Oil prices rise as U.S. crude stock draw supports but demand hopes dim | Reuters
Oil prices settled higher on Wednesday, supported by a draw in U.S. crude inventories and Britain’s approval of a second coronavirus vaccine but pressured by swelling year-over-year supply.
Brent crude futures settled up 25 cents to $51.34 a barrel, off the session high of $51.56 and well lower than the $66 price that started the year.
U.S. West Texas Intermediate (WTI) crude settled up 40 cents to trade at $48.40, substantially down from about $62 at the start of 2020.
Both contracts slipped early the session as a bigger fiscal aid package in the United States looked increasingly unlikely, dampening hopes for a swifter recovery of oil demand that has been hammered by the COVID-19 pandemic.
Wednesday 30 December 2020
#Qatar Wealth Fund Invests $125 Million in Battery Firm Fluence - Bloomberg
Qatar Wealth Fund Invests $125 Million in Battery Firm Fluence - Bloomberg
Fluence, a global battery storage joint venture of Siemens AG and AES Corp., said it reached an agreement with the sovereign wealth fund of Qatar for a $125 million investment.
The funding will give the Qatar Investment Authority a 12% stake in Fluence and values the battery company at more than $1 billion, the companies said Wednesday in a joint statement. Siemens and AES will retain a 44% stake each following completion of the deal, the companies said.
“This is one more milestone in our strategy of setting this company up and eventually taking it public,” AES Chief Executive Officer Andres Gluski said in an interview. The investment will allow Fluence to expand its energy storage offerings and develop its software that can maximize battery use in power markets, he said.
The global energy storage business is expected to boom in the coming decades as utilities will look to batteries to backstop an increasing amount of intermittent solar and wind power. BloombergNEF forecasts that the worldwide energy storage market could attract nearly $1 trillion in investments over the next three decades.
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| Fluence Gridstack energy storage systems. Source: Fluence |
The funding will give the Qatar Investment Authority a 12% stake in Fluence and values the battery company at more than $1 billion, the companies said Wednesday in a joint statement. Siemens and AES will retain a 44% stake each following completion of the deal, the companies said.
“This is one more milestone in our strategy of setting this company up and eventually taking it public,” AES Chief Executive Officer Andres Gluski said in an interview. The investment will allow Fluence to expand its energy storage offerings and develop its software that can maximize battery use in power markets, he said.
The global energy storage business is expected to boom in the coming decades as utilities will look to batteries to backstop an increasing amount of intermittent solar and wind power. BloombergNEF forecasts that the worldwide energy storage market could attract nearly $1 trillion in investments over the next three decades.
#Dubai Park Operator to Hire Advisers to Assess Takeover Offer - Bloomberg
Dubai Park Operator to Hire Advisers to Assess Takeover Offer - Bloomberg
DXB Entertainment PJSC plans to hire advisers to evaluate state-controlled Meraas Holding LLC’s offer to acquire the Dubai theme park operator’s debt and take it private.
The board approved appointing KPMG and Shuaa Capital as financial advisers and Allen & Overy LLP as legal adviser, according to a regulatory filing Wednesday.
Last week, Meraas offered to acquire debt worth 4.26 billion dirhams ($1.16 billion) and convert it into new DXB Entertainment shares, boosting its ownership to more than 90%. DXB Entertainment hasn’t posted a profit since listing and the stock has lost more than 90% of its value since a peak in 2016.
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The Legoland Dubai theme park, operated by DXB Entertainments PJSC, in Dubai. Photographer: Christopher Pike/Bloomberg |
The board approved appointing KPMG and Shuaa Capital as financial advisers and Allen & Overy LLP as legal adviser, according to a regulatory filing Wednesday.
Last week, Meraas offered to acquire debt worth 4.26 billion dirhams ($1.16 billion) and convert it into new DXB Entertainment shares, boosting its ownership to more than 90%. DXB Entertainment hasn’t posted a profit since listing and the stock has lost more than 90% of its value since a peak in 2016.
