Oil ends lower, retreating from recent gains as COVID cases rise | Reuters
Oil prices fell on Wednesday, pulling back from recent gains, on concerns that rising global COVID-19 will hamper global fuel demand.
The market did find some support from weekly inventory figures that showed a drop in crude inventories and rising refinery production.
Brent crude prices settled at $56.06 a barrel, down 52 cents, or 0.9%. U.S. West Texas Intermediate (WTI) settled at $52.91 a barrel, falling 30 cents, or 0.6%.
Fuel demand has rebounded from last spring’s shock falloff as the COVID-19 pandemic worsened, but governments continue to place restrictions on travel that will restrain energy demand for months, analysts said.
Wednesday 13 January 2021
#Qatar’s rapprochement restores balance in the Middle East | Financial Times
Qatar’s rapprochement restores balance in the Middle East | Financial Times
The embrace last week between Tamim bin Hamad al-Thani, the emir of Qatar, and Mohammed bin Salman, crown prince and de facto ruler of Saudi Arabia, ended the three-year blockade of the tiny gas-rich emirate by its powerful neighbours, led by the Saudis and the United Arab Emirates.
The embrace last week between Tamim bin Hamad al-Thani, the emir of Qatar, and Mohammed bin Salman, crown prince and de facto ruler of Saudi Arabia, ended the three-year blockade of the tiny gas-rich emirate by its powerful neighbours, led by the Saudis and the United Arab Emirates.
The terms of the deal will only become fully known as they are implemented. But already the agreement — a tactical rapprochement rather than a reconciliation between embittered rivals — looks like a score-draw for Qatar against heavy odds. The deal restores the air, land and sea links to the emirate that were severed in June 2017, and lifts the trade embargo.
At the outset, the blockade was menacing. It had the initial if brief support of President Donald Trump. It looked as if Saudi Arabia planned to invade Qatar. The threat receded after the Pentagon reminded the Trump White House that Qatar was host to Al Udeid, the largest American air base in the wider Middle East, policing an arc of crisis from Yemen to Afghanistan.
Instead, the anti-Qatar crusaders came up with a laundry list of unrealistic demands. These included: the closure of Al Jazeera, the Qatari broadcaster; ending support for Islamist movements; abjuring the emirate’s links with Iran and alliance with Turkey, which has a military base in the emirate; and submitting to its neighbours’ monitoring for 12 years.
#Qatar Raises Carbon Capture Ambitions, Touting Green Credentials - Bloomberg
Qatar Raises Carbon Capture Ambitions, Touting Green Credentials - Bloomberg
Qatar Petroleum will build facilities capable of capturing and storing more than 7 million tons per year of carbon dioxide in the tiny peninsular nation by 2030, the company said in a statement.
The world’s biggest liquefied natural gas producer is increasingly touting its environmental credentials. LNG is less polluting than oil and coal but suppliers are still facing pressure to reduce emissions as nations seek to meet strict climate targets.
Energy Minister Saad Sherida Al-Kaabi previously announced plans for a 2 million ton per year facility in 2019.
In November, QP signed the world’s first long-term LNG deal that details pollution. Each cargo shipped to the buyer in Singapore will detail how much carbon was emitted in its production.
In addition to carbon capture projects, QP plans to reduce the amount of greenhouse gases it emits from its LNG plants by 25% and upstream operations by 75% by 2030, according to the statement.
Qatar Petroleum will build facilities capable of capturing and storing more than 7 million tons per year of carbon dioxide in the tiny peninsular nation by 2030, the company said in a statement.
The world’s biggest liquefied natural gas producer is increasingly touting its environmental credentials. LNG is less polluting than oil and coal but suppliers are still facing pressure to reduce emissions as nations seek to meet strict climate targets.
Energy Minister Saad Sherida Al-Kaabi previously announced plans for a 2 million ton per year facility in 2019.
In November, QP signed the world’s first long-term LNG deal that details pollution. Each cargo shipped to the buyer in Singapore will detail how much carbon was emitted in its production.
