Saudi Arabia, Qatar Near U.S.-Brokered Deal to End Lengthy Rift - Bloomberg
Saudi Arabia and Qatar are nearing a preliminary deal to end a rift that’s dragged on for more than three years, prodded by a Trump administration seeking foreign policy wins during its waning days in the White House, three people with knowledge of the talks said.
The tentative agreement does not involve the three other Arab countries that also severed diplomatic and trade ties with Qatar in June 2017 -- the United Arab Emirates, Bahrain and Egypt. A fourth person said a broader realignment remained a long way off as the underlying issues, such as Doha’s relations with Tehran, remained unresolved.
The potential breakthrough follows months of intense diplomacy mediated by Kuwait, which reached fruition with a final push from President Donald Trump’s son-in-law and Middle East envoy Jared Kushner, who visited the Gulf this week. The rapprochement is likely to include reopening air space and land borders, an end to the information war Qatar and Saudi Arabia have waged and other confidence-building steps as part of a detailed plan that to gradually rebuild relations, two of the people said.
Saudi Arabia and the UAE were the driving force behind the boycott, which divided the world’s top oil-producing region, rerouting air traffic and disrupting trade and business. The UAE has been more reluctant to patch up its ties with Qatar, however, preferring to focus on building its nascent ties with Israel while carefully avoiding any escalation with Iran, diplomats and analysts said.
Wednesday 2 December 2020
OPEC+ Makes Headway on Oil-Output Deal After Days of Talks - Bloomberg
OPEC+ Makes Headway on Oil-Output Deal After Days of Talks - Bloomberg
OPEC+ has made headway toward a deal on oil-output cuts, the first sign of progress after failed talks earlier this week.
After days of direct negotiations between the group’s heavyweights -- Russia, Saudi Arabia and the United Arab Emirates -- details of any potential compromise still weren’t immediately clear. It was too early to say whether the progress would translate into a final deal, delegates said, asking not to be named because the talks were private.
Oil rallied on the news, rising 2.9% to $45.85 a barrel at 12:26 p.m. in New York.
The Organization of Petroleum Exporting Countries and its allies need to hash out an agreement on supply levels for next year. Under the current deal, output is due to increase by 1.9 million barrels a day from January. Initially, talks had been focused on delaying the hike by three months, but that option ran into obstacles on Monday amid a clash between Saudi Arabia and the UAE. Since then, delegates have been trying to find a way forward.
OPEC+ has made headway toward a deal on oil-output cuts, the first sign of progress after failed talks earlier this week.
After days of direct negotiations between the group’s heavyweights -- Russia, Saudi Arabia and the United Arab Emirates -- details of any potential compromise still weren’t immediately clear. It was too early to say whether the progress would translate into a final deal, delegates said, asking not to be named because the talks were private.
Oil rallied on the news, rising 2.9% to $45.85 a barrel at 12:26 p.m. in New York.
The Organization of Petroleum Exporting Countries and its allies need to hash out an agreement on supply levels for next year. Under the current deal, output is due to increase by 1.9 million barrels a day from January. Initially, talks had been focused on delaying the hike by three months, but that option ran into obstacles on Monday amid a clash between Saudi Arabia and the UAE. Since then, delegates have been trying to find a way forward.
Oil prices rise on UK vaccine approval; signs OPEC+ may maintain output cuts | Reuters
Oil prices rise on UK vaccine approval; signs OPEC+ may maintain output cuts | Reuters
Oil prices settled higher on Wednesday as Britain’s approval of a COVID-19 vaccine boosted hopes for a demand recovery and on mounting expectations that producing countries will maintain output limits next year.
Brent crude oil futures settled up 83 cents, or 1.75%, at $48.25 a barrel. West Texas Intermediate crude settled up 73 cents or 1.64% at $45.28 a barrel.
Traders were watching OPEC+, the Organization of the Petroleum Exporting Countries (OPEC), Russia and other allies, which postponed talks on 2021 output policy to Thursday from Tuesday, according to sources.
“Today’s strong advance appeared largely based on indications of progress at today’s OPEC meeting that could potentially clear the way for a rubber stamp at the OPEC+ talks that are still scheduled for tomorrow,” said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.