Interview: #Dubai's DIFC CEO 'optimistic' about significant recovery in 2021 | ZAWYA MENA Edition
Interview: Dubai's DIFC CEO 'optimistic' about significant recovery in 2021 | ZAWYA MENA Edition
Businesses embraced technology out of necessity during the global pandemic, which inspired firm decisions about issues companies had been considering for a while, according to Arif Amiri, CEO of DIFC Authority. Companies that support the future of finance will see continued growth in 2021, he says, meaning technology will play an increasingly crucial role.
This applies to Dubai International Financial Centre (DIFC) itself, which launched a digital onboarding platform for businesses wishing to register there, although that decision was based on ease of doing business.
“In line with the DIFC’s continued emphasis on improving the ease of doing business, the centre launched a seamless digital onboarding platform [in early 2020] to improve the ease of establishing businesses,” said Amiri. He added that the platform simplifies the DIFC’s onboarding process and reduces the turnaround time to establish new companies.
In an interview with Zawya, Amiri offered a positive outlook on the prospects of the DIFC and Dubai for 2021. “I am optimistic about a significant recovery in the global economy and the financial sector overall,” he said. “During 2020, the DIFC provided and adapted its platform, which focused on being innovative, resilient, flexible and stable.”
Businesses embraced technology out of necessity during the global pandemic, which inspired firm decisions about issues companies had been considering for a while, according to Arif Amiri, CEO of DIFC Authority. Companies that support the future of finance will see continued growth in 2021, he says, meaning technology will play an increasingly crucial role.
This applies to Dubai International Financial Centre (DIFC) itself, which launched a digital onboarding platform for businesses wishing to register there, although that decision was based on ease of doing business.
“In line with the DIFC’s continued emphasis on improving the ease of doing business, the centre launched a seamless digital onboarding platform [in early 2020] to improve the ease of establishing businesses,” said Amiri. He added that the platform simplifies the DIFC’s onboarding process and reduces the turnaround time to establish new companies.
In an interview with Zawya, Amiri offered a positive outlook on the prospects of the DIFC and Dubai for 2021. “I am optimistic about a significant recovery in the global economy and the financial sector overall,” he said. “During 2020, the DIFC provided and adapted its platform, which focused on being innovative, resilient, flexible and stable.”
MIDEAST STOCKS- #UAE markets close lower after country reports cases of new virus variant | Nasdaq
MIDEAST STOCKS-UAE markets close lower after country reports cases of new virus variant | Nasdaq
Stock markets in the United Arab Emirates (UAE) finished lower on Wednesday after the country reported confirmed cases of the new variant of the coronavirus.
The UAE has discovered a "limited number" of cases of people infected with the new coronavirus variant, the first confirmed cases of the more contagious version of the virus in the Gulf region.
The UAE has kept its borders and international flights open, while neighbouring Saudi Arabia on Monday extended a ban on entry to the kingdom by air, land and sea for another week.
The Dubai index .DFMGI shed 0.3%, its third fall in four sessions this week.
Dubai's largest listed developer Emaar Properties EMAR.DU was down 0.8% and Damac Properties DAMAC.DU slid by 3.7%.
DXB Entertainments DXBE.DU fell 4.4% for a seventh straight decline since state-backed property company Meraas revealed its intention to make a conditional offer to buy the remaining shares in the loss-making theme park group and take it private.
Abu Dhabi's index .ADI slipped by 0.2%, its second successive loss, dragged down by a 1.2% fall for telecoms group Etisalat ETISALAT.AD a 2.6% decline for National Bank of Umm Al Qaiwain NBQ.AD.
In Saudi Arabia, the benchmark index .TASI firmed by 0.2%, driven by a 1.3% gain by top lender National Commercial Bank 1180.SE.
Qatar's main index .QSI advanced 0.3%, buoyed by a 0.6% gain in shares of the Gulf's biggest lender, Qatar National Bank QNBK.QA.
Oil gained ground on the back of a weaker dollar, a decline in U.S. crude oil inventories and as Britain approved another coronavirus vaccine. O/R
The Bahrain index .BAX closed 1.4% down after losses in financial stocks. Alahli United AUBB.BH fell 4.5% while Ithmaar Bank ITHMR.BH shed 2.8%.
Bahrain's central bank has asked banks and financing companies to extend loan repayments for six more months from January as it moves to mitigate the effects of the COVID-19 pandemic.
