Oil Slides With Lockdowns Spreading Ahead of OPEC+ Decision - Bloomberg close

Oil Slides With Lockdowns Spreading Ahead of OPEC+ Decision - Bloomberg

• West Texas Intermediate for May delivery fell $1.39 to settle at $59.16 a barrel, posting the largest daily loss since March 25
• Brent for May settlement slipped 60 cents to $63.54 a barrel ahead of the contract’s expiry later on Wednesday
• Brent for June delivery lost $1.43 to $62.74 a barrel

Oil fell the most in roughly a week after France announced it will start a month-long lockdown, while OPEC+ voiced its concerns about the strength of oil demand ahead of an expected decision this week on output.

Futures in New York fell 2.3% on Wednesday to the lowest in nearly a week, with French President Emmanuel Macron saying the pandemic is more dangerous than it was in the fall in his address to the nation. The deteriorating near-term demand picture in Europe offset a surprise oil supply draw in the U.S. and other bullish signals pointing toward rising demand as more Americans are vaccinated.

“The news out of France is very troubling for the petroleum complex,” said John Kilduff, a partner at Again Capital LLC. “The Covid situation worsening, particularly in Europe, represents a demand hit again, and it’s weighing on prices.”

Meanwhile, an OPEC+ panel meeting ended without a policy recommendation ahead of Thursday’s talks where the producer group will decide on production going forward. The OPEC+ alliance is debating whether to revive part of the 8 million barrels of daily output -- about 8% of global supply -- they’re withholding. OPEC Secretary-General Mohammad Barkindo pointed to the oil market’s recent volatility as “a reminder of the fragility facing economies and oil demand.”

#SaudiArabia’s crown prince looks to Aramco to lead investment plan | Financial Times

Saudi Arabia’s crown prince looks to Aramco to lead investment plan | Financial Times

Crown Prince Mohammed bin Salman is banking on Saudi Arabia’s largest listed companies, including Saudi Aramco, to invest $1.3tn in the kingdom over the next decade and urging them to reduce dividends as he tries to accelerate plans to diversify the oil-dependent economy. 

Prince Mohammed said more than 20 companies had agreed to be involved in his new initiative, with 60 per cent of the investment led by state oil giant Aramco, which listed on the local stock market in 2019, and Sabic, a petrochemicals company. 

“That will not harm the shareholders of those companies because instead of getting dividends in cash, you’re going to get growth in the stock market,” Prince Mohammed told reporters late on Tuesday. 

“What we’re trying to create is growth in Saudi Arabia: growth in GDP, more jobs in Saudi Arabia, more income to the Saudi government and a better life for Saudis,” he added.

#Saudi billionaire's investment firm posts $390m losses in 2020 - Arabianbusiness #KingdomHolding

Saudi billionaire's investment firm posts $390m losses in 2020 - Arabianbusiness

The investment firm of Saudi billionaire Prince Alwaleed bin Talal on Wednesday announced a net loss of SR1.46 billion ($390 million) for 2020.

Kingdom Holding Company said the loss compared to a net profit of SR420.2 million in 2019.

In a filing to the Saudi Tadawul stock market, Kingdom said the losses were attributed to lower share from equity-accounted investees, decreased hotel and other operating revenues, impairment of equity-accounted investee, and a drop in gains from investments.

The company also cited higher asset impairment, and increased Zakat expenses. Zakat is the compulsory giving of a set proportion of one's wealth to charity.

In August, the company said it was looking for deals in Europe because US assets, particularly technology stocks, were seen as overpriced.

#Saudi Aramco Shares Rise as Crown Prince MBS Prioritizes Spending Over Dividends - Bloomberg

Saudi Aramco Shares Rise as Crown Prince MBS Prioritizes Spending Over Dividends - Bloomberg

Saudi Aramco’s shares climbed after the government announced the oil giant could reduce its payouts to the state and redirect some of the cash to the local economy.

While the details were unclear, the move could alleviate pressure on Aramco’s balance sheet and free up some of the $73.5 billion of annual dividends it makes to the government, which owns 98% of the company. Payouts to minority shareholders, who get roughly $1.5 billion, will be maintained, the government said.

The world’s largest oil company has seen its debt levels soar in the last year due to the coronavirus-triggered collapse in energy prices and its $69 billion acquisition of chemicals maker Saudi Basic Industries Corp.

The Dhahran-based firm had to cut spending and borrow more to pay the $75 billion dividend in 2020. Free cash flow fell almost 40% to $49 billion, substantially below the level of the dividend.

Mubadala Seizes on 144% Stock Rally to Sell Stake in Top Builder - Bloomberg

Mubadala Seizes on 144% Stock Rally to Sell Stake in Top Builder - Bloomberg

Abu Dhabi wealth fund Mubadala Investment Co. sold a $950 million stake in Aldar Properties PJSC, cashing in on a surge in the developer’s shares after it was awarded contracts worth billions of dollars.

Mubadala, the $232 billion sovereign wealth fund, sold a 12% stake in Aldar to Alpha Dhabi Holding, a name little known to investors. Mubadala will remain the largest shareholder in the company, which is the biggest developer in the United Arab Emirates, with a 25% stake.

Aldar’s stock is up 144% over the past year after the company became the developer of choice for Abu Dhabi, which signed off on deals worth $12.3 billion in January. Its shares retreated 0.8% Wednesday, and are up 19% for the quarter.

“Mubadala’s ability to monetize part of the Aldar stake is good news,” said Mohammed Ali Yasin, chief strategy officer at Al Dhabi Capital Ltd. “The question is: will this strategic investor be dormant or will he be looking to change things. And in that case the fact Mubadala kept a large stake should be reassurance of continued government support for the developer.”

DAMAC delivered 32,000 units since 2002; market recovery will take 12-24 months - Hussain Sajwani | ZAWYA MENA Edition

DAMAC delivered 32,000 units since 2002; market recovery will take 12-24 months - Hussain Sajwani | ZAWYA MENA Edition

DAMAC chairman Hussain Sajwani has announced that his company has crossed the threshold of 32,000 units since inception. The leading Dubai-based developer also stated that recovery of the UAE real-estate market could take 12 to 24 months.

In a statement to the Dubai Financial Market (DFM), DAMAC confirmed it delivered 3,000 units in Akoya and Business Bay this year and that it had crossed the threshold into 32,000 units since its inception in 2020.

DAMAC Properties posted a 1.04 billion dirham ($283 million) net loss for 2020, as the COVID-19 pandemic hurt the property market. DAMAC posted a net loss of 37 million dirham in 2019.

According to Sajwani, 2020 had been a challenging year for the global economy, particularly travel and tourism.

“With the smart leadership of the UAE, we are in a far better position for economic recovery, although I still believe it will take 12-24 months for the real estate to fully recover,” he said.

