Seychelles Pays $1 to Acquire Etihad’s Stake in Its Flag Carrier - Bloomberg
Seychelles said it repurchased Etihad Airways’ 40% stake in its flag carrier for $1, ousted its board and began restructuring the airline’s debt.
Etihad accepted a 79% haircut on $72.3 million of debt owed by Air Seychelles Ltd., Patrick Payet, secretary of state at the nation’s finance ministry, said in an emailed response to queries. The government also offered to pay $20 million to bondholders with $71.5 million of debt outstanding, Payet said.
Etihad has been unwinding a global expansion plan through which the state-owned Gulf carrier bought a 40% stake in Air Seychelles in 2012. For Seychelles, known for its pristine beaches and diving sites, the revamp of the flag carrier is an opportunity to focus on profitable routes as travel slowly recovers from the pandemic-induced crisis.
“This is a time of opportunity for both Air Seychelles and the country, as tourism starts to rebuild following the reopening of its borders,” Etihad said in an emailed statement, without disclosing financial details. “Seychelles is an important destination on Etihad’s global network, with bookings steadily increasing.”
Remco Althuis, chief executive officer of Air Seychelles, and Chief Financial Officer Michael Berlouis will remain on until June 30, Etihad said.
The Indian Ocean nation is in talks with the Trade Development Bank for a $31.4 million loan, Payet said. The government will offer $20 million to bondholders and $11.4 million will be used to pay Etihad’s debt from 2022, he said.
Friday, 30 April 2021
India demand fears, weak Japan crude imports knock oil prices | Reuters
India demand fears, weak Japan crude imports knock oil prices | Reuters
Oil prices fell from six-week highs on Friday as investors unloaded positions after weak Japanese crude import data and on worries about fuel demand in India, where COVID-19 infections have soared.
U.S. crude and global benchmark Brent logged their biggest daily drops in more than three weeks, but saw monthly gains of near 6% and 8%, respectively. Fuel demand worldwide is mixed, with consumption rising in the United States and China, while other nations resume lockdowns to stem the rising infection rate.
Brent crude settled at $67.25 a barrel, falling $1.31, or 1.9% on the last day of trading for the front-month June contract. U.S. West Texas Intermediate crude for June settled at $63.58 a barrel, down $1.43, or 2.2%. Brent gained 1.7% on the week and WTI rose 2.3%.
Oil prices fell from six-week highs on Friday as investors unloaded positions after weak Japanese crude import data and on worries about fuel demand in India, where COVID-19 infections have soared.
U.S. crude and global benchmark Brent logged their biggest daily drops in more than three weeks, but saw monthly gains of near 6% and 8%, respectively. Fuel demand worldwide is mixed, with consumption rising in the United States and China, while other nations resume lockdowns to stem the rising infection rate.
Brent crude settled at $67.25 a barrel, falling $1.31, or 1.9% on the last day of trading for the front-month June contract. U.S. West Texas Intermediate crude for June settled at $63.58 a barrel, down $1.43, or 2.2%. Brent gained 1.7% on the week and WTI rose 2.3%.
Oil prices to drift higher despite India demand hiccup | Reuters
Oil prices to drift higher despite India demand hiccup | Reuters
Oil prices will inch higher this year as vaccines revive demand and OPEC+ keeps a leash on supply, but the worsening COVID crisis in India and elsewhere poses a roadblock, a Reuters poll showed on Friday.
The survey of 49 participants forecast that Brent would average $64.17 in 2021, up from last month’s consensus of $63.12 per barrel and the $62.3 average for the benchmark so far this year. [O/R]
This is also the fifth straight upward revision in the 2021 consensus, and also the highest outlook for the period since January last year.
“With vaccine rollouts gaining pace this year, we anticipate people will likely go out again and businesses will fully reopen over the coming quarters — indeed, this is already happening in the U.S. and the UK,” supporting demand and pushing Brent to about $75 in the second half, UBS analyst Giovanni Staunovo said.
Oil demand was seen growing by 5.5 million-6.5 million barrels per day (bpd) this year.
This was in line with a cautiously optimistic picture drawn by the International Energy Agency earlier this month that producers may then need to pump 2 million bpd more to meet the expected demand.
The Organization of the Petroleum Exporting Countries has also raised its forecast, although three sources from the OPEC+ joint technical committee (JTC) flagged surging COVID-19 cases in India and elsewhere as a concern.
“The recent rise in COVID-19 cases in Europe, India, and Brazil, along with the risks associated with fast-spreading variants, could blunt the world oil demand recovery,” said Marshall Steeves, energy markets analyst at IEG Vantage.
India, the world’s third-biggest oil consumer, is being hit hardest by the pandemic, with large parts of the country now under lockdown. But some analysts say the impact may be limited.
“India oil demand growth will be affected for a couple of months at least, but may not make a major enough dent to global oil demand recovery,” said Suvro Sarkar, an analyst at DBS Bank.
Oil prices will inch higher this year as vaccines revive demand and OPEC+ keeps a leash on supply, but the worsening COVID crisis in India and elsewhere poses a roadblock, a Reuters poll showed on Friday.
The survey of 49 participants forecast that Brent would average $64.17 in 2021, up from last month’s consensus of $63.12 per barrel and the $62.3 average for the benchmark so far this year. [O/R]
This is also the fifth straight upward revision in the 2021 consensus, and also the highest outlook for the period since January last year.
“With vaccine rollouts gaining pace this year, we anticipate people will likely go out again and businesses will fully reopen over the coming quarters — indeed, this is already happening in the U.S. and the UK,” supporting demand and pushing Brent to about $75 in the second half, UBS analyst Giovanni Staunovo said.
Oil demand was seen growing by 5.5 million-6.5 million barrels per day (bpd) this year.
This was in line with a cautiously optimistic picture drawn by the International Energy Agency earlier this month that producers may then need to pump 2 million bpd more to meet the expected demand.
The Organization of the Petroleum Exporting Countries has also raised its forecast, although three sources from the OPEC+ joint technical committee (JTC) flagged surging COVID-19 cases in India and elsewhere as a concern.
“The recent rise in COVID-19 cases in Europe, India, and Brazil, along with the risks associated with fast-spreading variants, could blunt the world oil demand recovery,” said Marshall Steeves, energy markets analyst at IEG Vantage.
India, the world’s third-biggest oil consumer, is being hit hardest by the pandemic, with large parts of the country now under lockdown. But some analysts say the impact may be limited.
“India oil demand growth will be affected for a couple of months at least, but may not make a major enough dent to global oil demand recovery,” said Suvro Sarkar, an analyst at DBS Bank.
#SaudiArabia Tourism to Get 2 Billion Riyal Boost for Project Funds - Bloomberg
Saudi Arabia Tourism to Get 2 Billion Riyal Boost for Project Funds - Bloomberg
Saudi Arabia will provide up to 2 billion riyals ($533.4 million) to fund 113 tourism projects nationwide this year, as the kingdom aims to expand the sector under Crown Prince Mohammed bin Salman’s plan to diversify the economy.
The Tourism Development Fund and Riyad Bank, which is backed by the country’s sovereign wealth fund, will provide funding starting at 1 million riyals and rising to 100 million riyals for the biggest projects, according to a statement.
Last week, TDF enlisted Riyad Bank to help finance a 1.3 billion-riyal project in the holy city of Medina. Saudi Arabia started TDF with an initial capital of $4 billion.
Saudi Arabia will provide up to 2 billion riyals ($533.4 million) to fund 113 tourism projects nationwide this year, as the kingdom aims to expand the sector under Crown Prince Mohammed bin Salman’s plan to diversify the economy.
The Tourism Development Fund and Riyad Bank, which is backed by the country’s sovereign wealth fund, will provide funding starting at 1 million riyals and rising to 100 million riyals for the biggest projects, according to a statement.
Last week, TDF enlisted Riyad Bank to help finance a 1.3 billion-riyal project in the holy city of Medina. Saudi Arabia started TDF with an initial capital of $4 billion.
Oil prices slip from six-week high as India's demand worries weigh | Reuters
Oil prices slip from six-week high as India's demand worries weigh | Reuters
Oil prices slipped on Friday, taking a breather after touching their highest in six weeks as concerns of wider lockdowns in India and Brazil to curb the COVID-19 pandemic offset a bullish outlook on summer fuel demand and economic recovery.
Brent crude fell 31 cents, or 0.5%, to $68.25 a barrel by 0630 GMT, the last day’s trading for the front-month June contract. U.S. West Texas Intermediate crude for June was at $64.59 a barrel, down 42 cents, or 0.7%.
Prices also came under pressure after China’s factory activity growth slowed and missed forecasts in April, although a private sector survey showed that Japan’s factory activity expanded in April at the fastest pace since early 2018.
“The post-COVID-19 demand recovery is still uneven and the surge in Indian cases serves as a timely reminder that any rally to $70 is too premature,” Energy Aspects analysts said in a note.
Such a level is likely to be reached only in the third quarter this year, when demand improves materially and destocking ends, they said.
Oil prices slipped on Friday, taking a breather after touching their highest in six weeks as concerns of wider lockdowns in India and Brazil to curb the COVID-19 pandemic offset a bullish outlook on summer fuel demand and economic recovery.
Brent crude fell 31 cents, or 0.5%, to $68.25 a barrel by 0630 GMT, the last day’s trading for the front-month June contract. U.S. West Texas Intermediate crude for June was at $64.59 a barrel, down 42 cents, or 0.7%.
Prices also came under pressure after China’s factory activity growth slowed and missed forecasts in April, although a private sector survey showed that Japan’s factory activity expanded in April at the fastest pace since early 2018.
“The post-COVID-19 demand recovery is still uneven and the surge in Indian cases serves as a timely reminder that any rally to $70 is too premature,” Energy Aspects analysts said in a note.
Such a level is likely to be reached only in the third quarter this year, when demand improves materially and destocking ends, they said.
Thursday, 29 April 2021
#AbuDhabi Ports Sees More Debt Sales for Growth After First Bond - Bloomberg
Abu Dhabi Ports Sees More Debt Sales for Growth After First Bond - Bloomberg
Abu Dhabi Ports Co. plans to sell more debt to support investment after a debut bond of $1 billion on Wednesday.
The government-owned port operator in the capital of the United Arab Emirates will look at a mix of loans, bonds and sukuk as well as potential cash injections from its owner to fund growth, Chief Financial Officer Martin Aarup said in an interview. The company is planning $4.2 billion in investment over the next five years and could spend more on acquisitions, he added.
Demand for the bond, which was about 4.5 times oversubscribed, “reflects international confidence in the strength of our business and our strategy,” Abu Dhabi Ports Chairman Falah Mohamed Al Ahbabi said in a statement. The debut sale will also help the country push to diversify its economy and funding sources, he said.
The UAE, the third-biggest producer in the Organization of Petroleum Exporting Countries, has used its oil wealth to broaden its economy, diversifying into industries like tourism and developing global transport and trade hubs. Those businesses suffered last year as the coronavirus pandemic slashed energy use, cut air travel and blocked trade flows.
Volume handled by Abu Dhabi Ports, which is owned by government investment company ADQ, has largely returned to levels seen before the pandemic, said Ross Thompson, the port operator’s chief strategy officer. Visits by cruise lines and shipments of new cars are still below pre-pandemic levels and likely to remain subdued for a while longer, he said.
Abu Dhabi Ports boosted sales by 24% last year to $933 million. Adjusted earnings before interest, tax, depreciation and amortization rose 37% to $422 million.
The company aims to continue growing at double digit rates, Aarup said. It has no plans to sell shares to investors and can fund investment with cash flow, debt and additional equity from ADQ.
Abu Dhabi Ports Co. plans to sell more debt to support investment after a debut bond of $1 billion on Wednesday.
The government-owned port operator in the capital of the United Arab Emirates will look at a mix of loans, bonds and sukuk as well as potential cash injections from its owner to fund growth, Chief Financial Officer Martin Aarup said in an interview. The company is planning $4.2 billion in investment over the next five years and could spend more on acquisitions, he added.
Demand for the bond, which was about 4.5 times oversubscribed, “reflects international confidence in the strength of our business and our strategy,” Abu Dhabi Ports Chairman Falah Mohamed Al Ahbabi said in a statement. The debut sale will also help the country push to diversify its economy and funding sources, he said.
The UAE, the third-biggest producer in the Organization of Petroleum Exporting Countries, has used its oil wealth to broaden its economy, diversifying into industries like tourism and developing global transport and trade hubs. Those businesses suffered last year as the coronavirus pandemic slashed energy use, cut air travel and blocked trade flows.
Volume handled by Abu Dhabi Ports, which is owned by government investment company ADQ, has largely returned to levels seen before the pandemic, said Ross Thompson, the port operator’s chief strategy officer. Visits by cruise lines and shipments of new cars are still below pre-pandemic levels and likely to remain subdued for a while longer, he said.
