Oil rises after data shows slump in U.S. output amid Texas freeze | Reuters
Oil prices climbed on Wednesday to fresh 13-month highs after U.S. government data showed a drop in crude output after a deep freeze disrupted production last week.
U.S. crude oil production dropped last week by more than 10%, or 1 million barrels per day, during the rare winter storm in Texas, equaling the largest weekly fall ever, the Energy Information Administration said. Refinery crude inputs dropped to the lowest since September 2008 as the freeze knocked out power to millions. [EIA/S]
“If you’re getting that kind of drop in one week of EIA production, you’re likely to get more after that,” said Phil Flynn, senior analyst at Price Futures in Chicago.
“There is some concern that this will be a long-term permanent production drop.”
Traffic at the Houston ship channel was slowly coming back to normal but terminals were still facing several issues. After nearly a quarter of national refining capacity was idled by the freeze, refineries have also started to come back online this week.
Brent crude futures rose $1.67, or 2.6%, to settle at $67.04 a barrel. The global benchmark hit a session high of $67.30 a barrel, its loftiest since Jan. 8, 2020.
U.S. West Texas Intermediate (WTI) crude futures ended $1.55, or 2.5%, higher at $63.22 a barrel, after touching $63.37, also their highest since Jan. 8, 2020.
The rally continued oil’s steady march to levels not seen since prior to the coronavirus pandemic as vaccine distribution increases and on forecasts for renewed demand.
Wednesday, 24 February 2021
#Saudi Wealth Fund Commits $3 Billion to Build Mountain Resort - Bloomberg
Saudi Wealth Fund Commits $3 Billion to Build Mountain Resort - Bloomberg
Saudi Arabia’s sovereign wealth fund will invest almost $3 billion on a tourism project in a mountainous region near the kingdom’s border with Yemen.
The Public Investment Fund will provide 11 billion riyals to Soudah Development Co., which will build 2,700 hotel rooms and 1,300 homes in an area that includes Al-Soudah, the tallest peak in Saudi Arabia, according to Husameddin AlMadani, Soudah’s chief executive officer.
The kingdom has been largely shut off to foreign tourists for decades, while citizens preferred to go on holiday abroad. That’s changed with the rise of de facto ruler Crown Prince Mohammed Bin Salman, who’s trying to open up the country and diversify the economy from oil.
“Many of us living in Saudi Arabia didn’t know this destination existed,” AlMadani said in an interview. “I lived in Riyadh for thirty years before I knew that I could take an hour flight and see this beautiful place.”
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| Soudah mountains in southern Saudi Arabia Source: Soudah Development Co. |
The Public Investment Fund will provide 11 billion riyals to Soudah Development Co., which will build 2,700 hotel rooms and 1,300 homes in an area that includes Al-Soudah, the tallest peak in Saudi Arabia, according to Husameddin AlMadani, Soudah’s chief executive officer.
The kingdom has been largely shut off to foreign tourists for decades, while citizens preferred to go on holiday abroad. That’s changed with the rise of de facto ruler Crown Prince Mohammed Bin Salman, who’s trying to open up the country and diversify the economy from oil.
“Many of us living in Saudi Arabia didn’t know this destination existed,” AlMadani said in an interview. “I lived in Riyadh for thirty years before I knew that I could take an hour flight and see this beautiful place.”
OPEC+ to weigh modest oil output boost at meeting - sources | Reuters
OPEC+ to weigh modest oil output boost at meeting - sources | Reuters
OPEC+ oil producers will discuss a modest easing of oil supply curbs from April given a recovery in prices, OPEC+ sources said, although some suggest holding steady for now given the risk of new setbacks in the battle against the pandemic.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, cut output by a record 9.7 million bpd last year as demand collapsed due to the pandemic. As of February, it is still withholding 7.125 million bpd, about 7% of world demand.
In January OPEC+ slowed the pace of a planned output increase to match weaker-than-expected demand due to continued coronavirus lockdowns. Saudi Arabia made extra voluntary cuts for February and March.
Three OPEC+ sources said an output increase of 500,000 barrels per day from April looked possible without building up inventories, although updated supply and demand balances that ministers will consider at their March 4 meeting will determine their decision.
