Oil prices steady after six weeks of gains, pressured by glut | Reuters
Oil prices were little changed in choppy trade on Monday as persistent oversupply in the market largely offset hopes that a rollout of coronavirus vaccines will lift global fuel demand.
Brent crude futures for February ended the session 32 cents, or 0.6%, higher at $50.29 a barrel, while U.S. West Texas Intermediate crude futures for January settled up 42 cents, or 0.9%, at $46.99 a barrel.
Prices slid more than 1% earlier in the session after OPEC said global oil demand would rebound more slowly in 2021 than previously thought because of the lingering impact of the coronavirus pandemic, hampering efforts by the group and its allies to support the market.
Brent and WTI have rallied for six consecutive weeks, their longest stretch of weekly gains since June.
“Price momentum has slowed appreciably during the past couple of weeks and while some fresh or unexpected bullish headlines may be required to advance the complex into new high territory, we will also note a market that appears to have developed immunity to bearish headlines that would normally be slapping the complex down,” Jim Ritterbusch, president of Ritterbusch and Associates, said.
Monday, 14 December 2020
OPEC cuts 2021 oil demand outlook again as pandemic impact lingers | Reuters
OPEC cuts 2021 oil demand outlook again as pandemic impact lingers | Reuters
Global oil demand will rebound more slowly in 2021 than previously thought because of the lingering impact of the coronavirus pandemic, OPEC said on Monday, hampering efforts by the group and its allies to support the market.
Demand will rise by 5.90 million barrels per day (bpd) next year to 95.89 million bpd, the Organization of the Petroleum Exporting Countries said in a monthly report. The growth forecast is 350,000 bpd less than expected a month ago.
The group has steadily lowered its 2021 demand growth forecast in recent months.
Global oil demand will rebound more slowly in 2021 than previously thought because of the lingering impact of the coronavirus pandemic, OPEC said on Monday, hampering efforts by the group and its allies to support the market.
Demand will rise by 5.90 million barrels per day (bpd) next year to 95.89 million bpd, the Organization of the Petroleum Exporting Countries said in a monthly report. The growth forecast is 350,000 bpd less than expected a month ago.
The group has steadily lowered its 2021 demand growth forecast in recent months.
Exclusive-Italy authorises #AbuDhabi fund to invest in TIM's grid - sources | Reuters
Exclusive-Italy authorises Abu Dhabi fund to invest in TIM's grid - sources | Reuters
The Italian government has given Abu Dhabi’s biggest sovereign fund a conditional green light to invest in Telecom Italia’s (TIM) last-mile network, three sources close to the matter told Reuters on Monday.
The planned sale would give Abu Dhabi an indirect 10.3% stake in TIM’s last-mile grid, a fourth source said, in a deal worth about 500 million euros ($608 million).
The Italian government has the power to block unwanted bids in industries deemed of strategic importance, such as telecoms, banking and health.
TIM agreed in August to sell to U.S. investment firm KKR 37.5% of a newly created company, FiberCop, into which the telecoms firm is transferring its secondary “last-mile” network, which links so-called street cabinets to homes.
Rome gave its green light to the deal in November, demanding that KKR commit to a government-sponsored plan to create a unified ultra-fast broadband network entitled to receive grants from the European Recovery Fund.
The Italian government has given Abu Dhabi’s biggest sovereign fund a conditional green light to invest in Telecom Italia’s (TIM) last-mile network, three sources close to the matter told Reuters on Monday.
The planned sale would give Abu Dhabi an indirect 10.3% stake in TIM’s last-mile grid, a fourth source said, in a deal worth about 500 million euros ($608 million).
The Italian government has the power to block unwanted bids in industries deemed of strategic importance, such as telecoms, banking and health.
TIM agreed in August to sell to U.S. investment firm KKR 37.5% of a newly created company, FiberCop, into which the telecoms firm is transferring its secondary “last-mile” network, which links so-called street cabinets to homes.
Rome gave its green light to the deal in November, demanding that KKR commit to a government-sponsored plan to create a unified ultra-fast broadband network entitled to receive grants from the European Recovery Fund.
Exclusive- #AbuDhabi's Mubadala reviews equities fund in investment shake-up - sources | Reuters
Exclusive-Abu Dhabi's Mubadala reviews equities fund in investment shake-up - sources | Reuters
Abu Dhabi state investor Mubadala is considering options including the spin-out of an internally managed $500 million public equities fund after a weak performance, two sources said, as the emirate shakes up state entities amid lower oil prices.
Mubadala Investment Co, which manages more than $230 billion in assets, plans to take a decision on what to do with its long-short public equities fund, part of investment arm Mubadala Capital, by early next year, the sources said.
One of the sources said the fund - which is down to around $500 million in assets under management from a peak of $1 billion - could be either spun out or unwound.