Oil prices settled higher on Wednesday as Britain’s approval of a COVID-19 vaccine boosted hopes for a demand recovery and on mounting expectations that producing countries will maintain output limits next year.
Brent crude oil futures settled up 83 cents, or 1.75%, at $48.25 a barrel. West Texas Intermediate crude settled up 73 cents or 1.64% at $45.28 a barrel.
Traders were watching OPEC+, the Organization of the Petroleum Exporting Countries (OPEC), Russia and other allies, which postponed talks on 2021 output policy to Thursday from Tuesday, according to sources.
“Today’s strong advance appeared largely based on indications of progress at today’s OPEC meeting that could potentially clear the way for a rubber stamp at the OPEC+ talks that are still scheduled for tomorrow,” said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.
#SaudiArabia News: Life After Aramco Includes Plenty More IPOs for Saudi Arabia - Bloomberg
Saudi Arabia News: Aramco IPO Opens Doors for More Listings on Tadawul Exchange - Bloomberg
One year on from oil giant Saudi Aramco’s record-busting initial public offering in Riyadh, the exchange has continued to enjoy a steady stream of listings. And deals are already lining up for 2021.
For years, the twists and turns leading up to Aramco’s listing dominated Saudi Arabia’s IPO market. The decision to float on Riyadh’s Tadawul exchange and to largely forgo international investors sparked concerns that the $29 billion deal would soak up all the available local liquidity for years. That fear has turned out to be unfounded.
This year, four companies have gone public on the Saudi exchange, raising a combined $1.5 billion, according to data compiled by Bloomberg. That’s more than the $1.3 billion worth of IPOs in Germany, though far behind the Aramco year of 2019.
“There has been a pipeline of companies that have been looking for an opportunity to IPO ever since we’ve had the downturn in oil prices back in 2015,” said Tarek Fadlallah, the chief executive officer of Nomura Asset Management’s Middle Eastern unit in Dubai. Some may have been delayed by Aramco dominating the calendar last year, he said.
One year on from oil giant Saudi Aramco’s record-busting initial public offering in Riyadh, the exchange has continued to enjoy a steady stream of listings. And deals are already lining up for 2021.
For years, the twists and turns leading up to Aramco’s listing dominated Saudi Arabia’s IPO market. The decision to float on Riyadh’s Tadawul exchange and to largely forgo international investors sparked concerns that the $29 billion deal would soak up all the available local liquidity for years. That fear has turned out to be unfounded.
This year, four companies have gone public on the Saudi exchange, raising a combined $1.5 billion, according to data compiled by Bloomberg. That’s more than the $1.3 billion worth of IPOs in Germany, though far behind the Aramco year of 2019.
“There has been a pipeline of companies that have been looking for an opportunity to IPO ever since we’ve had the downturn in oil prices back in 2015,” said Tarek Fadlallah, the chief executive officer of Nomura Asset Management’s Middle Eastern unit in Dubai. Some may have been delayed by Aramco dominating the calendar last year, he said.
Column: Positive oil outlook draws in fund managers | Reuters
Column: Positive oil outlook draws in fund managers | Reuters
Hedge funds are becoming increasingly bullish on the outlook for oil prices, anticipating that early deployment of coronavirus vaccines will allow a rapid resumption of more normal travel patterns.
Ultra-loose fiscal and monetary policies are also expected to promote a progressive recovery from the massive cyclical downturn in business activity experienced in 2020, giving a big boost to petroleum consumption.
Global petroleum inventories have already been drawing down, and OPEC and its partners are expected to continue restricting output, ensuring stocks return to the five-year average by the middle of 2021.
As a result, portfolio managers have become more bullish towards oil prices than at any time since the end of August, before the arrival of the epidemic’s second wave.
Hedge funds and other money managers purchased the equivalent of 78 million barrels in the six most important petroleum futures and options contracts in the week ending Nov. 24.
Hedge funds are becoming increasingly bullish on the outlook for oil prices, anticipating that early deployment of coronavirus vaccines will allow a rapid resumption of more normal travel patterns.
Ultra-loose fiscal and monetary policies are also expected to promote a progressive recovery from the massive cyclical downturn in business activity experienced in 2020, giving a big boost to petroleum consumption.