Abu Dhabi Ports boosted sales by 24% last year to $933 million. Adjusted earnings before interest, tax, depreciation and amortization rose 37% to $422 million.
The company aims to continue growing at double digit rates, Aarup said. It has no plans to sell shares to investors and can fund investment with cash flow, debt and additional equity from ADQ.
#SaudiArabia Considers Starting a Homegrown Electric-Car Maker - Bloomberg
Saudi Arabia Considers Starting a Homegrown Electric-Car Maker - Bloomberg
Saudi Arabia has hired advisers including Boston Consulting Group to explore establishing its own domestic electric-car maker, according to people familiar with the matter.
The project is linked to existing plans to build up automotive infrastructure in the country and boost local manufacturing, said the people, who asked not to be identified because the deliberations aren’t public.
A spokesperson for Saudi Arabia’s sovereign-wealth fund said it is committed to stoking growth and diversifying the kingdom’s oil-reliant economy while declining to comment on specific projects.
The $400 billion Public Investment Fund has been active in the electric-vehicle space going back several years. It acquired a small stake in Tesla Inc. in 2018, and officials discussed supporting Elon Musk’s efforts to take the company private until the chief executive officer tweeted about his ambitions. The PIF sold almost all its Tesla shares before an epic rally that began in late 2019, though it’s now sitting on big gains from an investment in rival Lucid Motors Inc.
The PIF and Lucid have been in talks about building a factory near the Red Sea city of Jeddah, people familiar with the matter told Bloomberg News in January. The following month, the carmaker reached an agreement to merge with a special-purpose acquisition company and go public.
The emergence of battery-powered cars has inspired a range of new-vehicle projects from startups to state-owned enterprises such as Turkey’s Togg, which plans to launch several EVs in the coming years. While Saudi Arabia has more resources to shower on a project of its own, any new automaker would face a broad range of competitors sprouting up around the globe.
Saudi Arabia aims to agree on deals this year or next to expand local manufacturing, the head of the kingdom’s wealth fund, Yasir Al-Rumayyan, said during a briefing in Riyadh on Jan. 26.
“Now we’re in the process of looking at electric appliances,” he said. “In relation to cars, there is more than one project that we’re now looking at, and they will be executed this year or next year at the latest.”
Saudi Arabia has hired advisers including Boston Consulting Group to explore establishing its own domestic electric-car maker, according to people familiar with the matter.
The project is linked to existing plans to build up automotive infrastructure in the country and boost local manufacturing, said the people, who asked not to be identified because the deliberations aren’t public.
A spokesperson for Saudi Arabia’s sovereign-wealth fund said it is committed to stoking growth and diversifying the kingdom’s oil-reliant economy while declining to comment on specific projects.
The $400 billion Public Investment Fund has been active in the electric-vehicle space going back several years. It acquired a small stake in Tesla Inc. in 2018, and officials discussed supporting Elon Musk’s efforts to take the company private until the chief executive officer tweeted about his ambitions. The PIF sold almost all its Tesla shares before an epic rally that began in late 2019, though it’s now sitting on big gains from an investment in rival Lucid Motors Inc.
The PIF and Lucid have been in talks about building a factory near the Red Sea city of Jeddah, people familiar with the matter told Bloomberg News in January. The following month, the carmaker reached an agreement to merge with a special-purpose acquisition company and go public.
The emergence of battery-powered cars has inspired a range of new-vehicle projects from startups to state-owned enterprises such as Turkey’s Togg, which plans to launch several EVs in the coming years. While Saudi Arabia has more resources to shower on a project of its own, any new automaker would face a broad range of competitors sprouting up around the globe.
Saudi Arabia aims to agree on deals this year or next to expand local manufacturing, the head of the kingdom’s wealth fund, Yasir Al-Rumayyan, said during a briefing in Riyadh on Jan. 26.
“Now we’re in the process of looking at electric appliances,” he said. “In relation to cars, there is more than one project that we’re now looking at, and they will be executed this year or next year at the latest.”
Oil climbs to fresh 6-week high on bullish demand | Reuters
Oil climbs to fresh 6-week high on bullish demand | Reuters
Oil prices rose to fresh six-week highs on Thursday as strong U.S. economic data, a weak dollar and an expected recovery in demand outweighed concerns about higher COVID-19 cases in Brazil and India.
Brent LCOc1 futures rose $1.29, or 1.9%, to settle at $68.56 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.15, or 1.8%, to end at $65.01.
That put both benchmarks up for a third day in a row to their highest closes since March 15.
“Summer season is a synonym for driving season and drivers in the United States, China and the United Kingdom are about to start consuming more fuel, a development the market believes will make up for India’s COVID-19 downturn,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy.
He added that oil prices drew additional support from a weak dollar, which made “oil cheaper to buy internationally.”
Oil prices rose to fresh six-week highs on Thursday as strong U.S. economic data, a weak dollar and an expected recovery in demand outweighed concerns about higher COVID-19 cases in Brazil and India.
Brent LCOc1 futures rose $1.29, or 1.9%, to settle at $68.56 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.15, or 1.8%, to end at $65.01.
That put both benchmarks up for a third day in a row to their highest closes since March 15.
“Summer season is a synonym for driving season and drivers in the United States, China and the United Kingdom are about to start consuming more fuel, a development the market believes will make up for India’s COVID-19 downturn,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy.
He added that oil prices drew additional support from a weak dollar, which made “oil cheaper to buy internationally.”
#Qatar posts small surplus in Q1 as oil prices lift revenues | ZAWYA MENA Edition
Qatar posts small surplus in Q1 as oil prices lift revenues | ZAWYA MENA Edition
Qatar posted a 200 million riyals ($55 million) surplus in the first quarter this year, helped by a recovery in oil prices, the ministry of finance said on Thursday.
The tiny but rich Gulf state, the world's top liquefied natural gas (LNG) producer, saw total revenue of 45.2 billion riyals in the first three months of the year against 45 billion riyals in expenditure, the ministry said in a statement.
The economy shrank 3.7% last year due to the coronavirus crisis and weak oil demand, it said, but it expects real gross domestic product to grow 2.2% this year.
Qatar posted a 200 million riyals ($55 million) surplus in the first quarter this year, helped by a recovery in oil prices, the ministry of finance said on Thursday.
The tiny but rich Gulf state, the world's top liquefied natural gas (LNG) producer, saw total revenue of 45.2 billion riyals in the first three months of the year against 45 billion riyals in expenditure, the ministry said in a statement.
The economy shrank 3.7% last year due to the coronavirus crisis and weak oil demand, it said, but it expects real gross domestic product to grow 2.2% this year.
Oil Trades at Six-Week High With Demand Optimism Spurring Rally - Bloomberg
Oil Trades at Six-Week High With Demand Optimism Spurring Rally - Bloomberg
| PRICES |
|---|
Oil rose above $65 a barrel in New York for the first time in more than six weeks as signs of strengthening demand in key markets offset concerns about a Covid-19 resurgence in some countries, especially India. New York City aims to fully reopen July 1, while U.K. road fuel sales are nearing last year’s summer levels. Austrian refiner OMV AG is expecting to boost runs later in the year and Repsol SA reported a “slight recovery” in demand. Consumption may also get a boost when China breaks for an extended holiday on Saturday, with mobility expected to climb to a record. Broader markets climbed on Thursday after the Federal Reserve strengthened its assessment on the U.S. economy and reaffirmed aggressive policy support.  |
Mideast Stocks: #Saudi bourse underperforms subdued Gulf markets | ZAWYA MENA Edition
Mideast Stocks: Saudi bourse underperforms subdued Gulf markets | ZAWYA MENA Edition
Most stock markets in the Gulf ended lower on Thursday, with the Saudi index underperforming, dragged down by losses in its financial shares.
Saudi Arabia's benchmark index .TASI dropped 1.1%, with Al Rajhi Bank 1120.SE and petrochemical firm Saudi Basic Industries 2010.SE both sliding 3%.
On Wednesday, the Saudi index registered sharp gains after Crown Prince Mohammed bin Salman said the kingdom had no plans to introduce income tax and a decision last July to triple value-added tax (VAT) to 15% was temporary.
The country tripled VAT to offset the impact of lower oil revenue on state finances in a move that shocked citizens and businesses expecting more support from the government during the COVID-19 pandemic.
In Dubai, the main share index lost 0.6%, hit by a 0.8% fall in blue-chip developer Emaar Properties and a 2.3% slide in Aramex as the logistics firm went ex-dividend.
In Abu Dhabi, the index fell 0.6%, pressured by a 1% fall in First Abu Dhabi Bank, the country's largest lender, while telecoms giant Etisalat was down 0.6%.
"Strong corporate earnings from companies in the first quarter have helped drive gains in the past few days. However, with some analysts pointing to revenues falling short of pre-pandemic levels, there are concerns that the companies left to report their results might also not perform so optimally," said Michael Stark, research analyst at Exness.
"Investors now appear to be cashing out with the market on a high. Extended sell-offs could lead to an erosion of the gains made over the past few days."
In Qatar, the benchmark index eased 0.3%, with petrochemical maker Industrie Qatar losing 0.9%.
Elsewhere, telecoms firm Ooredoo, which retreated about 2% in early trade following a decline in first-quarter earnings, ended flat.
Most stock markets in the Gulf ended lower on Thursday, with the Saudi index underperforming, dragged down by losses in its financial shares.
Saudi Arabia's benchmark index .TASI dropped 1.1%, with Al Rajhi Bank 1120.SE and petrochemical firm Saudi Basic Industries 2010.SE both sliding 3%.
On Wednesday, the Saudi index registered sharp gains after Crown Prince Mohammed bin Salman said the kingdom had no plans to introduce income tax and a decision last July to triple value-added tax (VAT) to 15% was temporary.
The country tripled VAT to offset the impact of lower oil revenue on state finances in a move that shocked citizens and businesses expecting more support from the government during the COVID-19 pandemic.
In Dubai, the main share index lost 0.6%, hit by a 0.8% fall in blue-chip developer Emaar Properties and a 2.3% slide in Aramex as the logistics firm went ex-dividend.
In Abu Dhabi, the index fell 0.6%, pressured by a 1% fall in First Abu Dhabi Bank, the country's largest lender, while telecoms giant Etisalat was down 0.6%.
"Strong corporate earnings from companies in the first quarter have helped drive gains in the past few days. However, with some analysts pointing to revenues falling short of pre-pandemic levels, there are concerns that the companies left to report their results might also not perform so optimally," said Michael Stark, research analyst at Exness.
"Investors now appear to be cashing out with the market on a high. Extended sell-offs could lead to an erosion of the gains made over the past few days."
In Qatar, the benchmark index eased 0.3%, with petrochemical maker Industrie Qatar losing 0.9%.
Elsewhere, telecoms firm Ooredoo, which retreated about 2% in early trade following a decline in first-quarter earnings, ended flat.
Nasdaq #Dubai- listed Depa's 2020 revenues hit by Arabtec insolvency, COVID-19 disruptions | Markets – Gulf News
Nasdaq Dubai- listed Depa's 2020 revenues hit by Arabtec insolvency, COVID-19 disruptions | Markets – Gulf News
The Dubai-based interior fitouts company Depa saw 2020 revenues drop to Dh599.7 million, from Dh998.9 million a year ago, with COVID-19 led disruptions being the main cause.
Depa was also impacted by the insolvency proceedings at UAE’s biggest construction company Arabtec, with which it had a longstanding project relationship. The company's overall project backlog is Dh1.50 billion, while current net debt (excluding restricted cash) is at Dh52.1 million.
“Depa has responded, undertaking a strategic review and implementing the resultant transformation programme,” said Kevin Lewis, CEO of the Nasdaq Dubai listed entity. “This transformation programme has seen the group reduce its fixed cost base by more than Dh160 million; in addition to commencing a number of non-core asset disposals, including its highly successful Vedder business in Germany.
“The end result of Depa’s transformation programme will be a more flexible cost base better suited to the prevailing market environment and an improved liquidity position.”
The Dubai-based interior fitouts company Depa saw 2020 revenues drop to Dh599.7 million, from Dh998.9 million a year ago, with COVID-19 led disruptions being the main cause.
Depa was also impacted by the insolvency proceedings at UAE’s biggest construction company Arabtec, with which it had a longstanding project relationship. The company's overall project backlog is Dh1.50 billion, while current net debt (excluding restricted cash) is at Dh52.1 million.
“Depa has responded, undertaking a strategic review and implementing the resultant transformation programme,” said Kevin Lewis, CEO of the Nasdaq Dubai listed entity. “This transformation programme has seen the group reduce its fixed cost base by more than Dh160 million; in addition to commencing a number of non-core asset disposals, including its highly successful Vedder business in Germany.
