Oil steady as COVID-19 cases, lockdowns dampen vaccination news | Reuters
Oil prices were little changed on Tuesday as the most populous U.S. state tightened its pandemic lockdown through Christmas and COVID-19 cases surged in the United States and Europe, counteracting optimism that arose over vaccine advancements.
Brent crude futures settled at $48.84 a barrel, gaining 5 cents. U.S. West Texas Intermediate (WTI) crude futures settled 16 cents lower at $45.60 a barrel.
“There’s been this back-and-forth between being concerned about the lockdowns for the next few weeks and the expectations for a vaccine coming sooner than anyone had anticipated, which is giving us support,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.
Oil prices were buoyed after the world’s first fully-tested COVID-19 vaccine shot was administered to a grandmother in Britain, but investors quickly returned their focus to ebbing fuel demand caused by the pandemic.
Tuesday, 8 December 2020
Oil dips as COVID-19 cases, lockdowns outweigh vaccination news | Reuters
Oil dips as COVID-19 cases, lockdowns outweigh vaccination news | Reuters
Oil prices edged lower on Tuesday, extending the previous session’s losses after the U.S. state of California tightened its pandemic lockdown through Christmas and COVID-19 cases surged in the United States and Europe.
Brent crude fell 3 cents to $48.76 a barrel by 10:34 a.. EST (1534 GMT), while U.S. West Texas Intermediate (WTI) crude futures lost 21 cents to $45.55. Both benchmarks retreated by about 1% on Monday.
Oil prices were briefly buoyed after the world’s first fully-tested COVID-19 vaccine shot was administered to a grandmother in Britain, but investors quickly returned their focus to ebbing fuel demand caused by the pandemic.
“Much of the weakness has associated with some slippage in risk appetite now that the bulk of the favorable vaccine news has been discounted in forcing the market to focus on a significant up-spike in coronavirus case counts,” said Jim Ritterbusch of Ritterbusch and Associates.
Oil prices edged lower on Tuesday, extending the previous session’s losses after the U.S. state of California tightened its pandemic lockdown through Christmas and COVID-19 cases surged in the United States and Europe.
Brent crude fell 3 cents to $48.76 a barrel by 10:34 a.. EST (1534 GMT), while U.S. West Texas Intermediate (WTI) crude futures lost 21 cents to $45.55. Both benchmarks retreated by about 1% on Monday.
Oil prices were briefly buoyed after the world’s first fully-tested COVID-19 vaccine shot was administered to a grandmother in Britain, but investors quickly returned their focus to ebbing fuel demand caused by the pandemic.
“Much of the weakness has associated with some slippage in risk appetite now that the bulk of the favorable vaccine news has been discounted in forcing the market to focus on a significant up-spike in coronavirus case counts,” said Jim Ritterbusch of Ritterbusch and Associates.
China Set to Bail Out Iraq with Multibillion-Dollar Oil Deal - Bloomberg
China Set to Bail Out Iraq with Multibillion-Dollar Oil Deal - Bloomberg
Iraq is poised to sign a multibillion-dollar contract with China ZhenHua Oil Co., a bailout from Beijing for the cash-strapped government which will receive money upfront in exchange for long-term oil supplies.
The deal is the latest example of China, via state-controlled trading companies and banks, lending to struggling oil producers such as Angola, Venezuela and Ecuador, with repayment in the form of oil barrels rather than cash. The crash in oil demand and prices has hammered Iraq’s budget, and the government has been struggling to pay salaries.
The Iraqi agency in charge of petroleum exports, SOMO, picked ZhenHua, according to people familiar with the matter. Iraq’s cabinet must still approve the deal, according to one of the people. Cabinet spokesman Hassan Nadhim said on Tuesday the offers were being studied and would go to the prime minister for approval.
Under the terms of a letter SOMO sent to oil traders last month, the winning bidder will buy 4 million barrels a month, or about 130,000 a day. They will pay upfront for one year of supply, which at current prices would bring in more than $2 billion, according to Bloomberg calculations. The deal runs for five years in total -- but the upfront payment is only for one year.