Global petroleum inventories have already been drawing down, and OPEC and its partners are expected to continue restricting output, ensuring stocks return to the five-year average by the middle of 2021.
As a result, portfolio managers have become more bullish towards oil prices than at any time since the end of August, before the arrival of the epidemic’s second wave.
Hedge funds and other money managers purchased the equivalent of 78 million barrels in the six most important petroleum futures and options contracts in the week ending Nov. 24.
#Saudi ends lower on weak oil, others gain on UK vaccine nod | Reuters
Saudi ends lower on weak oil, others gain on UK vaccine nod | Reuters
Saudi shares retreated for a second straight session on Wednesday, tracking weaker oil prices, while some markets cheered Britain’s approval of Pfizer’s COVID-19 vaccine, which raised hopes of a faster-than-expected global economic recovery.
Britain became the West’s first country to formally endorse a jab it said should reach the most vulnerable people early next week.
However, oil prices slipped as the market awaited a pact from producers on output. Crude prices were hit by a surprise build in oil inventories in the United States and as OPEC and its allies created uncertainty with a two-day delay to a formal meeting to decide whether to increase production in January. [O/R]
The Saudi benchmark, which clocked its best monthly gain in four years in November, retreated 0.3%.
Food processing company Anaam International Holdings Group Co was the biggest percentage loser on the Saudi blue-chip index, falling 9.9%, while lender Riyad Bank was down more than 1%.
The Dubai and Abu Dhabi markets are shut for three days for holidays until the end of this trading week and will reopen on Sunday.
In Qatar, the benchmark closed the session almost flat. Qatar Gas Transport Nakilat Co and food processing firm Baladna were among the top gainers, up 1.6% and 4.8% respectively.
Among decliners, Qatar National Bank shed 1.6%, the top loser on the index.
The Kuwait benchmark strengthened more than 1%, with logistics company Agility Public Warehousing Co leading gains by adding 2.8%. Finance stock Ahli United rose more than 2%.
Bahrain’s benchmark rose 0.8%, boosted by a 6.5% gain in Aluminium Bahrain.
Saudi shares retreated for a second straight session on Wednesday, tracking weaker oil prices, while some markets cheered Britain’s approval of Pfizer’s COVID-19 vaccine, which raised hopes of a faster-than-expected global economic recovery.
Britain became the West’s first country to formally endorse a jab it said should reach the most vulnerable people early next week.
However, oil prices slipped as the market awaited a pact from producers on output. Crude prices were hit by a surprise build in oil inventories in the United States and as OPEC and its allies created uncertainty with a two-day delay to a formal meeting to decide whether to increase production in January. [O/R]
The Saudi benchmark, which clocked its best monthly gain in four years in November, retreated 0.3%.
Food processing company Anaam International Holdings Group Co was the biggest percentage loser on the Saudi blue-chip index, falling 9.9%, while lender Riyad Bank was down more than 1%.
The Dubai and Abu Dhabi markets are shut for three days for holidays until the end of this trading week and will reopen on Sunday.
In Qatar, the benchmark closed the session almost flat. Qatar Gas Transport Nakilat Co and food processing firm Baladna were among the top gainers, up 1.6% and 4.8% respectively.
Among decliners, Qatar National Bank shed 1.6%, the top loser on the index.
The Kuwait benchmark strengthened more than 1%, with logistics company Agility Public Warehousing Co leading gains by adding 2.8%. Finance stock Ahli United rose more than 2%.
Bahrain’s benchmark rose 0.8%, boosted by a 6.5% gain in Aluminium Bahrain.
How Biden Can Safely Help #Iran’s Economy - Bloomberg
How Biden Can Safely Help Iran’s Economy - Bloomberg
After the assassination of its top nuclear scientist last week, the leadership of the Islamic Republic is expected to hold off domestic pressures for retribution, and instead hold out for some consideration from the incoming administration of President-elect Joe Biden. The regime knows any retaliatory strike — whether directly against Israel, which it blames for Mohsen Fakhrizadeh’s killing, or more symbolically against American or Arab targets — will greatly complicate its efforts to get out of the straitjacket imposed by President Donald Trump’s “maximum pressure” campaign.
