Oil settles down 1% as U.S. refineries shut; Washington pushes OPEC to pump more | Reuters
Oil settled down 1% on Tuesday, posting its first monthly loss since March, as demand is expected to drop after Hurricane Ida shuttered U.S. Gulf refineries.
Brent crude futures for October, due to expire on Tuesday, settled down 42 cents, or 0.6%, at $72.99 a barrel.
U.S. West Texas Intermediate (WTI) crude futures settled down 71 cents, or 1%, at $68.50.
Both benchmarks posted their first monthly losses since March, even though they are not far from July highs. Brent lost 4% in July while U.S. crude fell 7%.
Hurricane Ida, which made landfall in the United States on Sunday as a Category 4 hurricane, knocked out at least 94% of offshore Gulf of Mexico oil and gas production and caused "catastrophic" damage to Louisiana's grid. read more
Tuesday, 31 August 2021
OPEC+ sees tighter oil market until May 2022 | Reuters
OPEC+ sees tighter oil market until May 2022 | Reuters
OPEC+ expects the oil market to be in deficit at least until the end of 2021 and stocks to stay relatively low until May 2022, OPEC+ sources said on Tuesday, a day ahead of a policy meeting amid U.S. pressure to raise production.
The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, collectively known as OPEC+, meet on Wednesday at 1500 GMT to set policy.
Sources told Reuters the meeting is likely to roll over existing policies despite pressure from the United States to pump more oil. read more
Still, the forecast for a tighter market strengthens the case for a speedier output increases by OPEC+ as benchmark Brent oil prices trade close to $73 per barrel - not far off their multi-year highs.
OPEC+ expects the oil market to be in deficit at least until the end of 2021 and stocks to stay relatively low until May 2022, OPEC+ sources said on Tuesday, a day ahead of a policy meeting amid U.S. pressure to raise production.
The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, collectively known as OPEC+, meet on Wednesday at 1500 GMT to set policy.
Sources told Reuters the meeting is likely to roll over existing policies despite pressure from the United States to pump more oil. read more
Still, the forecast for a tighter market strengthens the case for a speedier output increases by OPEC+ as benchmark Brent oil prices trade close to $73 per barrel - not far off their multi-year highs.
#Dubai's Emaar considers sale of e-commerce business Namshi -sources | Reuters
Dubai's Emaar considers sale of e-commerce business Namshi -sources | Reuters
Dubai's Emaar (EMAR.DU) is weighing options to sell fashion e-commerce business Namshi that may include a listing abroad via a SPAC, three sources familiar with the matter said.
An outright sale of Namshi may generate $600 million to $700 million in proceeds, while a listing through a special purpose acquisition company (SPAC) could be more lucrative, said one of the sources.
Emaar, which declined to comment, has approached some banks for potential advice on the deal, the sources said.
Emaar Malls, the retail arm of Dubai's biggest developer, Emaar Properties, bought a 51% stake in Namshi from Global Fashion Group (GFG.DE) for $151 million in 2017 shortly after Amazon.com (AMZN.O) bought Dubai-based e-commerce website Souq.com.
It bought the remaining 49% in 2019 for about $130 million.
Namshi posted revenues of 685 million dirhams ($187 million) in the first half of the year, up from 664 million dirhams in the same period one year earlier.
A SPAC - a popular dealmaking vehicle - raises money to acquire a private firm with the purpose of taking it public, allowing the target to list more quickly on share markets than via a traditional initial public offering.
SPACs are not permitted on UAE bourses, encouraging companies to seek out alternative venues. read more
Abu Dhabi-based music streaming app Anghami, the Middle East's rival to Spotify (SPOT.N), said in March it would become the first Arab tech company to list on the Nasdaq after agreeing to merge with a SPAC.
Dubai's Emaar (EMAR.DU) is weighing options to sell fashion e-commerce business Namshi that may include a listing abroad via a SPAC, three sources familiar with the matter said.
An outright sale of Namshi may generate $600 million to $700 million in proceeds, while a listing through a special purpose acquisition company (SPAC) could be more lucrative, said one of the sources.
Emaar, which declined to comment, has approached some banks for potential advice on the deal, the sources said.
Emaar Malls, the retail arm of Dubai's biggest developer, Emaar Properties, bought a 51% stake in Namshi from Global Fashion Group (GFG.DE) for $151 million in 2017 shortly after Amazon.com (AMZN.O) bought Dubai-based e-commerce website Souq.com.
It bought the remaining 49% in 2019 for about $130 million.
Namshi posted revenues of 685 million dirhams ($187 million) in the first half of the year, up from 664 million dirhams in the same period one year earlier.
A SPAC - a popular dealmaking vehicle - raises money to acquire a private firm with the purpose of taking it public, allowing the target to list more quickly on share markets than via a traditional initial public offering.
SPACs are not permitted on UAE bourses, encouraging companies to seek out alternative venues. read more
Abu Dhabi-based music streaming app Anghami, the Middle East's rival to Spotify (SPOT.N), said in March it would become the first Arab tech company to list on the Nasdaq after agreeing to merge with a SPAC.
#UAE top banks' profits set to improve as provisioning eases -Moody's | Reuters
UAE top banks' profits set to improve as provisioning eases -Moody's | Reuters
The United Arab Emirates' top banks are likely to see profits increase over the next 12 to 18 months as they book lower loan-loss provisions while the economy recovers from the coronavirus shock, ratings agency Moody's said on Tuesday.
In the first half of the year, the UAE's largest four banks - First Abu Dhabi Bank (FAB.AD), Emirates NBD (ENBD.DU), Abu Dhabi Commercial Bank (ADCB.AD) and Dubai Islamic Bank (DISB.DU) - posted a combined net profit of $4 billion, up 17% over the same period last year.
That was partly because lenders set aside lower provisions for potential loan losses - provisioning declined by 38% year on year in the first half.
But Moody's cautioned that this could change when a stimulus measure introduced by the UAE central bank ends.
"Provisioning could potentially pick up once again when the central bank's loan repayment deferral program TESS ends, potentially resulting in a rise in problematic loans as distressed customers face repayment pressures due to the pandemic," said the agency.
Financing provided by the UAE central bank for loan deferrals under the Targeted Economic Support Scheme (TESS) - which was introduced last year to mitigate the impact of the pandemic on the economy - has been extended until the end of this year. read more
Profits at the UAE's four largest banks are expected to go back to pre-pandemic levels in 2022 or 2023, Moody's said.
The United Arab Emirates' top banks are likely to see profits increase over the next 12 to 18 months as they book lower loan-loss provisions while the economy recovers from the coronavirus shock, ratings agency Moody's said on Tuesday.
In the first half of the year, the UAE's largest four banks - First Abu Dhabi Bank (FAB.AD), Emirates NBD (ENBD.DU), Abu Dhabi Commercial Bank (ADCB.AD) and Dubai Islamic Bank (DISB.DU) - posted a combined net profit of $4 billion, up 17% over the same period last year.
That was partly because lenders set aside lower provisions for potential loan losses - provisioning declined by 38% year on year in the first half.
But Moody's cautioned that this could change when a stimulus measure introduced by the UAE central bank ends.
"Provisioning could potentially pick up once again when the central bank's loan repayment deferral program TESS ends, potentially resulting in a rise in problematic loans as distressed customers face repayment pressures due to the pandemic," said the agency.
Financing provided by the UAE central bank for loan deferrals under the Targeted Economic Support Scheme (TESS) - which was introduced last year to mitigate the impact of the pandemic on the economy - has been extended until the end of this year. read more
Profits at the UAE's four largest banks are expected to go back to pre-pandemic levels in 2022 or 2023, Moody's said.
Oil Heads for Biggest Monthly Loss This Year Before OPEC+ Meets - Bloomberg
Oil Heads for Biggest Monthly Loss This Year Before OPEC+ Meets - Bloomberg
Oil in New York is headed for the biggest monthly loss since October as investors weighed the prospect of additional OPEC+ production and the restoration of crude output in the U.S. after Hurricane Ida.
West Texas Intermediate fell as much as 1.5% in New York and has declined about 7% this month. Gulf of Mexico crude producers are expected to resume service gradually after Ida crashed ashore in Louisiana over the weekend. Refineries are expected to return to operations more slowly.
There’s optimism that the industry will bounce back sooner than later, which is causing crude prices to weaken, said Robert Yawger, director of the futures division at Mizuho Securities.
“I’m looking for oil production coming back in a week and refineries coming back in two weeks,” he said.
Oil in New York is headed for the biggest monthly loss since October as investors weighed the prospect of additional OPEC+ production and the restoration of crude output in the U.S. after Hurricane Ida.
West Texas Intermediate fell as much as 1.5% in New York and has declined about 7% this month. Gulf of Mexico crude producers are expected to resume service gradually after Ida crashed ashore in Louisiana over the weekend. Refineries are expected to return to operations more slowly.
There’s optimism that the industry will bounce back sooner than later, which is causing crude prices to weaken, said Robert Yawger, director of the futures division at Mizuho Securities.
“I’m looking for oil production coming back in a week and refineries coming back in two weeks,” he said.
Eat Just to Build Cultured-Meat Plant in #Qatar Amid Global Push - Bloomberg
Eat Just to Build Cultured-Meat Plant in Qatar Amid Global Push - Bloomberg
Eat Just Inc., a San Francisco-based startup making cultured chicken and vegan eggs, plans to build a commercial facility in Qatar to produce cell-based meat as it looks to expand into new markets overseas.
The company is partnering with state-backed Doha Venture Capital and the Qatar Free Zones Authority to build the large-scale plant, which could take two years to complete, according to Eat Just Chief Executive Officer Josh Tetrick. The effort could cost more than $200 million, with a “relevant chunk” of that coming from an investment by the venture firm, Tetrick said without disclosing the exact amount.
The new facility will be significantly larger than the one Eat Just uses to produce in Singapore, which recently became the first country to approve the sale of cell-based chicken. Cultured meat, which is grown from cells instead of slaughtering live animals, could become a $25 billion industry by 2030, according to a recent report from McKinsey & Co.
“We want to build facilities that are making a lot of meat,” Tetrick said in an interview. Plans are in place to eventually add capacity to also produce the company’s Just Egg product, made from mung beans.
The company chose Qatar in part because of its openness to cultured meat and desire to find innovative, long-term solutions to food security, he said. It also gives Eat Just a foothold in the Middle East and North Africa region, potentially allowing for future exports to areas such as western Europe.
The Qatar Free Zones Authority, which oversees and advocates for the country’s economic free zones, and the Ministry of Public Health intend to grant regulatory approval “very soon” for the cell-based chicken sold by the company’s Good Meat subsidiary, Tetrick said. That would make it just the second country to give a green light. Additionally, Eat Just has already been granted an export license, supporting the company’s future growth plans.
“Right from the beginning, we are looking at what the export plan is,” said Lim Meng Hui, CEO of the free zones authority.
Eat Just Inc., a San Francisco-based startup making cultured chicken and vegan eggs, plans to build a commercial facility in Qatar to produce cell-based meat as it looks to expand into new markets overseas.
The company is partnering with state-backed Doha Venture Capital and the Qatar Free Zones Authority to build the large-scale plant, which could take two years to complete, according to Eat Just Chief Executive Officer Josh Tetrick. The effort could cost more than $200 million, with a “relevant chunk” of that coming from an investment by the venture firm, Tetrick said without disclosing the exact amount.