Long-short equity hedge funds, which bet on stock prices rising and falling, tend to protect investors from volatility by “shorting” -- borrowing a stock or security from an institutional investor, then selling it back when the price falls and pocketing the difference.
Abu Dhabi state investor Mubadala is considering options including the spin-out of an internally managed $500 million public equities fund after a weak performance, two sources said, as the emirate shakes up state entities amid lower oil prices.
Mubadala Investment Co, which manages more than $230 billion in assets, plans to take a decision on what to do with its long-short public equities fund, part of investment arm Mubadala Capital, by early next year, the sources said.
One of the sources said the fund - which is down to around $500 million in assets under management from a peak of $1 billion - could be either spun out or unwound.
Long-short equity hedge funds, which bet on stock prices rising and falling, tend to protect investors from volatility by “shorting” -- borrowing a stock or security from an institutional investor, then selling it back when the price falls and pocketing the difference.
Bridging the Gulf - The feuding Gulf states are trying to make nice | Middle East & Africa | The Economist #Qatar
Bridging the Gulf - The feuding Gulf states are trying to make nice | Middle East & Africa | The Economist
Months after four Arab states imposed an embargo on Qatar in 2017, a minister from the emirate made what he thought was a controversial comparison. “To be honest, we consider ourselves like Israel,” he said, referring to another small country isolated in the region. Improbably, almost three years later, this comparison seems too favourable to Qatar. Thousands of Israelis are visiting Dubai for the first time this December, while Qataris are nowhere to be found. Israel will soon have ambassadors to two of the six members of the Gulf Co-operation Council (gcc), the same number as Qatar—a gcc member.
The feud in the Gulf has long seemed intractable. But for the umpteenth time foreign officials are trying to resolve it. Jared Kushner, Donald Trump’s son-in-law and adviser (pictured, in blue mask), recently visited Saudi Arabia and Qatar to push for a deal. The Saudi foreign minister later said one was “within reach”. Qatari officials made encouraging noises too. Yet even if they promise to bury the hatchet, real reconciliation will remain out of reach.
In 2017 the “Arab quartet” behind the blockade—Bahrain, Egypt, Saudi Arabia and the United Arab Emirates (uae)—served Qatar a list of 13 demands, among them closing Al Jazeera, the satellite broadcaster; cutting ties with Islamist groups such as the Muslim Brotherhood; and shutting a Turkish military base in Doha, Qatar’s capital. Qatar acceded to none of them and sometimes did the opposite, escalating its media war with the blockading states and deepening ties with Turkey.
Months after four Arab states imposed an embargo on Qatar in 2017, a minister from the emirate made what he thought was a controversial comparison. “To be honest, we consider ourselves like Israel,” he said, referring to another small country isolated in the region. Improbably, almost three years later, this comparison seems too favourable to Qatar. Thousands of Israelis are visiting Dubai for the first time this December, while Qataris are nowhere to be found. Israel will soon have ambassadors to two of the six members of the Gulf Co-operation Council (gcc), the same number as Qatar—a gcc member.
The feud in the Gulf has long seemed intractable. But for the umpteenth time foreign officials are trying to resolve it. Jared Kushner, Donald Trump’s son-in-law and adviser (pictured, in blue mask), recently visited Saudi Arabia and Qatar to push for a deal. The Saudi foreign minister later said one was “within reach”. Qatari officials made encouraging noises too. Yet even if they promise to bury the hatchet, real reconciliation will remain out of reach.
In 2017 the “Arab quartet” behind the blockade—Bahrain, Egypt, Saudi Arabia and the United Arab Emirates (uae)—served Qatar a list of 13 demands, among them closing Al Jazeera, the satellite broadcaster; cutting ties with Islamist groups such as the Muslim Brotherhood; and shutting a Turkish military base in Doha, Qatar’s capital. Qatar acceded to none of them and sometimes did the opposite, escalating its media war with the blockading states and deepening ties with Turkey.
MIDEAST STOCKS-Most markets in Gulf firm as financials rise, #Qatar falls | Nasdaq
MIDEAST STOCKS-Most markets in Gulf firm as financials rise, Qatar falls | Nasdaq
Most Gulf stock markets rose in early trade on Monday, supported by gains in financials, while petrochemical firm Industries Qatar dragged down Qatari stocks.
Saudi Arabia's benchmark index .TASI added 0.1%, with Al Rajhi Bank 1120.SE firming 0.2%, while its largest lender National Commercial Bank 1180.SE was up 0.5%.
Dubai's main share index .DFMGI rose 0.4%, with blue-chip developer Emaar Properties EMAR.DU rising 1.4% and Dubai Investments DINV.DU closing 2.1% higher.