OPEC+ oil producers will discuss a modest easing of oil supply curbs from April given a recovery in prices, OPEC+ sources said, although some suggest holding steady for now given the risk of new setbacks in the battle against the pandemic.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, cut output by a record 9.7 million bpd last year as demand collapsed due to the pandemic. As of February, it is still withholding 7.125 million bpd, about 7% of world demand.
In January OPEC+ slowed the pace of a planned output increase to match weaker-than-expected demand due to continued coronavirus lockdowns. Saudi Arabia made extra voluntary cuts for February and March.
Three OPEC+ sources said an output increase of 500,000 barrels per day from April looked possible without building up inventories, although updated supply and demand balances that ministers will consider at their March 4 meeting will determine their decision.
Airline Cash Burn Could Be Double Previous Forecast, IATA Warns - Bloomberg
Airline Cash Burn Could Be Double Previous Forecast, IATA Warns - Bloomberg
Airlines could burn through as much as $95 billion this year as new coronavirus strains lead governments to extend travel restrictions, close to double the industry body’s previous forecast.
Even under a scenario that sees flights restored between developed economies in 2021, carriers may still consume $75 billion, compared with the $48 billion estimated in December, the International Air Transport Association said Wednesday.
Passenger traffic could be limited to as little as one-third of pre-pandemic levels, according to the trade body, which had predicted a 51% recovery toward the end of 2020 as the approval of vaccines stoked hopes for a rapid rebound. That was before new Covid-19 flareups led to fresh lockdowns and tougher curbs.
“We are concerned now that it’s going to take much longer for the industry to stop burning through cash, which obviously raised questions about survivability,” IATA Chief Economist Brian Pearce said in a media briefing. Carriers may require more government funding as a result, he said.
Airlines could burn through as much as $95 billion this year as new coronavirus strains lead governments to extend travel restrictions, close to double the industry body’s previous forecast.
Even under a scenario that sees flights restored between developed economies in 2021, carriers may still consume $75 billion, compared with the $48 billion estimated in December, the International Air Transport Association said Wednesday.
Passenger traffic could be limited to as little as one-third of pre-pandemic levels, according to the trade body, which had predicted a 51% recovery toward the end of 2020 as the approval of vaccines stoked hopes for a rapid rebound. That was before new Covid-19 flareups led to fresh lockdowns and tougher curbs.
“We are concerned now that it’s going to take much longer for the industry to stop burning through cash, which obviously raised questions about survivability,” IATA Chief Economist Brian Pearce said in a media briefing. Carriers may require more government funding as a result, he said.
Pioneer CEO Says U.S. Shale Will No Longer Be Threat to OPEC - Bloomberg
Pioneer CEO Says U.S. Shale Will No Longer Be Threat to OPEC - Bloomberg
Strong demand for crude oil and low growth rates from shale mean OPEC and its allies no longer need to be worried about competition for market share from the U.S., according to Pioneer Natural Resources Co.
“I’m still a strong believer that demand is going to come back strong, both on airlines and also driving around the world once we get herd immunity,” Chief Executive Officer Scott Sheffield said on a conference call today. “I’m confident that we can assume the Iranian barrels into the marketplace over time and then U.S. shale is no longer going to be a threat to OPEC and OPEC+.”
Covid-19 knocked about 2 million barrels a day from America’s overall oil production as demand cratered, and those supplies may not recover completely given the financial stress the industry has endured for the last few years. Investors are demanding lower output growth and more cash returns, even as oil prices rally.
Pioneer will limit production growth to 5% a year over the long term and plans to pay back three-quarters of its free cash flow to shareholders rather than spending on new drilling, Sheffield said.
Strong demand for crude oil and low growth rates from shale mean OPEC and its allies no longer need to be worried about competition for market share from the U.S., according to Pioneer Natural Resources Co.
“I’m still a strong believer that demand is going to come back strong, both on airlines and also driving around the world once we get herd immunity,” Chief Executive Officer Scott Sheffield said on a conference call today. “I’m confident that we can assume the Iranian barrels into the marketplace over time and then U.S. shale is no longer going to be a threat to OPEC and OPEC+.”
Covid-19 knocked about 2 million barrels a day from America’s overall oil production as demand cratered, and those supplies may not recover completely given the financial stress the industry has endured for the last few years. Investors are demanding lower output growth and more cash returns, even as oil prices rally.