The company’s total revenue in 2020 was AED 4.7 billion, up from AED 4.4 billion in 2019, but booked sales for the year were AED 2.3 billion, down from AED 3.1 billion in 2019.

Assets in 2020 were AED 21.1 billion, down from AED 23.8 billion in 2019.

OPEC oil output rises in March, led by #Iran - Reuters survey

OPEC oil output rises in March, led by Iran - Reuters survey

OPEC oil output has risen in March as higher supply from Iran countered reductions by other members under a pact with allies, a Reuters survey found, a headwind for its supply-limiting efforts if Tehran’s boost is sustained.

The 13-member Organization of the Petroleum Exporting Countries pumped 25.07 million barrels per day (bpd) in March, the survey found, up 180,000 bpd from February. Output has risen every month since June 2020 with the exception of February.

The rise in Iranian supply comes as OPEC and allies, known as OPEC+, have delayed unwinding more of their output cuts as the impact of the pandemic persists.

OPEC+ meets on Thursday and delegates expect most cuts will be kept.

“I can feel the cautious momentum,” one OPEC source said of Thursday’s meeting.

Oil topped $71 a barrel this month, the highest since before the pandemic, but has since fallen to about $64. A slow recovery in demand and rising Iranian exports have weighed on prices, analysts said.

MIDEAST STOCKS- #Saudi shares outperform on $1.3 trillion private investment push | Nasdaq

MIDEAST STOCKS-Saudi shares outperform on $1.3 trillion private investment push | Nasdaq

Saudi Arabia's stock market rose sharply on Wednesday, after the country announced a huge investment push led by Aramco and SABIC, while other major Gulf markets were mixed.

The kingdom's crown prince said oil firm Aramco and petrochemical firm SABIC would lead 5 trillion riyals ($1.3 trillion) of investments by the local private sector by 2030 under a programme announced on Tuesday for economic diversification.

This is part of 12 trillion riyals worth of investments planned by 2030, Crown Prince Mohammed bin Salman said in televised remarks.

Saudi Arabia's benchmark index .TASI advanced 2.8%, its biggest intraday gain since April last year, as all its banking shares traded higher except for one.

Al Rajhi Bank 1120.SE leapt 5.1%, while Saudi Basic Industries Corp (SABIC) 2010.SE climbed 5.6%. Saudi Aramco 2222.SE closed 2.7% higher.

In Dubai, the benchmark index .DFMGI eased 0.3%, hit by a 0.8% fall in blue-chip developer Emaar Properties EMAR.DU and a 2.4% slide in DAMAC Properties DAMAC.DU.

The Qatari index .QSI added 0.2%, with Commercial Bank COMB.QA rising 3.2%.

However, Aamal Company AHCS.QA declined over 5%, as the stock went ex-dividend.

Oil falls on OPEC+ concerns over slow demand recovery | Reuters

Oil falls on OPEC+ concerns over slow demand recovery | Reuters

Oil prices fell on Wednesday on concerns about the market’s recovery after OPEC and its allies lowered their 2021 demand growth forecast, although strong Chinese factory activities lent some support.

Brent crude for May, which expires on Wednesday, fell 49 cents, or 0.76%, to $63.65 a barrel at 1322 GMT. The more active Brent contract for June was down 53 cents, or 0.83%, at $63.64 a barrel.

U.S. West Texas Intermediate (WTI) crude futures fell 45 cents, or 0.74%, to $60.10 a barrel.

OPEC+ has lowered its oil demand growth forecast for this year by 300,000 barrels per day (bpd), a report from its experts panel meeting seen by Reuters showed.

The Organization of the Petroleum Exporting Countries and allies, together called OPEC+, are set to meet on Thursday, to decide on output policy.

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

#Dubai stocks snap their run of gains as #AbuDhabi moves little | Markets – Gulf News

Dubai stocks snap their run of gains as Abu Dhabi moves little | Markets – Gulf News

Dubai stocks headed lower and Abu Dhabi index closed the day little changed as the markets took a breather after three days of back-to-back gains lured investors into profit-booking.


Dubai Financial Market traded 0.5 per cent higher at its peak during the session before moving downward to close the day lower by 0.3 per cent at 2,550 points. The drop comes after the last three consecutive days of gains coupled with morning advances helped the index appreciate an aggregate 3 per cent. The back-to-back gains proved enough to lure investors into encashing their positions in their quest for safe play in a volatile situation as the pandemic is still far from over.

Europe’s Depleted Gas Storage Is Traders’ Hot Spot This Summer - Bloomberg

Europe’s Depleted Gas Storage Is Traders’ Hot Spot This Summer - Bloomberg

A widening natural gas storage gap in Europe is capturing the attention of traders, who expect the world’s biggest exporters to begin jostling to refill fuel depots depleted by the continent’s harsh winter.

Gas storage is critical for blunting spikes in demand and smoothing price volatility during extreme weather and disruptions to supply. Europe’s cold winter left facilities about 25 billion cubic meters below last year’s levels -- a volume of fuel equivalent to nearly third of annual consumption in Germany, the region’s biggest user.

“The trend is clear,” according Niek van Kouteren, a senior trader at Dutch energy company PZEM NV. Suppliers from Moscow to Houston “will have room to take advantage of the momentum,” he said.

Booming summer demand will support shipments from Russia, Norway, Qatar and the U.S. Almost 60% more gas than last year will be needed to refill inventories after cooler March weather across Europe kept demand elevated. Filling the storage gap before next heating season is expected to benefit both pipeline exporters like Gazprom PJSC, as well as liquefied natural gas players such as Texas-based Cheniere Energy Inc.

#Israel's Delek Group sees record Q4 profit on Ithaca revaluation | Reuters

Israel's Delek Group sees record Q4 profit on Ithaca revaluation | Reuters

Israel’s Delek Group on Wednesday reported a record profit in the fourth quarter on strong revenue and a boost in the value of its North Sea unit Ithaca.

Net profit rose to about 1.1 billion shekels ($330 million) for the October-December quarter, up from 311 million a year earlier.

Revenue rose to 1.63 billion shekels from 1.4 billion.

Alpha Dhabi unit buys $953 million stake in Aldar from Mubadala | Reuters

Alpha Dhabi unit buys $953 million stake in Aldar from Mubadala | Reuters

Abu Dhabi state fund Mubadala has sold a 3.5 billion dirham ($953 million) stake in property developer Aldar to a subsidiary of investment firm Alpha Dhabi Holding, the fund said in a statement on Wednesday.

The subsidiary, Sublime Commercial Investment, acquired a 12.21% strategic stake in Aldar, the statement said. Mubadala will remain Aldar’s largest shareholder with 25%, it said.

“Institutional investor interest in Aldar reflects confidence in the Abu Dhabi real estate sector and Aldar’s central role in implementing the Emirate’s economic diversification strategy,” the statement said.