The new facility will be significantly larger than the one Eat Just uses to produce in Singapore, which recently became the first country to approve the sale of cell-based chicken. Cultured meat, which is grown from cells instead of slaughtering live animals, could become a $25 billion industry by 2030, according to a recent report from McKinsey & Co.
“We want to build facilities that are making a lot of meat,” Tetrick said in an interview. Plans are in place to eventually add capacity to also produce the company’s Just Egg product, made from mung beans.
The company chose Qatar in part because of its openness to cultured meat and desire to find innovative, long-term solutions to food security, he said. It also gives Eat Just a foothold in the Middle East and North Africa region, potentially allowing for future exports to areas such as western Europe.
The Qatar Free Zones Authority, which oversees and advocates for the country’s economic free zones, and the Ministry of Public Health intend to grant regulatory approval “very soon” for the cell-based chicken sold by the company’s Good Meat subsidiary, Tetrick said. That would make it just the second country to give a green light. Additionally, Eat Just has already been granted an export license, supporting the company’s future growth plans.
“Right from the beginning, we are looking at what the export plan is,” said Lim Meng Hui, CEO of the free zones authority.
Head of Libya Oil Firm Rebuffs Minister’s Attempt to Suspend Him - Bloomberg
Head of Libya Oil Firm Rebuffs Minister’s Attempt to Suspend Him - Bloomberg
The head of Libya’s state energy company rejected an attempt by the OPEC nation’s oil minister to have him suspended and the board disbanded.
“The minister of oil cannot legally suspend me from work or refer me to investigation,” Mustafa Sanalla, the long-standing chairman of Libya’s National Oil Corp., said during an interview in his office in Tripoli on Monday. “The cabinet is the decision-maker and has the final word on the NOC.”
The interview came days after Oil Minister Mohamed Oun said Sanalla should step aside for an alleged “violation” of rules regarding business travel. While Sanalla said the dispute would not affect Libya’s crude production, it underscores the political tensions in a country that’s been mired in conflict and civil war for much of the past decade.
“The minister of oil or anyone else cannot question the legitimacy of the NOC’s board of directors,” said Sanalla, who’s been chairman since 2014. “I have no problem if a decision is issued to change the board of directors of the NOC through the cabinet.”
The head of Libya’s state energy company rejected an attempt by the OPEC nation’s oil minister to have him suspended and the board disbanded.
“The minister of oil cannot legally suspend me from work or refer me to investigation,” Mustafa Sanalla, the long-standing chairman of Libya’s National Oil Corp., said during an interview in his office in Tripoli on Monday. “The cabinet is the decision-maker and has the final word on the NOC.”
The interview came days after Oil Minister Mohamed Oun said Sanalla should step aside for an alleged “violation” of rules regarding business travel. While Sanalla said the dispute would not affect Libya’s crude production, it underscores the political tensions in a country that’s been mired in conflict and civil war for much of the past decade.
“The minister of oil or anyone else cannot question the legitimacy of the NOC’s board of directors,” said Sanalla, who’s been chairman since 2014. “I have no problem if a decision is issued to change the board of directors of the NOC through the cabinet.”
#SaudiArabia PIF-Backed ACWA Power to Seek More than $1 Billion in IPO - Bloomberg
Saudi Arabia PIF-Backed ACWA Power to Seek More than $1 Billion in IPO - Bloomberg
Saudi Arabia’s ACWA Power International is close to announcing an initial public offering to raise more than $1 billion, according to people familiar with the matter.
A Riyadh listing may value the utility at $10 billion or more, said the people, who asked not to be named. An announcement may be made as soon as this week, they said.
ACWA Power declined to comment.
While ACWA runs many natural gas-fired power plants, the Saudi government plans to make it the main vehicle for the kingdom’s major solar and green-hydrogen projects.
Saudi Arabia’s ACWA Power International is close to announcing an initial public offering to raise more than $1 billion, according to people familiar with the matter.
A Riyadh listing may value the utility at $10 billion or more, said the people, who asked not to be named. An announcement may be made as soon as this week, they said.
ACWA Power declined to comment.
While ACWA runs many natural gas-fired power plants, the Saudi government plans to make it the main vehicle for the kingdom’s major solar and green-hydrogen projects.
MIDEAST STOCKS #Saudi market shrugs off China data as most Gulf bourses retreat | Reuters
MIDEAST STOCKS Saudi market shrugs off China data as most Gulf bourses retreat | Reuters
Saudi Arabia's stock market outperformed its regional peers on Tuesday, while most other Gulf bourses remained pressured on worries about China's slowing economic growth.
GCC bourses were under the weight of international economic concerns. The Chinese manufacturing index is softer than expected signalling a slowing economy and U.S. consumer confidence in the economy is expected to be a little lower, said Wael Makarem, senior market strategist at Exness.
Saudi Arabia's benchmark index (.TASI) gained 0.6%, extending gains for the second session, with Saudi Telecom Company (7010.SE) advancing 2.9% and Saudi National Bank (1180.SE) rising 1.3%.
The Saudi market is supported by solid national economic fundamentals and the positive COVID situation. The announced talks between the kingdom and Iran have also benefited the exchange, said Makarem.
"The initiative should help alleviate any future tensions in the region and enhance cooperation."
Iran plans to hold a fourth round of talks with regional rival Saudi Arabia in Iraq after the new Iranian government is set up, the Iranian ambassador in Baghdad was quoted on Tuesday as saying. read more
In Abu Dhabi, the index (.ADI) finished flat, with Abu Dhabi National Hotels (ADNH.AD) declining about 10%.
Abu Dhabi state-owned holding company ADQ has withdrawn an offer to combine Abu Dhabi National Hotels Company (ADNH) with Abu Dhabi National Exhibitions Company (ADNEC), ADNH said in a bourse filing. read more
ADQ said in June it had submitted an offer to ADNH to combine it with ADNEC, the exhibitions company, to "create one of the largest hospitality, events and catering powerhouses in the region" with assets of around 20 billion dirhams ($5.45 billion).
However, the index's losses were capped by gains at Agthia Group (AGTHIA.AD), which jumped 8.9%.
The board had called a meeting on Tuesday to discuss a potential acquisition.
Dubai's main share index (.DFMGI) edged up 0.1%, helped by a 0.7% gain in blue-chip developer Emaar Properties (EMAR.DU).
The Qatari benchmark (.QSI) lost 0.1%, pressured by a 1.8% decline in petrochemical maker Industries Qatar (IQCD.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX) fell 0.2%, with top lender Commercial International Bank (COMI.CA) losing 2.1%.
Saudi Arabia's stock market outperformed its regional peers on Tuesday, while most other Gulf bourses remained pressured on worries about China's slowing economic growth.
GCC bourses were under the weight of international economic concerns. The Chinese manufacturing index is softer than expected signalling a slowing economy and U.S. consumer confidence in the economy is expected to be a little lower, said Wael Makarem, senior market strategist at Exness.
Saudi Arabia's benchmark index (.TASI) gained 0.6%, extending gains for the second session, with Saudi Telecom Company (7010.SE) advancing 2.9% and Saudi National Bank (1180.SE) rising 1.3%.
The Saudi market is supported by solid national economic fundamentals and the positive COVID situation. The announced talks between the kingdom and Iran have also benefited the exchange, said Makarem.
"The initiative should help alleviate any future tensions in the region and enhance cooperation."
Iran plans to hold a fourth round of talks with regional rival Saudi Arabia in Iraq after the new Iranian government is set up, the Iranian ambassador in Baghdad was quoted on Tuesday as saying. read more
In Abu Dhabi, the index (.ADI) finished flat, with Abu Dhabi National Hotels (ADNH.AD) declining about 10%.
Abu Dhabi state-owned holding company ADQ has withdrawn an offer to combine Abu Dhabi National Hotels Company (ADNH) with Abu Dhabi National Exhibitions Company (ADNEC), ADNH said in a bourse filing. read more
ADQ said in June it had submitted an offer to ADNH to combine it with ADNEC, the exhibitions company, to "create one of the largest hospitality, events and catering powerhouses in the region" with assets of around 20 billion dirhams ($5.45 billion).
However, the index's losses were capped by gains at Agthia Group (AGTHIA.AD), which jumped 8.9%.
The board had called a meeting on Tuesday to discuss a potential acquisition.
Dubai's main share index (.DFMGI) edged up 0.1%, helped by a 0.7% gain in blue-chip developer Emaar Properties (EMAR.DU).
The Qatari benchmark (.QSI) lost 0.1%, pressured by a 1.8% decline in petrochemical maker Industries Qatar (IQCD.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX) fell 0.2%, with top lender Commercial International Bank (COMI.CA) losing 2.1%.
Oil falls as U.S. refineries shut; Washington pushes OPEC to pump more | Reuters
Oil falls as U.S. refineries shut; Washington pushes OPEC to pump more | Reuters
Oil fell on Tuesday on expectations for demand to fall after Hurricane Ida shuttered refinerson the U.S. Gulf Coast, and as producing nations in OPEC+ geared up to meet on Wednesday with the United States callingfor suppliers to pump more crude.
Brent crude futures for October, due to expire on Tuesday, fell 39 cents, or 0.5%, to $73.02 a barrel by 11:08 a.m. EDT (1508 GMT).
U.S. West Texas Intermediate (WTI) crude futures were down 43 cents, or 0.6%, at $68.78.
Both benchmarks were on track for their first monthly loss since March but were still not far from their July highs, when Brent rose to its strongest since 2018 and U.S. crude since 2014.
Hurricane Ida, which made landfall in the United States on Sunday as a Category 4 hurricane, knocked out at least 94% of offshore Gulf of Mexico oil and gas production and caused "catastrophic" damage to Louisiana's grid. read more
Oil fell on Tuesday on expectations for demand to fall after Hurricane Ida shuttered refinerson the U.S. Gulf Coast, and as producing nations in OPEC+ geared up to meet on Wednesday with the United States callingfor suppliers to pump more crude.
Brent crude futures for October, due to expire on Tuesday, fell 39 cents, or 0.5%, to $73.02 a barrel by 11:08 a.m. EDT (1508 GMT).
U.S. West Texas Intermediate (WTI) crude futures were down 43 cents, or 0.6%, at $68.78.
Both benchmarks were on track for their first monthly loss since March but were still not far from their July highs, when Brent rose to its strongest since 2018 and U.S. crude since 2014.
Hurricane Ida, which made landfall in the United States on Sunday as a Category 4 hurricane, knocked out at least 94% of offshore Gulf of Mexico oil and gas production and caused "catastrophic" damage to Louisiana's grid. read more
Monday, 30 August 2021
Oil Edges Up as U.S. Gulf Producers Assess Damage After Ida - Bloomberg
Oil Edges Up as U.S. Gulf Producers Assess Damage After Ida - Bloomberg
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Oil up, off session highs after Ida; OPEC+ looks to boost output | Reuters
Oil up, off session highs after Ida; OPEC+ looks to boost output | Reuters
Oil edged higher on Monday, but remained below session highs as Hurricane Ida weakened after forcing shutdowns of U.S. Gulf oil production, and OPEC+ looked set to go ahead with a planned oil output increase.
Within 12 hours of coming ashore, the storm had weakened into a Category 1 hurricane. Nearly all offshore Gulf oil production, or 1.74 million barrels per day, was suspended in advance of the storm. read more
The storm's move inland shifted the focus to when oil refiners can restart and produce fuels after heavy winds and rains.
"We're in wait-and see mode on how badly the refiners will be impacted by the power outages," said John Kilduff, a partner at Again Capital Management in New York. "There's going to be an accounting to be done later this week as damage is assessed - I would give it some time to breathe, like a fine wine," he said.