Pioneer will limit production growth to 5% a year over the long term and plans to pay back three-quarters of its free cash flow to shareholders rather than spending on new drilling, Sheffield said.
#SaudiArabia gives final price guidance for euro-denominated bonds - document | ZAWYA MENA Edition
Saudi Arabia gives final price guidance for euro-denominated bonds - document | ZAWYA MENA Edition
Saudi Arabia tightened price guidance for a euro-denominated bond deal comprising tranches of three and nine years after receiving over 4.9 billion euros in orders for the debt sale, a document showed on Wednesday.
It gave final price guidance of around 45 bps plus or minus 5 bps over mid-swaps for the three-year and around 75 bps plus or minus 5 bps over mid-swaps for the nine-year notes, the document from one of the banks on the deal showed.
Initial price guidance was around 60 bps over mid-swaps for the three-year portion around 90 bps over mid-swaps for the nine-year bonds.
BNP Paribas , Goldman Sachs , HSBC , Citi , JPMorgan , Standard Chartered and Samba Capital are arranging the deal, which is expected to close later on Wednesday.
It gave final price guidance of around 45 bps plus or minus 5 bps over mid-swaps for the three-year and around 75 bps plus or minus 5 bps over mid-swaps for the nine-year notes, the document from one of the banks on the deal showed.
Initial price guidance was around 60 bps over mid-swaps for the three-year portion around 90 bps over mid-swaps for the nine-year bonds.
BNP Paribas , Goldman Sachs , HSBC , Citi , JPMorgan , Standard Chartered and Samba Capital are arranging the deal, which is expected to close later on Wednesday.
Office launched to spearhead #UAE anti-money laundering efforts | The National
Office launched to spearhead UAE anti-money laundering efforts | The National
National efforts to combat money launderers, entities and individuals suspected of financing terrorists and organised crime are to be led by a new UAE institution, launched officially on Wednesday.
The Executive Office of Anti-Money Laundering and Counter Terrorism Financing, which is affiliated with the Ministry of Foreign Affairs and International Co-operation, will help protect the integrity of the UAE's financial system and "actively pursue those who abuse it for illicit means", said Hamid Al Zaabi, the director general of the Office.
“It’s an important moment for the UAE. The Office will be acting as a national co-ordinator with internal, intergovernmental and international organisations to tackle money laundering and crack down on the financiers of terror,” said Mr Al Zaabi.
The launch of the Office is part of a country-wide series of measures to tackle money laundering in the UAE.
The Office aims at protecting vital financial interests undermined by dirty money, illicit finance and the funding of terrorism.
National efforts to combat money launderers, entities and individuals suspected of financing terrorists and organised crime are to be led by a new UAE institution, launched officially on Wednesday.
The Executive Office of Anti-Money Laundering and Counter Terrorism Financing, which is affiliated with the Ministry of Foreign Affairs and International Co-operation, will help protect the integrity of the UAE's financial system and "actively pursue those who abuse it for illicit means", said Hamid Al Zaabi, the director general of the Office.
“It’s an important moment for the UAE. The Office will be acting as a national co-ordinator with internal, intergovernmental and international organisations to tackle money laundering and crack down on the financiers of terror,” said Mr Al Zaabi.
The launch of the Office is part of a country-wide series of measures to tackle money laundering in the UAE.
The Office aims at protecting vital financial interests undermined by dirty money, illicit finance and the funding of terrorism.
New Finablr Owners in Merger Talks With Bahraini Payments Firm - Bloomberg
New Finablr Owners in Merger Talks With Bahraini Payments Firm - Bloomberg
The UAE-Israeli consortium that acquired UAE Exchange is in merger talks with Bahrain’s BFC Group Holdings to create a Middle Eastern remittances and currency firm with more than 24 million customers in 30 countries.
Prism Group AG and Abu Dhabi’s Royal Strategic Partners teamed up in December to buy the assets of Finablr Plc, the London-listed payments firm that collapsed after disclosing more than a $1 billion in hidden debts.
The merger discussions are at an advanced stage and are expected to be finalized by the second quarter, according to a statement from Prism and Royal Strategic Partners. It is subject to regulatory approvals in India, Bahrain and Kuwait.
“The deal would create the largest remittance services and currency exchange group in the MENA region,” the statement said.
The UAE-Israeli consortium that acquired UAE Exchange is in merger talks with Bahrain’s BFC Group Holdings to create a Middle Eastern remittances and currency firm with more than 24 million customers in 30 countries.