Stock markets in the United Arab Emirates (UAE) finished lower on Wednesday after the country reported confirmed cases of the new variant of the coronavirus.
The UAE has discovered a "limited number" of cases of people infected with the new coronavirus variant, the first confirmed cases of the more contagious version of the virus in the Gulf region.
The UAE has kept its borders and international flights open, while neighbouring Saudi Arabia on Monday extended a ban on entry to the kingdom by air, land and sea for another week.
The Dubai index .DFMGI shed 0.3%, its third fall in four sessions this week.
Dubai's largest listed developer Emaar Properties EMAR.DU was down 0.8% and Damac Properties DAMAC.DU slid by 3.7%.
DXB Entertainments DXBE.DU fell 4.4% for a seventh straight decline since state-backed property company Meraas revealed its intention to make a conditional offer to buy the remaining shares in the loss-making theme park group and take it private.
Abu Dhabi's index .ADI slipped by 0.2%, its second successive loss, dragged down by a 1.2% fall for telecoms group Etisalat ETISALAT.AD a 2.6% decline for National Bank of Umm Al Qaiwain NBQ.AD.
In Saudi Arabia, the benchmark index .TASI firmed by 0.2%, driven by a 1.3% gain by top lender National Commercial Bank 1180.SE.
Qatar's main index .QSI advanced 0.3%, buoyed by a 0.6% gain in shares of the Gulf's biggest lender, Qatar National Bank QNBK.QA.
Oil gained ground on the back of a weaker dollar, a decline in U.S. crude oil inventories and as Britain approved another coronavirus vaccine. O/R
The Bahrain index .BAX closed 1.4% down after losses in financial stocks. Alahli United AUBB.BH fell 4.5% while Ithmaar Bank ITHMR.BH shed 2.8%.
Bahrain's central bank has asked banks and financing companies to extend loan repayments for six more months from January as it moves to mitigate the effects of the COVID-19 pandemic.
Five things to watch in 2021 after oil’s wild ride this year | Financial Times
Five things to watch in 2021 after oil’s wild ride this year | Financial Times
The oil sector was hit harder than almost any other by the pandemic.
The oil sector was hit harder than almost any other by the pandemic.
Crude prices fell from near $70 a barrel at the beginning of the year to below $20 in April as lockdowns slashed fuel demand. Prices even briefly turned negative in the US.
After a short but highly damaging price war, Opec and Russia enacted record supply cuts to stabilise the market. But even then, companies were forced to rip up investment plans while European energy majors started to look to a greener future.
2021 predictions: what is likely to happen to the price of oil? - Arabianbusiness
2021 predictions: what is likely to happen to the price of oil? - Arabianbusiness
The price of Brent crude oil will remain “subdued” in the first quarter of 2021, but could rise to $55 per barrel by the fourth quarter of the year, according to an industry expert.
Brent crude futures rose 19 cents, or 0.4 percent, to $51.28 a barrel early Wednesday morning as a US coronavirus fiscal aid package and a decline in crude oil inventories lifted prices.
Added optimism over the global roll-out of coronavirus vaccines also continues to impact prices.
Louise Dickson, oil markets analyst, Rystad Energy, told Arabian Business they have revised their overall 2021 Brent base case up to $51 (from $48).
She said: “The increase is more than justified by our tightening global crude and liquids balances.”
Risks remain on the demand side and a slip-up in vaccine implementation, a third wave of coronavirus cases, or a serious wave of virus mutations, could all tether and flatten demand growth and put downward pressure on oil prices.”
However, Dickson said a weaker dollar will also provide marginal support to oil, and should low central bank rates and historic government spending continue to be the consensus in 2021, “the stock market has reason to remain feverish”.
As OPEC+ prepares to meet next week, traders are looking out for indications of changing sentiment among its members on their previously agreed cuts. Over the long term, Iranian plans to hike oil production in 2021 continue to weigh on the market and threaten to undermine the group’s efforts to ramp up output while avoiding flooding the market.
“OPEC+ can’t wait, particularly Russia and even Iraq, to pump more barrels,” said Tariq Zahir, managing member of the global macro program at Tyche Capital Advisors. “They want things to go back to normal, so there’s more risk to downside than upside.”