Brent crude rose 49 cents a barrel, or 6.7% to 73.19 by 12:24 ET (1624 GMT), having reached $73.69 earlier, the highest since Aug. 2. U.S. crude rose 37 cents, or 0.51% to $69.11 a barrel, having earlier touched $69.64, the highest since Aug. 6.
Oil edged higher on Monday, but remained below session highs as Hurricane Ida weakened after forcing shutdowns of U.S. Gulf oil production, and OPEC+ looked set to go ahead with a planned oil output increase.
Within 12 hours of coming ashore, the storm had weakened into a Category 1 hurricane. Nearly all offshore Gulf oil production, or 1.74 million barrels per day, was suspended in advance of the storm. read more
The storm's move inland shifted the focus to when oil refiners can restart and produce fuels after heavy winds and rains.
"We're in wait-and see mode on how badly the refiners will be impacted by the power outages," said John Kilduff, a partner at Again Capital Management in New York. "There's going to be an accounting to be done later this week as damage is assessed - I would give it some time to breathe, like a fine wine," he said.
Brent crude rose 49 cents a barrel, or 6.7% to 73.19 by 12:24 ET (1624 GMT), having reached $73.69 earlier, the highest since Aug. 2. U.S. crude rose 37 cents, or 0.51% to $69.11 a barrel, having earlier touched $69.64, the highest since Aug. 6.
MIDEAST STOCKS Most Gulf bourses follow global shares higher | Reuters
MIDEAST STOCKS Most Gulf bourses follow global shares higher | Reuters
Most stock markets in the Gulf settled higher on Monday, building on gains from the previous session as global shares hovered around record highs on signs the Fed won't rush to wind down its massive stimulus.
Gains in world stock markets helped lift investor confidence in the Gulf, said Daniel Takieddine, senior market analyst at FXPrimus.
Underpinning positive sentiment in global equity markets was Friday's Jackson Hole speech by U.S. Federal Reserve Chair Jerome Powell in which he said tapering of stimulus measures could begin this year, but added the central bank would remain cautious. read more
"Additional support is anticipated from the U.S. economic growth in general," said Takieddine.
Saudi Arabia's benchmark index (.TASI) advanced 0.7%, with Saudi National Bank (1180.SE), the kingdom's largest lender, and Saudi Telecom Company (7010.SE) both gaining 1.9%.
In Abu Dhabi, the index (.ADI) added 0.4%, led by a 0.8% gain in Emirates Telecommunications Group (ETISALAT.AD) and a 0.6% increase in conglomerate International Holding (IHC.AD).
The Qatari index (.QSI) rose 0.2%, snapping three sessions of losses, helped by a 0.6% rise in petrochemical maker Industries Qatar (IQCD.QA).
Elsewhere, dairy company Baladna (BLDN.QA) finished 0.6% higher, a day after it announced a new chief executive.
Dubai's main share index (.DFMGI), however, eased 0.1%, pressured by a 0.6% drop in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
The Dubai bourse will remain cautious ahead of OPEC's meeting later this week, said Takieddine.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, collectively known as OPEC+, will meet on Wednesday to discuss the previously agreed increase of 400,000 barrels per day (bpd) for the next several months.
Outside the Gulf, Egypt's blue-chip index (.EGX30) ended 0.5% higher, with top lender Commercial International Bank (COMI.CA) rising 0.8%, while Cleopatra Hospital (CLHO.CA) jumped over 5%.
On Sunday, the hospital operator reported a consolidated net profit of 90.6 million Egyptian pounds ($5.79 million) for the second quarter, up from 18.5 million a year earlier.
Among other gainers, investment bank EFG Hermes (HRHO.CA) gained 1.7% after obtaining central bank approval to complete Arab Invesment Bank's deal.
Most stock markets in the Gulf settled higher on Monday, building on gains from the previous session as global shares hovered around record highs on signs the Fed won't rush to wind down its massive stimulus.
Gains in world stock markets helped lift investor confidence in the Gulf, said Daniel Takieddine, senior market analyst at FXPrimus.
Underpinning positive sentiment in global equity markets was Friday's Jackson Hole speech by U.S. Federal Reserve Chair Jerome Powell in which he said tapering of stimulus measures could begin this year, but added the central bank would remain cautious. read more
"Additional support is anticipated from the U.S. economic growth in general," said Takieddine.
Saudi Arabia's benchmark index (.TASI) advanced 0.7%, with Saudi National Bank (1180.SE), the kingdom's largest lender, and Saudi Telecom Company (7010.SE) both gaining 1.9%.
In Abu Dhabi, the index (.ADI) added 0.4%, led by a 0.8% gain in Emirates Telecommunications Group (ETISALAT.AD) and a 0.6% increase in conglomerate International Holding (IHC.AD).
The Qatari index (.QSI) rose 0.2%, snapping three sessions of losses, helped by a 0.6% rise in petrochemical maker Industries Qatar (IQCD.QA).
Elsewhere, dairy company Baladna (BLDN.QA) finished 0.6% higher, a day after it announced a new chief executive.
Dubai's main share index (.DFMGI), however, eased 0.1%, pressured by a 0.6% drop in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
The Dubai bourse will remain cautious ahead of OPEC's meeting later this week, said Takieddine.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, collectively known as OPEC+, will meet on Wednesday to discuss the previously agreed increase of 400,000 barrels per day (bpd) for the next several months.
Outside the Gulf, Egypt's blue-chip index (.EGX30) ended 0.5% higher, with top lender Commercial International Bank (COMI.CA) rising 0.8%, while Cleopatra Hospital (CLHO.CA) jumped over 5%.
On Sunday, the hospital operator reported a consolidated net profit of 90.6 million Egyptian pounds ($5.79 million) for the second quarter, up from 18.5 million a year earlier.
Among other gainers, investment bank EFG Hermes (HRHO.CA) gained 1.7% after obtaining central bank approval to complete Arab Invesment Bank's deal.
#Qatar emerges as key player in Afghanistan after US pullout
Qatar emerges as key player in Afghanistan after US pullout
Qatar played an outsized role in U.S. efforts to evacuate tens of thousands of people from Afghanistan. Now the tiny Gulf Arab state is being asked to help shape what is next for Afghanistan because of its ties with both Washington and the Taliban, who are in charge in Kabul.
Qatar will be among global heavyweights on Monday when U.S. Secretary of State Antony Blinken hosts a virtual meeting to discuss a coordinated approach for the days ahead, as the U.S. completes its withdrawal from Afghanistan following the Taliban takeover of the country. The meeting will also include Canada, France, Germany, Italy, Japan, the United Kingdom, Turkey, the European Union and NATO.
Qatar has also reportedly been asked by the Taliban to provide civilian technical assistance at Kabul’s international airport, once the U.S. military withdrawal is complete on Tuesday. Authorities in Qatar have not commented on the reports.
Meanwhile, international U.N. agencies are asking Qatar for help and support in delivering aid to Afghanistan.
Qatar played an outsized role in U.S. efforts to evacuate tens of thousands of people from Afghanistan. Now the tiny Gulf Arab state is being asked to help shape what is next for Afghanistan because of its ties with both Washington and the Taliban, who are in charge in Kabul.
Qatar will be among global heavyweights on Monday when U.S. Secretary of State Antony Blinken hosts a virtual meeting to discuss a coordinated approach for the days ahead, as the U.S. completes its withdrawal from Afghanistan following the Taliban takeover of the country. The meeting will also include Canada, France, Germany, Italy, Japan, the United Kingdom, Turkey, the European Union and NATO.
Qatar has also reportedly been asked by the Taliban to provide civilian technical assistance at Kabul’s international airport, once the U.S. military withdrawal is complete on Tuesday. Authorities in Qatar have not commented on the reports.
Meanwhile, international U.N. agencies are asking Qatar for help and support in delivering aid to Afghanistan.
Oil steadies as Hurricane Ida weakens, OPEC+ in focus | Reuters
Oil steadies as Hurricane Ida weakens, OPEC+ in focus | Reuters
Oil steadied on Monday, giving up most of an earlier rally to a four-week high, as Hurricane Ida weakened after forcing shutdowns of U.S. Gulf oil production, and OPEC+ looked set to go ahead with a planned oil output increase.
Within 12 hours of coming ashore, the storm had weakened into a Category 1 hurricane. Nearly all offshore Gulf oil production, or 1.74 million barrels per day, was suspended in advance of the storm. read more
Brent crude was up 11 cents, or 0.2%, at $72.81 by 1135 GMT, having reached $73.69 earlier, the highest since Aug. 2. U.S. crude fell 30 cents or 0.4% to $68.44, having earlier touched $69.64, the highest since Aug. 6.
"Hurricane Ida will dictate oil's near-term direction," said Jeffrey Halley, senior market analyst at OANDA. "If Ida weakens and its path of destruction is lower than expected, oil's rally will temporarily lose momentum here."
Oil steadied on Monday, giving up most of an earlier rally to a four-week high, as Hurricane Ida weakened after forcing shutdowns of U.S. Gulf oil production, and OPEC+ looked set to go ahead with a planned oil output increase.
Within 12 hours of coming ashore, the storm had weakened into a Category 1 hurricane. Nearly all offshore Gulf oil production, or 1.74 million barrels per day, was suspended in advance of the storm. read more
Brent crude was up 11 cents, or 0.2%, at $72.81 by 1135 GMT, having reached $73.69 earlier, the highest since Aug. 2. U.S. crude fell 30 cents or 0.4% to $68.44, having earlier touched $69.64, the highest since Aug. 6.
"Hurricane Ida will dictate oil's near-term direction," said Jeffrey Halley, senior market analyst at OANDA. "If Ida weakens and its path of destruction is lower than expected, oil's rally will temporarily lose momentum here."
#SaudiArabia’s grandiose climate plans struggle to take off | Financial Times
Saudi Arabia’s grandiose climate plans struggle to take off | Financial Times
When Crown Prince Mohammed bin Salman announced Saudi Arabia’s “green initiative” this year he did so with the type of eye-catching pledge that has come to characterise the young royal’s grandiose plans to modernise the kingdom.
Promising that the world’s top oil exporter would lead the “next green era”, Prince Mohammed vowed that 50 per cent of Saudi Arabia’s power generation would be provided by renewables by 2030, with the other 50 per cent fuelled by gas. Riyadh would also plant 10bn trees in the desert nation in the coming decades.
“As a leading global oil producer, we are fully aware of our share of responsibility in advancing the fight against the climate crisis,” the prince said as he unveiled the plan in March. “And as [with] our pioneering role in stabilising energy markets during the oil and gas era, we will act to lead the next green era.”
But as with many of the prince’s ambitious schemes, sceptics question whether his rhetoric will be matched with tangible action on the ground. The kingdom burns about 1m barrels of oil equivalent a day to fuel its power system, a figure that rises sharply in the scorching summer months when Saudis rely on air-conditioning to keep cool.
The Climate Action Tracker, an independent research group, rates Saudi Arabia’s climate commitments as “critically insufficient”, citing a lack of clear policies or data about its emissions.
MIDEAST STOCKS Major Gulf bourses mixed in early trade | Reuters
MIDEAST STOCKS Major Gulf bourses mixed in early trade | Reuters
Major stock markets in the Gulf were mixed in early trade on Monday in the absence of fresh factors to trade on, with the Qatari index on track to end three sessions of losses.
Saudi Arabia's benchmark index (.TASI) rose 0.1%, helped by a 0.9% gain in Saudi Telecom Company (7010.SE) and a 0.2% increase in Al Rajhi Bank (1120.SE).
