Oil settles up more than 2% as U.S. inventories fall, demand picks up | Reuters
Oil prices settled more than 2% higher on Monday, buoyed by falling U.S. crude inventories and rising winter fuel demand due to one of the worst snowstorms to hit the U.S. Northeast in years.
Brent crude settled up $1.31 cents, or 2.4%, at $56.35 a barrel. U.S. crude gained $1.35 cents, or 2.6%, to settle at $53.55. Both benchmarks gained nearly 8% in January.
U.S. government data last week showed a drawdown of 2.3 million barrels in stocks at the Cushing, Oklahoma, delivery hub for crude futures. Another 2.3 million-barrel weekly decline is expected, analysts and traders said citing a Wood Mackenzie report.
“Crude is being supported by many small factors this week - expected drawdowns in Cushing, a sudden rise in winter fuel demand amid colder weather, and further talks on Capitol Hill about stimulus checks,” said John Kilduff, partner at Again Capital LLC in New York.
The U.S. Northeast has been hit by a powerful winter snow storm, pummeling a vast swath stretching from Pennsylvania through New England and causing widespread disruption in New York City and other major urban centers in the region.
Monday 1 February 2021
OPEC’s Planned Output Increase Tempered by Troubled Producers - Bloomberg
OPEC’s Planned Output Increase Tempered by Troubled Producers - Bloomberg
OPEC boosted crude production as planned last month, but the increase was tempered by disruptions at long-troubled member nations.
The Organization of Petroleum Exporting Countries raised output by 190,000 barrels a day in January, according to a Bloomberg survey. That fits with an agreement between the group and its allies to revive some of the supplies halted during the pandemic.
Yet the monthly change is barely two-thirds of the scheduled amount, as increases by OPEC’s Persian Gulf exporters were offset by disruptions in Nigeria and Libya.
Output from OPEC’s 13 members averaged 25.67 million barrels a day in January, according to the survey. It’s based on ship-tracking data, information from officials, and estimates from consultants including Rystad Energy AS, JBC Energy GmbH, Energy Aspects Ltd. and Petro-Logistics SA.
OPEC boosted crude production as planned last month, but the increase was tempered by disruptions at long-troubled member nations.
The Organization of Petroleum Exporting Countries raised output by 190,000 barrels a day in January, according to a Bloomberg survey. That fits with an agreement between the group and its allies to revive some of the supplies halted during the pandemic.
Yet the monthly change is barely two-thirds of the scheduled amount, as increases by OPEC’s Persian Gulf exporters were offset by disruptions in Nigeria and Libya.
Output from OPEC’s 13 members averaged 25.67 million barrels a day in January, according to the survey. It’s based on ship-tracking data, information from officials, and estimates from consultants including Rystad Energy AS, JBC Energy GmbH, Energy Aspects Ltd. and Petro-Logistics SA.
Clariant chairman to go in compromise deal with SABIC | Reuters
Clariant chairman to go in compromise deal with SABIC | Reuters
Clariant Chairman Hariolf Kottmann, who hailed the arrival of Saudi Arabia’s SABIC as the chemical maker’s top shareholder three years ago, became a casualty on Monday of a deal to try to patch up relations between the two sides.
The Swiss company said Kottmann would not stand for re-election in April.
The 65-year-old has led Clariant for more than a decade, but Saudi Basic Industries Corporation (SABIC) has become increasingly disenchanted with him, particularly after a planned joint venture collapsed in 2019.
In a post-Christmas coup attempt, SABIC, which has a 31.5% stake in Clariant, sought Kottmann’s ouster by proposing a time-limit for board members. It also demanding a 2 Swiss francs per-share special dividend analysts feared would drain the company’s coffers of 670 million francs ($749 million).
Clariant Chairman Hariolf Kottmann, who hailed the arrival of Saudi Arabia’s SABIC as the chemical maker’s top shareholder three years ago, became a casualty on Monday of a deal to try to patch up relations between the two sides.
The Swiss company said Kottmann would not stand for re-election in April.
The 65-year-old has led Clariant for more than a decade, but Saudi Basic Industries Corporation (SABIC) has become increasingly disenchanted with him, particularly after a planned joint venture collapsed in 2019.