“The end result of Depa’s transformation programme will be a more flexible cost base better suited to the prevailing market environment and an improved liquidity position.”
#Dubai Luxury Home Sales Boom As Rich Europeans Escape Covid Lockdowns - Bloomberg
Dubai Luxury Home Sales Boom As Rich Europeans Escape Covid Lockdowns - Bloomberg
The wealthiest home buyers fleeing virus lockdowns for Dubai are still finding bargains aplenty, turning March into the busiest month ever for the emirate’s top-end residential properties.
A record 84 properties, each worth 10 million dirhams ($2.7 million) or more, changed hands last month, according to data from real estate consultant Property Monitor. In total, Dubai’s priciest homes fetched 1.7 billion dirhams in March.
The luxury end of the market has come alive in a city that became a haven for wealthy Europeans escaping repeated lockdowns at home and for others drawn by the ease of getting vaccinated from Covid-19. The Middle East’s business and tourism hub provided an additional lure after a property downturn that started six years ago shaved more than a third off values.
“We’ve seen sentiment shift quite significantly and prices are increasing across the board now,” said Taimur Khan, head of research at Knight Frank in Dubai. “On the top end of the market, it’s mostly European money from investors seeking assets in dollar-linked economies.”
The United Arab Emirates, of which Dubai is a part, introduced new visas for tourists and approved a new remote work visa that enables employees from all over the world to live and operate from the UAE. Buying a property is also one of the fastest ways of getting a residency permit in Dubai.
“Dubai is being seen as a place that’s relatively safe and less restrictive than many others,” said Zhann Jochinke, chief operating officer at Property Monitor. “Government initiatives aiming to drive more investments and people into Dubai are also helping improve sentiment on the long term prospects for the market.”
Dubai’s second-most expensive property was also sold in March. One 100 Palm, a mansion on the artificial island of Palm Jumeirah fetched 111.25 million dirhams. The buyer is a Swiss family that resides in Monaco and intends to use the villa for short-term rentals, according to Luxhabitat Sotheby’s International Realty, which was one of the brokers involved in the deal.
On average, home prices climbed 7.5% since November, with gains of 10% to 15% in established and sought-after locations, according to Property Monitor.
“We had a fairly hefty correction and that’s now working its way out at the top end of the market,” Khan said. “But given the rate of change in prices in some of these markets we have to ask if this rate is really sustainable.”
The wealthiest home buyers fleeing virus lockdowns for Dubai are still finding bargains aplenty, turning March into the busiest month ever for the emirate’s top-end residential properties.
A record 84 properties, each worth 10 million dirhams ($2.7 million) or more, changed hands last month, according to data from real estate consultant Property Monitor. In total, Dubai’s priciest homes fetched 1.7 billion dirhams in March.
The luxury end of the market has come alive in a city that became a haven for wealthy Europeans escaping repeated lockdowns at home and for others drawn by the ease of getting vaccinated from Covid-19. The Middle East’s business and tourism hub provided an additional lure after a property downturn that started six years ago shaved more than a third off values.
“We’ve seen sentiment shift quite significantly and prices are increasing across the board now,” said Taimur Khan, head of research at Knight Frank in Dubai. “On the top end of the market, it’s mostly European money from investors seeking assets in dollar-linked economies.”
The United Arab Emirates, of which Dubai is a part, introduced new visas for tourists and approved a new remote work visa that enables employees from all over the world to live and operate from the UAE. Buying a property is also one of the fastest ways of getting a residency permit in Dubai.
“Dubai is being seen as a place that’s relatively safe and less restrictive than many others,” said Zhann Jochinke, chief operating officer at Property Monitor. “Government initiatives aiming to drive more investments and people into Dubai are also helping improve sentiment on the long term prospects for the market.”
Dubai’s second-most expensive property was also sold in March. One 100 Palm, a mansion on the artificial island of Palm Jumeirah fetched 111.25 million dirhams. The buyer is a Swiss family that resides in Monaco and intends to use the villa for short-term rentals, according to Luxhabitat Sotheby’s International Realty, which was one of the brokers involved in the deal.
On average, home prices climbed 7.5% since November, with gains of 10% to 15% in established and sought-after locations, according to Property Monitor.
- Residential properties priced at 10 million dirhams or more made up 2.5% of all homes sold in Dubai in March, compared with 1.5% the previous month.
- Residential prices climbed 1.3% in Dubai in March, the first annual increase since 2015. During the same month last year, they slumped an annual 9.8%.
- Transactions for properties in all price ranges in March were at a 10-year high.
“We had a fairly hefty correction and that’s now working its way out at the top end of the market,” Khan said. “But given the rate of change in prices in some of these markets we have to ask if this rate is really sustainable.”
Mukesh Ambani Doesn't Have Much Need for a 1% Stake in #Saudi Aramco - Bloomberg
Mukesh Ambani Doesn't Have Much Need for a 1% Stake in Saudi Aramco - Bloomberg
Could one of the energy industry’s longest-running on-again, off-again romances be catching fire again? Saudi Arabian Crown Prince Mohammed Bin Salman seems to think so.
“There are discussions happening right now about a 1% acquisition by one of the leading energy companies in the world” in state-owned Saudi Arabian Oil Co., he said in a local television interview Tuesday.
Prince Mohammed didn’t disclose which company might make the investment, but you don’t have to be a Jane Austen protagonist to work out the most likely partner. Reliance Industries Ltd., owner of the world’s biggest oil refinery, has been dancing the quadrille with Saudi Aramco for nearly two years. At current prices, 1% of Aramco would be worth about $19 billion — not far off the $15 billion price tag put on 20% of Reliance’s energy division, at the time the Saudi company first took an interest in buying a stake in 2019.
A tie-up with Reliance is exactly what Aramco has in mind, the Financial Times reported Wednesday, citing people familiar with the matter. The two companies would initially exchange shares, with cash payments from the Saudis over subsequent years making up the balance of the transaction, the paper reported.
Could one of the energy industry’s longest-running on-again, off-again romances be catching fire again? Saudi Arabian Crown Prince Mohammed Bin Salman seems to think so.
“There are discussions happening right now about a 1% acquisition by one of the leading energy companies in the world” in state-owned Saudi Arabian Oil Co., he said in a local television interview Tuesday.
Prince Mohammed didn’t disclose which company might make the investment, but you don’t have to be a Jane Austen protagonist to work out the most likely partner. Reliance Industries Ltd., owner of the world’s biggest oil refinery, has been dancing the quadrille with Saudi Aramco for nearly two years. At current prices, 1% of Aramco would be worth about $19 billion — not far off the $15 billion price tag put on 20% of Reliance’s energy division, at the time the Saudi company first took an interest in buying a stake in 2019.
A tie-up with Reliance is exactly what Aramco has in mind, the Financial Times reported Wednesday, citing people familiar with the matter. The two companies would initially exchange shares, with cash payments from the Saudis over subsequent years making up the balance of the transaction, the paper reported.
Amanat's CEO on 350M AED Sale of Taaleem Stake - Bloomberg
Amanat's CEO on 350M AED Sale of Taaleem Stake - Bloomberg
Mohamad Hamade, CEO of Amanat, the Dubai-based healthcare and education investment firm, discusses selling its stake in Taaleem Holdings, one of the United Arab Emirates' largest education providers. He speaks with Manus Cranny and Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
EXCLUSIVE Major Chinese investors in talks to take Aramco stake -sources | Reuters
EXCLUSIVE Major Chinese investors in talks to take Aramco stake -sources | Reuters
Major Chinese investors are in talks to buy a stake in Saudi Aramco (2222.SE), several sources told Reuters on Wednesday, as Saudi Arabia's state oil firm prepares to sell another slice of its business to international investors.
Saudi Arabia was in discussions to sell 1% of Aramco to a leading global energy company and could sell further shares including to international investors within the next year or two, Crown Prince Mohammed bin Salman said in televised remarks on Tuesday. read more
A stake of 1% would equate to around $19 billion based on Aramco's current market capitalisation.
Sovereign wealth fund China Investment Corporation (CIC) (CIC.UL) was among those that could invest, two sources told Reuters.
Major Chinese investors are in talks to buy a stake in Saudi Aramco (2222.SE), several sources told Reuters on Wednesday, as Saudi Arabia's state oil firm prepares to sell another slice of its business to international investors.
Saudi Arabia was in discussions to sell 1% of Aramco to a leading global energy company and could sell further shares including to international investors within the next year or two, Crown Prince Mohammed bin Salman said in televised remarks on Tuesday. read more
A stake of 1% would equate to around $19 billion based on Aramco's current market capitalisation.
Sovereign wealth fund China Investment Corporation (CIC) (CIC.UL) was among those that could invest, two sources told Reuters.
Chemicals Maker Sabic’s Profit Surges as Global Economy Reopens - Bloomberg
Chemicals Maker Sabic’s Profit Surges as Global Economy Reopens - Bloomberg
Chemicals maker Saudi Basic Industries Corp. returned to a first-quarter profit as the reopening of the global economy led to higher demand for its products.
Net income was 4.86 billion riyals ($1.3 billion) compared with a loss of 1.05 billion a year ago, and more than double the level of the previous three-month period.
“The first quarter saw rising oil prices and a tight supply and demand balance,” said Chief Executive Officer Yousef Al-Benyan. “These elements, combined with growing demand as the global economy continues to recover, resulted in higher prices and margins for most of our products.”
Revenue rose 24% to 37.5 billion riyals, the Riyadh-based company, controlled by Saudi Aramco, said Thursday. Margins are expected to remain at similar levels in the second quarter.
Chemicals maker Saudi Basic Industries Corp. returned to a first-quarter profit as the reopening of the global economy led to higher demand for its products.
Net income was 4.86 billion riyals ($1.3 billion) compared with a loss of 1.05 billion a year ago, and more than double the level of the previous three-month period.
“The first quarter saw rising oil prices and a tight supply and demand balance,” said Chief Executive Officer Yousef Al-Benyan. “These elements, combined with growing demand as the global economy continues to recover, resulted in higher prices and margins for most of our products.”
Revenue rose 24% to 37.5 billion riyals, the Riyadh-based company, controlled by Saudi Aramco, said Thursday. Margins are expected to remain at similar levels in the second quarter.
Oil prices rise, bullish demand outlook offsets India concerns | Reuters
Oil prices rise, bullish demand outlook offsets India concerns | Reuters
Oil prices extended gains on Thursday after rising 1% the previous session, as bullish forecasts of recovering demand outweighed concerns about the impact of rising COVID-19 cases in Brazil, India and Japan.
Brent rose 49 cents, or 0.7%, to $67.76 a barrel by 0843 GMT, and U.S. West Texas Intermediate crude was up 43 cents, or 0.7%, at $64.29 a barrel.
This is the third consecutive day that the both contracts are rising.
"The performance of the past few days demonstrates the unbroken faith of the market in healthy economic and demand recovery," Tamas Varga, analyst at PVM Oil associates said.
"It also implies that the perilous and devastating COVID nightmare engulfing in India, Japan and Turkey, amongst others, is not expected to have a long-lasting impact on economic expansion."
Oil prices extended gains on Thursday after rising 1% the previous session, as bullish forecasts of recovering demand outweighed concerns about the impact of rising COVID-19 cases in Brazil, India and Japan.
Brent rose 49 cents, or 0.7%, to $67.76 a barrel by 0843 GMT, and U.S. West Texas Intermediate crude was up 43 cents, or 0.7%, at $64.29 a barrel.
This is the third consecutive day that the both contracts are rising.
"The performance of the past few days demonstrates the unbroken faith of the market in healthy economic and demand recovery," Tamas Varga, analyst at PVM Oil associates said.
"It also implies that the perilous and devastating COVID nightmare engulfing in India, Japan and Turkey, amongst others, is not expected to have a long-lasting impact on economic expansion."
MIDEAST STOCKS #Saudi leads major Gulf markets lower; #Dubai gains | Reuters
MIDEAST STOCKS Saudi leads major Gulf markets lower; Dubai gains | Reuters
Most major stock markets in the Gulf fell on Thursday, with Saudi shares leading the declines, although the Dubai bourse bucked the trend on support from property stocks.
Saudi Arabia's benchmark index (.TASI) dropped 1%, dragged down by a 2.2% fall in Al Rajhi Bank (1120.SE) and a 3.1% slide in the Saudi National Bank (1180.SE), the kingdom's largest lender.
On Wednesday, the Saudi index registered sharp gains after the country's Crown Prince Mohammed bin Salman said the kingdom had no plans to introduce income tax and a decision last July to triple value-added tax to 15% was temporary. read more
The country had tripled VAT to offset the impact of lower oil revenue on state finances in a move that had shocked citizens and businesses expecting more support from the government during the COVID-19 pandemic.