Meanwhile, Taiyab Zain Shariff, senior analyst with Rystad Energy, has hailed the discovery of four oil and gas fields by Saudi Aramco, which was announced earlier this week.
It was revealed on Sunday that the oil giant had discovered non-conventional oil in al-Reesh oil field, north-west of Dhahran.
Non-conventional gas has also been discovered in al-Sarrah reservoir at al-Minahhaz well, south-west of the Ghawar oil field, and at al-Sahbaa well, south of Ghawar. Gas from al-Minahhaz well amounts to 18 million standard cubic feet daily, along with a daily 98 barrels of condensate, and out of al-Sahbaa well a daily rate of 32 million standard cubic feet.
Shariff told Arabian Business: “These new unconventional discoveries fall in right place to help the company achieve its evolving organizational model and understand the unconventional challenges. Although the discoveries are of medium range, they open up new opportunities in the mudrock shale plays and tight reservoirs, for example the Al-Reesh discovery located in the Tuwaiq formation would test the extra light crude deposited in mudrocks and, Al-Minahhaz and Al-Sahbaa discoveries testing tight sandstone reservoir in the Al-Ahsa region.”
He added this may not be the last oil and gas discovery, saying: “The state-owned oil company already have plans to further delineate these discoveries to find the extent and size of the new discovered fields and we could expect more of such discoveries in future to support the country’s unconventional resource strategy.”
The price of Brent crude oil will remain “subdued” in the first quarter of 2021, but could rise to $55 per barrel by the fourth quarter of the year, according to an industry expert.
Brent crude futures rose 19 cents, or 0.4 percent, to $51.28 a barrel early Wednesday morning as a US coronavirus fiscal aid package and a decline in crude oil inventories lifted prices.
Added optimism over the global roll-out of coronavirus vaccines also continues to impact prices.
Louise Dickson, oil markets analyst, Rystad Energy, told Arabian Business they have revised their overall 2021 Brent base case up to $51 (from $48).
She said: “The increase is more than justified by our tightening global crude and liquids balances.”
Risks remain on the demand side and a slip-up in vaccine implementation, a third wave of coronavirus cases, or a serious wave of virus mutations, could all tether and flatten demand growth and put downward pressure on oil prices.”
However, Dickson said a weaker dollar will also provide marginal support to oil, and should low central bank rates and historic government spending continue to be the consensus in 2021, “the stock market has reason to remain feverish”.
As OPEC+ prepares to meet next week, traders are looking out for indications of changing sentiment among its members on their previously agreed cuts. Over the long term, Iranian plans to hike oil production in 2021 continue to weigh on the market and threaten to undermine the group’s efforts to ramp up output while avoiding flooding the market.
“OPEC+ can’t wait, particularly Russia and even Iraq, to pump more barrels,” said Tariq Zahir, managing member of the global macro program at Tyche Capital Advisors. “They want things to go back to normal, so there’s more risk to downside than upside.”
Meanwhile, Taiyab Zain Shariff, senior analyst with Rystad Energy, has hailed the discovery of four oil and gas fields by Saudi Aramco, which was announced earlier this week.
It was revealed on Sunday that the oil giant had discovered non-conventional oil in al-Reesh oil field, north-west of Dhahran.
Non-conventional gas has also been discovered in al-Sarrah reservoir at al-Minahhaz well, south-west of the Ghawar oil field, and at al-Sahbaa well, south of Ghawar. Gas from al-Minahhaz well amounts to 18 million standard cubic feet daily, along with a daily 98 barrels of condensate, and out of al-Sahbaa well a daily rate of 32 million standard cubic feet.
Shariff told Arabian Business: “These new unconventional discoveries fall in right place to help the company achieve its evolving organizational model and understand the unconventional challenges. Although the discoveries are of medium range, they open up new opportunities in the mudrock shale plays and tight reservoirs, for example the Al-Reesh discovery located in the Tuwaiq formation would test the extra light crude deposited in mudrocks and, Al-Minahhaz and Al-Sahbaa discoveries testing tight sandstone reservoir in the Al-Ahsa region.”