In a post-Christmas coup attempt, SABIC, which has a 31.5% stake in Clariant, sought Kottmann’s ouster by proposing a time-limit for board members. It also demanding a 2 Swiss francs per-share special dividend analysts feared would drain the company’s coffers of 670 million francs ($749 million).
#UAE markets lead gains, #SaudiArabia declines | Reuters
UAE markets lead gains, Saudi Arabia declines | Reuters
The markets in the United Arab Emirates (UAE) finished higher on Monday, helped by financial and real estate stocks, while Saudi shares fell for a second straight session.
Dubai’s main share index started the month on a high note, putting on 1.6%, for the benchmark’s first session of gains in three.
Blue-chip developer Emaar Properties was the best performer, jumping 3.5%, while sharia-compliant lender Dubai Islamic Bank added 1.2%.
Dubai’s house prices are expected to fall at a slower pace this year and the next than previously thought, as hopes for a successful vaccine rollout and an economic recovery boost confidence in the sector, a Reuters poll showed.
Abu Dhabi, the other major UAE market, gained 0.7%, breaking a two-session losing run in the process.
The gains in the benchmark were helped primarily by a 0.7% increase in the UAE’s largest lender First Abu Dhabi Bank.
Real estate stock Aldar Properties and telecoms major Etisalat also contributed to the gains, tacking on 3.2% and 0.6%, respectively.
Abu Dhabi Commercial Bank added 0.2% as it reported a better-than-expected 2020 profit of 3.81 billion dirhams ($1.04 billion), compared with analysts’ estimate of 3.46 billion dirhams, according to Refinitiv data.
Saudi Arabia’s benchmark index retreated 0.6%, the benchmark’s fourth fall in the past five sessions, with index heavyweight Al-Rajhi Bank declining 0.4%.
Top oil exporter Saudi Arabia is expected to lower its official selling prices for Asian buyers in March, the first cut in three months, tracking falling benchmark prices and coronavirus-induced demand weakness, a Reuters survey showed on Friday.
Elsewhere, in Qatar, the index ended the session flat.
Qatar Islamic Bank was the best performer in the index, adding 2.4%, while the losses were led by Qatar National Bank, which slipped 2.3%.
The markets in the United Arab Emirates (UAE) finished higher on Monday, helped by financial and real estate stocks, while Saudi shares fell for a second straight session.
Dubai’s main share index started the month on a high note, putting on 1.6%, for the benchmark’s first session of gains in three.
Blue-chip developer Emaar Properties was the best performer, jumping 3.5%, while sharia-compliant lender Dubai Islamic Bank added 1.2%.
Dubai’s house prices are expected to fall at a slower pace this year and the next than previously thought, as hopes for a successful vaccine rollout and an economic recovery boost confidence in the sector, a Reuters poll showed.
Abu Dhabi, the other major UAE market, gained 0.7%, breaking a two-session losing run in the process.
The gains in the benchmark were helped primarily by a 0.7% increase in the UAE’s largest lender First Abu Dhabi Bank.
Real estate stock Aldar Properties and telecoms major Etisalat also contributed to the gains, tacking on 3.2% and 0.6%, respectively.
Abu Dhabi Commercial Bank added 0.2% as it reported a better-than-expected 2020 profit of 3.81 billion dirhams ($1.04 billion), compared with analysts’ estimate of 3.46 billion dirhams, according to Refinitiv data.
Saudi Arabia’s benchmark index retreated 0.6%, the benchmark’s fourth fall in the past five sessions, with index heavyweight Al-Rajhi Bank declining 0.4%.
Top oil exporter Saudi Arabia is expected to lower its official selling prices for Asian buyers in March, the first cut in three months, tracking falling benchmark prices and coronavirus-induced demand weakness, a Reuters survey showed on Friday.
Elsewhere, in Qatar, the index ended the session flat.
Qatar Islamic Bank was the best performer in the index, adding 2.4%, while the losses were led by Qatar National Bank, which slipped 2.3%.
#UAE utilities firm Utico says in talks to IPO on #Dubai bourse | Reuters
UAE utilities firm Utico says in talks to IPO on Dubai bourse | Reuters
United Arab Emirates (UAE) utility firm Utico said on Monday it intends to list on the Dubai Financial Market this year, seeking a valuation of 3 billion dirhams ($817 million).