In addition to carbon capture projects, QP plans to reduce the amount of greenhouse gases it emits from its LNG plants by 25% and upstream operations by 75% by 2030, according to the statement.
Oil steadies as U.S. inventory fall tempers demand woes | Reuters
Oil steadies as U.S. inventory fall tempers demand woes | Reuters
Oil prices were broadly steady on Wednesday as rising global COVID-19 cases took the shine off an earlier rally spurred by a bigger-than-expected drop in U.S. crude inventories.
Brent crude prices were up 11 cents, or 0.2%, at $56.69 a barrel by 1311 GMT. Prices rose as far as $57.42 a barrel earlier in the session, the highest since Feb. 24.
The next milestone for Brent prices is a rise above $60, a level not seen since late January 2020.
U.S. West Texas Intermediate (WTI) was up 22 cents, or 0.4%, at $53.43, after hitting a session high of $53.93, its highest since Feb. 20.
Oil prices were broadly steady on Wednesday as rising global COVID-19 cases took the shine off an earlier rally spurred by a bigger-than-expected drop in U.S. crude inventories.
Brent crude prices were up 11 cents, or 0.2%, at $56.69 a barrel by 1311 GMT. Prices rose as far as $57.42 a barrel earlier in the session, the highest since Feb. 24.
The next milestone for Brent prices is a rise above $60, a level not seen since late January 2020.
U.S. West Texas Intermediate (WTI) was up 22 cents, or 0.4%, at $53.43, after hitting a session high of $53.93, its highest since Feb. 20.
Mideast Stocks: Most major markets end higher on oil price gains | 路透
Mideast Stocks: Most major markets end higher on oil price gains | 路透
Most major Gulf stock markets finished higher on Wednesday as oil prices jumped after industry data showed a bigger-than-expected drop in U.S. crude inventories, before rising global COVID-19 infections capped the crude price gains.
Brent crude rose to a session high of $57.42 a barrel, their highest since Feb. 24, before prices steadied. [O/R]
In Dubai, the main index firmed 0.8% for its fifth straight session of gains, with the emirate’s biggest bank Emirates NBD putting on 1.3% to finish as the best performer in the bechmark.
Blue-chip developer Emaar Properties advanced 1.5%, while sharia-compliant lender Dubai Islamic Bank tacked on 1%.
The Abu Dhabi index also strengthened for a fifth successive trading day, adding 0.6%.
The gains in the benchmark were mainly driven by United Arab Emirates’ largest lender First Abu Dhabi Bank (FAB), which added 1.2% on the day.
FAB on Tuesday said it has issued a 1.5 billion yuan ($232.20 million) five-year bond at 3.15%, the year’s first yuan debt in the Formosa bond market.
Saudi Arabia’s benchmark index gained 0.3%, aided primarily by a 3.2% rise in healthcare firm Dr. Sulaiman Al-Habib Medical Services Group Co.
Saudi Arabia’s biggest lender National Commercial Bank firmed 2% and was among the best performers in the index.
In Qatar, the index gained 0.3%, helped by a 1.8% gain in Industries Qatar.
Qatar National Bank (QNB), the Gulf’s biggest bank by assets, strengthened 0.2% after it on Tuesday reported 2020 net profit of 12 billion riyals ($3.30 billion), down from 14.4 billion riyals in 2019.
The profit was slightly above the 11.7 billion riyal mean forecast from seven analysts, based on Refinitiv data.
Most major Gulf stock markets finished higher on Wednesday as oil prices jumped after industry data showed a bigger-than-expected drop in U.S. crude inventories, before rising global COVID-19 infections capped the crude price gains.
Brent crude rose to a session high of $57.42 a barrel, their highest since Feb. 24, before prices steadied. [O/R]
In Dubai, the main index firmed 0.8% for its fifth straight session of gains, with the emirate’s biggest bank Emirates NBD putting on 1.3% to finish as the best performer in the bechmark.
