Doha Stocks Rally on Saudi Arabia, Qatar Talks: Inside EM - Bloomberg
Stocks in Doha rallied after Saudi Arabia and Qatar said they were making progress toward ending a three-year long rift, providing the latest spur to a region being buttressed by a jump in oil prices and improved investor sentiment toward emerging markets.
Qatar’s benchmark QE Index gained as much as 1.8%, with all but one of its 20 members rising. Equities gauges in Dubai and Abu Dhabi also jumped as trading resumed after a holiday in the United Arab Emirates.
Shares in Doha had slumped in 2017 after countries including Saudi Arabia and the United Arab Emirates severed ties with the gas-rich nation. Qatar’s Foreign Minister said on Friday his country is “hopeful that things will move in the right direction,” and his Saudi counterpart said he was looking forward to a successful outcome to talks mediated by the U.S. and Kuwait.
Progress in talks between the two countries comes amid increased investor appetite for riskier assets, driven largely by signs of further progress toward the rollout of coronavirus vaccines and optimism over a potential breakthrough in U.S. stimulus talks. Oil prices have also rallied after support from an OPEC+ deal.
A potential reconciliation between Qatar and Saudi Arabia adds a positive note to the market, said Harshjit Oza, the head of research at Shuaa Securities in Abu Dhabi. He said the positive trend for oil prices and possible U.S. stimulus should further support stocks in the region this week.
Sunday 6 December 2020
Oil News: Saudis Raise Crude Pricing to Asia as Vaccines Buoy Oil Market - Bloomberg
Oil News: Saudis Raise Crude Pricing to Asia as Vaccines Buoy Oil Market - Bloomberg
Saudi Arabia raised oil pricing for customers in its main market of Asia after optimism over coronavirus vaccines caused crude prices to rise to an eight-month high last week.
The increase, the biggest in five months, indicates the world’s largest oil exporter is confident global energy demand is strong enough to absorb a small boost in output from OPEC+ members next month and that markets will remain tight even with parts of Europe and the U.S. in lockdown.
The Saudis lowered prices in September, October and December as virus cases surged, crimping demand for crude demand.
This time, state producer Saudi Aramco raised pricing for Arab Light crude for Asia by 80 cents a barrel to 30 cents above the benchmark. Aramco had been expected to increase pricing for the grade by 65 cents, according to a Bloomberg survey of seven traders and refiners.
Saudi Arabia raised oil pricing for customers in its main market of Asia after optimism over coronavirus vaccines caused crude prices to rise to an eight-month high last week.
The increase, the biggest in five months, indicates the world’s largest oil exporter is confident global energy demand is strong enough to absorb a small boost in output from OPEC+ members next month and that markets will remain tight even with parts of Europe and the U.S. in lockdown.
The Saudis lowered prices in September, October and December as virus cases surged, crimping demand for crude demand.
This time, state producer Saudi Aramco raised pricing for Arab Light crude for Asia by 80 cents a barrel to 30 cents above the benchmark. Aramco had been expected to increase pricing for the grade by 65 cents, according to a Bloomberg survey of seven traders and refiners.
OPEC: Oil Markets Need a SWAT Team. They Got 23 Battalions - Bloomberg
OPEC: Oil Markets Need a SWAT Team. They Got 23 Battalions - Bloomberg
A little over a week ago I wrote that oil producers need a mechanism allowing them to respond quickly to changes in the oil market that could be both big and fast. I’m pleased to see that’s what they’ve tried to create, even if it isn’t quite what I had in mind.
My colleague Alaric Nightingale suggested the OPEC+ alliance should assemble a small SWAT team that could take swift, tactical action. Instead, it has decided to mobilize its entire army as the rapid-response unit.
It did so at the end of another week of fractious meetings, which concluded with a signature OPEC+ compromise that its 23 members could all sign on to. The group, which includes Saudi Arabia, Russia, Iraq and the United Arab Emirates, agreed to raise its collective output by 500,000 barrels a day from Jan. 1.
So far, so good. It wasn’t the three-month delay to raising output that markets had been expecting, but neither was it the imminent return of 1.9 million barrels a day envisaged under the deal struck in April. Then came the kicker: For the foreseeable future, the oil ministers will meet during the first week of each month to decide on subsequent action — all 23 of them. This after they’d only just shown us how unwieldy that can get. Let’s hope this doesn’t become a roadmap for these new monthly powwows.
Monday’s virtual gathering of the 13 OPEC ministers broke up without agreement, the bigger OPEC+ meeting was delayed by two days and then by another two hours as the start time approached. The intervening days and hours were used for a sort of virtual shuttle diplomacy to try to find a deal everyone could accept.