Dubai, the business and financial hub of the UAE, this week ordered local companies to sell shares in local stock markets before seeking listings in other emirates or abroad.
Utico said it was seeking a primary listing and its advisers were in negotiations for an initial public offering this year. It plans to list 20% to 30% of the company, it said in an emailed statement.
“It is a coincidence that the government’s decree that all private joint stock companies and international private companies which derive greater than 50% of their profits from the UAE be listed in the local securities exchanges,” said Richard Menezes, CEO of Utico.
United Arab Emirates (UAE) utility firm Utico said on Monday it intends to list on the Dubai Financial Market this year, seeking a valuation of 3 billion dirhams ($817 million).
Dubai, the business and financial hub of the UAE, this week ordered local companies to sell shares in local stock markets before seeking listings in other emirates or abroad.
Utico said it was seeking a primary listing and its advisers were in negotiations for an initial public offering this year. It plans to list 20% to 30% of the company, it said in an emailed statement.
“It is a coincidence that the government’s decree that all private joint stock companies and international private companies which derive greater than 50% of their profits from the UAE be listed in the local securities exchanges,” said Richard Menezes, CEO of Utico.
ADCB Sees Creditors Approval for NMC Restructuring in First Half - Bloomberg
ADCB Sees Creditors Approval for NMC Restructuring in First Half - Bloomberg
Abu Dhabi Commercial Bank PJSC, one of the biggest lenders to NMC Health Plc, expects creditors’ approval for a restructuring plan for the collapsed hospital operator in the first half.
The bank recorded 1.66 billion dirhams ($450 million) in provisions and interest in suspense toward NMC, Finablr Plc and associated companies last year, according to a statement. ADCB is “comfortable” with the provisioning levels, “given the positive developments in NMC’s recent financial performance and its ongoing restructuring process,” it said.
Abu Dhabi Commercial Bank PJSC, one of the biggest lenders to NMC Health Plc, expects creditors’ approval for a restructuring plan for the collapsed hospital operator in the first half.
The bank recorded 1.66 billion dirhams ($450 million) in provisions and interest in suspense toward NMC, Finablr Plc and associated companies last year, according to a statement. ADCB is “comfortable” with the provisioning levels, “given the positive developments in NMC’s recent financial performance and its ongoing restructuring process,” it said.
ADCB also said on NMC:
- The sale of non-core assets underway
- Bank has initiated multiple recovery and enforcement actions against key promoters and former shareholders of NMC
- Continues to work closely with administrator Alvarez & Marsal and other key creditors on a restructuring plan
#Saudi Wealth Fund to Set Up Airline Company, Maaal Reports - Bloomberg
Saudi Wealth Fund to Set Up Airline Company, Maaal Reports - Bloomberg
Saudi Arabia’s wealth fund plans to establish an airline company in collaboration with other investment entities, the online Maaal newspaper reported, citing unidentified people.
The company will operate international and domestic flights, according to the report, which didn’t provide further details.
State-owned Saudi Arabian Airlines is the biggest carrier in the kingdom. Others include low-cost carrier Flyadeal, owned by Saudi Arabian Airlines, and Flynas, owned by Prince Alwaleed Bin Talal Al Saud’s Kingdom Holding.
Saudi Arabia’s wealth fund plans to establish an airline company in collaboration with other investment entities, the online Maaal newspaper reported, citing unidentified people.
The company will operate international and domestic flights, according to the report, which didn’t provide further details.
State-owned Saudi Arabian Airlines is the biggest carrier in the kingdom. Others include low-cost carrier Flyadeal, owned by Saudi Arabian Airlines, and Flynas, owned by Prince Alwaleed Bin Talal Al Saud’s Kingdom Holding.
#SaudiArabia's Oil Recovery Fears Look Well Founded - Bloomberg
Saudi Arabia's Oil Recovery Fears Look Well Founded - Bloomberg
It’s starting to look like Saudi Arabia’s concerns over the oil demand recovery were well founded.
At the start of the month, the joint leader of the OPEC+ group of oil-producing countries announced a surprise output cut of 1 million barrels a day for February and March. Its co-chair, Russia, pushing for restraints to be eased, was granted a small output increase in each of those two months.