In Abu Dhabi, the index .ADI edged up 0.1%, helped by a 0.2% increase in the country's largest lender First Abu Dhabi Bank FAB.AD.
The export credit agencies of the United Arab Emirates (UAE) and Israel have signed a cooperation agreement to develop economic relations between the two countries.
The annual exchange of trade between Israel and the UAE across several industries is expected to reach $4 billion per year.
In Qatar, the index .QSI lost 0.4%, weighed down by a 1.8% fall in petrochemical firm Industries Qatar IQCD.QA and a 0.9% decrease in Qatar Fuel QFLS.QA.
Most Gulf stock markets rose in early trade on Monday, supported by gains in financials, while petrochemical firm Industries Qatar dragged down Qatari stocks.
Saudi Arabia's benchmark index .TASI added 0.1%, with Al Rajhi Bank 1120.SE firming 0.2%, while its largest lender National Commercial Bank 1180.SE was up 0.5%.
Dubai's main share index .DFMGI rose 0.4%, with blue-chip developer Emaar Properties EMAR.DU rising 1.4% and Dubai Investments DINV.DU closing 2.1% higher.
In Abu Dhabi, the index .ADI edged up 0.1%, helped by a 0.2% increase in the country's largest lender First Abu Dhabi Bank FAB.AD.
The export credit agencies of the United Arab Emirates (UAE) and Israel have signed a cooperation agreement to develop economic relations between the two countries.
The annual exchange of trade between Israel and the UAE across several industries is expected to reach $4 billion per year.
In Qatar, the index .QSI lost 0.4%, weighed down by a 1.8% fall in petrochemical firm Industries Qatar IQCD.QA and a 0.9% decrease in Qatar Fuel QFLS.QA.
Oil prices rise on vaccine hopes, tanker blast at #SaudiArabia | Reuters
Oil prices rise on vaccine hopes, tanker blast at Saudi Arabia | Reuters
Oil prices rose on Monday, pushing Brent back above $50 a barrel, buoyed by hopes that a rollout of coronavirus vaccines will lift global fuel demand while a tanker explosion in Saudi Arabia jangled nerves in the market.
Brent crude futures for February rose 67 cents, or 1.3%, to $50.64 a barrel by 0730 GMT, while U.S. West Texas Intermediate crude futures for January were up 62 cents, or 1.3%, at $47.19 a barrel.
Prices also extended gains amid supply jitters after a shipping firm said an oil tanker was hit by an external source while discharging at Jeddah port in Saudi Arabia.
“The market is assessing supply disruption from these incidents versus Iranian (supply) volumes coming back,” Energy Aspects’ analyst Virendra Chauhan said, adding that the rampant spread of the virus in the west has hurt demand. “So it’s unsurprising that prices are choppy.”
Oil prices rose on Monday, pushing Brent back above $50 a barrel, buoyed by hopes that a rollout of coronavirus vaccines will lift global fuel demand while a tanker explosion in Saudi Arabia jangled nerves in the market.
Brent crude futures for February rose 67 cents, or 1.3%, to $50.64 a barrel by 0730 GMT, while U.S. West Texas Intermediate crude futures for January were up 62 cents, or 1.3%, at $47.19 a barrel.
Prices also extended gains amid supply jitters after a shipping firm said an oil tanker was hit by an external source while discharging at Jeddah port in Saudi Arabia.
“The market is assessing supply disruption from these incidents versus Iranian (supply) volumes coming back,” Energy Aspects’ analyst Virendra Chauhan said, adding that the rampant spread of the virus in the west has hurt demand. “So it’s unsurprising that prices are choppy.”
#UAE News: #Dubai Business Conditions Worsen as Pandemic Weighs on Demand - Bloomberg
UAE News: Dubai Business Conditions Worsen as Pandemic Weighs on Demand - Bloomberg
Business activity in Dubai dropped for a second month in November as the coronavirus pandemic continued to weigh on demand.
The non-oil private sector economy in the Middle East’s business hub deteriorated last month to the lowest since May, according to IHS Markit. Its Purchasing Managers’ Index dipped to 49 from 49.9 in October, falling further below the 50 mark that separates growth from contraction.
Employment figures continued to stabilize after having dipped to the lowest on record earlier this year and the pace of job losses was the mildest seen in nine months, though a possible lapse in demand could lead to another setback for employment in the short-term, the report said.
“A renewed fall in output and slower sales growth were evident across the Dubai non-oil private sector in November, highlighting the possibility of a ‘double dip’ economic downturn from the pandemic,” said David Owen, an economist at IHS Markit.
Business activity in Dubai dropped for a second month in November as the coronavirus pandemic continued to weigh on demand.
The non-oil private sector economy in the Middle East’s business hub deteriorated last month to the lowest since May, according to IHS Markit. Its Purchasing Managers’ Index dipped to 49 from 49.9 in October, falling further below the 50 mark that separates growth from contraction.
