Oil steadies after unexpected build in U.S. crude stockpiles | Reuters
Oil prices steadied on Thursday after industry data showed a surprise increase in U.S. crude inventories that revived pandemic-related fuel demand concerns, while U.S. stimulus hopes buoyed prices.
Brent crude futures rose 2 cents to settle at $56.10 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell 18 cents to settle at $53.13 a barrel.
Both benchmarks rose over the past two days on expectations of massive COVID-19 relief spending under new U.S. President Joe Biden.
Late Wednesday, industry data showed U.S. crude oil inventories rose 2.6 million barrels last week, compared with analysts’ forecasts in a Reuters poll for a 1.2 million-barrel draw.
Thursday, 21 January 2021
How Much Does Aramco Pollute? Missing Emissions Might Double Carbon Footprint - Bloomberg
How Much Does Aramco Pollute? Missing Emissions Might Double Carbon Footprint - Bloomberg
Before it launched the world’s biggest public listing, Saudi Arabian Oil Co. promised potential investors a small piece of a trillion-dollar company with access to unrivaled oil reserves. Not just in sheer volume but in climate friendliness, too.
Aramco executives emphasized in the run-up to an IPO in 2019 that drilling Saudi oil generates fewer planet-warming emissions than other producers. “Not because our crude is cleaner than other crudes globally. It’s because of our standards,” Chief Executive Officer Amin Nasser said at a roadshow, pledging to do even more to deliver lower-carbon oil. “Even though our numbers are great, climate change is critical for the world.”
But Aramco’s accounting for the greenhouse gas fails to provide a complete picture. The Saudi oil giant excludes emissions generated from many of its refineries and petrochemical plants in its overall carbon disclosures, according to a review of public filings by Bloomberg Green. Including all such facilities might nearly double Aramco’s self-reported carbon footprint, adding as much as 55 million metric tons of carbon dioxide equivalent to its annual tally—or about the emissions produced by Portugal.
Such missing data is a red flag for investors, who “need to be able to put a price on the climate risks that they are running in their portfolios,” said Nick Stansbury, head of commodity research at Legal and General Investment Management, which owns Aramco shares as of the end of 2020. “Those disclosures need to be comprehensive, true and accurate.”
Before it launched the world’s biggest public listing, Saudi Arabian Oil Co. promised potential investors a small piece of a trillion-dollar company with access to unrivaled oil reserves. Not just in sheer volume but in climate friendliness, too.
Aramco executives emphasized in the run-up to an IPO in 2019 that drilling Saudi oil generates fewer planet-warming emissions than other producers. “Not because our crude is cleaner than other crudes globally. It’s because of our standards,” Chief Executive Officer Amin Nasser said at a roadshow, pledging to do even more to deliver lower-carbon oil. “Even though our numbers are great, climate change is critical for the world.”
But Aramco’s accounting for the greenhouse gas fails to provide a complete picture. The Saudi oil giant excludes emissions generated from many of its refineries and petrochemical plants in its overall carbon disclosures, according to a review of public filings by Bloomberg Green. Including all such facilities might nearly double Aramco’s self-reported carbon footprint, adding as much as 55 million metric tons of carbon dioxide equivalent to its annual tally—or about the emissions produced by Portugal.
Such missing data is a red flag for investors, who “need to be able to put a price on the climate risks that they are running in their portfolios,” said Nick Stansbury, head of commodity research at Legal and General Investment Management, which owns Aramco shares as of the end of 2020. “Those disclosures need to be comprehensive, true and accurate.”
#Oman Picks State Street Saudi Chairwoman to Head Oil Company - Bloomberg
Oman Picks State Street Saudi Chairwoman to Head Oil Company - Bloomberg
Oman’s government named Haifa Al Khaifi as head of a new company that controls the country’s biggest oil block, a rare appointment for a woman in a male-dominated sector in the Middle East.
Al Khaifi will be chief executive officer of Energy Development Oman, which ultimately owns the sultanate’s 60% stake in Block 6, a huge field capable of producing around 650,000 barrels of crude each day.
She joins from Petroleum Development Oman LLC, the Persian Gulf nation’s state-run oil and gas exploration and production firm, where she was chief financial officer. Al Khaifi is also chairwoman of the Saudi Arabian unit of State Street Corp., the Boston-based custodian and money manager.
Bloomberg reported in November that Oman, which is struggling to finance a budget deficit that soared last year, may issue around $3 billion of bonds off the back of Block 6. JPMorgan Chase & Co. is advising the government on the plan, according to a person familiar with the matter.