When Saudi Energy Minister Prince Abdulaziz Bin Salman made the unilateral decision to cut output — keeping the idea from fellow OPEC+ members to prevent leaks — he pinned it on fears that the recovery in oil demand was not as strong as it appeared. That appears to have been wise.
Although cold weather across northern Asia has boosted demand for heating fuels, there are worrying signs that the recovery in transport fuel has not only ground to a halt, but has actually gone into reverse in some key areas.
It’s starting to look like Saudi Arabia’s concerns over the oil demand recovery were well founded.
At the start of the month, the joint leader of the OPEC+ group of oil-producing countries announced a surprise output cut of 1 million barrels a day for February and March. Its co-chair, Russia, pushing for restraints to be eased, was granted a small output increase in each of those two months.
When Saudi Energy Minister Prince Abdulaziz Bin Salman made the unilateral decision to cut output — keeping the idea from fellow OPEC+ members to prevent leaks — he pinned it on fears that the recovery in oil demand was not as strong as it appeared. That appears to have been wise.
Although cold weather across northern Asia has boosted demand for heating fuels, there are worrying signs that the recovery in transport fuel has not only ground to a halt, but has actually gone into reverse in some key areas.
Decree on #UAE stock market listings could be a 'game changer', says Shuaa CEO - Arabianbusiness
Decree on UAE stock market listings could be a 'game changer', says Shuaa CEO - Arabianbusiness
A royal decree to require public joint stock companies established in Dubai to list their stocks on local exchanges could be a "game changer" for the country's capital markets, according to the head of Shuaa Capital.
According to the decree, foreign companies - including those set up in special economic zones or free zones like the Dubai International Financial Centre (DIFC) - should list their stocks in local markets when their annual profit or revenue generated from activities in Dubai make up at least 50 percent of the total, or when their total assets owned in Dubai amount to 50 percent or more of their entire assets.
The listing should be completed within one year of the date of reaching this percentage.
Jassim Alseddiqi, group CEO of Shuaa Capital, welcomed the move, saying: "We are ready to provide listing and underwriting services to corporates seeking to list on our local exchanges. We believe this to be a long-term positive for corporates, which will benefit from the numerous advantages of a public listing - including enhanced reputation and access to capital.
"Furthermore, we believe this has the potential to be a game-changer for the country’s capital markets, setting them firmly on an exciting new growth path."
A royal decree to require public joint stock companies established in Dubai to list their stocks on local exchanges could be a "game changer" for the country's capital markets, according to the head of Shuaa Capital.
According to the decree, foreign companies - including those set up in special economic zones or free zones like the Dubai International Financial Centre (DIFC) - should list their stocks in local markets when their annual profit or revenue generated from activities in Dubai make up at least 50 percent of the total, or when their total assets owned in Dubai amount to 50 percent or more of their entire assets.
The listing should be completed within one year of the date of reaching this percentage.
Jassim Alseddiqi, group CEO of Shuaa Capital, welcomed the move, saying: "We are ready to provide listing and underwriting services to corporates seeking to list on our local exchanges. We believe this to be a long-term positive for corporates, which will benefit from the numerous advantages of a public listing - including enhanced reputation and access to capital.
"Furthermore, we believe this has the potential to be a game-changer for the country’s capital markets, setting them firmly on an exciting new growth path."
BP Sells #Oman Gas Stake to Thailand’s PTTEP for $2.6 Billion - Bloomberg
BP Sells Oman Gas Stake to Thailand’s PTTEP for $2.6 Billion - Bloomberg
BP Plc will sell a stake in an Omani gas block to Thailand’s national energy firm for $2.6 billion, part of a push to divest billions of dollars of assets and focus more on renewable energy.
PTT Exploration and Production Public Co. Ltd. has agreed to pay the sum for 20% of Block 61, according to statements from both companies on Monday.
The sale should help BP deliver on its goal of selling $25 billion of assets by 2025 to ease its debt burden. Like other oil majors, BP must contend with demand for crude gutted by the coronavirus and heightened concerns about the role fossil fuels play in climate change.
In September, BP cut its dividend for the first time in a decade, and its share price plunged to a 25-year low after Chief Executive Officer Bernard Looney announced a shift toward greener energy.