Iraq is poised to sign a multibillion-dollar contract with China ZhenHua Oil Co., a bailout from Beijing for the cash-strapped government which will receive money upfront in exchange for long-term oil supplies.
The deal is the latest example of China, via state-controlled trading companies and banks, lending to struggling oil producers such as Angola, Venezuela and Ecuador, with repayment in the form of oil barrels rather than cash. The crash in oil demand and prices has hammered Iraq’s budget, and the government has been struggling to pay salaries.
The Iraqi agency in charge of petroleum exports, SOMO, picked ZhenHua, according to people familiar with the matter. Iraq’s cabinet must still approve the deal, according to one of the people. Cabinet spokesman Hassan Nadhim said on Tuesday the offers were being studied and would go to the prime minister for approval.
Under the terms of a letter SOMO sent to oil traders last month, the winning bidder will buy 4 million barrels a month, or about 130,000 a day. They will pay upfront for one year of supply, which at current prices would bring in more than $2 billion, according to Bloomberg calculations. The deal runs for five years in total -- but the upfront payment is only for one year.
ADNOC launches second trading arm to fuel growth, focus on new markets, customers | ZAWYA MENA Edition
ADNOC launches second trading arm to fuel growth, focus on new markets, customers | ZAWYA MENA Edition
UAE's largest oil compnay, Abu Dhabi National Oil Company (ADNOC) has launched its second trading arm, ADNOC Global Trading (AGT), a joint venture between ADNOC (65 percent), Eni (20 percent) and OMV (15 percent) which focuses on the trading of refined products globally.
AGT is located at Abu Dhabi Global Market, alongside ADNOC Trading and ICE Futures Abu Dhabi (IFAD), which will launch Murban Futures on the 29th March 2021, subject to the completion of remaining regulatory approvals.
Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, said: “The go-live of ADNOC Global Trading marks another important milestone in the delivery of our 2030 smart growth strategy, and our focus on providing a better and broader service to our customers while driving growth and adding incremental value to our operations.
"Together with our partners Eni and OMV, our new trading entity expands the reach of our products to new markets and new customers. AGT will enhance the skills of our people by combining experienced traders with the next generation of bright home-grown talent, creating new and exciting opportunities for UAE nationals while unlocking additional revenue streams for ADNOC and the UAE,” he added.
UAE's largest oil compnay, Abu Dhabi National Oil Company (ADNOC) has launched its second trading arm, ADNOC Global Trading (AGT), a joint venture between ADNOC (65 percent), Eni (20 percent) and OMV (15 percent) which focuses on the trading of refined products globally.
AGT is located at Abu Dhabi Global Market, alongside ADNOC Trading and ICE Futures Abu Dhabi (IFAD), which will launch Murban Futures on the 29th March 2021, subject to the completion of remaining regulatory approvals.
Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, said: “The go-live of ADNOC Global Trading marks another important milestone in the delivery of our 2030 smart growth strategy, and our focus on providing a better and broader service to our customers while driving growth and adding incremental value to our operations.
"Together with our partners Eni and OMV, our new trading entity expands the reach of our products to new markets and new customers. AGT will enhance the skills of our people by combining experienced traders with the next generation of bright home-grown talent, creating new and exciting opportunities for UAE nationals while unlocking additional revenue streams for ADNOC and the UAE,” he added.
#UAE official lauds efforts to strengthen Gulf unity | Reuters
UAE official lauds efforts to strengthen Gulf unity | Reuters
The United Arab Emirates appreciates efforts by Kuwait and the United States to strengthen Gulf Arab unity, a senior Emirati official said on Tuesday in a reference to a row with Qatar that Washington says hampers a united Gulf front against Iran.
Kuwait and Saudi Arabia said last Friday that progress had been made towards resolving the dispute that has seen Saudi Arabia, the UAE, Bahrain and Egypt sever diplomatic, trade and travel ties with Qatar since mid-2017.
