U.S. oil prices slump over 5% on vaccine efficacy worries | Reuters
Oil prices tumbled on Tuesday, with U.S. crude futures falling by more than 5%, after Moderna's chief cast doubt on the efficacy of COVID-19 vaccines against the Omicron coronavirus variant, spooking financial markets and heightening worries about oil demand.
The head of drugmaker Moderna Inc (MRNA.O) told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been against the Delta variant. read more
Brent crude futures fell $2.87, or 3.9%, to settle at $70.57 a barrel, after hitting an intraday low of $70.22, their lowest since August.
U.S. West Texas Intermediate (WTI) crude futures ended $3.77, or 5.4%, lower at $66.18 a barrel. The benchmark dropped to a session low of $64.43, also its lowest since August.
This month, oil prices have dropped by the most since March 2020, the start of widespread lockdowns because of the pandemic. Brent fell this month by 16.4%, while WTI fell 20.8%.
Tuesday, 30 November 2021
OPEC+ Gets Warnings as Closely Watched Oil Grade Collapses - Bloomberg
OPEC+ Gets Warnings as Closely Watched Oil Grade Collapses - Bloomberg
The premium commanded by one of the Middle East’s most closely watched oil grades collapsed on Monday in a warning sign just days before the monthly OPEC+ meeting on supply.
Oman crude for January loading fell to a premium of about 60 cents a barrel over the regional benchmark on the Dubai Mercantile Exchange, Bloomberg calculations show. That’s down from $2.20 on Friday and more than $3 early last week. Trading volumes were lower than usual, according to DME data, with the contract’s expiry approaching.
Oman oil is a widely-referenced proxy for Middle East sales and Asian demand as it’s accepted by refineries in China, Japan, South Korea and Singapore.
The plunge is likely to catch the attention of OPEC+, which will decide on output levels for January on Thursday. It could give the cartel another reason to press the pause button on restoring supply as it comes on top of the new omicron virus variant and the U.S.-led coordinated release from national reserves.
The premium commanded by one of the Middle East’s most closely watched oil grades collapsed on Monday in a warning sign just days before the monthly OPEC+ meeting on supply.
Oman crude for January loading fell to a premium of about 60 cents a barrel over the regional benchmark on the Dubai Mercantile Exchange, Bloomberg calculations show. That’s down from $2.20 on Friday and more than $3 early last week. Trading volumes were lower than usual, according to DME data, with the contract’s expiry approaching.
Oman oil is a widely-referenced proxy for Middle East sales and Asian demand as it’s accepted by refineries in China, Japan, South Korea and Singapore.
The plunge is likely to catch the attention of OPEC+, which will decide on output levels for January on Thursday. It could give the cartel another reason to press the pause button on restoring supply as it comes on top of the new omicron virus variant and the U.S.-led coordinated release from national reserves.
Oil falls on vaccine efficacy worries; WTI down over 6% | Reuters
Oil falls on vaccine efficacy worries; WTI down over 6% | Reuters
Oil prices tumbled on Tuesday, with U.S. crude futures falling by more than 6%, after Moderna's chief cast doubt on the efficacy of COVID-19 vaccines against the Omicron coronavirus variant, spooking financial markets and heightening worries about oil demand.
The head of drugmaker Moderna Inc (MRNA.O) told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been against the Delta variant. read more
Brent crude futures fell $2.95, or 4%, to $70.49 a barrel by 12:12 p.m. EST (1712 GMT), after hitting an intraday low of $70.22, their lowest since August.
U.S. West Texas Intermediate (WTI) crude futures fell $4.30, or 6.2%, to $65.65 a barrel. The benchmark dropped to a session low of $65.23, also its lowest since August.
"The threat to oil demand is genuine," said Louise Dickson, senior oil markets analyst at Rystad Energy. "Another wave of lockdowns could result in up to 3 million bpd (barrels per day) of oil demand lost in the first quarter of 2022 as governments prioritize health safety over reopening plans, of which there is already telltale evidence, from Australia delaying its reopening to Japan banning foreign visitors."
Oil prices tumbled on Tuesday, with U.S. crude futures falling by more than 6%, after Moderna's chief cast doubt on the efficacy of COVID-19 vaccines against the Omicron coronavirus variant, spooking financial markets and heightening worries about oil demand.
The head of drugmaker Moderna Inc (MRNA.O) told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been against the Delta variant. read more
Brent crude futures fell $2.95, or 4%, to $70.49 a barrel by 12:12 p.m. EST (1712 GMT), after hitting an intraday low of $70.22, their lowest since August.
U.S. West Texas Intermediate (WTI) crude futures fell $4.30, or 6.2%, to $65.65 a barrel. The benchmark dropped to a session low of $65.23, also its lowest since August.
"The threat to oil demand is genuine," said Louise Dickson, senior oil markets analyst at Rystad Energy. "Another wave of lockdowns could result in up to 3 million bpd (barrels per day) of oil demand lost in the first quarter of 2022 as governments prioritize health safety over reopening plans, of which there is already telltale evidence, from Australia delaying its reopening to Japan banning foreign visitors."
Oil bound for gains as OPEC+ guards supply, but virus threat looms: Reuters poll | Reuters
Oil bound for gains as OPEC+ guards supply, but virus threat looms: Reuters poll | Reuters
Oil prices will stay elevated into next year as OPEC+ keeps a tight leash on supply despite U.S.-led strategic crude releases, a Reuters poll showed on Tuesday, but a COVID-19 resurgence fuelled by the Omicron variant could loom large over the outlook.
A survey of 39 economists and analysts - kicked off before Omicron grabbed headlines-- forecast Brent crude to average $71.25 a barrel in 2021, up from the $70.89 consensus in October and the $70.57 average this year. The 2022 Brent outlook was raised to $75.33 from $74.04.
This is the highest projection this year for the benchmark.
"We expect that OPEC+ will remain cautious in adding barrels, but does not want oil prices to move past $80 for any sustained period of time," said John Paisie, president of Stratas Advisors.
Oil prices will stay elevated into next year as OPEC+ keeps a tight leash on supply despite U.S.-led strategic crude releases, a Reuters poll showed on Tuesday, but a COVID-19 resurgence fuelled by the Omicron variant could loom large over the outlook.
A survey of 39 economists and analysts - kicked off before Omicron grabbed headlines-- forecast Brent crude to average $71.25 a barrel in 2021, up from the $70.89 consensus in October and the $70.57 average this year. The 2022 Brent outlook was raised to $75.33 from $74.04.
This is the highest projection this year for the benchmark.
"We expect that OPEC+ will remain cautious in adding barrels, but does not want oil prices to move past $80 for any sustained period of time," said John Paisie, president of Stratas Advisors.
#Dubai government considering Emirates IPO - airline president | Reuters
Dubai government considering Emirates IPO - airline president | Reuters
The Dubai government is considering an initial public offering of Emirates airline, the flagship carrier's President Tim Clark said on Monday, as authorities work to boost activity on the local stock market.
The emirate's government is planning to list 10 state-backed companies on its stock exchange and set up a 2 billion dirham ($545 million) market maker fund to encourage trading activity.
"Yes, there has been talk about it. Yes, there has been, perhaps a little bit more flesh on the whole subject than there has been in the past," Clark said in an interview for the upcoming Reuters Next conference when asked if a listing was a possibility.
"I'm waiting instructions as to how this is going to affect the Emirates Group. What the government of Dubai decides to do...is up to them, I would basically do as I am bid."
The Dubai government is considering an initial public offering of Emirates airline, the flagship carrier's President Tim Clark said on Monday, as authorities work to boost activity on the local stock market.
The emirate's government is planning to list 10 state-backed companies on its stock exchange and set up a 2 billion dirham ($545 million) market maker fund to encourage trading activity.
"Yes, there has been talk about it. Yes, there has been, perhaps a little bit more flesh on the whole subject than there has been in the past," Clark said in an interview for the upcoming Reuters Next conference when asked if a listing was a possibility.
"I'm waiting instructions as to how this is going to affect the Emirates Group. What the government of Dubai decides to do...is up to them, I would basically do as I am bid."
Most Gulf bourses tumble on vaccine efficacy concerns | Reuters
Most Gulf bourses tumble on vaccine efficacy concerns | Reuters
Most Gulf bourses ended lower on Tuesday, mirroring weakened global shares and oil prices, although the bourses in the United Arab Emirates (UAE) gained ahead of long holiday weekend.
A sudden burst of risk aversion gripped most major asset markets across the globe after the head of drugmaker Moderna (MRNA.O) told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been previously. read more
Saudi Arabia's benchmark index (.TASI) lost 0.5%, with Al Rajhi Bank (1120.SE) and petrochemical firm Saudi Basic Industries Corp (2010.SE) both losing 2.1% each.
The Saudi index saw its first monthly loss this year.
The World Health Organization said on Monday Omicron posed a very high risk of infection surges, and several countries stepped up travel curbs. It is still unclear how severe the new variant is and whether it can resist existing vaccines. read more
The Qatari benchmark (.QSI) dropped 0.7%, weighed by a 3.4% slide in Qatar Islamic Bank (QISB.QA) and a 2.9% decline in petrochemical maker Industries Qatar (IQCD.QA).
Oil prices, a key catalyst for the Gulf's financial markets, tumbled more than 3%.
In Abu Dhabi, the index (.ADI) advanced 0.8%, reaching a record high, led by a 3% rise in Emirates Telecommunications Group (ETISALAT.AD). The index registered its seventeenth monthly gain in eighteen.
The UAE has approved Russia's Sputnik Light vaccine as a universal booster shot against COVID-19, Russian sovereign wealth fund RDIF said on Tuesday. read more
Dubai's main share index (.DFMGI) was up 0.4%, with top lender Emirates NBD Bank (ENBD.DU) adding 3.1%.
Separately, the Dubai government is considering an initial public offering of Emirates airline, the flagship carrier's President Tim Clark said on Monday, as authorities work to boost activity on the local stock market. read more
The emirate's government is planning to list 10 state-backed companies on its stock exchange and set up a 2 billion dirham ($545 million) market maker fund to encourage trading activity.
Outside the Gulf, Egypt's blue-chip index (.EGX30) rose 1.6%, ending two sessions of losses.
Egypt's M2 money supply rose by 17.58% year-on-year in October, data from the central bank showed on Tuesday.
A sudden burst of risk aversion gripped most major asset markets across the globe after the head of drugmaker Moderna (MRNA.O) told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been previously. read more
Saudi Arabia's benchmark index (.TASI) lost 0.5%, with Al Rajhi Bank (1120.SE) and petrochemical firm Saudi Basic Industries Corp (2010.SE) both losing 2.1% each.
The Saudi index saw its first monthly loss this year.
The World Health Organization said on Monday Omicron posed a very high risk of infection surges, and several countries stepped up travel curbs. It is still unclear how severe the new variant is and whether it can resist existing vaccines. read more
The Qatari benchmark (.QSI) dropped 0.7%, weighed by a 3.4% slide in Qatar Islamic Bank (QISB.QA) and a 2.9% decline in petrochemical maker Industries Qatar (IQCD.QA).
Oil prices, a key catalyst for the Gulf's financial markets, tumbled more than 3%.
In Abu Dhabi, the index (.ADI) advanced 0.8%, reaching a record high, led by a 3% rise in Emirates Telecommunications Group (ETISALAT.AD). The index registered its seventeenth monthly gain in eighteen.
The UAE has approved Russia's Sputnik Light vaccine as a universal booster shot against COVID-19, Russian sovereign wealth fund RDIF said on Tuesday. read more
Dubai's main share index (.DFMGI) was up 0.4%, with top lender Emirates NBD Bank (ENBD.DU) adding 3.1%.
Separately, the Dubai government is considering an initial public offering of Emirates airline, the flagship carrier's President Tim Clark said on Monday, as authorities work to boost activity on the local stock market. read more
The emirate's government is planning to list 10 state-backed companies on its stock exchange and set up a 2 billion dirham ($545 million) market maker fund to encourage trading activity.