Direct foreign investment into Saudi Arabia rose by about 13% in the first quarter of this year, Saudi Investment Minister Khalid al-Falih said in an interview with Al Arabiya television. read more
Oil prices, a key catalyst for the Gulf's financial markets, retreated as a powerful hurricane slammed into the U.S. Gulf coast, forcing shutdowns and evacuations of hundreds of offshore oil platforms.
Brent crude rose more than 11% last week in anticipation of disruptions to oil production from Hurricane Ida. The Saudi energy index (.TENI) however traded flat.
In Abu Dhabi, the index (.ADI) eased 0.1%, hit by a 0.7% fall in Alpha Dhabi Holding (ALPHADHABI.AD).
The Abu Dhabi Securities Exchange said on Saturday it would halve its trading commissions to 0.025% from 0.05% from Sept. 1, its second commission cut this year and the third in three years. read more
Dubai's main share index (.DFMGI) fell 0.2%, weighed down by a 0.7% drop in Emirates NBD Bank (ENBD.DU) and a 0.5% decrease in blue-chip developer Emaar Properties (EMAR.DU).
The Qatari index (.QSI) added 0.2%, with sharia-compliant lender Masraf Al Rayan (MARK.QA) gaining 0.5% and petrochemical maker Industries Qatar (IQCD.QA) 0.3%.
Major stock markets in the Gulf were mixed in early trade on Monday in the absence of fresh factors to trade on, with the Qatari index on track to end three sessions of losses.
Saudi Arabia's benchmark index (.TASI) rose 0.1%, helped by a 0.9% gain in Saudi Telecom Company (7010.SE) and a 0.2% increase in Al Rajhi Bank (1120.SE).
Direct foreign investment into Saudi Arabia rose by about 13% in the first quarter of this year, Saudi Investment Minister Khalid al-Falih said in an interview with Al Arabiya television. read more
Oil prices, a key catalyst for the Gulf's financial markets, retreated as a powerful hurricane slammed into the U.S. Gulf coast, forcing shutdowns and evacuations of hundreds of offshore oil platforms.
Brent crude rose more than 11% last week in anticipation of disruptions to oil production from Hurricane Ida. The Saudi energy index (.TENI) however traded flat.
In Abu Dhabi, the index (.ADI) eased 0.1%, hit by a 0.7% fall in Alpha Dhabi Holding (ALPHADHABI.AD).
The Abu Dhabi Securities Exchange said on Saturday it would halve its trading commissions to 0.025% from 0.05% from Sept. 1, its second commission cut this year and the third in three years. read more
Dubai's main share index (.DFMGI) fell 0.2%, weighed down by a 0.7% drop in Emirates NBD Bank (ENBD.DU) and a 0.5% decrease in blue-chip developer Emaar Properties (EMAR.DU).
The Qatari index (.QSI) added 0.2%, with sharia-compliant lender Masraf Al Rayan (MARK.QA) gaining 0.5% and petrochemical maker Industries Qatar (IQCD.QA) 0.3%.
All eyes have been on oil but gas is back so who will bet on it?
All eyes have been on oil but gas is back so who will bet on it?
From the onset of the Covid-19 pandemic, the energy sector's attention has been focused on oil market turbulence and emerging green energy technology.
Another key energy source has endured a dull decade. But as it sets price records and is tangled up in geopolitics, gas is back.
US gas prices have been low for more than a decade. They crashed during the financial crisis of 2008 and, since then, the torrent of shale gas has kept them almost always below $3 per million British thermal units (Btu), the equivalent of $17 for a barrel of oil. Numerous companies began projects to export liquefied natural gas to the rest of the world to ease the surplus.
Prices elsewhere have been higher but generally restrained. Asian LNG prices, by convention mostly determined by reference to oil, dropped along with crude in late 2014 and generally hovered between $5 and $10 per million Btu.
There was a crisis over Russian supplies to Europe via Ukraine after Moscow’s annexation of Crimea in 2014, but this did not cause real shortages, unlike the cut-off of 2009.
China announced a policy to reduce pollution by switching from coal to gas, especially for home heating, and its imports of LNG and gas by pipeline from Central Asia and Russia increased.
Overall, a world which had worried about running out of gas in the early 2000s, as with oil, became accustomed to abundant, inexpensive gas as a fact of nature. The main debate has not been over price or availability but what place gas should have in the necessary transition to low-carbon energy.
From the onset of the Covid-19 pandemic, the energy sector's attention has been focused on oil market turbulence and emerging green energy technology.
Another key energy source has endured a dull decade. But as it sets price records and is tangled up in geopolitics, gas is back.
US gas prices have been low for more than a decade. They crashed during the financial crisis of 2008 and, since then, the torrent of shale gas has kept them almost always below $3 per million British thermal units (Btu), the equivalent of $17 for a barrel of oil. Numerous companies began projects to export liquefied natural gas to the rest of the world to ease the surplus.
Prices elsewhere have been higher but generally restrained. Asian LNG prices, by convention mostly determined by reference to oil, dropped along with crude in late 2014 and generally hovered between $5 and $10 per million Btu.
There was a crisis over Russian supplies to Europe via Ukraine after Moscow’s annexation of Crimea in 2014, but this did not cause real shortages, unlike the cut-off of 2009.
China announced a policy to reduce pollution by switching from coal to gas, especially for home heating, and its imports of LNG and gas by pipeline from Central Asia and Russia increased.
Overall, a world which had worried about running out of gas in the early 2000s, as with oil, became accustomed to abundant, inexpensive gas as a fact of nature. The main debate has not been over price or availability but what place gas should have in the necessary transition to low-carbon energy.
Emirates Global Aluminium Sees Profit Soar Ahead of Possible IPO - Bloomberg
Emirates Global Aluminium Sees Profit Soar Ahead of Possible IPO - Bloomberg
Emirates Global Aluminium PJSC, the Middle East’s biggest producer of the metal, posted a record profit in the first half of the year as prices soared along with those of other commodities.
The company, whose United Arab Emirates-based shareholders are considering an initial public offering, generated income of 1.74 billion dirhams ($473 million), after a loss of $57 million a year earlier. Core earnings were $950 million.
Aluminum -- a light, easily-recyclable metal used in everything from beer cans to plane parts and which may be used more often in electric vehicles -- has climbed as major economies recover from the Coronavirus pandemic. Futures in London are up almost 35% to $2,650 a ton, the highest in around a decade.
“We are bullish about prices,” EGA’s chief financial officer, Zouhir Regragui, said in an interview. The short-term outlook is positive because of the post-Covid economic bounce, while in the long run aluminum will benefit as producers manage to cut their greenhouse gas emissions, he said.
Emirates Global Aluminium PJSC, the Middle East’s biggest producer of the metal, posted a record profit in the first half of the year as prices soared along with those of other commodities.
The company, whose United Arab Emirates-based shareholders are considering an initial public offering, generated income of 1.74 billion dirhams ($473 million), after a loss of $57 million a year earlier. Core earnings were $950 million.
Aluminum -- a light, easily-recyclable metal used in everything from beer cans to plane parts and which may be used more often in electric vehicles -- has climbed as major economies recover from the Coronavirus pandemic. Futures in London are up almost 35% to $2,650 a ton, the highest in around a decade.
“We are bullish about prices,” EGA’s chief financial officer, Zouhir Regragui, said in an interview. The short-term outlook is positive because of the post-Covid economic bounce, while in the long run aluminum will benefit as producers manage to cut their greenhouse gas emissions, he said.
Outlook: #UAE stock markets to remain positive, barring virus resurgence | ZAWYA MENA Edition
Outlook: UAE stock markets to remain positive, barring virus resurgence | ZAWYA MENA Edition
Stock markets in the UAE will continue to perform well, provided there is no resurgence of coronavirus cases, Abu Dhabi-based asset management firm Chimera Capital said in a bourse filing to the Dubai Financial Market (DFM) on Monday.
Chimera had reported “growing interest” from investors looking to capitalize on the UAE economy’s strong prospects, with its S&P UAE Exchange Traded Fund (ETF) surpassing 100 million dirhams ($27.2 million) in assets under management in July 2021, barely a year since its launch.
Its UAE UCITS ETF, rolled out only in February this year, also recorded 61.8 million dirhams in AUM as of June 2021.
The Dubai Financial Market and Abu Dhabi Securities Exchange (ADX) have had positive performance in 2021, buoyed by the rise in sentiments and improving economy.
So far this year, the ADX rose 35.5 percent, while the DFM was up 12.8 percent. Trading on the ADX averaged 1.2 billion dirhams, exceeding the DFM’s 227 million dirhams.
Stock markets in the UAE will continue to perform well, provided there is no resurgence of coronavirus cases, Abu Dhabi-based asset management firm Chimera Capital said in a bourse filing to the Dubai Financial Market (DFM) on Monday.
Chimera had reported “growing interest” from investors looking to capitalize on the UAE economy’s strong prospects, with its S&P UAE Exchange Traded Fund (ETF) surpassing 100 million dirhams ($27.2 million) in assets under management in July 2021, barely a year since its launch.
Its UAE UCITS ETF, rolled out only in February this year, also recorded 61.8 million dirhams in AUM as of June 2021.
The Dubai Financial Market and Abu Dhabi Securities Exchange (ADX) have had positive performance in 2021, buoyed by the rise in sentiments and improving economy.
So far this year, the ADX rose 35.5 percent, while the DFM was up 12.8 percent. Trading on the ADX averaged 1.2 billion dirhams, exceeding the DFM’s 227 million dirhams.
Oil drops after Hurricane Ida hits U.S. Gulf rigs, refineries | Reuters
Oil drops after Hurricane Ida hits U.S. Gulf rigs, refineries | Reuters
Oil prices reversed gains on Monday, pulling back from more than three-week highs reached earlier in the session, as a powerful hurricane slammed into the U.S. Gulf coast, forcing shutdowns and evacuations of hundreds of offshore oil platforms.
Brent was down 16 cents or 0.2% at $72.54 a barrel by 0654 GMT. It rose more than 11% last week in anticipation of disruptions to oil production from Hurricane Ida.
U.S. oil was down by 49 cents or 0.7% at $68.25 a barrel, having jumped a little over 10% over last week.
The benchmarks hit highs not seen since early August, $73.69 and $69.64, respectively, earlier in the session, as Ida crossed the coast near Port Fourchon, Louisiana, a hub of the Gulf's offshore energy industry. read more
Oil prices reversed gains on Monday, pulling back from more than three-week highs reached earlier in the session, as a powerful hurricane slammed into the U.S. Gulf coast, forcing shutdowns and evacuations of hundreds of offshore oil platforms.
Brent was down 16 cents or 0.2% at $72.54 a barrel by 0654 GMT. It rose more than 11% last week in anticipation of disruptions to oil production from Hurricane Ida.
U.S. oil was down by 49 cents or 0.7% at $68.25 a barrel, having jumped a little over 10% over last week.
The benchmarks hit highs not seen since early August, $73.69 and $69.64, respectively, earlier in the session, as Ida crossed the coast near Port Fourchon, Louisiana, a hub of the Gulf's offshore energy industry. read more
Sunday, 29 August 2021
#Dubai Poised to Benefit From Cryptocurrency Growth, Bittrex Says - Bloomberg
Dubai Poised to Benefit From Cryptocurrency Growth, Bittrex Says - Bloomberg
Dubai is well-positioned to benefit from the growing cryptocurrency market in the Middle East as its regulators lead a push toward acceptance of blockchain-based technologies, according to Bittrex Global’s chief executive officer.