In the first public comment by the UAE on the matter, Minister of State for Foreign Affairs Anwar Gargash in a Twitter post also praised Riyadh’s “good endeavours on behalf of the four states” and said the UAE looked forward to a “successful” Gulf Arab summit, which is due to take place this month.
Qatar’s emir has not attended the annual summit of the Gulf Cooperation Council (GCC) since 2017 although his premier was present at last year’s gathering, that made no public mention of the dispute.
The United Arab Emirates appreciates efforts by Kuwait and the United States to strengthen Gulf Arab unity, a senior Emirati official said on Tuesday in a reference to a row with Qatar that Washington says hampers a united Gulf front against Iran.
Kuwait and Saudi Arabia said last Friday that progress had been made towards resolving the dispute that has seen Saudi Arabia, the UAE, Bahrain and Egypt sever diplomatic, trade and travel ties with Qatar since mid-2017.
In the first public comment by the UAE on the matter, Minister of State for Foreign Affairs Anwar Gargash in a Twitter post also praised Riyadh’s “good endeavours on behalf of the four states” and said the UAE looked forward to a “successful” Gulf Arab summit, which is due to take place this month.
Qatar’s emir has not attended the annual summit of the Gulf Cooperation Council (GCC) since 2017 although his premier was present at last year’s gathering, that made no public mention of the dispute.
Major Gulf markets end mixed; #Dubai index outshines | Reuters
Major Gulf markets end mixed; Dubai index outshines | Reuters
Major Gulf stock markets ended mixed on Tuesday, with Dubai stocks registering sharp gains following Emirates Airline’s projection of a busy December as travellers return for holidays.
The main share index in Dubai, the Middle East’s tourism hub, advanced 2%, with its largest developer Emaar Properties rising 3.5%, while Dubai Investments surged more than 11%.
In Abu Dhabi, the index gained 0.4%, led by a 0.3% rise in the United Arab Emirates’ largest lender First Abu Dhabi Bank and a 1.6% increase in Aldar Properties.
Saudi Arabia’s benchmark index eased 0.3%, hurt by a 0.8% fall in Al Rajhi Bank and 3.1% drop in Dr Sulaiman Al-Habib Medical Services.
The Qatari index retreated 0.7%, with most stocks in negative territory, including petrochemical firm Industries Qatar, which declined 1.8%.
On Sunday, Qatari stocks had closed higher, buoyed by hopes of a resolution to a dispute with some of the country’s Arab neighbours.
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.
The Saudi foreign minister on Friday said that resolution with Qatar seemed “within reach”.
Major Gulf stock markets ended mixed on Tuesday, with Dubai stocks registering sharp gains following Emirates Airline’s projection of a busy December as travellers return for holidays.
The main share index in Dubai, the Middle East’s tourism hub, advanced 2%, with its largest developer Emaar Properties rising 3.5%, while Dubai Investments surged more than 11%.
In Abu Dhabi, the index gained 0.4%, led by a 0.3% rise in the United Arab Emirates’ largest lender First Abu Dhabi Bank and a 1.6% increase in Aldar Properties.
Saudi Arabia’s benchmark index eased 0.3%, hurt by a 0.8% fall in Al Rajhi Bank and 3.1% drop in Dr Sulaiman Al-Habib Medical Services.
The Qatari index retreated 0.7%, with most stocks in negative territory, including petrochemical firm Industries Qatar, which declined 1.8%.
On Sunday, Qatari stocks had closed higher, buoyed by hopes of a resolution to a dispute with some of the country’s Arab neighbours.
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.
The Saudi foreign minister on Friday said that resolution with Qatar seemed “within reach”.
