Oil rises 1% on U.S. stimulus hopes, supply concerns | Reuters
Oil prices rose about 1% on Monday as optimism around U.S. stimulus plans and some supply concerns boosted futures, but demand worries prompted by coronavirus lockdowns limited gains.
Brent crude futures rose 47 cents, 0.9%, to settle at $55.88 a barrel. U.S. West Texas Intermediate crude ended 50 cents, or 1%, higher at $52.77 a barrel.
Officials in U.S. President Joe Biden’s administration on a Sunday call with Republican and Democratic lawmakers tried to head off Republican concerns that his $1.9 trillion pandemic relief proposal was too expensive.
“Newly inaugurated President Biden seems to be pushing for a quick approval of his proposed $1.9 trillion pandemic relief package, a development interpreted by the market as a clear indication that the new U.S. administration aims to kick-start an economic recovery, which will naturally benefit fuel consumption,” said Bjornar Tonhaugen, Rystad Energy’s head of oil markets.
Monday 25 January 2021
#UAE Cabinet Approves Plan to Help Start Dirham Bond Market - Bloomberg
UAE Cabinet Approves Plan to Help Start Dirham Bond Market - Bloomberg
Sharif Eid, Franklin Templeton, Portfolio Manager discusses the development of local bond markets. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
BofA’s Middle East Equities Head to Depart After Two Decades - Bloomberg
BofA’s Middle East Equities Head to Depart After Two Decades - Bloomberg
Talal Ghandour, one of Bank of America Corp.’s longest-serving senior executives in the Middle East, is leaving the U.S. firm after 22 years.
Ghandour, who was a Dubai-based managing director, plans to join his family business, according to an internal memo seen by Bloomberg News. He most recently led the bank’s equities unit in the Middle East and North Africa, where he helped build one of the biggest regional franchises of any Wall Street firm.
Bank of America has appointed Ali Hobballah to assume overall responsibility for the MENA equities business after the departure, according to the memo. He will also continue to head trading and risk. Deepak Abraham will oversee equity distribution in the region, while Samer Sbeih will lead the MENA cash equity sales effort, reporting to Abraham, the memo shows.
A representative for Bank of America confirmed the contents of the memo.
Bank of America has made some changes to its leadership team in recent months as it seeks to further expand in the oil-rich region. It appointed Andree Chakhtoura to head investment banking in the Middle East and North Africa, Bloomberg News reported in March. Wadih Boueiz, the bank’s global head of sovereign wealth funds and pension investors, also left last year.
Talal Ghandour, one of Bank of America Corp.’s longest-serving senior executives in the Middle East, is leaving the U.S. firm after 22 years.
Ghandour, who was a Dubai-based managing director, plans to join his family business, according to an internal memo seen by Bloomberg News. He most recently led the bank’s equities unit in the Middle East and North Africa, where he helped build one of the biggest regional franchises of any Wall Street firm.
Bank of America has appointed Ali Hobballah to assume overall responsibility for the MENA equities business after the departure, according to the memo. He will also continue to head trading and risk. Deepak Abraham will oversee equity distribution in the region, while Samer Sbeih will lead the MENA cash equity sales effort, reporting to Abraham, the memo shows.
A representative for Bank of America confirmed the contents of the memo.
Bank of America has made some changes to its leadership team in recent months as it seeks to further expand in the oil-rich region. It appointed Andree Chakhtoura to head investment banking in the Middle East and North Africa, Bloomberg News reported in March. Wadih Boueiz, the bank’s global head of sovereign wealth funds and pension investors, also left last year.
Oil prices steady as lockdowns curb U.S. stimulus optimism | Reuters
Oil prices steady as lockdowns curb U.S. stimulus optimism | Reuters
Oil prices were steady on Monday as support from U.S. stimulus plans and jitters about supplies competed with worries about the impact on demand from renewed coronavirus lockdowns.
Brent crude futures for March were up 13 cents, or 0.2%, to $55.54 a barrel by 1515 GMT. U.S. West Texas Intermediate crude for March was up 10 cents, or 0.2%, at $52.37.