Outside the Gulf, Egypt's blue-chip index (.EGX30) rose 1.6%, ending two sessions of losses.
Egypt's M2 money supply rose by 17.58% year-on-year in October, data from the central bank showed on Tuesday.
Natural Gas Futures Plunge 12% on Warmer US Weather Forecast - Bloomberg
Natural Gas Futures Plunge 12% on Warmer US Weather Forecast - Bloomberg
Natural gas futures plummeted 11% in the U.S. as forecasts shifted warmer through the middle of next month, allaying concern about tight domestic supplies amid a global shortage of the heating fuel.
The expiration of the December contract last week amplified the market’s volatility. Prices closed 7.5% higher on Friday as traders rushed to close out bearish positions before the contract rolled off the board. Contracts for January delivery fell 62.3 cents to settle at $4.854 per million British thermal units in New York on Monday.
Since late summer, volatility in gas prices has stayed well above the average for the past decade even after a drop from last month’s peak as traders try to gauge whether winter cold will strain inventories.
Late-autumn cold in Europe and Asia has sparked fears that global gas shortages will worsen as nations struggle to refill stockpiles. But so far, there’s little sign of a similar situation developing in the U.S., even as shale producers keep a lid on output and the country’s exports of liquefied natural gas surge to a record. U.S. gas stockpiles are only 1.6% below normal for the time of year.
The so-called widowmaker spread between March and April futures, essentially a bet on how tight inventories will be at the end of the northern hemisphere’s winter, shrank to 41.5 cents, the narrowest since June, after widening to $1.909 last month.
Natural gas futures plummeted 11% in the U.S. as forecasts shifted warmer through the middle of next month, allaying concern about tight domestic supplies amid a global shortage of the heating fuel.
The expiration of the December contract last week amplified the market’s volatility. Prices closed 7.5% higher on Friday as traders rushed to close out bearish positions before the contract rolled off the board. Contracts for January delivery fell 62.3 cents to settle at $4.854 per million British thermal units in New York on Monday.
Since late summer, volatility in gas prices has stayed well above the average for the past decade even after a drop from last month’s peak as traders try to gauge whether winter cold will strain inventories.
Late-autumn cold in Europe and Asia has sparked fears that global gas shortages will worsen as nations struggle to refill stockpiles. But so far, there’s little sign of a similar situation developing in the U.S., even as shale producers keep a lid on output and the country’s exports of liquefied natural gas surge to a record. U.S. gas stockpiles are only 1.6% below normal for the time of year.
The so-called widowmaker spread between March and April futures, essentially a bet on how tight inventories will be at the end of the northern hemisphere’s winter, shrank to 41.5 cents, the narrowest since June, after widening to $1.909 last month.
ByteDance Backs #Dubai Startup iMile Delivery Building Logistics Chain to China - Bloomberg
ByteDance Backs Dubai Startup iMile Delivery Building Logistics Chain to China - Bloomberg
TikTok parent ByteDance Ltd. has invested in Dubai-based iMile Delivery LLC as part of the first major fundraising by the courier startup that services Chinese online vendors, according to people familiar with the matter.
The company’s series A financing round, one of the Middle East’s largest by a female founder to date, raised $40 million and valued iMile at $350 million, according to a statement. ByteDance committed around $10 million at a lower valuation, the people said, asking not to be named because the information isn’t public.
Beijing-based ByteDance declined to comment. iMile wouldn’t disclose the names of investors or the amounts they have put into the company.
Consumer habits have shifted during coronavirus lockdowns that kept people at home and glued to their devices. Even before the pandemic, e-commerce activity has already taken off in the Middle East, where Amazon Inc. vies for dominance with its regional rival Noon.com.
TikTok parent ByteDance Ltd. has invested in Dubai-based iMile Delivery LLC as part of the first major fundraising by the courier startup that services Chinese online vendors, according to people familiar with the matter.
The company’s series A financing round, one of the Middle East’s largest by a female founder to date, raised $40 million and valued iMile at $350 million, according to a statement. ByteDance committed around $10 million at a lower valuation, the people said, asking not to be named because the information isn’t public.
Beijing-based ByteDance declined to comment. iMile wouldn’t disclose the names of investors or the amounts they have put into the company.
Consumer habits have shifted during coronavirus lockdowns that kept people at home and glued to their devices. Even before the pandemic, e-commerce activity has already taken off in the Middle East, where Amazon Inc. vies for dominance with its regional rival Noon.com.
Emirates warns Omicron could cause 'significant traumas' for aviation industry | Reuters
Emirates warns Omicron could cause 'significant traumas' for aviation industry | Reuters
A major hit to the peak December travel season because of the Omicron variant of the coronavirus would cause "significant traumas" in the global aviation business, Emirates airline President Tim Clark said on Tuesday.
Clark said Emirates was working on the basis the newly discovered variant could be dealt with effectively by vaccines, but acknowledged the next few weeks would prove critical for the industry as scientists assess the risks.
"I would say probably by the end of December, we'll have a much clearer position," Clark said in an interview for the Reuters Next conference.
"But in that time, December is a very important month for the air travel business," he added. "If that is lost, or the winter is lost to a lot of carriers, there will be significant traumas in the business, certainly the aviation business and the periphery."
A major hit to the peak December travel season because of the Omicron variant of the coronavirus would cause "significant traumas" in the global aviation business, Emirates airline President Tim Clark said on Tuesday.
Clark said Emirates was working on the basis the newly discovered variant could be dealt with effectively by vaccines, but acknowledged the next few weeks would prove critical for the industry as scientists assess the risks.
"I would say probably by the end of December, we'll have a much clearer position," Clark said in an interview for the Reuters Next conference.
"But in that time, December is a very important month for the air travel business," he added. "If that is lost, or the winter is lost to a lot of carriers, there will be significant traumas in the business, certainly the aviation business and the periphery."
Oil slumps on jitters over vaccine efficacy | Reuters
Oil slumps on jitters over vaccine efficacy | Reuters
Oil prices tumbled more than 3% on Tuesday after Moderna's CEO cast doubt on the efficacy of COVID-19 vaccines against the Omicron coronavirus variant, spooking financial markets.
The head of drugmaker Moderna told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been against the Delta variant. read more
Brent crude futures fell $2.32, or 3.2%, to $71.12 a barrel at 0729 GMT after slipping to an intraday low of $70.52, the lowest since Sept. 1. U.S. West Texas Intermediate (WTI) crude futures fell $2.15, or 3.1%, to $67.80 a barrel, off a session low of $67.06, the weakest since Aug. 26.
The Moderna CEO's comments were just a catalyst for the market which was already weak, said a Singapore oil trader who declined to be named due to company policy.
Oil prices tumbled more than 3% on Tuesday after Moderna's CEO cast doubt on the efficacy of COVID-19 vaccines against the Omicron coronavirus variant, spooking financial markets.
The head of drugmaker Moderna told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been against the Delta variant. read more
Brent crude futures fell $2.32, or 3.2%, to $71.12 a barrel at 0729 GMT after slipping to an intraday low of $70.52, the lowest since Sept. 1. U.S. West Texas Intermediate (WTI) crude futures fell $2.15, or 3.1%, to $67.80 a barrel, off a session low of $67.06, the weakest since Aug. 26.
The Moderna CEO's comments were just a catalyst for the market which was already weak, said a Singapore oil trader who declined to be named due to company policy.
Most Gulf bourses slide on vaccine efficacy worries | Reuters
Most Gulf bourses slide on vaccine efficacy worries | Reuters
Most stock markets in the Gulf wobbled lower in early trade on Tuesday, in line with subdued Asian shares and oil prices, with the Dubai index leading the losses ahead of a long weekend.
A sudden burst of risk aversion gripped most major asset markets across Asia after the head of drugmaker Moderna (MRNA.O) told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been previously. read more
Saudi Arabia's benchmark index (.TASI) dropped 0.7%, hit by a 1.2% fall in Al Rajhi Bank (1120.SE) and a 1.6% decline in petrochemical maker Saudi Basic Industries Corp (2010.SE).
Oil giant Saudi Aramco (2222.SE) expects its Jafurah gas field to produce approximately 2 billion cubic feet per day of gas by 2030, CEO Amin Nasser said on Monday at a conference on the commercialisation of unconventional resources. read more
Shares of Aramco, however, were unchanged.
Dubai's main share index (.TASI) declined 1%, weighed down by a 1.3% slide in blue-chip developer Emaar Properties (EMAR.DU) and a 1.1% decrease in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
Elsewhere, budget airline Air Arabia (AIRA.DU) retreated more than 2%.
The World Health Organization said on Monday Omicron posed a very high risk of infection surges, and several countries stepped up travel curbs. It is still unclear how severe the new variant is and whether it can resist existing vaccines. read more
The Qatari benchmark (.QSI) eased 0.2%, with Qatar Islamic Bank (QISB.QA) losing 0.7%.
Oil prices, a key catalyst for the Gulf's financial markets, fell more than 3%, giving up early gains.
In Abu Dhabi, the index (.ADI) gained 0.4%, led by a 1.1% rise in conglomerate International Holding Co (IHC) (IHC.AD).
IHC's subsidiary Multiply Group will list directly on the Abu Dhabi Securities Exchange on Dec. 5. read more
Direct listings allow companies to list on the stock market without a traditional and more costly initial public offering.
Most stock markets in the Gulf wobbled lower in early trade on Tuesday, in line with subdued Asian shares and oil prices, with the Dubai index leading the losses ahead of a long weekend.
A sudden burst of risk aversion gripped most major asset markets across Asia after the head of drugmaker Moderna (MRNA.O) told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been previously. read more
Saudi Arabia's benchmark index (.TASI) dropped 0.7%, hit by a 1.2% fall in Al Rajhi Bank (1120.SE) and a 1.6% decline in petrochemical maker Saudi Basic Industries Corp (2010.SE).
Oil giant Saudi Aramco (2222.SE) expects its Jafurah gas field to produce approximately 2 billion cubic feet per day of gas by 2030, CEO Amin Nasser said on Monday at a conference on the commercialisation of unconventional resources. read more
Shares of Aramco, however, were unchanged.
Dubai's main share index (.TASI) declined 1%, weighed down by a 1.3% slide in blue-chip developer Emaar Properties (EMAR.DU) and a 1.1% decrease in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
Elsewhere, budget airline Air Arabia (AIRA.DU) retreated more than 2%.
The World Health Organization said on Monday Omicron posed a very high risk of infection surges, and several countries stepped up travel curbs. It is still unclear how severe the new variant is and whether it can resist existing vaccines. read more
The Qatari benchmark (.QSI) eased 0.2%, with Qatar Islamic Bank (QISB.QA) losing 0.7%.
Oil prices, a key catalyst for the Gulf's financial markets, fell more than 3%, giving up early gains.
In Abu Dhabi, the index (.ADI) gained 0.4%, led by a 1.1% rise in conglomerate International Holding Co (IHC) (IHC.AD).
IHC's subsidiary Multiply Group will list directly on the Abu Dhabi Securities Exchange on Dec. 5. read more
Direct listings allow companies to list on the stock market without a traditional and more costly initial public offering.
Monday, 29 November 2021
Oil pares gains, but ends higher after Friday slump | Reuters
Oil pares gains, but ends higher after Friday slump | Reuters
Oil pared gains late on Monday, but finished the session higher as investors viewed Friday's slump in oil and financial markets as overdone absent more data on the Omicron coronavirus variant.
Brent briefly surged above $77 a barrel, while U.S. crude touched highs above $72. However, both contracts gave up gains late in the session.
Brent crude futures settled at $73.44 a barrel, up 72 cents or 1%, having slid by $9.50 on Friday. U.S. West Texas Intermediate (WTI) crude settled up $1.80, or 2.6% at $69.95 a barrel. The contract tumbled $10.24 in the previous session.
In post-settlement trade, Brent briefly turned into negative territory on thin volumes.
Oil pared gains late on Monday, but finished the session higher as investors viewed Friday's slump in oil and financial markets as overdone absent more data on the Omicron coronavirus variant.