In Dubai, the main share index (.DFMGI) rose 0.3%, supported by a 1.1% gain in blue-chip developer Emaar Properties (EMAR.DU).
However, logistic firm Aramex (ARMX.DU) retreated 2.3%, as the stock went ex-dividend.
The Abu Dhabi index (.ADI) eased 0.3%, with aquaculture firm International Holding (IHC.AD) losing over 2%, while First Abu Dhabi Bank (FAB.AD) was down 0.4%.
But, Dana Gas (DANA.AD) advanced 2.2%. In the previous session, the energy firm fell when it said that IPR Wastani Petroleum Ltd, a member of the IPR Energy Group, has requested arbitration after Dana Gas cancelled a sale of oil and gas assets in Egypt.
Back in Saudi Arabia, Sahara International Petrochemical (2310.SE) jumped 7.6% after it posted a quarterly net profit.
In Qatar, the benchmark (.QSI) fell 0.3%, as most of the stocks on the index were in red including telecoms firm Ooredoo (ORDS.QA), which retreated about 2% following a decline in first-quarter earnings.
Most major stock markets in the Gulf fell on Thursday, with Saudi shares leading the declines, although the Dubai bourse bucked the trend on support from property stocks.
Saudi Arabia's benchmark index (.TASI) dropped 1%, dragged down by a 2.2% fall in Al Rajhi Bank (1120.SE) and a 3.1% slide in the Saudi National Bank (1180.SE), the kingdom's largest lender.
On Wednesday, the Saudi index registered sharp gains after the country's Crown Prince Mohammed bin Salman said the kingdom had no plans to introduce income tax and a decision last July to triple value-added tax to 15% was temporary. read more
The country had tripled VAT to offset the impact of lower oil revenue on state finances in a move that had shocked citizens and businesses expecting more support from the government during the COVID-19 pandemic.
In Dubai, the main share index (.DFMGI) rose 0.3%, supported by a 1.1% gain in blue-chip developer Emaar Properties (EMAR.DU).
However, logistic firm Aramex (ARMX.DU) retreated 2.3%, as the stock went ex-dividend.
The Abu Dhabi index (.ADI) eased 0.3%, with aquaculture firm International Holding (IHC.AD) losing over 2%, while First Abu Dhabi Bank (FAB.AD) was down 0.4%.
But, Dana Gas (DANA.AD) advanced 2.2%. In the previous session, the energy firm fell when it said that IPR Wastani Petroleum Ltd, a member of the IPR Energy Group, has requested arbitration after Dana Gas cancelled a sale of oil and gas assets in Egypt.
Back in Saudi Arabia, Sahara International Petrochemical (2310.SE) jumped 7.6% after it posted a quarterly net profit.
In Qatar, the benchmark (.QSI) fell 0.3%, as most of the stocks on the index were in red including telecoms firm Ooredoo (ORDS.QA), which retreated about 2% following a decline in first-quarter earnings.
Wednesday, 28 April 2021
Oil gains more than 1% on fuel demand optimism | Reuters
Oil gains more than 1% on fuel demand optimism | Reuters
Crude prices rose more than 1% on Wednesday, after U.S. distillate inventories posted a large drawdown and refiners ramped up activity to the highest in over a year, boosting hopes for rising fuel demand in the world's top oil consumer.
OPEC+, comprising of the Organization of the Petroleum Exporting Countries and its allies, on Tuesday decided to stick to plans for a phased easing of oil production restrictions from May to July, an indication that the group is confident that global demand will recovery. read more
"The market is supported by the general belief that the COVID endgame is in sight," said Tamas Varga, analyst at PVM Oil associates.
Brent crude futures gained 85 cents, or 1.3%, to settle at $67.27 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 92 cents, or 1.5%, to settle at $63.86 a barrel.
U.S. crude inventories (USOILC=ECI) rose by 90,000 barrels last week, the Energy Information Administration said, much smaller than analysts' forecasts for a 659,000-barrel build.
Crude prices rose more than 1% on Wednesday, after U.S. distillate inventories posted a large drawdown and refiners ramped up activity to the highest in over a year, boosting hopes for rising fuel demand in the world's top oil consumer.
OPEC+, comprising of the Organization of the Petroleum Exporting Countries and its allies, on Tuesday decided to stick to plans for a phased easing of oil production restrictions from May to July, an indication that the group is confident that global demand will recovery. read more
"The market is supported by the general belief that the COVID endgame is in sight," said Tamas Varga, analyst at PVM Oil associates.
Brent crude futures gained 85 cents, or 1.3%, to settle at $67.27 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 92 cents, or 1.5%, to settle at $63.86 a barrel.
U.S. crude inventories (USOILC=ECI) rose by 90,000 barrels last week, the Energy Information Administration said, much smaller than analysts' forecasts for a 659,000-barrel build.
Accused Abraaj tycoon Arif Naqvi sells UK mansion for more than £12m | The National
Accused Abraaj tycoon Arif Naqvi sells UK mansion for more than £12m | The National
Abraaj founder Arif Naqvi sold his British country estate for £12.25 million ($17m) after being prevented from living there during his extradition battle with the United States.
Mr Naqvi was placed under effective house arrest at his London apartment two years ago after his detention at Heathrow Airport on suspicion of fraud and money laundering over the collapse of the Dubai-based private equity company.
Property ownership documents show his semi-rural retreat of Wootton Place, Oxfordshire, about 100 kilometres west of London, was sold to a prominent businessman in September last year for a £2.75m profit on the price Mr Naqvi paid in October 2006.
The home – complete with extensive grounds, cricket pitch and bordering a church in the village of Wootton – was owned, on paper, by British Virgin Islands-registered company Blondell Assets Ltd.
But the Naqvi family were well-known residents in the attractive hilltop village. The globe-trotting Mr Naqvi, who also had homes in Pakistan, St Kitts and France, was rarely seen at the house but threw open its gates several years ago for villagers and members of Pakistan’s cricket team who played a match on the private field.
Abraaj founder Arif Naqvi sold his British country estate for £12.25 million ($17m) after being prevented from living there during his extradition battle with the United States.
Mr Naqvi was placed under effective house arrest at his London apartment two years ago after his detention at Heathrow Airport on suspicion of fraud and money laundering over the collapse of the Dubai-based private equity company.
Property ownership documents show his semi-rural retreat of Wootton Place, Oxfordshire, about 100 kilometres west of London, was sold to a prominent businessman in September last year for a £2.75m profit on the price Mr Naqvi paid in October 2006.
The home – complete with extensive grounds, cricket pitch and bordering a church in the village of Wootton – was owned, on paper, by British Virgin Islands-registered company Blondell Assets Ltd.
But the Naqvi family were well-known residents in the attractive hilltop village. The globe-trotting Mr Naqvi, who also had homes in Pakistan, St Kitts and France, was rarely seen at the house but threw open its gates several years ago for villagers and members of Pakistan’s cricket team who played a match on the private field.
Oil Climbs With U.S. Demand Bump Driving Global Rebound Optimism - Bloomberg
Oil Climbs With U.S. Demand Bump Driving Global Rebound Optimism - Bloomberg
| PRICES |
|---|
Futures jumped as much as 2.2% in New York on Wednesday. A U.S. government report showed total petroleum stockpiles dropped last week, led by the biggest weekly decrease in distillate inventories since early March. A gauge of demand for overall petroleum products rose to the highest in more than two months. Meanwhile, Goldman Sachs Group Inc. is forecasting an unprecedented jump in global oil demand as vaccination rates rise. “Seasonally, this is the time we should be seeing big crude inventory builds,” said Matt Sallee, portfolio manager at Tortoise, a firm that manages roughly $8 billion in energy-related assets. “There’s a lot of green shoots in demand.” |
#Saudi Tadawul Group hires JP Morgan, Citi, NCB Capital for IPO -statement | Reuters
Saudi Tadawul Group hires JP Morgan, Citi, NCB Capital for IPO -statement | Reuters
Saudi Tadawul Group, the owner and operator of the country's stock market, said on Wednesday it appointed JP Morgan, (JPM.N) Citigroup (C.N) and the securities arm of Saudi National Bank (1180.SE) for its initial public offering.
Tadawul said the public share sale will allow it to expand and strengthen its position globally. The deal is part of efforts by Saudi Arabia to diversify its economy.
With a market capitalisation of $2.5 trillion, Tadawul is the Arab world’s largest stock exchange.
Saudi Arabia's stock exchange has converted itself into a holding company and will be renamed Saudi Tadawul Group ahead of the listing this year, Group Chief Executive Khalid al-Hussan said previously.
The group will have four subsidiaries - its bourse Saudi Exchange, securities clearing and depository businesses and technology services.
Saudi Tadawul Group, the owner and operator of the country's stock market, said on Wednesday it appointed JP Morgan, (JPM.N) Citigroup (C.N) and the securities arm of Saudi National Bank (1180.SE) for its initial public offering.
Tadawul said the public share sale will allow it to expand and strengthen its position globally. The deal is part of efforts by Saudi Arabia to diversify its economy.
With a market capitalisation of $2.5 trillion, Tadawul is the Arab world’s largest stock exchange.
Saudi Arabia's stock exchange has converted itself into a holding company and will be renamed Saudi Tadawul Group ahead of the listing this year, Group Chief Executive Khalid al-Hussan said previously.
The group will have four subsidiaries - its bourse Saudi Exchange, securities clearing and depository businesses and technology services.
MIDEAST STOCKS Banks buoy #Saudi index; other major Gulf bourses dip | Reuters
MIDEAST STOCKS Banks buoy Saudi index; other major Gulf bourses dip | Reuters
Saudi Arabia's stock market outperformed the region on Wednesday, boosted by gains in financial shares, while other major Gulf markets ended lower.
Saudi Arabia's Crown Prince Mohammed bin Salman said on Tuesday the kingdom had no plans to introduce income tax and a decision last July to triple value-added tax to 15% was temporary. read more
The country had tripled VAT to offset the impact of lower oil revenue on state finances in a move that had shocked citizens and businesses expecting more support from the government during the coronavirus pandemic.
Saudi Arabia's benchmark index (.TASI) advanced 2.6%, buoyed by a 4.3% jump in Al Rajhi Bank (1120.SE) and a 6.5% increase in petrochemical firm Saudi Basic Industries (2010.SE).
Elsewhere, oil behemoth Saudi Aramco (2222.SE) gained 1.1%. In the televised remarks, the crown prince said the kingdom was in discussions to sell 1% of Aramco to a leading global energy company. read more
Dubai's main share index (.DFMGI) lost 0.4%, weighed down by a 1.6% fall in Emaar Properties (EMAR.DU) and a 0.9% decrease in Dubai Islamic Bank (DIB) (DISB.DU).
DIB, the United Arab Emirates' biggest sharia-compliant lender, reported a net profit of 853 million dirhams ($232.25 million) in the first-quarter, down from 1.11 billion dirhams a year earlier.
However, Gulf Navigation (GNAV.DU) finished 1.3% higher, as the shipping firm completed a debt restructuring process of 200 million dirhams ($54.45 million) and expects a shift to profitability in 2021.
In Abu Dhabi, the index (.ADI) dropped 0.6%, hit by a 1.2% fall in the country's largest lender First Abu Dhabi Bank (FAB.AD).
The Qatari index (.QSI) eased 0.3%, with petrochemical maker Industries Qatar (IQCD.QA) losing 0.6%, ending four sessions of gains.
Among others, Ooredoo (ORDS.QA) was down 0.1%. The telecoms firm said on Wednesday it has extended the period of exclusivity for a memorandum of understanding with CK Hutchison Holdings Ltd (0001.HK) for a possible combination of their respective telecommunications businesses in Indonesia. read more
Outside the Gulf, Egypt's blue-chip index (.EGX30) retreated 1.1%, as most of the stocks on the index were in negative territory including Commercial International Bank (COMI.CA), which was down 4.1%.
Saudi Arabia's stock market outperformed the region on Wednesday, boosted by gains in financial shares, while other major Gulf markets ended lower.
Saudi Arabia's Crown Prince Mohammed bin Salman said on Tuesday the kingdom had no plans to introduce income tax and a decision last July to triple value-added tax to 15% was temporary. read more
The country had tripled VAT to offset the impact of lower oil revenue on state finances in a move that had shocked citizens and businesses expecting more support from the government during the coronavirus pandemic.
Saudi Arabia's benchmark index (.TASI) advanced 2.6%, buoyed by a 4.3% jump in Al Rajhi Bank (1120.SE) and a 6.5% increase in petrochemical firm Saudi Basic Industries (2010.SE).