Iran desperately needs access to money to shore up an economy devastated by the combined effect of Trump’s sanctions and the pandemic. For Tehran, the immediate access to capital is a precondition for any negotiations with the new dispensation in Washington. Biden, for all that he wants a return to diplomacy, can loosen the straps only so much: His own hands are tied by strong opposition at home and pressure from American allies in the Middle East.
The best he can do in the short term is encourage Iran's access to multilateral credit—specifically, from the International Monetary Fund. Opposition from the Trump administration prevented Tehran from getting the roughly $1.5 billion in special drawing rights (SDR) to which it is entitled as a member-nation, and a $5 billion line of credit to fight the pandemic. By signaling its encouragement, Biden would give the government of President Hassan Rouhani a chance to save the Iranian economy from the immediate danger of hyperinflation.
In turn, it would give Rouhani an opportunity to demonstrate, to the U.S. and the world, that it can use external finance for government spending that serves its people, rather than line the pockets of the Islamic Revolutionary Guard Corps and its extractive businesses and foreign activities.
After the assassination of its top nuclear scientist last week, the leadership of the Islamic Republic is expected to hold off domestic pressures for retribution, and instead hold out for some consideration from the incoming administration of President-elect Joe Biden. The regime knows any retaliatory strike — whether directly against Israel, which it blames for Mohsen Fakhrizadeh’s killing, or more symbolically against American or Arab targets — will greatly complicate its efforts to get out of the straitjacket imposed by President Donald Trump’s “maximum pressure” campaign.
Iran desperately needs access to money to shore up an economy devastated by the combined effect of Trump’s sanctions and the pandemic. For Tehran, the immediate access to capital is a precondition for any negotiations with the new dispensation in Washington. Biden, for all that he wants a return to diplomacy, can loosen the straps only so much: His own hands are tied by strong opposition at home and pressure from American allies in the Middle East.
The best he can do in the short term is encourage Iran's access to multilateral credit—specifically, from the International Monetary Fund. Opposition from the Trump administration prevented Tehran from getting the roughly $1.5 billion in special drawing rights (SDR) to which it is entitled as a member-nation, and a $5 billion line of credit to fight the pandemic. By signaling its encouragement, Biden would give the government of President Hassan Rouhani a chance to save the Iranian economy from the immediate danger of hyperinflation.
In turn, it would give Rouhani an opportunity to demonstrate, to the U.S. and the world, that it can use external finance for government spending that serves its people, rather than line the pockets of the Islamic Revolutionary Guard Corps and its extractive businesses and foreign activities.
Turkey Wealth Fund sees Borsa Istanbul IPO in two years - CEO | Reuters
Turkey Wealth Fund sees Borsa Istanbul IPO in two years - CEO | Reuters
The CEO of Turkey Wealth Fund said on Tuesday he expects to launch an initial public offering for Borsa Istanbul in the next two years, a day after the fund sold 10% of its shares to the Qatar Investment Authority (QIA).
In an interview with broadcaster Bloomberg HT, Chief Executive Zafer Sonmez said the fund’s stake in the country’s exchange operator would not fall below 51%.
The implied value of Borsa Istanbul in the transaction with QIA was $2 billion, which Sonmez said was a very good value.
The CEO of Turkey Wealth Fund said on Tuesday he expects to launch an initial public offering for Borsa Istanbul in the next two years, a day after the fund sold 10% of its shares to the Qatar Investment Authority (QIA).
In an interview with broadcaster Bloomberg HT, Chief Executive Zafer Sonmez said the fund’s stake in the country’s exchange operator would not fall below 51%.
The implied value of Borsa Istanbul in the transaction with QIA was $2 billion, which Sonmez said was a very good value.
#UAE finds its voice within OPEC, complicating oil diplomacy | Reuters
UAE finds its voice within OPEC, complicating oil diplomacy | Reuters
The United Arab Emirates came out of OPEC heavyweight Saudi Arabia’s shadow this week by demanding better adherence with oil supply cuts, effectively delaying the latest strategy decision by OPEC and its allies by a few days, sources told Reuters.
The unusual move highlights the UAE’s growing role within OPEC as it seeks to boost production in the years ahead to gain market share.