OPEC cuts, vaccines to sustain oil's recovery: Reuters poll | Reuters

OPEC cuts, vaccines to sustain oil's recovery: Reuters poll | Reuters

Oil prices will stabilise above $60 a barrel level this year, as vaccine rollouts support a demand recovery and OPEC and its allies continue to rein in supply, a Reuters poll showed on Wednesday.

The survey of 48 participants forecast Brent would average $63.12 per barrel in 2021, up from last month’s consensus of $59.07 and the average price so far this year of $59.36.

The benchmark was trading close to $64 on Wednesday.

“With vaccinations expected to gain pace and OPEC+ likely to keep to a cautious approach — reducing production cuts when demand recovers — we expect oil inventories to normalise by mid-year, which should support prices,” said UBS analyst Giovanni Staunovo.

Oil demand was seen growing by 5 million-7 million barrels per day (bpd) this year, despite renewed COVID-19 lockdowns in Europe.

#Saudi Unemployment Falls in Fourth Quarter As Virus Slows - Bloomberg

Saudi Unemployment Falls in Fourth Quarter As Virus Slows - Bloomberg

Unemployment among Saudi nationals fell to 12.6% in the fourth quarter as coronavirus cases in the kingdom declined and business began to pick up.

That compares to 14.9% in the third quarter. Joblessness among Saudi men reached 7.1%, while 24.4% of Saudi women were without jobs.

Job creation is the biggest domestic challenge facing Saudi Crown Prince Mohammed bin Salman as he reshapes an economy long dependent on exported oil and imported labor. Unemployment among Saudi nationals hit a record high of 15.4% last year, when the Covid-19 pandemic set back the de facto ruler’s Vision 2030 plan to transform the world’s largest oil exporter into a regional business and tourism hub.

Coronavirus cases in the kingdom peaked last summer, then gradually decreased over the third and fourth quarters as the government eased restrictions on gatherings and businesses. Gross domestic product grew 2.5% in the fourth quarter compared to the previous three months, though it shrank 3.9% compared to the same period in 2019 -- dragged down by a contraction in the oil sector.

Foreigners comprise about a third of the 34 million-strong population. The government is the main employer of Saudis -- a model it can’t afford to sustain -- while the rest of the economy relies on cheap labor from Asian and other Arab countries. Three-quarters of private sector workers are foreigners.

OPEC+ Panel Revises Down Oil-Demand Estimate on #Saudi Suggestion - Bloomberg

OPEC+ Panel Revises Down Oil-Demand Estimate on Saudi Suggestion - Bloomberg

A panel of OPEC+ technical experts agreed to revise down oil-demand estimates for 2021, signaling a more negative view of the market just days before the group decides on production policy.

The OPEC+ Joint Technical Committee now estimates that global oil demand will expand by 5.6 million barrels a day this year, down from 5.9 million previously, according to delegates and documents seen by Bloomberg.

The revision, which mainly affects the next few months, follows a recommendation from OPEC Secretary-General Mohammad Barkindo earlier on Tuesday that the coalition should remain very cautious.

#Saudi Firms to Cut Dividends For Prince’s $1.3 Trillion Plan - Bloomberg

Saudi Firms to Cut Dividends For Prince’s $1.3 Trillion Plan - Bloomberg

Saudi Arabia’s biggest listed companies, including energy giant Aramco, will reduce their dividends and redirect the money to the local economy as the crown prince tries to get his economic overhaul plan back on track.

Minority shareholders of Aramco -- the world’s biggest oil company and 98% owned by the kingdom -- will still get dividends, Mohammed bin Salman, the kingdom’s de facto leader, said. Investors in other firms will profit because stock prices will rise as the extra investment boosts the economy, he said.

Twenty-four firms such as Saudi Basic Industries Corp., Almarai Co., Saudi Telecom Co. and National Shipping Co. have agreed to join the plan, contributing 5 trillion riyals ($1.33 trillion) of domestic capital spending over the next 10 years, he said.

The new plan comes after last year’s coronavirus pandemic and oil market turmoil created a double crisis for Saudi Arabia, setting back the 35-year-old’s goals to boost the non-oil economy and slash unemployment.

#Saudi shares gain ahead of OPEC+ meeting; other markets little changed | Reuters

Saudi shares gain ahead of OPEC+ meeting; other markets little changed | Reuters

Saudi Arabia’s stock market rose sharply on Wednesday, amid rising oil prices as investors bet OPEC and its allies would largely agree to extend their supply curbs, while other major Gulf markets were little changed in early trade.

The kingdom’s benchmark index advanced 1.5%, buoyed by a 2% rise in Al Rajhi Bank and a 2.5% increase in petrochemical maker Saudi Basic Industries.

OPEC and its allies, together called OPEC+, are set to meet on Thursday, following a month in which oil prices have whipsawed on concerns about extended pandemic lockdowns in Europe, slow vaccine rollouts and rising COVID-19 cases in India and Brazil, pitted against growing optimism on growth in the United States.

Saudi Arabia, the de facto leader of OPEC, is prepared to back an extension of the supply cuts into June, including its own voluntary cut, to boost prices, a source briefed on the matter told Reuters this week.

Oil prices, which are the key catalyst for the Gulf’s financial markets, rose 46 cents, or 0.7%, to $64.60 a barrel at 0635 GMT, after falling 1.3% on Tuesday. [O/R]

Dubai’s main share index eased 0.1%, hit by a 0.4% fall in top lender Emirates NBD.

In Qatar, the benchmark added 0.3%, with Qatar Islamic Bank gaining 0.8%.

Oil prices gain on expectations OPEC+ will keep lid on output | Reuters

Oil prices gain on expectations OPEC+ will keep lid on output | Reuters

Oil prices rose on the eve of meeting between OPEC and its allies, as investors were betting the producers would largely agree to extend their supply curbs into May.

OPEC+ has raised concerns that rising numbers of coronavirus infections globally and lockdown measures will impact the recovery in demand for oil, according to a report from the group’s experts panel meeting seen by Reuters.

Brent crude futures for May, which expires on Wednesday, rose 32 cents, or 0.5%, to $64.46 a barrel at 0525 GMT, after falling 1.3% on Tuesday. The more active Brent contract for June was up 25 cents, or 0.4%, at $64.42 a barrel.

The benchmark has shed 2.5% so far this month, compared with a 18% rise in February.

U.S. West Texas Intermediate (WTI) crude futures climbed 26 cents, or 0.4%, to $60.81 a barrel, after falling 1.6% in the previous session.

Once heroes, India's ex-Gulf workers forge new futures | Reuters

Once heroes, India's ex-Gulf workers forge new futures | Reuters

It is not yet dawn but Yeroor village is long awake, the hum of productivity floating over ‘Gulf Street’, a lush green boulevard named for the thousands of workers who leave the southern Indian state of Kerala every year for jobs in the Middle East.

