Brent crude falls on renewed lockdowns, stronger dollar | Reuters
Oil prices steadied on Monday after strong gains last week, as tough coronavirus lockdowns around the world renewed concerns about global fuel demand, while a stronger U.S. dollar also weighed on prices.
Brent fell 33 cents to settle at $55.66 a barrel, after bouncing off the session low of $54.99. U.S. West Texas Intermediate (WTI) rose a cent to settle at $52.25 a barrel.
“The renewed concerns about demand due to very high numbers of new corona cases and further mobility restrictions, plus the stronger U.S. dollar, are generating selling pressure,” Commerzbank analyst Eugen Weinberg said.
Worldwide coronavirus cases surpassed 90 million, according to a Reuters tally.
Monday 11 January 2021
Creditors consider action against Air Seychelles in Etihad debt saga | Reuters
Creditors consider action against Air Seychelles in Etihad debt saga | Reuters
Holders of around $70 million in troubled bonds issued on behalf of Air Seychelles are considering options including enforcement against the African carrier, according to sources and documents.
The action under consideration is the latest twist in broader creditor efforts to recover $1.2 billion in funds owed by Abu Dhabi’s Etihad Airways and related airlines including Air Seychelles.
Etihad is state-owned Air Seychelles’ second-biggest shareholder.
Air Seychelles, which has been hit particularly hard by the coronavirus crisis, was part of a consortium comprising Etihad and related airlines that borrowed the $1.2 billion through a special purpose vehicle in 2015 and 2016.
Holders of around $70 million in troubled bonds issued on behalf of Air Seychelles are considering options including enforcement against the African carrier, according to sources and documents.
The action under consideration is the latest twist in broader creditor efforts to recover $1.2 billion in funds owed by Abu Dhabi’s Etihad Airways and related airlines including Air Seychelles.
Etihad is state-owned Air Seychelles’ second-biggest shareholder.
Air Seychelles, which has been hit particularly hard by the coronavirus crisis, was part of a consortium comprising Etihad and related airlines that borrowed the $1.2 billion through a special purpose vehicle in 2015 and 2016.
MIDEAST DEBT- #Oman raising up to $2 bln loan with mostly regional banks - sources | Reuters
MIDEAST DEBT-Oman raising up to $2 bln loan with mostly regional banks - sources | Reuters
Oman is looking to raise up to $2 billion with a loan arranged mostly by local and regional lenders, as international banks tread carefully due to the deterioration of its credit profile, sources said.
Oman started talks with banks for a new loan of at least $1 billion in November, sources told Reuters at the time, as it geared up for heavy debt redemptions.
It is now working with a group of banks to raise a $1.1 billion facility which could go up to $2 billion in size depending on market appetite, two sources familiar with the matter said.
The banks leading the deal are HSBC, Mashreqbank, Gulf International Bank, Bank Muscat and Bank Dhofar, said the sources.
Oman is looking to raise up to $2 billion with a loan arranged mostly by local and regional lenders, as international banks tread carefully due to the deterioration of its credit profile, sources said.
Oman started talks with banks for a new loan of at least $1 billion in November, sources told Reuters at the time, as it geared up for heavy debt redemptions.
It is now working with a group of banks to raise a $1.1 billion facility which could go up to $2 billion in size depending on market appetite, two sources familiar with the matter said.
The banks leading the deal are HSBC, Mashreqbank, Gulf International Bank, Bank Muscat and Bank Dhofar, said the sources.
#SaudiArabia tries to lure multinationals from #Dubai | Financial Times
Saudi Arabia tries to lure multinationals from Dubai | Financial Times
Saudi Arabia’s Crown Prince Mohammed bin Salman is spearheading a campaign to convince multinationals from Google to Siemens to relocate their regional headquarters from Dubai to Riyadh.
Under the initiative, dubbed “Programme HQ”, authorities are offering incentives to blue-chip companies in sectors such as IT, finance and oil services to move to Riyadh, according to consultants advising the government and executives who have heard the pitch.
The aim of the initiative is to bolster foreign investment and support the crown prince’s ambitious vision to establish the kingdom as a regional business hub. “They are looking at the regional HQs, not the operating units, so they basically want the senior leadership,” said an executive briefed on the plans. “I think it’s about the optics: ‘we are a serious player, we are the largest market, we want the companies that do business here to be based here’”.