Brent briefly surged above $77 a barrel, while U.S. crude touched highs above $72. However, both contracts gave up gains late in the session.
Brent crude futures settled at $73.44 a barrel, up 72 cents or 1%, having slid by $9.50 on Friday. U.S. West Texas Intermediate (WTI) crude settled up $1.80, or 2.6% at $69.95 a barrel. The contract tumbled $10.24 in the previous session.
In post-settlement trade, Brent briefly turned into negative territory on thin volumes.
Investment Corporation of #Dubai’s H1-2021 revenues at Dh75.2 in ‘significant performance’ | Markets – Gulf News
Investment Corporation of Dubai’s H1-2021 revenues at Dh75.2 in ‘significant performance’ | Markets – Gulf News
Dubai Government’s investment arm ICD generated revenues of Dh75.2 billion in the first six months of this year, which amounts to a “significantly stronger performance” than in the same period last year. Net profits for Investment Corporation of Dubai came to Dh1.4 billion, again a major turnaround from last year.
Last year, with all the challenges of COVID-19 to deal with, revenues were Dh73.7 billion and slipped into a net loss of Dh9.4 billion.
“We made significant progress on our return to profitability, reaping the benefits of efficient cost management, and rallying commodity prices and financial markets. The recovery was also assisted by the continued support from the Government to businesses,” said Mohammed Ibrahim Al Shaibani, Managing Director.
ICD lists assets such as Emirates Group as part of its portfolio. At the end of June, assets were valued at Dh1.10 trillion and liabilities of Dh874.8 billion, which is “essentially flat compared to year-end 2020”.
Dubai Government’s investment arm ICD generated revenues of Dh75.2 billion in the first six months of this year, which amounts to a “significantly stronger performance” than in the same period last year. Net profits for Investment Corporation of Dubai came to Dh1.4 billion, again a major turnaround from last year.
Last year, with all the challenges of COVID-19 to deal with, revenues were Dh73.7 billion and slipped into a net loss of Dh9.4 billion.
“We made significant progress on our return to profitability, reaping the benefits of efficient cost management, and rallying commodity prices and financial markets. The recovery was also assisted by the continued support from the Government to businesses,” said Mohammed Ibrahim Al Shaibani, Managing Director.
ICD lists assets such as Emirates Group as part of its portfolio. At the end of June, assets were valued at Dh1.10 trillion and liabilities of Dh874.8 billion, which is “essentially flat compared to year-end 2020”.
Aramco CEO Nasser Stays Bullish on Oil Demand After Friday’s Price Rout - Bloomberg
Aramco CEO Nasser Stays Bullish on Oil Demand After Friday’s Price Rout - Bloomberg
Oil demand will bounce back to what it was before the coronavirus pandemic crushed energy use last year, and a rout in prices last week was based on unfounded fears of new variants of the disease, the head of Saudi Aramco said.
The market “over-reacted” to news of the new omicron coronavirus variant when prices plunged Friday, Chief Executive Officer Amin Nasser said Monday.
“We’re very optimistic about demand,” he told reporters in Dhahran, the center of Saudi Arabia’s oil business along the country’s Persian Gulf coast. “We’re seeing a good response from the markets, especially in Asia.”
Crude recouped some its losses on Monday after the end-of-week rout that saw U.S. oil plunge more than 10%, slumping below $70 for the first time since September.
Oil demand will bounce back to what it was before the coronavirus pandemic crushed energy use last year, and a rout in prices last week was based on unfounded fears of new variants of the disease, the head of Saudi Aramco said.
The market “over-reacted” to news of the new omicron coronavirus variant when prices plunged Friday, Chief Executive Officer Amin Nasser said Monday.
“We’re very optimistic about demand,” he told reporters in Dhahran, the center of Saudi Arabia’s oil business along the country’s Persian Gulf coast. “We’re seeing a good response from the markets, especially in Asia.”
Crude recouped some its losses on Monday after the end-of-week rout that saw U.S. oil plunge more than 10%, slumping below $70 for the first time since September.
Oil gains more than 3% on speculation Omicron-related drop overdone | Reuters
Oil gains more than 3% on speculation Omicron-related drop overdone | Reuters
Oil bounded upward Monday, briefly touching highs above $77 a barrel as some investors viewed Friday's slump in oil and financial markets as overdone absent more data on the Omicron coronavirus variant.
If the new variant of the virus proves vaccine resistant or more contagious than other variants, it could impact travel, commerce and petroleum demand.
Top officials from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, echoed that view, with the Saudi energy minister quoted as saying he was not worried about the Omicron variant.
The World Health Organization has said it could take weeks to understand the variant's severity, though a South African doctor who has treated cases said symptoms seemed to be mild so far. read more
Brent crude was up $2.28, or 3%, at $75.02 a barrel by 12:29 p.m. Eastern (1729 GMT), having slid by $9.50 on Friday. U.S. West Texas Intermediate (WTI) crude was up $2.93, or 4.3%, at $71.08, having tumbled by $10.24 in the previous session. Brent briefly surged above $77 a barrel, while U.S. crude went above $72.
Brent prices have given up $10 in the past two weeks.
Oil bounded upward Monday, briefly touching highs above $77 a barrel as some investors viewed Friday's slump in oil and financial markets as overdone absent more data on the Omicron coronavirus variant.
If the new variant of the virus proves vaccine resistant or more contagious than other variants, it could impact travel, commerce and petroleum demand.
Top officials from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, echoed that view, with the Saudi energy minister quoted as saying he was not worried about the Omicron variant.
The World Health Organization has said it could take weeks to understand the variant's severity, though a South African doctor who has treated cases said symptoms seemed to be mild so far. read more
Brent crude was up $2.28, or 3%, at $75.02 a barrel by 12:29 p.m. Eastern (1729 GMT), having slid by $9.50 on Friday. U.S. West Texas Intermediate (WTI) crude was up $2.93, or 4.3%, at $71.08, having tumbled by $10.24 in the previous session. Brent briefly surged above $77 a barrel, while U.S. crude went above $72.
Brent prices have given up $10 in the past two weeks.
#Dubai faces up to rivals as it plans stock exchange revival with IPO offerings | Financial Times
Dubai faces up to rivals as it plans stock exchange revival with IPO offerings | Financial Times
Competition is heating up in the capital markets of the United Arab Emirates, as Dubai seeks to revive its ailing stock exchange with a flurry of initial public offerings.
The government of the UAE’s commercial hub plans to privatise 10 state-backed companies, listing some of their shares on Dubai’s domestic bourse in a bid to rival the success of neighbouring emirate Abu Dhabi and regional powerhouse Saudi Arabia. Officials also hope to root more regulatory oversight within Dubai, rather than keeping it at a federal level.
Those moves come after several lacklustre years for Dubai equities, which have failed to revisit the dizzy heights reached during the mid-2000s.
Dubai’s government launched its stock exchange with a Dh50m ($14m) bank loan in 2000. Within half a decade, the fledgling bourse had soared to a total market capitalisation of $120bn, three times the size of Dubai’s gross domestic product at the time.
Gulf bourses rebound as calm returns after Omicron battering | Reuters
Gulf bourses rebound as calm returns after Omicron battering | Reuters
Stock markets in the Gulf rebounded on Monday, mirroring oil prices and global shares as investors waited for more details to assess the severity of the Omicron coronavirus variant on the world economy.
European shares and U.S. stock futures firmed, oil prices bounced more than $3 a barrel, while safe-haven bonds lost ground as markets latched on to hopes the new variant of concern would prove to be "mild". read more
Saudi Arabia's benchmark index (.TASI) rose 0.2%, with Al Rajhi Bank (1120.SE) rising 0.9% and SABIC Agri-Nutrients Co (2020.SE) advancing 4.5%.
Saudi Tadawul Group, which operates the kingdom's stock exchange, raised 3.78 billion riyals ($1.01 billion) on Sunday via an initial public offering that was priced at the top of the indicated range and oversubscribed 121 times. read more
Saudi energy minister Prince Abdulaziz bin Salman al-Saud said on Monday he was not worried about the Omicron coronavirus variant, Asharq Business reported, after crude prices plunged last week on fears the new variant would hammer demand.
Meanwhile, an OPEC+ technical meeting was postponed to Wednesday and an OPEC+ ministerial committee meeting moved to Thursday "to buy time to review things" in light of the new variant development.
Dubai's main share index (.DFMGI) closed 1.8% higher, buoyed by a 3.6% leap in blue-chip developer Emaar Properties (EMAR.DU) and a 2.1% rise in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
Dubai, the travel and tourism hub of the Middle East, on Sunday slid 5.2%, its biggest fall since March 2020.
In Abu Dhabi, the index (.ADI) concluded 2.2%, hitting a record high, boosted by a 5.8% jump in telecoms firm Etisalat (ETISALAT.AD).
Amazon (AMZN.O) has partnered with Abu Dhabi Investment Office to establish a fulfilment centre by 2024 to be built in accordance with the company's carbon-reduction strategies, the Abu Dhabi government's media office said on Sunday. read more
The Qatari benchmark (.QSI) edged 0.1% higher, helped by a 1.3% rise in petrochemical maker Industries Qatar (IQCD.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.6%, dragged down by a 10.1% plunge in tobacco monopoly Eastern Company (EAST.CA) as the stock traded ex-dividend.
Stock markets in the Gulf rebounded on Monday, mirroring oil prices and global shares as investors waited for more details to assess the severity of the Omicron coronavirus variant on the world economy.
European shares and U.S. stock futures firmed, oil prices bounced more than $3 a barrel, while safe-haven bonds lost ground as markets latched on to hopes the new variant of concern would prove to be "mild". read more
Saudi Arabia's benchmark index (.TASI) rose 0.2%, with Al Rajhi Bank (1120.SE) rising 0.9% and SABIC Agri-Nutrients Co (2020.SE) advancing 4.5%.
Saudi Tadawul Group, which operates the kingdom's stock exchange, raised 3.78 billion riyals ($1.01 billion) on Sunday via an initial public offering that was priced at the top of the indicated range and oversubscribed 121 times. read more
Saudi energy minister Prince Abdulaziz bin Salman al-Saud said on Monday he was not worried about the Omicron coronavirus variant, Asharq Business reported, after crude prices plunged last week on fears the new variant would hammer demand.
Meanwhile, an OPEC+ technical meeting was postponed to Wednesday and an OPEC+ ministerial committee meeting moved to Thursday "to buy time to review things" in light of the new variant development.
Dubai's main share index (.DFMGI) closed 1.8% higher, buoyed by a 3.6% leap in blue-chip developer Emaar Properties (EMAR.DU) and a 2.1% rise in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
Dubai, the travel and tourism hub of the Middle East, on Sunday slid 5.2%, its biggest fall since March 2020.
In Abu Dhabi, the index (.ADI) concluded 2.2%, hitting a record high, boosted by a 5.8% jump in telecoms firm Etisalat (ETISALAT.AD).
Amazon (AMZN.O) has partnered with Abu Dhabi Investment Office to establish a fulfilment centre by 2024 to be built in accordance with the company's carbon-reduction strategies, the Abu Dhabi government's media office said on Sunday. read more
The Qatari benchmark (.QSI) edged 0.1% higher, helped by a 1.3% rise in petrochemical maker Industries Qatar (IQCD.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.6%, dragged down by a 10.1% plunge in tobacco monopoly Eastern Company (EAST.CA) as the stock traded ex-dividend.
Emirates Investment Authority aims to double assets in 10 years, WAM reports | Reuters
Emirates Investment Authority aims to double assets in 10 years, WAM reports | Reuters
The Emirates Investment Authority aims to double the size of its assets in the next 10 years with an investment policy aimed at increasing returns, state news agency WAM reported on Monday.
The authority will invest in a group of financial portfolios, via its existing assets or by investing in new companies, WAM added.
The Emirates Investment Authority aims to double the size of its assets in the next 10 years with an investment policy aimed at increasing returns, state news agency WAM reported on Monday.
The authority will invest in a group of financial portfolios, via its existing assets or by investing in new companies, WAM added.