Wide Gulf - Riyadh Bureau - #Qatar #SaudiArabia #Kuwait tks @ahmed
Wide Gulf - Riyadh Bureau - #Qatar #SaudiArabia #Kuwait tks @ahmed
 |
| Saudi foreign minister Prince Faisal bin Farhan (Abdulhamid Hosbas/Anadolu Agency/Getty) |
Is the Gulf crisis about to be resolved? Noises from Kuwait, Riyadh and Doha all suggest that, after more than three years of impasse and near misses, we may finally have a breakthrough.
Kuwait foreign minister Sheikh Ahmed Nasser al-Mohammed al-Sabah said Friday that “fruitful talks” were recently held and all parties “affirmed their commitment to Gulf and Arab solidarity and stability”. The minister also used his brief televised statement to give a shout out to Jared Kushner, President Donald Trump’s son-in-law and envoy to the Middle East, who visited the region last week as part of the effort to end the dispute.
Saudi foreign minister Prince Faisal bin Farhan said he is “somewhat optimistic” that a resolution involving not just the kingdom but also the UAE, Bahrain and Egypt is now possible. “We’ve made significant progress in the last few days,” he said in a conference via video later that day. “We hope that this progress can lead to a final agreement which looks in reach”. His Qatari counterpart Sheikh Mohammed bin Abdulrahman on Twitter called the Kuwaiti statement “an imperative step towards resolving the GCC crisis”.
Secretary of State Mike Pompeo said via teleconference at the Manama Dialogue that his country is “very hopeful” that the row would be resolved.
It remains unclear what might be the final form of this agreement. News reports in recent days said the two sides remain far apart on many issues, but they may agree on a series of “confidence building measures” such as re-opening the land border and allowing Qatar Airways to use the kingdom’s airspace. In return, Qatar would be expected to “tone down” its Al Jazeera television network coverage.
#UAE Eases Oil Supply Cut to Asia After OPEC+ Compromise Deal - Bloomberg
UAE Eases Oil Supply Cut to Asia After OPEC+ Compromise Deal - Bloomberg
The United Arab Emirates will provide Asian oil buyers with a little more crude next month after OPEC+ reached a compromise deal on cuts.
While OPEC’s third-largest producer will still reduce supply to Asia in January, the curbs won’t be as deep as this month in percentage terms. Abu Dhabi National Oil Co. plans to cut contractual volumes for its flagship Murban crude by 20%, and trim Upper Zakum and Das by 15%, according to people who were notified by the company. That compares with a 20% reduction for all grades loading in December.
The United Arab Emirates will provide Asian oil buyers with a little more crude next month after OPEC+ reached a compromise deal on cuts.
While OPEC’s third-largest producer will still reduce supply to Asia in January, the curbs won’t be as deep as this month in percentage terms. Abu Dhabi National Oil Co. plans to cut contractual volumes for its flagship Murban crude by 20%, and trim Upper Zakum and Das by 15%, according to people who were notified by the company. That compares with a 20% reduction for all grades loading in December.
OPEC+ agreed last week to gradually increase supply from January after almost a week of fraught negotiations and heightened tension between Saudi Arabia and the UAE. Under the agreement, the UAE is able to pump an extra 38,000 barrels a day in January, compared with its August-December output. Adnoc is also planning to trim supplies of Umm Lulu by 5% next month.
Adnoc’s press office declined to comment on the matter.
Adnoc’s press office declined to comment on the matter.
#UAE News: Morgan Stanley Says #Dubai Builder Emaar Faces Prisoner’s Dilemma - Bloomberg
UAE News: Morgan Stanley Says Dubai Builder Emaar Faces Prisoner’s Dilemma - Bloomberg
Dubai’s largest property developer faces a quandary heading into 2021, according to Morgan Stanley.
Emaar Properties PJSC can stop new projects, which would relieve Dubai’s over-supplied property sector but risk the company losing market share. Or it can resume them, bolstering its position relative to competitors while saturating the market even more.
The company “faces a prisoner’s dilemma,” Morgan Stanley equity analyst Katherine Carpenter said Tuesday.