But now the workers are back, from machine operator Sudheesh Kumar, who has been forced back into manual labour in Yeroor to make ends meet, to former banker Binoj Kuttappan, who has taken up dog breeding in the state capital Thiruvananthapuram.

In the single biggest reverse migration in more than 50 years, workers from the Gulf have streamed back to the coastal state of Kerala in the past year, propelled by a pandemic that deflated dreams of overseas riches and changing family fortunes.

Whilst once they came home wealthy and revered, bearing gold, sunglasses, clothes and funds to buy homes, now they have returned sheepish and penniless.

“Prior to COVID, they were celebrated as heroes. Now they have nothing,” said Irudaya Rajan, a professor who has studied migration patterns in Kerala, India’s southernmost state.

#SaudiArabia's bourse invites banks to pitch for roles in its upcoming IPO: sources | Reuters

Saudi Arabia's bourse invites banks to pitch for roles in its upcoming IPO: sources | Reuters

Saudi Arabia’s bourse, Tadawul, has invited banks to pitch for roles in its highly-anticipated flotation, three sources told Reuters on Wednesday.

With a market capitalisation of $2.5 trillion, Tadawul is the Arab world’s largest stock exchange.

Tadawul hired HSBC in 2016 to manage an initial public offering (IPO) initially planned for 2018 but put that on hold due to oil giant Saudi Aramco’s record $29.4 billion listing at the end of 2019.

A request for proposals (RFP) was sent to a number of international and local banks to determine their roles for the bourse’s upcoming share offering, said the sources, declining to be named as the matter is not public.

Oil falls as Suez Canal reopens, dollar rallies; eyes on OPEC+ meeting | Reuters

Oil falls as Suez Canal reopens, dollar rallies; eyes on OPEC+ meeting | Reuters

Oil prices slid more than 1% on Tuesday as the Suez Canal reopened to traffic and the U.S. dollar rallied.

Investors shifted focus to the upcoming OPEC+ ministerial meeting on Thursday, where analysts expect the group to extend supply curbs given dim demand prospects.

Brent crude fell 84 cents, or 1.3%, to settle at $64.14 a barrel while West Texas Intermediate U.S. oil ended the session down $1.01, or 1.6%, at $60.55 barrel.

The benchmarks held their losses in post-settlement trade after industry data showed U.S. crude inventories swelled by 3.9 million barrels last week, sources said citing the American Petroleum Institute’s weekly report. Analysts in a Reuters poll forecast a build of about 100,000 barrels.

Second day of trading for Murban crude contracts | The National

Second day of trading for Murban crude contracts | The National

Murban crude futures, Abu Dhabi's new oil benchmark, traded in line with international benchmark Brent on its second day of trading on the commodities exchange at ADGM.

The Murban futures contract for June delivery was trading 0.5 per cent lower at $63.57 per barrel at 7.28pm UAE time.

Brent, which underpins the majority of global oil trade, was 0.6 per cent lower at $64.57 per barrel. West Texas Intermediate, which prices oil on the basis of a basket of US crude grades, was lower by 0.8 per cent at $61.07 per barrel.

Abu Dhabi, which accounts for nearly all of the UAE's production, commenced trading on its popular Murban grade on Monday.

The light, sweet type of crude, which flows at the rate of 1.7 million barrels per day, accounts for half of the country's production.

The contracts are traded on Ice Futures Abu Dhabi, a new commodities exchange based in the emirate's financial free zone, Abu Dhabi Global Market.

Some 360 contracts for June delivery, which expire at the end of this month, traded on the second day, down from 6,344 on the opening day's trading.

Oil prices have remained depressed amid fresh lockdowns imposed on various parts of Europe and rising Covid-19 infections in other parts of the world.

Concerns over inflation have also depressed prices, which may receive a boost when Opec+ gathers for its monthly meetings on Wednesday and Thursday.

#Qatar Petroleum takes over ownership of first-ever LNG plant | Reuters

Qatar Petroleum takes over ownership of first-ever LNG plant | Reuters

Qatar Petroleum said on Tuesday it would take full ownership of its Qatargas 1 liquefied natural gas (LNG) plant when its 25-year contract with international investors including Exxon Mobil Corp and Total SE expires next year.

The decision not to extend the contracts for the country’s first-ever LNG processing plan came as Qatar Petroleum (QP), the world’s top LNG producer, prepares to vastly expand its capacity in the coming years with foreign investment.

Qatargas 1, established in 1984, has an annual capacity of 10 million tonnes of LNG. It is a joint venture between QP, which holds a 65% stake with Total (10%), ExxonMobil (10%), Marubeni Corp (7.5%) and Mitsui & Co Ltd (7.5%).

Qatar Petroleum said in a statement it would not renew agreements with the companies when they expire on 31 December 2021.

“As a result, Qatar Petroleum will become the sole owner of 100% of the QG1 assets and facilities on 1 January 2022.”

International energy companies had previously hoped that partnerships with QP on existing LNG production facilities, known as trains, would be extend, albeit at different terms, analysts at Credit Suisse said in a note.

“QP had previously not indicated its approach for awarding the post-2021 contract. Now we know that when existing licenses expire, QP appears to plan without partners,” Credit Suisse said.

#Saudi private sector to invest $1.3 trillion in diversification by 2030: Crown Prince | Reuters

Saudi private sector to invest $1.3 trillion in diversification by 2030: Crown Prince | Reuters

Saudi Arabia’s Crown Prince Mohammed bin Salman said on Tuesday the local private sector will invest 5 trillion riyals ($1.3 trillion) between now and 2030 as part of new programme to help diversify the economy.

The private sector investment is part of the 12 trillion riyals worth of investments in the economy planned by 2030, Prince Mohammed said in a televised speech.

The amount also includes 3 trillion riyals from the country’s sovereign wealth fund, the Public Investment Fund (PIF), and 4 trillion riyals as part of a new Saudi investment strategy, he said.

The latest move is an effort by the Saudi government to bring in the private sector alongside the PIF to help diversify the economy to wean it off its dependence on oil.

Crude oil exports still account for more than half the kingdom’s income.

#Saudi mall operator Arabian Centres sells $650 million in sukuk | Reuters

Saudi mall operator Arabian Centres sells $650 million in sukuk | Reuters

Saudi mall operator Arabian Centres on Tuesday launched $650 million in 5-1/2 year sukuk, or Islamic bonds, at 5.625%, a document showed.

The yield was tightened from initial guidance of around 5.875% after orders topped $1.35 billion, the document from one of the banks on the deal showed.

Credit Suisse, Goldman Sachs, HSBC, Albilad Investment, JPMorgan, Kamco Invest and Warba Bank arranged the deal.