The campaign underscores how Saudi Arabia, the Gulf’s biggest economy, is using its financial clout to step up competition with Dubai, the regional trade, finance and tourism hub, as Prince Mohammed drives the development of a string of megaprojects. Virtually all big companies operating in the oil-rich Gulf have their regional headquarters in the United Arab Emirates. The Saudi move comes as Gulf economies are struggling because of the pandemic and the collapse of the oil price.
#SaudiArabia Aims to Raise Over $5 Billion in Bond-Market Return - Bloomberg
Saudi Arabia Aims to Raise Over $5 Billion in Bond-Market Return - Bloomberg
Saudi Arabia is preparing to return to global capital markets with a bond sale aimed at raising about $5 billion to help cover financing needs heightened by last year’s slide in oil prices, according to people with knowledge of the plan.
The kingdom is close to hiring banks for a sale earmarked for as early as this month, the people said, declining to be identified because the matter is private. No final decision on the timing has been made and the country may still put off the sale should market conditions deteriorate, they said. The Finance Ministry in Riyadh didn’t immediately respond to requests for comment.
Though the price of oil, Saudi Arabia’s lifeblood, has rebounded about 45% to more than $55 a barrel since the end of October, it remains below the $80 level the country needs to balance its budget at a time when global Covid-19 infections show little sign of slowing. Saudi Arabia still expects to narrow its fiscal deficit this year after spending cuts reduced its funding needs.
Saudi Arabia is preparing to return to global capital markets with a bond sale aimed at raising about $5 billion to help cover financing needs heightened by last year’s slide in oil prices, according to people with knowledge of the plan.
The kingdom is close to hiring banks for a sale earmarked for as early as this month, the people said, declining to be identified because the matter is private. No final decision on the timing has been made and the country may still put off the sale should market conditions deteriorate, they said. The Finance Ministry in Riyadh didn’t immediately respond to requests for comment.
Though the price of oil, Saudi Arabia’s lifeblood, has rebounded about 45% to more than $55 a barrel since the end of October, it remains below the $80 level the country needs to balance its budget at a time when global Covid-19 infections show little sign of slowing. Saudi Arabia still expects to narrow its fiscal deficit this year after spending cuts reduced its funding needs.
Mideast Stocks: Major markets gain as non-oil sector stocks shine | Reuters
Mideast Stocks: Major markets gain as non-oil sector stocks shine | Reuters
Major stocks in the Gulf region strengthened on Monday, bucking the global trend, as shares in non-oil sectors took centre stage with markets in the United Arab Emirates (UAE) primarily driving the gains.
The non-oil sector in the Middle East’s tourism and business hub Dubai returned to growth in December, although the expansion was modest as employment fell and sentiment for the new year was subdued, the seasonally adjusted HIS Markit Dubai Purchasing Managers’ Index survey showed.
Dubai has been hit hard by the coronavirus crisis and its economy is expected to have contracted by 6.2% in 2020.
Dubai’s main share index tacked on 0.9%, driven mainly by a 1.8% gain in the emirate’s biggest bank Emirates NBD. Sharia-compliant lender Dubai Islamic Bank also advanced, adding 0.8%.
In Abu Dhabi, the benchmark firmed 1.2%, helped by a more than 2% gain in UAE’s largest lender First Abu Dhabi Bank (FAB).
Real estate firm Aldar Properties was also among the top performers in the benchmark, gaining 1.9%.
Saudi Arabia’s benchmark index finished the session up 0.6%, buoyed by a 0.7% rise in lender Al Rajhi Bank.
Most cement producers firmed on the day after Saudi Crown Prince Mohammed bin Salman unveiled plans on Sunday to build a zero-carbon city at NEOM, the first major construction project for the $500 billion flagship business zone aimed at diversifying the economy of the world’s largest oil exporter.
Saudi Cement put on 2.6%, while Tabuk Cement finished 6.2% higher and Yanbu Cement added 4.5%.
The Qatari index gained for a third consecutive session, tacking on 1.1%.
The Gulf’s biggest lender Qatar National Bank firmed 1.2% and was the best performer on the benchmark.
Major stocks in the Gulf region strengthened on Monday, bucking the global trend, as shares in non-oil sectors took centre stage with markets in the United Arab Emirates (UAE) primarily driving the gains.