Its subsidiary Emaar Development PJSC will probably “choose a suboptimal outcome, resuming launches next year,” rather than maximizing shareholder value by waiting for another two years, she said.
The U.S. bank’s note came a day after Mohamed Alabbar, chairman of both companies, said he’s stopping new developments.
Dubai’s largest property developer faces a quandary heading into 2021, according to Morgan Stanley.
Emaar Properties PJSC can stop new projects, which would relieve Dubai’s over-supplied property sector but risk the company losing market share. Or it can resume them, bolstering its position relative to competitors while saturating the market even more.
The company “faces a prisoner’s dilemma,” Morgan Stanley equity analyst Katherine Carpenter said Tuesday.
Its subsidiary Emaar Development PJSC will probably “choose a suboptimal outcome, resuming launches next year,” rather than maximizing shareholder value by waiting for another two years, she said.
The U.S. bank’s note came a day after Mohamed Alabbar, chairman of both companies, said he’s stopping new developments.
#UAE News: Emirates Expects Busy December as Travelers Return For Holidays - Bloomberg
UAE News: Emirates Expects Busy December as Travelers Return For Holidays - Bloomberg
Emirates expects more than 200,000 passengers to travel through its Dubai hub during the festive season, a rare piece of good news for the the world’s largest long-haul carrier in a year severely impacted by the coronavirus.
The airline’s busiest day will be on Dec. 11 and high traffic will run through Dec. 21, the Dubai-based carrier said in a statement on Tuesday. Still, the number of passengers is down from about 300,000 in the same period last year.
Emirates said more than 200,000 passengers will be arriving on its flights into Dubai -- the Middle East’s trade and travel hub -- for the holidays, compared with more than twice as many last year.
The airline has been particularly hard hit by the pandemic because its business model is built around the biggest category of jets ferrying passengers between all corners of the globe. Long-haul travel is widely expected by the industry to be the slowest to recover from the crisis as passengers shy away from lengthy journeys and virus hotspots.
Emirates expects more than 200,000 passengers to travel through its Dubai hub during the festive season, a rare piece of good news for the the world’s largest long-haul carrier in a year severely impacted by the coronavirus.
The airline’s busiest day will be on Dec. 11 and high traffic will run through Dec. 21, the Dubai-based carrier said in a statement on Tuesday. Still, the number of passengers is down from about 300,000 in the same period last year.
Emirates said more than 200,000 passengers will be arriving on its flights into Dubai -- the Middle East’s trade and travel hub -- for the holidays, compared with more than twice as many last year.
The airline has been particularly hard hit by the pandemic because its business model is built around the biggest category of jets ferrying passengers between all corners of the globe. Long-haul travel is widely expected by the industry to be the slowest to recover from the crisis as passengers shy away from lengthy journeys and virus hotspots.
#UAE Business Conditions Worsen for Second Straight Month - Bloomberg
UAE Business Conditions Worsen for Second Straight Month - Bloomberg:
Business conditions in the United Arab Emirates deteriorated for a second straight month in November amid subdued demand.
Non-oil private sector activity in the Gulf nation worsened last month partly due to the first decline in output since May, weak market conditions and lower customer numbers, according to IHS Markit. Its Purchasing Managers’ Index was unchanged from October at 49.5, staying below the 50 mark that separates contraction from growth.
“The latest data signalled a renewed decline in output across the non-oil economy in the UAE during November,” according to David Owen, economist at IHS Markit. “The sector continued to suffer from weak demand which, despite partly recovering during the summer, is reportedly still much softer than prior to the Covid-19 pandemic.”
Business conditions in the United Arab Emirates deteriorated for a second straight month in November amid subdued demand.
Non-oil private sector activity in the Gulf nation worsened last month partly due to the first decline in output since May, weak market conditions and lower customer numbers, according to IHS Markit. Its Purchasing Managers’ Index was unchanged from October at 49.5, staying below the 50 mark that separates contraction from growth.
