Mohammed bin Zayed Al Nahyan, the #UAE- #Israel Peacemaker: Bloomberg 50 2020 - Bloomberg

Mohammed bin Zayed Al Nahyan, the UAE-Israel Peacemaker: Bloomberg 50 2020 - Bloomberg

The decision by the United Arab Emirates’ de facto leader could prove to be the most consequential diplomatic breakthrough in the Middle East in a generation. MBZ, as he’s widely known, has pursued an aggressive foreign policy, deploying military power (participating in wars in Yemen and Libya) and engaging in economic activity (investing in ports along the Red Sea and the Horn of Africa) to allow his tiny country to play an outsize role in regional and international affairs. Although the agreement with Israel has no timeline, it swiftly made MBZ a pioneer: Bahrain and Sudan followed the UAE’s example, and other Muslim states are said to be contemplating it, eager to get their hands on Israeli technology and military supplies and add partners to an alliance against Iran—not to mention scoring points with Washington. Their enthusiasm could grow as the economic fruits of diplomacy become evident; the agreement between the UAE and Israel is expected to lead to bilateral trade of $2 billion a year, eventually rising to $6.5 billion, according to Israel’s finance ministry.

#Qatar, #SaudiArabia Say They’re Closer to Ending Gulf Rift - Bloomberg

Qatar, Saudi Arabia Say They’re Closer to Ending Gulf Rift - Bloomberg

Saudi Arabia and Qatar said on Friday they were making progress toward ending a rift that’s divided the Gulf Arab region for more than three years, nudged by a Trump administration keen to rack up foreign policy gains in its last days.

“We are hopeful that things will move in the right direction right now,” Qatari Foreign Minister Mohammed Bin Abdulrahman Al Thani said in a virtual interview as part of the Mediterranean Dialogues conference. “We cannot predict whether it’s going to be imminent and it’s going to resolve the whole issue in one day.”

Later in the day, Saudi Arabia’s Foreign Minister Faisal bin Farhan tweeted that he was looking forward to a successful outcome to Gulf reconciliation talks mediated by the U.S. and Kuwait.

The comments offer the first tentative confirmation that a diplomatic push to end the divisions, which have disrupted trade and travel in the world’s top oil-producing region, was nearing fruition. Talk of a potential breakthrough began to circulate this week following a visit from President Donald Trump’s son-in-law Jared Kushner to the region.

Several people with knowledge of the talks said that Saudi Arabia and Qatar are close to a preliminary rapprochement that may not initially include the United Arab Emirates, Bahrain and Egypt -- the other three countries that severed diplomatic and trade ties with Qatar in June 2017. One person said a broader realignment remained a long way off as the underlying issues, such as Doha’s good relations with Tehran, remained unresolved.

Oil rises, hovers below $50/bbl on hopes for U.S. stimulus | Reuters

Oil rises, hovers below $50/bbl on hopes for U.S. stimulus | Reuters

Brent crude oil futures rose more than 1% on Friday, remaining just under $50 a barrel, as expectations of a U.S. economic stimulus package and the possibility of a vaccine for the coronavirus overrode rising supply and increased COVID-19 deaths.

A bipartisan $908 billion coronavirus aid plan gained momentum in the U.S. Congress.

Brent settled up 54 cents or 1.11% at $49.25 a barrel. During the session, the contract hit its highest since early March at $49.92. West Texas Intermediate rose 62 cents to $46.26 a barrel, after touching a high of $46.68 a barrel.

Both benchmarks gained for a fifth consecutive week, with Brent up 1.7% and U.S. crude up 1.9%.

“We’re higher, despite super bearish events - it’s all about stimulus,” said Bob Yawger, director of energy futures at Mizuho in New York. “You can’t go home short this weekend because they could sign a deal this weekend.”

The #UAE and #Israel's whirlwind honeymoon has gone beyond normalization - CNN

The UAE and Israel's whirlwind honeymoon has gone beyond normalization - CNN

"Ties between Israel and the United Arab Emirates are 'blossoming,'" a senior official traveling with US Secretary of State Mike Pompeo told reporters last month.