It also underscores Abu Dhabi’s growing political independence from Riyadh, which became obvious this year when the UAE became the first country in the Gulf to normalise relations with Israel.
OPEC and allies led by Russia - known as OPEC+ - had been widely expected by the market to roll over existing production cuts of 7.7 million barrels per day (bpd) into January-March 2021 to tackle weak demand amid a resurgent COVID-19 pandemic.
OPEC+ sources had earlier told Reuters that Saudi Arabia was the main advocate of such a move.
The United Arab Emirates came out of OPEC heavyweight Saudi Arabia’s shadow this week by demanding better adherence with oil supply cuts, effectively delaying the latest strategy decision by OPEC and its allies by a few days, sources told Reuters.
The unusual move highlights the UAE’s growing role within OPEC as it seeks to boost production in the years ahead to gain market share.
It also underscores Abu Dhabi’s growing political independence from Riyadh, which became obvious this year when the UAE became the first country in the Gulf to normalise relations with Israel.
OPEC and allies led by Russia - known as OPEC+ - had been widely expected by the market to roll over existing production cuts of 7.7 million barrels per day (bpd) into January-March 2021 to tackle weak demand amid a resurgent COVID-19 pandemic.
OPEC+ sources had earlier told Reuters that Saudi Arabia was the main advocate of such a move.
#Saudi shares ease, other markets gain after UK's Pfizer-BioNTech vaccine approval | Reuters
Saudi shares ease, other markets gain after UK's Pfizer-BioNTech vaccine approval | Reuters
Saudi shares edged down on Wednesday, tracking lower oil, while other Gulf markets were buoyed by encouraging news in the fight against the COVID-19 pandemic as Britain became the first country in the world to approve the Pfizer-BioNTech vaccine rollout.
Britain said the vaccine developed by Pfizer and partner BioNTech will be rolled out from early next week, a boost for investors worldwide.
Oil prices extended losses, hit by a surprise build in oil inventories in the United States and as OPEC and its allies left markets in limbo by delaying a formal meeting to decide whether to increase output in January. [O/R]
The Saudi benchmark, which had achieved its best monthly gain in four years in November, eased in morning trade for a second consecutive session, edging down 0.1%
Food processing company Anaam International Holdings Group Co was the biggest faller on the Saudi blue-chip index, declining nearly 10%.
Index heavyweight Saudi Aramco fell 0.3%, while Saudi Arabia’s biggest lender National Commercial Bank shed 0.5%.
Among gainers on the Saudi benchmark, food processing firm Wafrah For Industry & Development Co added nearly 10%.
The Dubai and Abu Dhabi markets are shut for three days for holidays until the end of this trading week and will reopen on Sunday.
In Qatar, the benchmark gained 0.3% with Industries Qatar and property group Ezdan Holding putting on 0.7% and 3.5%, respectively.
The Kuwait benchmark strengthened 0.8% in morning trade, with logistics company Agility Public Warehousing Co leading the gainers, up 2.2%.
Bahrain’s benchmark added 0.8%, boosted by gains in ALuminium Bahrain, which firmed nearly 5%.
Saudi shares edged down on Wednesday, tracking lower oil, while other Gulf markets were buoyed by encouraging news in the fight against the COVID-19 pandemic as Britain became the first country in the world to approve the Pfizer-BioNTech vaccine rollout.
Britain said the vaccine developed by Pfizer and partner BioNTech will be rolled out from early next week, a boost for investors worldwide.
Oil prices extended losses, hit by a surprise build in oil inventories in the United States and as OPEC and its allies left markets in limbo by delaying a formal meeting to decide whether to increase output in January. [O/R]
The Saudi benchmark, which had achieved its best monthly gain in four years in November, eased in morning trade for a second consecutive session, edging down 0.1%
Food processing company Anaam International Holdings Group Co was the biggest faller on the Saudi blue-chip index, declining nearly 10%.
Index heavyweight Saudi Aramco fell 0.3%, while Saudi Arabia’s biggest lender National Commercial Bank shed 0.5%.
Among gainers on the Saudi benchmark, food processing firm Wafrah For Industry & Development Co added nearly 10%.