“The latest data signalled a renewed decline in output across the non-oil economy in the UAE during November,” according to David Owen, economist at IHS Markit. “The sector continued to suffer from weak demand which, despite partly recovering during the summer, is reportedly still much softer than prior to the Covid-19 pandemic.”
- Employment fell last month at the slowest pace since February as some firms noted recalling previously-employed staff, while new orders grew “only slightly”
- Business confidence for growth prospects worsened with companies predicting a decline in output for the first time in the eight-and-a-half-year series history
- Demand conditions were subdued as recovery in activity after the Covid-19 lockdown stalled, while concerns about a renewed spike in virus cases intensified
- New business volumes registered a marginal uptick, though the increase was “only just offsetting the decline seen in the previous survey period”
- Strict lockdown measures in Europe led to a fall in new orders from foreign clients
- Purchase prices dropped for the first time in five months, accompanied by a drop in staff costs
- Pressure on supply chains eased after a slight increase in lead times during the previous month
#Saudi's Jadwa Investment crosses $8bln in investment advisory | ZAWYA MENA Edition
Saudi's Jadwa Investment crosses $8bln in investment advisory | ZAWYA MENA Edition
Jadwa Investment, a leading regional investment management and advisory firm, has set a new milestone for its investment advisory practice by crossing SR30 billion in assets under advisement (AUA) in 2020.
This represents a significant increase over the firm’s AUA of SR13.4 billion at year end 2019. The introduction of investment advisory to Jadwa’s longstanding investment management services has also effectively doubled the firm’s total client assets, which currently stand at SR 60 billion.
Investment advisory is a nascent field with strong growth potential in Saudi Arabia and the GCC. In a market dominated by investment managers, institutional clients and non-profit endowments often do not have proper access to independent advice on investing across asset classes and geographies.
Institutional investment advisors can therefore offer clients additional depth and breadth of expertise, independent advice, and cost-effective access to best-in-class managers made possible by the scale achieved through the aggregate volume of AUA across clients.
Jadwa Investment, a leading regional investment management and advisory firm, has set a new milestone for its investment advisory practice by crossing SR30 billion in assets under advisement (AUA) in 2020.
This represents a significant increase over the firm’s AUA of SR13.4 billion at year end 2019. The introduction of investment advisory to Jadwa’s longstanding investment management services has also effectively doubled the firm’s total client assets, which currently stand at SR 60 billion.
Investment advisory is a nascent field with strong growth potential in Saudi Arabia and the GCC. In a market dominated by investment managers, institutional clients and non-profit endowments often do not have proper access to independent advice on investing across asset classes and geographies.
Institutional investment advisors can therefore offer clients additional depth and breadth of expertise, independent advice, and cost-effective access to best-in-class managers made possible by the scale achieved through the aggregate volume of AUA across clients.
#AbuDhabi's ADIA sees China, India as key growth drivers | Reuters
Abu Dhabi's ADIA sees China, India as key growth drivers | Reuters
Abu Dhabi Investment Authority (ADIA), the United Arab Emirates’ biggest sovereign wealth fund, said in its 2019 annual review it saw China and India as key drivers of global economic growth, and climate change and data centres as investment opportunities.
ADIA, which manages capital on behalf of the oil rich Abu Dhabi government, does not disclose the value of its assets but financial advisory boutique Global SWF, which specialises in sovereign funds, has put them at $710 billion this year.
In 2019, ADIA achieved 20-year and 30-year annualised rates of return of 4.8% and 6.6% respectively compared to 5.4% and 6.5% in 2018, it said in its report, published on Tuesday.
“At ADIA, we view climate change as an opportunity. We already routinely incorporate climate change considerations into all of our investment proposals, and have been steadily expanding our exposure to renewable energy,” Managing Director Hamed bin Zayed al-Nahyan said in the report.
“On a geographic basis, we continue to see China and India as key drivers of global growth in the years to come,” he said, adding that African countries are among those offering the greatest potential for long-term investors.
