Oil jumps almost 4% as output slow to recover from Texas storms | Reuters

Oil jumps almost 4% as output slow to recover from Texas storms | Reuters

Oil prices rose nearly 4% on Monday, boosted by the expected slow return of U.S. crude output after last week’s deep freeze in Texas shut in production.

U.S. producers shut anywhere from 2 million to 4 million barrels per day of oil output due to cold weather in Texas and other oil producing states, and the unusually cold conditions may have damaged installations that could keep output offline longer than expected.

Brent crude settled at $65.24 a barrel, rising $2.33, or 3.7%, while U.S. oil settled at $61.49 a barrel, jumping $2.25, or 3.8%. The U.S. benchmark crude contract for March delivery expires on Monday, and the more widely-traded April contract was up $2.44, or 4.1%, at 61.70 a barrel.

Shale oil producers in the region could take at least two weeks to fully restart normal output, sources said, as damage assessments and power disruptions slow their recovery.

Socar Trading Head Expects Oil to Hit $80 a Barrel This Year - Bloomberg

Socar Trading Head Expects Oil to Hit $80 a Barrel This Year - Bloomberg

Oil prices will hit $80 a barrel this year as demand comes roaring back and producers won’t be able to immediately respond with sufficient supply, Socar Trading SA said, joining a chorus of bullish calls on the market.

Hayal Ahmadzada, Socar’s chief trading officer, said the glut of excess oil stocks that built up in 2020 in response to the pandemic will be fully drawn down by the summer. At the same time, soaring prices for steel used in pipes, wells and fittings as well as the high cost of capital for producers will crimp a meaningful supply response by an already hobbled industry even as demand returns.

“I will not be surprised if we see $80 a barrel in summer or before year-end and above $100 a barrel in the next 18 to 24 months,” Ahmadzada said in an interview from Baku, Azerbaijan.

The global trading arm of the government-controlled State Oil Company of Azerbaijan Republic, Geneva-based Socar Trading is one of the world’s biggest energy trading houses, handling around 1 million barrels a day of crude and petroleum products, giving it keen insight into global energy supply and demand.

MIDEAST STOCKS- #Qatar index leads most of Gulf lower; Egypt rises | Nasdaq

MIDEAST STOCKS-Qatar index leads most of Gulf lower; Egypt rises | Nasdaq

Major stock markets in the Gulf ended lower on Monday, with Qatar falling the most, while markets in Egypt closed higher.

In Qatar, the index .QSI slid 1.8%, its biggest intraday fall since April, weighed down by a 3.2% drop in petrochemical maker Industries Qatar IQCD.QA.

Saudi Arabia's benchmark index .TASI eased 0.1%, with Samba Financial Group 1090.SE falling 2.3%.

Meanwhile, the kingdom and Russia have differences over a potential deal among OPEC+ oil producers that could ease curbs on supply starting in April, a source told RIA news agency on Monday.

Dubai's main share index .DFMGI dropped 1%, dragged by a 1.3% fall in its largest lender Emirates NBD Bank ENBD.DU and a 1.6% decline in Emaar Properties EMAR.DU.

A second wave of coronavirus infections jolted a tourism boom in Dubai that provided salve to its battered economy.

Daily infections tripled over the past month to hit a record 3,966 on Jan. 28 in the United Arab Emirates, which is now battling its biggest outbreak since the pandemic begun.

In Abu Dhabi, the index .ADI edged up 0.1%, helped by a 0.7% gain in the country's largest lender First Abu Dhabi Bank FAB.AD.

Oil prices rise with storm-hit U.S. output set for slow return | Reuters

Oil prices rise with storm-hit U.S. output set for slow return | Reuters

Oil prices rose on Monday as the slow return of U.S. crude output cut by frigid conditions served as a reminder of the tight supply situation, just as demand recovers from the depths of the COVID-19 pandemic.

Brent crude was up 51 cents, or 0.8%, at $63.42 a barrel by 0945 GMT, after gaining nearly 1% last week. U.S. oil rose 45 cents, or 0.8%, to $59.69 a barrel, having fallen 0.4% last week.

Abnormally cold weather in Texas and the Plains states forced the shutdown of up to 4 million barrels per day (bpd) of crude production along with 21 billion cubic feet of natural gas output, analysts estimated.

Oilfield crews will probably take several days to de-ice valves, restart systems and begin oil and gas output. U.S. Gulf Coast refiners are assessing damage and may take up to three weeks to restore most of their operations, analysts said, though hampered by low water pressure, gas and power losses.

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

#Kuwait Is Said to Plan Drawdown From Sovereign Wealth Fund - Bloomberg

Kuwait Is Said to Plan Drawdown From Sovereign Wealth Fund - Bloomberg

Kuwait’s government has submitted a draft law to parliament requesting permission to withdraw as much as 5 billion dinars ($16.5 billion) a year from the country’s sovereign wealth fund, according to two people familiar with the matter.