He added this may not be the last oil and gas discovery, saying: “The state-owned oil company already have plans to further delineate these discoveries to find the extent and size of the new discovered fields and we could expect more of such discoveries in future to support the country’s unconventional resource strategy.”
#Qatar Ruler Gets Invite to Attend Summit That May Ease Gulf Rift - Bloomberg
Qatar Ruler Gets Invite to Attend Summit That May Ease Gulf Rift - Bloomberg
Qatar’s ruler received an invitation from Saudi Arabia’s king to attend next month’s Gulf Cooperation Council summit, which may help to ease a dispute that shattered regional unity and set back U.S. efforts to isolate Iran.
GCC Secretary General Nayef Falah Al-Hajraf delivered the invitation to Sheikh Tamim bin Hamad Al Thani for the summit on Jan. 5, according to a statement. It didn’t specify whether the ruler accepted the invitation.
The summit is seen as possible a step in resolving a crisis that erupted in mid-2017 when Saudi Arabia, the United Arab Emirates, Bahrain and Egypt severed trade, travel and diplomatic ties with Qatar. There have been U.S.-backed attempts to end the dispute.
The potential rapprochement comes as U.S. policy appears poised for a sharp turn, and may be intended to get things moving before President Donald Trump leaves office.
President-elect Joe Biden has said he’s interested in rejoining the 2015 Iran nuclear deal that Saudi Arabia, the UAE and Bahrain opposed, and will take a tougher line on human rights concerns than his predecessor.
The boycotting states accused Qatar, the world’s largest exporter of liquefied natural gas, of meddling in their internal affairs and supporting hard-line Islamist groups, which Doha denies. They are also wary of Qatar’s relations with Iran, with whom it shares the world’s largest gas field.
Qatar denied the accusations and in 2019 quit the Organization of the Petroleum Exporting Countries, or OPEC, over the row. The GCC comprises Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain, and Oman.
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Sheikh Tamim bin Hamad Al Thani Photographer: Alexander Hassenstein/Getty Images |
GCC Secretary General Nayef Falah Al-Hajraf delivered the invitation to Sheikh Tamim bin Hamad Al Thani for the summit on Jan. 5, according to a statement. It didn’t specify whether the ruler accepted the invitation.
The summit is seen as possible a step in resolving a crisis that erupted in mid-2017 when Saudi Arabia, the United Arab Emirates, Bahrain and Egypt severed trade, travel and diplomatic ties with Qatar. There have been U.S.-backed attempts to end the dispute.
The potential rapprochement comes as U.S. policy appears poised for a sharp turn, and may be intended to get things moving before President Donald Trump leaves office.
President-elect Joe Biden has said he’s interested in rejoining the 2015 Iran nuclear deal that Saudi Arabia, the UAE and Bahrain opposed, and will take a tougher line on human rights concerns than his predecessor.
The boycotting states accused Qatar, the world’s largest exporter of liquefied natural gas, of meddling in their internal affairs and supporting hard-line Islamist groups, which Doha denies. They are also wary of Qatar’s relations with Iran, with whom it shares the world’s largest gas field.
Qatar denied the accusations and in 2019 quit the Organization of the Petroleum Exporting Countries, or OPEC, over the row. The GCC comprises Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain, and Oman.
Oil up on hopes of demand recovery, lower U.S. inventories | Reuters
Oil up on hopes of demand recovery, lower U.S. inventories | Reuters
Oil gained ground on Wednesday as a U.S. coronavirus fiscal aid package and a decline in crude oil inventories lifted prices.
Brent crude futures rose 35 cents, or 0.7%, to $51.44 a barrel by 0803 GMT and U.S. West Texas Intermediate (WTI) crude added 30 cents, or 0.6%, to $48.30 a barrel.
“Oil prices have remained supported by a weaker U.S. dollar overnight and have finally found a friend in the API inventory report,” said Stephen Innes, chief global market strategist at Axi, a broker.
“This morning the American Petroleum Institute reported a much larger draw versus consensus in crude oil inventories for the week ending December 25.”
Oil gained ground on Wednesday as a U.S. coronavirus fiscal aid package and a decline in crude oil inventories lifted prices.