Blue-chip developer Emaar Properties advanced 1.5%, while sharia-compliant lender Dubai Islamic Bank tacked on 1%.
The Abu Dhabi index also strengthened for a fifth successive trading day, adding 0.6%.
The gains in the benchmark were mainly driven by United Arab Emirates’ largest lender First Abu Dhabi Bank (FAB), which added 1.2% on the day.
FAB on Tuesday said it has issued a 1.5 billion yuan ($232.20 million) five-year bond at 3.15%, the year’s first yuan debt in the Formosa bond market.
Saudi Arabia’s benchmark index gained 0.3%, aided primarily by a 3.2% rise in healthcare firm Dr. Sulaiman Al-Habib Medical Services Group Co.
Saudi Arabia’s biggest lender National Commercial Bank firmed 2% and was among the best performers in the index.
In Qatar, the index gained 0.3%, helped by a 1.8% gain in Industries Qatar.
Qatar National Bank (QNB), the Gulf’s biggest bank by assets, strengthened 0.2% after it on Tuesday reported 2020 net profit of 12 billion riyals ($3.30 billion), down from 14.4 billion riyals in 2019.
The profit was slightly above the 11.7 billion riyal mean forecast from seven analysts, based on Refinitiv data.
Emirates airline sees full fleet returning to the skies this year | Reuters
Emirates airline sees full fleet returning to the skies this year | Reuters
Emirates expects its full fleet of Airbus A380s and Boeing 777s to be in use by the end of the year as the rollout of coronavirus vaccines renews confidence in travel.
Several countries have started or announced programs to inoculate residents, with some believing they can vaccinate a majority of their population this year.
Emirates President Tim Clark has repeatedly said a vaccination program would be vital to any recovery for the travel industry, which saw demand collapse in 2020.
The 71-year-old Clark, who has delayed his retirement to tackle the crisis, said on Wednesday he did not think a recent wave of new infections and restrictions in some countries would further impede the recovery.
“I think we always anticipated a bumpy patch,” he told Reuters in an interview.
Emirates expects its full fleet of Airbus A380s and Boeing 777s to be in use by the end of the year as the rollout of coronavirus vaccines renews confidence in travel.
Several countries have started or announced programs to inoculate residents, with some believing they can vaccinate a majority of their population this year.
Emirates President Tim Clark has repeatedly said a vaccination program would be vital to any recovery for the travel industry, which saw demand collapse in 2020.
The 71-year-old Clark, who has delayed his retirement to tackle the crisis, said on Wednesday he did not think a recent wave of new infections and restrictions in some countries would further impede the recovery.
“I think we always anticipated a bumpy patch,” he told Reuters in an interview.
#Dubai partner 'very happy' with Trump Org despite Capitol chaos | Reuters
Dubai partner 'very happy' with Trump Org despite Capitol chaos | Reuters
Donald Trump’s business partner in Dubai on Wednesday said he was interested in expanding their commercial relationship despite the storming of the U.S. Capitol last week.
Trump has faced stinging criticism after encouraging supporters on Jan. 6 to march on the Capitol as Congress met to certify his defeat to Democrat Joe Biden. That led to a violent invasion during which five people died.
“Our relationship with the Trump Organisation, and especially with (Trump’s son and Trump Organisation executive) Eric Trump and his team, is fabulous and we have no intention to cancel or to change that relation,” DAMAC Properties Chairman Hussain Sajwani told Reuters.
Dubai developer DAMAC owns the Middle East’s only Trump-branded golf course, the Trump International Golf Club Dubai, which opened in 2017 and is operated by the Trump Organisation.
Donald Trump’s business partner in Dubai on Wednesday said he was interested in expanding their commercial relationship despite the storming of the U.S. Capitol last week.
Trump has faced stinging criticism after encouraging supporters on Jan. 6 to march on the Capitol as Congress met to certify his defeat to Democrat Joe Biden. That led to a violent invasion during which five people died.