“Sentiment was buoyed by expectations for a blockbuster coronavirus relief package ... (but) the tug of war between stimulus optimism and virus woes is set to continue,” said Stephen Brennock of broker PVM.
U.S. lawmakers are set to lock horns over the size of a $1.9 trillion pandemic relief package proposed by President Joe Biden. The stimulus would support the economy and fuel demand.
Oil prices were steady on Monday as support from U.S. stimulus plans and jitters about supplies competed with worries about the impact on demand from renewed coronavirus lockdowns.
Brent crude futures for March were up 13 cents, or 0.2%, to $55.54 a barrel by 1515 GMT. U.S. West Texas Intermediate crude for March was up 10 cents, or 0.2%, at $52.37.
“Sentiment was buoyed by expectations for a blockbuster coronavirus relief package ... (but) the tug of war between stimulus optimism and virus woes is set to continue,” said Stephen Brennock of broker PVM.
U.S. lawmakers are set to lock horns over the size of a $1.9 trillion pandemic relief package proposed by President Joe Biden. The stimulus would support the economy and fuel demand.
#Kuwait draft budget foresees narrower deficit for fiscal 2021/22 -statement | Reuters
Kuwait draft budget foresees narrower deficit for fiscal 2021/22 -statement | Reuters
Kuwait’s finance ministry has proposed a draft 23.05 billion dinar ($76.2 billion) budget for the fiscal year starting on April 1, it said in a statement on Monday.
The budget forecasts government revenues of 10.9 billion dinars in fiscal 2021/2022, meaning it expects a fiscal deficit of 12.1 billion dinars - 13.8% narrower than the deficit budgeted for the fiscal year ending on March 31.
($1 = 0.3024 Kuwaiti dinars)
Kuwait’s finance ministry has proposed a draft 23.05 billion dinar ($76.2 billion) budget for the fiscal year starting on April 1, it said in a statement on Monday.
The budget forecasts government revenues of 10.9 billion dinars in fiscal 2021/2022, meaning it expects a fiscal deficit of 12.1 billion dinars - 13.8% narrower than the deficit budgeted for the fiscal year ending on March 31.
($1 = 0.3024 Kuwaiti dinars)
New #Saudi central bank chief may face monetary strains in investment push | Reuters
New Saudi central bank chief may face monetary strains in investment push | Reuters
The new governor of the Saudi Central Bank faces the delicate task of balancing the need to preserve monetary reserves amid steep fiscal targets with potential support for Crown Prince Mohammed bin Salman’s ambitious investment plans, analysts said.
Fahad al-Mubarak, appointed in a royal decree on Sunday for a second stint in the role, takes the helm as the world’s top oil exporter moves to recover from a sharp economic contraction last year caused by low crude prices and the COVID-19 pandemic.
Saudi Arabia, which posted a fiscal deficit of 12% of GDP last year, plans to nearly balance its budget by 2023 while pushing through economic diversification plans that are largely being supported by its sovereign wealth fund, Public Investment Fund (PIF).
“I think there will be more pressure on the monetary side to help revive economic activity and a greater focus on supporting the Public Investment Fund’s growth objectives, including on the funding side,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
Saudi Arabia, which posted a fiscal deficit of 12% of GDP last year, plans to nearly balance its budget by 2023 while pushing through economic diversification plans that are largely being supported by its sovereign wealth fund, Public Investment Fund (PIF).
“I think there will be more pressure on the monetary side to help revive economic activity and a greater focus on supporting the Public Investment Fund’s growth objectives, including on the funding side,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
MIDEAST STOCKS- Major markets advance, #Dubai leads gains | Nasdaq
MIDEAST STOCKS-Major markets advance, Dubai leads gains | Nasdaq
Most major Gulf markets finished higher on Monday, in line with global shares, as optimism over a $1.9 trillion U.S. stimulus plan outweighed concerns about rising COVID-19 cases and delays in vaccine supplies.
Global equity markets scaled record highs last week on bets vaccines will start to reduce infection rates worldwide, and on hopes for a stronger U.S. economic recovery under President Joe Biden.
Oil prices edged up as supply jitters and U.S. stimulus plans offset fresh concerns about the hit to global fuel demand from renewed lockdowns.