BP Plc will sell a stake in an Omani gas block to Thailand’s national energy firm for $2.6 billion, part of a push to divest billions of dollars of assets and focus more on renewable energy.
PTT Exploration and Production Public Co. Ltd. has agreed to pay the sum for 20% of Block 61, according to statements from both companies on Monday.
The sale should help BP deliver on its goal of selling $25 billion of assets by 2025 to ease its debt burden. Like other oil majors, BP must contend with demand for crude gutted by the coronavirus and heightened concerns about the role fossil fuels play in climate change.
In September, BP cut its dividend for the first time in a decade, and its share price plunged to a 25-year low after Chief Executive Officer Bernard Looney announced a shift toward greener energy.
Tight oil market in first half could push crude to $65, says Goldman | Reuters
Tight oil market in first half could push crude to $65, says Goldman | Reuters
Oil prices could rise to $65 a barrel by July amid a tight oil market and slow rebound in demand, Goldman Sachs said.
The bank said in a note on Sunday data indicated a deficit of 2.3 million barrels per day (bpd) in the fourth quarter of 2020 driven by higher demand and lower supplies from producers outside the OPEC+ group.
It forecast a deficit of 900,000 bpd in the first half of 2021, a higher level than its previous prediction of 500,000 bpd.
This could help push benchmark Brent crude to $65 a barrel by July, with less industry investment in supply skewing risks to the upside in 2022, the bank said. Brent was above $55 on Monday.
“We are moderating the demand rebound to account for a slower start of vaccination and a cautious pace of reopening, leading in particular to a slower recovery in jet demand,” Goldman said.
The bank expected demand to rise by 5.3 million bpd in the six months to July, down from its previous forecast of 6.8 million bpd.
Oil prices could rise to $65 a barrel by July amid a tight oil market and slow rebound in demand, Goldman Sachs said.
The bank said in a note on Sunday data indicated a deficit of 2.3 million barrels per day (bpd) in the fourth quarter of 2020 driven by higher demand and lower supplies from producers outside the OPEC+ group.
It forecast a deficit of 900,000 bpd in the first half of 2021, a higher level than its previous prediction of 500,000 bpd.
This could help push benchmark Brent crude to $65 a barrel by July, with less industry investment in supply skewing risks to the upside in 2022, the bank said. Brent was above $55 on Monday.
“We are moderating the demand rebound to account for a slower start of vaccination and a cautious pace of reopening, leading in particular to a slower recovery in jet demand,” Goldman said.
The bank expected demand to rise by 5.3 million bpd in the six months to July, down from its previous forecast of 6.8 million bpd.
Oil gains despite patchy vaccine rollouts, new coronavirus variants | Reuters
Oil gains despite patchy vaccine rollouts, new coronavirus variants | Reuters
Oil prices rose on Monday after a weak start, adding to the gains of the last three months, although patchy coronavirus vaccine rollouts, new infections and the discovery of new variants are casting a shadow over the demand outlook.
Brent crude futures were up 53 cents, or 1%, at $55.57 a barrel by 0756 GMT, while U.S. West Texas Intermediate (WTI) gained 41 cents, or 0.8%, to $52.61. Both benchmarks gained nearly 8% in January.
Oil prices have been boosted by vaccination programmes getting underway in hard-hit countries and output cuts by major producers like Saudi Arabia. But euphoria over a possible end to the pandemic has been undermined by the slow pace of vaccinations and the rise of new variants of the coronavirus.
Still, with more vaccines proving successful in trials and infections falling in some areas, demand for oil and fuel is likely to pick up as more of the world’s population gets inoculated against COVID-19.
“Our base-case remains for a demand-led rebalancing of the oil market, with the logistical challenges of vaccination likely transient and evidence of still elevated vaccine efficacy,” Goldman Sachs said in a new report, while noting that the rally of recent weeks had paused.
Oil prices rose on Monday after a weak start, adding to the gains of the last three months, although patchy coronavirus vaccine rollouts, new infections and the discovery of new variants are casting a shadow over the demand outlook.
Brent crude futures were up 53 cents, or 1%, at $55.57 a barrel by 0756 GMT, while U.S. West Texas Intermediate (WTI) gained 41 cents, or 0.8%, to $52.61. Both benchmarks gained nearly 8% in January.