The non-oil sector in the Middle East’s tourism and business hub Dubai returned to growth in December, although the expansion was modest as employment fell and sentiment for the new year was subdued, the seasonally adjusted HIS Markit Dubai Purchasing Managers’ Index survey showed.
Dubai has been hit hard by the coronavirus crisis and its economy is expected to have contracted by 6.2% in 2020.
Dubai’s main share index tacked on 0.9%, driven mainly by a 1.8% gain in the emirate’s biggest bank Emirates NBD. Sharia-compliant lender Dubai Islamic Bank also advanced, adding 0.8%.
In Abu Dhabi, the benchmark firmed 1.2%, helped by a more than 2% gain in UAE’s largest lender First Abu Dhabi Bank (FAB).
Real estate firm Aldar Properties was also among the top performers in the benchmark, gaining 1.9%.
Saudi Arabia’s benchmark index finished the session up 0.6%, buoyed by a 0.7% rise in lender Al Rajhi Bank.
Most cement producers firmed on the day after Saudi Crown Prince Mohammed bin Salman unveiled plans on Sunday to build a zero-carbon city at NEOM, the first major construction project for the $500 billion flagship business zone aimed at diversifying the economy of the world’s largest oil exporter.
Saudi Cement put on 2.6%, while Tabuk Cement finished 6.2% higher and Yanbu Cement added 4.5%.
The Qatari index gained for a third consecutive session, tacking on 1.1%.
The Gulf’s biggest lender Qatar National Bank firmed 1.2% and was the best performer on the benchmark.
M&A deals involving MENA hit $70.3bln - Refinitiv | ZAWYA MENA Edition
M&A deals involving MENA hit $70.3bln - Refinitiv | ZAWYA MENA Edition
The value of announced M&A transactions with any MENA involvement reached $70.3 billion during 2020, according to global data provider Refinitiv.
This makes 2020 the fourth highest annual total of all time, despite falling 47 percent in value from the record high achieved in 2019 with Saudi Aramco’s agreement to buy a stake in Saudi Basic Industries Corporation (SABIC)
Aramco acquired 70 percent stake in SABIC from the Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, for a total purchase price of SAR 259.125 billion ($ 69.1 billion), equating to SAR 123.39 price per share.
According to Refinitiv data, $52.0 billion worth of target M&A deals were announced from 550 deals, making it the second-highest year in deal value.
Inbound M&A in MENA saw a record year of $24.1 billion in deal volume and 260 deals announced, a 41 percent increase in deal volume and 64 percent increase in number of deals from 2019.
The value of announced M&A transactions with any MENA involvement reached $70.3 billion during 2020, according to global data provider Refinitiv.
This makes 2020 the fourth highest annual total of all time, despite falling 47 percent in value from the record high achieved in 2019 with Saudi Aramco’s agreement to buy a stake in Saudi Basic Industries Corporation (SABIC)
Aramco acquired 70 percent stake in SABIC from the Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, for a total purchase price of SAR 259.125 billion ($ 69.1 billion), equating to SAR 123.39 price per share.
Inbound M&A in MENA saw a record year of $24.1 billion in deal volume and 260 deals announced, a 41 percent increase in deal volume and 64 percent increase in number of deals from 2019.
Assets of #UAE's first ETF climb above Dh50m just six months after its listing | The National
Assets of UAE's first ETF climb above Dh50m just six months after its listing | The National
Assets managed by the Chimera S&P UAE Shariah Exchange Traded Fund climbed to more than Dh50 million ($13.6m) just six months after the UAE’s first ETF started trading on the country’s two stock exchanges.
The ETF now ranks as the third-largest in the Middle East and North Africa region, Abu Dhabi-based asset management firm Chimera Capital said in a statement on Monday.
The net asset value of both share classes of the ETF increased by more than 19 per cent since listing, Chimera Capital, which manages the fund said.
“Strong performance and robust inflows have accelerated Chimera S&P UAE Shariah ETF’s rise, helping us to reach this significant milestone in such a short space of time,” Seif Fikry, chief executive of Chimera Capital, said.
“There is a growing appetite for diversified investments among GCC investors and we are enabling them to capitalise on the economic prospects of the UAE with this ETF.”