Oman’s government named Haifa Al Khaifi as head of a new company that controls the country’s biggest oil block, a rare appointment for a woman in a male-dominated sector in the Middle East.
Al Khaifi will be chief executive officer of Energy Development Oman, which ultimately owns the sultanate’s 60% stake in Block 6, a huge field capable of producing around 650,000 barrels of crude each day.
She joins from Petroleum Development Oman LLC, the Persian Gulf nation’s state-run oil and gas exploration and production firm, where she was chief financial officer. Al Khaifi is also chairwoman of the Saudi Arabian unit of State Street Corp., the Boston-based custodian and money manager.
Bloomberg reported in November that Oman, which is struggling to finance a budget deficit that soared last year, may issue around $3 billion of bonds off the back of Block 6. JPMorgan Chase & Co. is advising the government on the plan, according to a person familiar with the matter.
#UAE's First #AbuDhabi Bank signs deal to acquire 100% of Bank Audi Egypt's share capital | ZAWYA MENA Edition
UAE's First Abu Dhabi Bank signs deal to acquire 100% of Bank Audi Egypt's share capital | ZAWYA MENA Edition
Bank Audi sal (Bank Audi) has signed a definitive agreement with First Abu Dhabi Bank (FAB) for the acquisition by FAB of 100 percent of the share capital of its Egyptian subsidiary, Bank Audi sae.
The transaction, expected to be completed within the next few months, is subject to regulatory approvals, the banks said in a joint statement Wednesday.
The statement didn’t disclose the value of the transaction.
This agreement follows the completion of an in-depth due diligence exercise conducted by FAB on Bank Audi sae (Egypt) after obtaining the preliminary approval of the Central Bank of Egypt.
Post-acquisition, FAB Egypt to be one of the largest foreign banks in Egypt by total assets with pro-forma total assets of more than 120 billion Egyptian pounds ($8.1 billion).
Bank Audi sal (Bank Audi) has signed a definitive agreement with First Abu Dhabi Bank (FAB) for the acquisition by FAB of 100 percent of the share capital of its Egyptian subsidiary, Bank Audi sae.
The transaction, expected to be completed within the next few months, is subject to regulatory approvals, the banks said in a joint statement Wednesday.
The statement didn’t disclose the value of the transaction.
This agreement follows the completion of an in-depth due diligence exercise conducted by FAB on Bank Audi sae (Egypt) after obtaining the preliminary approval of the Central Bank of Egypt.
Post-acquisition, FAB Egypt to be one of the largest foreign banks in Egypt by total assets with pro-forma total assets of more than 120 billion Egyptian pounds ($8.1 billion).
New Restructuring Era in Debt-Laden Gulf Sets Off Hiring Spree - Bloomberg
New Restructuring Era in Debt-Laden Gulf Sets Off Hiring Spree - Bloomberg
The world’s biggest restructuring firms are boosting their presence in the Gulf region, anticipating a spate of turnaround work as companies succumb to the coronavirus pandemic after years of economic pain.
New York-based Alvarez & Marsal Inc., which worked on the Lehman Brothers Holdings Inc. bankruptcy, has already added three seasoned professionals to its Middle East team this year. The hires are part of an effort to expand to about 150 in the region over the next three to five years from just 10 in 2015, according to A&M’s head for the Middle East, Saeeda Jaffar.
Other specialist firms have also beefed up their presence in the region.
AlixPartners LLP boosted its headcount late last year. Duff & Phelps LLC, which last year hired former Deloitte LLP partner Richard Clarke to head its Middle East and Africa restructuring practice, added two more specialists to its team in January and has half a dozen more joining in the next three months.
FTI Consulting Inc. recruited a new head for corporate finance and restructuring in the Middle East from KPMG LLP, who advised lenders on Dubai World’s $25 billion debt revamp.
“Every business in the region needs to look at both their operating model and financing model as the world has changed for us all in the past 12 months,” said Clarke at Duff & Phelps. “So the opportunity for restructuring and transformation professionals is extremely strong.”
The world’s biggest restructuring firms are boosting their presence in the Gulf region, anticipating a spate of turnaround work as companies succumb to the coronavirus pandemic after years of economic pain.
New York-based Alvarez & Marsal Inc., which worked on the Lehman Brothers Holdings Inc. bankruptcy, has already added three seasoned professionals to its Middle East team this year. The hires are part of an effort to expand to about 150 in the region over the next three to five years from just 10 in 2015, according to A&M’s head for the Middle East, Saeeda Jaffar.