Elsewhere, oil behemoth Saudi Aramco (2222.SE) gained 1.1%. In the televised remarks, the crown prince said the kingdom was in discussions to sell 1% of Aramco to a leading global energy company. read more
Dubai's main share index (.DFMGI) lost 0.4%, weighed down by a 1.6% fall in Emaar Properties (EMAR.DU) and a 0.9% decrease in Dubai Islamic Bank (DIB) (DISB.DU).
DIB, the United Arab Emirates' biggest sharia-compliant lender, reported a net profit of 853 million dirhams ($232.25 million) in the first-quarter, down from 1.11 billion dirhams a year earlier.
However, Gulf Navigation (GNAV.DU) finished 1.3% higher, as the shipping firm completed a debt restructuring process of 200 million dirhams ($54.45 million) and expects a shift to profitability in 2021.
In Abu Dhabi, the index (.ADI) dropped 0.6%, hit by a 1.2% fall in the country's largest lender First Abu Dhabi Bank (FAB.AD).
The Qatari index (.QSI) eased 0.3%, with petrochemical maker Industries Qatar (IQCD.QA) losing 0.6%, ending four sessions of gains.
Among others, Ooredoo (ORDS.QA) was down 0.1%. The telecoms firm said on Wednesday it has extended the period of exclusivity for a memorandum of understanding with CK Hutchison Holdings Ltd (0001.HK) for a possible combination of their respective telecommunications businesses in Indonesia. read more
Outside the Gulf, Egypt's blue-chip index (.EGX30) retreated 1.1%, as most of the stocks on the index were in negative territory including Commercial International Bank (COMI.CA), which was down 4.1%.
#Saudi Aramco and India’s Reliance discuss cash and share stake deal | Financial Times
Saudi Aramco and India’s Reliance discuss cash and share stake deal | Financial Times
Saudi Arabia has held talks with Mukesh Ambani’s Reliance Industries about a cash and share deal for a stake in the Indian company’s refining and petrochemicals arm, as the world’s largest crude oil exporter seeks to deepen ties with the fastest-growing energy consumer.
Saudi Arabia has held talks with Mukesh Ambani’s Reliance Industries about a cash and share deal for a stake in the Indian company’s refining and petrochemicals arm, as the world’s largest crude oil exporter seeks to deepen ties with the fastest-growing energy consumer.
Three people familiar with the matter said talks were revived in recent weeks to finalise state energy giant Saudi Aramco’s acquisition of a 20 per cent stake in the conglomerate’s assets, first announced by Ambani in 2019 when it was tipped to be a $15bn deal.
The investment had been delayed because of the pandemic and its fallout on the finances of Saudi Aramco, which generates the bulk of the kingdom’s revenues and is already under pressure to hand out tens of billions of dollars in dividends to the state.
The kingdom was weighing paying for the Reliance deal with Saudi Aramco shares initially and then staggered cash payments over several years, the people said. The proportion of shares versus cash was still up for debate and terms had yet to be finalised, they added.
Mideast Petrostates Ramp Up Oil-Asset Sales to Raise Billions - Bloomberg
Mideast Petrostates Ramp Up Oil-Asset Sales to Raise Billions - Bloomberg
Time was when the Middle East’s petrostates recoiled from using their crown jewels to raise money from foreign investors.
Not any more. In the space of a few weeks, Saudi Arabia, the United Arab Emirates, Qatar, Oman and Kuwait have all accelerated multi-billion-dollar plans to sell energy assets or issue bonds off the back of them. Capping that trend, Saudi Crown Prince Mohammed bin Salman said Tuesday the kingdom is in talks with an unidentified “global energy company” to sell a stake worth about $20 billion in state oil firm Aramco.
The shift underscores how countries in a region that’s home to almost half the world’s oil reserves are taking advantage of the recovery in energy prices following last year’s coronavirus-triggered crash to bolster their ailing finances. The global transition to greener energy is only adding to the urgency, with governments requiring fresh funds to invest in new sectors and diversify their economies. And investors, hobbled by record low interest rates, are grabbing the opportunity.
“It makes sense for these countries to sell stakes when valuations are good,” said Justin Alexander, chief economist at MENA Advisors, a U.K.-based consultancy. “Some of it’s fiscal. Some of it’s a growing recognition of the speed of the energy transition and the need to realize value from these assets.”
Not any more. In the space of a few weeks, Saudi Arabia, the United Arab Emirates, Qatar, Oman and Kuwait have all accelerated multi-billion-dollar plans to sell energy assets or issue bonds off the back of them. Capping that trend, Saudi Crown Prince Mohammed bin Salman said Tuesday the kingdom is in talks with an unidentified “global energy company” to sell a stake worth about $20 billion in state oil firm Aramco.
The shift underscores how countries in a region that’s home to almost half the world’s oil reserves are taking advantage of the recovery in energy prices following last year’s coronavirus-triggered crash to bolster their ailing finances. The global transition to greener energy is only adding to the urgency, with governments requiring fresh funds to invest in new sectors and diversify their economies. And investors, hobbled by record low interest rates, are grabbing the opportunity.
“It makes sense for these countries to sell stakes when valuations are good,” said Justin Alexander, chief economist at MENA Advisors, a U.K.-based consultancy. “Some of it’s fiscal. Some of it’s a growing recognition of the speed of the energy transition and the need to realize value from these assets.”
At Dh853m for Q1-2021, #Dubai Islamic Bank's net profit is definitely in recovery mode | Banking – Gulf News
At Dh853m for Q1-2021, Dubai Islamic Bank's net profit is definitely in recovery mode | Banking – Gulf News
Dubai Islamic Bank will take a lot of strength from its first quarter 2021 numbers, with net profit up a whopping 2,337 per cent compared to what it was in the final three months of 2020. That’s Dh853 million between January to end March against Dh35 million in the fourth quarter of last year.
Just as important, impairment related losses were brought down to Dh751 million, from Dh1.9 billion, which is a 60 per cent decline. Net profit margin was more or less unchanged at 2.5 per cent.
DIB’s financials continue a trend where leading local banks have shown a strong recovery from the worst of the COVID-19 created disruptions in the second-half of last year. “The UAE banking sector continues to remain robust with healthy and well capitalized balance-sheets,” said Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank.
“The further extension of the UAE Central Bank’s TESS programme will benefit and support the sector and DIB remains aligned to providing support to the domestic economy throughout this recovery period.” (TESS stands for Targetted Economic Support Scheme, which the Central Bank came up with to help businesses and individuals cope with the COVID-19 created hit.)
Dubai Islamic Bank will take a lot of strength from its first quarter 2021 numbers, with net profit up a whopping 2,337 per cent compared to what it was in the final three months of 2020. That’s Dh853 million between January to end March against Dh35 million in the fourth quarter of last year.
Just as important, impairment related losses were brought down to Dh751 million, from Dh1.9 billion, which is a 60 per cent decline. Net profit margin was more or less unchanged at 2.5 per cent.
DIB’s financials continue a trend where leading local banks have shown a strong recovery from the worst of the COVID-19 created disruptions in the second-half of last year. “The UAE banking sector continues to remain robust with healthy and well capitalized balance-sheets,” said Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank.
“The further extension of the UAE Central Bank’s TESS programme will benefit and support the sector and DIB remains aligned to providing support to the domestic economy throughout this recovery period.” (TESS stands for Targetted Economic Support Scheme, which the Central Bank came up with to help businesses and individuals cope with the COVID-19 created hit.)
Scoring #SaudiArabia Vision 2030 Five Years After Launch: Chart - Bloomberg
Scoring Saudi Arabia Vision 2030 Five Years After Launch: Chart - Bloomberg
Five years ago, Saudi Arabia launched Vision 2030, an aspirational program with economic diversification at its heart. Crown Prince Mohammed bin Salman may be bullish on the Vision’s performance, but reality suggests the program has fallen short of its targets, Bloomberg Economics’ scorecard shows. Relative to its 2020 goals, the economy has regressed on most metrics -- including the unemployment rate and foreign direct investment.
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| Source: National Transformation Program, Bloomberg Economics |
#Saudi crown prince says he will further centralise policy making | Reuters
Saudi crown prince says he will further centralise policy making | Reuters
Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman, said in a televised interview that he will further centralise policymaking, to ensure the success of his drive to diversify the economy.
In the interview, aired on Saudi TV late on Tuesday, he said the kingdom had set up a Budget Bureau to take over setting the state budget from the finance ministry, and would by the end of this year launch a new Policies Office.
The moves continue a shift of policy decisions away from traditional bodies such as the finance ministry and central bank, which began with the formation of a Council of Economic and Development Affairs, headed by the prince, after his father King Salman took the throne in 2015.
“Policies today are being translated by committees but in the future the dedicated office ... will issue orders to ministries to implement the prepared strategy with clear roles and objectives,” he said.
Prince Mohammed, who became crown prince in 2017 in a palace coup that ousted his predecessor, has consolidated his hold over the main levers of power in the world’s largest oil exporter.
He is also the minister of defence, head of the supreme council for state run oil company Saudi Aramco and chairman of sovereign wealth fund the Public Investment Fund, the main engine tasked with delivering on his diversification drive.
His remarks marked the fifth anniversary of Vision 2030, a programme intended to modernise the kingdom, wean the economy off oil revenues and lure foreign investment to establish new sectors and spur job creation.
Prince Mohammed said that before King Salman assumed power the “situation of the state was weak” with ministries scattered and no public policy.
“Nothing will be achieved without a strong state position that draws policies and sets strategies and aligns them with the different entities,” he said.
Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman, said in a televised interview that he will further centralise policymaking, to ensure the success of his drive to diversify the economy.
In the interview, aired on Saudi TV late on Tuesday, he said the kingdom had set up a Budget Bureau to take over setting the state budget from the finance ministry, and would by the end of this year launch a new Policies Office.
The moves continue a shift of policy decisions away from traditional bodies such as the finance ministry and central bank, which began with the formation of a Council of Economic and Development Affairs, headed by the prince, after his father King Salman took the throne in 2015.
“Policies today are being translated by committees but in the future the dedicated office ... will issue orders to ministries to implement the prepared strategy with clear roles and objectives,” he said.
Prince Mohammed, who became crown prince in 2017 in a palace coup that ousted his predecessor, has consolidated his hold over the main levers of power in the world’s largest oil exporter.
He is also the minister of defence, head of the supreme council for state run oil company Saudi Aramco and chairman of sovereign wealth fund the Public Investment Fund, the main engine tasked with delivering on his diversification drive.
His remarks marked the fifth anniversary of Vision 2030, a programme intended to modernise the kingdom, wean the economy off oil revenues and lure foreign investment to establish new sectors and spur job creation.
Prince Mohammed said that before King Salman assumed power the “situation of the state was weak” with ministries scattered and no public policy.
“Nothing will be achieved without a strong state position that draws policies and sets strategies and aligns them with the different entities,” he said.
Extreme prudence required as headwinds remain: #Dubai Islamic Bank CEO | ZAWYA MENA Edition
Extreme prudence required as headwinds remain: Dubai Islamic Bank CEO | ZAWYA MENA Edition
Dubai Islamic Bank (DIB), the largest Islamic lender in the UAE, will continue to run its business with extreme prudence this year, as the “headwinds” of the pandemic remain, its top official said.
The bank, which has recently completed the integration with Noor Bank, reported on Wednesday a net profit of 853 million dirhams ($232 million) for the first quarter of the year, lower than in the same period in 2020 but a rebound from the previous quarter.
“As significant headwinds remain in the current environment, we continue to approach the year with extreme prudence, with focus on low-risk sectors and those showing consistent signs of recovery as the market improves,” said Adnan Chilwan, chief executive officer of DIB.
Chilwan maintained that liquidity remains strong and that business momentum is still positive. However, he said efficiency build up is critical to attaining stability and profitability in light of the challenging conditions. “A focused and disciplined approach to managing OPEX has led to a cost income ratio of 27.5 percent, the lowest in the market,” he said.
“Liquidity remains a strong suit with robust growth in customer deposits of seven percent year on year and four percent year to date, to reach 214 billion dirhams,” he added.
Also, with a liquidity coverage ratio (LCR) of 127 percent, which is well above the minimum regulatory requirements, Chilwan said the lender is “ideally positioned to capture growth opportunities” as conditions improve.
The International Monetary Fund (IMF) has recently forecast that the UAE’s economy will grow 3.1 percent this year, up from the previous estimate of 1.2 percent.
“IMF has revised positively the economic outlook on the UAE, on account of the country’s robust and quick response to the challenges faced in times of the pandemic. Being a global leader in the vaccination race, the economic recovery is expected to accelerate consumer spending and business activities in the coming periods,” said Mohammed Ibrahim Al Shaibani, chairman of DIB.
“The UAE banking sector continues to remain robust with healthy and well capitalised balance sheets. The further extension of the UAE [central bank’s} TESS programme will benefit and support the sector,” he added.