Assets managed by the Chimera S&P UAE Shariah Exchange Traded Fund climbed to more than Dh50 million ($13.6m) just six months after the UAE’s first ETF started trading on the country’s two stock exchanges.
The ETF now ranks as the third-largest in the Middle East and North Africa region, Abu Dhabi-based asset management firm Chimera Capital said in a statement on Monday.
The net asset value of both share classes of the ETF increased by more than 19 per cent since listing, Chimera Capital, which manages the fund said.
“Strong performance and robust inflows have accelerated Chimera S&P UAE Shariah ETF’s rise, helping us to reach this significant milestone in such a short space of time,” Seif Fikry, chief executive of Chimera Capital, said.
“There is a growing appetite for diversified investments among GCC investors and we are enabling them to capitalise on the economic prospects of the UAE with this ETF.”
#Qatar’s Al Khalij Shares Rise After $2.2 Billion Share-Swap Deal - Bloomberg
Qatar’s Al Khalij Shares Rise After $2.2 Billion Share-Swap Deal - Bloomberg
Al Khalij Commercial Bank PQSC shares surged Sunday after it agreed with Masraf Al Rayan QSC for a share-swap combination that will create Qatar’s second-largest lender.
The shares climbed as much as 8.7% in Doha, the biggest intraday gain in more than two months. Masraf Al Rayan shares rose 0.8%.
Masraf Al Rayan plans to issue 0.5 securities for every Al Khalij share for the merger. The deal is valued at 8.2 billion riyals ($2.2 billion), according to Bloomberg calculations.
Combining with Al Khalij will see Al Rayan leapfrog its next two largest competitors by giving it $47 billion in assets -- still six times less than that of Qatar National Bank QPSC. Qatar has 2.5 million people being served by about 20 local and international banks, leaving smaller lenders at a disadvantage unless they can find a niche or competitive edge.
The combination will “create a larger and stronger financial institution with a strong financial position and significant liquidity available to support Qatar’s economic growth,” the lenders said Thursday.
Al Khalij Commercial Bank PQSC shares surged Sunday after it agreed with Masraf Al Rayan QSC for a share-swap combination that will create Qatar’s second-largest lender.
The shares climbed as much as 8.7% in Doha, the biggest intraday gain in more than two months. Masraf Al Rayan shares rose 0.8%.
Masraf Al Rayan plans to issue 0.5 securities for every Al Khalij share for the merger. The deal is valued at 8.2 billion riyals ($2.2 billion), according to Bloomberg calculations.
Combining with Al Khalij will see Al Rayan leapfrog its next two largest competitors by giving it $47 billion in assets -- still six times less than that of Qatar National Bank QPSC. Qatar has 2.5 million people being served by about 20 local and international banks, leaving smaller lenders at a disadvantage unless they can find a niche or competitive edge.
The combination will “create a larger and stronger financial institution with a strong financial position and significant liquidity available to support Qatar’s economic growth,” the lenders said Thursday.
#Dubai Aerospace Enterprise hires banks for dollar bonds - document | Reuters
Dubai Aerospace Enterprise hires banks for dollar bonds - document | Reuters
Dubai Aerospace Enterprise (DAE), one of the world’s biggest aircraft leasing companies, has hired banks including Goldman Sachs and Morgan Stanley to arrange fixed income investor calls ahead of a planned issuance of U.S. dollar-denominated bonds, a document showed on Monday.
DAE, owned by the Investment Corporation of Dubai, is looking to sell benchmark bonds with maturities of four and/or seven years, according to the document issued by one of the banks leading the deal.
Benchmark bonds are generally meant to be upwards of $500 million.
Dubai Aerospace Enterprise (DAE), one of the world’s biggest aircraft leasing companies, has hired banks including Goldman Sachs and Morgan Stanley to arrange fixed income investor calls ahead of a planned issuance of U.S. dollar-denominated bonds, a document showed on Monday.
DAE, owned by the Investment Corporation of Dubai, is looking to sell benchmark bonds with maturities of four and/or seven years, according to the document issued by one of the banks leading the deal.
Benchmark bonds are generally meant to be upwards of $500 million.
#UAE's largest bank issues $500m sukuk, first globally in 2021 - Arabianbusiness
UAE's largest bank issues $500m sukuk, first globally in 2021 - Arabianbusiness
First Abu Dhabi Bank (FAB), the UAE's largest bank, on Monday announced it has issued the first sukuk globally in 2021.