Other specialist firms have also beefed up their presence in the region.
AlixPartners LLP boosted its headcount late last year. Duff & Phelps LLC, which last year hired former Deloitte LLP partner Richard Clarke to head its Middle East and Africa restructuring practice, added two more specialists to its team in January and has half a dozen more joining in the next three months.
FTI Consulting Inc. recruited a new head for corporate finance and restructuring in the Middle East from KPMG LLP, who advised lenders on Dubai World’s $25 billion debt revamp.
“Every business in the region needs to look at both their operating model and financing model as the world has changed for us all in the past 12 months,” said Clarke at Duff & Phelps. “So the opportunity for restructuring and transformation professionals is extremely strong.”
#UAE and #Qatar to Resume Cross-Border Flights as Ties Normalize - Bloomberg
UAE and Qatar to Resume Cross-Border Flights as Ties Normalize - Bloomberg
The United Arab Emirates and Qatar plan to restart cross-border flights next week for the first time in more than three years, following the end of a diplomatic rift that had divided the region.
Flydubai will operate a twice daily service to Doha from Jan. 26, while Etihad Airways plans to restart flights on Feb. 15. Qatar Airways plans a twice daily service to Dubai on Jan. 27 and a daily flight to Abu Dhabi from Jan. 28.
Sharjah-basedAir Arabia PJSC earlier this month became the first airline from the UAE to resume flights to Doha, after Saudi Arabia, the UAE, Bahrain and Egypt agreed to fully restore ties with Qatar.
The United Arab Emirates and Qatar plan to restart cross-border flights next week for the first time in more than three years, following the end of a diplomatic rift that had divided the region.
Flydubai will operate a twice daily service to Doha from Jan. 26, while Etihad Airways plans to restart flights on Feb. 15. Qatar Airways plans a twice daily service to Dubai on Jan. 27 and a daily flight to Abu Dhabi from Jan. 28.
Sharjah-basedAir Arabia PJSC earlier this month became the first airline from the UAE to resume flights to Doha, after Saudi Arabia, the UAE, Bahrain and Egypt agreed to fully restore ties with Qatar.
#UAE telecom giants Etisalat, Du increase foreign ownership limit to 49% | ZAWYA MENA Edition
UAE telecom giants Etisalat, Du increase foreign ownership limit to 49% | ZAWYA MENA Edition
UAE's telecom giants Etisalat and Du have raised foreign ownership caps to 49 percent in a move to attract external investors.
"Etisalat Group’s Board of Directors discussed increasing the ownership limit of the Non-UAE Nationals in the Company and resolved to increase such limit from 20% to 49% of its capital," the company notified the Abu Dhabi Securities Exchange, where its shares are traded.
The decision is subject to approval from the company’s general assembly and regulatory authorities.
Etisalat shares jumped roughly 15 percent on Wednesday - its best day in nearly six years - as the company called a board meeting to discuss increasing the foreign ownership limit in the firm.
In a statement to the Dubai Financial Market, Du said that "non-UAE nationals (whether individual or legal entities) are entitled to own shares up to 49 percent of the company's capital".
UAE's telecom giants Etisalat and Du have raised foreign ownership caps to 49 percent in a move to attract external investors.
"Etisalat Group’s Board of Directors discussed increasing the ownership limit of the Non-UAE Nationals in the Company and resolved to increase such limit from 20% to 49% of its capital," the company notified the Abu Dhabi Securities Exchange, where its shares are traded.
The decision is subject to approval from the company’s general assembly and regulatory authorities.
Etisalat shares jumped roughly 15 percent on Wednesday - its best day in nearly six years - as the company called a board meeting to discuss increasing the foreign ownership limit in the firm.
In a statement to the Dubai Financial Market, Du said that "non-UAE nationals (whether individual or legal entities) are entitled to own shares up to 49 percent of the company's capital".
Oil dips after surprise rise in U.S. crude stocks; focus on Biden, stimulus | Reuters
Oil dips after surprise rise in U.S. crude stocks; focus on Biden, stimulus | Reuters
Oil slipped on Thursday after industry data showed a surprise build in U.S. crude inventories that reignited pandemic-led demand concerns, but stimulus hopes in the United States capped the downturn in prices.
U.S. West Texas Intermediate (WTI) crude futures dipped 19 cents, or 0.4%, to $53.12 a barrel at 0725 GMT, following two days of gains on expectations of massive COVID-19 relief spending under new U.S. President Joe Biden.
Brent crude futures were down 16 cents, or 0.3%, to $55.92 a barrel.