“Our relationship with the Trump Organisation, and especially with (Trump’s son and Trump Organisation executive) Eric Trump and his team, is fabulous and we have no intention to cancel or to change that relation,” DAMAC Properties Chairman Hussain Sajwani told Reuters.
Dubai developer DAMAC owns the Middle East’s only Trump-branded golf course, the Trump International Golf Club Dubai, which opened in 2017 and is operated by the Trump Organisation.
SMEs warned not to over-extend themselves following #UAE retail group's collapse - Arabianbusiness
SMEs warned not to over-extend themselves following UAE retail group's collapse - Arabianbusiness
Small and medium-sized businesses have been warned not to over-extend themselves and risk going under following the collapse of a major retail operator in the UAE.
Earlier this week, Arabian Business revealed how Gulf Greetings General Trading emailed suppliers last Friday saying it had closed down operations with ‘immediate effect’. The shock announcement has hit the company’s suppliers hard with some claiming they are owed ‘millions’.
The closure of the retail group, which owned The Toy Store and ran Hallmark in the Gulf, follows on from the closure of Sprii UAE, an online shopping platform, which also left suppliers out of pocket albeit to smaller amounts. In Sprii’s case, a liquidator has been appointed, though those owed money don’t expect much back.
Small and medium-sized businesses have been warned not to over-extend themselves and risk going under following the collapse of a major retail operator in the UAE.
Earlier this week, Arabian Business revealed how Gulf Greetings General Trading emailed suppliers last Friday saying it had closed down operations with ‘immediate effect’. The shock announcement has hit the company’s suppliers hard with some claiming they are owed ‘millions’.
The closure of the retail group, which owned The Toy Store and ran Hallmark in the Gulf, follows on from the closure of Sprii UAE, an online shopping platform, which also left suppliers out of pocket albeit to smaller amounts. In Sprii’s case, a liquidator has been appointed, though those owed money don’t expect much back.
#Dubai Loan Standoff Is Said to Pit State Company Against Lenders - Bloomberg
Dubai Loan Standoff Is Said to Pit State Company Against Lenders - Bloomberg
A unit of the main conglomerate controlled by Dubai’s ruler is facing off against creditors including Mashreqbank PSC after telling them it won’t fully repay a loan that was restructured in 2013, according to people familiar with the matter.
The $1.2 billion syndicated facility is linked to Dubai Holding Investments Group LLC’s acquisition in 2007 of a 10% stake in U.S. hedge fund Och-Ziff Capital Management Group, since renamed Sculptor Capital Management, the people said, asking not be named because of the sensitivity of the matter.
DHIG extended the maturity by seven years in 2013 as part of a restructuring after it was unable to service the loan in the immediate aftermath of the global financial crisis and its fallout in Dubai. The company is part of Dubai Holding, the conglomerate owned by the emirate’s ruler, which controls assets from leisure developer Meraas to luxury hotel chain Jumeirah Group.
Mashreq, the emirate’s third-biggest bank, has asked Dubai Holding to bail out its subsidiary by repaying the loan in full, the people said. It wasn’t clear which lenders were also holding out.
Dubai Holding, Sculptor and Mashreq declined to comment.
A unit of the main conglomerate controlled by Dubai’s ruler is facing off against creditors including Mashreqbank PSC after telling them it won’t fully repay a loan that was restructured in 2013, according to people familiar with the matter.
The $1.2 billion syndicated facility is linked to Dubai Holding Investments Group LLC’s acquisition in 2007 of a 10% stake in U.S. hedge fund Och-Ziff Capital Management Group, since renamed Sculptor Capital Management, the people said, asking not be named because of the sensitivity of the matter.
DHIG extended the maturity by seven years in 2013 as part of a restructuring after it was unable to service the loan in the immediate aftermath of the global financial crisis and its fallout in Dubai. The company is part of Dubai Holding, the conglomerate owned by the emirate’s ruler, which controls assets from leisure developer Meraas to luxury hotel chain Jumeirah Group.