The United Arab Emirates and Dubai are “doing all the right things and they’re going to attract a lot of regional projects,” Stephen Stonberg, CEO of the digital assets exchange, said in an interview. “It’s a great place to set up your token project, or run a cryptocurrency exchange,” he said, helped by the region’s status as a tax haven.
Dubai, the region’s financial hub, has already taken several steps to bolster the use of blockchain within the city in recent months, and Stonberg expects Middle Eastern sovereign wealth funds to also make blockchain allocations.
In May, Dubai Airport Free Zone Authority signed an agreement with the Securities and Commodities Authority to support the regulation, offering and trading of crypto assets within the free zone. The city’s DMCC freezone opened a blockchain-based exchange for sugar trading last year and the Bitcoin Fund listed on the Nasdaq Dubai exchange in June -- the first of its kind to trade in the region.
“I think Dubai is going to do fantastically well,” as it embraces cryptocurrencies, he said, adding that Bittrex expects to have an expanded presence and more clients in the region.
Cryptocurrencies have rallied in recent weeks, with bullish voices, including Tesla Inc. boss Elon Musk and investment manager Cathie Wood, boosting sentiment. Federal Reserve chairman Jerome Powell’s dovish tone about tapering also helped ease fears within the market.
“A lot of the institutional money going into Ethereum and Bitcoin is probably really the driver for the market,” Stonberg said. “It’s not so much as retail froth.”
Dubai is well-positioned to benefit from the growing cryptocurrency market in the Middle East as its regulators lead a push toward acceptance of blockchain-based technologies, according to Bittrex Global’s chief executive officer.
The United Arab Emirates and Dubai are “doing all the right things and they’re going to attract a lot of regional projects,” Stephen Stonberg, CEO of the digital assets exchange, said in an interview. “It’s a great place to set up your token project, or run a cryptocurrency exchange,” he said, helped by the region’s status as a tax haven.
Dubai, the region’s financial hub, has already taken several steps to bolster the use of blockchain within the city in recent months, and Stonberg expects Middle Eastern sovereign wealth funds to also make blockchain allocations.
In May, Dubai Airport Free Zone Authority signed an agreement with the Securities and Commodities Authority to support the regulation, offering and trading of crypto assets within the free zone. The city’s DMCC freezone opened a blockchain-based exchange for sugar trading last year and the Bitcoin Fund listed on the Nasdaq Dubai exchange in June -- the first of its kind to trade in the region.
“I think Dubai is going to do fantastically well,” as it embraces cryptocurrencies, he said, adding that Bittrex expects to have an expanded presence and more clients in the region.
Cryptocurrencies have rallied in recent weeks, with bullish voices, including Tesla Inc. boss Elon Musk and investment manager Cathie Wood, boosting sentiment. Federal Reserve chairman Jerome Powell’s dovish tone about tapering also helped ease fears within the market.
“A lot of the institutional money going into Ethereum and Bitcoin is probably really the driver for the market,” Stonberg said. “It’s not so much as retail froth.”
#Dubai developer Limitless set to agree third debt restructuring deal | Reuters
Dubai developer Limitless set to agree third debt restructuring deal | Reuters
Dubai state-owned property developer Limitless is set to reach an agreement with creditors over some $760 million of troubled debt, documents seen by Reuters showed - its third restructuring in a decade.
Limitless, along with Nakheel, was among the biggest casualties of Dubai’s property crash and the subsequent debt crisis that began in 2009.
It plans to enter into a lock-up agreement - a precursor to a long form term sheet and definitive documentation - with an ad-hoc group of creditors by the end of this month and with remaining creditors by the end of September to restructure the debt, an overview of the plan seen by Reuters showed.
The ad-hoc group includes First Abu Dhabi Bank (FAB.AD), Dubai Islamic Bank (DISB.DU), Emirates NBD (ENBD.DU), Arab National Bank (1080.SE), and Mashreqbank (MASB.DU).
Dubai state-owned property developer Limitless is set to reach an agreement with creditors over some $760 million of troubled debt, documents seen by Reuters showed - its third restructuring in a decade.
Limitless, along with Nakheel, was among the biggest casualties of Dubai’s property crash and the subsequent debt crisis that began in 2009.
It plans to enter into a lock-up agreement - a precursor to a long form term sheet and definitive documentation - with an ad-hoc group of creditors by the end of this month and with remaining creditors by the end of September to restructure the debt, an overview of the plan seen by Reuters showed.
The ad-hoc group includes First Abu Dhabi Bank (FAB.AD), Dubai Islamic Bank (DISB.DU), Emirates NBD (ENBD.DU), Arab National Bank (1080.SE), and Mashreqbank (MASB.DU).
MIDEAST STOCKS #Saudi drives most Gulf bourses higher; Qatar dips | Reuters
MIDEAST STOCKS Saudi drives most Gulf bourses higher; Qatar dips | Reuters
Most stock markets in the Gulf ended higher on Sunday, with the Saudi index leading the gains, reflecting a positive tone following the annual central banks' symposium and a rise in oil prices.
"GCC markets should progress in positive territory this week as they react to the U.S. Federal Reserve chairman intervention at the Jackson Hole symposium on Friday," said Wael Makarem senior market strategist at Exness.
"Investors were relieved to hear that the U.S. central bank will not taper its asset purchases program soon and that interest rate hikes were not in the line of sight for the moment."
Saudi Arabia's benchmark index (.TASI) rose 0.5%, with Al Rajhi Bank (1120.SE) gaining 1.2%, while Alinma Bank (1150.SE) advanced 2.3%.
Brent crude oil futures rose $1.63, or 2.3%, to settle at $72.70 a barrel on Friday for the biggest weekly gain in more than a year as energy companies began shutting U.S. production in the Gulf of Mexico ahead of a major hurricane expected to make landfall this week. read more
In Abu Dhabi, the index (.ADI) gained 0.4%, led by a 4.9% jump in Alpha Dhabi Holding (ALPHADHABI.AD).
The Abu Dhabi Securities Exchange (ADX) said on Saturday it would halve its trading commissions to 0.025% from 0.05% from Sept. 1, the exchange's second commission cut this year and the third in three years. read more
Dubai's main share index (.DFMGI) traded flat as gains in property shares were offset by declines in financial stocks.
Blue-chip developer Emaar Properties (EMAR.DU) closed 1% higher.
Emaar properties stock price should see further gains in the coming weeks to months as the real estate market continues to improve in Dubai and elsewhere and as the economic revival remains strong, added Makarem.
The Qatari benchmark (.QSI) fell 0.2%, hit by a 0.5% fall in Qatar Islamic Bank (QISB.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) eased 0.1%, weighed down by a 0.8% fall in top lender Commercial International Bank Egypt (COMI.CA).
Most stock markets in the Gulf ended higher on Sunday, with the Saudi index leading the gains, reflecting a positive tone following the annual central banks' symposium and a rise in oil prices.
"GCC markets should progress in positive territory this week as they react to the U.S. Federal Reserve chairman intervention at the Jackson Hole symposium on Friday," said Wael Makarem senior market strategist at Exness.
"Investors were relieved to hear that the U.S. central bank will not taper its asset purchases program soon and that interest rate hikes were not in the line of sight for the moment."
Saudi Arabia's benchmark index (.TASI) rose 0.5%, with Al Rajhi Bank (1120.SE) gaining 1.2%, while Alinma Bank (1150.SE) advanced 2.3%.
Brent crude oil futures rose $1.63, or 2.3%, to settle at $72.70 a barrel on Friday for the biggest weekly gain in more than a year as energy companies began shutting U.S. production in the Gulf of Mexico ahead of a major hurricane expected to make landfall this week. read more
In Abu Dhabi, the index (.ADI) gained 0.4%, led by a 4.9% jump in Alpha Dhabi Holding (ALPHADHABI.AD).
The Abu Dhabi Securities Exchange (ADX) said on Saturday it would halve its trading commissions to 0.025% from 0.05% from Sept. 1, the exchange's second commission cut this year and the third in three years. read more
Dubai's main share index (.DFMGI) traded flat as gains in property shares were offset by declines in financial stocks.
Blue-chip developer Emaar Properties (EMAR.DU) closed 1% higher.
Emaar properties stock price should see further gains in the coming weeks to months as the real estate market continues to improve in Dubai and elsewhere and as the economic revival remains strong, added Makarem.
The Qatari benchmark (.QSI) fell 0.2%, hit by a 0.5% fall in Qatar Islamic Bank (QISB.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) eased 0.1%, weighed down by a 0.8% fall in top lender Commercial International Bank Egypt (COMI.CA).
Kuwaiti Stocks Lead Middle East Gains After Oil Rally: Inside EM - Bloomberg
Kuwaiti Stocks Lead Middle East Gains After Oil Rally: Inside EM - Bloomberg
Kuwait’s benchmark stock index traded at a record high for a fourth session after oil posted the biggest weekly gain in over a year. Equities in Saudi Arabia, Abu Dhabi and Oman also rose.
MIDDLE EASTERN MARKETS:
Kuwait’s benchmark stock index traded at a record high for a fourth session after oil posted the biggest weekly gain in over a year. Equities in Saudi Arabia, Abu Dhabi and Oman also rose.
MIDDLE EASTERN MARKETS:
- Kuwait’s Premier Market Index rises 0.5% at 11:24 a.m. local time
- Kuwait Finance House +1.2%; Zain +1%; Ahli United Bank +0.7%
- Banking shares have been leading the gauge’s 4.5% rally in August
- Abu Dhabi’s ADX General Index rises as much as 0.3%, snapping a three-day loss
- Al Waha Capital +3.9%; Aldar Properties +1.5%; Etisalat -0.9%, International Holding -0.3%
- International Holding unit Al Seer Marine Supplies & Equipment listed in Abu Dhabi on Sunday, opening at 13 dirhams before rising to as high as 15 dirhams
- Saudi Arabia’s Tadawul All Share Index climbs as much as 0.4%, driven by gains in Al Rajhi Bank and Saudi National Bank
- Dubai’s benchmark DFM General Index rises as much as 0.3% before trading little changed at 11:51a.m. in Dubai
- Qatar Exchange Index drops for a third day after reaching the highest level since August 2016 on Tuesday
- Qatar National Bank -1%; Qatar Islamic Bank -0.8%; Commercial Bank of Qatar -0.4%
- Shares in Tel Aviv rise after U.S. stocks rose on Friday over the Federal Reserve chairman’s dovish tone about tapering
#UAE banks lead GCC in Q2 banking sector profit growth | Banking – Gulf News
UAE banks lead GCC in Q2 banking sector profit growth | Banking – Gulf News
UAE banks reported the biggest increase in profits during the second quarter of 2021, registering a growth of 11.8 per cent quarter on quarter, according to a recent analysis of data from across the GCC by Kuwait-based Kamco Invest.
The second quarter data for the UAE banks showed 9 out of 16 listed banks in the UAE reported an increase in net profits.
FAB reported the biggest absolute growth in profits that reached $783.7 million in Q2-2021 as compared to $674 million n Q1-2021. ADCB and Dubai Islamic Bank followed in terms of absolute profit growth registering increases of 25.1 per cent and 19.3 per cent quarter on quarter, respectively. On the other hand, Bank of Sharjah continued to report loss during the quarter that reached $93.9 million in Q2-2021.