Abu Dhabi Investment Authority (ADIA), the United Arab Emirates’ biggest sovereign wealth fund, said in its 2019 annual review it saw China and India as key drivers of global economic growth, and climate change and data centres as investment opportunities.
ADIA, which manages capital on behalf of the oil rich Abu Dhabi government, does not disclose the value of its assets but financial advisory boutique Global SWF, which specialises in sovereign funds, has put them at $710 billion this year.
In 2019, ADIA achieved 20-year and 30-year annualised rates of return of 4.8% and 6.6% respectively compared to 5.4% and 6.5% in 2018, it said in its report, published on Tuesday.
“At ADIA, we view climate change as an opportunity. We already routinely incorporate climate change considerations into all of our investment proposals, and have been steadily expanding our exposure to renewable energy,” Managing Director Hamed bin Zayed al-Nahyan said in the report.
“On a geographic basis, we continue to see China and India as key drivers of global growth in the years to come,” he said, adding that African countries are among those offering the greatest potential for long-term investors.
#UAE's non-oil business activity contracts in November over weak demand: PMI | ZAWYA MENA Edition
UAE's non-oil business activity contracts in November over weak demand: PMI | ZAWYA MENA Edition
The UAE non-oil private sector economy suffered a further deterioration in business conditions during November, latest PMI data showed, in part caused by the first decline in activity since May.
The seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI), which covers manufacturing and services, stood at 49.5 in November, unchanged from October and staying below the 50.0 mark that separates growth from contraction.
David Owen, Economist at IHS Markit, said: “Notably, the latest data signalled a renewed decline in output across the non-oil economy in the UAE during November. The sector continued to suffer from weak demand which, despite a partial recovery, is reportedly still much softer than prior to the COVID-19 pandemic.”
The October reading signalled that the UAE non-oil economy is struggling to maintain a robust recovery from the COVID-19 lockdown earlier in the year.
Firms continued to struggle amid subdued market conditions and lower customer numbers than seen prior to the coronavirus disease 2019 (COVID-19) pandemic. New orders grew during the month, but only slightly, whereas more positively employment fell at slowest rate since February, IHS Markit said.
The UAE non-oil private sector economy suffered a further deterioration in business conditions during November, latest PMI data showed, in part caused by the first decline in activity since May.
The seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI), which covers manufacturing and services, stood at 49.5 in November, unchanged from October and staying below the 50.0 mark that separates growth from contraction.
David Owen, Economist at IHS Markit, said: “Notably, the latest data signalled a renewed decline in output across the non-oil economy in the UAE during November. The sector continued to suffer from weak demand which, despite a partial recovery, is reportedly still much softer than prior to the COVID-19 pandemic.”
The October reading signalled that the UAE non-oil economy is struggling to maintain a robust recovery from the COVID-19 lockdown earlier in the year.
Firms continued to struggle amid subdued market conditions and lower customer numbers than seen prior to the coronavirus disease 2019 (COVID-19) pandemic. New orders grew during the month, but only slightly, whereas more positively employment fell at slowest rate since February, IHS Markit said.
Oil extend losses as gloom grows over soaring COVID-19 cases, lockdowns | Reuters
Oil extend losses as gloom grows over soaring COVID-19 cases, lockdowns | Reuters
Oil prices fell on Tuesday, adding to losses from the previous session that came as California tightened its pandemic lockdown through Christmas and coronavirus cases continued to surge in the United States and Europe.
Brent crude futures fell 51 cents, or 1.1%, to $48.28 a barrel by 0744 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 45 cents or 1%, to $45.31 a barrel. Both benchmark contracts lost around 1% on Monday.
Globally, a sharp rise in coronavirus cases has led to a string of renewed lockdowns, including strict measures in the U.S. state of California as well as Germany and South Korea.
“The pandemic situation is continuing to be very disruptive in quite a few places in the U.S. and parts of Europe. That’s impacting sentiment on demand near term,” said Lachlan Shaw, National Australia Bank’s head of commodity research.