Mashreq, the emirate’s third-biggest bank, has asked Dubai Holding to bail out its subsidiary by repaying the loan in full, the people said. It wasn’t clear which lenders were also holding out.
Dubai Holding, Sculptor and Mashreq declined to comment.
DAE raises $1.25 billion by selling four, seven-year dollar bonds - document | Reuters
DAE raises $1.25 billion by selling four, seven-year dollar bonds - document | Reuters
Aircraft leasing firm Dubai Aviation Enterprise has raised $1.25 billion through the sale of four and seven year unsecured dollar bonds, according to a document seen by Reuters.
It sold $500 million in four-year bonds for 2.625% and $750 million worth of seven year bonds were sold at a coupon rate of 3.375%, the document showed.
Goldman Sachs, Morgan Stanley, Credit Agricole, Emirates NBD Capital and Fifth Third Securities were active bookrunners for the deal, the document said.
Aircraft leasing firm Dubai Aviation Enterprise has raised $1.25 billion through the sale of four and seven year unsecured dollar bonds, according to a document seen by Reuters.
It sold $500 million in four-year bonds for 2.625% and $750 million worth of seven year bonds were sold at a coupon rate of 3.375%, the document showed.
Goldman Sachs, Morgan Stanley, Credit Agricole, Emirates NBD Capital and Fifth Third Securities were active bookrunners for the deal, the document said.
Arabtec appoints advisers to sell subsidiaries ahead of liquidation | The National
Arabtec appoints advisers to sell subsidiaries ahead of liquidation | The National
Arabtec is planning to sell its two subsidiaries Target Engineering and Arabtec Engineering Services (AES) as the construction giant faces liquidation.
The move will help the company in “protecting the value of liquidation assets in the interest of all of its creditors", Arabtec said in a statement to the Dubai Financial Market on Wednesday.
The company’s shareholders in September authorised the board to file for liquidation due to its untenable financial position.
“In the event a sale of any of the company’s subsidiaries or their assets is agreed, any such sale will be subject to the approvals and ratifications as may be required under applicable UAE laws,” the contractor said.
Arabtec has appointed corporate advisory firm deNovo to advise on the potential sale of Target while Lumina Capital will advise on the sale of AES.
The company, which started its operations in 1975, also has other subsidiaries including Gulf Steel Industries, Emirates Falcon Electromechanical company, Austrian Arabian Readymix Concrete company and Arabtec Precast.
Arabtec is planning to sell its two subsidiaries Target Engineering and Arabtec Engineering Services (AES) as the construction giant faces liquidation.
The move will help the company in “protecting the value of liquidation assets in the interest of all of its creditors", Arabtec said in a statement to the Dubai Financial Market on Wednesday.
The company’s shareholders in September authorised the board to file for liquidation due to its untenable financial position.
“In the event a sale of any of the company’s subsidiaries or their assets is agreed, any such sale will be subject to the approvals and ratifications as may be required under applicable UAE laws,” the contractor said.
Arabtec has appointed corporate advisory firm deNovo to advise on the potential sale of Target while Lumina Capital will advise on the sale of AES.
The company, which started its operations in 1975, also has other subsidiaries including Gulf Steel Industries, Emirates Falcon Electromechanical company, Austrian Arabian Readymix Concrete company and Arabtec Precast.
Tellimer's Malik: Massive Pent-Up Demand for Leisure Tourism in #Dubai - Bloomberg
Tellimer's Malik: Massive Pent-Up Demand for Leisure Tourism in Dubai - Bloomberg
Hasnain Malik, Tellimer, Head of Equity Research discusses new wave of Covid cases in U.A.E. He speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East" (Source: Bloomberg)
QLM to Offer 210 Million Shares in IPO - Bloomberg
QLM to Offer 210 Million Shares in IPO - Bloomberg
Chirag Doshi, group chief investment officer at Qatar Insurance Company, discusses the initial public offering of QLM Life & Medical Insurance Co., how the lifting of the embargo on Qatar by some of its neighbors impacts his business and his dividend policy. He speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
#Saudi Aramco Seeks $7.5 Billion Loan for Pipeline Investors - Bloomberg
Saudi Aramco Seeks $7.5 Billion Loan for Pipeline Investors - Bloomberg
Saudi Aramco is lining up a loan of about $7.5 billion for potential investors in its oil pipelines, according to people familiar with the matter.