Sources told Reuters earlier this month that Arabian Centres, which operates 21 shopping centres across Saudi Arabia, was planning to raise $500 million via sukuk.

The company has said the debt sale will be used for general corporate purposes and to fulfil its financial and strategic objectives.

How Lex Greensill and David Cameron tried to woo #SaudiArabia’s crown prince | Financial Times

How Lex Greensill and David Cameron tried to woo Saudi Arabia’s crown prince | Financial Times

By reports of Lex Greensill’s account of the trip, the Australian financier explained he bonded under the night sky with Saudi Crown Prince Mohammed bin Salman over both having studied law © FT montage; Shutterstock, Bloomberg AFP via Getty 

Lex Greensill had penetrated the British establishment, forging close links with the country’s highest-ranking civil servants and ministers and lobbying for lucrative government contracts. 

Now the Australian financier had a new sovereign client in mind, where wealth and power were more concentrated and the right relationships could transform his business: Saudi Arabia. 

Before Greensill Capital collapsed this month, one of Lex Greensill’s favourite anecdotes was a camping trip he said he had taken with David Cameron and Saudi Crown Prince Mohammed bin Salman. 

Accompanied by the former UK prime minister, who was now his paid adviser, Greensill visited the desert with Prince Mohammed, the kingdom’s de facto leader, according to three people who heard his account of the journey. 

One of the people placed the trip during January or February 2020, shortly before the spread of coronavirus largely halted international travel. Flight records for Greensill Capital’s four private planes show a series of trips to Saudi Arabia in the first three months of last year.

#AbuDhabi outperforms Gulf markets | Reuters

Abu Dhabi outperforms Gulf markets | Reuters

The Abu Dhabi stock market ended higher on Tuesday, reaching its highest level since 2005, while the Saudi index was supported by utility company Saudi Electricity after it reported strong full-year earnings.

In Abu Dhabi, the index finished 1.5% higher, led by a 2.7% gain in telecoms firm Etisalat and a 1.3% increase in the country’s largest lender First Abu Dhabi Bank

Abu Dhabi, the capital of the United Arab Emirates, started trading a Murban crude futures contracts on Monday, offering a potential rival benchmark for trading Middle East crude.

“It is a great step to have the leading Abu-Dhabi oil grade traded freely around the globe. This ensures more transparency and reliability for traders and investors. Also, this will enable oil traders to hedge their exposures,” said Wael Makarem, market analyst at ICM.com.

As the volume picks up, the ICE Futures Abu Dhabi (IFAD) will become more remarkable and could open the way for further instruments that could serve investors, Makarem added.

Elsewhere, Gulf Pharmaceutical Industries (Julphar) soared 14%, extending gains from the previous session.

Julphar begun interim manufacturing of a vaccine from China’s Sinopharm, part of a joint venture between Sinopharm and Abu Dhabi-based G42.

Under the JV, a new main plant is being built in Abu Dhabi with production capacity of 200 million Hayat-Vax doses a year.

Saudi Arabia’s benchmark index rose 0.2%, supported by a 9.9% surge in Saudi Electricity after it reported a sharp rise in full-year profit. (Full Story)

The utility also proposed a cash dividend of 0.70 riyal per share for the year 2020.

However, the index’s gains were capped by losses at Al Rajhi Bank, which went ex-dividend.

Dubai’s main share index added 0.2%, with its top bank Emirates NBD climbing 1.8%.

In Qatar, the index closed 0.6% higher, led by a 2.4% rise in lender Masraf Al Rayan.

OPEC+ Panel Revises Down Oil-Demand Estimate on Saudi Suggestion - Bloomberg

OPEC+ Panel Revises Down Oil-Demand Estimate on Saudi Suggestion - Bloomberg

A panel of OPEC+ technical experts agreed to revise down oil-demand estimates for 2021 after Saudi Arabia suggested that the figure looked too high, delegates said.

The move, which was also supported by Algeria, comes just days before the group meets to discuss production levels for May, and follows a recommendation from OPEC Secretary-General Mohammad Barkindo that the coalition should remain very cautious.

At the previous meeting, that sense of caution led to a surprise decision to maintain almost all of the cartel’s output curbs, instead of boosting production in anticipation of the economic recovery from the coronavirus pandemic. The Organization of Petroleum Exporting Countries and its allies believe that decision has since been vindicated.

While fuel demand in the U.S. has shown strong signs of a rebound, a resurgence of the virus has undermined the recovery elsewhere, convincing the cartel it made the right call, according to several OPEC+ delegates who asked to speak anonymously. They predict the group will again refrain from significantly opening the taps when it meets on April 1.

#Saudi mall operator Arabian Centres gives initial guidance for dollar sukuk - document | Reuters

Saudi mall operator Arabian Centres gives initial guidance for dollar sukuk - document | Reuters

Saudi mall operator Arabian Centres on Tuesday gave initial price guidance of around 5.875% for 5-1/2-year U.S. dollar-denominated sukuk, or Islamic bonds, a document showed.

Credit Suisse, Goldman Sachs, HSBC, Albilad Investment, JPMorgan, Kamco Invest and Warba Bank are arranging the deal, which is expected to be of benchmark size and launch later on Tuesday, the document from one of the banks showed.

Sources told Reuters earlier this month that Arabian Centres, which operates 21 shopping centres across Saudi Arabia, was planning a $500 million sukuk sale.

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

#SaudiArabia's PIF to underpin recovery of kingdom's construction sector | The National

Saudi Arabia's PIF to underpin recovery of kingdom's construction sector | The National

Saudi Arabia's construction sector is set to recover this year, benefiting from the Public Investment Fund's move to direct more funding to the local economy.

Contract awards in 2020 in the kingdom slumped by around 60 per cent to 79.5 billion Saudi riyals ($21.2bn) as project owners wrestled with movement restrictions to halt the spread of Covid-19, global supply chain disruptions and reductions in manpower capacity, according to the US-Saudi Business Council.

"As the global economy crawls back to a new normal, the role of the PIF will be instrumental in developing the local economy," the USSBC said.

The Arab world's largest economy increased spending by an additional $42bn in 2020 to deal with the impact of the pandemic. But capital expenditure was cut to $37bn, from a budgeted $46bn, which had a knock-on effect on construction.

#Saudi wants OPEC+ to extend oil cuts into June, source says | Reuters

Saudi wants OPEC+ to extend oil cuts into June, source says | Reuters

Saudi Arabia is prepared to support extending oil cuts by OPEC and its allies into June and is also ready to prolong its own voluntary cuts to boost prices amid a new wave of coronavirus lockdowns, a source briefed on the matter said on Monday.

After steady oil price gains earlier this year, OPEC and its allies, known as OPEC+, had hoped to ease output cuts.

But a fresh wave of lockdowns to prevent a new surge in the virus has pushed oil off this year’s highs, and four OPEC+ sources told Reuters this would most likely encourage the group to extend cuts into May when it meets on Thursday.