U.S. crude oil inventories rose 2.6 million barrels in the week to Jan. 15, according to data from the American Petroleum Institute, an industry group, compared with analysts’ forecasts in a Reuters poll for a fall of 1.2 million barrels.
Oil slipped on Thursday after industry data showed a surprise build in U.S. crude inventories that reignited pandemic-led demand concerns, but stimulus hopes in the United States capped the downturn in prices.
U.S. West Texas Intermediate (WTI) crude futures dipped 19 cents, or 0.4%, to $53.12 a barrel at 0725 GMT, following two days of gains on expectations of massive COVID-19 relief spending under new U.S. President Joe Biden.
Brent crude futures were down 16 cents, or 0.3%, to $55.92 a barrel.
U.S. crude oil inventories rose 2.6 million barrels in the week to Jan. 15, according to data from the American Petroleum Institute, an industry group, compared with analysts’ forecasts in a Reuters poll for a fall of 1.2 million barrels.
MIDEAST STOCKS-Most Gulf stocks ease in early trade; #Saudi rises | Nasdaq
MIDEAST STOCKS-Most Gulf stocks ease in early trade; Saudi rises | Nasdaq
Most major stock markets in the Gulf were subdued in early trade on Thursday, with Dubai on track to end three sessions of gains, although Saudi Arabia bucked the trend to move higher.
The benchmark index .TASI in Saudi Arabia added 0.3%, with Saudi Telecom 7010.SE gaining 0.7% while Riyad Bank 1010.SE traded 0.9% up.
Elsewhere, oil behemoth Saudi Aramco 2222.SE was up 0.3%.
Saudi Arabia, the world's biggest oil exporter, beat Russia to keep its ranking as China's top crude supplier in 2020, Chinese government data showed on Wednesday.
Oil demand in China, the world's top oil importer, remained strong last year even as the coronavirus crisis hammered global appetite. Chinese imports rose 7.3% to a record of 542.4 million tonnes or 10.85 million barrels per day (bpd).
In Dubai, the main share index .DFMGI retreated 1.2%, as most stocks on the index were in negative territory including Emirates NBD Bank ENBD.DU, which declined 1.7%.
In the previous session, Emirates NBD advanced over 4% after it reported a 20% increase in the number and value of fund transfers via its DirectRemit platform in 2020.
The Abu Dhabi index .ADI fell 0.9%, hit by a 3.1% fall in Emirates Telecommunications ETISALAT.AD. Financial stocks also drove the losses including the country's largest lender First Abu Dhabi Bank FAB.AD, which was down 0.5%.
The index's losses, however, were capped by gains at aquaculture firm International Holding IHC.AD, which jumped over 5%, after it reported a sharp rise in 2020 profit.
In Qatar, the index .QSI eased 0.3%, with Qatar Fuel Co QFLS.QA losing 1.6%.
Most major stock markets in the Gulf were subdued in early trade on Thursday, with Dubai on track to end three sessions of gains, although Saudi Arabia bucked the trend to move higher.
The benchmark index .TASI in Saudi Arabia added 0.3%, with Saudi Telecom 7010.SE gaining 0.7% while Riyad Bank 1010.SE traded 0.9% up.
Elsewhere, oil behemoth Saudi Aramco 2222.SE was up 0.3%.
Saudi Arabia, the world's biggest oil exporter, beat Russia to keep its ranking as China's top crude supplier in 2020, Chinese government data showed on Wednesday.
Oil demand in China, the world's top oil importer, remained strong last year even as the coronavirus crisis hammered global appetite. Chinese imports rose 7.3% to a record of 542.4 million tonnes or 10.85 million barrels per day (bpd).
In Dubai, the main share index .DFMGI retreated 1.2%, as most stocks on the index were in negative territory including Emirates NBD Bank ENBD.DU, which declined 1.7%.
In the previous session, Emirates NBD advanced over 4% after it reported a 20% increase in the number and value of fund transfers via its DirectRemit platform in 2020.
The Abu Dhabi index .ADI fell 0.9%, hit by a 3.1% fall in Emirates Telecommunications ETISALAT.AD. Financial stocks also drove the losses including the country's largest lender First Abu Dhabi Bank FAB.AD, which was down 0.5%.
The index's losses, however, were capped by gains at aquaculture firm International Holding IHC.AD, which jumped over 5%, after it reported a sharp rise in 2020 profit.
In Qatar, the index .QSI eased 0.3%, with Qatar Fuel Co QFLS.QA losing 1.6%.