Prism Group AG and Abu Dhabi’s Royal Strategic Partners teamed up in December to buy the assets of Finablr Plc, the London-listed payments firm that collapsed after disclosing more than a $1 billion in hidden debts.
The merger discussions are at an advanced stage and are expected to be finalized by the second quarter, according to a statement from Prism and Royal Strategic Partners. It is subject to regulatory approvals in India, Bahrain and Kuwait.
“The deal would create the largest remittance services and currency exchange group in the MENA region,” the statement said.
NBK's Al Bahar Sees #Kuwait Government Pushing New Projects Soon: Video - Bloomberg video
NBK's Al Bahar Sees Kuwait Government Pushing New Projects Soon: Video - Bloomberg
Shaikha Khaled Al Bahar, NBK, Deputy Group CEO discusses Kuwait's spiraling deficit. She speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
#Saudi imports from #Turkey tumble in December after informal boycott | Reuters
Saudi imports from Turkey tumble in December after informal boycott | Reuters
The value of Saudi Arabia’s imports from Turkey in December dropped to their lowest level in at least a year, Saudi official data showed on Wednesday, on the back of an informal boycott by Saudi businessmen and retailers of Turkish products.
Political tensions spilled over into trade between the two regional powers last year after the kingdom’s biggest supermarket chains said they backed a boycott of Turkish imports that had been proposed by business leaders and Saudi social media influencers.
Turkey and Saudi Arabia have been at loggerheads since the 2011 uprisings across the Arab world when Riyadh accused Ankara of supporting Islamist political groups. Tensions escalated in 2018 over the murder of Saudi journalist Jamal Khashoggi in the kingdom’s Istanbul consulate.
Imports from Turkey amounted to 50.6 million riyals ($13.5 million) in December, down from 182.2 million riyals in November, and from 1.06 billion riyals in December 2019, according to Saudi Arabia’s General Authority for Statistics.
The value of Saudi Arabia’s imports from Turkey in December dropped to their lowest level in at least a year, Saudi official data showed on Wednesday, on the back of an informal boycott by Saudi businessmen and retailers of Turkish products.
Political tensions spilled over into trade between the two regional powers last year after the kingdom’s biggest supermarket chains said they backed a boycott of Turkish imports that had been proposed by business leaders and Saudi social media influencers.
Turkey and Saudi Arabia have been at loggerheads since the 2011 uprisings across the Arab world when Riyadh accused Ankara of supporting Islamist political groups. Tensions escalated in 2018 over the murder of Saudi journalist Jamal Khashoggi in the kingdom’s Istanbul consulate.
Imports from Turkey amounted to 50.6 million riyals ($13.5 million) in December, down from 182.2 million riyals in November, and from 1.06 billion riyals in December 2019, according to Saudi Arabia’s General Authority for Statistics.
#Qatar's Commercial Bank expected to sell $500 million AT1 bonds, sources say | Reuters
Qatar's Commercial Bank expected to sell $500 million AT1 bonds, sources say | Reuters
Qatar’s Commercial Bank indicated it expects to sell on Wednesday $500 million in Additional Tier-1 bonds non-callable for five years, two sources said, citing a bank document on the deal.
It gave initial price guidance of around 4.75% for the bonds, which are expected to launch later on Wednesday, said the sources, who declined to be identified as they are not authorised to speak to media.
Barclays, Credit Suisse, Deutsche Bank, HSBC, JPMorgan and QNB Capital are arranging the deal.
Qatar’s Commercial Bank indicated it expects to sell on Wednesday $500 million in Additional Tier-1 bonds non-callable for five years, two sources said, citing a bank document on the deal.
It gave initial price guidance of around 4.75% for the bonds, which are expected to launch later on Wednesday, said the sources, who declined to be identified as they are not authorised to speak to media.
Barclays, Credit Suisse, Deutsche Bank, HSBC, JPMorgan and QNB Capital are arranging the deal.
#Saudi oil export value falls nearly 30% in December - official data | Reuters
Saudi oil export value falls nearly 30% in December - official data | Reuters
The value of Saudi Arabia’s oil exports in December dropped nearly 30%, or 19.5 billion riyals ($5.2 billion), compared with the year before, official data showed on Wednesday.