#AbuDhabi’s Sovereign Fund Mubadala Plans Investment in Singapore Data Center - Bloomberg
Abu Dhabi’s Sovereign Fund Mubadala Plans Investment in Singapore Data Center - Bloomberg
Mubadala Investment Co., an Abu Dhabi sovereign fund, is considering investing in Princeton Digital Group Pte as part of the Asia-focused data center operator’s fundraising plans, according to people familiar with the matter.
Mubadala is likely to become the anchor investor of the round, the people said, asking not to be identified because the process is private. Others are set to join as part of the financing over the coming weeks, the people said.
Singapore-based Princeton Digital, which is backed by private equity firm Warburg Pincus, has been considering raising about $400 million from investors in a deal that could boost its valuation to about $2 billion, Bloomberg News reported in June. The fundraising would serve as a stepping stone ahead of a potential initial public offering, people familiar with the matter have said.
No final decision has been made as the deliberations are still ongoing, and talks could still fall apart, the people said. Representatives for Mubadala and Warburg Pincus declined to comment, while Princeton Digital didn’t immediately respond to a request for comment.
Princeton Digital runs 20 data centers in 14 cities across countries including China, Singapore, India, Indonesia and Japan, according to its website. Warburg Pincus invested in and helped set up the company in 2017, along with Princeton Digital Chairman and Chief Executive Officer Rangu Salgame and Chief Operating Officer Varoon Raghavan.
Last year, the company got $360 million in equity investment led by Canadian pension fund Ontario Teachers’ Pension Plan Board, the website shows. The firm secured a $230 million debt refinancing this year to support its $1 billion expansion plans in China.
Mubadala Investment Co., an Abu Dhabi sovereign fund, is considering investing in Princeton Digital Group Pte as part of the Asia-focused data center operator’s fundraising plans, according to people familiar with the matter.
Mubadala is likely to become the anchor investor of the round, the people said, asking not to be identified because the process is private. Others are set to join as part of the financing over the coming weeks, the people said.
Singapore-based Princeton Digital, which is backed by private equity firm Warburg Pincus, has been considering raising about $400 million from investors in a deal that could boost its valuation to about $2 billion, Bloomberg News reported in June. The fundraising would serve as a stepping stone ahead of a potential initial public offering, people familiar with the matter have said.
No final decision has been made as the deliberations are still ongoing, and talks could still fall apart, the people said. Representatives for Mubadala and Warburg Pincus declined to comment, while Princeton Digital didn’t immediately respond to a request for comment.
Princeton Digital runs 20 data centers in 14 cities across countries including China, Singapore, India, Indonesia and Japan, according to its website. Warburg Pincus invested in and helped set up the company in 2017, along with Princeton Digital Chairman and Chief Executive Officer Rangu Salgame and Chief Operating Officer Varoon Raghavan.
Last year, the company got $360 million in equity investment led by Canadian pension fund Ontario Teachers’ Pension Plan Board, the website shows. The firm secured a $230 million debt refinancing this year to support its $1 billion expansion plans in China.
Domestic politics to test #Kuwait's crown prince in push for fiscal reform | Reuters
Domestic politics to test Kuwait's crown prince in push for fiscal reform | Reuters
The biggest task facing Kuwait's octogenarian crown prince after unexpectedly stepping in for the emir this month will be to tackle the perennial political feuding which has long blocked badly needed fiscal reform in the wealthy oil producer.
Previously a low-profile figure who avoided public politics, little was known about Sheikh Meshal al-Ahmad al-Sabah, 81, who was security chief and then deputy of the National Guard before being named crown prince by his half-brother the emir in 2020.
On Nov. 15, he was moved further into the spotlight when a frail-looking emir temporarily handed him most of his duties as Kuwait focuses on recovering from a coronavirus downturn, though higher oil prices have eased pressure on finances.
Before the handover, the emir undertook conciliatory moves to defuse a standoff between government and the elected parliament that paralysed legislative work with only one regular session proceeding this year to approve the state budget.
The biggest task facing Kuwait's octogenarian crown prince after unexpectedly stepping in for the emir this month will be to tackle the perennial political feuding which has long blocked badly needed fiscal reform in the wealthy oil producer.
Previously a low-profile figure who avoided public politics, little was known about Sheikh Meshal al-Ahmad al-Sabah, 81, who was security chief and then deputy of the National Guard before being named crown prince by his half-brother the emir in 2020.
On Nov. 15, he was moved further into the spotlight when a frail-looking emir temporarily handed him most of his duties as Kuwait focuses on recovering from a coronavirus downturn, though higher oil prices have eased pressure on finances.
Before the handover, the emir undertook conciliatory moves to defuse a standoff between government and the elected parliament that paralysed legislative work with only one regular session proceeding this year to approve the state budget.
#Saudi stock market cashes in on its own growth | Reuters
Saudi stock market cashes in on its own growth | Reuters
Saudi’s bourse is cashing in on its own success. Riyadh’s Tadawul on Sunday priced an initial public offering of 30% of its shares at the top end of the previously published range, implying a valuation of 12.6 billion riyals ($3.4 billion). With orders worth 121 times the shares on offer, demand was not quite as exuberant as for the recent listing of ACWA Power (2082.SE) read more . But it is still indicative of a handy market position.
Not counting Tadawul’s own IPO, eight Saudi groups have listed on the domestic exchange this year, according to Refinitiv. That will further boost the bourse’s revenue, which doubled to 1.1 billion riyals between 2018 and 2020. A key driver is the $200 billion Riyadh hopes to raise by partially privatising state-owned groups to pay for the country’s diversification away from oil. Both ACWA and Tadawul are currently owned by Saudi’s $430 billion Public Investment Fund. The pipeline of potential stock offerings helps explain why the Saudi exchange’s implied valuation exceeds 17 times its likely 2021 EBITDA – below New York Stock Exchange owner Intercontinental Exchange (ICE.N) but ahead of European rivals like Deutsche Boerse (DB1Gn.DE). (By George Hay)
Saudi’s bourse is cashing in on its own success. Riyadh’s Tadawul on Sunday priced an initial public offering of 30% of its shares at the top end of the previously published range, implying a valuation of 12.6 billion riyals ($3.4 billion). With orders worth 121 times the shares on offer, demand was not quite as exuberant as for the recent listing of ACWA Power (2082.SE) read more . But it is still indicative of a handy market position.
Not counting Tadawul’s own IPO, eight Saudi groups have listed on the domestic exchange this year, according to Refinitiv. That will further boost the bourse’s revenue, which doubled to 1.1 billion riyals between 2018 and 2020. A key driver is the $200 billion Riyadh hopes to raise by partially privatising state-owned groups to pay for the country’s diversification away from oil. Both ACWA and Tadawul are currently owned by Saudi’s $430 billion Public Investment Fund. The pipeline of potential stock offerings helps explain why the Saudi exchange’s implied valuation exceeds 17 times its likely 2021 EBITDA – below New York Stock Exchange owner Intercontinental Exchange (ICE.N) but ahead of European rivals like Deutsche Boerse (DB1Gn.DE). (By George Hay)
House prices jump 21% as rich flock to #Dubai, but 2021 could be peak of current property cycle | ZAWYA MENA Edition
House prices jump 21% as rich flock to Dubai, but 2021 could be peak of current property cycle | ZAWYA MENA Edition
House prices in Dubai jumped 21 percent this year thanks to the government's response in arresting the spread of COVID-19, which triggered interest in the property market from rich investors outside the emirate, according to a study by global property consultant Knight Frank.
While developers are responding by pushing the envelope and bringing AED 10,000 per square foot homes to the market, more modestly priced properties continue to languish in Dubai's third property cycle. Indeed, residential values overall are still some 29 percent below the 2014 peak.
Faisal Durrani, Partner-Head of Middle East Research, Knight Frank said: “Excellent governance has always been a defining feature of the United Arab Emirates. And the post-Covid bounce currently underway in Dubai’s real estate market, which is driving the emirate’s third property cycle, is a reminder of the authorities’ phenomenal response to the pandemic."
“Yes, buyer habits have evolved over the course of the last 18 months, but the feel-good sentiment injected into the market by the way in which infection rates have been arrested in the UAE has played an incredibly strong part in driving villa prices up by 14 percent since January 2020,” he added.
House prices in Dubai jumped 21 percent this year thanks to the government's response in arresting the spread of COVID-19, which triggered interest in the property market from rich investors outside the emirate, according to a study by global property consultant Knight Frank.
While developers are responding by pushing the envelope and bringing AED 10,000 per square foot homes to the market, more modestly priced properties continue to languish in Dubai's third property cycle. Indeed, residential values overall are still some 29 percent below the 2014 peak.
Faisal Durrani, Partner-Head of Middle East Research, Knight Frank said: “Excellent governance has always been a defining feature of the United Arab Emirates. And the post-Covid bounce currently underway in Dubai’s real estate market, which is driving the emirate’s third property cycle, is a reminder of the authorities’ phenomenal response to the pandemic."
“Yes, buyer habits have evolved over the course of the last 18 months, but the feel-good sentiment injected into the market by the way in which infection rates have been arrested in the UAE has played an incredibly strong part in driving villa prices up by 14 percent since January 2020,” he added.
Morgan Stanley cuts Q1 2022 Brent oil forecast on Omicron risks | Reuters
Morgan Stanley cuts Q1 2022 Brent oil forecast on Omicron risks | Reuters
Morgan Stanley on Monday cut its first quarter 2022 Brent crude price forecast to $82.50 per barrel from $95 on market expectations that the Omicron coronavirus variant could turn into a major headwind for oil demand.
The market appears to be pricing in the possibility that the new variant could prompt restrictions and cut oil demand, amid expectations of oversupply driven by planned release from the Strategic Petroleum Reserve adding to monthly output from the Organization of the Petroleum Exporting Countries and allies (OPEC+), the bank said in a note.
Oil rebounded by almost 5% on Monday to $76 a barrel as some investors viewed Friday's more than 10% slump in oil on concern about the Omicron coronavirus variant as overdone. read more
But while the beginning of next year could see excess supply, spare oil capacity was likely to be eroded by the end of 2022 as inventories draw down further from already low levels.
Morgan Stanley on Monday cut its first quarter 2022 Brent crude price forecast to $82.50 per barrel from $95 on market expectations that the Omicron coronavirus variant could turn into a major headwind for oil demand.
The market appears to be pricing in the possibility that the new variant could prompt restrictions and cut oil demand, amid expectations of oversupply driven by planned release from the Strategic Petroleum Reserve adding to monthly output from the Organization of the Petroleum Exporting Countries and allies (OPEC+), the bank said in a note.
Oil rebounded by almost 5% on Monday to $76 a barrel as some investors viewed Friday's more than 10% slump in oil on concern about the Omicron coronavirus variant as overdone. read more
But while the beginning of next year could see excess supply, spare oil capacity was likely to be eroded by the end of 2022 as inventories draw down further from already low levels.
Oil rebounds to $76 on speculation Omicron-related drop overdone | Reuters
Oil rebounds to $76 on speculation Omicron-related drop overdone | Reuters
Oil rebounded by almost 5% on Monday to $76 a barrel as some investors viewed Friday's slump in oil and financial markets on concern about the Omicron coronavirus variant as overdone.
The World Health Organisation has said it could take weeks to understand the variant's severity, although a South African doctor who has treated cases said symptoms so far seemed to be mild. read more
Brent crude was $3.24, or 4.5%, higher at $75.96 by 1047 GMT, after sliding $9.50 on Friday. U.S. West Texas Intermediate (WTI) crude was up $3.12, or 4.6%, at $71.27, having tumbled $10.24 in the previous session.
"We saw some correction as Friday's plunge in oil prices has been overdone," said Tatsufumi Okoshi, senior economist at Nomura Securities.
Oil rebounded by almost 5% on Monday to $76 a barrel as some investors viewed Friday's slump in oil and financial markets on concern about the Omicron coronavirus variant as overdone.
