB denied.
“FAB has failed to make payment against this final judgment rendered by the Civil and Commercial Court (QFC Court) in the Qatar Financial Centre (QFC) thereby requiring the QFCRA to take steps to enforce the court’s judgment under well-recognised measures for international enforcement of money judgments,” the Qatari regulator said in a statement.
Qatar in 2018 alleged that First Abu Dhabi Bank, the United Arab Emirates’ largest lender, made “bogus” foreign exchange deals to harm Qatar’s economy after the UAE and other Arab states began a boycott of Qatar in 2017.
The Qatar Financial Centre Regulatory Authority (QFCRA) said on Tuesday it has started legal proceedings in New York to compel First Abu Dhabi Bank to pay $55 million in financial penalty imposed by a Qatari court.
The Qatari regulator last year had fined United Arab Emirates’ biggest bank 200 million riyals ($55 million) for obstructing an ongoing investigation into suspected market manipulation, a charge FAB denied.
“FAB has failed to make payment against this final judgment rendered by the Civil and Commercial Court (QFC Court) in the Qatar Financial Centre (QFC) thereby requiring the QFCRA to take steps to enforce the court’s judgment under well-recognised measures for international enforcement of money judgments,” the Qatari regulator said in a statement.
Qatar in 2018 alleged that First Abu Dhabi Bank, the United Arab Emirates’ largest lender, made “bogus” foreign exchange deals to harm Qatar’s economy after the UAE and other Arab states began a boycott of Qatar in 2017.
Oil-rich #Kuwait faces reckoning as debt crisis looms
Oil-rich Kuwait faces reckoning as debt crisis looms
When Kuwait emerged from a monthslong coronavirus lockdown, hundreds of Kuwaitis flocked to reopened stores, the lines clogging malls, snaking through hallways and spilling onto sidewalks.
But unlike much of the world, where long lines formed for donated food, Kuwaitis were waiting to buy Cartier jewelry.
The jewelry-store rush by Kuwait’s long-coddled citizens is a symptom of a looming disaster. Kuwait, one of the world’s wealthiest countries, is facing a debt crisis. The pandemic has sent the price of oil crashing to all-time lows and pushed the petrostate toward a reckoning with its longtime largesse, just as a parliamentary election approaches in December.
“COVID, low oil prices and the liquidity crisis have all come together in a perfect storm,” said Bader al-Saif, an assistant professor of history at Kuwait University.
Like other Gulf sheikhdoms, Kuwait provides cushy jobs to roughly 90% of citizens on the public payroll, along with generous benefits and subsidies, from cheap electricity and gasoline to free health care and education.
This fall, the ratings agency Moody’s downgraded Kuwait for the first time in its history. The finance minister warned the government soon wouldn’t be able to pay salaries. Kuwait’s national bank said the country’s deficit could hit 40% of its gross domestic product this year, the highest level since the financial devastation of the 1990 Iraqi invasion and subsequent Gulf War.
When Kuwait emerged from a monthslong coronavirus lockdown, hundreds of Kuwaitis flocked to reopened stores, the lines clogging malls, snaking through hallways and spilling onto sidewalks.
But unlike much of the world, where long lines formed for donated food, Kuwaitis were waiting to buy Cartier jewelry.
The jewelry-store rush by Kuwait’s long-coddled citizens is a symptom of a looming disaster. Kuwait, one of the world’s wealthiest countries, is facing a debt crisis. The pandemic has sent the price of oil crashing to all-time lows and pushed the petrostate toward a reckoning with its longtime largesse, just as a parliamentary election approaches in December.
“COVID, low oil prices and the liquidity crisis have all come together in a perfect storm,” said Bader al-Saif, an assistant professor of history at Kuwait University.
Like other Gulf sheikhdoms, Kuwait provides cushy jobs to roughly 90% of citizens on the public payroll, along with generous benefits and subsidies, from cheap electricity and gasoline to free health care and education.
This fall, the ratings agency Moody’s downgraded Kuwait for the first time in its history. The finance minister warned the government soon wouldn’t be able to pay salaries. Kuwait’s national bank said the country’s deficit could hit 40% of its gross domestic product this year, the highest level since the financial devastation of the 1990 Iraqi invasion and subsequent Gulf War.
Oil hits highest since March, spurred by vaccine hopes | Reuters
Oil hits highest since March, spurred by vaccine hopes | Reuters
Oil hit its highest since March on Tuesday, rising towards $47 a barrel, as a third promising coronavirus vaccine spurred hopes of a quicker recovery in economic growth and oil demand next year.