The bank said it has issued the lowest-ever yield on any five-year MENA bank US dollar issuance with its $500 million sukuk.
Issued through FAB Sukuk Company Limited, the offering attracted a total order book of about $1.5 billion which represents a three times over-subscription rate.
FAB said in a statement that the sukuk attracted "high quality Islamic and conventional investors from the Middle East, Asia, UK and Europe".
First Abu Dhabi Bank (FAB), the UAE's largest bank, on Monday announced it has issued the first sukuk globally in 2021.
The bank said it has issued the lowest-ever yield on any five-year MENA bank US dollar issuance with its $500 million sukuk.
Issued through FAB Sukuk Company Limited, the offering attracted a total order book of about $1.5 billion which represents a three times over-subscription rate.
FAB said in a statement that the sukuk attracted "high quality Islamic and conventional investors from the Middle East, Asia, UK and Europe".
Credit Suisse expands Saudi operations after securing banking license | Reuters
Credit Suisse expands Saudi operations after securing banking license | Reuters
Credit Suisse said on Monday it had opened a branch in Riyadh to offer wealthy Saudi Arabian clients a greater range of financial services, after obtaining a local banking license in 2019.
The bank, which has been offering investment banking, asset management and other services in Saudi Arabia since 2005, will now provide services such as lending, foreign exchange and treasury products, account management and deposits, it said in a statement.
Western financial institutions have been seeking opportunities in Saudi Arabia since the government unveiled plans to privatise state assets and introduced reforms to attract foreign capital under its Vision 2030 programme to reduce the economy’s dependence on oil.
Credit Suisse said on Monday it had opened a branch in Riyadh to offer wealthy Saudi Arabian clients a greater range of financial services, after obtaining a local banking license in 2019.
The bank, which has been offering investment banking, asset management and other services in Saudi Arabia since 2005, will now provide services such as lending, foreign exchange and treasury products, account management and deposits, it said in a statement.
Western financial institutions have been seeking opportunities in Saudi Arabia since the government unveiled plans to privatise state assets and introduced reforms to attract foreign capital under its Vision 2030 programme to reduce the economy’s dependence on oil.
#SaudiArabia's Oil Production Cuts Will End Up Protecting Revenue - Bloomberg
Saudi Arabia's Oil Production Cuts Will End Up Protecting Revenue - Bloomberg
Saudi Arabia’s decision last week to deliver a surprise cut of 1 million barrels a day in its crude production shocked the oil market.
In abandoning a policy of collective responsibility and letting other members of the OPEC+ grouping increase output while reducing its own, the kingdom took the entire burden of balancing supply and demand on its shoulders. While choking off its own oil wells, Saudi Arabia is offering frenemies like Russia (and enemies like Iran) a chance to boost their market share on its own dime.
That decision makes little sense if you think about Saudi Arabia’s policy in terms of a conventional trade-off between maximizing oil revenue or market share — but that framing should be treated with caution, anyway. For the foreseeable future, Riyadh is always going to be happy to sacrifice market share as long as it can prop up revenue. With crude demand heading rapidly toward terminal decline, it may even be able to cut output without losing its position.
The conventional dilemma goes like this: If Saudi Arabia pumps more crude it will increase market share. The increased supply, though, may weigh so heavily on prices that revenue ends up falling instead. On the other hand, reducing production and market share may paradoxically increase revenue, as inflexible demand pushes up the per-barrel price.
Saudi Arabia’s decision last week to deliver a surprise cut of 1 million barrels a day in its crude production shocked the oil market.
In abandoning a policy of collective responsibility and letting other members of the OPEC+ grouping increase output while reducing its own, the kingdom took the entire burden of balancing supply and demand on its shoulders. While choking off its own oil wells, Saudi Arabia is offering frenemies like Russia (and enemies like Iran) a chance to boost their market share on its own dime.
That decision makes little sense if you think about Saudi Arabia’s policy in terms of a conventional trade-off between maximizing oil revenue or market share — but that framing should be treated with caution, anyway. For the foreseeable future, Riyadh is always going to be happy to sacrifice market share as long as it can prop up revenue. With crude demand heading rapidly toward terminal decline, it may even be able to cut output without losing its position.