A little over a week ago I wrote that oil producers need a mechanism allowing them to respond quickly to changes in the oil market that could be both big and fast. I’m pleased to see that’s what they’ve tried to create, even if it isn’t quite what I had in mind.
My colleague Alaric Nightingale suggested the OPEC+ alliance should assemble a small SWAT team that could take swift, tactical action. Instead, it has decided to mobilize its entire army as the rapid-response unit.
It did so at the end of another week of fractious meetings, which concluded with a signature OPEC+ compromise that its 23 members could all sign on to. The group, which includes Saudi Arabia, Russia, Iraq and the United Arab Emirates, agreed to raise its collective output by 500,000 barrels a day from Jan. 1.
So far, so good. It wasn’t the three-month delay to raising output that markets had been expecting, but neither was it the imminent return of 1.9 million barrels a day envisaged under the deal struck in April. Then came the kicker: For the foreseeable future, the oil ministers will meet during the first week of each month to decide on subsequent action — all 23 of them. This after they’d only just shown us how unwieldy that can get. Let’s hope this doesn’t become a roadmap for these new monthly powwows.
Monday’s virtual gathering of the 13 OPEC ministers broke up without agreement, the bigger OPEC+ meeting was delayed by two days and then by another two hours as the start time approached. The intervening days and hours were used for a sort of virtual shuttle diplomacy to try to find a deal everyone could accept.
#Qatar Insurance's medical unit seeks to raise $180 million through share listing | Reuters
Qatar Insurance's medical unit seeks to raise $180 million through share listing | Reuters
Qatar Insurance Co’s QLM Life and Medical Insurance Co plans to list on the local stock exchange and raise 659.4 million riyals ($180 million) in an initial public offering.
The company, the largest provider of group medical insurance in Qatar, is offering 210 million shares, or 60% of its outstanding stock, at 3.15 riyals per shares, Qatar Insurance said in a statement.
QIC will keep a 25% stake in QLM after the listing and with other founders will have a combined 40% stake in the company, it said in a statement.
Subscription for the deal will open on Dec. 19 and the offer will close on Dec 23. Anchor investors such the General Retirement and Social Insurance Authority, Doha Insurance Group QPSC and Qatar Ports Management Co will subscribe for a total of 52.5 shares or 15% of the company’s share capital.
Qatar Insurance Co’s QLM Life and Medical Insurance Co plans to list on the local stock exchange and raise 659.4 million riyals ($180 million) in an initial public offering.
The company, the largest provider of group medical insurance in Qatar, is offering 210 million shares, or 60% of its outstanding stock, at 3.15 riyals per shares, Qatar Insurance said in a statement.
QIC will keep a 25% stake in QLM after the listing and with other founders will have a combined 40% stake in the company, it said in a statement.
Subscription for the deal will open on Dec. 19 and the offer will close on Dec 23. Anchor investors such the General Retirement and Social Insurance Authority, Doha Insurance Group QPSC and Qatar Ports Management Co will subscribe for a total of 52.5 shares or 15% of the company’s share capital.
NMC founder challenges Indian immigration's move to prevent him flying to #UAE | Reuters
NMC founder challenges Indian immigration's move to prevent him flying to UAE | Reuters
The founder of troubled hospital operator NMC Health has filed a legal challenge against a move by Indian immigration authorities to prevent him from departing to the United Arab Emirates (UAE) last month, according to his court petition seen by Reuters.
BR Shetty’s NMC, listed in London and UAE’s biggest hospital group, went into administration in April following months of turmoil over its finances and the company’s disclosure that it had $6.6 billion (4.9 billion pounds) in debt, well above its earlier estimates.
Shetty had said last month he planned to return to the UAE and denied reports he had fled the country after the hospital group’s implosion.
His petition, filed in the high court in the southern Indian state of Karnataka on Nov. 30, said immigration officials at Bengaluru airport stopped him boarding a flight to the UAE on Nov 14, “without assigning any reasons whatsoever”.
Shetty said in the petition that he then asked the immigration department why he was stopped and for permission to travel abroad but had not heard from them since.
The founder of troubled hospital operator NMC Health has filed a legal challenge against a move by Indian immigration authorities to prevent him from departing to the United Arab Emirates (UAE) last month, according to his court petition seen by Reuters.
BR Shetty’s NMC, listed in London and UAE’s biggest hospital group, went into administration in April following months of turmoil over its finances and the company’s disclosure that it had $6.6 billion (4.9 billion pounds) in debt, well above its earlier estimates.