AstraZeneca said on Monday its COVID-19 shot was 70% effective in trials and could be up to 90% effective, giving the fight against the pandemic a third vaccine. This follows positive results from Pfizer/BioNTech and Moderna.
Brent crude rose 31 cents, or 0.7%, to $46.37 a barrel by 0914 GMT and hit a session high of $46.72, its highest since March 6.
U.S. West Texas Intermediate crude gained 32 cents, or 0.7%, to $43.38.
“The fight against the coronavirus is intensifying and is proving to be increasingly successful,” said Tamas Varga of broker PVM. “Next year’s oil demand estimates are bound to be amended upwards.”
Oil hit its highest since March on Tuesday, rising towards $47 a barrel, as a third promising coronavirus vaccine spurred hopes of a quicker recovery in economic growth and oil demand next year.
AstraZeneca said on Monday its COVID-19 shot was 70% effective in trials and could be up to 90% effective, giving the fight against the pandemic a third vaccine. This follows positive results from Pfizer/BioNTech and Moderna.
Brent crude rose 31 cents, or 0.7%, to $46.37 a barrel by 0914 GMT and hit a session high of $46.72, its highest since March 6.
U.S. West Texas Intermediate crude gained 32 cents, or 0.7%, to $43.38.
“The fight against the coronavirus is intensifying and is proving to be increasingly successful,” said Tamas Varga of broker PVM. “Next year’s oil demand estimates are bound to be amended upwards.”
MIDEAST STOCKS-Most markets rise on Biden transition, vaccine optimism | Nasdaq
MIDEAST STOCKS-Most markets rise on Biden transition, vaccine optimism | Nasdaq
Most major Gulf markets tracked broader Asia stocks higher on Tuesday, helped by a formal transition approval for U.S. President-elect Joe Biden and new coronavirus vaccine developments.
U.S. President Donald Trump on Monday gave the head of the General Services Administration the go-ahead to proceed with a transition to a government led by Biden despite plans to continue with legal challenges.
Saudi Arabia's benchmark index .TASI put on 0.3%, driven by gains in National Commercial Bank 1180.SE and Saudi Basic Industries Corp 2010.SE, which added 0.7% each.
Dubai's main share index .DFMGI surged 1.6%, with financials and real estate stocks leading the gains.
Property stock Emaar Properties EMAR.DU added more than 4%, while lender Dubai Islamic Bank DISB.DU tacked on 1.8%.
The Abu Dhabi index .ADI, however, bucked the trend, easing 0.4%.
First Abu Dhabi Bank FAB.AD lost about 0.8%, while International Holdings Co IHC.AD shed 1.2%.
In Qatar, the index .QSI edged up 0.1%, with industrial firm United Development Co UDCD.QA gaining 6.6% to be the top gainer in the benchmark.
Financial markets globally have gained in recent weeks from encouraging news in the development of a vaccine in the fight against the COVID-19 pandemic, spurring hopes of a speedy global economic revival.
Brent crude prices on Tuesday hit their highest levels since March, before Saudi Arabia initiated a price war with Russia, which sent oil prices crashing.
Most major Gulf markets tracked broader Asia stocks higher on Tuesday, helped by a formal transition approval for U.S. President-elect Joe Biden and new coronavirus vaccine developments.
U.S. President Donald Trump on Monday gave the head of the General Services Administration the go-ahead to proceed with a transition to a government led by Biden despite plans to continue with legal challenges.
Saudi Arabia's benchmark index .TASI put on 0.3%, driven by gains in National Commercial Bank 1180.SE and Saudi Basic Industries Corp 2010.SE, which added 0.7% each.
Dubai's main share index .DFMGI surged 1.6%, with financials and real estate stocks leading the gains.
Property stock Emaar Properties EMAR.DU added more than 4%, while lender Dubai Islamic Bank DISB.DU tacked on 1.8%.
The Abu Dhabi index .ADI, however, bucked the trend, easing 0.4%.
First Abu Dhabi Bank FAB.AD lost about 0.8%, while International Holdings Co IHC.AD shed 1.2%.
In Qatar, the index .QSI edged up 0.1%, with industrial firm United Development Co UDCD.QA gaining 6.6% to be the top gainer in the benchmark.
Financial markets globally have gained in recent weeks from encouraging news in the development of a vaccine in the fight against the COVID-19 pandemic, spurring hopes of a speedy global economic revival.
Brent crude prices on Tuesday hit their highest levels since March, before Saudi Arabia initiated a price war with Russia, which sent oil prices crashing.
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