Dubai Islamic Bank (DIB), the largest Islamic lender in the UAE, will continue to run its business with extreme prudence this year, as the “headwinds” of the pandemic remain, its top official said.
The bank, which has recently completed the integration with Noor Bank, reported on Wednesday a net profit of 853 million dirhams ($232 million) for the first quarter of the year, lower than in the same period in 2020 but a rebound from the previous quarter.
“As significant headwinds remain in the current environment, we continue to approach the year with extreme prudence, with focus on low-risk sectors and those showing consistent signs of recovery as the market improves,” said Adnan Chilwan, chief executive officer of DIB.
Chilwan maintained that liquidity remains strong and that business momentum is still positive. However, he said efficiency build up is critical to attaining stability and profitability in light of the challenging conditions. “A focused and disciplined approach to managing OPEX has led to a cost income ratio of 27.5 percent, the lowest in the market,” he said.
“Liquidity remains a strong suit with robust growth in customer deposits of seven percent year on year and four percent year to date, to reach 214 billion dirhams,” he added.
Also, with a liquidity coverage ratio (LCR) of 127 percent, which is well above the minimum regulatory requirements, Chilwan said the lender is “ideally positioned to capture growth opportunities” as conditions improve.
The International Monetary Fund (IMF) has recently forecast that the UAE’s economy will grow 3.1 percent this year, up from the previous estimate of 1.2 percent.
“IMF has revised positively the economic outlook on the UAE, on account of the country’s robust and quick response to the challenges faced in times of the pandemic. Being a global leader in the vaccination race, the economic recovery is expected to accelerate consumer spending and business activities in the coming periods,” said Mohammed Ibrahim Al Shaibani, chairman of DIB.
“The UAE banking sector continues to remain robust with healthy and well capitalised balance sheets. The further extension of the UAE [central bank’s} TESS programme will benefit and support the sector,” he added.
MIDEAST STOCKS #Saudi shares gain as major Gulf markets ease | Reuters
MIDEAST STOCKS Saudi shares gain as major Gulf markets ease | Reuters
Saudi Arabia's stock market traded higher on Wednesday, on track to extend gains for a fifth session, while other major Gulf markets were subdued in early trade.
The kingdom's benchmark index (.TASI) gained 0.7%, buoyed by a 0.9% gain in Al Rajhi Bank (1120.SE) and a 1.5% rise in petrochemical maker Saudi Basic Industries. (2010.SE)
Among others, Rabigh Refining and Petrochemical Company (2380.SE) surged 10%, after the firm posted quarterly net profit.
Saudi Arabia's Crown Prince Mohammed bin Salman said in televised remarks on Tuesday that the kingdom had no plans to introduce income tax and a decision last July to triple value-added tax to 15% was temporary. read more
The country had tripled VAT to offset the impact of lower oil revenue on state finances in a move that had shocked citizens and businesses expecting more support from the government during the coronavirus pandemic.
Oil behemoth Saudi Aramco (2222.SE) increased 0.4%. In the televised remarks, the crown prince said the kingdom was in discussions to sell 1% of Aramco to a leading global energy company. read more
In Dubai, the main share index (.DFMGI) fell 0.6%, with its largest lender Emirates NBD (ENBD.DU) losing 1.2%, while sharia-compliant lender Dubai Islamic Bank (DISB.DU) was down 0.7%.
The Abu Dhabi index (.ADI) lost 0.4%, hit by a 0.5% decrease in First Abu Dhabi Bank (FAB.AD), the country's largest lender.
In Qatar, the benchmark (.QSI) eased 0.2%, with market heavyweight Industries Qatar (IQCD.QA) retreating 1%.
Saudi Arabia's stock market traded higher on Wednesday, on track to extend gains for a fifth session, while other major Gulf markets were subdued in early trade.
The kingdom's benchmark index (.TASI) gained 0.7%, buoyed by a 0.9% gain in Al Rajhi Bank (1120.SE) and a 1.5% rise in petrochemical maker Saudi Basic Industries. (2010.SE)
Among others, Rabigh Refining and Petrochemical Company (2380.SE) surged 10%, after the firm posted quarterly net profit.
Saudi Arabia's Crown Prince Mohammed bin Salman said in televised remarks on Tuesday that the kingdom had no plans to introduce income tax and a decision last July to triple value-added tax to 15% was temporary. read more
The country had tripled VAT to offset the impact of lower oil revenue on state finances in a move that had shocked citizens and businesses expecting more support from the government during the coronavirus pandemic.
Oil behemoth Saudi Aramco (2222.SE) increased 0.4%. In the televised remarks, the crown prince said the kingdom was in discussions to sell 1% of Aramco to a leading global energy company. read more
In Dubai, the main share index (.DFMGI) fell 0.6%, with its largest lender Emirates NBD (ENBD.DU) losing 1.2%, while sharia-compliant lender Dubai Islamic Bank (DISB.DU) was down 0.7%.
The Abu Dhabi index (.ADI) lost 0.4%, hit by a 0.5% decrease in First Abu Dhabi Bank (FAB.AD), the country's largest lender.
In Qatar, the benchmark (.QSI) eased 0.2%, with market heavyweight Industries Qatar (IQCD.QA) retreating 1%.
Saudis in Talks to Sell Aramco Stake to Global Energy Firm - Bloomberg
Saudis in Talks to Sell Aramco Stake to Global Energy Firm - Bloomberg
Saudi Arabia’s crown prince said the kingdom is in talks to sell a 1% stake in state oil giant Saudi Aramco to a “leading global energy company” as he forecast an economic rebound after the coronavirus pandemic.
The kingdom is looking at the potential sale -- which could be worth about $19 billion, based on the company’s market value -- as a way to lock in customer demand for the country’s crude, Crown Prince Mohammed Bin Salman said in a rare interview on a Saudi television channel late Tuesday. While providing few details on which company is involved in the talks, he said the sale could take place in the next two years.
“I don’t want to give any promises about deals finalizing, but there are discussions happening right now about a 1% acquisition by one of the leading energy companies in the world,” Prince Mohammed, the country’s de facto ruler, said. “I cannot mention the name but it’s a huge company. This deal could be very important in strengthening Aramco’s sales in the country where this company resides.”
China is the largest buyer of Saudi Arabian oil. Almost 30% of the kingdom’s crude exports went to the Asian country last month, according to data compiled by Bloomberg. Japan, South Korea and India were the next biggest importers.
As well as China, Aramco is keen to make further inroads into India, the fastest growing market for oil consumption before the pandemic hit. But the company faces strong competition from other suppliers and Indian refiners are among the most price-sensitive in the world.
Saudi Arabia’s crown prince said the kingdom is in talks to sell a 1% stake in state oil giant Saudi Aramco to a “leading global energy company” as he forecast an economic rebound after the coronavirus pandemic.
The kingdom is looking at the potential sale -- which could be worth about $19 billion, based on the company’s market value -- as a way to lock in customer demand for the country’s crude, Crown Prince Mohammed Bin Salman said in a rare interview on a Saudi television channel late Tuesday. While providing few details on which company is involved in the talks, he said the sale could take place in the next two years.
“I don’t want to give any promises about deals finalizing, but there are discussions happening right now about a 1% acquisition by one of the leading energy companies in the world,” Prince Mohammed, the country’s de facto ruler, said. “I cannot mention the name but it’s a huge company. This deal could be very important in strengthening Aramco’s sales in the country where this company resides.”
China is the largest buyer of Saudi Arabian oil. Almost 30% of the kingdom’s crude exports went to the Asian country last month, according to data compiled by Bloomberg. Japan, South Korea and India were the next biggest importers.
As well as China, Aramco is keen to make further inroads into India, the fastest growing market for oil consumption before the pandemic hit. But the company faces strong competition from other suppliers and Indian refiners are among the most price-sensitive in the world.
Oil rises on optimistic demand outlook; uncertainties remain | Reuters
Oil rises on optimistic demand outlook; uncertainties remain | Reuters
Oil prices rose on Wednesday amid optimistic forecasts of global fuel demand recovery, while the rapid spread of COVID-19 infections in India and a bigger-than-expected build in U.S. crude stocks capped gains.
Brent crude futures rose 28 cents, or 0.42%, to $66.70 a barrel at 0646 GMT, following a 1.2% gain from Tuesday.
U.S. West Texas Intermediate (WTI) crude futures rose 29 cents, or 0.46%, to $62.23 a barrel, after gaining 1.7% on Tuesday.
An OPEC+ decision to stick to plans for a phased easing of oil production restrictions from May to July underscored the producers' confidence in a recovery in global demand.
Oil prices rose on Wednesday amid optimistic forecasts of global fuel demand recovery, while the rapid spread of COVID-19 infections in India and a bigger-than-expected build in U.S. crude stocks capped gains.
Brent crude futures rose 28 cents, or 0.42%, to $66.70 a barrel at 0646 GMT, following a 1.2% gain from Tuesday.
U.S. West Texas Intermediate (WTI) crude futures rose 29 cents, or 0.46%, to $62.23 a barrel, after gaining 1.7% on Tuesday.
An OPEC+ decision to stick to plans for a phased easing of oil production restrictions from May to July underscored the producers' confidence in a recovery in global demand.
Tuesday, 27 April 2021
Oil rises despite OPEC+ sticking to raising output amid India COVID surge | Reuters
Oil rises despite OPEC+ sticking to raising output amid India COVID surge | Reuters
Oil prices edged higher on Tuesday as OPEC, Russia and their allies will stick to plans to raise output slightly from May 1, suggesting it does not see a lasting impact on demand from India’s coronavirus crisis.
OPEC+, as the producer group is known, has also ditched plans to hold a full ministerial meeting on Wednesday, sources said. A technical meeting on Monday had voiced concern about surging COVID-19 cases but kept its oil demand forecast unchanged.
The panel decided to stick to policies broadly agreed at a previous April 1 meeting of OPEC+, Russian Deputy Prime Minister Alexander Novak said after the talks.
Brent crude ended the session up 77 cents, or 1.2%, at $66.42 a barrel after climbing to a session high of $66.51. U.S. oil gained $1.03, or 1.7%, to settle at $62.94.
“Traders do not want to miss out on a potential bullish OPEC+ meeting so a limited optimism is reflected in prices,” said Bjornar Tonhaugen of Rystad Energy.
Oil prices edged higher on Tuesday as OPEC, Russia and their allies will stick to plans to raise output slightly from May 1, suggesting it does not see a lasting impact on demand from India’s coronavirus crisis.
OPEC+, as the producer group is known, has also ditched plans to hold a full ministerial meeting on Wednesday, sources said. A technical meeting on Monday had voiced concern about surging COVID-19 cases but kept its oil demand forecast unchanged.
The panel decided to stick to policies broadly agreed at a previous April 1 meeting of OPEC+, Russian Deputy Prime Minister Alexander Novak said after the talks.
Brent crude ended the session up 77 cents, or 1.2%, at $66.42 a barrel after climbing to a session high of $66.51. U.S. oil gained $1.03, or 1.7%, to settle at $62.94.
“Traders do not want to miss out on a potential bullish OPEC+ meeting so a limited optimism is reflected in prices,” said Bjornar Tonhaugen of Rystad Energy.
Oil rises as OPEC+ seen sticking to policy despite India COVID surge | Reuters
Oil rises as OPEC+ seen sticking to policy despite India COVID surge | Reuters
Oil prices rose on Tuesday as OPEC+ sources said the producer group would stick to existing plans to boost oil output slightly from May 1, suggesting they do not see a lasting impact on demand from India’s coronavirus crisis.
The group has also ditched plans to hold a full ministerial meeting on Wednesday, the sources said. A technical meeting on Monday had voiced concern about surging COVID-19 cases but kept its oil demand forecast unchanged.
Brent crude was up 48 cents, or 0.7%, at $66.13 a barrel by 10:59 a.m. ET (1459 GMT), after climbing to a session high of $66.45. U.S. oil gained 63 cents, or 1%, to $62.54.
“Traders do not want to miss out on a potential bullish OPEC+ meeting so a limited optimism is reflected in prices,” said Bjornar Tonhaugen of Rystad Energy.
Oil prices rose on Tuesday as OPEC+ sources said the producer group would stick to existing plans to boost oil output slightly from May 1, suggesting they do not see a lasting impact on demand from India’s coronavirus crisis.
The group has also ditched plans to hold a full ministerial meeting on Wednesday, the sources said. A technical meeting on Monday had voiced concern about surging COVID-19 cases but kept its oil demand forecast unchanged.
Brent crude was up 48 cents, or 0.7%, at $66.13 a barrel by 10:59 a.m. ET (1459 GMT), after climbing to a session high of $66.45. U.S. oil gained 63 cents, or 1%, to $62.54.
“Traders do not want to miss out on a potential bullish OPEC+ meeting so a limited optimism is reflected in prices,” said Bjornar Tonhaugen of Rystad Energy.