Saudi Arabia's benchmark index .TASI tacked on 0.2%, snapping a four-session losing streak.
Saudi Telecom 7010.SE was the best performer on the benchmark, adding 1.3%, while lender and index heavyweight Al Rajhi Bank 1120.SE gained about 0.3%.
Saudi Arabia's Public Investment Fund plans to double its assets to 4 trillion riyals ($1.07 trillion) by 2025, Prince Mohammed bin Salman said on Sunday, a move that would make it one of the world's biggest sovereign wealth funds.
Elsewhere, the Dubai index .DFMGI firmed 0.3%, its first gain in three sessions, buoyed by a 1.7% rise in top lender Emirates NBD ENBD.DU and a 1.2% gain in construction major DB Investments Co DINV.DU.
Abu Dhabi's benchmark .ADI edged up 0.1%, helped by gains in telecom major Etisalat ETISALAT.AD, which added nearly 1% on the day.
The United Arab Emirates has approved a public debt strategy aimed at developing its market for local currency bonds, the UAE's vice president said on Sunday.
The Qatari benchmark .QSI, however, bucked the trend toshed 0.3% in its third successive fall.
The top decliners included Qatar Commercial Bank COMB.QA and Qatar Gas Transport Co QGTS.QA, which fell 2.2% and 2.3%, respectively.
Most major Gulf markets finished higher on Monday, in line with global shares, as optimism over a $1.9 trillion U.S. stimulus plan outweighed concerns about rising COVID-19 cases and delays in vaccine supplies.
Global equity markets scaled record highs last week on bets vaccines will start to reduce infection rates worldwide, and on hopes for a stronger U.S. economic recovery under President Joe Biden.
Oil prices edged up as supply jitters and U.S. stimulus plans offset fresh concerns about the hit to global fuel demand from renewed lockdowns.
Saudi Arabia's benchmark index .TASI tacked on 0.2%, snapping a four-session losing streak.
Saudi Telecom 7010.SE was the best performer on the benchmark, adding 1.3%, while lender and index heavyweight Al Rajhi Bank 1120.SE gained about 0.3%.
Saudi Arabia's Public Investment Fund plans to double its assets to 4 trillion riyals ($1.07 trillion) by 2025, Prince Mohammed bin Salman said on Sunday, a move that would make it one of the world's biggest sovereign wealth funds.
Elsewhere, the Dubai index .DFMGI firmed 0.3%, its first gain in three sessions, buoyed by a 1.7% rise in top lender Emirates NBD ENBD.DU and a 1.2% gain in construction major DB Investments Co DINV.DU.
Abu Dhabi's benchmark .ADI edged up 0.1%, helped by gains in telecom major Etisalat ETISALAT.AD, which added nearly 1% on the day.
The United Arab Emirates has approved a public debt strategy aimed at developing its market for local currency bonds, the UAE's vice president said on Sunday.
The Qatari benchmark .QSI, however, bucked the trend toshed 0.3% in its third successive fall.
The top decliners included Qatar Commercial Bank COMB.QA and Qatar Gas Transport Co QGTS.QA, which fell 2.2% and 2.3%, respectively.
The #AbuDhabi royal at the nexus of #UAE business and national security | Financial Times
The Abu Dhabi royal at the nexus of UAE business and national security | Financial Times
Days after the United Arab Emirates rocked the Middle East by revealing it would normalise relations with Israel, the first publicly announced meeting took place between officials from the erstwhile foes. It involved two of the countries’ most powerful men, both of whom typically operate in the shadows.
Days after the United Arab Emirates rocked the Middle East by revealing it would normalise relations with Israel, the first publicly announced meeting took place between officials from the erstwhile foes. It involved two of the countries’ most powerful men, both of whom typically operate in the shadows.
On one side was Yossi Cohen, head of Mossad, Israel’s feared overseas spy agency; on the other was Sheikh Tahnoon bin Zayed al-Nahyan, the UAE’s national security adviser. The meeting in August last year in the UAE suggested that intelligence co-operation would be at the core of the new alliance. And it thrust Sheikh Tahnoon — who has emerged as one of the UAE’s most influential figures — into the limelight.