The world’s biggest oil producer has begun talks with lenders to secure favorable terms for the funding package that would then be offered to investors, the people said, asking not to be identified as the information is private. The discussions are occurring in parallel with the sale of a stake in a pipeline unit, which could raise about $10 billion for Aramco, the people said.
A pipeline deal would be the first phase of Aramco’s strategy to raise money by selling leasing rights or stakes in non-core assets, mirroring what Abu Dhabi National Oil Co. has done in the past few years. The Saudi company is working with advisers including JPMorgan Chase & Co. and Moelis & Co., the Wall Street investment bank that’s also involved in the Adnoc deals.
Aramco declined to comment.
Saudi Aramco is lining up a loan of about $7.5 billion for potential investors in its oil pipelines, according to people familiar with the matter.
The world’s biggest oil producer has begun talks with lenders to secure favorable terms for the funding package that would then be offered to investors, the people said, asking not to be identified as the information is private. The discussions are occurring in parallel with the sale of a stake in a pipeline unit, which could raise about $10 billion for Aramco, the people said.
A pipeline deal would be the first phase of Aramco’s strategy to raise money by selling leasing rights or stakes in non-core assets, mirroring what Abu Dhabi National Oil Co. has done in the past few years. The Saudi company is working with advisers including JPMorgan Chase & Co. and Moelis & Co., the Wall Street investment bank that’s also involved in the Adnoc deals.
Aramco declined to comment.
Major Gulf markets firm in early trade; #Qatar dips | Reuters
Major Gulf markets firm in early trade; Qatar dips | Reuters
Most major Gulf stock markets firmed on Wednesday against the backdrop of rising oil prices, with indexes in the United Arab Emirates on track to extend gains for fifth straight session.
Oil prices gained more than 1% after industry data showed a bigger than expected drop in inventories. Brent crude was up 79 cents, or 1.4%, at $57.37 a barrel by 0420 GMT, having risen 1.7% in the previous session. [O/R]
Saudi Arabia’s benchmark index gained 0.1%, supported by a 3.8% jump for SABIC Agri-Nutrients Co.
In Dubai, the main index rose 0.3%, with blue-chip developer Emaar Properties advancing 1.2% and sharia-compliant lender Dubai Islamic Bank up 0.4%.
The Abu Dhabi index added 0.2%, helped by a 0.4% rise for First Abu Dhabi Bank (FAB).
FAB, the United Arab Emirates’ largest lender, on Tuesday said it has issued a 1.5 billion yuan ($232.20 million) five-year bond at 3.15%, the year’s first yuan debt in the Formosa bond market.
In Qatar, the index eased 0.1%, hit by a 1.5% fall for Qatar Gas Transport.
Qatar National Bank (QNB), however, edged up 0.1%.
QNB, the Gulf’s biggest bank by assets, on Tuesday reported a 2020 net profit of 12 billion riyals ($3.30 billion), down from 14.4 billion riyals in 2019.
The profit was slightly above the 11.7 billion riyal mean forecast from seven analysts, based on Refinitiv data.
Most major Gulf stock markets firmed on Wednesday against the backdrop of rising oil prices, with indexes in the United Arab Emirates on track to extend gains for fifth straight session.
Oil prices gained more than 1% after industry data showed a bigger than expected drop in inventories. Brent crude was up 79 cents, or 1.4%, at $57.37 a barrel by 0420 GMT, having risen 1.7% in the previous session. [O/R]
Saudi Arabia’s benchmark index gained 0.1%, supported by a 3.8% jump for SABIC Agri-Nutrients Co.