OPEC+ Prepares for Meeting Amid Troubling India Covid Virus Surge - Bloomberg
OPEC+ Prepares for Meeting Amid Troubling India Covid Virus Surge - Bloomberg
OPEC and its allies will proceed with plans to gently revive oil production as global demand recovers from the pandemic, despite surging infections in India.
A committee led by Saudi Arabia and Russia agreed the coalition should press on with its roadmap for increasing supply by 2 million barrels a day over the next three months, a decision that was later rubber-stamped in a statement from the whole group.
World oil consumption will rebound by a vigorous 6 million barrels a day this year, according to OPEC+ estimates, though the recovery remains at risk from virus outbreaks in India and Brazil. As a result, the glut of oil inventories that amassed when demand collapsed last year will be almost gone by the end of this quarter.
“We can take comfort in knowing that our leadership has helped turn the tide,” Mohammad Barkindo, secretary-general of the Organization of Petroleum Exporting Countries, said on Twitter. “But at the same time, the persistence of Covid-19 reminds us that this is no time to stray from the cautious and steadfast approach we have taken over the past year.”
OPEC and its allies will proceed with plans to gently revive oil production as global demand recovers from the pandemic, despite surging infections in India.
A committee led by Saudi Arabia and Russia agreed the coalition should press on with its roadmap for increasing supply by 2 million barrels a day over the next three months, a decision that was later rubber-stamped in a statement from the whole group.
World oil consumption will rebound by a vigorous 6 million barrels a day this year, according to OPEC+ estimates, though the recovery remains at risk from virus outbreaks in India and Brazil. As a result, the glut of oil inventories that amassed when demand collapsed last year will be almost gone by the end of this quarter.
“We can take comfort in knowing that our leadership has helped turn the tide,” Mohammad Barkindo, secretary-general of the Organization of Petroleum Exporting Countries, said on Twitter. “But at the same time, the persistence of Covid-19 reminds us that this is no time to stray from the cautious and steadfast approach we have taken over the past year.”
MIDEAST STOCKS Major Gulf markets end mixed as petchems boost #Qatar | Reuters
MIDEAST STOCKS Major Gulf markets end mixed as petchems boost Qatar | Reuters
Major stock markets in the Gulf closed mixed on Tuesday, with petrochemical shares boosting the Qatari index.
In Qatar, the benchmark (.QSI) rose 0.6%, led by a 2.9% increase in Industries Qatar (IQCD.QA), extending gains from the previous session when the petrochemical maker reported a higher net profit for the quarter ended March 31.
Mesaieed Petrochemical (MPHC.QA) jumped 4.2%, ahead of its first-quarter earnings announcement.
Saudi Arabia's benchmark index (.TASI) finished 0.4% higher, with Dr Sulaiman Al-Habib Medical Services (4013.SE) advancing 3.6% and Saudi National Bank (SNB) (1180.SE) rising 1.3%.
SNB, the kingdom's largest lender, posted a 20.3% rise in first-quarter net profit on Monday with lower impairments and higher fees, in a sign that the economy has been recovering from last year's pandemic lockdowns. read more
Saudi Arabia said on Tuesday it had intercepted an explosive-laden boat off the Red Sea port of Yanbu after maritime security firms cited "unconfirmed reports" of an attack on a vessel in the area. read more
In Dubai, the main share index (.DFMGI) fell 0.6%, hit by a 1.3% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 1.1% decrease in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
Among others, Islamic Arab Insurance (SALAMA.DU) dived some 10%, its biggest intraday fall since March last year, as the insurer went ex-dividend.
The Abu Dhabi index (.ADI) lost 0.4%, with telecoms giant Etisalat (ETISALAT.AD) sliding 1.3%, while Abu Dhabi Commercial Bank (ADCB) (ADCB.AD) retreated 1%.
ADCB, the United Arab Emirates' third-biggest lender, gained over 2% on Monday a day after it reported soaring profit as it recovers from impairments linked to troubled hospital operator NMC Health. read more
However, the index saw some support from Emirates Driving Company (DRIVE.AD), which soared 9.4% after the firm announced establishment of a new branch with an investment of about 22 million dirhams ($5.99 million).
Outside the Gulf, Egypt's blue-chip index (.EGX30) rebounded 0.4%, with top lender Commercial International Bank (COMI.CA) rising 1.5%.
Major stock markets in the Gulf closed mixed on Tuesday, with petrochemical shares boosting the Qatari index.
In Qatar, the benchmark (.QSI) rose 0.6%, led by a 2.9% increase in Industries Qatar (IQCD.QA), extending gains from the previous session when the petrochemical maker reported a higher net profit for the quarter ended March 31.
Mesaieed Petrochemical (MPHC.QA) jumped 4.2%, ahead of its first-quarter earnings announcement.
Saudi Arabia's benchmark index (.TASI) finished 0.4% higher, with Dr Sulaiman Al-Habib Medical Services (4013.SE) advancing 3.6% and Saudi National Bank (SNB) (1180.SE) rising 1.3%.
SNB, the kingdom's largest lender, posted a 20.3% rise in first-quarter net profit on Monday with lower impairments and higher fees, in a sign that the economy has been recovering from last year's pandemic lockdowns. read more
Saudi Arabia said on Tuesday it had intercepted an explosive-laden boat off the Red Sea port of Yanbu after maritime security firms cited "unconfirmed reports" of an attack on a vessel in the area. read more
In Dubai, the main share index (.DFMGI) fell 0.6%, hit by a 1.3% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 1.1% decrease in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
Among others, Islamic Arab Insurance (SALAMA.DU) dived some 10%, its biggest intraday fall since March last year, as the insurer went ex-dividend.
The Abu Dhabi index (.ADI) lost 0.4%, with telecoms giant Etisalat (ETISALAT.AD) sliding 1.3%, while Abu Dhabi Commercial Bank (ADCB) (ADCB.AD) retreated 1%.
ADCB, the United Arab Emirates' third-biggest lender, gained over 2% on Monday a day after it reported soaring profit as it recovers from impairments linked to troubled hospital operator NMC Health. read more
However, the index saw some support from Emirates Driving Company (DRIVE.AD), which soared 9.4% after the firm announced establishment of a new branch with an investment of about 22 million dirhams ($5.99 million).
Outside the Gulf, Egypt's blue-chip index (.EGX30) rebounded 0.4%, with top lender Commercial International Bank (COMI.CA) rising 1.5%.
OPEC+ Prepares for Meeting Amid Troubling India Covid Virus Surge - Bloomberg
OPEC+ Prepares for Meeting Amid Troubling India Covid Virus Surge - Bloomberg
OPEC and its allies are reviewing their plans to revive oil production, as a robust recovery in global demand was clouded by surging coronavirus infections in India.
A panel of ministers that monitors the oil market met online on Tuesday, after bringing forward their discussions by one day. They will determine whether the full OPEC+ meeting scheduled for Wednesday -- which has the power to change output policy -- needs to go ahead, delegates said.
Technical experts from the cartel issued a report on Monday projecting a strong recovery in global oil demand this year, delegates said, asking not to be named because the information is private. However, their outlook was clouded by a raging virus outbreak in India, which could crimp fuel demand this month by as much as 350,000 barrels a day, according to OilX.
“China numbers look good, demand in the U.S. looks like it’s going to be really good this summer,” said Helima Croft, chief commodities strategist at RBC Capital Markets LLC. “The dark cloud is India.”
OPEC and its allies are reviewing their plans to revive oil production, as a robust recovery in global demand was clouded by surging coronavirus infections in India.
A panel of ministers that monitors the oil market met online on Tuesday, after bringing forward their discussions by one day. They will determine whether the full OPEC+ meeting scheduled for Wednesday -- which has the power to change output policy -- needs to go ahead, delegates said.
Technical experts from the cartel issued a report on Monday projecting a strong recovery in global oil demand this year, delegates said, asking not to be named because the information is private. However, their outlook was clouded by a raging virus outbreak in India, which could crimp fuel demand this month by as much as 350,000 barrels a day, according to OilX.
“China numbers look good, demand in the U.S. looks like it’s going to be really good this summer,” said Helima Croft, chief commodities strategist at RBC Capital Markets LLC. “The dark cloud is India.”
#UAE investors turn jittery, engage in some profit booking despite upbeat Q1-2021 results | Markets – Gulf News
UAE investors turn jittery, engage in some profit booking despite upbeat Q1-2021 results | Markets – Gulf News
Dubai and Abu Dhabi stocks took a breather from three days of advances on Tuesday morning, with investors keen on profit-booking amid uncertain market conditions. Qatar Exchange gained on the back of strong first-quarter results from leading lights.
Dubai Financial Market traded 0.2 per cent lower at 2,640 points despite du advancing 0.8 per cent after first-quarter 2021 profits jumped around 39 per cent from the final quarter of 2020, implying the telco has left the worst behind. But gains were limited as the performance fell short of pre-pandamic levels, with profits and revenues dropping compared to the same quarter last year when COVID-19 had just begun to impact.
The index also received some impetus from Gulf Navigation and Emaar Properties. But the advances were overwhelmed by a 1.2 per cent drop in Emirates NBD, which pulled back after three consecutive days of gains. The bank has been on the upside lately after outstanding first-quarter results. But dips keep interrupting the positive run with investors prone to booking profits.
Dubai and Abu Dhabi stocks took a breather from three days of advances on Tuesday morning, with investors keen on profit-booking amid uncertain market conditions. Qatar Exchange gained on the back of strong first-quarter results from leading lights.
Dubai Financial Market traded 0.2 per cent lower at 2,640 points despite du advancing 0.8 per cent after first-quarter 2021 profits jumped around 39 per cent from the final quarter of 2020, implying the telco has left the worst behind. But gains were limited as the performance fell short of pre-pandamic levels, with profits and revenues dropping compared to the same quarter last year when COVID-19 had just begun to impact.
The index also received some impetus from Gulf Navigation and Emaar Properties. But the advances were overwhelmed by a 1.2 per cent drop in Emirates NBD, which pulled back after three consecutive days of gains. The bank has been on the upside lately after outstanding first-quarter results. But dips keep interrupting the positive run with investors prone to booking profits.
Ex-dividend in mind
Dubai Islamic Bank dropped ahead of quarterly results planned for later in the day. UAE banks by and large have reported strong earnings for the first three months, but investors look eager to see more before putting in their money. Islamic Arab Insurance plunged 8.4 per cent on ex-dividend date.
Abu Dhabi Securities Exchange inched 0.3 per cent lower to 6,128 points, weighed down by the banking stocks. First Abu Dhabi Bank was down after a recent run of gains while Abu Dhabi Commercial Bank shed 0.5 per cent, giving up some of over 2 per cent gain it chalked up Monday on the back of a strong first-quarter showing.
Earnings run
Qatar Exchange bucked the downward trend to expand 0.4 per cent to 10,958 points, helped by robust corporate earnings for the first three months. The blue-chip Industries Qatar traded on top after the first-quarter profits jumped to QR1.5 billion from QR300 million a year earlier.
Baladna, Mesaieed Petrochemical and Qatar Insurance traded higher with markets betting the firms will report strong quarterly earnings. Qatar Islamic Bank received partial gains after the board removed ownership limits for foreign investors.
Abu Dhabi Securities Exchange inched 0.3 per cent lower to 6,128 points, weighed down by the banking stocks. First Abu Dhabi Bank was down after a recent run of gains while Abu Dhabi Commercial Bank shed 0.5 per cent, giving up some of over 2 per cent gain it chalked up Monday on the back of a strong first-quarter showing.
Earnings run
Qatar Exchange bucked the downward trend to expand 0.4 per cent to 10,958 points, helped by robust corporate earnings for the first three months. The blue-chip Industries Qatar traded on top after the first-quarter profits jumped to QR1.5 billion from QR300 million a year earlier.
Baladna, Mesaieed Petrochemical and Qatar Insurance traded higher with markets betting the firms will report strong quarterly earnings. Qatar Islamic Bank received partial gains after the board removed ownership limits for foreign investors.
#UAE and UK set to sign multibillion-pound clean energy and tech investment deals | The National
UAE and UK set to sign multibillion-pound clean energy and tech investment deals | The National
The United Kingdom expects to sign multibillion-pound investment deals with the UAE in clean energy and infrastructure as it looks to deepen its trade and investment ties with the Arab world’s second-largest economy, its trade commissioner for the Middle East said.
The UK is also looking to finalise details of investments into its technology sector that may also reach £1 billion ($1.38bn), Simon Penney told The National in an interview.
Britain’s Office for Investments, an agency set up this year to promote and channel investments into the UK, expects to get more clarity on the size and scope of potential deals and how they will be structured by the end of June. Deal announcements “most definitely” will take place in the second half of the year, Mr Penney, a former banker who was also appointed the UK's consul general in Dubai in January, said.