Blossoming is, perhaps, an understatement. Since the 1978 Camp David Accords, Israel has "normalized" relations with Egypt, Jordan (1994), Mauritania (1999), and most recently, the UAE and Bahrain. Last month Israel and Sudan also signed an agreement to normalize ties.

Yet never has the process of normalization been so fast, and pursued with such mutual enthusiasm, as between Israel and the UAE. And it goes beyond that. The UAE appears to have dropped, in practical terms, any objections to Israel's occupation of Arab lands.

The Emirates last month hosted a group of Israeli settler leaders from the West Bank, territory occupied by Israel since the 1967 war with Jordan, Syria and Egypt.

In October, it also allowed the import of wine produced by Israeli companies in the Golan Heights, also occupied by Israel since 1967.

The UAE will also finance with the US and Israel a project to "modernize" Israeli checkpoints in the West Bank used to control and monitor the movement of Palestinians.

‘The worst is behind us’: #Saudi Aramco CEO | ZAWYA MENA Edition

‘The worst is behind us’: Saudi Aramco CEO | ZAWYA MENA Edition

The oil industry is recovering from the impact of the coronavirus pandemic and “the worst is behind us,” Saudi Aramco’s President and CEO, Amin Nasser, told an award ceremony in Riyadh on Thursday.

“April was by far the worst month for our industry when oil demand fell. Such a massive drop was never seen at any time in the industry. But I believe the worst is behind us. At this moment there is a recovery taking place,” Nasser said after he was announced as this year’s winner of the annual Chemists’ Club Kavaler award.

The award, which recognizes Nasser’s work in the petrochemical industry, was presented at a virtual event on Dec. 3 and included a discussion with the official about Aramco’s strategy, outlook and key industry trends.

Accepting the award, Nasser praised Saudi Aramco’s employees, saying he wanted to share the prestige with them.

“I am proud to accept this award on behalf of the thousands of men and women of Saudi Aramco who are showing great determination and resilience in a year that has been unlike any in our lifetime. This is definitely their award, too,” he said.

Oil Advances Toward $50 After OPEC+ Clinches Compromise Deal - Bloomberg

Oil Advances Toward $50 After OPEC+ Clinches Compromise Deal - Bloomberg

Oil extended gains toward $50 a barrel after OPEC+ reached a compromise deal to gradually taper production cuts, ending days of uncertainty after cracks emerged in the alliance earlier in the week.

Futures surged 1.9% in London after closing at the highest level in nine months on Thursday. The group will start adding 500,000 barrels a day of crude to the market in January, with ministers holding monthly meetings to decide on the next steps. The deal avoided a breakdown of OPEC+ unity after a tense split between Saudi Arabia and the United Arab Emirates.

The oil futures curve, meanwhile, is signaling tighter supply and a brighter long term outlook. The prompt timespread for global benchmark Brent crude moved further into backwardation, while the nearest December contract is trading at a higher level than the same contract for December 2022.

OPEC+ agrees slight easing of oil cuts from January | Reuters

OPEC+ agrees slight easing of oil cuts from January | Reuters

OPEC and Russia on Thursday agreed to slightly ease their deep oil output cuts from January by 500,000 barrels per day but failed to find a compromise on a broader and longer term policy for the rest of next year.

The increase means the Organization of the Petroleum Exporting Countries and Russia, a group known as OPEC+, would move to cutting production by 7.2 million bpd, or 7% of global demand from January, compared with current cuts of 7.7 million bpd.

The curbs are being implemented to tackle weak oil demand amid a second coronavirus wave.

OPEC+ had been expected to extend existing cuts until at least March, after backing down from earlier plans to boost output by 2 million bpd.

But after hopes for a speedy approval of anti-virus vaccines spurred an oil price rally at the end of November, several producers started questioning the need to keep such a tight rein on oil policy, as advocated by OPEC leader Saudi Arabia.