In Dubai, the main index rose 0.3%, with blue-chip developer Emaar Properties advancing 1.2% and sharia-compliant lender Dubai Islamic Bank up 0.4%.
The Abu Dhabi index added 0.2%, helped by a 0.4% rise for First Abu Dhabi Bank (FAB).
FAB, the United Arab Emirates’ largest lender, on Tuesday said it has issued a 1.5 billion yuan ($232.20 million) five-year bond at 3.15%, the year’s first yuan debt in the Formosa bond market.
In Qatar, the index eased 0.1%, hit by a 1.5% fall for Qatar Gas Transport.
Qatar National Bank (QNB), however, edged up 0.1%.
QNB, the Gulf’s biggest bank by assets, on Tuesday reported a 2020 net profit of 12 billion riyals ($3.30 billion), down from 14.4 billion riyals in 2019.
The profit was slightly above the 11.7 billion riyal mean forecast from seven analysts, based on Refinitiv data.
Oil prices rally further after crude stocks fall more than expected | Reuters
Oil prices rally further after crude stocks fall more than expected | Reuters
Oil prices were higher on Wednesday, with U.S. crude gaining for the seventh straight day, after industry data showed a bigger than expected drop in inventories and investors shrugged off rising new deaths and infections in the pandemic.
U.S. West Texas Intermediate (WTI) was up 34 cents, or 0.6%, at $53.55 a barrel by 0805 GMT after gaining nearly 2% on Tuesday. Brent crude was up 36 cents, or 0.6%, at $$56.94, having risen 1.7% in the previous session.
Both benchmarks are trading at the highest since February, before the coronavirus outbreak in China began spreading across the world and billions of people went into lockdown to prevent a pandemic that is now in a deadlier second wave.
Prices are shrugging off the latest developments in Europe and the United States where death tolls and new infections keep rising, with the focus on rollouts of vaccines, however patchy.
Oil prices were higher on Wednesday, with U.S. crude gaining for the seventh straight day, after industry data showed a bigger than expected drop in inventories and investors shrugged off rising new deaths and infections in the pandemic.
U.S. West Texas Intermediate (WTI) was up 34 cents, or 0.6%, at $53.55 a barrel by 0805 GMT after gaining nearly 2% on Tuesday. Brent crude was up 36 cents, or 0.6%, at $$56.94, having risen 1.7% in the previous session.
Both benchmarks are trading at the highest since February, before the coronavirus outbreak in China began spreading across the world and billions of people went into lockdown to prevent a pandemic that is now in a deadlier second wave.
Prices are shrugging off the latest developments in Europe and the United States where death tolls and new infections keep rising, with the focus on rollouts of vaccines, however patchy.
Biggest Oil Trader Sees No Travel Rebound Until Third Quarter - Bloomberg
Biggest Oil Trader Sees No Travel Rebound Until Third Quarter - Bloomberg
Growth in oil demand will hinge on jet-fuel use, which is unlikely to recover until the third quarter of the year, said Mike Muller, head of trader Vitol SA’s operations in Asia.
Jet fuel has been the oil product hardest hit by the coronavirus pandemic in Asia. Demand in the region for other oil products such as diesel and gasoline was also affected but has rebounded. Vitol is the world’s biggest independent oil trader.
Global oil use dropped last year by 9 million barrels a day but should recoup more than 6 million in 2021, Muller said Wednesday at the Gulf Intelligence online conference. “The world has never seen such a transition; managing that will be very challenging,” he said. “The biggest single demand that needs to return is aviation fuel.”
Growth in oil demand will hinge on jet-fuel use, which is unlikely to recover until the third quarter of the year, said Mike Muller, head of trader Vitol SA’s operations in Asia.
Jet fuel has been the oil product hardest hit by the coronavirus pandemic in Asia. Demand in the region for other oil products such as diesel and gasoline was also affected but has rebounded. Vitol is the world’s biggest independent oil trader.