California on Monday required most of the state to close shop and stay at home under a new order which will last at least three weeks.
Oil prices fell on Tuesday, adding to losses from the previous session that came as California tightened its pandemic lockdown through Christmas and coronavirus cases continued to surge in the United States and Europe.
Brent crude futures fell 51 cents, or 1.1%, to $48.28 a barrel by 0744 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 45 cents or 1%, to $45.31 a barrel. Both benchmark contracts lost around 1% on Monday.
Globally, a sharp rise in coronavirus cases has led to a string of renewed lockdowns, including strict measures in the U.S. state of California as well as Germany and South Korea.
“The pandemic situation is continuing to be very disruptive in quite a few places in the U.S. and parts of Europe. That’s impacting sentiment on demand near term,” said Lachlan Shaw, National Australia Bank’s head of commodity research.
California on Monday required most of the state to close shop and stay at home under a new order which will last at least three weeks.
MIDEAST STOCKS-Major Gulf markets fall as financials dip | Nasdaq
MIDEAST STOCKS-Major Gulf markets fall as financials dip | Nasdaq
Major stock markets in the Gulf fell in early trade on Tuesday, hurt by losses in banking shares, with Qatari stocks falling the most.
Saudi Arabia's benchmark index .TASI dropped 0.3%, with Al Rajhi Bank 1120.SE losing 0.4% and petrochemical firm Saudi Basic Industries 2010.SE declining 0.8%.
Dubai's main share index .DFMGI lost 0.2%, hurt by a 1.4% fall in its largest lender Emirates NBD Bank ENBD.DU, while blue-chip developer Emaar Properties EMAR.DU was down 0.8%.
Emaar, which counts Dubai's state fund as a major shareholder, has halted new building work after a construction boom in recent years led to oversupply in the Gulf city, its chairman said on Monday.
It was not immediately clear when Emaar had ceased new building work, although Reuters had reported in April citing sources, that Emaar had suspended work on major new projects.
In Abu Dhabi, the index .ADI eased 0.1%, with the country's largest lender First ABu Dhabi Bank FAB.AD falling 0.3%.
The Qatari index .QSI fell 0.6%, on track to extend losses from the previous session, as most of the stocks were in negative territory including Qatar National Bank QNBK.QA, which retreated 1.4%.
On Sunday, Qatari stocks had closed higher buoyed by hopes of a resolution to a dispute with some of the country's Arab neighbours.
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.
The Saudi foreign minister on Friday said that resolution with Qatar seemed "within reach".
Major stock markets in the Gulf fell in early trade on Tuesday, hurt by losses in banking shares, with Qatari stocks falling the most.
Saudi Arabia's benchmark index .TASI dropped 0.3%, with Al Rajhi Bank 1120.SE losing 0.4% and petrochemical firm Saudi Basic Industries 2010.SE declining 0.8%.
Dubai's main share index .DFMGI lost 0.2%, hurt by a 1.4% fall in its largest lender Emirates NBD Bank ENBD.DU, while blue-chip developer Emaar Properties EMAR.DU was down 0.8%.
Emaar, which counts Dubai's state fund as a major shareholder, has halted new building work after a construction boom in recent years led to oversupply in the Gulf city, its chairman said on Monday.
It was not immediately clear when Emaar had ceased new building work, although Reuters had reported in April citing sources, that Emaar had suspended work on major new projects.
In Abu Dhabi, the index .ADI eased 0.1%, with the country's largest lender First ABu Dhabi Bank FAB.AD falling 0.3%.
The Qatari index .QSI fell 0.6%, on track to extend losses from the previous session, as most of the stocks were in negative territory including Qatar National Bank QNBK.QA, which retreated 1.4%.
On Sunday, Qatari stocks had closed higher buoyed by hopes of a resolution to a dispute with some of the country's Arab neighbours.
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.
The Saudi foreign minister on Friday said that resolution with Qatar seemed "within reach".
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