"We haven’t put a number on it because we’re deliberately not boxing ourselves in on numbers ... the size will be determined by the need," Mr Penney said. “It could be bigger than £1bn.”
The United Kingdom expects to sign multibillion-pound investment deals with the UAE in clean energy and infrastructure as it looks to deepen its trade and investment ties with the Arab world’s second-largest economy, its trade commissioner for the Middle East said.
The UK is also looking to finalise details of investments into its technology sector that may also reach £1 billion ($1.38bn), Simon Penney told The National in an interview.
Britain’s Office for Investments, an agency set up this year to promote and channel investments into the UK, expects to get more clarity on the size and scope of potential deals and how they will be structured by the end of June. Deal announcements “most definitely” will take place in the second half of the year, Mr Penney, a former banker who was also appointed the UK's consul general in Dubai in January, said.
"We haven’t put a number on it because we’re deliberately not boxing ourselves in on numbers ... the size will be determined by the need," Mr Penney said. “It could be bigger than £1bn.”
Al Dhabi Capital's Yasin Bullish on #Saudi Banks - Bloomberg
Al Dhabi Capital's Yasin Bullish on Saudi Banks - Bloomberg
Al Dhabi Capital Chief Strategy Officer, Mohammed Ali Yasin, discusses his optimism on Saudi banks after the announcement of a 10-year spending plan, overweight United Arab Emirates markets, and commodities. He speaks with Yousef Gamel El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
COVID-19, subdued oil price to leave most of Gulf in the red this year: Fitch | Reuters
COVID-19, subdued oil price to leave most of Gulf in the red this year: Fitch | Reuters
The lingering impact of the COVID-19 pandemic and last year’s sharp drop in oil prices will leave most governments in the Gulf with deficits this year, ratings agency Fitch said.
Countries in the region will see their finances improve thanks to a rebound in oil prices and the unwinding of production cuts.
But deficits will remain high, particularly in Kuwait and Bahrain. “We expect only Abu Dhabi and Qatar to eke out fiscal surpluses,” Fitch said in a report.
“High fiscal break-even oil prices illustrate the scale of the public finance reform challenge and mostly remain well above current or forecast oil prices.”
Fitch expects average Brent oil prices of $58 a barrel this year but its long-term forecast is $53.
Bahrain would need a price of nearly $100 a barrel to balance its budget in 2021-2022, Kuwait more than $80, and Saudi Arabia and Oman around $70, Fitch estimated.
Brent crude was trading around $66 a barrel on Tuesday. [O/R]
Besides oil revenues, the coronavirus continues to weigh on Gulf states’ coffers, with some countries recently re-imposing restrictions on economic activity.
“Renewed waves of infections continue to hamper external receipts, public finances, employment and GDP growth,” said Fitch.
It expects Abu Dhabi and Qatar to post fiscal surpluses of 1.1% and 2.4% of GDP, respectively. Saudi Arabia, the Gulf’s largest economy, is forecast to post a 5.3% deficit.
The lingering impact of the COVID-19 pandemic and last year’s sharp drop in oil prices will leave most governments in the Gulf with deficits this year, ratings agency Fitch said.
Countries in the region will see their finances improve thanks to a rebound in oil prices and the unwinding of production cuts.
But deficits will remain high, particularly in Kuwait and Bahrain. “We expect only Abu Dhabi and Qatar to eke out fiscal surpluses,” Fitch said in a report.
“High fiscal break-even oil prices illustrate the scale of the public finance reform challenge and mostly remain well above current or forecast oil prices.”
Fitch expects average Brent oil prices of $58 a barrel this year but its long-term forecast is $53.
Bahrain would need a price of nearly $100 a barrel to balance its budget in 2021-2022, Kuwait more than $80, and Saudi Arabia and Oman around $70, Fitch estimated.
Brent crude was trading around $66 a barrel on Tuesday. [O/R]
Besides oil revenues, the coronavirus continues to weigh on Gulf states’ coffers, with some countries recently re-imposing restrictions on economic activity.
“Renewed waves of infections continue to hamper external receipts, public finances, employment and GDP growth,” said Fitch.
It expects Abu Dhabi and Qatar to post fiscal surpluses of 1.1% and 2.4% of GDP, respectively. Saudi Arabia, the Gulf’s largest economy, is forecast to post a 5.3% deficit.
#Qatar Adds U.S. Lobbying Muscle After Saudi Rift, Trump’s Snub - Bloomberg
Qatar Adds U.S. Lobbying Muscle After Saudi Rift, Trump’s Snub - Bloomberg
Qatar is ramping up its lobbying efforts in the U.S., eager to cultivate a closer relationship with the Biden administration and Congress in order to avoid a repeat of 2017, when it was caught off-guard by a Saudi-led boycott in the Persian Gulf.
Since January, Qatar has hired seven prominent firms to do lobbying and consulting work in Washington at a combined rate of $186,000 per month, according to Foreign Agent Registration Act documents. At least five of the firms have close ties to Democrats, including links with the House and Senate foreign affairs committees.
That annual rate of $2.2 million underestimates total costs because they come in addition to the more than a dozen groups contracted by Qatar before 2021, such as Ballard Partners and Nelson Mullins Riley & Scarborough LLP.
The Middle Eastern country, which has a population of about 2.8 million according to the World Bank, has been bolstering its lobbying network since 2017, following the Saudi-led dispute. Saudi Arabia, the United Arab Emirates, Bahrain and Egypt accused Qatar’s ruling family of supporting terrorist groups. They cut off diplomatic relations with Qatar, closed its only land border and banned Qatari planes and ships from their airspace and sea routes. Qatar has rejected the allegations.
Qatar is ramping up its lobbying efforts in the U.S., eager to cultivate a closer relationship with the Biden administration and Congress in order to avoid a repeat of 2017, when it was caught off-guard by a Saudi-led boycott in the Persian Gulf.
Since January, Qatar has hired seven prominent firms to do lobbying and consulting work in Washington at a combined rate of $186,000 per month, according to Foreign Agent Registration Act documents. At least five of the firms have close ties to Democrats, including links with the House and Senate foreign affairs committees.
That annual rate of $2.2 million underestimates total costs because they come in addition to the more than a dozen groups contracted by Qatar before 2021, such as Ballard Partners and Nelson Mullins Riley & Scarborough LLP.
The Middle Eastern country, which has a population of about 2.8 million according to the World Bank, has been bolstering its lobbying network since 2017, following the Saudi-led dispute. Saudi Arabia, the United Arab Emirates, Bahrain and Egypt accused Qatar’s ruling family of supporting terrorist groups. They cut off diplomatic relations with Qatar, closed its only land border and banned Qatari planes and ships from their airspace and sea routes. Qatar has rejected the allegations.
MENA sovereigns: Only #AbuDhabi, #Qatar will have fiscal surpluses in 2021 | ZAWYA MENA Edition
MENA sovereigns: Only Abu Dhabi, Qatar will have fiscal surpluses in 2021 | ZAWYA MENA Edition
Gulf Cooperation Council (GCC) sovereigns will experience significant narrowing of fiscal deficits/GDP in 2021, said Fitch Ratings in a report on Tuesday.
Nevertheless, fiscal deficits will remain high, particularly in Kuwait and Bahrain. “We expect only Abu Dhabi and Qatar to eke out fiscal surpluses. Persistent deficits elsewhere will lead to continued debt issuance and/or drawdowns of assets, although sovereign assets remain sufficient to finance prolonged deficits in the higher-rated sovereigns,” it said.
Fitch has placed Jordan, Kuwait, Oman, Saudi Arabia and Tunisia on Negative Outlook, reflecting the lingering hit to public and external finances and growth as a result of the COVID-19 pandemic and the fall in oil prices last year, as well as liquidity and funding uncertainties in Kuwait and Tunisia.
The ratings agency’s forecasts assume average Brent oil prices of $58 per barrel (bbl) in 2021, accompanied by further unwinding of OPEC+ production cuts beyond the 2.1 million barrel increase already announced for May-July, “although average oil output will still likely end up below 2020 levels.”
Gulf Cooperation Council (GCC) sovereigns will experience significant narrowing of fiscal deficits/GDP in 2021, said Fitch Ratings in a report on Tuesday.
Nevertheless, fiscal deficits will remain high, particularly in Kuwait and Bahrain. “We expect only Abu Dhabi and Qatar to eke out fiscal surpluses. Persistent deficits elsewhere will lead to continued debt issuance and/or drawdowns of assets, although sovereign assets remain sufficient to finance prolonged deficits in the higher-rated sovereigns,” it said.
Fitch has placed Jordan, Kuwait, Oman, Saudi Arabia and Tunisia on Negative Outlook, reflecting the lingering hit to public and external finances and growth as a result of the COVID-19 pandemic and the fall in oil prices last year, as well as liquidity and funding uncertainties in Kuwait and Tunisia.
The ratings agency’s forecasts assume average Brent oil prices of $58 per barrel (bbl) in 2021, accompanied by further unwinding of OPEC+ production cuts beyond the 2.1 million barrel increase already announced for May-July, “although average oil output will still likely end up below 2020 levels.”
Oil rebounds to $66 ahead of OPEC+ meeting, India's COVID surge weighs | Reuters
Oil rebounds to $66 ahead of OPEC+ meeting, India's COVID surge weighs | Reuters
Oil rebounded to $66 a barrel on Tuesday on speculation that a meeting of producer group OPEC+ may tweak oil output policy to address India’s coronavirus crisis that could dent fuel demand.
OPEC and allies will hold a monitoring meeting on Tuesday instead of April 28 as planned earlier. A technical meeting on Monday had voiced concern about surging COVID-19 cases, although it kept its 2021 oil demand forecast unchanged.
Brent crude was up 58 cents, or 0.9%, at $66.23 a barrel by 0820 GMT, after dropping 0.7% on Monday. U.S. oil gained 79 cents, or 1.3%, to $62.70.
“Oil prices are ticking up today on trader hopes that OPEC+ may address India’s demand destruction with supply policy amendments in its coming meeting,” said Bjornar Tonhaugen of Rystad Energy.
Oil rebounded to $66 a barrel on Tuesday on speculation that a meeting of producer group OPEC+ may tweak oil output policy to address India’s coronavirus crisis that could dent fuel demand.
OPEC and allies will hold a monitoring meeting on Tuesday instead of April 28 as planned earlier. A technical meeting on Monday had voiced concern about surging COVID-19 cases, although it kept its 2021 oil demand forecast unchanged.
Brent crude was up 58 cents, or 0.9%, at $66.23 a barrel by 0820 GMT, after dropping 0.7% on Monday. U.S. oil gained 79 cents, or 1.3%, to $62.70.
“Oil prices are ticking up today on trader hopes that OPEC+ may address India’s demand destruction with supply policy amendments in its coming meeting,” said Bjornar Tonhaugen of Rystad Energy.
Monday, 26 April 2021
Oil falls on India's COVID surge; OPEC+ limits drop | Reuters
Oil falls on India's COVID surge; OPEC+ limits drop | Reuters
Oil pared its losses on Monday as the Organization of the Petroleum Exporting Countries and its allies indicated that it was watching surging COVID-19 cases in India, which may dent fuel demand in the world's third-biggest oil importer.
Brent crude settled 46 cents lower, down 0.7% at $65.65 a barrel, after trading at a session low of $64.57 a barrel. U.S. West Texas Intermediate (WTI) crude ended down 23 cents, or 0.4%, at $61.91 a barrel, after touching a session low of $60.66.
"The market is on guard, coming back from India demand fears on reports that the OPEC technical committee acknowledged potential demand threats from the situation in India," said Phil Flynn, senior analyst at Price Futures Group in Chicago.
The OPEC+ joint technical committee (JTC) has kept its forecast for growth in global oil demand this year, but is concerned about surging COVID-19 cases in India and elsewhere, three sources from the producer group told Reuters.
Oil pared its losses on Monday as the Organization of the Petroleum Exporting Countries and its allies indicated that it was watching surging COVID-19 cases in India, which may dent fuel demand in the world's third-biggest oil importer.
Brent crude settled 46 cents lower, down 0.7% at $65.65 a barrel, after trading at a session low of $64.57 a barrel. U.S. West Texas Intermediate (WTI) crude ended down 23 cents, or 0.4%, at $61.91 a barrel, after touching a session low of $60.66.
"The market is on guard, coming back from India demand fears on reports that the OPEC technical committee acknowledged potential demand threats from the situation in India," said Phil Flynn, senior analyst at Price Futures Group in Chicago.
The OPEC+ joint technical committee (JTC) has kept its forecast for growth in global oil demand this year, but is concerned about surging COVID-19 cases in India and elsewhere, three sources from the producer group told Reuters.