His rise over the past decade epitomises the nexus between power, business and national strategic interest in Gulf states such as the UAE, Saudi Arabia and Qatar, where a younger, tech-savvy and security-minded generation of royals have come to the fore. It also offers a glimpse into the inner workings of Abu Dhabi’s absolute monarchy, where the ruling family and a clique of trusted lieutenants dominate security and key sectors of the economy, blurring the lines between state and private enterprise.
“He oversees everything. He’s the trusted under-the-radar guy,” says Kirsten Fontenrose, former senior director for Gulf Affairs at the National Security Council in the Trump administration. “Part of that is mystique. He’s quiet and he’s always everywhere. He’ll be in the US, and the next thing you know he’s in Tehran, but he won’t have told you.”
#SaudiArabia Removes Central Bank Governor Ahmed Alkholifey - Bloomberg
Saudi Arabia Removes Central Bank Governor Ahmed Alkholifey - Bloomberg
Saudi Arabia has removed its central bank governor, Ahmed Alkholifey, saying it intends to double the size of its sovereign wealth fund by 2025. Bloomberg’s Matthew Martin reports on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Column: Asia LNG price spike may curtail switch to spot pricing | Reuters
Column: Asia LNG price spike may curtail switch to spot pricing | Reuters
The surge to record highs for spot liquefied natural gas (LNG) in Asia may be fading, but the implications of the price spike are likely to be longer lasting.
The weekly assessment for cargoes for March delivery to north Asia was $8.90 per million British thermal units (mmBtu) in the week ended Jan. 22, at the lower end of the range of $8 to $14 estimated in the prior week.
Cargoes for February delivery were last at $29 per mmBtu in the week to Jan. 15, before the assessments rolled over into March.
Earlier, spot LNG rose to a record high of $32.50 per mmBtu, according to price agency S&P Global Platts, which publishes the Japan-Korea-Marker used as a reference point for spot deals in the region.
The surge to record highs for spot liquefied natural gas (LNG) in Asia may be fading, but the implications of the price spike are likely to be longer lasting.
The weekly assessment for cargoes for March delivery to north Asia was $8.90 per million British thermal units (mmBtu) in the week ended Jan. 22, at the lower end of the range of $8 to $14 estimated in the prior week.
Cargoes for February delivery were last at $29 per mmBtu in the week to Jan. 15, before the assessments rolled over into March.
Earlier, spot LNG rose to a record high of $32.50 per mmBtu, according to price agency S&P Global Platts, which publishes the Japan-Korea-Marker used as a reference point for spot deals in the region.
#Saudi exports dropped in November, with oil revenue down 40% - Arabianbusiness
Saudi exports dropped in November, with oil revenue down 40% - Arabianbusiness
Saudi Arabia’s exports fell by more than a quarter in November compared with a year ago, driven by another drop in oil demand.
Total revenue was SAR58.2 billion ($15.5bn), down from SAR80.8bn a year earlier, according to a statement from the General Authority for Statistics. Oil exports fell 39.8 percent during the month.
Non-oil exports rose to about SAR20.6bn from SAR18.4bn in November 2019.
Plastics and rubber products increased 11.6 percent, contributing most to the overall advance in non-oil revenue; while the share of oil exports in total exports decreased to 64.6 percent from 77.3 percent in 2019.
China was the top destination for Saudi exports, followed by India and the United Arab Emirates.
Saudi Arabia’s exports fell by more than a quarter in November compared with a year ago, driven by another drop in oil demand.
Total revenue was SAR58.2 billion ($15.5bn), down from SAR80.8bn a year earlier, according to a statement from the General Authority for Statistics. Oil exports fell 39.8 percent during the month.
Non-oil exports rose to about SAR20.6bn from SAR18.4bn in November 2019.
Plastics and rubber products increased 11.6 percent, contributing most to the overall advance in non-oil revenue; while the share of oil exports in total exports decreased to 64.6 percent from 77.3 percent in 2019.
China was the top destination for Saudi exports, followed by India and the United Arab Emirates.