The Dubai and Abu Dhabi markets are shut for three days for holidays until the end of this trading week and will reopen on Sunday.
In Qatar, the benchmark gained 0.3% with Industries Qatar and property group Ezdan Holding putting on 0.7% and 3.5%, respectively.
The Kuwait benchmark strengthened 0.8% in morning trade, with logistics company Agility Public Warehousing Co leading the gainers, up 2.2%.
Bahrain’s benchmark added 0.8%, boosted by gains in ALuminium Bahrain, which firmed nearly 5%.
#Dubai external trade doubled ten times to $346bln since 2000 | ZAWYA MENA Edition
Dubai external trade doubled ten times to $346bln since 2000 | ZAWYA MENA Edition
Dubai non-oil external trade has doubled about ten times between 2000 and 2019 rising from AED143 billion in 2000 to AED1.271 trillion in 2019. In the first half of 2020, Dubai trade made around AED551 bn, according to trade figures released by Dubai Customs on the occasion of the UAE 49th National Day celebrations.
The figures reflected the significant role the oldest government department played in developing and enhancing Dubai and the national economy through the years.
In its long journey, Dubai Customs has gone through different stages of development. In the 1970’s, it established Customs Centres to control Dubai’s sea, air and land ports. These included coastal customs centres at Dubai Creek, Port Rashid and Jebel Ali Customs Centre.
With the development of airports, customs centres were established at Dubai International Airport, Al Maktoum Airport, Air Cargo Customs centres, among others.
Dubai non-oil external trade has doubled about ten times between 2000 and 2019 rising from AED143 billion in 2000 to AED1.271 trillion in 2019. In the first half of 2020, Dubai trade made around AED551 bn, according to trade figures released by Dubai Customs on the occasion of the UAE 49th National Day celebrations.
The figures reflected the significant role the oldest government department played in developing and enhancing Dubai and the national economy through the years.
In its long journey, Dubai Customs has gone through different stages of development. In the 1970’s, it established Customs Centres to control Dubai’s sea, air and land ports. These included coastal customs centres at Dubai Creek, Port Rashid and Jebel Ali Customs Centre.
With the development of airports, customs centres were established at Dubai International Airport, Al Maktoum Airport, Air Cargo Customs centres, among others.
Oil prices slip but traders cheer vaccine approval | Reuters
Oil prices slip but traders cheer vaccine approval | Reuters
Oil prices fell early on Wednesday but later pared some of the losses on news that Britain has become the first country in the world to approve a vaccine for use and that it will be rolled out from early next week.
Prices had been hit earlier by a surprise build in oil inventories in the United States and as OPEC and its allies left markets in limbo by delaying a formal meeting to decide whether to increase output in January.
Brent crude oil futures were down by 8 cents, or 0.2%, at $47.34 a barrel by 0743 GMT, while West Texas Intermediate crude was down by 14 cents, or 0.1%, at $44.41.
Industry data from the American Petroleum Institute showed U.S. crude inventories rose by 4.1 million barrels last week, compared with analysts’ expectations in a Reuters poll for a draw of 2.4 million barrels.
The numbers came after the Organization of the Petroleum Exporting Countries (OPEC), Russia and other allies, a group known as OPEC+, postponed talks on next year’s oil output policy to Thursday from Tuesday, according to sources.
Oil prices fell early on Wednesday but later pared some of the losses on news that Britain has become the first country in the world to approve a vaccine for use and that it will be rolled out from early next week.
Prices had been hit earlier by a surprise build in oil inventories in the United States and as OPEC and its allies left markets in limbo by delaying a formal meeting to decide whether to increase output in January.
Brent crude oil futures were down by 8 cents, or 0.2%, at $47.34 a barrel by 0743 GMT, while West Texas Intermediate crude was down by 14 cents, or 0.1%, at $44.41.
Industry data from the American Petroleum Institute showed U.S. crude inventories rose by 4.1 million barrels last week, compared with analysts’ expectations in a Reuters poll for a draw of 2.4 million barrels.
The numbers came after the Organization of the Petroleum Exporting Countries (OPEC), Russia and other allies, a group known as OPEC+, postponed talks on next year’s oil output policy to Thursday from Tuesday, according to sources.