The World Health Organisation has said it could take weeks to understand the variant's severity, although a South African doctor who has treated cases said symptoms so far seemed to be mild. read more
Brent crude was $3.24, or 4.5%, higher at $75.96 by 1047 GMT, after sliding $9.50 on Friday. U.S. West Texas Intermediate (WTI) crude was up $3.12, or 4.6%, at $71.27, having tumbled $10.24 in the previous session.
"We saw some correction as Friday's plunge in oil prices has been overdone," said Tatsufumi Okoshi, senior economist at Nomura Securities.
Gulf bourses regain some ground after Omicron battering | Reuters
Gulf bourses regain some ground after Omicron battering | Reuters
Major stock markets in the Gulf rebounded on Monday, in line with oil prices and global shares as investors settled in for a few weeks of uncertainty on whether the Omicron variant would really derail economic recoveries and the tightening plans of some central banks.
The new coronavirus variant of concern was found as far afield as Canada and Australia as more countries imposed travel restrictions to try to seal themselves off. read more
Saudi Arabia's benchmark index (.TASI) advanced 1.7%, a day after marking its biggest single-day fall in nearly two years, with Al Rajhi Bank (1120.SE) rising 2.2% and Saudi National Bank (1180.SE), the kingdom's biggest lender, putting on 1.5%.
Elsewhere, utility firm Saudi Electricity (5110.SE) gained more than 1% after the cabinet approved carving out unit Saudi Power Procurement Co and transferring its ownership to the government.
Saudi Tadawul Group, which operates the kingdom's stock exchange, raised 3.78 billion riyals ($1.01 billion) on Sunday via an initial public offering that was priced at the top of the indicated range and 121 times oversubscribed. read more
Dubai's main share index (.DFMGI) leapt 2.8%, boosted by a 4.9% rise in blue-chip developer Emaar Properties (EMAR.DU) and a 2.1% increase in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
Dubai, the travel and tourism hub of the Middle East, on Sunday slid 5.2%, its biggest fall since March 2020.
Oil prices, a key catalyst for the Gulf's financial markets, bounced more than $3 a barrel to recoup a chunk of Friday's shellacking.
In Abu Dhabi, the index (.ADI) gained 1.2%, with Emirates Telecommunications Group (ETISALAT.AD) jumping 3.1% and top lender First Abu Dhabi Bank (FAB.AD) adding 0.2%.
Amazon (AMZN.O) has partnered with Abu Dhabi Investment Office to establish a fulfilment centre by 2024 to be built in accordance with the company's carbon-reduction strategies, the Abu Dhabi government's media office said on Sunday. read more
The Qatari index (.QSI) was up 0.5%, with almost all stocks on the index were in positive territory including petrochemical maker Industries Qatar (IQCD.QA).
Major stock markets in the Gulf rebounded on Monday, in line with oil prices and global shares as investors settled in for a few weeks of uncertainty on whether the Omicron variant would really derail economic recoveries and the tightening plans of some central banks.
The new coronavirus variant of concern was found as far afield as Canada and Australia as more countries imposed travel restrictions to try to seal themselves off. read more
Saudi Arabia's benchmark index (.TASI) advanced 1.7%, a day after marking its biggest single-day fall in nearly two years, with Al Rajhi Bank (1120.SE) rising 2.2% and Saudi National Bank (1180.SE), the kingdom's biggest lender, putting on 1.5%.
Elsewhere, utility firm Saudi Electricity (5110.SE) gained more than 1% after the cabinet approved carving out unit Saudi Power Procurement Co and transferring its ownership to the government.
Saudi Tadawul Group, which operates the kingdom's stock exchange, raised 3.78 billion riyals ($1.01 billion) on Sunday via an initial public offering that was priced at the top of the indicated range and 121 times oversubscribed. read more
Dubai's main share index (.DFMGI) leapt 2.8%, boosted by a 4.9% rise in blue-chip developer Emaar Properties (EMAR.DU) and a 2.1% increase in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
Dubai, the travel and tourism hub of the Middle East, on Sunday slid 5.2%, its biggest fall since March 2020.
Oil prices, a key catalyst for the Gulf's financial markets, bounced more than $3 a barrel to recoup a chunk of Friday's shellacking.
In Abu Dhabi, the index (.ADI) gained 1.2%, with Emirates Telecommunications Group (ETISALAT.AD) jumping 3.1% and top lender First Abu Dhabi Bank (FAB.AD) adding 0.2%.
Amazon (AMZN.O) has partnered with Abu Dhabi Investment Office to establish a fulfilment centre by 2024 to be built in accordance with the company's carbon-reduction strategies, the Abu Dhabi government's media office said on Sunday. read more
The Qatari index (.QSI) was up 0.5%, with almost all stocks on the index were in positive territory including petrochemical maker Industries Qatar (IQCD.QA).
Oil rebounds on speculation OPEC+ may pause output increase | Reuters
Oil rebounds on speculation OPEC+ may pause output increase | Reuters
Oil prices rebounded on Monday as investors looked for bargains after Friday's slump and on speculation that OPEC+ may pause an output increase in response to the spread of Omicron, but the mood remained cautious with little known about the new variant.
Prices jumped over 4%, recovering some ground after plunging more than 10% in the previous trading session. On Friday, oil prices posted their biggest one-day drop since April 2020 as the new variant spooked investors across financial markets.
Brent crude futures climbed $3.17, or 4.4%, to $75.89 a barrel by 0748 GMT, after falling $9.50 on Friday.
U.S. West Texas Intermediate (WTI) crude was up $3.35, or 4.9%, at $71.50 a barrel, having tumbled $10.24 in the previous session.
There are worries the new variant could derail the global economic recovery, potentially hurting oil demand, while it has also added to concerns that a supply surplus could swell in the first quarter. read more
Oil prices rebounded on Monday as investors looked for bargains after Friday's slump and on speculation that OPEC+ may pause an output increase in response to the spread of Omicron, but the mood remained cautious with little known about the new variant.
Prices jumped over 4%, recovering some ground after plunging more than 10% in the previous trading session. On Friday, oil prices posted their biggest one-day drop since April 2020 as the new variant spooked investors across financial markets.
Brent crude futures climbed $3.17, or 4.4%, to $75.89 a barrel by 0748 GMT, after falling $9.50 on Friday.
U.S. West Texas Intermediate (WTI) crude was up $3.35, or 4.9%, at $71.50 a barrel, having tumbled $10.24 in the previous session.
There are worries the new variant could derail the global economic recovery, potentially hurting oil demand, while it has also added to concerns that a supply surplus could swell in the first quarter. read more
IHC subsidiary Multiply to list directly on #AbuDhabi's main market | Reuters
IHC subsidiary Multiply to list directly on Abu Dhabi's main market | Reuters
Multiply Group, a subsidiary of Abu Dhabi conglomerate International Holding Company (IHC.AD) (IHC), will list directly on the Abu Dhabi Securities Exchange on Dec. 5, IHC said on Monday.
Direct listings allow companies to list on the stock market without a traditional and more costly initial public offering.
In October, CEO Syed Basar Shueb told Reuters that IHC was planning to offer shares in Multiply, a holding company that invests in tech-focussed businesses, through an IPO. read more
An IHC spokesperson on Monday did not immediately respond to a request for comment on why those plans were changed.
Multiply had assets of 8.2 billion dirhams ($2.23 billion) at the end of September, IHC said in its bourse filing on Monday.
Multiply Group, a subsidiary of Abu Dhabi conglomerate International Holding Company (IHC.AD) (IHC), will list directly on the Abu Dhabi Securities Exchange on Dec. 5, IHC said on Monday.
Direct listings allow companies to list on the stock market without a traditional and more costly initial public offering.
In October, CEO Syed Basar Shueb told Reuters that IHC was planning to offer shares in Multiply, a holding company that invests in tech-focussed businesses, through an IPO. read more
An IHC spokesperson on Monday did not immediately respond to a request for comment on why those plans were changed.
Multiply had assets of 8.2 billion dirhams ($2.23 billion) at the end of September, IHC said in its bourse filing on Monday.
Oil rebounds on speculation OPEC+ may pause output increase | Reuters
Oil rebounds on speculation OPEC+ may pause output increase | Reuters
Oil prices rebounded on Monday as investors looked for bargains after Friday's slump and on speculation that OPEC+ may pause an output increase in response to the spread of Omicron, but the mood remained cautious with little known about the new variant.
Brent crude futures climbed $3.11, or 4.3%, to $75.83 a barrel by 0355 GMT, after falling $9.50 on Friday.
U.S. West Texas Intermediate (WTI) crude was up $3.47, or 5.1%, at $71.62 a barrel, having tumbled $10.24 in the previous session.
Oil prices plunged more than 10% on Friday - their biggest one-day drop since April 2020 -- as the new variant spooked investors across financial markets.
There are worries the new variant could derail the global economic recovery, potentially hurting oil demand, while it has also added to concerns that a supply surplus could swell in the first quarter.
Oil prices rebounded on Monday as investors looked for bargains after Friday's slump and on speculation that OPEC+ may pause an output increase in response to the spread of Omicron, but the mood remained cautious with little known about the new variant.
Brent crude futures climbed $3.11, or 4.3%, to $75.83 a barrel by 0355 GMT, after falling $9.50 on Friday.
U.S. West Texas Intermediate (WTI) crude was up $3.47, or 5.1%, at $71.62 a barrel, having tumbled $10.24 in the previous session.
Oil prices plunged more than 10% on Friday - their biggest one-day drop since April 2020 -- as the new variant spooked investors across financial markets.
There are worries the new variant could derail the global economic recovery, potentially hurting oil demand, while it has also added to concerns that a supply surplus could swell in the first quarter.
Sunday, 28 November 2021
Bloomberg Green: The Gulf's Clean Energy Turnaround - Bloomberg video
Bloomberg Green: The Gulf's Clean Energy Turnaround - Bloomberg
Oil transformed the Middle East, but now Gulf countries are under pressure to leave hydrocarbons behind. With fresh net zero targets announced in the run up to COP26, we hear from Saudi Arabia's energy minister Prince Abdulaziz bin Salman and Mariam Almheiri, the UAE's climate minister. One solution for the region could be the new futuristic megacity Neom: we near from the man making it happen, CEO Nadhmi Al-Nasr. Plus, we look at the role natural gas is playing in the Gulf's energy transition.
UPDATE OPEC postponses technical meetings to evaluate Omicron impact -sources | Reuters
UPDATE OPEC postponses technical meetings to evaluate Omicron impact -sources | Reuters
OPEC and its allies have postponed technical meetings to later this week, giving themselves more time to assess the impact of the new Omicron coronavirus variant on oil demand and prices, according to OPEC+ sources and documents.
Oil prices crashed together with other financial markets on Friday by more than 10%, their largest one-day drop since April 2020, as the new variant spooked investors and added to concerns that a supply surplus could swell in the first quarter.
Friday's fall was exacerbated by low liquidity due to a U.S. public holiday.
Before Friday, OPEC had already predicted the surplus would grow steeply after the United States and other major consumers decided to release oil stocks to help cool down prices.
OPEC and its allies have postponed technical meetings to later this week, giving themselves more time to assess the impact of the new Omicron coronavirus variant on oil demand and prices, according to OPEC+ sources and documents.
Oil prices crashed together with other financial markets on Friday by more than 10%, their largest one-day drop since April 2020, as the new variant spooked investors and added to concerns that a supply surplus could swell in the first quarter.
Friday's fall was exacerbated by low liquidity due to a U.S. public holiday.
Before Friday, OPEC had already predicted the surplus would grow steeply after the United States and other major consumers decided to release oil stocks to help cool down prices.
#Saudi Stock Exchange Sets IPO Offer Price at Top End of Range - Bloomberg
Saudi Stock Exchange Sets IPO Offer Price at Top End of Range - Bloomberg
Saudi Tadawul Group Holding set the final price of its initial public offering at the top end of the range, giving the Riyadh-based bourse a valuation of 12.6 billion riyals ($3.4 billion).
Tadawul, as the exchange is known, set the price at 105 riyals per share after an institutional book-building process, according to a statement. The coverage ratio amounted to 121% of total shares on offer.