Global oil use dropped last year by 9 million barrels a day but should recoup more than 6 million in 2021, Muller said Wednesday at the Gulf Intelligence online conference. “The world has never seen such a transition; managing that will be very challenging,” he said. “The biggest single demand that needs to return is aviation fuel.”
The #UAE Warns U.S. Shale Companies Against Pumping More Oil - Bloomberg
The UAE Warns U.S. Shale Companies Against Pumping More Oil - Bloomberg
Any attempt by U.S. shale and other oil producers to boost output this year will backfire and lead to lower prices, according to the energy minister of the United Arab Emirates.
Oil prices have surged in the past two months with the development of coronavirus vaccines. They jumped again last week when Saudi Arabia said it would unilaterally cut crude output by 1 million barrels a day in February and March, a move the kingdom described as a “gift” to other producers.
That’s led the International Energy Agency to state that shale firms -- whose output plunged last year when the virus spread and demand for energy crashed -- would again be profitable.
With demand still fragile, they “are wise not to jump the gun and overproduce during the recovery year,” UAE Energy Minister Suhail Al Mazrouei said in an interview on Tuesday before a forum organized by Gulf Intelligence, a Dubai-based consultant. They “need to be careful not to flood the market.”
Any attempt by U.S. shale and other oil producers to boost output this year will backfire and lead to lower prices, according to the energy minister of the United Arab Emirates.
Oil prices have surged in the past two months with the development of coronavirus vaccines. They jumped again last week when Saudi Arabia said it would unilaterally cut crude output by 1 million barrels a day in February and March, a move the kingdom described as a “gift” to other producers.
That’s led the International Energy Agency to state that shale firms -- whose output plunged last year when the virus spread and demand for energy crashed -- would again be profitable.
With demand still fragile, they “are wise not to jump the gun and overproduce during the recovery year,” UAE Energy Minister Suhail Al Mazrouei said in an interview on Tuesday before a forum organized by Gulf Intelligence, a Dubai-based consultant. They “need to be careful not to flood the market.”
Saudis Slash Oil Supply to Some Buyers After Pledged OPEC+ Curbs - Bloomberg
Saudis Slash Oil Supply to Some Buyers After Pledged OPEC+ Curbs - Bloomberg
Saudi Arabia slashed crude oil supplies to at least nine refiners in Asia and Europe after the kingdom volunteered to cut its production by 1 million barrels a day for February and March.
Aramco will supply less crude as part of long-term contracts next month, giving some Asian processors as much as 20%-30% less than they had sought, according to company officials who received the notices but asked not to be identified as the information is private. A European refiner that typically buys small volumes from Saudi Arabia will not get any cargoes for February.
Supply cuts were focused on heavier grades such as Arab Medium and Arab Heavy, the officials said. State-owned Aramco declined to comment when contacted on the matter.
Saudi Arabia’s move to sell less oil comes amid an overall decline in crude demand across Asia due to peak refinery maintenance season from March to April. Separately, the resurgence of Covid-19 infections across Asia and Europe, and the declaration of a state of emergency in parts of Japan and Malaysia are also reducing fuel consumption and keeping refinery run rates at low levels.
Saudi Arabia slashed crude oil supplies to at least nine refiners in Asia and Europe after the kingdom volunteered to cut its production by 1 million barrels a day for February and March.
Aramco will supply less crude as part of long-term contracts next month, giving some Asian processors as much as 20%-30% less than they had sought, according to company officials who received the notices but asked not to be identified as the information is private. A European refiner that typically buys small volumes from Saudi Arabia will not get any cargoes for February.
Supply cuts were focused on heavier grades such as Arab Medium and Arab Heavy, the officials said. State-owned Aramco declined to comment when contacted on the matter.
Saudi Arabia’s move to sell less oil comes amid an overall decline in crude demand across Asia due to peak refinery maintenance season from March to April. Separately, the resurgence of Covid-19 infections across Asia and Europe, and the declaration of a state of emergency in parts of Japan and Malaysia are also reducing fuel consumption and keeping refinery run rates at low levels.
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