The source briefed on the matter said on Monday that Saudi Arabia was keen to extend cuts beyond May and into June.

“They don’t see demand as yet strong enough and want to prevent prices from falling,” the source said.

#Dubai’s Top Bank Is Said to Raise Gulf’s First Sustainable Loan - Bloomberg

Dubai’s Top Bank Is Said to Raise Gulf’s First Sustainable Loan - Bloomberg

Emirates NBD PJSC is raising around $1.75 billion in the Gulf region’s first sustainability-linked loan to refinance existing debt, according to people with knowledge of the plans.

Dubai’s biggest bank has shaved off about 25 to 30 basis points in the overall cost of the three-year loan, two of the people said, asking not to be identified because the information is private. Emirates NBD’s existing three-year facility came at an all-inclusive cost of 97.5 basis points over Libor.

Nearly 20 banks are participating in the loan, the people said. Emirates NBD has linked sustainability metrics including gender diversity in top management roles and water conservation to the loan. A spokesperson for the Dubai lender declined to comment.

Sustainability-linked loans tie deal spreads to borrowers’ performance in environmental, social and governance goals that can be measured by key performance indicators or external ESG ratings. Such deals include so-called margin ratchets, which will see companies pay less if they hit specific goals, or more if they miss their targets.

OPEC+ Readies for Output Talks With Cautious Approach Vindicated - Bloomberg

OPEC+ Readies for Output Talks With Cautious Approach Vindicated - Bloomberg

As OPEC and its allies prepare for another decision on oil output, the producers believe their defiantly cautious approach is paying off.

The coalition led by Saudi Arabia was widely criticized three weeks ago when it rebuffed calls to revive some of the crude production halted during the pandemic. Energy Minister Prince Abdulaziz bin Salman made clear that he wasn’t going to put his faith in predictions of a post-Covid rebound, saying he would only believe in the demand recovery “when I see it.”

Since then, fuel demand in the U.S. has shown strong signs of recovery. But a resurgence of the virus elsewhere has convinced the cartel it made the right call, according to several OPEC+ delegates who asked to speak anonymously. They predict the group will again refrain from significantly opening the taps when it meets on April 1.

“Prince Abdulaziz remains ever-concerned -- he’s unwilling to say that Covid is in the rear-view mirror,” said Helima Croft, chief commodities strategist at RBC Capital Markets. “More likely than not, we’re looking at a Saudi rollover of their production cut.”

Big Oil's Secret World of Trading Fuels Profits as Climate Change Worries Rise - Bloomberg

Big Oil's Secret World of Trading Fuels Profits as Climate Change Worries Rise - Bloomberg

It was a bleak moment for the oil industry. U.S. shale companies were failing by the dozen. Petrostates were on the brink of bankruptcy. Texas roughnecks and Kuwaiti princes alike had watched helplessly for months as the commodity that was their lifeblood tumbled to prices that had until recently seemed unthinkable. Below $50 a barrel, then below $40, then below $30.

But inside the central London headquarters of one of the world’s largest oil companies, there was an air of calm. It was January 2016. Bob Dudley had been at the helm of BP Plc for six years. He ought to have had as much reason to panic as anyone in the rest of his industry. The unflashy American had been predicting lower prices for months. He was being proved right, though that was hardly a reason to celebrate.

Unlike most of his peers, Dudley was no passive observer. At the heart of BP, far removed from the sprawling network of oil fields, refineries, and service stations that the company is known for, sits a vast trading unit, combining the logistical prowess of an air traffic control center with the master-of-the-universe swagger of a macro hedge fund. And, unknown to all but a few company insiders, BP’s traders had spotted, in the teeth of the oil price collapse, an opportunity.

Over the course of 2015, Dudley had acquired a reputation as the oil industry’s Cassandra. Oil prices had been under pressure ever since Saudi Arabia launched a price war against U.S. shale producers a year earlier. When crude prices started falling, he confidently predicted they would remain “lower for longer.” A few months later, he went further. Oil prices, he said, were due to stay “lower for even longer.”

Oil Dips Near $61 With Traders Weighing Uneven Demand, OPEC Cuts - Bloomberg

Oil Dips Near $61 With Traders Weighing Uneven Demand, OPEC Cuts - Bloomberg

PRICES:
WTI for May delivery fell 42 cents to $61.14 a barrel at 10:10 a.m. London time Brent for May was down 0.5% at $64.67

Oil dipped toward $61 a barrel in New York, following two days of gains, as traders weighed risks to the demand recovery ahead of OPEC+’s ministerial meeting this week.

West Texas Intermediate slid 0.7% after closing Monday at the highest in almost two weeks. While fuel consumption is rising in many parts of the world, risks remain, with the head of the U.S. Centers for Disease Control and Prevention warning of “impending doom” as cases and deaths in the country pick up.

S&P affirms ratings on top #UAE banks, revises outlook to stable | ZAWYA MENA Edition

S&P affirms ratings on top UAE banks, revises outlook to stable | ZAWYA MENA Edition

S&P Global Ratings on Tuesday affirmed its ratings on First Abu Dhabi Bank (FAB), Abu Dhabi Commercial Bank (ADCB), Sharjah Islamic Bank (SIB), and Mashreqbank (Mashreq). The outlook for all the banks were revised to stable from negative, the ratings agency said in a note.

S&P lowered the long-term issuer credit ratings on National Bank of Fujairah (NBF) to 'BBB' from 'BBB+' and revised the outlook on the bank to stable from negative.

The sharp economic contraction in 2020--and prospects of a protracted recovery in 2021 and beyond--will have varying effects on rated UAE banks, it said in a note.

“We expect the residential real estate sector will remain under pressure for at least another year or two because of continuous oversupply, while demand-driven weaknesses will hamper the tourism, hospitality, and aviation sectors, as well as some trading sectors. We therefore expect UAE banks' asset-quality indicators will continue to deteriorate in the next 12-24 months, as regulatory forbearance measures are gradually lifted, and that credit losses will likely remain elevated.”

Oil gains as focus switches to OPEC+ extending output cuts | Reuters

Oil gains as focus switches to OPEC+ extending output cuts | Reuters

Oil prices rose on Tuesday as shipping traffic resumed through the Suez Canal after days on hold and focus turned to an OPEC+ meeting this week where the extension of supply curbs may be on the table amid new coronavirus pandemic lockdowns.

Brent crude was down 21 cents, or 0.3%, at $65.19 a barrel by 0411 GMT. U.S. oil was up 19 cents, or 0.3%, at $61.75 a barrel.

Ships were moving through the Suez Canal again on Tuesday after tugs refloated the giant Ever Given container carrier, which had been blocking a narrow section of the passage for almost a week, causing a huge build-up of vessels around the waterway.