The value of non-oil exports fell 7.7% in December to 18.4 billion riyals versus 20 billion riyals in December 2019. Oil’s share of total exports fell to 71.6% in December from 76.7% the year previously.
China remained Saudi Arabia’s main trading partner in December, accounting for 13.5 billion riyals out of its 64.8 billion riyals of total exports. In December 2019, the kingdom’s total exports value was 85.8 billion riyals.
Japan and India were Saudi Arabia’s next biggest export markets, with 7.5 billion and 6.3 billion riyals worth, respectively. The value of China’s imports was 9 billion riyals in December. The United States and United Arab Emirates followed, with 5.2 billion and 3.1 billion riyals, respectively.
The value of Saudi Arabia’s oil exports in December dropped nearly 30%, or 19.5 billion riyals ($5.2 billion), compared with the year before, official data showed on Wednesday.
The value of non-oil exports fell 7.7% in December to 18.4 billion riyals versus 20 billion riyals in December 2019. Oil’s share of total exports fell to 71.6% in December from 76.7% the year previously.
China remained Saudi Arabia’s main trading partner in December, accounting for 13.5 billion riyals out of its 64.8 billion riyals of total exports. In December 2019, the kingdom’s total exports value was 85.8 billion riyals.
Japan and India were Saudi Arabia’s next biggest export markets, with 7.5 billion and 6.3 billion riyals worth, respectively. The value of China’s imports was 9 billion riyals in December. The United States and United Arab Emirates followed, with 5.2 billion and 3.1 billion riyals, respectively.
Luxury Ride-Hailing App Pivots to Middle East as Lockdowns Bite - Bloomberg
Luxury Ride-Hailing App Pivots to Middle East as Lockdowns Bite - Bloomberg
A luxury ride-hailing app operating in Moscow, London and Paris is expanding into the Middle East as a “hedge” against lengthy lockdowns that have shattered the services industry in Europe.
Wheely will apply for an e-hailing license in Dubai in the coming weeks and open an office there as a hub for the Middle East, said founder and Chief Executive Officer Anton Chirkunov. Dubai is a top destination requested by Wheely customers, especially those traveling from Moscow, he said.
“We are now looking at these geographies as a hedge against restrictions,” Chirkunov said in a video interview from London, where Wheely moved its headquarters from Moscow just under two years ago. “We had southern France as the next step in our plan, but we don’t understand what’s going to happen in France in terms of restrictions, so we are looking at the Middle East instead as the next step.”
Wheely started serving wealthy Russians in Moscow in 2012 with its luxury Mercedes-Benz cars driven by chauffeurs wearing a suit and tie. The company says it now attracts a broader clientele beyond Russia’s borders.
A luxury ride-hailing app operating in Moscow, London and Paris is expanding into the Middle East as a “hedge” against lengthy lockdowns that have shattered the services industry in Europe.
Wheely will apply for an e-hailing license in Dubai in the coming weeks and open an office there as a hub for the Middle East, said founder and Chief Executive Officer Anton Chirkunov. Dubai is a top destination requested by Wheely customers, especially those traveling from Moscow, he said.
“We are now looking at these geographies as a hedge against restrictions,” Chirkunov said in a video interview from London, where Wheely moved its headquarters from Moscow just under two years ago. “We had southern France as the next step in our plan, but we don’t understand what’s going to happen in France in terms of restrictions, so we are looking at the Middle East instead as the next step.”
Wheely started serving wealthy Russians in Moscow in 2012 with its luxury Mercedes-Benz cars driven by chauffeurs wearing a suit and tie. The company says it now attracts a broader clientele beyond Russia’s borders.
#UAE aircraft lessor DAE sees rise in loss provisions as customer revenues impacted | ZAWYA MENA Edition
UAE aircraft lessor DAE sees rise in loss provisions as customer revenues impacted | ZAWYA MENA Edition
Loss provisions for financial assets is expected to increase further this year if the coronavirus pandemic lasts longer, major aircraft lessor Dubai Aerospace Enterprise (DAE) said.
The company reported lower lease revenue for last year as the outbreak took a toll on the commercial air travel industry.
It posted a profit of $228 million in 2020 compared to $377.5 million in 2019, and has so far supported more than 30 carriers impacted by the outbreak, with deferral relief packages hitting $180 million as of December 31, 2020.