#Saudi Wealth Fund in Talks with Lucid for Car Factory, FT Says - Bloomberg
Saudi Wealth Fund in Talks with Lucid for Car Factory, FT Says - Bloomberg
Lucid Motors Inc. is in talks with Saudi Arabia’s sovereign wealth fund to build an electric vehicle factory in the kingdom, the Financial Times reported, citing an interview with the fund’s governor, Yasir Al-Rumayyan.
Bloomberg reported earlier this month that Lucid is in talks with the kingdom’s Public Investment Fund to build a factory potentially near the Red Sea city of Jeddah. The company raised more than $1 billion from the PIF in 2018, an investment that was conditional on the firm developing a site in Saudi Arabia, people familiar with the matter said.
The fund is seeking to lure international companies to set up operations in the kingdom, the FT said. It is “already in discussion with a number of companies in the health sector,” Al-Rumayyan told the paper, without giving further details.
The PIF is also in talks with “many” companies in SoftBank’s Saudi-backed Vision Fund. “The next step is to go forward in getting them to the kingdom,” Al-Rumayyan said.
Lucid Motors Inc. is in talks with Saudi Arabia’s sovereign wealth fund to build an electric vehicle factory in the kingdom, the Financial Times reported, citing an interview with the fund’s governor, Yasir Al-Rumayyan.
Bloomberg reported earlier this month that Lucid is in talks with the kingdom’s Public Investment Fund to build a factory potentially near the Red Sea city of Jeddah. The company raised more than $1 billion from the PIF in 2018, an investment that was conditional on the firm developing a site in Saudi Arabia, people familiar with the matter said.
The fund is seeking to lure international companies to set up operations in the kingdom, the FT said. It is “already in discussion with a number of companies in the health sector,” Al-Rumayyan told the paper, without giving further details.
The PIF is also in talks with “many” companies in SoftBank’s Saudi-backed Vision Fund. “The next step is to go forward in getting them to the kingdom,” Al-Rumayyan said.
- The PIF’s international exposure will decline to about 20% of assets under management during the next five years, from nearly 30%.
- Saudi Arabia might consider listing more shares in Saudi Aramco “if the valuation is right,” he said.
- The PIF will need additional government cash injections. This will happen only when the central bank’s reserves are replenished.
Bahrain will likely need further Gulf financial support - Fitch | Reuters
Bahrain will likely need further Gulf financial support - Fitch | Reuters
Bahrain will likely need further financial support from its Gulf neighbours despite reform measures, Fitch Ratings’ lead Bahrain analyst Toby Iles said on Monday.
Iles said Bahrain, a small oil producer, was likely to likely need the support from 2023 onwards and cited Fitch’s oil price assumption.
In 2018, Saudi Arabia, the United Arab Emirates and Kuwait came to Bahrain’s aid with a five-year zero-interest $10.25 billion package to help it avoid a credit crunch.
Bahrain will likely need further financial support from its Gulf neighbours despite reform measures, Fitch Ratings’ lead Bahrain analyst Toby Iles said on Monday.
Iles said Bahrain, a small oil producer, was likely to likely need the support from 2023 onwards and cited Fitch’s oil price assumption.
In 2018, Saudi Arabia, the United Arab Emirates and Kuwait came to Bahrain’s aid with a five-year zero-interest $10.25 billion package to help it avoid a credit crunch.
Oil prices edge up, but impact of lockdowns restrain gains | Reuters
Oil prices edge up, but impact of lockdowns restrain gains | Reuters
Oil prices edged up on Monday as a weaker dollar offset fresh concerns about the hit to global fuel demand from renewed lockdowns to curb the spike in COVID-19 infections.
Brent crude futures for March rose 32 cents, or 0.6%, to $55.73 a barrel by 0729 GMT, while U.S. West Texas Intermediate crude for March was at $52.62 a barrel, up 35 cents, or 0.7%.
“Petroleum markets have been in a tug of war recently: Downward revisions to the global demand outlook from the IEA and renewed fears of Chinese demand deceleration due to new coronavirus strains have kept a lid on oil prices,” Citi analysts said in a note.
“Yet, production outages from Libya and Kazakhstan along with OPEC+ cuts and a weaker U.S. dollar have supported market sentiment.”