At that price, the share sale will raise as much as $1 billion for the exchange’s sole shareholder, the Public Investment Fund, from selling a 30% stake. In November, Tadawul had set the price range at 95 riyals to 105 riyals a share.
The offering comes amid an IPO boom, with companies around the world raising a record of more than $600 billion this year. Against that backdrop, Saudi Arabia has been among the leaders in the Middle East, listing private and family-owned firms as well as companies such as ACWA Power International, backed by the kingdom’s wealth fund, and Saudi Telecom Co.’s internet-services unit.
Saudi Tadawul Group Holding set the final price of its initial public offering at the top end of the range, giving the Riyadh-based bourse a valuation of 12.6 billion riyals ($3.4 billion).
Tadawul, as the exchange is known, set the price at 105 riyals per share after an institutional book-building process, according to a statement. The coverage ratio amounted to 121% of total shares on offer.
At that price, the share sale will raise as much as $1 billion for the exchange’s sole shareholder, the Public Investment Fund, from selling a 30% stake. In November, Tadawul had set the price range at 95 riyals to 105 riyals a share.
The offering comes amid an IPO boom, with companies around the world raising a record of more than $600 billion this year. Against that backdrop, Saudi Arabia has been among the leaders in the Middle East, listing private and family-owned firms as well as companies such as ACWA Power International, backed by the kingdom’s wealth fund, and Saudi Telecom Co.’s internet-services unit.
Most Gulf bourses tumble as Omicron spooks investors | Reuters
Most Gulf bourses tumble as Omicron spooks investors | Reuters
Most Gulf stock markets ended lower on Sunday, with the Saudi and Dubai indexes suffering their biggest single-day fall in nearly two years as fears of a potentially vaccine-resistant coronavirus variant spooked investors.
The World Health Organization (WHO) on Friday designated the Omicron coronavirus variant detected in South Africa as being "of concern" - the fifth variant to be given that designation. read more
Saudi Arabia's benchmark index (.TASI) slid 4.5%, dragged down by a 5.4% fall for Al Rajhi Bank (1120.SE) and a 6.2% decline for Saudi Basic Industries (2010.SE).
The kingdom halted flights from and to Malawi, Zambia, Madagascar, Angola, Seychelles, Mauritius and the Comoros Islands on Sunday owing to concerns related to the spread of the new COVID-19 strain, state news agency SPA reported on Twitter. read more
The latest panedmic developments also sent oil prices, a key catalyst for the Gulf's financial markets, plunging by $10 a barrel on Friday for their largest one-day drop since April 2020. The new variant added to concerns that an oil supply surplus could swell in the first quarter.
"Despite the previous positive experience of quick recovery in the oil market, investors should keep an eye on news of large-scale lockdowns in the short term," sais Farah Mourad, senior market analyst at XTB MENA.
Dubai's main share index (.DFMGI) declined 5.2%, its biggest intraday fall since March 2020, with most stocks in negative territory.
Blue-chip developer Emaar Properties (EMAR.DU) plunged 9.4%and budget carrier Air Arabia (AIRA.DU) retreated by 7.1%.
In Abu Dhabi, the index (.ADI) fell 1.8%, weighed down by a 3.3% drop for telecoms company Etisalat (ETISALAT.AD) and a 1.4% decline for First Abu Dhabi Bank (FAB.AD), the country's largest lender.
The United Arab Emirates has suspended entry for travellers from South Africa, Namibia, Lesotho, Eswatini, Zimbabwe, Botswana and Mozambique from Nov. 29 over concerns about the new coronavirus variant, the state news agency reported on Friday. read more
Even with new treatments for coronavirus infections, health care systems can be overwhelmed by rising cases, leaving governments with little option but to reimpose restrictions that would slow growth or even push economies back into recession. At the same time, those restrictions could worsen supply chain disruptions, adding to inflationary pressure even as growth slows, said Khatija Haque, head of research and chief economist at Emirates NBD.
In Qatar, the index (.QSI) slipped by 2.8% as investors shunned stocks across board, with petrochemicals group Industries Qatar (IQCD.QA) leading the losses.
Egypt's blue-chip index (.EGX30) lost 1.3%, with top lender Commercial International Bank (COMI.CA) retreating by 0.8%.
Most Gulf stock markets ended lower on Sunday, with the Saudi and Dubai indexes suffering their biggest single-day fall in nearly two years as fears of a potentially vaccine-resistant coronavirus variant spooked investors.
The World Health Organization (WHO) on Friday designated the Omicron coronavirus variant detected in South Africa as being "of concern" - the fifth variant to be given that designation. read more
Saudi Arabia's benchmark index (.TASI) slid 4.5%, dragged down by a 5.4% fall for Al Rajhi Bank (1120.SE) and a 6.2% decline for Saudi Basic Industries (2010.SE).
The kingdom halted flights from and to Malawi, Zambia, Madagascar, Angola, Seychelles, Mauritius and the Comoros Islands on Sunday owing to concerns related to the spread of the new COVID-19 strain, state news agency SPA reported on Twitter. read more
The latest panedmic developments also sent oil prices, a key catalyst for the Gulf's financial markets, plunging by $10 a barrel on Friday for their largest one-day drop since April 2020. The new variant added to concerns that an oil supply surplus could swell in the first quarter.
"Despite the previous positive experience of quick recovery in the oil market, investors should keep an eye on news of large-scale lockdowns in the short term," sais Farah Mourad, senior market analyst at XTB MENA.
Dubai's main share index (.DFMGI) declined 5.2%, its biggest intraday fall since March 2020, with most stocks in negative territory.
Blue-chip developer Emaar Properties (EMAR.DU) plunged 9.4%and budget carrier Air Arabia (AIRA.DU) retreated by 7.1%.
In Abu Dhabi, the index (.ADI) fell 1.8%, weighed down by a 3.3% drop for telecoms company Etisalat (ETISALAT.AD) and a 1.4% decline for First Abu Dhabi Bank (FAB.AD), the country's largest lender.
The United Arab Emirates has suspended entry for travellers from South Africa, Namibia, Lesotho, Eswatini, Zimbabwe, Botswana and Mozambique from Nov. 29 over concerns about the new coronavirus variant, the state news agency reported on Friday. read more
Even with new treatments for coronavirus infections, health care systems can be overwhelmed by rising cases, leaving governments with little option but to reimpose restrictions that would slow growth or even push economies back into recession. At the same time, those restrictions could worsen supply chain disruptions, adding to inflationary pressure even as growth slows, said Khatija Haque, head of research and chief economist at Emirates NBD.
In Qatar, the index (.QSI) slipped by 2.8% as investors shunned stocks across board, with petrochemicals group Industries Qatar (IQCD.QA) leading the losses.
Egypt's blue-chip index (.EGX30) lost 1.3%, with top lender Commercial International Bank (COMI.CA) retreating by 0.8%.
Virus Variant Sends Mideast Stocks Into Nosedive After Oil Slump - Bloomberg
Virus Variant Sends Mideast Stocks Into Nosedive After Oil Slump - Bloomberg
Middle East stocks took their cue from last week’s global sell-off as the emergence of a worrying new coronavirus variant reverberated through markets, sending every major index into retreat.
Dubai’s benchmark gauge dropped the most, tumbling 5.2% as of 3:40 p.m. local time, its sharpest loss since March 2020. Saudi Arabia’s main index fell 4.2%, the most since October 2020. There were declines in Israel, Egypt, Jordan, Kuwait, Qatar and Abu Dhabi.
Coming in the wake of Friday’s worldwide slump, the declines across the energy-rich markets of the Gulf threatened to undo some of the gains made this year amid a flurry of initial public offerings and a rally in oil prices. Brent, the benchmark grade for more than half the world’s oil, lost almost 12% Friday on concern the new Omicron Covid-19 variant will usher in fresh lockdowns and crimp air travel.
“We are going to mimic the sell-off we have seen in the global markets today. I don’t think it’s a surprise,” Ahmed Badr, head of the Middle East and North Africa at Credit Suisse AG in Dubai, said in a Bloomberg TV interview before markets began trading Sunday. “The question is how long” it will last and “what kind of opportunities it’s going to present in terms of buying opportunities,” he said.
As governments around the world announced measures to limit the variant’s spread, Israel on Saturday banned foreigners from entering the country for two weeks, while Saudi Arabia and the UAE suspended flights to and from South Africa -- where omicron was first identified -- as well as some other nations on the African continent.
The emergence of the omicron variant added a fresh ingredient to what was already stacking up to be a critical week for investors, with U.S. jobs data scheduled for release on Friday and the OPEC+ oil-producer group due to decide Thursday whether to enact a planned 400,000 barrel-a-day increase in output.
Mike Muller, the head of the Asia unit at Vitol, the world’s biggest independent oil trader, said Sunday he expects OPEC+ to take a cautious stance when it meets, amid signs that demand may be weakening in some markets going in to the winter months in Asia and Europe.
Dubai-listed Shuaa Capital PSC and Amlak Finance were the biggest losers in the Middle East region Sunday, slumping 10% each. In Saudi Arabia, Nama Chemicals Co. dropped the most, retreating 8.5%.
Middle East stocks took their cue from last week’s global sell-off as the emergence of a worrying new coronavirus variant reverberated through markets, sending every major index into retreat.
Dubai’s benchmark gauge dropped the most, tumbling 5.2% as of 3:40 p.m. local time, its sharpest loss since March 2020. Saudi Arabia’s main index fell 4.2%, the most since October 2020. There were declines in Israel, Egypt, Jordan, Kuwait, Qatar and Abu Dhabi.
Coming in the wake of Friday’s worldwide slump, the declines across the energy-rich markets of the Gulf threatened to undo some of the gains made this year amid a flurry of initial public offerings and a rally in oil prices. Brent, the benchmark grade for more than half the world’s oil, lost almost 12% Friday on concern the new Omicron Covid-19 variant will usher in fresh lockdowns and crimp air travel.
“We are going to mimic the sell-off we have seen in the global markets today. I don’t think it’s a surprise,” Ahmed Badr, head of the Middle East and North Africa at Credit Suisse AG in Dubai, said in a Bloomberg TV interview before markets began trading Sunday. “The question is how long” it will last and “what kind of opportunities it’s going to present in terms of buying opportunities,” he said.
As governments around the world announced measures to limit the variant’s spread, Israel on Saturday banned foreigners from entering the country for two weeks, while Saudi Arabia and the UAE suspended flights to and from South Africa -- where omicron was first identified -- as well as some other nations on the African continent.
The emergence of the omicron variant added a fresh ingredient to what was already stacking up to be a critical week for investors, with U.S. jobs data scheduled for release on Friday and the OPEC+ oil-producer group due to decide Thursday whether to enact a planned 400,000 barrel-a-day increase in output.
Mike Muller, the head of the Asia unit at Vitol, the world’s biggest independent oil trader, said Sunday he expects OPEC+ to take a cautious stance when it meets, amid signs that demand may be weakening in some markets going in to the winter months in Asia and Europe.
Dubai-listed Shuaa Capital PSC and Amlak Finance were the biggest losers in the Middle East region Sunday, slumping 10% each. In Saudi Arabia, Nama Chemicals Co. dropped the most, retreating 8.5%.
- Dubai’s DFM index down 5.2%, with all every stock in decline
- Real estate and construction stocks led the losses
- Emaar Properties PJSC contributed the most to the index retreat, decreasing 8.2%; SHUAA Capital PSC had the largest drop, falling 10%
- The move was the biggest since it fell 6.1% in March 2020
- Saudi Arabia’s Tadawul All Share Index lost 3.9%
- All sectors in the red, with the Consumer Durables and Apparel Index leading losses with a 5.7% slide
- Arabia Insurance Cooperative was down 7%; Takween Advanced Industries fell 7%
- The index slipped 7.2% this month. It’s still up 25% in 2021, heading for the best year since 2013
- Abu Dhabi’s ADX General Index fell 2.3%
- First Abu Dhabi Bank PJSC contributed most to the decline, down 3.6%
- Israel’s TA-35 was down 3%
- Bank Leumi Le-Israel BM contributed the most to the loss, sliding 3.6%
- All 35 shares fell
- The index is up 22% in 2021, heading for the best year in at least a decade
- The Qatar QE fell 2.8%, its biggest drop since April 2020
- Industries Qatar QSC lost 4.3% while Investment Holding Group dropped 4.9%
Virus Variant Sends Mideast Stocks Into Nosedive After Oil Slump - Bloomberg
Virus Variant Sends Mideast Stocks Into Nosedive After Oil Slump - Bloomberg
Middle East stocks are taking their cue from last week’s global sell-off as the emergence of a worrying new coronavirus variant reverberates through markets, sending every major index into retreat.