With the likelihood that the disruption will prove minimal, the market is turning its focus to Thursday’s meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia in Vienna, collectively known as OPEC+.

MIDEAST STOCKS- #AbuDhabi leads major Gulf markets higher | Nasdaq

MIDEAST STOCKS-Abu Dhabi leads major Gulf markets higher | Nasdaq

The Abu Dhabi stock market rose on Tuesday, boosted by a surge in pharmaceutical firm Julphar, while other major markets in the region were also firm in early trade.

Julphar begun interim manufacturing of a vaccine from China's Sinopharm, part of a joint venture between Sinopharm and Abu Dhabi-based G42.

Under the JV, a new main plant is being built in Abu Dhabi with production capacity of 200 million Hayat-Vax doses a year.

In Abu Dhabi, the index .ADI gained 0.8%, buoyed by the 14% jump in Gulf Pharmaceutical Industries (Julphar) JULPHAR.AD, on track to extend gains from the previous session.

Saudi Arabia's benchmark index .TASI added 0.1%, helped by a 4.1% rise in Saudi Electricity 5110.SE after it reported a sharp rise in full-year profit.

The utility firm also proposed a cash dividend of 0.70 riyal per share for the year 2020.

However, the index's gains were capped by losses at Al Rajhi Bank 1120.SE, which went ex-dividend.

Dubai's main share index .DFMGI edged up 0.1%, with property developer Emaar Properties EMAR.DU advancing 0.9%.

Dubai Holding, the investment vehicle of Dubai's ruler Sheikh Mohammed bin Rashid al-Maktoum, said on Monday it had partnered with five firms to develop a 4 billion dirham ($1.09 billion) energy-from-waste facility.

The Qatari index .QSI gained 0.5%, led by a 2.4% rise in sharia-compliant lender Masraf Al Rayan MARK.QA.

Oil Rises for Second Day With Focus Moving Toward OPEC+ Meeting - Bloomberg

Oil Rises for Second Day With Focus Moving Toward OPEC+ Meeting - Bloomberg

PRICES:

WTI for May delivery rose 59 cents to settle at $61.56 a barrel Brent for the same month gained 41 cents to end the session at $64.98 a barrel Both benchmarks were at the highest since March 17 Murban for June delivery traded at $63.40 a barrel on ICE Futures Abu Dhabi Oil climbed to the highest in almost two weeks as traders looked ahead to this week’s OPEC+ meeting with speculation that renewed demand concerns will spur the group to keep production in check. Futures rose nearly 1% in New York, notching a second straight daily gain. Worries over the near-term recovery in demand, amid reimposed lockdown measures in Europe particularly, have raised expectations for OPEC+ to decide to keep production restrained at Thursday’s meeting. At the same time, the U.S. is providing a bright spot in the consumption rebound, with long-ailing jet fuel flashing signs of strength. “Oil has done a really good job of shrugging off last week’s selloff, and hopefully can have a run back up to recent contract highs,” said Phil Streible, chief market strategist at Blue Line Futures LLC in Chicago. The expectations are for OPEC+ to maintain cuts “because they can see how fragile the market is, and they don’t want to derail the current recovery in prices.”

ADNOC goes live with futures and commodities trading exchange IFAD | Energy – Gulf News

ADNOC goes live with futures and commodities trading exchange IFAD | Energy – Gulf News

The Abu Dhabi energy giant ADNOC has launched the ICE Markets Intercontinental Exchange Futures Abu Dhabi (IFAD), becoming the first futures and commodities trading exchange established in the emirate. It is located at Abu Dhabi Global Market (ADGM).

Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Group CEO of ADNOC, announced the launch. In a statement, ADGM saud: “We congratulate @AdnocGroup on the launch of their Murban Crude Oil contract, to be traded on IFAD. This milestone partnership bears witness to Abu Dhabi’s status as a leader in global #energy and an international #trading hub.”

Earlier this month, ADNOC announced that its Murban, Upper Zakum, Das and Umm Lulu crude grades will all be sold 'destination-free' from June, allowing its crude oils to become a freely-traded commodity.

Latest: Adnoc rings New York opening bell to celebrate Murban crude futures trading in #AbuDhabi | The National

Latest: Adnoc rings New York opening bell to celebrate Murban crude futures trading in Abu Dhabi | The National

Abu Dhabi National Oil Company rang the opening bell at the New York Stock Exchange to celebrate the launch on Monday of crude futures contracts tracking the UAE's flagship Murban grade.

Murban joins the ranks of Brent, the most widely-traded oil benchmark, and US gauge West Texas Intermediate in pricing and trading oil.

Jeffrey Sprecher, chairman of ICE, and Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, Adnoc managing director and group chief executive, rang the opening bell in an online ceremony to mark the occasion.

"We believe on its very first day Murban will become a globally recognised benchmark," Mr Sprecher said in a video message earlier on Monday.

Oil Fluctuates With Volatility Lingering Ahead of OPEC+ Meeting - Bloomberg

Oil Fluctuates With Volatility Lingering Ahead of OPEC+ Meeting - Bloomberg

Oil switched between modest gains and losses as traders look ahead to this week’s OPEC+ meeting for signals of where the market is headed toward next.

Futures were little changed in New York after falling as much as 2.6% during a choppy trading session. The market is assessing the impact renewed coronavirus lockdowns will have on demand and the likelihood they spur OPEC+ to keep the reins on supply when the group meets to discuss output policy on Thursday.

U.S. equities fell as investors weighed to what extent a recent block trades selling spree would spread through financial markets. A strengthening U.S. dollar, which reduces the appeal of commodities priced in the currency, also weighed on crude futures.

“There’s volatility in the market coming from all over the place, and if the dollar continues to rip higher, that will not be good for crude,” said Bob Yawger, head of the futures division at Mizuho Securities. Still, “there’s support from the upcoming OPEC+ meeting. The virus situation right now is so dicey, it’s unlikely they can increase barrels.”

• WTI for May delivery rose 23 cents to $61.20 a barrel at 11:58 a.m. in New York
• Brent for the same month gained 3 cents to $64.60 a barrel
• Murban for June delivery traded at $63.38 a barrel on ICE Futures Abu Dhabi

#AbuDhabi launches new oil futures as it targets Asian refiners | Financial Times

Abu Dhabi launches new oil futures as it targets Asian refiners | Financial Times

Abu Dhabi began trading futures contracts for its most important oil grade Murban on Monday as the emirate seeks to create a rival regional benchmark as part of a big shake-up in the way its crude is traded. 

The Abu Dhabi National Oil Company began trading Murban futures on a new local exchange, the ICE Futures Abu Dhabi. It will compete with Dubai, operated by S&P Global Platts, and the Oman crude futures on the Dubai Mercantile Exchange. 