Kuwaiti banks reported the second-biggest quarter on quarter increase in net profits at 7.8 per cent to reach $0.7 billion in Q2-2021 after 6 out of 10 banks reported growth in profits. CBK and Burgan Bank reported the biggest quarter on quarter growth in net profits during Q2-2021.
UAE banks reported the biggest increase in profits during the second quarter of 2021, registering a growth of 11.8 per cent quarter on quarter, according to a recent analysis of data from across the GCC by Kuwait-based Kamco Invest.
The second quarter data for the UAE banks showed 9 out of 16 listed banks in the UAE reported an increase in net profits.
FAB reported the biggest absolute growth in profits that reached $783.7 million in Q2-2021 as compared to $674 million n Q1-2021. ADCB and Dubai Islamic Bank followed in terms of absolute profit growth registering increases of 25.1 per cent and 19.3 per cent quarter on quarter, respectively. On the other hand, Bank of Sharjah continued to report loss during the quarter that reached $93.9 million in Q2-2021.
Kuwaiti banks reported the second-biggest quarter on quarter increase in net profits at 7.8 per cent to reach $0.7 billion in Q2-2021 after 6 out of 10 banks reported growth in profits. CBK and Burgan Bank reported the biggest quarter on quarter growth in net profits during Q2-2021.
Foreign investment into #SaudiArabia up 13%, says minister | Reuters
Foreign investment into Saudi Arabia up 13%, says minister | Reuters
Direct foreign investment into Saudi Arabia rose by about 13% in the first quarter of this year, Saudi Investment Minister Khalid al-Falih said in an interview with Al Arabiya.
Attracting foreign investment is a core element of Saudi reforms aimed at diversifying the economy away from oil.
Direct foreign investment into Saudi Arabia rose by about 13% in the first quarter of this year, Saudi Investment Minister Khalid al-Falih said in an interview with Al Arabiya.
Attracting foreign investment is a core element of Saudi reforms aimed at diversifying the economy away from oil.
MIDEAST STOCKS #Saudi index leads most Gulf bourses higher | Reuters
MIDEAST STOCKS Saudi index leads most Gulf bourses higher | Reuters
Most stocks in the Gulf region rose in early trade on Sunday, with the Saudi index leading the way while Qatar bucked the trend with a 0.2% decline.
Saudi Arabia's benchmark index (.TASI) gained 0.3% as Al Rajhi Bank (1120.SE) rose by 0.8% and Saudi National Bank (1180.SE), the kingdom's biggest lender, adavnced by 0.3%.
Brent crude oil futures rose $1.63, or 2.3%, to settle at $72.70 a barrel on Friday for the biggest weekly gain in more than a year as energy companies began shutting U.S. production in the Gulf of Mexico ahead of a major hurricane expected to make landfall this week. read more
Moves in oil prices are a key catalyst for the Gulf region's financial markets.
The Abu Dhabi index (.ADI) added 0.1%, supported by a 3.4% rise for Alpha Dhabi Holding (ALPHADHABI.AD).
The Abu Dhabi Securities Exchange (ADX) on Saturday said it would halve its trading commission to 0.025% from 0.05% from Sept. 1, its second commission cut this year and the third in three years. read more
The main share index (.DFMGI) in Dubai, the travel and tourism hub of the Middle East, edged up 0.1%, driven by a 0.7% increase for blue-chip developer Emaar Properties (EMAR.DU).
The United Arab Emirates will resume issuing tourist visas to vaccinated travellers from Aug. 30, state news agency WAM reported on Saturday. read more
The Qatari benchmark (.QSI) fell 0.2%, pressured by a 0.8% drop for the Gulf's largest lender, Qatar National Bank (QNBK.QA).
Most stocks in the Gulf region rose in early trade on Sunday, with the Saudi index leading the way while Qatar bucked the trend with a 0.2% decline.
Saudi Arabia's benchmark index (.TASI) gained 0.3% as Al Rajhi Bank (1120.SE) rose by 0.8% and Saudi National Bank (1180.SE), the kingdom's biggest lender, adavnced by 0.3%.
Brent crude oil futures rose $1.63, or 2.3%, to settle at $72.70 a barrel on Friday for the biggest weekly gain in more than a year as energy companies began shutting U.S. production in the Gulf of Mexico ahead of a major hurricane expected to make landfall this week. read more
Moves in oil prices are a key catalyst for the Gulf region's financial markets.
The Abu Dhabi index (.ADI) added 0.1%, supported by a 3.4% rise for Alpha Dhabi Holding (ALPHADHABI.AD).
The Abu Dhabi Securities Exchange (ADX) on Saturday said it would halve its trading commission to 0.025% from 0.05% from Sept. 1, its second commission cut this year and the third in three years. read more
The main share index (.DFMGI) in Dubai, the travel and tourism hub of the Middle East, edged up 0.1%, driven by a 0.7% increase for blue-chip developer Emaar Properties (EMAR.DU).
The United Arab Emirates will resume issuing tourist visas to vaccinated travellers from Aug. 30, state news agency WAM reported on Saturday. read more
The Qatari benchmark (.QSI) fell 0.2%, pressured by a 0.8% drop for the Gulf's largest lender, Qatar National Bank (QNBK.QA).
#UAE Opens Up Travel to All Vaccinated People, Boosting Tourism - Bloomberg
UAE Opens Up Travel to All Vaccinated People, Boosting Tourism - Bloomberg
The United Arab Emirates will open up tourist visa applications to everyone who has been vaccinated with one of the shots approved by the World Health Organization, a potential boost to the country’s key tourism sector.
The decision applies to citizens of all countries, including those arriving from previously banned nations, state-run WAM reported late on Saturday. The move is part of the country’s strategy to support “national efforts to achieve sustainable recovery and economic growth,” the news agency said.
The new rules go into effect on August 30. Passengers arriving on tourist visas must register their vaccination status on the government’s health app and undergo rapid testing at the airport, according to WAM.
The United Arab Emirates will open up tourist visa applications to everyone who has been vaccinated with one of the shots approved by the World Health Organization, a potential boost to the country’s key tourism sector.
The decision applies to citizens of all countries, including those arriving from previously banned nations, state-run WAM reported late on Saturday. The move is part of the country’s strategy to support “national efforts to achieve sustainable recovery and economic growth,” the news agency said.
The new rules go into effect on August 30. Passengers arriving on tourist visas must register their vaccination status on the government’s health app and undergo rapid testing at the airport, according to WAM.
#Dubai and #AbuDhabi bourses to extend trading hours from October | ZAWYA MENA Edition
Dubai and Abu Dhabi bourses to extend trading hours from October | ZAWYA MENA Edition
The Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX) will both extend its trading hours by one hour starting 3 October 2021, the exchanges said in separate statements on Saturday.
The new initiative is expected to attract more investors as well as increase liquidity in the market.
Hassan Al Serkal, CEO of the DFM said: “The new initiative will further strengthen the leading position of the DFM as a main gateway for investments and attract wider and more diversified categories of investors, especially the international investors who are constantly showing great interest in our market."
“The trading hours’ extension will provide investors with more flexibility and larger time span to accomplish their investment activities on the market,” he added.
According to a statement from the exchange, the DFM has an investor base covering 207 countries. International investors account for 48.2 percent of its trading activities.
The ADX said it will reduce trading fee to 0.025 percent from 0.05 percent starting from September 1, the bourse's second commission cut this year. Its trading hours will also be extended by one hour starting October 3, with the market opening at 10 a.m. and closing at 3 p.m.
The Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX) will both extend its trading hours by one hour starting 3 October 2021, the exchanges said in separate statements on Saturday.
The new initiative is expected to attract more investors as well as increase liquidity in the market.
Hassan Al Serkal, CEO of the DFM said: “The new initiative will further strengthen the leading position of the DFM as a main gateway for investments and attract wider and more diversified categories of investors, especially the international investors who are constantly showing great interest in our market."
“The trading hours’ extension will provide investors with more flexibility and larger time span to accomplish their investment activities on the market,” he added.
According to a statement from the exchange, the DFM has an investor base covering 207 countries. International investors account for 48.2 percent of its trading activities.
The ADX said it will reduce trading fee to 0.025 percent from 0.05 percent starting from September 1, the bourse's second commission cut this year. Its trading hours will also be extended by one hour starting October 3, with the market opening at 10 a.m. and closing at 3 p.m.
OPEC+ could reconsider output increase, says Kuwaiti oil minister | Reuters
OPEC+ could reconsider output increase, says Kuwaiti oil minister | Reuters
The increase in oil output agreed last month by OPEC+ nations could be reconsidered at its next meeting on Sept. 1, Kuwait's oil minister said on Sunday.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, collectively known as OPEC+, will meet on Wednesday to discuss the previously agreed increase of 400,000 barrels per day (bpd) for the next several months.
"The markets are slowing. Since COVID-19 has begun its fourth wave in some areas, we must be careful and reconsider this increase. There may be a halt to the 400,000 (bpd) increase," Mohammad Abdulatif al-Fares told Reuters on the sildelines of a government-sponsored event in Kuwait City.
Economies of East Asian countries and China remain affected by COVID-19 and caution must be exercised, Fares added.
U.S. President Joe Biden's administration has urged OPEC and its allies to boost oil output to tackle rising gasoline prices that it views as a threat to the global economic recovery. read more
Asked about the U.S. call, Fares said OPEC+ members had different views on the matter.
"There are meetings with OPEC countries, especially the Gulf Cooperation Council countries, and so far there are different views on how to handle this issue," Fares said.
OPEC+ last year implemented a record output cut of 10 million bpd, equating to about 10% of world demand, when energy demand plunged because of travel restrictions and national lockdowns to counter the spread of COVID-19.
The increase in oil output agreed last month by OPEC+ nations could be reconsidered at its next meeting on Sept. 1, Kuwait's oil minister said on Sunday.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, collectively known as OPEC+, will meet on Wednesday to discuss the previously agreed increase of 400,000 barrels per day (bpd) for the next several months.
"The markets are slowing. Since COVID-19 has begun its fourth wave in some areas, we must be careful and reconsider this increase. There may be a halt to the 400,000 (bpd) increase," Mohammad Abdulatif al-Fares told Reuters on the sildelines of a government-sponsored event in Kuwait City.
Economies of East Asian countries and China remain affected by COVID-19 and caution must be exercised, Fares added.
U.S. President Joe Biden's administration has urged OPEC and its allies to boost oil output to tackle rising gasoline prices that it views as a threat to the global economic recovery. read more
Asked about the U.S. call, Fares said OPEC+ members had different views on the matter.
"There are meetings with OPEC countries, especially the Gulf Cooperation Council countries, and so far there are different views on how to handle this issue," Fares said.
OPEC+ last year implemented a record output cut of 10 million bpd, equating to about 10% of world demand, when energy demand plunged because of travel restrictions and national lockdowns to counter the spread of COVID-19.
Saturday, 28 August 2021
Oil Posts Biggest Weekly Gain in More Than a Year Ahead of Ida - Bloomberg
Oil Posts Biggest Weekly Gain in More Than a Year Ahead of Ida - Bloomberg
PRICES
Futures in New York rose 2% on Friday to post the biggest weekly gain in more than a year. Oil producers in the U.S. Gulf of Mexico have begun shutting production ahead of Hurricane Ida, which may make landfall in the New Orleans area in the next few days as a Category 3 hurricane.
Meanwhile, Federal Reserve Chair Jerome Powell said the central bank could begin reducing its monthly bond purchases this year, though it won’t be in a hurry to begin raising interest rates thereafter. The central bank had hinted at such asset tapering plans weeks ago.