The conventional dilemma goes like this: If Saudi Arabia pumps more crude it will increase market share. The increased supply, though, may weigh so heavily on prices that revenue ends up falling instead. On the other hand, reducing production and market share may paradoxically increase revenue, as inflexible demand pushes up the per-barrel price.
NBK Capital says 2021 could be best year for Mideast private equity investments | Reuters
NBK Capital says 2021 could be best year for Mideast private equity investments | Reuters
This year could be the best yet for private equity investments in the Middle East and North Africa (MENA) region as valuations are down, regional economies are bottoming out and fewer competitors are left, a leading private equity firm said.
“This has the potential to be the sort of the golden age of private capital investing in the region,” Yaser Moustafa, senior managing director of NBK Capital Partners, which manages $1.2 billion in assets, told Reuters on Monday.
“The investments we make this year will yield the best returns we’ve ever had.”
He said there were a handful of competitors left in the industry compared with 50 when NBK Capital Partners began its business in 2006.
Abraaj was the largest buyout fund in the region until it collapsed in 2018 due to investor concerns about the management of its $1 billion healthcare fund.
This year could be the best yet for private equity investments in the Middle East and North Africa (MENA) region as valuations are down, regional economies are bottoming out and fewer competitors are left, a leading private equity firm said.
“This has the potential to be the sort of the golden age of private capital investing in the region,” Yaser Moustafa, senior managing director of NBK Capital Partners, which manages $1.2 billion in assets, told Reuters on Monday.
“The investments we make this year will yield the best returns we’ve ever had.”
He said there were a handful of competitors left in the industry compared with 50 when NBK Capital Partners began its business in 2006.
Abraaj was the largest buyout fund in the region until it collapsed in 2018 due to investor concerns about the management of its $1 billion healthcare fund.
#Dubai non-oil sector returns to modest growth in December - PMI | Reuters
Dubai non-oil sector returns to modest growth in December - PMI | Reuters
Dubai’s non-oil sector returned to growth in December, but the expansion was modest as employment fell and sentiment for the new year was subdued, a survey showed on Monday.
The seasonally adjusted IHS Markit Dubai Purchasing Managers’ Index (PMI) rose to 51 in December from 49 in November, rising above the 50-mark that separates growth from contraction for the first time since September.
“An increase in output and new orders led to a renewed improvement in the health of the Dubai non-oil sector in December,” said David Owen, economist at IHS Markit.
“At 51.0, however, the index signalled only a slight expansion in Dubai’s economy, as falling employment, lower stocks of purchases and shorter delivery times all acted as drags on the headline reading,” he said.
The Middle East tourism and business hub has been hit hard by the coronavirus crisis, with the emirate’s economy estimated to contract by 6.2% in 2020.
Dubai’s non-oil sector returned to growth in December, but the expansion was modest as employment fell and sentiment for the new year was subdued, a survey showed on Monday.
The seasonally adjusted IHS Markit Dubai Purchasing Managers’ Index (PMI) rose to 51 in December from 49 in November, rising above the 50-mark that separates growth from contraction for the first time since September.
“An increase in output and new orders led to a renewed improvement in the health of the Dubai non-oil sector in December,” said David Owen, economist at IHS Markit.
“At 51.0, however, the index signalled only a slight expansion in Dubai’s economy, as falling employment, lower stocks of purchases and shorter delivery times all acted as drags on the headline reading,” he said.
The Middle East tourism and business hub has been hit hard by the coronavirus crisis, with the emirate’s economy estimated to contract by 6.2% in 2020.
Oil prices fall on renewed coronavirus concerns as China cases climb | Reuters
Oil prices fall on renewed coronavirus concerns as China cases climb | Reuters
Brent crude oil prices fell by $1 per barrel on Monday, hit by renewed concerns about global fuel demand amid tough coronavirus lockdowns in Europe and new curbs on movement in China, the world’s second-largest oil user, where infections jumped.
Brent crude oil futures were down 78 cents, or 1.4%, at $55.21 a barrel by 0758 GMT, after falling $1 to a session low of $54.99 earlier. Brent rose in the previous four sessions.
U.S. West Texas Intermediate (WTI) slipped 52 cents, or 1%, to $51.72 a barrel. WTI rose to its highest in nearly a year on Friday.