Brent crude futures rose 35 cents, or 0.7%, to $51.44 a barrel by 0803 GMT and U.S. West Texas Intermediate (WTI) crude added 30 cents, or 0.6%, to $48.30 a barrel.
“Oil prices have remained supported by a weaker U.S. dollar overnight and have finally found a friend in the API inventory report,” said Stephen Innes, chief global market strategist at Axi, a broker.
“This morning the American Petroleum Institute reported a much larger draw versus consensus in crude oil inventories for the week ending December 25.”
MIDEAST STOCKS- #UAE stocks slip after first cases of new virus variant detected | Nasdaq
MIDEAST STOCKS-UAE stocks slip after first cases of new virus variant detected | Nasdaq
Stock markets in the United Arab Emirates (UAE) fell in early trade on Wednesday after the country reported confirmed cases of the new variant of the coronavirus.
UAE discovered a "limited number" of cases of people infected with the variant, marking the first confirmed cases of the more contagious COVID-19 mutant in the Gulf region.
UAE, unlike Saudi Arabia, has not closed its border amid concerns over the mutant.
The Dubai index .DFMGI fell 0.4%. Emaar Properties EMAR.DU led the declines, falling 1.1%. Emirates ENBD Bank ENBD.DU shed 0.5%.
DXB Entertainments DXBE.DU fell 4.4%, extending its losses to a seventh day since Meraas intended to make a conditional offer to acquire the remaining shares and take it private.
Abu Dhabi's index .ADI edged down 0.1%, with First Abu Dhabi Bank FAB.AD losing 0.2% and Abu Dhabi National Insurance ADNIC.AD declining 4.9%.
In Saudi Arabia, the benchmark index .TASI was up 0.1%, supported by 0.4% gain at Al Rajhi Bank 1120.SE and a 1.6% rise in Saudi Cement 3030.SE.
Elsewhere, the shopping centres owner Arabian Centres 4321.SE gained 1.8% after it proposed to distribute a cash dividend of 0.5 riyal per share for the first half of the year.
The Qatari index .QSI was trading flat. Telecoms company Ooredoo ORDS.QA fell 2% in its third straight day of losses.
On Monday, Ooredoo and Hong Kong conglomerate CK Hutchison Holdings 0001.HK said they were exploring a deal to merge their Indonesian units.
Among the gainers, Qatar Electricity and Water QEWC.QA and Qatar Fuel QFLS.QA rose 1.3% and 1%, respectively.
Stock markets in the United Arab Emirates (UAE) fell in early trade on Wednesday after the country reported confirmed cases of the new variant of the coronavirus.
UAE discovered a "limited number" of cases of people infected with the variant, marking the first confirmed cases of the more contagious COVID-19 mutant in the Gulf region.
UAE, unlike Saudi Arabia, has not closed its border amid concerns over the mutant.
The Dubai index .DFMGI fell 0.4%. Emaar Properties EMAR.DU led the declines, falling 1.1%. Emirates ENBD Bank ENBD.DU shed 0.5%.
DXB Entertainments DXBE.DU fell 4.4%, extending its losses to a seventh day since Meraas intended to make a conditional offer to acquire the remaining shares and take it private.
Abu Dhabi's index .ADI edged down 0.1%, with First Abu Dhabi Bank FAB.AD losing 0.2% and Abu Dhabi National Insurance ADNIC.AD declining 4.9%.
In Saudi Arabia, the benchmark index .TASI was up 0.1%, supported by 0.4% gain at Al Rajhi Bank 1120.SE and a 1.6% rise in Saudi Cement 3030.SE.
Elsewhere, the shopping centres owner Arabian Centres 4321.SE gained 1.8% after it proposed to distribute a cash dividend of 0.5 riyal per share for the first half of the year.
The Qatari index .QSI was trading flat. Telecoms company Ooredoo ORDS.QA fell 2% in its third straight day of losses.
On Monday, Ooredoo and Hong Kong conglomerate CK Hutchison Holdings 0001.HK said they were exploring a deal to merge their Indonesian units.
Among the gainers, Qatar Electricity and Water QEWC.QA and Qatar Fuel QFLS.QA rose 1.3% and 1%, respectively.