Employment figures continued to stabilize after having dipped to the lowest on record earlier this year and the pace of job losses was the mildest seen in nine months, though a possible lapse in demand could lead to another setback for employment in the short-term, the report said.
“A renewed fall in output and slower sales growth were evident across the Dubai non-oil private sector in November, highlighting the possibility of a ‘double dip’ economic downturn from the pandemic,” said David Owen, an economist at IHS Markit.
#AbuDhabi's TAQA shareholders approve new dividend policy for 2020-2022 | ZAWYA MENA Edition
Abu Dhabi's TAQA shareholders approve new dividend policy for 2020-2022 | ZAWYA MENA Edition
Abu Dhabi National Energy Company (TAQA) announced on Monday that its shareholders have approved a new progressive dividend policy for 2020-2022.
During TAQA's Extraordinary General Assembly meeting held today, the Board of Directors have approved an interim dividend payment to shareholders, the company said in a statement on Monday.
For the first nine months of 2020, the dividend payment will be AED1.50 fils per share (AED1.687 billion in total).
This payment will constitute the first portion of the full-year 2020 dividend, which is expected to be AED2.50 fils per share (AED2.811 billion in total), which will grow by 10 percent annually for the following two years (2.75 fils per share for 2021 and 3.00 fils per share for 2022).
The dividend policy adopted recognises TAQA’s increased scale and improved financial profile, resulting from its landmark transaction in July with Abu Dhabi Power Corporation (ADPower).
Abu Dhabi National Energy Company (TAQA) announced on Monday that its shareholders have approved a new progressive dividend policy for 2020-2022.
During TAQA's Extraordinary General Assembly meeting held today, the Board of Directors have approved an interim dividend payment to shareholders, the company said in a statement on Monday.
For the first nine months of 2020, the dividend payment will be AED1.50 fils per share (AED1.687 billion in total).
This payment will constitute the first portion of the full-year 2020 dividend, which is expected to be AED2.50 fils per share (AED2.811 billion in total), which will grow by 10 percent annually for the following two years (2.75 fils per share for 2021 and 3.00 fils per share for 2022).
The dividend policy adopted recognises TAQA’s increased scale and improved financial profile, resulting from its landmark transaction in July with Abu Dhabi Power Corporation (ADPower).
#Dubai's business conditions take a hit but job market stabilises - PMI | ZAWYA MENA Edition
Dubai's business conditions take a hit but job market stabilises - PMI | ZAWYA MENA Edition
Non-oil private sector businesses in Dubai saw a renewed fall in activity in November, as the impact of COVID-19 appeared to worsen amid rising global cases, according to the latest Purchasing Managers' Index (PMI) data from IHS Markit. However, job shedding eased to the weakest seen in the nine-month downturn, it said.
Growth in new work eased to the weakest seen in five months, leading to a solid reduction in output. Meanwhile, sentiment regarding the next 12 months of activity fell to a new record low, amid increased worries about a slowing economic recovery, according to the PMI survey that covers the non-oil private sector economy.
The seasonally adjusted IHS Markit Dubai Purchasing Managers' Index posted at 49.0 in November, the lowest recorded since May. Falling from 49.9 in October, the reading signalled a quicker – but still marginal – decline in operating conditions.
"A renewed fall in output and slower sales growth were evident across the Dubai non-oil private sector in November, highlighting the possibility of a ‘doubledip’ economic downturn from the pandemic. COVID-19 cases have risen in the UAE and globally, leaving firms uncertain as to how restrictions may impact new business in the near future," David Owen, Economist at IHS Markit, said.
Non-oil private sector businesses in Dubai saw a renewed fall in activity in November, as the impact of COVID-19 appeared to worsen amid rising global cases, according to the latest Purchasing Managers' Index (PMI) data from IHS Markit. However, job shedding eased to the weakest seen in the nine-month downturn, it said.
Growth in new work eased to the weakest seen in five months, leading to a solid reduction in output. Meanwhile, sentiment regarding the next 12 months of activity fell to a new record low, amid increased worries about a slowing economic recovery, according to the PMI survey that covers the non-oil private sector economy.
The seasonally adjusted IHS Markit Dubai Purchasing Managers' Index posted at 49.0 in November, the lowest recorded since May. Falling from 49.9 in October, the reading signalled a quicker – but still marginal – decline in operating conditions.
"A renewed fall in output and slower sales growth were evident across the Dubai non-oil private sector in November, highlighting the possibility of a ‘doubledip’ economic downturn from the pandemic. COVID-19 cases have risen in the UAE and globally, leaving firms uncertain as to how restrictions may impact new business in the near future," David Owen, Economist at IHS Markit, said.
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