Shetty had said last month he planned to return to the UAE and denied reports he had fled the country after the hospital group’s implosion.
His petition, filed in the high court in the southern Indian state of Karnataka on Nov. 30, said immigration officials at Bengaluru airport stopped him boarding a flight to the UAE on Nov 14, “without assigning any reasons whatsoever”.
Shetty said in the petition that he then asked the immigration department why he was stopped and for permission to travel abroad but had not heard from them since.
Gulf Stocks Rally on #SaudiArabia, #Qatar Talks: Inside EM - Bloomberg
Gulf Stocks Rally on Saudi Arabia, Qatar Talks: Inside EM - Bloomberg
Middle East stocks rallied after Saudi Arabia and Qatar said they were making progress toward ending a three-year long rift, providing the latest spur to a region being buttressed by a jump in oil prices and improved investor sentiment toward emerging markets.
Qatar’s benchmark QE Index gained as much as 1.8%, with all but one of its 20 members rising. Equities gauges in Dubai and Abu Dhabi also climbed as trading resumed after a holiday in the United Arab Emirates.
Shares in Doha had slumped in 2017 after countries including Saudi Arabia and the United Arab Emirates severed ties with the gas-rich nation. Qatar’s Foreign Minister said on Friday his country is “hopeful that things will move in the right direction,” and his Saudi counterpart said he was looking forward to a successful outcome to talks mediated by the U.S. and Kuwait.
Progress in talks between the two countries comes amid increased investor appetite for riskier assets, driven largely by signs of further progress towards the rollout of coronavirus vaccines and optimism over a potential breakthrough in U.S. stimulus talks. Oil prices have also rallied after support from an OPEC+ deal.
A potential reconciliation between Qatar and Saudi Arabia adds a positive note to the market, said Harshjit Oza, the head of research at Shuaa Securities in Abu Dhabi. He said the positive trend for oil prices and possible U.S. stimulus should further support stocks in the region this week.
Middle East stocks rallied after Saudi Arabia and Qatar said they were making progress toward ending a three-year long rift, providing the latest spur to a region being buttressed by a jump in oil prices and improved investor sentiment toward emerging markets.
Qatar’s benchmark QE Index gained as much as 1.8%, with all but one of its 20 members rising. Equities gauges in Dubai and Abu Dhabi also climbed as trading resumed after a holiday in the United Arab Emirates.
Shares in Doha had slumped in 2017 after countries including Saudi Arabia and the United Arab Emirates severed ties with the gas-rich nation. Qatar’s Foreign Minister said on Friday his country is “hopeful that things will move in the right direction,” and his Saudi counterpart said he was looking forward to a successful outcome to talks mediated by the U.S. and Kuwait.
Progress in talks between the two countries comes amid increased investor appetite for riskier assets, driven largely by signs of further progress towards the rollout of coronavirus vaccines and optimism over a potential breakthrough in U.S. stimulus talks. Oil prices have also rallied after support from an OPEC+ deal.
A potential reconciliation between Qatar and Saudi Arabia adds a positive note to the market, said Harshjit Oza, the head of research at Shuaa Securities in Abu Dhabi. He said the positive trend for oil prices and possible U.S. stimulus should further support stocks in the region this week.
#Oman Starts New Energy Company as It Seeks to Leverage Oil Block - Bloomberg
Oman Starts New Energy Company as It Seeks to Leverage Oil Block - Bloomberg
Oman established a new government-owned energy company as it seeks to use its largest oil block to raise debt.
The firm, to be called Energy Development Oman, will own a shareholding in Petroleum Development Oman LLC as well as an interest in Block 6, according to a government gazette on Sunday. The company will “undertake hydrocarbon exploration and production operations” and can borrow money “in any manner,” according to the gazette.
Energy Development Oman will also be able to invest abroad and deal in renewable-energy products.
Bloomberg reported last month that Oman, which is struggling to finance a soaring budget deficit, planned to transfer its 60% stake in Block 6 from Petroleum Development Oman to a new company, which would try to issue around $3 billion of bonds in the first half of 2021. JPMorgan Chase & Co. is advising the government on the plan, according to a person familiar with the matter.
Oman established a new government-owned energy company as it seeks to use its largest oil block to raise debt.
The firm, to be called Energy Development Oman, will own a shareholding in Petroleum Development Oman LLC as well as an interest in Block 6, according to a government gazette on Sunday. The company will “undertake hydrocarbon exploration and production operations” and can borrow money “in any manner,” according to the gazette.
Energy Development Oman will also be able to invest abroad and deal in renewable-energy products.