The withdrawal request from the Future Generations Fund -- the first since the Gulf War -- is to aid in financing the country’s spiraling deficit, the people said, along with a planned debt law which the government is hoping to push through. The government wants to help fund the deficit through cash and debt, one of the people said, asking not to be named.

The $600 billion Future Generations Fund, managed by the Kuwait Investment Authority, is meant to safeguard the Gulf Arab nation’s wealth for a time after oil. Earlier this month, the government transferred the last of its performing assets to the fund in exchange for cash to plug a monthly budget deficit of $3.3 billion.

#UAE-based Gulf Capital sells 70% stake in Turknet | ZAWYA MENA Edition

UAE-based Gulf Capital sells 70% stake in Turknet | ZAWYA MENA Edition

Abu Dhabi investment firm Gulf Capital on Monday said it has successfully completed the sale of a 70 percent stake in broadband service provider Turknet.

The consortium of buyers includes Celebiler Family and Re-Pie Portfoy Yonetimi A.S, the company said in a statement.

Gulf Capital did not disclose the value of the transaction, but it said the sale generated a significant return for its Credit Opportunities Fund.

The firm currently manages over $2.5 billion in assets across seven funds and investment vehicles.

#Saudi Inflation Still Fueled by VAT Hike, Central Bank Says - Bloomberg

Saudi Inflation Still Fueled by VAT Hike, Central Bank Says - Bloomberg

Saudi inflation is expected to rise during the first quarter compared to the same period the previous year due to the residual effect of an increase in value-added tax but should be little changed on the previous quarter, the kingdom’s central bank said on Monday.

Consumer prices rose an annual 5.6% in the last three months of 2020.

The world’s largest crude exporter tripled VAT to 15% in July as it endured twin economic shocks from the spread of the coronavirus pandemic and oil market turmoil. Officials later said the decision might be reviewed once the crisis is over.

The VAT rise was among a series of measures taken by Saudi Arabia last year to limit the economic damage caused by the decline in crude oil prices.

Inflation is expected to stabilize on an annual basis in the second half of 2021 as the base effects of the VAT increase wear off.

#Qatar's Commercial Bank hires banks for AT1 bonds - document | Reuters

Qatar's Commercial Bank hires banks for AT1 bonds - document | Reuters

Qatar’s Commercial Bank has hired banks for a planned issuance of U.S. dollar-denominated Additional Tier 1 bonds that will be non-callable for five years, a document showed.

Barclays, Credit Suisse, Deutsche Bank, HSBC, JPMorgan and QNB Capital will arrange investor calls starting on Monday, the document from one of the banks show.

An unrated benchmark issuance may follow, subject to market conditions.

Most Gulf markets fall as virus resurgence weighs | Reuters

Most Gulf markets fall as virus resurgence weighs | Reuters

Most major Gulf stock markets fell in early trade on Monday, with the Dubai index leading the losses, as a second wave of coronavirus infections jolted the tourism boom and dented investor appetite.

Dubai, one of the few destinations open to international travellers since July, has yet to impose tough restrictions despite record daily infections in the UAE. Investors are hopeful that the rollout of COVID-19 vaccines will cushion the impact from the pandemic.

In Dubai, the index have retreated 0.7%, on track to extend losses for a fifth consecutive session.

Logistic firm Aramex declined 2.2%, while the Dubai’s largest lender Emirates NBD fell 0.4%.

Saudi Arabia’s benchmark index eased 0.2%, with oil giant Saudi Aramco and National Commercial Bank, the kingdom’s largest lender, losing 0.6% each.

Etihad Etisalat gained 0.5% after reporting a sharp rise in its annual profit.

In Abu Dhabi, the index added 0.2%, supported by a 0.4% rise in the United Arab Emirates’ largest lender First Abu Dhabi Bank.

The Qatari index dipped 0.1%, pulled down by losses in Qatar Islamic Bank.

Oil prices rise as output in storm-hit U.S. begins slow return | Reuters

Oil prices rise as output in storm-hit U.S. begins slow return | Reuters

Oil prices rose on Monday as the slow return of U.S. crude output cut by frigid conditions served as a reminder that the supply situation was tight, just as demand recovers from the depths of the COVID-19 pandemic.

Brent crude was up 55 cents, or 0.9%, at $63.46 a barrel by 0742 GMT, after gaining nearly 1% last week. U.S. oil rose 47 cents, or 0.8%, to $59.71 a barrel, having fallen 0.4% last week.

Prices also received a boost after investment bank Goldman Sachs raised Brent its price forecast by $10, with expectations for it to reach $70 by the second quarter and $75 in the third quarter.

“We now forecast that oil prices will rally sooner and higher, driven by lower expected inventories and higher marginal costs - at least in the short run – to restart upstream activity,” Goldman analysts wrote.