Dubai’s benchmark gauge dropped the most, tumbling 4.6% as of 12:54 p.m. local time, its sharpest loss since March 2020. Saudi Arabia’s main index fell 3.2%, the most since October 2020. There were declines in Israel, Egypt, Jordan, Kuwait, Qatar and Abu Dhabi.
Coming in the wake of Friday’s worldwide slump, the declines across the energy-rich markets of the Gulf threaten to undo some of the gains made this year amid a flurry of initial public offerings and a rally in oil prices. Brent, the benchmark grade for more than half the world’s oil, lost almost 12% Friday on concern the new Omicron Covid-19 variant will crimp air travel and usher in fresh lockdowns.
As governments around the world announced measures to limit the variant’s spread, Israel on Saturday banned foreigners from entering the country for two weeks, while Saudi Arabia and the UAE suspended flights to and from South Africa -- where Omicron was first identified -- as well as some other nations on the African continent.
“We are going to mimic the sell-off we have seen in the global markets today. I don’t think it’s a surprise,” Ahmed Badr, head of the Middle East and North Africa at Credit Suisse AG in Dubai, said in an interview to Bloomberg TV. “The question is how long” it will last and “what kind of opportunities it’s going to present in terms of buying opportunities,” he said.
Middle East stocks are taking their cue from last week’s global sell-off as the emergence of a worrying new coronavirus variant reverberates through markets, sending every major index into retreat.
Dubai’s benchmark gauge dropped the most, tumbling 4.6% as of 12:54 p.m. local time, its sharpest loss since March 2020. Saudi Arabia’s main index fell 3.2%, the most since October 2020. There were declines in Israel, Egypt, Jordan, Kuwait, Qatar and Abu Dhabi.
Coming in the wake of Friday’s worldwide slump, the declines across the energy-rich markets of the Gulf threaten to undo some of the gains made this year amid a flurry of initial public offerings and a rally in oil prices. Brent, the benchmark grade for more than half the world’s oil, lost almost 12% Friday on concern the new Omicron Covid-19 variant will crimp air travel and usher in fresh lockdowns.
As governments around the world announced measures to limit the variant’s spread, Israel on Saturday banned foreigners from entering the country for two weeks, while Saudi Arabia and the UAE suspended flights to and from South Africa -- where Omicron was first identified -- as well as some other nations on the African continent.
“We are going to mimic the sell-off we have seen in the global markets today. I don’t think it’s a surprise,” Ahmed Badr, head of the Middle East and North Africa at Credit Suisse AG in Dubai, said in an interview to Bloomberg TV. “The question is how long” it will last and “what kind of opportunities it’s going to present in terms of buying opportunities,” he said.
- Dubai’s DFM index down 4.6%, with all every stock in decline
- Real estate and construction stocks led the losses
- Emaar Properties PJSC contributed the most to the index decline, decreasing 8.15%; SHUAA Capital PSC had the largest drop, falling 10%
- Saudi Arabia’s Tadawul All Share Index fell 3.2%
- All sectors are in the red, with the Consumer Durables and Apparel Index leading loses -5.72%
- Arabia Insurance Cooperative down 7%; Takween Advanced Industries down 7%
- The index fell 7.2% this month. It’s still up 25% in 2021, heading for the best year since 2013
- Abu Dhabi’s ADX General Index fell 2.3%
- First Abu Dhabi Bank PJSC contributed most to the decline, down 3.6%
- Israel’s TA-35 was down 3%
- Bank Leumi Le-Israel BM contributed the most to the index, losing 3.6%
- All 35 shares fell
- The index is up 22% in 2021, heading for the best year in at least a decade
OPEC+ Likely to Be Cautious on Oil Demand at Meeting, Vitol Says - Bloomberg
OPEC+ Likely to Be Cautious on Oil Demand at Meeting, Vitol Says - Bloomberg
The oil producers’ group OPEC+ will likely take a cautious stance when deciding this coming week whether to go ahead with planned output increases after the emergence of a new coronavirus variant sent crude prices tumbling, according to Vitol Group.
There are signs that demand may be weakening in some markets going in to the winter months in Asia and Europe, said Mike Muller, the head of the Asia unit at Vitol, the world’s biggest independent oil trader. The new coronavirus variant will probably lead to more flight cancellations this week, he said.
U.S. crude plunged more than 10% Friday, dropping below $70 for the first time since September, and Brent had its seventh-steepest drop on record as news of the omicron variant spooked traders amid light trading after the American Thanksgiving holiday. OPEC+ was already voicing concern over excess supply after the U.S. and others announced plans to release oil from strategic reserves.
“OPEC+ have erred on the side of caution,” Muller said on a weekly webinar by Dubai consultancy Gulf Intelligence. “Post facto they’ve proven to be right. It is likely they will take into account these fundamentals and the possibility of a demand hit over the winter months.”
The oil producers’ group OPEC+ will likely take a cautious stance when deciding this coming week whether to go ahead with planned output increases after the emergence of a new coronavirus variant sent crude prices tumbling, according to Vitol Group.
There are signs that demand may be weakening in some markets going in to the winter months in Asia and Europe, said Mike Muller, the head of the Asia unit at Vitol, the world’s biggest independent oil trader. The new coronavirus variant will probably lead to more flight cancellations this week, he said.
U.S. crude plunged more than 10% Friday, dropping below $70 for the first time since September, and Brent had its seventh-steepest drop on record as news of the omicron variant spooked traders amid light trading after the American Thanksgiving holiday. OPEC+ was already voicing concern over excess supply after the U.S. and others announced plans to release oil from strategic reserves.
“OPEC+ have erred on the side of caution,” Muller said on a weekly webinar by Dubai consultancy Gulf Intelligence. “Post facto they’ve proven to be right. It is likely they will take into account these fundamentals and the possibility of a demand hit over the winter months.”
#UAE stocks slump on concerns over new COVID-19 variant | ZAWYA MENA Edition
UAE stocks slump on concerns over new COVID-19 variant | ZAWYA MENA Edition
UAE stock indices slumped in early trading on Sunday, dragged down by concerns over the new COVID-19 variant. A drop in global oil prices on Friday on similar concerns too weighed on investor sentiment in the oil-rich Gulf country.
Dubai's DFM General Index dropped more than 5 percent on open to 3,009 points, led by blue chip property developer Emaar Properties. The index however recovered slightly and was trading at 3,020.35 by 11:00 am.
On Friday, the UAE announced that it is suspending flights from 7 African countries due to the new coronavirus variant.
Sharjah-based Air Arabia fell nearly 10 percent to 1.39 dirhams in early trade. Airline and travel stocks were among the hardest hit in global trading on Friday as many countries announced new travel curbs and quarantine measures as they rushed protect their borders.
The Abu Dhabi Securities Exchange (ADX) index is also currently trading 2.5 percent lower at 8,243 points after plunging to 8,197 shortly after the opening bell.
Oil prices also fell sharply on Friday on travel restrictions and the fear of new mobility restrictions. Brent oil closed the week at under $73 per barrel, its lowest level in two and a half months. The UAE stock markets are strongly co-related to oil price fluctuations.
The World Health Organization designated the new highly mutated strain of Covid a "variant of concern" and gives it the Greek name Omicron.
UAE stock indices slumped in early trading on Sunday, dragged down by concerns over the new COVID-19 variant. A drop in global oil prices on Friday on similar concerns too weighed on investor sentiment in the oil-rich Gulf country.
Dubai's DFM General Index dropped more than 5 percent on open to 3,009 points, led by blue chip property developer Emaar Properties. The index however recovered slightly and was trading at 3,020.35 by 11:00 am.
On Friday, the UAE announced that it is suspending flights from 7 African countries due to the new coronavirus variant.
Sharjah-based Air Arabia fell nearly 10 percent to 1.39 dirhams in early trade. Airline and travel stocks were among the hardest hit in global trading on Friday as many countries announced new travel curbs and quarantine measures as they rushed protect their borders.
The Abu Dhabi Securities Exchange (ADX) index is also currently trading 2.5 percent lower at 8,243 points after plunging to 8,197 shortly after the opening bell.
Oil prices also fell sharply on Friday on travel restrictions and the fear of new mobility restrictions. Brent oil closed the week at under $73 per barrel, its lowest level in two and a half months. The UAE stock markets are strongly co-related to oil price fluctuations.
The World Health Organization designated the new highly mutated strain of Covid a "variant of concern" and gives it the Greek name Omicron.
Most Gulf bourses slide on fears over COVID-19 variant | Reuters
Most Gulf bourses slide on fears over COVID-19 variant | Reuters
Most Gulf stock markets fell sharply in early trade on Sunday, with the Saudi index suffering its biggest single-day fall in nearly two years as fears of a potentially vaccine-resistant coronavirus variant rattled investors.
The World Health Organization (WHO) on Friday designated a new COVID-19 variant detected in South Africa as being "of concern" - the fifth variant to be given the designation. read more
Saudi Arabia's benchmark index (.TASI) retreated by 4.4%, dragged down by a 3.4% fall for Al Rajhi Bank (1120.SE) and a 5.3% decline for Saudi National Bank (1180.SE).
The kingdom has halted flights from and to Malawi, Zambia, Madagascar, Angola, Seychelles, Mauritius And Comoros Islands, Reuters reported on Sunday, citing the state news agency. read more
Dubai's main share index (.DFMGI) tumbled 4.8% for its biggest intraday fall since March 2020, with blue-chip developer Emaar Properties (EMAR.DU) losing 7.9%.
Among other losers, budget airline Air Arabia (AIRA.DU) plunged 7.1%.
In Abu Dhabi, the index (.ADI) dropped 2.3%, hit by a 3.1% fall for First Abu Dhabi Bank (FAB.AD), the country's largest lender, and a 3% drop for telecoms company Etisalat (ETISALAT.AD).
The United Arab Emirates has suspended entry for travellers from South Africa, Namibia, Lesotho, Eswatini, Zimbabwe, Botswana and Mozambique from Nov. 29 owing to concerns about the new variant of the COVID-19 virus, the state news agency reported on Friday. read more
The latest panedmic developments also sent oil prices, a key catalyst for the Gulf's financial markets, plunging by $10 a barrel on Friday for their largest one-day drop since April 2020. The new variant added to concerns that an oil supply surplus could swell in the first quarter.
The Qatari benchmark (.QSI) declined more than 2% as stocks fell across the board.
On Saturday Qatar Airways said it has banned travellers from South Africa, Zimbabwe and Mozambique because of the spread of a new coronavirus variant.
Most Gulf stock markets fell sharply in early trade on Sunday, with the Saudi index suffering its biggest single-day fall in nearly two years as fears of a potentially vaccine-resistant coronavirus variant rattled investors.
The World Health Organization (WHO) on Friday designated a new COVID-19 variant detected in South Africa as being "of concern" - the fifth variant to be given the designation. read more
Saudi Arabia's benchmark index (.TASI) retreated by 4.4%, dragged down by a 3.4% fall for Al Rajhi Bank (1120.SE) and a 5.3% decline for Saudi National Bank (1180.SE).
The kingdom has halted flights from and to Malawi, Zambia, Madagascar, Angola, Seychelles, Mauritius And Comoros Islands, Reuters reported on Sunday, citing the state news agency. read more
Dubai's main share index (.DFMGI) tumbled 4.8% for its biggest intraday fall since March 2020, with blue-chip developer Emaar Properties (EMAR.DU) losing 7.9%.