Bloomberg reported last month that Oman, which is struggling to finance a soaring budget deficit, planned to transfer its 60% stake in Block 6 from Petroleum Development Oman to a new company, which would try to issue around $3 billion of bonds in the first half of 2021. JPMorgan Chase & Co. is advising the government on the plan, according to a person familiar with the matter.
OPEC Wrangle Puts #UAE’s Ambitions on Display - Bloomberg
OPEC Wrangle Puts UAE’s Ambitions on Display - Bloomberg
Just days before a high-stakes OPEC meeting to support an oil market ravaged by coronavirus, the United Arab Emirates’ state oil company told the world it planned to spend $122 billion to boost production capacity.
That set the stage for a standoff at a meeting of the cartel this week. A compromise was struck but ambitious plans to maximize energy wealth may keep stirring tension—in particular with its largest neighbor Saudi Arabia.
The UAE’s reinvigorated pursuit of petrodollars plays into a wider shift in the dynamic between Abu Dhabi Crown Prince Sheikh Mohammed Bin Zayed and Saudi Arabia’s Crown Prince Mohammed bin Salman over who in the region holds sway on the international stage.
For years, the two countries moved in lockstep on both oil and foreign policy, yet they have diverged in recent months on both. They split over the war in Yemen, then the UAE asserted itself with its landmark deal with Israel in September. They also have their differences over efforts to ostracize Qatar, with a U.S. brokered deal to end the rift including only Saudi Arabia.
Just days before a high-stakes OPEC meeting to support an oil market ravaged by coronavirus, the United Arab Emirates’ state oil company told the world it planned to spend $122 billion to boost production capacity.
That set the stage for a standoff at a meeting of the cartel this week. A compromise was struck but ambitious plans to maximize energy wealth may keep stirring tension—in particular with its largest neighbor Saudi Arabia.
The UAE’s reinvigorated pursuit of petrodollars plays into a wider shift in the dynamic between Abu Dhabi Crown Prince Sheikh Mohammed Bin Zayed and Saudi Arabia’s Crown Prince Mohammed bin Salman over who in the region holds sway on the international stage.
For years, the two countries moved in lockstep on both oil and foreign policy, yet they have diverged in recent months on both. They split over the war in Yemen, then the UAE asserted itself with its landmark deal with Israel in September. They also have their differences over efforts to ostracize Qatar, with a U.S. brokered deal to end the rift including only Saudi Arabia.
Mideast stocks: #Qatar leads major markets higher after progress on Gulf rift | Reuters
Mideast stocks: Qatar leads major markets higher after progress on Gulf rift | Reuters
Major stock markets in the Gulf traded higher early on Sunday, with Qatar’s index leading the gains following a report that a resolution to a dispute with some of the country’s Arab neighbours seemed “within reach”.
In Qatar, the main index advanced 1.7% with all the shares in the index were in positive territory including Qatar National Bank, the Gulf’s largest lender, which was up 1.6%.
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt have imposed a diplomatic, trade and travel embargo on Qatar since mid-2017, accusing Doha of supporting terrorism.
Qatar denies the charges and says the embargo aims to undermine its sovereignty.
Dubai’s main share index gained 1.4%, buoyed by 4.4% jump in blue-chip developer Emaar Properties.
The Abu Dhabi index rose 0.8%, led by a 1.6% gain in the country’s largest lender First Abu Dhabi Bank.
Markets in the United Arab Emirates were open after a three-session break.
Saudi Arabia’s benchmark index edged up 0.3%, on track to end three sessions of losses, with Al Rajhi Bank rising 0.4%.
Major stock markets in the Gulf traded higher early on Sunday, with Qatar’s index leading the gains following a report that a resolution to a dispute with some of the country’s Arab neighbours seemed “within reach”.
In Qatar, the main index advanced 1.7% with all the shares in the index were in positive territory including Qatar National Bank, the Gulf’s largest lender, which was up 1.6%.
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt have imposed a diplomatic, trade and travel embargo on Qatar since mid-2017, accusing Doha of supporting terrorism.
Qatar denies the charges and says the embargo aims to undermine its sovereignty.
Dubai’s main share index gained 1.4%, buoyed by 4.4% jump in blue-chip developer Emaar Properties.
The Abu Dhabi index rose 0.8%, led by a 1.6% gain in the country’s largest lender First Abu Dhabi Bank.
Markets in the United Arab Emirates were open after a three-session break.
Saudi Arabia’s benchmark index edged up 0.3%, on track to end three sessions of losses, with Al Rajhi Bank rising 0.4%.
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