The contract was priced at $64.03 a barrel as of midday in London with 6,293 lots traded, ICE said on Twitter. Each lot is equivalent to 1,000 barrels. 

Adnoc said on Monday that the introduction of the Murban futures contract was the latest step in the company’s “transformation into a more market and customer-centric organisation”, giving buyers better price transparency, hedging flexibility and risk management abilities.

Mideast Stocks: #Dubai leads major Gulf markets higher | ZAWYA MENA Edition

Mideast Stocks: Dubai leads major Gulf markets higher | ZAWYA MENA Edition

Most stock markets in the Gulf ended higher on Monday, amid hopes that the busy Suez Canal waterway will soon be reopened after the ship blocking it was partially re-floated.

The 400-metre (430-yard) long Ever Given became jammed diagonally across a southern section of the canal in high winds early last Tuesday, halting traffic on the shortest shipping route between Europe and Asia.

Saudi Arabia's benchmark index gained 1.4%, buoyed by a 1.5% rise in Al Rajhi Bank and a 3.6% surge in National Commercial Bank.

"There is renewed hope in the GCC market as several industries are beginning to trend up. This is excellent news as the market took a bit of a hit last week, and performances were a bit lacklustre," said Daniel Takieddine, market analyst at FxPRIMUS.

Now, analysts expect that the market should rebound properly from last week’s doldrums and post even higher gains, Takieddine added.

Dubai's main share index .DFMGI advanced 2.1%, with its top lender Emirates NBD ENBD.DU rising 2.7%, while property developer Emaar Properties climbed 2.9%.

Dubai Holding, the investment vehicle of Dubai's ruler Sheikh Mohammed bin Rashid al-Maktoum, said on Monday it had partnered with five firms to develop a 4 billion dirham ($1.09 billion) energy-from-waste facility.

In Abu Dhabi, the index finished 1.2% higher, led by a 2.4% increase in telecoms firm Etisalat.

Elsewhere, shares of Gulf Pharmaceutical Industries (Julphar) soared 14.4% after the firm begun interim manufacturing of a vaccine from China's Sinopharm, part of a joint venture between Sinopharm and Abu Dhabi-based G42.

Under the JV, a new main plant is being built in Abu Dhabi with production capacity of 200 million Hayat-Vax doses a year.

The Qatari index closed 1.3% higher, as most of the stocks on the index traded in positive territory including petrochemical maker Industries Qatar.

Oil Fluctuates With Market Eyeing OPEC+ Meeting, Suez Canal - Bloomberg

Oil Fluctuates With Market Eyeing OPEC+ Meeting, Suez Canal - Bloomberg

Oil fluctuated between gains and losses with traders looking ahead to an OPEC+ meeting this week and as salvage teams partially refloated the giant vessel that has been blocking the Suez canal for days.

Prices have been volatile in recent days. The market’s focus remains on the impact renewed coronavirus lockdowns would have on demand, before the OPEC+ discussions on output policy on Thursday. The canal continues to be blocked days after the Ever Given lost control and ran aground, even though there has been some progress to move the giant container ship.

Oil is set to close out a fourth consecutive quarterly gain this week, aided by sustained supply curbs by the Organization of Petroleum Exporting Countries and its allies, and optimism that global demand will expand as Covid-19 vaccines. But a run of three weekly losses for WTI has put a dent, underpinning speculation that OPEC+ will continue to hold on to their output cuts.

With work to free the Ever Given appearing to make progress “the oil market is left to its own fundamental devices,” said Tamas Varga, analyst at brokerage PVM Oil Associates. “Attention will shift back to the stuttering inoculation programs, the seemingly unstoppable rise in infection rates in several parts of the world and the upcoming OPEC meeting.”

WTI for May delivery was 0.4% lower at $60.74 a barrel at 9:510 a.m. in New York, after earlier rising as much as 1.3% Brent for the same month lost 0.3% to $64.37 Murban for June delivery traded at $63.96 a barrel on ICE Futures Abu Dhabi

UPDATE 2-Murban crude futures start trading at new ICE, #AbuDhabi exchange | Reuters

UPDATE 2-Murban crude futures start trading at new ICE, Abu Dhabi exchange | Reuters

Abu Dhabi started trading Murban crude futures contracts on Monday, offering a potential rival benchmark for trading Middle East crude.

The key contract of the new ICE Futures Abu Dhabi (IFAD) oil exchange was priced at $63.18 per barrel as of 0900 GMT with 4,164 lots traded, ICE said on Twitter. Each lot is 1,000 barrels.

Abu Dhabi-based IFAD is backed by the Intercontinental Exchange Inc, Abu Dhabi National Oil Co (ADNOC) and partners including international oil majors.

“Starting today, Murban futures will be freely traded from Singapore to London, and from Abu Dhabi to New York,” ADNOC Chief Executive Sultan al-Jaber said at the launch event.

The Murban contract, which prices the flagship Abu Dhabi grade that accounts for more than half of ADNOC’s production, will offer an alternative benchmark to Dubai, operated by S&P Global Platts, and Oman crude futures traded on the Dubai Mercantile Exchange (DME).

The contract will enable traders to hedge Middle East crude and refining margins against the grade. It would also allow traders to compare the values of competing supplies from Russia, Europe and the United States with similar quality to Murban using a range of cash-settled derivatives against Brent, West Texas Intermediate.

The contract prices the crude two months ahead with the first expiry month set for June. It is a physically delivered contract with delivery at Fujairah in the United Arab Emirates on a free-on-board (FOB) basis.

#AbuDhabi Looks to Become Pharma Hub After Sinopharm Deal - Bloomberg

Abu Dhabi Looks to Become Pharma Hub After Sinopharm Deal - Bloomberg

Abu Dhabi is looking to transform itself into a pharmaceutical hub, with a goal to help distribute billions of vaccine doses.

“Our target for the future is to make Abu Dhabi a pharmaceutical center” and a “hub for life sciences,” Abu Dhabi Ports Chairman Falah Mohammed Al Ahbabi said at a virtual event on Monday. “We are building our airport, our capacity, our infrastructure and all our processes to achieve that target.”

The comments come after the United Arab Emirates, of which Abu Dhabi is the capital, become the first nation in the U.S-allied Gulf to set up a coronavirus vaccine production facility, boosting its efforts to become a supply hub to the Middle East and beyond.

Sinopharm CNBG and Abu Dhabi-based G42 said on Sunday they aim to produce up to 200 million doses annually at a plant that will become operational this year. G42 Group CEO Peng Xiao later told Bloomberg the company is talking to over 20 countries in the region “who are very interested in accessing the vaccine.”

Al Ahbabi said Abu Dhabi Ports can deliver 18 billion doses of vaccine in an area populated by 3.5 billion people. The company is part of the Hope Consortium, a logistics grouping with the capacity to distribute more than six billion doses.

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close