Oil prices have been boosted by vaccination programmes getting underway in hard-hit countries and output cuts by major producers like Saudi Arabia. But euphoria over a possible end to the pandemic has been undermined by the slow pace of vaccinations and the rise of new variants of the coronavirus.
Still, with more vaccines proving successful in trials and infections falling in some areas, demand for oil and fuel is likely to pick up as more of the world’s population gets inoculated against COVID-19.
“Our base-case remains for a demand-led rebalancing of the oil market, with the logistical challenges of vaccination likely transient and evidence of still elevated vaccine efficacy,” Goldman Sachs said in a new report, while noting that the rally of recent weeks had paused.
MIDEAST STOCKS- #Dubai leads major Gulf markets higher | Nasdaq
MIDEAST STOCKS-Dubai leads major Gulf markets higher | Nasdaq
Major stock markets in the Gulf rose in early trade on Monday, with indexes in the United Arab Emirates leading the gains on the back of their financial and property shares.
Dubai's main share index .DFMGI advanced 1.9%, with blue-chip developer Emaar Properties EMAR.DU jumping 3.8% and sharia-compliant lender Dubai Islamic Bank DISB.DU rising 2.4%.
Dubai's house prices are expected to fall at a slower pace this year and next than previously thought as hopes for a successful vaccine rollout and an economic recovery boost confidence in the sector, a Reuters poll showed.
The UAE ranks second globally on vaccine rollout per head of population.
In Abu Dhabi, the index .ADI gained 1.1%, led by a 1.2% increase in the UAE's largest lender, First Abu Dhabi Bank FAB.AD.
Elsewhere, Abu Dhabi Commercial Bank ADCB.AD added 0.8%, despite reporting a lower 2020 profit of 3.81 billion dirhams ($1.04 billion), down from 5.24 billion dirhams a year earlier.
However, it beat analysts' mean net profit estimate of 3.46 billion dirhams, according to Refinitiv data.
On Sunday, the UAE recorded 2,948 new COVID-19 infections, down from a peak of 3,966 last week, and reported 12 deaths for the second day in a row.
Saudi Arabia's benchmark index .TASI was up 0.1%, with Banque Saudi Fransi 1050.SE and SABIC Agri-Nutrients Co 2020.SE rising 1.7% and 2.7%, respectively.
Meanwhile, the kingdom's health minister said on Sunday that complacency around coronavirus restrictions had led to a notable increase in daily cases.
In Qatar, the index .QSI edged up 0.1%, supported by a 0.9% gain in Qatar Islamic Bank QISB.QA.
Major stock markets in the Gulf rose in early trade on Monday, with indexes in the United Arab Emirates leading the gains on the back of their financial and property shares.
Dubai's main share index .DFMGI advanced 1.9%, with blue-chip developer Emaar Properties EMAR.DU jumping 3.8% and sharia-compliant lender Dubai Islamic Bank DISB.DU rising 2.4%.
Dubai's house prices are expected to fall at a slower pace this year and next than previously thought as hopes for a successful vaccine rollout and an economic recovery boost confidence in the sector, a Reuters poll showed.
The UAE ranks second globally on vaccine rollout per head of population.
In Abu Dhabi, the index .ADI gained 1.1%, led by a 1.2% increase in the UAE's largest lender, First Abu Dhabi Bank FAB.AD.
Elsewhere, Abu Dhabi Commercial Bank ADCB.AD added 0.8%, despite reporting a lower 2020 profit of 3.81 billion dirhams ($1.04 billion), down from 5.24 billion dirhams a year earlier.
However, it beat analysts' mean net profit estimate of 3.46 billion dirhams, according to Refinitiv data.
On Sunday, the UAE recorded 2,948 new COVID-19 infections, down from a peak of 3,966 last week, and reported 12 deaths for the second day in a row.
Saudi Arabia's benchmark index .TASI was up 0.1%, with Banque Saudi Fransi 1050.SE and SABIC Agri-Nutrients Co 2020.SE rising 1.7% and 2.7%, respectively.
Meanwhile, the kingdom's health minister said on Sunday that complacency around coronavirus restrictions had led to a notable increase in daily cases.
In Qatar, the index .QSI edged up 0.1%, supported by a 0.9% gain in Qatar Islamic Bank QISB.QA.
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