“Clearly, the hurricane is what the market is focusing on now, at least in the short-term,” said Andrew Lebow, senior partner at Commodity Research Group. “We are going to be losing supply from refiners and some demand.”
Oil has had a volatile August with the fast-spreading delta variant of the virus leading to renewed restrictions on mobility and clouding the outlook for fuel demand. OPEC+ is scheduled to meet next week, and market-watchers surveyed by Bloomberg expect it will ratify another monthly output increase as it revives supplies halted during the pandemic.
- West Texas Intermediate for October delivery rose $1.32 to settle at $68.74 a barrel in New York
- Brent for October settlement gained $1.63 to end the session at $72.70 a barrel
Futures in New York rose 2% on Friday to post the biggest weekly gain in more than a year. Oil producers in the U.S. Gulf of Mexico have begun shutting production ahead of Hurricane Ida, which may make landfall in the New Orleans area in the next few days as a Category 3 hurricane.
Meanwhile, Federal Reserve Chair Jerome Powell said the central bank could begin reducing its monthly bond purchases this year, though it won’t be in a hurry to begin raising interest rates thereafter. The central bank had hinted at such asset tapering plans weeks ago.
“Clearly, the hurricane is what the market is focusing on now, at least in the short-term,” said Andrew Lebow, senior partner at Commodity Research Group. “We are going to be losing supply from refiners and some demand.”
Oil has had a volatile August with the fast-spreading delta variant of the virus leading to renewed restrictions on mobility and clouding the outlook for fuel demand. OPEC+ is scheduled to meet next week, and market-watchers surveyed by Bloomberg expect it will ratify another monthly output increase as it revives supplies halted during the pandemic.
#AbuDhabi bourse to cut trading commissions by 50%, extend trading hours | Reuters
Abu Dhabi bourse to cut trading commissions by 50%, extend trading hours | Reuters
The Abu Dhabi Securities Exchange (ADX) said on Saturday it has cut its trading commissions by 50% and will extend its trading hours by one hour from Oct. 3.
The trading fees will be reduced to 0.025% from 0.05% from Sept. 1, the exchange's second commission cut this year and the third in three years, it said in a statement.
The trading hours extension should bring ADX into line with the operating hours of many exchanges globally, it said, part of moves to bolster market activity and to deepen market liquidity.
The Abu Dhabi Securities Exchange (ADX) said on Saturday it has cut its trading commissions by 50% and will extend its trading hours by one hour from Oct. 3.
The trading fees will be reduced to 0.025% from 0.05% from Sept. 1, the exchange's second commission cut this year and the third in three years, it said in a statement.
The trading hours extension should bring ADX into line with the operating hours of many exchanges globally, it said, part of moves to bolster market activity and to deepen market liquidity.
Oil posts biggest weekly gains in over a year ahead of Hurricane Ida | Reuters
Oil posts biggest weekly gains in over a year ahead of Hurricane Ida | Reuters
Oil prices rose 2% on Friday, posting their biggest weekly gains in over a year, as energy firms began shutting U.S. production in the Gulf of Mexico ahead of a major hurricane expected to hit early next week.
Brent futures rose $1.63, or 2.3%, to settle at $72.70 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.32, or 2.0%, to settle at $68.74.
That was the highest close for Brent since Aug. 2 and for WTI since Aug. 12.
For the week, Brent gained over 11% and WTI rose more than 10%, which was the biggest weekly percentage gains for both since June 2020.
"Energy traders are pushing crude prices higher in anticipation of disruptions in output in the Gulf of Mexico and on growing expectations OPEC+ might resist raising output given the recent Delta variant impact over crude demand," Edward Moya, senior market analyst at OANDA, said.
Oil prices rose 2% on Friday, posting their biggest weekly gains in over a year, as energy firms began shutting U.S. production in the Gulf of Mexico ahead of a major hurricane expected to hit early next week.
Brent futures rose $1.63, or 2.3%, to settle at $72.70 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.32, or 2.0%, to settle at $68.74.
That was the highest close for Brent since Aug. 2 and for WTI since Aug. 12.
For the week, Brent gained over 11% and WTI rose more than 10%, which was the biggest weekly percentage gains for both since June 2020.
"Energy traders are pushing crude prices higher in anticipation of disruptions in output in the Gulf of Mexico and on growing expectations OPEC+ might resist raising output given the recent Delta variant impact over crude demand," Edward Moya, senior market analyst at OANDA, said.
Friday, 27 August 2021
OPEC+ Seen Sticking to Planned Output Hike as Oil Prices Rebound - Bloomberg
OPEC+ Seen Sticking to Planned Output Hike as Oil Prices Rebound - Bloomberg
OPEC and its allies are expected to press on with their planned revival of oil production when they meet next week, as prices bounce back from their August stumble.
The coalition led by Saudi Arabia and Russia is gradually restoring the vast amount of crude production halted during the pandemic, and will probably ratify the next monthly installment when it gathers on Sept. 1, according to a Bloomberg survey of traders and analysts. Several OPEC+ delegates privately predict the same outcome.
Crude markets faltered earlier this month as the resurgent pandemic threatened demand in China and the U.S. But prices have since recovered after fuel use proved resilient to the latest coronavirus wave, giving the Organization of Petroleum Exporting Countries and its partners more breathing space.
“Uncertainties over the world economy and the growth recovery in China have largely peeled away,” said Ed Morse, head of commodities research at Citigroup Inc. “There’s good evidence that the bottom in oil prices was temporary and overdone, and if the recovery continues, OPEC+ would likely stick to the plan.”
OPEC and its allies are expected to press on with their planned revival of oil production when they meet next week, as prices bounce back from their August stumble.
The coalition led by Saudi Arabia and Russia is gradually restoring the vast amount of crude production halted during the pandemic, and will probably ratify the next monthly installment when it gathers on Sept. 1, according to a Bloomberg survey of traders and analysts. Several OPEC+ delegates privately predict the same outcome.
Crude markets faltered earlier this month as the resurgent pandemic threatened demand in China and the U.S. But prices have since recovered after fuel use proved resilient to the latest coronavirus wave, giving the Organization of Petroleum Exporting Countries and its partners more breathing space.
“Uncertainties over the world economy and the growth recovery in China have largely peeled away,” said Ed Morse, head of commodities research at Citigroup Inc. “There’s good evidence that the bottom in oil prices was temporary and overdone, and if the recovery continues, OPEC+ would likely stick to the plan.”
Oil heads for biggest weekly gains in over a year ahead of Storm Ida | Reuters
Oil heads for biggest weekly gains in over a year ahead of Storm Ida | Reuters
Oil prices rose more than 2% on Friday and were on track for their biggest weekly gains in over a year as energy firms began shutting production in the U.S. Gulf of Mexico ahead of a major hurricane expected to hit early next week.
Brent futures rose $1.56, or 2.2%, to $72.63 a barrel by 11:51 a.m. EDT (1551 GMT), while U.S. West Texas Intermediate (WTI) crude rose $1.48, or 2.2%, to $68.90.
That puts Brent on track for its highest close since Aug. 2 and WTI on track for its highest close since Aug. 12.
For the week, both benchmarks were up about 11%, which would be their biggest weekly percentage gains since June 2020.
Oil prices rose more than 2% on Friday and were on track for their biggest weekly gains in over a year as energy firms began shutting production in the U.S. Gulf of Mexico ahead of a major hurricane expected to hit early next week.
Brent futures rose $1.56, or 2.2%, to $72.63 a barrel by 11:51 a.m. EDT (1551 GMT), while U.S. West Texas Intermediate (WTI) crude rose $1.48, or 2.2%, to $68.90.
That puts Brent on track for its highest close since Aug. 2 and WTI on track for its highest close since Aug. 12.
For the week, both benchmarks were up about 11%, which would be their biggest weekly percentage gains since June 2020.
Oil rises as storm approaches Gulf of Mexico production hub | Reuters
Oil rises as storm approaches Gulf of Mexico production hub | Reuters
Oil prices rose on Friday, on track to post big gains for the week, on worries about supply disruptions as energy companies began shutting production in the Gulf of Mexico ahead of a possible hurricane forecast to hit on the weekend.
Brent crude futures rose 72 cents, or 1%, to $71.79 a barrel at 0855 GMT. U.S. West Texas Intermediate (WTI) crude futures climbed 80 cents, or 1.2%, to $68.22 a barrel.
For the week, Brent is on track for a rise of about 10% this week, its biggest weekly jump since June 2020. WTI is headed for a weekly gain of more than 9%, which would be its strongest rise since October 2020.
"Energy traders are pushing crude prices higher in anticipation of disruptions in output in the Gulf of Mexico and on growing expectations OPEC+ might resist raising output given the recent Delta variant impact over crude demand," Edward Moya, senior market analyst at OANDA told Reuters.
Oil prices rose on Friday, on track to post big gains for the week, on worries about supply disruptions as energy companies began shutting production in the Gulf of Mexico ahead of a possible hurricane forecast to hit on the weekend.
Brent crude futures rose 72 cents, or 1%, to $71.79 a barrel at 0855 GMT. U.S. West Texas Intermediate (WTI) crude futures climbed 80 cents, or 1.2%, to $68.22 a barrel.
For the week, Brent is on track for a rise of about 10% this week, its biggest weekly jump since June 2020. WTI is headed for a weekly gain of more than 9%, which would be its strongest rise since October 2020.
"Energy traders are pushing crude prices higher in anticipation of disruptions in output in the Gulf of Mexico and on growing expectations OPEC+ might resist raising output given the recent Delta variant impact over crude demand," Edward Moya, senior market analyst at OANDA told Reuters.
Nigerian Oil Giant Considers IPO After First Profit in 44 Years - Bloomberg
Nigerian Oil Giant Considers IPO After First Profit in 44 Years - Bloomberg
Nigeria’s state oil company is considering an initial share sale after posting the first profit in its 44-year existence.
Legislation signed by President Muhammadu Buhari this month enables the Nigerian National Petroleum Corp. to offer shares to the public, Managing Director Mele Kyari said at a briefing Thursday in the capital, Abuja. A listing would draw on the experience of Saudi Aramco, the Saudi Arabian oil giant that listed in 2019, he said.
“There is no date on it, but there is a possibility of doing this,” Kyari said.
NNPC reported net income of 287 billion naira ($698 million) in 2020, compared with losses of 1.7 billion naira in 2019 and 803 billion naira the year before. The Abuja-based company, which released audited results for the first time two years ago, has for years operated under a cloak of secrecy often mired by allegations of corruption.
“Obviously because you have made profit today doesn’t mean you are ready for IPO,” Kyari said. “It is a very, very long, tedious process.”
Buhari became president of Africa’s biggest oil producer in 2015 with a pledge to improve transparency in government corporations, including the NNPC. Under the Petroleum Industry Act he approved on Aug. 16, the NNPC will be registered as a commercially focused entity.
The new legislation “specifies that the company pay its fair share of royalties, fees, rents, taxes and other payments due to the government, and that it should pay out the bulk of its profits as dividends after retaining 25% for reinvestment,” accounting firm KPMG stated in a report published last month.
The Nigerian Stock Exchange has a market capitalization of 20.6 trillion naira ($50 billion). The largest IPO on the bourse to date was Guaranty Trust Bank Plc’s $824 million listing in 2007, according to data compiled by Bloomberg.
Nigeria’s state oil company is considering an initial share sale after posting the first profit in its 44-year existence.