Libya’s Waha oil has resumed production after pipeline repairs while output from Kazakhstan’s giant Tengiz field was disrupted by a power outage on Jan. 17.
Oil prices edged up on Monday as a weaker dollar offset fresh concerns about the hit to global fuel demand from renewed lockdowns to curb the spike in COVID-19 infections.
Brent crude futures for March rose 32 cents, or 0.6%, to $55.73 a barrel by 0729 GMT, while U.S. West Texas Intermediate crude for March was at $52.62 a barrel, up 35 cents, or 0.7%.
“Petroleum markets have been in a tug of war recently: Downward revisions to the global demand outlook from the IEA and renewed fears of Chinese demand deceleration due to new coronavirus strains have kept a lid on oil prices,” Citi analysts said in a note.
“Yet, production outages from Libya and Kazakhstan along with OPEC+ cuts and a weaker U.S. dollar have supported market sentiment.”
Libya’s Waha oil has resumed production after pipeline repairs while output from Kazakhstan’s giant Tengiz field was disrupted by a power outage on Jan. 17.
MIDEAST STOCKS- #Dubai leads as big Gulf markets gain on stimulus pledges | Nasdaq
MIDEAST STOCKS-Dubai leads as big Gulf markets gain on stimulus pledges | Nasdaq
Major Gulf stock markets traded higher on Monday, with Dubai's main share index .DFMGI on track to end two sessions of losses with a 0.8% increase, buoyed by a 2.6% rise in Emirates NBD ENBD.DU and a 1.3% lift in Emaar Properties EMAR.DU.
The United Arab Emirates has approved a public debt strategy aimed at developing its market for local currency bonds, the UAE’s vice president said on Sunday.
"The goal is to build a bond market in the local currency ... and stimulate the country's financial and banking sector," UAE Vice President and the ruler of Dubai Sheikh Mohammed bin Rashid al-Maktoum said on Twitter.
Abu Dhabi's stock index .ADI edged up 0.3%, supported by a 1.1% gain in telecoms firm Etisalat ETISALAT.AD, while Saudi Arabia's benchmark index .TASI added 0.3%, with Al Rajhi Bank 1120.SE and petrochemical firm Saudi Basic Industries 2010.SE rising 0.3% and 0.7%, respectively.
Saudi Arabia's Public Investment Fund plans to double its assets to 4 trillion riyals ($1.07 trillion) by 2025, Prince Mohammed bin Salman said on Sunday, a move that would make it one of the world's biggest sovereign wealth funds.
The fund plans to inject at least 150 billion riyals a year into the domestic economy until 2025, he added.
The Qatari index .QSI rose 0.1%, helped by a 0.8% gain in the shares of sharia-compliant lender Masraf Al Rayan MARK.QA
Major Gulf stock markets traded higher on Monday, with Dubai's main share index .DFMGI on track to end two sessions of losses with a 0.8% increase, buoyed by a 2.6% rise in Emirates NBD ENBD.DU and a 1.3% lift in Emaar Properties EMAR.DU.
The United Arab Emirates has approved a public debt strategy aimed at developing its market for local currency bonds, the UAE’s vice president said on Sunday.
"The goal is to build a bond market in the local currency ... and stimulate the country's financial and banking sector," UAE Vice President and the ruler of Dubai Sheikh Mohammed bin Rashid al-Maktoum said on Twitter.
Abu Dhabi's stock index .ADI edged up 0.3%, supported by a 1.1% gain in telecoms firm Etisalat ETISALAT.AD, while Saudi Arabia's benchmark index .TASI added 0.3%, with Al Rajhi Bank 1120.SE and petrochemical firm Saudi Basic Industries 2010.SE rising 0.3% and 0.7%, respectively.
Saudi Arabia's Public Investment Fund plans to double its assets to 4 trillion riyals ($1.07 trillion) by 2025, Prince Mohammed bin Salman said on Sunday, a move that would make it one of the world's biggest sovereign wealth funds.
The fund plans to inject at least 150 billion riyals a year into the domestic economy until 2025, he added.
The Qatari index .QSI rose 0.1%, helped by a 0.8% gain in the shares of sharia-compliant lender Masraf Al Rayan MARK.QA