“Revenues for our customers have been disrupted in significant, unprecedented and unforeseen ways as governmental authorities around the world put in place necessary isolation measures to contain the spread of COVID-19,” DAE said in a statement to Nasdaq.
Headquartered in Dubai, DAE is one of the world’s biggest aircraft lessors, serving aviation companies in more than 60 countries. It acquires and leases commercial aircraft to airlines, as well as trades and manages aircraft on lease for third-party investors.
Loss provisions for financial assets is expected to increase further this year if the coronavirus pandemic lasts longer, major aircraft lessor Dubai Aerospace Enterprise (DAE) said.
The company reported lower lease revenue for last year as the outbreak took a toll on the commercial air travel industry.
It posted a profit of $228 million in 2020 compared to $377.5 million in 2019, and has so far supported more than 30 carriers impacted by the outbreak, with deferral relief packages hitting $180 million as of December 31, 2020.
“Revenues for our customers have been disrupted in significant, unprecedented and unforeseen ways as governmental authorities around the world put in place necessary isolation measures to contain the spread of COVID-19,” DAE said in a statement to Nasdaq.
Headquartered in Dubai, DAE is one of the world’s biggest aircraft lessors, serving aviation companies in more than 60 countries. It acquires and leases commercial aircraft to airlines, as well as trades and manages aircraft on lease for third-party investors.
#Saudi GDP set to rise 2.1% in 2021; second COVID-19 wave could derail economy | ZAWYA MENA Edition
Saudi GDP set to rise 2.1% in 2021; second COVID-19 wave could derail economy | ZAWYA MENA Edition
Saudi Arabian investment bank, Jadwa Investment, expect a broad-based recovery for the kingdom in 2021 with both oil and non-oil sectors contributing to the rebound.
“Our forecast assumes between 15-20 percent of the adult population being vaccinated against COVID-19 by mid-year, and 70 percent by year end. As such, we see a quarter-on-quarter improvement in the Saudi non-oil economy, with this recovery being more vigorous in the second half of 2021, Jadwa said in a new report.
Jadwa, however, cautioned that the range of potential effects of COVID-19 on the economy remained uncertain. The main risk in the outlook comes from a more prolonged and serious outbreak of a second wave of COVID-19, possibly through a variant of the disease, or due to a slower rollout of the vaccine than currently anticipated, it noted.
“In this context, the recovery in the Saudi economy during the year will not be smooth, with the recent suspension of recreational activities illustrating this point. As such, all economic risks in the year ahead are wholly skewed to the downside.”
Provisional full year GDP data for 2020 showed that the economy contracted by 4.1 percent.
Saudi Arabian investment bank, Jadwa Investment, expect a broad-based recovery for the kingdom in 2021 with both oil and non-oil sectors contributing to the rebound.
“Our forecast assumes between 15-20 percent of the adult population being vaccinated against COVID-19 by mid-year, and 70 percent by year end. As such, we see a quarter-on-quarter improvement in the Saudi non-oil economy, with this recovery being more vigorous in the second half of 2021, Jadwa said in a new report.
Jadwa, however, cautioned that the range of potential effects of COVID-19 on the economy remained uncertain. The main risk in the outlook comes from a more prolonged and serious outbreak of a second wave of COVID-19, possibly through a variant of the disease, or due to a slower rollout of the vaccine than currently anticipated, it noted.
“In this context, the recovery in the Saudi economy during the year will not be smooth, with the recent suspension of recreational activities illustrating this point. As such, all economic risks in the year ahead are wholly skewed to the downside.”
Provisional full year GDP data for 2020 showed that the economy contracted by 4.1 percent.
Oil prices slip on surprise build in U.S. crude stocks | Reuters
Oil prices slip on surprise build in U.S. crude stocks | Reuters
Oil prices were lower on Wednesday after industry data showed a surprise build in U.S. crude stocks last week as a deep freeze in the southern states curbed demand from refineries that were forced to shut.
Crude stockpiles rose by 1 million barrels in the week to Feb. 19, the American Petroleum Institute (API) reported on Tuesday, against estimates for a draw of 5.2 million barrels in a Reuters poll.
API data showed refinery crude runs fell by 2.2 million bpd.
Brent crude futures slipped by 6 cents, or 0.1%, to $65.31 a barrel at 0748 GMT, but narrowed losses earlier in the session that sent it to as low as $64.80.