“Covid hot spots flaring again in Asia, with 11 million people (in) lockdowns in China’s Hebei province...along with a touch of Fed policy uncertainty, has triggered some profit taking out of the gates,” Stephen Innes, chief global market strategist at Axi, said in a note.
Brent crude oil prices fell by $1 per barrel on Monday, hit by renewed concerns about global fuel demand amid tough coronavirus lockdowns in Europe and new curbs on movement in China, the world’s second-largest oil user, where infections jumped.
Brent crude oil futures were down 78 cents, or 1.4%, at $55.21 a barrel by 0758 GMT, after falling $1 to a session low of $54.99 earlier. Brent rose in the previous four sessions.
U.S. West Texas Intermediate (WTI) slipped 52 cents, or 1%, to $51.72 a barrel. WTI rose to its highest in nearly a year on Friday.
“Covid hot spots flaring again in Asia, with 11 million people (in) lockdowns in China’s Hebei province...along with a touch of Fed policy uncertainty, has triggered some profit taking out of the gates,” Stephen Innes, chief global market strategist at Axi, said in a note.
MIDEAST STOCKS-Major Gulf markets little changed in early trade | Nasdaq
MIDEAST STOCKS-Major Gulf markets little changed in early trade | Nasdaq
Major stock markets in the Gulf were little changed on Monday in the absence of new factors to encourage buying, with Dubai on track to end two sessions of gains.
Saudi Arabia's benchmark index .TASI edged up 0.2%, supported by a 0.3% rise in Al Rajhi Bank 1120.SE and a 1.6% increase in Saudi Cement 3030.SE.
Most cement producers traded in positive territory with Tabuk Cement 3090.SE leading the gains, after the kingdom's crown prince unveiled plans on Sunday to build a zero-carbon city at NEOM, the first major construction project for the $500 billion flagship business zone aimed at diversifying the economy of the world's largest oil exporter.
Tabuk Cement surged 7.5% to become the top percentage gainer on the index.
Prince Mohammed bin Salman told reporters in the northwestern city of Al Ula that the project was the result of three years of preparation, adding that its infrastructure would cost $100-200 billion.
Dubai's main share index .DFMGI lost 0.1%, with blue-chip developer Emaar Properties EMAR.DU falling 1%.
In Abu Dhabi, the index .ADI added 0.1%, helped by a 0.4% gain in First Abu Dhabi Bank (FAB) FAB.AD.
FAB, the largest lender in the United Arab Emirates, sold sukuk, or Islamic bonds, worth $500 million on Thursday, as Gulf issuers start tapping debt investors in what is likely to be another record year for regional bonds.
The Qatari index .QSI eased 0.1%, with the petrochemical maker Industries Qatar IQCD.QA shedding 0.9%.
Major stock markets in the Gulf were little changed on Monday in the absence of new factors to encourage buying, with Dubai on track to end two sessions of gains.
Saudi Arabia's benchmark index .TASI edged up 0.2%, supported by a 0.3% rise in Al Rajhi Bank 1120.SE and a 1.6% increase in Saudi Cement 3030.SE.
Most cement producers traded in positive territory with Tabuk Cement 3090.SE leading the gains, after the kingdom's crown prince unveiled plans on Sunday to build a zero-carbon city at NEOM, the first major construction project for the $500 billion flagship business zone aimed at diversifying the economy of the world's largest oil exporter.
Tabuk Cement surged 7.5% to become the top percentage gainer on the index.
Prince Mohammed bin Salman told reporters in the northwestern city of Al Ula that the project was the result of three years of preparation, adding that its infrastructure would cost $100-200 billion.
Dubai's main share index .DFMGI lost 0.1%, with blue-chip developer Emaar Properties EMAR.DU falling 1%.
In Abu Dhabi, the index .ADI added 0.1%, helped by a 0.4% gain in First Abu Dhabi Bank (FAB) FAB.AD.
FAB, the largest lender in the United Arab Emirates, sold sukuk, or Islamic bonds, worth $500 million on Thursday, as Gulf issuers start tapping debt investors in what is likely to be another record year for regional bonds.
The Qatari index .QSI eased 0.1%, with the petrochemical maker Industries Qatar IQCD.QA shedding 0.9%.