Legislation signed by President Muhammadu Buhari this month enables the Nigerian National Petroleum Corp. to offer shares to the public, Managing Director Mele Kyari said at a briefing Thursday in the capital, Abuja. A listing would draw on the experience of Saudi Aramco, the Saudi Arabian oil giant that listed in 2019, he said.
“There is no date on it, but there is a possibility of doing this,” Kyari said.
NNPC reported net income of 287 billion naira ($698 million) in 2020, compared with losses of 1.7 billion naira in 2019 and 803 billion naira the year before. The Abuja-based company, which released audited results for the first time two years ago, has for years operated under a cloak of secrecy often mired by allegations of corruption.
“Obviously because you have made profit today doesn’t mean you are ready for IPO,” Kyari said. “It is a very, very long, tedious process.”
Buhari became president of Africa’s biggest oil producer in 2015 with a pledge to improve transparency in government corporations, including the NNPC. Under the Petroleum Industry Act he approved on Aug. 16, the NNPC will be registered as a commercially focused entity.
The new legislation “specifies that the company pay its fair share of royalties, fees, rents, taxes and other payments due to the government, and that it should pay out the bulk of its profits as dividends after retaining 25% for reinvestment,” accounting firm KPMG stated in a report published last month.
The Nigerian Stock Exchange has a market capitalization of 20.6 trillion naira ($50 billion). The largest IPO on the bourse to date was Guaranty Trust Bank Plc’s $824 million listing in 2007, according to data compiled by Bloomberg.
Expecting oil trade boom, #Fujairah Oil Terminal invests in VLCC project | Reuters
Expecting oil trade boom, Fujairah Oil Terminal invests in VLCC project | Reuters
The Fujairah Oil Terminal is investing an estimated $45 million to upgrade the infrastructure at its storage facilities, betting on a surge in crude trading and storage demand at the United Arab Emirates oil hub, the company's chairman told Reuters.
FOT's expansion, financed by a new $280 million debt facility, will connect its terminal to the Port of Fujairah's very large crude carrier (VLCC) loading facility and the Abu Dhabi Crude Oil Pipeline (ADCOP) pipeline, said Steve Bickerton, senior managing director at Prostar Capital and chairman of FOT.
"That's a game changer because it gives us access to customers who want to be moving crude oil through VLCCs and it gives our customers direct access to the ADCOP, which brings Abu Dhabi's Murban Crude into Fujairah," said Bickerton.
The project is expected to be completed by the end of next year, Bickerton said.
The Fujairah Oil Terminal is investing an estimated $45 million to upgrade the infrastructure at its storage facilities, betting on a surge in crude trading and storage demand at the United Arab Emirates oil hub, the company's chairman told Reuters.
FOT's expansion, financed by a new $280 million debt facility, will connect its terminal to the Port of Fujairah's very large crude carrier (VLCC) loading facility and the Abu Dhabi Crude Oil Pipeline (ADCOP) pipeline, said Steve Bickerton, senior managing director at Prostar Capital and chairman of FOT.
"That's a game changer because it gives us access to customers who want to be moving crude oil through VLCCs and it gives our customers direct access to the ADCOP, which brings Abu Dhabi's Murban Crude into Fujairah," said Bickerton.
The project is expected to be completed by the end of next year, Bickerton said.
Oil jumps as storm approaches Gulf of Mexico production hub | Reuters
Oil jumps as storm approaches Gulf of Mexico production hub | Reuters
Oil prices rose on Friday, on track to post big gains for the week, on worries about supply disruptions as energy companies began shutting in production in the Gulf of Mexico ahead of a potential hurricane forecast to hit on the weekend.
"Energy traders are pushing crude prices higher in anticipation of disruptions in output in the Gulf of Mexico and on growing expectations OPEC+ might resist raising output given the recent Delta variant impact over crude demand," Edward Moya, senior market analyst at OANDA told Reuters.
Brent crude futures rose 98 cents, or 1.4%, to $72.05 a barrel at 0542 GMT, after falling 1.6% on Thursday.
U.S. West Texas Intermediate (WTI) crude futures climbed 93 cents, or 1.4%, to $68.35 a barrel, clawing back a 1.4% loss on Thursday.
For the week, Brent is on track for a rise of nearly 11% this week, its biggest weekly jump since June 2020. WTI is headed for a weekly gain of nearly 10%, which would be its strongest rise since August 2020.
Oil prices rose on Friday, on track to post big gains for the week, on worries about supply disruptions as energy companies began shutting in production in the Gulf of Mexico ahead of a potential hurricane forecast to hit on the weekend.
"Energy traders are pushing crude prices higher in anticipation of disruptions in output in the Gulf of Mexico and on growing expectations OPEC+ might resist raising output given the recent Delta variant impact over crude demand," Edward Moya, senior market analyst at OANDA told Reuters.
Brent crude futures rose 98 cents, or 1.4%, to $72.05 a barrel at 0542 GMT, after falling 1.6% on Thursday.
U.S. West Texas Intermediate (WTI) crude futures climbed 93 cents, or 1.4%, to $68.35 a barrel, clawing back a 1.4% loss on Thursday.
For the week, Brent is on track for a rise of nearly 11% this week, its biggest weekly jump since June 2020. WTI is headed for a weekly gain of nearly 10%, which would be its strongest rise since August 2020.
Thursday, 26 August 2021
Oil rally falters on pandemic surge, renewed Mexico supply | Reuters
Oil rally falters on pandemic surge, renewed Mexico supply | Reuters
Oil settled lower on Thursday, snapping a three-day rally on renewed concerns over demand due to rising COVID-19 infections and as Mexico restored some output after a fire disrupted supplies.
Losses were limited by the potential for other supply interruptions. Energy companies prepared for the possibility of a severe storm hitting the U.S. Gulf Coast this weekend.
Brent crude settled down $1.18, or 1.6%, at $71.07 a barrel. U.S. West Texas Intermediate oil settled down 94 cents, or 1.4% at 67.42 a barrel.
Fresh COVID-19 outbreaks fueled by the Delta variant raised concerns about the strength of the economic recovery globally. read more
Oil settled lower on Thursday, snapping a three-day rally on renewed concerns over demand due to rising COVID-19 infections and as Mexico restored some output after a fire disrupted supplies.
Losses were limited by the potential for other supply interruptions. Energy companies prepared for the possibility of a severe storm hitting the U.S. Gulf Coast this weekend.
Brent crude settled down $1.18, or 1.6%, at $71.07 a barrel. U.S. West Texas Intermediate oil settled down 94 cents, or 1.4% at 67.42 a barrel.
Fresh COVID-19 outbreaks fueled by the Delta variant raised concerns about the strength of the economic recovery globally. read more
‘We need jobs, we need a strong economy’: Covid and Biden allay Middle East tensions | Financial Times
‘We need jobs, we need a strong economy’: Covid and Biden allay Middle East tensions | Financial Times
Secret talks between longtime foes. Letters exchanged between leaders who have been adversaries for years. Television networks typically critical of opposing regimes now moderating their language.
All have fed into a mood of de-escalation taking hold in the capitals of some of the Middle East’s perennially competing powers — one that would have been unimaginable 18 months ago in a region blighted by rivalries and sectarian divisions.
Arab officials put the tentative trend down to the confluence of the coronavirus pandemic, its devastating economic impact and the election of Joe Biden as US president. Together, these have combined to push regional leaders to recalibrate their foreign policies.
“Everybody is fed up with how complicated things have been. And don’t underestimate the economic effect of Covid and saying ‘look, we will not be able to go forward unless we stabilise things politically’,” said a senior Arab official. “We need jobs, we need a strong economy — we can’t do that if we are not talking to each other.”
Diplomats and analysts caution that it is a cold peace; a pragmatic shift after the tumultuous period of Donald Trump’s presidency, when his hostility towards Iran exacerbated regional tensions. They add that it could easily be derailed.
MIDEAST STOCKS Major Gulf bourses fall on virus worries | Reuters
MIDEAST STOCKS Major Gulf bourses fall on virus worries | Reuters
Major stock markets in the Gulf ended lower on Thursday, with the Saudi index registering a second weekly loss, as Asian stocks fell on worries over rising cases of the Delta variant of the coronavirus.
Fresh COVID-19 outbreaks fuelled by the Delta variant are raising concerns about the strength of the economic recovery globally. read more
Saudi Arabia's benchmark index (.TASI) fell 0.3%, hit by a 1.3% fall in Al Rajhi Bank (1120.SE) and a 1.7% decline in Saudi Arabian Mining Company (1211.SE).
In the kingdom, stocks were also pressured by declining oil prices.
Brent crude was down 71 cents, or 1%, at $71.54 a barrel by 0939 GMT, as renewed concerns about demand cut short a three-day rally, and as Mexico restored some oil production.
In Abu Dhabi, the index (.ADI) retreated 0.5%, dragged down by a 1.2% drop in Emirates Telecommunications Group (ETISALAT.AD) and a 1.6% decrease in Alpha Dhabi Holding (ALPHADHABI.AD).
"Markets are holding their breath in the wake of the U.S. Federal Reserve symposium. The president of the Federal Reserve is poised to speak on Friday, dropping a hint on when the asset purchasing program will be downsized," said Daniel Takieddine, senior market analyst at FXPrimus.
Later in the day, U.S. GDP figures are expected to confirm the direction of the global economy. The output of the world's biggest economy is forecast to be higher for the second quarter, Takieddine said.
Dubai's main share index (.DFMGI) edged down 0.1%, hit by a 0.5% fall in blue-chip developer Emaar Properties (EMAR.DU).
The Qatari benchmark (.QSI) lost 0.3%, with petrochemical firm Industries Qatar (IQCD.QA) sliding 2.3%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 0.6%, led by a 10% surge in Misr Fertilizers (MFPC.CA), which reported a sharp rise in first-half consolidated net profit.
Major stock markets in the Gulf ended lower on Thursday, with the Saudi index registering a second weekly loss, as Asian stocks fell on worries over rising cases of the Delta variant of the coronavirus.
Fresh COVID-19 outbreaks fuelled by the Delta variant are raising concerns about the strength of the economic recovery globally. read more
Saudi Arabia's benchmark index (.TASI) fell 0.3%, hit by a 1.3% fall in Al Rajhi Bank (1120.SE) and a 1.7% decline in Saudi Arabian Mining Company (1211.SE).
In the kingdom, stocks were also pressured by declining oil prices.
Brent crude was down 71 cents, or 1%, at $71.54 a barrel by 0939 GMT, as renewed concerns about demand cut short a three-day rally, and as Mexico restored some oil production.
In Abu Dhabi, the index (.ADI) retreated 0.5%, dragged down by a 1.2% drop in Emirates Telecommunications Group (ETISALAT.AD) and a 1.6% decrease in Alpha Dhabi Holding (ALPHADHABI.AD).
"Markets are holding their breath in the wake of the U.S. Federal Reserve symposium. The president of the Federal Reserve is poised to speak on Friday, dropping a hint on when the asset purchasing program will be downsized," said Daniel Takieddine, senior market analyst at FXPrimus.
Later in the day, U.S. GDP figures are expected to confirm the direction of the global economy. The output of the world's biggest economy is forecast to be higher for the second quarter, Takieddine said.
Dubai's main share index (.DFMGI) edged down 0.1%, hit by a 0.5% fall in blue-chip developer Emaar Properties (EMAR.DU).
The Qatari benchmark (.QSI) lost 0.3%, with petrochemical firm Industries Qatar (IQCD.QA) sliding 2.3%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 0.6%, led by a 10% surge in Misr Fertilizers (MFPC.CA), which reported a sharp rise in first-half consolidated net profit.
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