Among other losers, budget airline Air Arabia (AIRA.DU) plunged 7.1%.
In Abu Dhabi, the index (.ADI) dropped 2.3%, hit by a 3.1% fall for First Abu Dhabi Bank (FAB.AD), the country's largest lender, and a 3% drop for telecoms company Etisalat (ETISALAT.AD).
The United Arab Emirates has suspended entry for travellers from South Africa, Namibia, Lesotho, Eswatini, Zimbabwe, Botswana and Mozambique from Nov. 29 owing to concerns about the new variant of the COVID-19 virus, the state news agency reported on Friday. read more
The latest panedmic developments also sent oil prices, a key catalyst for the Gulf's financial markets, plunging by $10 a barrel on Friday for their largest one-day drop since April 2020. The new variant added to concerns that an oil supply surplus could swell in the first quarter.
The Qatari benchmark (.QSI) declined more than 2% as stocks fell across the board.
On Saturday Qatar Airways said it has banned travellers from South Africa, Zimbabwe and Mozambique because of the spread of a new coronavirus variant.
Saturday, 27 November 2021
OPEC+ Leans Toward Ditching Output Hike as Oil Sinks on Virus - Bloomberg
OPEC+ Leans Toward Ditching Output Hike as Oil Sinks on Virus - Bloomberg
OPEC and its allies are increasingly inclined to ditch their plan to raise output next week, as a new virus variant triggered oil’s worst crash in over a year.
The 23-nation alliance led by Saudi Arabia is leaning toward abandoning a plan for a modest production hike scheduled for January when it meets on Dec. 1 to 2, according to delegates who declined to be identified. The group was already considering a pause after the U.S. and other consumers announced the release of emergency oil stockpiles on Monday.
“The emergence of a new Covid variant that could spawn renewed shutdowns and travel restrictions is precisely the type of change in market conditions that could cause ministers to deviate from their plan” to add barrels, said Bob McNally, president of consultant Rapidan Energy Group and a former White House official.
Crude futures sank more than 10% in both London and New York on fears that the new coronavirus variant identified in South Africa could scuttle the fragile economic recovery.
OPEC and its allies are increasingly inclined to ditch their plan to raise output next week, as a new virus variant triggered oil’s worst crash in over a year.
The 23-nation alliance led by Saudi Arabia is leaning toward abandoning a plan for a modest production hike scheduled for January when it meets on Dec. 1 to 2, according to delegates who declined to be identified. The group was already considering a pause after the U.S. and other consumers announced the release of emergency oil stockpiles on Monday.
“The emergence of a new Covid variant that could spawn renewed shutdowns and travel restrictions is precisely the type of change in market conditions that could cause ministers to deviate from their plan” to add barrels, said Bob McNally, president of consultant Rapidan Energy Group and a former White House official.
Crude futures sank more than 10% in both London and New York on fears that the new coronavirus variant identified in South Africa could scuttle the fragile economic recovery.
Oil’s Black Friday: Algos, Options Turn Tumble Into a Crash - Bloomberg video
Oil’s Black Friday: Algos, Options Turn Tumble Into a Crash - Bloomberg
Black Friday turned red very quickly for global oil markets.
The day after Thanksgiving has been choppy before -- fewer traders can mean more volatility -- but nothing like this year. The prospect of the freshly named Omicron variant of Covid derailing the world’s fight against the pandemic saw an early morning sell-off become a full-blown crash.
At the end, investors were rushing to cover short positions, analysts were ripping up forecasts and next week’s OPEC+ meeting was up in the air. West Texas Intermediate oil, the U.S. benchmark, closed 13% lower, the biggest decline since April 2020. Brent crude slumped 12%.
Oil had climbed fairly steadily through the year, staging a comeback as economic life gradually recovered from the pandemic, putting drivers back in cars and passengers into planes. Many analysts have global demand close to pre-pandemic levels above 100 million barrels a day. With OPEC+ keeping a tight grip on supply, several senior traders said $100 oil could be close.
But news of a fresh Covid-19 variant, which scientists fear could be more transmissible and less susceptible to vaccines than existing strains, sent familiar shivers through the market. Benchmark crude futures posted the biggest single-day plunge since the early days of the pandemic, showing just how fragile this recovery is.
The day after Thanksgiving has been choppy before -- fewer traders can mean more volatility -- but nothing like this year. The prospect of the freshly named Omicron variant of Covid derailing the world’s fight against the pandemic saw an early morning sell-off become a full-blown crash.
At the end, investors were rushing to cover short positions, analysts were ripping up forecasts and next week’s OPEC+ meeting was up in the air. West Texas Intermediate oil, the U.S. benchmark, closed 13% lower, the biggest decline since April 2020. Brent crude slumped 12%.
Oil had climbed fairly steadily through the year, staging a comeback as economic life gradually recovered from the pandemic, putting drivers back in cars and passengers into planes. Many analysts have global demand close to pre-pandemic levels above 100 million barrels a day. With OPEC+ keeping a tight grip on supply, several senior traders said $100 oil could be close.
But news of a fresh Covid-19 variant, which scientists fear could be more transmissible and less susceptible to vaccines than existing strains, sent familiar shivers through the market. Benchmark crude futures posted the biggest single-day plunge since the early days of the pandemic, showing just how fragile this recovery is.
Friday, 26 November 2021
Oil Crashes More Than $10 as New Covid-19 Variant Roils Markets - Bloomberg
Oil Crashes More Than $10 as New Covid-19 Variant Roils Markets - Bloomberg
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Oil settles down $10/bbl in largest daily drop since April 2020 | Reuters
Oil settles down $10/bbl in largest daily drop since April 2020 | Reuters
Oil prices plunged $10 a barrel on Friday, their largest one-day drop since April 2020, as a new variant of the coronavirus spooked investors and added to concerns that a supply surplus could swell in the first quarter.
Oil fell with global equities markets on fears the variant, could dampen economic growth and fuel demand.
The World Health Organization has designated the new variant, which it named Omicron, as "of concern," according to the South African health minister.
The United States, Canada, Britain, Guatemala and European countries are among those to restrict travel from southern Africa, where the variant was detected. read more
Brent crude settled down $9.50, or 11.6%, to $72.72 a barrel, a weekly decline of more than 8%.
U.S. West Texas Intermediate (WTI) crude settled down $10.24 on Friday, or 13.1%, at $68.15 a barrel, declining more than 10.4% on the week in high volume trading after Thursday's Thanksgiving holiday in the United States.
Oil prices plunged $10 a barrel on Friday, their largest one-day drop since April 2020, as a new variant of the coronavirus spooked investors and added to concerns that a supply surplus could swell in the first quarter.
Oil fell with global equities markets on fears the variant, could dampen economic growth and fuel demand.
The World Health Organization has designated the new variant, which it named Omicron, as "of concern," according to the South African health minister.
The United States, Canada, Britain, Guatemala and European countries are among those to restrict travel from southern Africa, where the variant was detected. read more
Brent crude settled down $9.50, or 11.6%, to $72.72 a barrel, a weekly decline of more than 8%.
U.S. West Texas Intermediate (WTI) crude settled down $10.24 on Friday, or 13.1%, at $68.15 a barrel, declining more than 10.4% on the week in high volume trading after Thursday's Thanksgiving holiday in the United States.
OPEC+ monitoring new virus variant, some concerned over outlook - sources | Reuters
OPEC+ monitoring new virus variant, some concerned over outlook - sources | Reuters
OPEC+ is monitoring developments around the new coronavirus variant, sources said on Friday, with some expressing concern that it may worsen the oil market outlook less than a week before a meeting to set policy.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, is already facing a release of oil stocks led by the United States to try to cool prices. Still, a source said Russia, a key OPEC+ member, was not concerned about the virus variant yet.
OPEC+ has resisted U.S. calls to do more to lower oil prices, continuing to unwind last year's record output curbs by adding 400,000 barrels of supply per day every month since August. Next week's meeting will discuss January's output.
Global authorities reacted with alarm to news of the B.1.1.529 variant, with the EU, Britain and India among those announcing stricter border controls. Oil plunged more than 10%, the largest one-day drop since April 2020. read more
OPEC+ is monitoring developments around the new coronavirus variant, sources said on Friday, with some expressing concern that it may worsen the oil market outlook less than a week before a meeting to set policy.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, is already facing a release of oil stocks led by the United States to try to cool prices. Still, a source said Russia, a key OPEC+ member, was not concerned about the virus variant yet.
OPEC+ has resisted U.S. calls to do more to lower oil prices, continuing to unwind last year's record output curbs by adding 400,000 barrels of supply per day every month since August. Next week's meeting will discuss January's output.
Global authorities reacted with alarm to news of the B.1.1.529 variant, with the EU, Britain and India among those announcing stricter border controls. Oil plunged more than 10%, the largest one-day drop since April 2020. read more
Oil plunges $10/bbl on new coronavirus variant concerns | Reuters
Oil plunges $10/bbl on new coronavirus variant concerns | Reuters
Oil prices plunged about $10 a barrel on Friday, their largest one-day drop since April 2020, as a new COVID-19 variant spooked investors and added to concerns that a supply surplus could swell in the first quarter.
Oil fell with global equities markets on fears the variant could dampen economic growth and fuel demand.
Britain and European countries have restricted travel from southern Africa, where the variant was detected, as researchers sought to find out if the mutation was vaccine-resistant. read more The World Health Organization has designated the new variant as "of concern," according to the South African health minister.
Brent crude fell $9.21, or 11.2%, to $73.02 a barrel by 11:51 a.m. EST (1651 GMT).
U.S. West Texas Intermediate (WTI) crude was down $10.10, or 12.9%, at $68.29 a barrel, after Thursday's Thanksgiving holiday in the United States.
Both contracts were heading for their fifth week of losses and their steepest falls in absolute terms since April 2020, when WTI turned negative for the first time.
Oil prices plunged about $10 a barrel on Friday, their largest one-day drop since April 2020, as a new COVID-19 variant spooked investors and added to concerns that a supply surplus could swell in the first quarter.
Oil fell with global equities markets on fears the variant could dampen economic growth and fuel demand.
Britain and European countries have restricted travel from southern Africa, where the variant was detected, as researchers sought to find out if the mutation was vaccine-resistant. read more The World Health Organization has designated the new variant as "of concern," according to the South African health minister.
Brent crude fell $9.21, or 11.2%, to $73.02 a barrel by 11:51 a.m. EST (1651 GMT).
U.S. West Texas Intermediate (WTI) crude was down $10.10, or 12.9%, at $68.29 a barrel, after Thursday's Thanksgiving holiday in the United States.
Both contracts were heading for their fifth week of losses and their steepest falls in absolute terms since April 2020, when WTI turned negative for the first time.
Oil prices dive to two-month lows, spooked by new COVID variant | Reuters
Oil prices dive to two-month lows, spooked by new COVID variant | Reuters
Oil prices dived more than 5% on Friday, hitting a two-month low as a new COVID-19 variant spooked investors and added to concerns that a supply surplus could swell in the first quarter.
Oil fell with global equities markets on fears the variant, which Britain said scientists considered the most significant found to date, could restrict travel and dampen economic growth and fuel demand. read more
Brent crude fell $4.68, or 5.6%, to $77.54 a barrel by 1035 GMT.
U.S. West Texas Intermediate (WTI) crude was down $5.20, or 6.6%, at $73.19 a barrel, after Thursday's Thanksgiving holiday in the United States.
Oil prices dived more than 5% on Friday, hitting a two-month low as a new COVID-19 variant spooked investors and added to concerns that a supply surplus could swell in the first quarter.
Oil fell with global equities markets on fears the variant, which Britain said scientists considered the most significant found to date, could restrict travel and dampen economic growth and fuel demand. read more
Brent crude fell $4.68, or 5.6%, to $77.54 a barrel by 1035 GMT.
U.S. West Texas Intermediate (WTI) crude was down $5.20, or 6.6%, at $73.19 a barrel, after Thursday's Thanksgiving holiday in the United States.
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