U.S. West Texas Intermediate (WTI) crude futures were down 29 cents or 0.5% at $61.38 a barrel, after trading as low as $60.97 earlier on Wednesday.
Oil prices were lower on Wednesday after industry data showed a surprise build in U.S. crude stocks last week as a deep freeze in the southern states curbed demand from refineries that were forced to shut.
Crude stockpiles rose by 1 million barrels in the week to Feb. 19, the American Petroleum Institute (API) reported on Tuesday, against estimates for a draw of 5.2 million barrels in a Reuters poll.
API data showed refinery crude runs fell by 2.2 million bpd.
Brent crude futures slipped by 6 cents, or 0.1%, to $65.31 a barrel at 0748 GMT, but narrowed losses earlier in the session that sent it to as low as $64.80.
U.S. West Texas Intermediate (WTI) crude futures were down 29 cents or 0.5% at $61.38 a barrel, after trading as low as $60.97 earlier on Wednesday.
MIDEAST STOCKS- #Saudi index leads major Gulf markets lower | Nasdaq
MIDEAST STOCKS-Saudi index leads major Gulf markets lower | Nasdaq
Major stock markets in the Gulf fell in early trade on Wednesday, led by losses in financials, with Saudi index leading the way.
Oil prices, a key catalyst for the Gulf's financial markets, retreated after industry data showed a surprise build in U.S. crude stocks. O/R
Saudi's benchmark index .TASI dropped 0.8%, weighed down by a decline in Al Rajhi Bank 1120.SE and oil giant Saudi Aramco 2222.SE.
However, HSBC said Aramco's prospects look more positive and promising for 2021, hinting at declining net debt and a possible dividend hike.
HSBC expects the oil giant to return to positive organic free cash flow of $5 billion in 2021, with Brent at $56 per barrel.
Meanwhile, U.S. President Joe Biden plans to call Saudi Arabia's King Salman on Wednesday, ahead of the public release of an intelligence report about the murder of journalist Jamal Khashoggi, Axios reported late on Tuesday, citing a source. .
The call, if it happens as scheduled, will be Biden's first conversation as president with the Saudi king, according to Axios.
In Dubai, the index .DFMGI dropped 0.4%, with blue-chip developer Emaar Properties EMAR.DU falling 1.7%, while Union Properties UPRO.DU was down 3%.
The Abu Dhabi index .ADI slipped up 0.2%, driven down by a 0.3% drop in market heavyweight First Abu Dhabi Bank FAB.AD.
The Qatari index .QSI eased 0.1%, on course to extend losses for a sixth-day in a row. Commercial Bank COMB.QA lost 1.2% and Qatar Islamic Bank QISB.QA declined 0.8%.
Major stock markets in the Gulf fell in early trade on Wednesday, led by losses in financials, with Saudi index leading the way.
Oil prices, a key catalyst for the Gulf's financial markets, retreated after industry data showed a surprise build in U.S. crude stocks. O/R
Saudi's benchmark index .TASI dropped 0.8%, weighed down by a decline in Al Rajhi Bank 1120.SE and oil giant Saudi Aramco 2222.SE.
However, HSBC said Aramco's prospects look more positive and promising for 2021, hinting at declining net debt and a possible dividend hike.
HSBC expects the oil giant to return to positive organic free cash flow of $5 billion in 2021, with Brent at $56 per barrel.
Meanwhile, U.S. President Joe Biden plans to call Saudi Arabia's King Salman on Wednesday, ahead of the public release of an intelligence report about the murder of journalist Jamal Khashoggi, Axios reported late on Tuesday, citing a source. .
The call, if it happens as scheduled, will be Biden's first conversation as president with the Saudi king, according to Axios.
In Dubai, the index .DFMGI dropped 0.4%, with blue-chip developer Emaar Properties EMAR.DU falling 1.7%, while Union Properties UPRO.DU was down 3%.
The Abu Dhabi index .ADI slipped up 0.2%, driven down by a 0.3% drop in market heavyweight First Abu Dhabi Bank FAB.AD.
The Qatari index .QSI eased 0.1%, on course to extend losses for a sixth-day in a row. Commercial Bank COMB.QA lost 1.2% and Qatar Islamic Bank QISB.QA declined 0.8%.
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